Document:

exv10w18

 

Exhibit 10.18

Amendment

to the

Temple-Inland Supplemental Executive Retirement Plan

(as amended and restated effective as of August 2, 2002)

Temple-Inland Supplemental Retirement Plan

Temple-Inland Excess Benefits Plan

(as amended and restated effective as of August 2, 2002)

Temple-Inland Supplemental Benefits Plan

(as amended and restated effective as of August 2, 2002)

     WHEREAS, TIN Inc. (the “Company”) maintains the Temple-Inland Supplemental Executive
Retirement Plan (as amended and restated effective as of August 2, 2002) (the “SERP”), the
Temple-Inland Supplemental Retirement Plan (the “SRP”), the Temple-Inland Excess Benefits Plan (as
amended and restated effective as of August 2, 2002) (the “Excess Plan”), and the Temple-Inland
Supplemental Benefits Plan (as amended and restated effective as of August 2, 2002) (the
“Supplemental Plan”) (collectively, the “Plans”); and

     WHEREAS, the Company has determined that it is desirable to merge the Plans into a single
plan;

     NOW THEREFORE, the Plans are hereby amended and supplemented as follows:

     1. Effective as of the date hereof (the “Merger Date”), the Plans are hereby merged into a
single plan named the Temple-Inland Supplemental Executive Retirement Plan (the “Merged Plan”).

     2. As of the Merger Date, the Excess Plan shall be designated as Part A of the Merged Plan,
the Supplemental Plan shall be designated as Part B of the Merged Plan, the SRP shall be
designated as Part C of the Merged Plan, and the SERP shall be designated as Part D of the Merged
Plan.

     3. On and after the Merger Date, benefits payable under Parts A, B, C, and D of the Merged
Plan as of any date shall be paid as a single payment.

     4. The Administrator of the Merged Plan shall be the person(s) or committee(s) heretofore
appointed as the Administrator of the SERP, or such other person(s) or committee(s) as may be
appointed by the Board of Directors or a committee thereof from time to time.

     5. Effective as of the Merger Date, the claims procedure and review procedure set forth in
Article 4 of Part D of the Merged Plan shall apply with respect to all benefits payable under all
Parts of the Merged Plan and corresponding claims and review procedure provisions set forth in
Parts A through C of the Merged Plan shall cease to apply.

 

 

     IN WITNESS WHEREOF, TIN Inc. has caused this Amendment to each of the Plans to be adopted as
of this ___day of November, 2006.

	 	 	 	 	 
	 	TIN INC.

 	 
	 	By:  	 	 
	 	 	Leslie K. O’Neal 	 
	 	 	Vice President and Secretary 	 
	 

	 	 	 	 	 
	 	ATTEST:

 	 
	 	  	 	 	 
	 	 	Grant F. Adamson 	 
	 	 	Assistant Secretary 	 
	 

2exv10w4

 

Exhibit 10.4

Diamond Offshore Management Company

Supplemental Executive Retirement Plan

IMPORTANT NOTE

This document has not been approved by the Department of Labor, Internal Revenue Service or any
other governmental entity. An adopting Employer must determine whether the Plan is subject to the
Federal securities laws and the securities laws of the various states. An adopting Employer may
not rely on this document to ensure any particular tax consequences or to ensure that the Plan is
“unfunded and maintained primarily for the purpose of providing deferred compensation to a select
group of management or highly compensated employees” under Title I of the Employee Retirement
Income Security Act of 1974, as amended, with respect to the Employer’s particular situation.
Fidelity Investments Institutional Operations Company, Inc., its affiliates and employees cannot
provide you with legal advice in connection with the execution of this document. This document
should be reviewed by the Employer’s attorney prior to execution.

October 2006

 

 

TABLE OF CONTENTS

PREAMBLE

	 	 	 
	ARTICLE 1 – GENERAL
	1.1

	 	Plan
	1.2

	 	Effective Dates
	1.3

	 	Grandfathering of Amounts Not Subject to Code Section 409A
	 
	 	 
	ARTICLE 2 – DEFINITIONS
	2.1

	 	Account
	2.2

	 	Administrator
	2.3

	 	Adoption Agreement
	2.4

	 	Beneficiary
	2.5

	 	Board or Board of Directors
	2.6

	 	Bonus
	2.7

	 	Change in Control
	2.8

	 	Code
	2.9

	 	Compensation
	2.10

	 	Director
	2.11

	 	Disabled
	2.12

	 	Eligible Employee
	2.13

	 	Employer
	2.14

	 	ERISA
	2.15

	 	Identification Date
	2.16

	 	Key Employee
	2.17

	 	Participant
	2.18

	 	Plan
	2.19

	 	Plan Sponsor
	2.20

	 	Plan Year
	2.21

	 	Related Employer
	2.22

	 	Retirement
	2.23

	 	Separation from Service
	2.24

	 	Unforeseeable Emergency
	2.25

	 	Valuation Date
	2.26

	 	Years of Service
	 
	 	 
	ARTICLE 3 – PARTICIPATION
	3.1

	 	Participation
	3.2

	 	Termination of Participation

i

 

	 	 	 
	ARTICLE 4 – PARTICIPANT CONTRIBUTIONS
	 
	 	 
	4.1

	 	Deferral Agreement
	4.2

	 	Amount of Deferral
	4.3

	 	Timing of Election to Defer
	4.4

	 	Election of Payment Schedule and Form of Payment
	4.5

	 	2005 Transitional Rules
	4.6

	 	2006 Transitional Rule
	4.7

	 	2007 Transitional Rule
	 
	 	 
	ARTICLE 5 – EMPLOYER CONTRIBUTIONS
	5.1

	 	Matching Contributions
	5.2

	 	Other Contributions
	 
	 	 
	ARTICLE 6 – ACCOUNTS AND CREDITS
	6.1

	 	Establishment of Account
	6.2

	 	Credits to Account
	 
	 	 
	ARTICLE 7 – INVESTMENT OF CONTRIBUTIONS
	7.1

	 	Investment Options
	7.2

	 	Adjustment of Accounts
	 
	 	 
	ARTICLE 8 – RIGHT TO BENEFITS
	8.1

	 	Vesting
	8.2

	 	Death
	8.3

	 	Disability
	 
	 	 
	ARTICLE 9 – DISTRIBUTION OF BENEFITS
	9.1

	 	Amount of Benefits
	9.2

	 	Method and Timing of Distributions
	9.3

	 	Unforeseeable Emergency
	9.4

	 	Termination Before Retirement
	9.5

	 	Cashouts of Amounts Not Exceeding Stated Limit
	9.6

	 	Key Employees
	9.7

	 	Change in Control
	9.8

	 	Permissible Delays in Payment

ii

 

	 	 	 
	ARTICLE 10 – AMENDMENT AND TERMINATION
	10.1

	 	Amendment by Plan Sponsor
	10.2

	 	Plan Termination Following Change in Control or Corporate Dissolution
	10.3

	 	Other Plan Terminations
	 
	 	 
	ARTICLE 11 – THE TRUST
	11.1

	 	Establishment of Trust
	11.2

	 	Grantor Trust
	11.3

	 	Investment of Trust Funds
	 
	 	 
	ARTICLE 12 – PLAN ADMINISTRATION
	12.1

	 	Powers and Responsibilities of the Administrator
	12.2

	 	Claims and Review Procedures
	12.3

	 	Plan Administrative Costs
	 
	 	 
	ARTICLE 13 – MISCELLANEOUS
	13.1

	 	Unsecured General Creditor of the Employer
	13.2

	 	Employer’s Liability
	13.3

	 	Limitation of Rights
	13.4

	 	Anti-Assignment
	13.5

	 	Facility of Payment
	13.6

	 	Notices
	13.7

	 	Tax Withholding
	13.8

	 	Indemnification
	13.9

	 	Permitted Acceleration of Payment
	13.10

	 	Governing Law

iii

 

PREAMBLE

The Plan is intended to be a “plan which is unfunded and is maintained by an employer primarily
for the purpose of providing deferred compensation for a select group of management or highly
compensated employees” within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the
Employee Retirement Income Security Act of 1974, as amended, and is further intended to conform
with the requirements of Internal Revenue Code Section 409A and shall be implemented and
administered in a manner consistent therewith.

 

 

ARTICLE 1 – GENERAL

	1.1	 	Plan. The Plan will be referred to by the name specified in the Adoption
Agreement.
	 
	1.2	 	Effective Dates.

	 	(a)	 	Original Effective Date. The Original Effective Date is the date as
of which the Plan was initially adopted.
	 
	 	(b)	 	Amendment Effective Date. The Amendment Effective Date is the
date specified in the Adoption Agreement as of which the Plan is
amended and restated.
	 
	 	(c)	 	Special Effective Date. A Special Effective Date may apply to any
given provision if so specified in Appendix C of the Adoption
Agreement. A Special Effective Date will control over the Original
Effective Date or Amendment Effective Date, whichever is
applicable, with respect to such provision of the Plan.

	1.3	 	Grandfathering of Amounts Not Subject to Code Section 409A
	 
	 	 	Amounts deferred before January 1, 2005 that are earned and vested on December 31, 2004
will be separately accounted for and administered in accordance with the terms of the
Plan as in effect on December 31, 2004, except as otherwise provided in this Plan
document. A summary of the grandfathered provisions is set forth in Appendix B of the
Adoption Agreement.

1-1

 

ARTICLE 2 – DEFINITIONS

Pronouns used in the Plan are in the masculine gender but include the feminine gender unless the
context clearly indicates otherwise. Wherever used herein, the following terms have the meanings
set forth below, unless a different meaning is clearly required by the context:

	2.1	 	“Account” means an account established for the purpose of recording amounts credited on behalf
of a Participant and any income, expenses, gains, losses or distributions included thereon. The
Account shall be a bookkeeping entry only and shall be utilized solely as a device for the
measurement and determination of the amounts to be paid to a Participant pursuant to the Plan.
	 
	2.2	 	“Administrator” means the person or persons designated by the Plan
Sponsor in Section 1.05 of the Adoption Agreement to be responsible for
the administration of the Plan. If no Administrator is designated in the
Adoption Agreement, the Administrator is the Plan Sponsor.
	 
	2.3	 	“Adoption Agreement” means the agreement adopted by the Plan
Sponsor that establishes the Plan.
	 
	2.4	 	“Beneficiary” means the persons, trusts, estates or other entities
entitled under Section 8.2 to receive benefits under the Plan upon the
death of a Participant.
	 
	2.5	 	“Board” or “Board of Directors” means the Board of Directors of the
Plan Sponsor.
	 
	2.6	 	“Bonus” means an amount of incentive remuneration payable by the
Employer to a Participant.
	 
	2.7	 	“Change in Control” means the occurrence of an event involving the
Plan Sponsor that is described in Section 9.7.
	 
	2.8	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	2.9	 	“Compensation” has the meaning specified in Section 3.01 of the
Adoption Agreement.
	 
	2.10	 	“Director” means a non-employee member of the Board who has been designated by the
Employer as eligible to participate in the Plan.

2-1

 

	2.11	 	“Disabled” means a determination by the Administrator that the Participant is either
(a) unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or (b) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or last for a
continuous period of not less than twelve months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering employees of the
Employer. A Participant will be considered Disabled if he is determined to be totally disabled by
the Social Security Administration.
	 
	2.12	 	“Eligible Employee” means an employee of the Employer who is determined by the Administrator
to be a member of a select group of management or highly
compensated employees within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA and
who satisfies the requirements in Section 2.01 of the Adoption Agreement.
	 
	2.13	 	“Employer” means the Plan Sponsor and any other entity which is authorized by the Plan
Sponsor to participate in and, in fact, does adopt the Plan.
	 
	2.14	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
	 
	2.15	 	“Identification Date” means the date as of which Key Employees are determined which is
specified in Section 1.06 of the Adoption Agreement.
	 
	2.16	 	“Key Employee” means an employee who satisfies the conditions set forth in Section 9.6.
	 
	2.17	 	“Participant” means an Eligible Employee or Director who commences participation in
the Plan in accordance with Article 3.
	 
	2.18	 	“Plan” means the unfunded plan of deferred compensation set forth herein, including the
Adoption Agreement and any trust agreement, as adopted by the Plan Sponsor and as amended from time
to time.
	 
	2.19	 	“Plan Sponsor” means the entity identified in Section 1.03 of the Adoption
Agreement.
	 
	2.20	 	“Plan Year” means the period identified in Section 1.02 of the Adoption Agreement.

2-2

 

	2.21	 	“Related Employer” means the Employer and (a) any corporation that is a member of a
controlled group of corporations as defined in Section 414(b) of the Code that includes the
Employer and (b) any trade or business that is under common control as defined in Section 414(c)
of the Code that includes the Employer.
	 
	2.22	 	“Retirement” has the meaning specified in 6.01(f) of the Adoption Agreement.
	 
	2.23	 	“Separation from Service” means the date that the Participant dies, retires or otherwise
has a termination of employment with respect to all entities comprising the Related Employer. A
Separation from Service does not occur if the Participant is on military leave, sick leave or
other bona fide leave of absence if the period of leave does not exceed six months or such
longer period during which the Participant’s right to re-employment is provided by statute or
contract. If the period of leave exceeds six months and the Participant’s right to re-employment
is not provided either by statute or contract, a Separation from Service will be deemed to have
occurred on the first day
following the six-month period.
	 
	 	 	Whether a termination of employment has occurred is based on the facts and circumstances.
Where an employee continues to provide services to the Related Employer at an annual rate
that is less than twenty percent of the services he rendered, on average, during the
immediately preceding three full calendar years of employment (or, if employed less than
three years, such lesser period) and the annual remuneration he receives for such services
is less than twenty percent of the average annual remuneration he earned during his final
three full calendar years of employment (or, if less, such lesser period), the employee
will be treated as having incurred a Separation from Service. Where an employee continues
to provide services to the Related Employer in a capacity other than as an employee, a
Separation from Service will not be deemed to have occurred if the former employee
provides services at an annual rate that is fifty percent or more of the services he
rendered, on average, during the immediately preceding three full calendar years of
employment (or, if employed less than three years, such lesser period) and the annual
remuneration he receives for such services is fifty percent or more of the annual
remuneration he earned during his final three full calendar years of employment for the
Related Employer. For purposes of the foregoing, the annual rate of providing services is
determined based upon the measurement used to determine the service provider’s base
compensation. An independent contractor is considered to experience a Separation of
Service from the Related Employer upon the expiration of the contract (or contracts) under
which services are performed for the Related Employer if the expiration constitutes a good
faith and complete termination of the contractual relationship. An expiration does not
constitute a good faith and complete termination of the contractual

2-3

 

	 	 	relationship if the Related Employer anticipates a renewal of a contractual
relationship or the independent contractor becoming an employee. The Related Employer will
be considered to anticipate the renewal of the contractual relationship with an
independent contractor if it intends to contract again for the services provided under the
expired contract and neither the Related Employer nor the independent contractor has
eliminated the independent contractor as a possible provider of services under any such
new contract. A Related Employer is considered to intend to contract again for the
services provided under an expired contract if the Related Employer’s doing so is
conditioned only upon incurring a need for the services, the availability of funds, or
both. All determinations of whether a Separation from Service has occurred will be made in
a manner consistent with Code Section 409A.
	 
	2.24	 	“Unforeseeable Emergency” means a severe financial hardship of the Participant
resulting from an illness or accident of the Participant, the Participant’s spouse, or the
Participant’s dependent (as defined in Code Section 152(a)); 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.
	 
	2.25	 	“Valuation Date” means each business day of the Plan Year.
	 
	2.26	 	“Years of Service” means each one year period for which the Participant receives service
credit in accordance with the provisions of Section 7.01(d) of the Adoption Agreement.

2-4

 

ARTICLE 3 – PARTICIPATION

	3.1	 	Participation. The Participants in the Plan shall be those Directors and those
“management” or “highly compensated” employees of the Employer within the meaning of
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA who satisfy the requirements of Section
2.01 of the Adoption Agreement.
	 
	3.2	 	Termination of Participation. The Administrator may terminate a Participant’s
participation in the Plan in a manner consistent with Code Section 409A.

3-1

 

ARTICLE 4 – PARTICIPANT CONTRIBUTIONS

	4.1	 	Deferral Agreement. Each Eligible Employee and Director may elect to defer his
Compensation within the meaning of Section 3.01 of the Adoption Agreement by executing
in writing or electronically, a deferral agreement in accordance with rules and
procedures established by the Administrator and the provisions of this Article 4.
	 
	 	 	A new deferral agreement must be timely executed for each Plan Year during which the
Eligible Employee or Director desires to defer Compensation. An Eligible Employee or
Director who does not timely execute a deferral agreement shall be deemed to have
elected zero deferrals of Compensation for such Plan Year.
	 
	 	 	If an Eligible Employee or Director fails to have an executed deferral agreement in effect
for a Plan Year during which an Employer contribution pursuant to Article 5 is made on his
behalf, the Eligible Employee or Director will be deemed to have elected to receive a lump
sum distribution upon Separation from Service.
	 
	 	 	A deferral agreement may be changed or revoked during the period specified by the
Administrator. Except as provided in Section 9.3 or in Section 4.01(c)
of the Adoption Agreement, a deferral agreement becomes irrevocable at the close of
the specified period.
	 
	4.2	 	Amount of Deferral. An Eligible Employee or Director may elect to defer Compensation in
any amount permitted by Section 4.01(a) of the Adoption Agreement.
	 
	4.3	 	Timing of Election to Defer. Each Eligible Employee or Director who desires to defer
Compensation otherwise payable during a Plan Year must execute a deferral agreement within
the period preceding the Plan Year specified by the Administrator. Each Eligible Employee
who desires to defer Compensation that is a Bonus must execute a deferral agreement within
the period preceding the Plan Year during which the Bonus is earned that is specified by
the Administrator, except that if the Bonus can be treated as performance based
compensation as described in Code Section 409A(a)(4)(B)(iii), the deferral agreement may
be executed within the period specified by the Administrator, which period, in no event,
shall end after the date which is six months prior to the end of the period during which
the Bonus is earned.

4-1

 

	 	 	Except as otherwise provided below, an employee who is classified or designated as an
Eligible Employee during a Plan Year or a Director who is designated as eligible to
participate during a Plan Year may elect to defer Compensation otherwise payable during
the remainder of such Plan Year in accordance with the rules of this Section 4.3 by
executing a deferral agreement within the thirty (30) day period beginning on the date the
employee is classified or designated as an Eligible Employee or the date the Director is
designated as eligible, whichever is applicable, if permitted by Section 2.01 of the
Adoption Agreement. If Compensation is based on a specified performance period that begins
before the Eligible Employee or Director executes his deferral agreement, the election
will be deemed to apply to the portion of such Compensation equal to the total amount of
Compensation for the performance period multiplied by the ratio of the number of days
remaining in the performance period after the election over the total number of days in
the performance period. The rules of this paragraph shall not apply if the Eligible
Employee or Director has ever participated or is participating in a “Plan” within the
meaning of Prop. Reg. Sec. 1.409A-1(c) sponsored by the Employer.
	 
	4.4	 	Election of Payment Schedule and Form of Payment.
	 
	 	 	At the time an Eligible Employee or Director completes a deferral agreement,
the Eligible Employee or Director must elect a distribution event (which includes a
specified time) and a form of payment for the Compensation subject to the deferral
agreement from among the options the Administrator has made available for this purpose
and which are specified in 6.01(b) of the Adoption Agreement.
	 
	4.5	 	2005 Transitional Rules
	 
	 	 	If elected by the Plan Sponsor in Section 13.01 of the Adoption Agreement, one or more
of the following transitional rules set forth in Notice 2005-1 shall apply during
calendar year 2005. Each transitional rule that applies during calendar year 2005 will
be implemented in accordance with rules and procedures established by the Administrator.

	 	(a)	 	New Payment Elections.
	 
	 	 	 	A Participant may make new payment elections with respect to amounts subject to
Code Section 409A provided the elections are made no later than December 31, 2005. The new
payment elections may apply to amounts deferred before the date of the election and can be
made without regard to Code Sections 409A(a)(3) and (4) and any inconsistent provisions in
the Plan to the contrary. A Participant who fails to make a new payment election in
accordance with this Section 4.5(a) with respect any

4-2

 

	 	 	 	amount subject to Code Section 409A for which a valid payment election was
not made in accordance with the Plan and the requirements of Code Section 409A
will be deemed to have made the default elections provided in Section 13.01(a)
of the Adoption Agreement.
	 
	 	 	 	If the Plan Sponsor elects not to permit new payment elections in accordance
with this Section 4.5(a), the default elections specified in Section 13.01(a) of
the Adoption Agreement will apply to all amounts subject to Code Section 409A
that were deferred prior to December 31, 2005 for which a valid payment election
was not made in accordance with the Plan and the requirements of Code Section
409A.
	 
	 	(b)	 	Elections to terminate participation or cancel an outstanding election.
	 
	 	 	 	A Participant may elect to terminate participation or cancel a deferral election
with respect to amounts subject to Code Section 409A. An election made pursuant to
this Section 4.5(b) may apply: (i) to all or part of calendar year 2005; (ii) to
elective and/or nonelective deferred compensation under the Plan; (iii) to all or
any portion of the Plan; and/or (iv) to one or more outstanding deferral elections
with regard to amounts subject to Code Section 409A. An election made pursuant to
this Section 4.5(b) includes a termination or cancellation that results in a lower
amount of deferral for the period without a complete elimination of deferrals. Any
election made pursuant to this Section 4.5(b) may be made without regard to Code
Sections 409A(a)(2), (3) and (4) and any inconsistent provisions in the Plan to
the contrary.
	 
	 	(c)	 	Prospective Deferral Elections.
	 
	 	 	 	A Participant may make a deferral election with respect to
Compensation that has not yet been paid or become payable at the time of the
election, provided the election is made no later than March 15, 2005. The prospective
deferral election may be made without regard to Code Section 409A(a)(4) and any
inconsistent provisions in the Plan to the contrary.

	4.6	 	2006 Transitional Rule
	 
	 	 	If elected by the Plan Sponsor in accordance with Section 13.02 of the Adoption
Agreement, the following transitional rule will apply during calendar year 2006. The
rule will be implemented in accordance with rules and procedures established by the
Administrator.

4-3

 

	 	 	A Participant may make new payment elections with respect to amounts subject to Code
Section 409A provided: (a) the elections are made no later than December 31, 2006 and,
(b) a Participant cannot in 2006 change payment elections with respect to payments that
would otherwise have become payable in 2006 or cause payments to be made in 2006.
	 
	 	 	A Participant who fails to make a new payment election in accordance with amount subject
to Code Section 409A for which a valid payment election was not made in accordance with
the Plan and the requirements of Code Section 409A will be deemed to have made the
default elections provided in Section 13.01(a) of the Adoption Agreement.
	 
	 	 	If the Plan Sponsor elects not to permit new payment elections in accordance with this
Section 4.6, the default elections in Section 13.01(a) of the Adoption Agreement will
apply to all amounts subject to Code Section 409A for which a valid payment election was
not made in accordance with the Plan and the requirements of Code Section 409A.
	 
	4.7	 	2007 Transitional Rule
	 
	 	 	If elected by the Plan Sponsor in accordance with Section 13.03 of the Adoption
Agreement, the following transitional rule will apply during calendar year 2007. The
rule will be implemented in accordance with rules and procedures established by the
Administrator.
	 
	 	 	A Participant may make new payment elections with respect to amounts subject to Code
Section 409A provided: (a) the elections are made no later than December 31, 2007 and,
(b) a Participant cannot in 2007 change payment
elections with respect to payments that would otherwise have become payable in 2007 or
cause payments to be made in 2007.
	 
	 	 	A Participant who fails to make a new payment election in accordance with amount subject
to Code Section 409A for which a valid payment election was not made in accordance with
the Plan and the requirements of Code Section 409A will be deemed to have made the
default elections provided in Section 13.01(a) of the Adoption Agreement.
	 
	 	 	If the Plan Sponsor elects not to permit new payment elections in accordance with this
Section 4.7, the default elections in Section 13.01(a) of the Adoption Agreement will
apply to all amounts subject to Code Section 409A for which a valid payment election was
not made in accordance with the Plan and the requirements of Code Section 409A.

4-4

 

ARTICLE 5 – EMPLOYER CONTRIBUTIONS

	5.1	 	Matching Contributions. If elected by the Plan Sponsor in Section 5.01(a) of the Adoption
Agreement, the Employer will credit the Participant’s Account with a matching contribution
determined in accordance with the formula specified in Section 5.01(a) of the Adoption
Agreement. The matching contribution will be credited to the Participant’s Account at the
time specified in Section 5.01(a)(iii) of the Adoption Agreement.
	 
	5.2	 	Other Contributions. If elected by the Plan Sponsor in Section 5.01(b) of the Adoption
Agreement, the Employer will credit the Participant’s Account with a contribution
determined in accordance with the formula or method specified in Section 5.01(b) of the
Adoption Agreement. The contribution will be credited to the Participant’s Account at the
time specified in Section 5.01(b)(iii) of the Adoption Agreement.

5-1

 

ARTICLE 6 – ACCOUNTS AND CREDITS

	6.1	 	Establishment of Account. For accounting and computational purposes only, the
Administrator will establish and maintain an Account for each Participant which will
reflect the credits made pursuant to Section 6.2 along with the earnings, expenses, gains
and losses allocated thereto, attributable to the hypothetical investments made with the
amounts in the Participant’s Account as provided in Article 7. The Administrator will
establish and maintain such other
records and accounts, as it decides in its discretion to be reasonably required or
appropriate to discharge its duties under the Plan.
	 
	6.2	 	Credits to Account. A Participant’s Account will be credited for each Plan Year with the
amount of his elective deferrals under Section 4.1 at the time the amount subject to the
deferral election would otherwise have been payable to the Participant and the amount of
Employer contributions made on his behalf under Article 5. Such amounts will be credited
to the Participant’s Account at the times specified, respectively, in Sections
5.01(a)(iii) and 5.01(b)(iii) of the Adoption Agreement.

6-1

 

ARTICLE 7 – INVESTMENT OF CONTRIBUTIONS

	7.1	 	Investment Options. The amount in a Participant’s Account shall be treated as invested in
the investment options designated for this purpose by the Administrator and set forth in
Appendix A to the Adoption Agreement.
	 
	7.2	 	Adjustment of Accounts. The amount in a Participant’s Account shall be adjusted for
hypothetical investment earnings, expenses, gains or losses in an amount equal to the
earnings, expenses, gains or losses attributable to the investment options selected by the
party designated in Section 9.01 of the Adoption Agreement from among the investment
options provided in Section 7.1. If permitted by Section 9.01 of the Adoption Agreement, a
Participant may, in accordance with rules and procedures established by the Administrator,
select the investments from among the options provided in Section 7.1 to be used for the
purpose of calculating future hypothetical investment adjustments to the Participant’s
Account or to future credits to the Account under Section 6.2 effective as the Valuation
Date coincident with or next following notice to the Administrator. The Account of each
Participant shall be adjusted as of each Valuation Date to reflect: (a) the hypothetical
earnings, expenses, gains and losses described above; (b) amounts credited pursuant to
Section 6.2; and (c) distributions or withdrawals. In addition, the Account of each
Participant may be adjusted for its allocable share of the hypothetical costs and expenses
associated with the maintenance of the hypothetical investments provided in Section 7.1.

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ARTICLE 8 – RIGHT TO BENEFITS

	8.1	 	Vesting. A Participant, at all times, has the 100% nonforfeitable interest in the amounts
credited to his Account attributable to his elective deferrals made in accordance with
Section 4.1.
	 
	 	 	A Participant’s right to the amounts credited to his Account attributable to Employer
contributions made in accordance with Article 5 shall be determined in accordance with
the relevant schedule specified in Section 7.01 of the Adoption Agreement.
	 
	8.2	 	Death. The balance or remaining balance credited to a Participant’s vested Account shall
be paid to his Beneficiary at the time specified in Section 6.01(a) of the Adoption
Agreement in a single lump sum payment following the date of death, unless additional
forms of payment have been made available for this purpose in Section 6.01(b) of the
Adoption Agreement and the Participant has made a valid election (or valid elections) of a
form of payment in accordance with the provisions of Article
4. If additional forms have been made available, payment to the
Beneficiary shall be made at the time specified in Section 6.01(a) of the Adoption
Agreement in the form elected by the Participant in accordance with the provisions of
Article 4. If multiple Beneficiaries have been designated, each Beneficiary shall receive
payment of his specified portion of the Account at the time specified in Section 6.01(a)
of the Adoption Agreement in the form elected by the Participant.
	 
	 	 	A Participant may designate a Beneficiary or Beneficiaries, or change any prior
designation of Beneficiary or Beneficiaries in accordance with rules and procedures
established by the Administrator.
	 
	 	 	A copy of the death notice or other sufficient documentation must be filed with and
approved by the Administrator. If upon the death of the
Participant there is, in the opinion of the Administrator, no designated Beneficiary for
part or all of the Participant’s vested Account, such amount will be paid to his estate
(such estate shall be deemed to be the Beneficiary for purposes of the Plan) in a single
lump sum payment.

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	8.3	 	Disability. The balance or remaining balance credited to a Participant’s vested Account
shall be paid to the Participant at the time specified in Section 6.01(a) of the Adoption
Agreement in a single lump sum cash payment following the date a
Participant incurs a Disability as defined in Section 2.11, unless additional forms of
payment have been made available for this purpose in Section 6.01(b) of the Adoption
Agreement and the Participant has made a valid election of a different form of payment.
If additional forms have been made available, payment shall be made at the time specified
in Section 6.01(a) of the Adoption Agreement and in the form elected by the Participant
in accordance with the provisions of Article 4. The Administrator, in its sole
discretion, shall determine whether a Participant has experienced a disability for
purposes of this Section 8.3.

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ARTICLE
9 – DISTRIBUTION OF BENEFITS

	9.1	 	Amount of Benefits. The vested amount credited to a Participant’s Account as
determined under Articles 6, 7 and 8 shall determine and constitute the basis for the
value of benefits payable to the Participant under the Plan.
	 
	9.2	 	Method and Timing of Distributions. Except as otherwise provided in this Article 9,
distributions under the Plan shall be made in accordance with the elections made by the
Participant under Article 4. Distributions following a payment event shall commence at the
time specified in Section 6.01(a) of the Adoption Agreement. If permitted by Section
6.01(g) of the Adoption Agreement, a Participant may elect, at least twelve months before a
scheduled distribution event, to delay the payment date for a minimum period of sixty
months from the originally scheduled date of payment. The re-deferral election must be made
in accordance with procedures and rules established by the Administrator. The Participant
may, at the same time the date of payment is deferred, change the form of payment but such
change in the form of payment may not effect an acceleration of payment in violation of
Section 409A of the Code. For purposes of this Section 9.2, a series of installment
payments is always treated as a single payment and not as a series of separate payments.
	 
	9.3	 	Unforeseeable Emergency. A Participant may request a distribution due to an Unforeseeable
Emergency if the Plan Sponsor has elected to permit Unforeseeable Emergency withdrawals
under Section 8.01(a) of the Adoption Agreement. The request must be in writing and must be
submitted to the Administrator along with evidence that the circumstances constitute an
Unforeseeable Emergency. The Administrator has the discretion to require whatever evidence
it deems necessary to determine whether a distribution is warranted. Whether a Participant
has incurred an Unforeseeable Emergency will be determined by the Administrator on the
basis of the relevant facts and circumstances in its sole discretion, but, in no event,
will an Unforeseeable Emergency be deemed to exist if the hardship can be relieved: (a)
through reimbursement or compensation by insurance or otherwise, (b) by liquidation of the
Participant’s assets to the extent such liquidation would not itself cause severe financial
hardship, or (c) by cessation of deferrals under the Plan. A distribution due to an
Unforeseeable Emergency must be limited to the amount reasonably necessary to satisfy the
emergency need and may include any amounts necessary to pay any federal, state or local
income tax penalties
reasonably anticipated to result from the distribution. The distribution will be made in
the form of a single lump sum cash payment. If permitted by Section 8.01(b) of the Adoption
Agreement, a Participant’s deferral

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	 	 	elections for the remainder of the Plan Year will be cancelled upon a
withdrawal due to Unforeseeable Emergency.
	 
	9.4	 	Termination Before Retirement. If the Plan Sponsor has elected a Separation from Service
override in accordance with Section 6.01(d) of the Adoption Agreement, the following
provisions apply. A Participant who experiences a Separation from Service before
Retirement for any reason other than death shall receive the vested amount credited to his
Account at the time specified in Section 6.01(a) of the Adoption Agreement in a single
lump sum payment following such termination or cessation of service regardless of whether
the Participant had made different elections of time or form of payment as to the vested
amounts credited to his Account or whether the Participant was receiving installment
payouts at the time of such termination.
	 
	9.5	 	Cashouts Of Amounts Not Exceeding Stated Limit. If the vested amount credited to the
Participant’s Account does not exceed the limit established for this purpose by the Plan
Sponsor in Section 6.01(e) of the Adoption Agreement at the time he separates from service
with the Employer for any reason, the Employer shall distribute such amount to the
Participant at the time specified in Section 6.01(a) of the Adoption Agreement in a single
lump sum cash payment following such termination regardless of whether the Participant had
made different elections of time or form of payment as to the vested amount credited to
his Account or whether the Participant was receiving installments at the time of such
termination. A Participant’s Account, for purposes of this Section 9.5, shall include any
amounts described in Section 1.3.
	 
	9.6	 	Key Employees. In no event shall a distribution made to a Key Employee due to Separation
from Service (or Retirement, if applicable) occur before the date which is six months
after the date of his Separation from Service (or Retirement, if applicable) with the
Employer. For purposes of this Section 9.6, a Key Employee means an employee of an
Employer any of whose stock is publicly traded on an established securities market or
otherwise who satisfies the requirements of Section 416(i)(1)(A)(i), (ii) or (iii), of the
Code, determined without regard to Section 416(i)(5) of the Code, at any time during the
twelve-month period ending on the Identification Date. An employee who is determined to be
a Key
Employee on an Identification Date shall be treated as a Key Employee for purposes of the
six-month delay in distributions set forth in this Section 9.6 for the twelve-month period
beginning on the first day of the fourth month following the Identification Date. Whether
any stock of the Employer is traded on an established securities market or otherwise is
determined on the date a Participant experiences a Separation from Service. Installment
distributions to a Key Employee that are delayed due to the application of the
requirements of this Section 9.6 shall commence as of the earliest

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	 	 	date permitted by Code Section 409A.
	 
	9.7	 	Change in Control. If the Plan Sponsor has elected to permit distributions upon a Change
in Control, the following provisions shall apply. A distribution made upon a Change in
Control will be made at the time specified in Section 6.01(a) of the Adoption Agreement in
the form elected by the Participant in accordance with the procedures described in Article
4. Alternatively, if the Plan Sponsor has elected in accordance with Section 11.02 of the
Adoption Agreement to require distributions upon a Change in Control, the Participant’s
remaining vested Account shall be paid to the Participant or the Participant’s Beneficiary
at the time specified in Section 6.01(a) of the Adoption Agreement as a single lump sum
payment. A Change in Control, for purposes of the Plan, will occur upon a change in the
ownership of the Plan Sponsor, a change in the effective control of the Plan Sponsor or a
change in the ownership of a substantial portion of the assets of the Plan Sponsor, but
only if elected by the Plan Sponsor in Section 11.03 of the Adoption Agreement. The Plan
Sponsor, for this purpose, includes any corporation identified in this Section 9.7.
	 
	 	 	If a Participant continues to make deferrals in accordance with Article 4 after he has
received a distribution due to a Change in Control, the residual amount payable to the
Participant shall be paid at the time and in the form specified in the elections he makes
in accordance with Article 4 or upon his Death or Disability as provided in Article 8.
	 
	 	 	Whether a Change in Control has occurred will be determined by the Administrator in
accordance with the rules and definitions set forth in this Section 9.7. A distribution
to the Participant will be treated as occurring upon a Change in Control if the Plan
Sponsor terminates the Plan in accordance with Section 10.02 and distributes the
Participant’s benefits within twelve months of a Change in Control as provided in Section
10.3.

	 	(a)	 	Relevant Corporations. To constitute a Change in Control for purposes of the Plan,
the event must relate to (i) the corporation for whom the Participant is performing
services at the time of the Change in Control, (ii) the corporation that is liable for the
payment of the Participant’s benefits under the Plan (or all corporations liable if more
than one corporation is liable), or (iii) a corporation that is a majority shareholder of
a corporation identified in (i) or (ii), or any corporation in a chain of corporations in
which each corporation is a majority corporation of another corporation in the chain,
ending in a corporation identified in (i) or (ii). A majority shareholder is defined as a
shareholder owning more than fifty percent (50%) of the total fair market value and voting
power of such corporation.

9-3

 

	 	(b)	 	Stock Ownership. Code Section 318(a) applies for purposes of determining stock
ownership. Stock underlying a vested option is considered owned by the individual who owns
the vested option (and the stock underlying an unvested option is not considered owned by
the individual who holds the unvested option). If, however, a vested option is exercisable
for stock that is not substantially vested (as defined by Treasury Regulation Section
1.83-3(b) and (j)) the stock underlying the option is not treated as owned by the
individual who holds the option. Mutual and cooperative corporations are treated as having
stock for purposes of this Section 9.7.
	 
	 	(c)	 	Change in the Ownership of a Corporation. A change in the ownership of a corporation
occurs on the date that any one person or more than one person acting as a group, acquires
ownership of stock of the corporation that, together with stock held by such person or
group, constitutes more than fifty percent (50%) of the total fair market value or total
voting power of the stock of such corporation. If any one person or more than one person
acting as a proxy is considered to own more than fifty percent (50%) of the total fair
market value or total voting power of the stock of a corporation, the acquisition of
additional stock by the same person or persons is not considered to cause a change in the
ownership of the corporation (or to cause a change in the effective control of the
corporation as discussed below in Section 9.7(d)). An increase in the percentage of stock
owned by any one person, or persons acting as a group, as a result of a transaction in
which the corporation acquires its stock in exchange for property will be treated as an
acquisition of stock.
Section 9.7(c) applies only when there is a transfer of stock of a corporation (or
issuance of stock of a corporation) and stock in such corporation remains
outstanding after the transaction. For purposes of this Section 9.7(c), persons will
not be considered to be acting as a group solely because they purchase or own stock
of the same corporation at the same time or as a result of a public offering.
Persons will, however, be considered to be
acting as a group if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock, or similar business transaction
with the corporation. If a person, including an entity, owns stock in both
corporations that enter into a merger, consolidation, purchase or acquisition of
stock, or similar transaction, such shareholder is considered to be acting as a
group with other shareholders in a corporation prior to the transaction giving rise
to the change and not with respect to the ownership interest in the other
corporation.
	 
	 	(d)	 	Change in the effective control of a corporation. A change in the effective control of
a corporation occurs on the date that either (i) any one person, or more than one person
acting as a group, acquires (or

9-4

 

	 	 	 	has acquired during the twelve month period ending on the date of the most
recent acquisition by such person or persons) ownership of stock of the corporation
possessing thirty-five (35%) or more of the total voting power of the stock of such
corporation, or (ii) a majority of members of the corporation’s board of directors
is replaced during any twelve month period by directors whose appointment or
election is not endorsed by a majority of the members of the corporation’s board of
directors prior to the date of the appointment or election, provided that for
purposes of this paragraph (ii), the term corporation refers solely to the relevant
corporation identified in Section 9.7(a) for which no other corporation is a
majority shareholder for purposes of Section 9.7(a). In the absence of an event
described in Section 9.7(d)(i) or (ii), a change in the effective control of a
corporation will not have occurred. A change in effective control may also occur in
any transaction in which either of the two corporations involved in the transaction
has a change in the ownership of such corporation as described in Section 9.7(c) or
a change in the ownership of a substantial portion of the assets of such corporation
as described in Section 9.7(e). If any one person, or more than one person acting as
a group, is considered to effectively control a corporation within the meaning of
this Section 9.7(d), the acquisition of additional control of the corporation by the
same person or persons is not considered to cause a change in the effective control
of the corporation or to cause a change in the ownership of the corporation within
the meaning of Section 9.7(c). For purposes of this Section 9.7(d), persons will or
will not be considered to be acting as a group in accordance with rules similar to
those set forth in Section 9.7(c) with the following exception. If a person,
including an entity, owns stock in both corporations that enter into a merger,
consolidation, purchase or acquisition of stock, or similar transaction, such
shareholder is considered to be acting as a group with other shareholders in a
corporation only with respect to the ownership in that corporation prior to the
transaction giving rise to the change and not with respect to the ownership interest
in the other corporation.
	 
	 	(e)	 	Change in the ownership of a substantial portion of a corporation’s assets. A
change in the ownership of a substantial portion of a corporation’s assets occurs on the
date that any one person, or more than one person acting as a group (as determined in
accordance with rules similar to those set forth in Section 9.7(d)), acquires (or has
acquired during the twelve month period ending on the date of the most recent acquisition
by such person or persons) assets from the corporation that have a total gross fair market
value equal to or more than forty percent (40%) of the total gross fair market value of
all of the assets of the corporation immediately prior to such acquisition or
acquisitions. For this purpose, gross fair market value means the value of the assets of
the corporation of the

9-5

 

	 	 	 	value of the assets being disposed of determined without regard to any
liabilities associated with such assets. There is no Change in Control event under
this Section 9.7(e) when there is a transfer to an entity that is controlled by the
shareholders of the transferring corporation immediately after the transfer. A
transfer of assets by a corporation is not treated as a change in ownership of such
assets if the assets are transferred to (i) a shareholder of the corporation
(immediately before the asset transfer) in exchange for or with respect to its
stock, (ii) an entity, fifty percent (50%) or more of the total value or voting
power of which is owned, directly or indirectly, by the corporation, (iii) a person,
or more than one person acting as a group, that owns, directly or indirectly, fifty
percent (50%) or more of the total value or voting power of all the outstanding
stock of the corporation, or (iv) an entity, at least fifty (50%) of the total value
or voting power of which is owned, directly or indirectly, by a person described in
Section 9.7(e)(iii). For purposes of the foregoing, and except as otherwise
provided, a person’s status is determined immediately after the transfer of assets.

	9.8	 	Permissible Delays in Payment. Distributions may be delayed beyond the date payment would
otherwise occur in accordance with the provisions of Articles 8 and 9 in any of the
following circumstances. The Employer may delay payment if it reasonably anticipates that
its deduction with respect to such payment would be limited or eliminated by the
application of Section 162(m) of the Code. Payment must be made at the earliest date at
which the Employer reasonably anticipates that the deduction of the payment amount will
not be eliminated or limited by Section 162(m) of the Code or the calendar year in which
the Participant Separates from Service. The Employer may also delay payment if it
reasonably anticipates that the payment will violate a term of a loan agreement or other
similar contract to which the Employer is a party and such violation will cause material
harm to the Employer. Payment must be made at the earliest date on which the Employer
reasonably anticipates that the making of the payment will not cause a violation or the
violation will no longer cause material harm to the Employer. Payment cannot be delayed if
the facts and circumstances indicate that the Employer entered into the loan agreement or
similar contract not for
legitimate business reasons but to avoid the restrictions on deferral elections and
subsequent deferral elections under Section 409A of the Code. The Employer may also delay
payment if it reasonably anticipates that the making of the payment will violate Federal
Securities Laws or other applicable laws provided payment is made at the earliest date on
which the Employer reasonably anticipates that the making of the payment will not cause
such violation. The
Employer reserves the right to amend the Plan to provide for a delay in payment upon such
other events and conditions as the Secretary of the Treasury may prescribe in generally
applicable guidance published in the

9-6

 

	 	 	Internal Revenue Bulletin. Once a provision permitting delay of payment is applicable
to an amount of deferred compensation, the failure to apply such provision or the
modification of the Plan to remove such provision will constitute an acceleration of any
payment to which such provision applied.

9-7

 

ARTICLE 10 – AMENDMENT AND TERMINATION

	10.1	 	Amendment by Plan Sponsor. The Plan Sponsor reserves the right to amend the Plan (for itself
and each Employer) through action of its Board of Directors. No amendment can directly or
indirectly deprive any current or former Participant or Beneficiary of all or any portion of his
Account which had accrued prior to the amendment.
	 
	10.2	 	Plan Termination Following Change in Control or Corporate
Dissolution. If so elected by the in 11.01 of the Adoption Agreement, the Plan Sponsor
reserves the right to terminate the Plan and distribute all amounts credited to all
Participant Accounts within the 30 days preceding or the twelve months following a Change
in Control as determined in accordance with the rules set forth in Section 9.7. For this
purpose, the Plan will be treated as terminated only if all substantially similar
arrangements sponsored by the Plan Sponsor are terminated so that all participants under
the Plan and all similar arrangements are required to receive all amounts deferred under
the terminated arrangements within twelve months of the date of termination of the
arrangements. In addition, the Plan Sponsor reserves the right to terminate the Plan
within twelve months of a corporate dissolution taxed under Section 331 of the Code or
with the approval of a bankruptcy court pursuant to United States Code Section
503(b)(1)(A) provided that amounts deferred under the Plan are included in the gross
incomes of Participants in the latest of (a) the calendar year in which the termination
occurs, (b) the calendar year in which the amount is no longer subject to a substantial
risk of forfeiture, or (c) the first calendar year in which payment is administratively
practicable.
	 
	10.3	 	Other Plan Terminations. The Plan Sponsor retains the discretion to terminate the Plan if
(a) all arrangements sponsored by the Plan Sponsor that would be aggregated with any terminated
arrangement under Prop.
Reg. Section 1.409A-1(c) are terminated, (b) no payments other than payments that would be
payable under the terms of the arrangements if the termination had not occurred are made
within twelve months of the termination of the arrangements, (c) all payments are made
within twenty-four months of the termination of the arrangements, (d) the Plan Sponsor
does not adopt a new arrangement that would be aggregated with any terminated arrangement
under Prop. Reg. Section 1.409A-1(c) at any time within the five year period following the
date of termination of the arrangement. The Plan Sponsor also reserves the right to amend
the Plan to provide that termination of the Plan will occur under such conditions and
events as may be prescribed by the Secretary of the Treasury in generally applicable
guidance published in the Internal Revenue Bulletin.

10-1

 

ARTICLE 11 – THE TRUST

11.1 Establishment of Trust. The Plan Sponsor may but is not required to establish a trust to
hold amounts which the Plan Sponsor may contribute from time to time to correspond to some or all
amounts credited to Participants under Section 6.2. If the Plan Sponsor elects to establish a
trust in accordance with Section 10.01 of the Adoption Agreement, the provisions of Sections 11.2
and 11.3 shall become operative.

11.2  Grantor Trust. Any trust established by the Plan Sponsor shall be between the Plan Sponsor and
a trustee pursuant to a separate written agreement under which assets are held, administered and
managed, subject to the claims of the Plan Sponsor’s creditors in the event of the Plan Sponsor’s
insolvency, until paid to the Participant and/or his Beneficiaries specified in the Plan. The trust
is intended to be treated as a grantor trust under the Code, and the establishment of the trust
shall not cause the Participant to realize current income on amounts contributed thereto. The Plan
Sponsor must notify the trustee in the event of a bankruptcy or insolvency.

11.3  Investment of Trust Funds. Any amounts contributed to the trust by the
Plan Sponsor shall be invested by the trustee in accordance with the provisions of the
trust and the instructions of the Administrator. Trust investments need not reflect the
hypothetical investments selected by Participants under Section 7.1 for the purpose of
adjusting Accounts and the earnings or investment results of the trust shall not affect the
hypothetical investment adjustments to Participant Accounts under the Plan.

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ARTICLE 12 – PLAN ADMINISTRATION

	12.1	 	Powers and Responsibilities of the Administrator. The Administrator has the full power and
the full responsibility to administer the Plan in all of its details, subject, however, to the
applicable requirements of ERISA.
The Administrator’s powers and responsibilities include, but are not limited to, the
following:

	 	(a)	 	To make and enforce such rules and procedures as it deems necessary or proper
for the efficient administration of the Plan;
	 	 	 
	 	(b)	 	To interpret the Plan, its interpretation thereof to be final on all persons
claiming benefits under the Plan;
	 	 	 
	 	(c)	 	To decide all questions concerning the Plan and the eligibility of any person to
participate in the Plan;
	 	 	 
	 	(d)	 	To administer the claims and review procedures specified in Section 12.2;
	 	 	 
	 	(e)	 	To compute the amount of benefits which will be payable to any Participant, former
Participant or Beneficiary in accordance with the provisions of the Plan;
	 	 	 
	 	(f)	 	To determine the person or persons to whom such benefits will be paid;
	 	 	 
	 	(g)	 	To authorize the payment of benefits;
	 	 	 
	 	(h)	 	To comply with the reporting and disclosure requirements of Part 1 of Subtitle B of
Title I of ERISA;
	 	 	 
	 	(i)	 	To appoint such agents, counsel, accountants, and consultants as may be required to
assist in administering the Plan;
	 	 	 
	 	(j)	 	By written instrument, to allocate and delegate its responsibilities, including the
formation of an Administrative Committee to administer the Plan.

12-1

 

	12.2	 	Claims and Review Procedures.

	 	(a)	 	Claims Procedure.
	 
	 	 	 	If any person believes he is being denied any rights or benefits under the Plan,
such person may file a claim in writing with the Administrator. If any such claim
is wholly or partially denied, the Administrator will notify such person of its
decision in writing. Such notification will contain (i) specific reasons for the
denial, (ii) specific reference to pertinent Plan provisions, (iii) a description
of any additional material or information necessary for such person to perfect such
claim and an explanation of why such material or information is necessary, and (iv)
a description of the Plan’s review procedures and the time limits applicable to
such procedures, including a statement of the person’s right to bring a civil
action following an adverse decision on review. Such notification will be given
within 90 days after the claim is received by the Administrator (or within 180
days, if special circumstances require an extension of time for processing the
claim, and if written notice of such extension and circumstances is given to such
person within the initial 90-day period). If such notification is not given within
such period, the claim will be considered denied as of the last day of such period
and such person may request a review of his claim.
	 
	 	(b)	 	Review Procedure.
	 
	 	 	 	Within 60 days after the date on which a person receives a written notification of
denial of claim (or, if written notification is not provided, within 60 days of the
date denial is considered to have occurred), such person (or his duly authorized
representative) may (i) file a written request with the Administrator for a review
of his denied claim and of pertinent documents and (ii) submit written issues and
comments to the Administrator. The Administrator will notify such person of its
decision in writing. Such notification will be written in a manner calculated to be
understood by such person and will contain specific reasons for the decision as
well as specific references to pertinent Plan provisions. The notification will
explain that the person is entitled to receive, upon request and free of charge,
reasonable access to and copies of all pertinent documents and has the right to
bring a civil action following an adverse decision on review. The decision on
review will be made within 60 days after the request for review is received by the
Administrator (or within 120 days, if special circumstances require an extension of
time for processing the request, such as an election by the

12-2

 

	 	 	 	Administrator to hold a hearing, and if written notice of such extension and
circumstances is given to such person within the initial 60-day period). If the
decision on review is not made within such period, the claim will be considered
denied.

	12.3	 	Plan Administrative Costs. All reasonable costs and expenses
(including legal, accounting, and employee communication fees) incurred by the
Administrator in administering the Plan shall be paid by Plan to the extent not paid by
the Employer.

12-3

 

ARTICLE 13 – MISCELLANEOUS

	13.1	 	Unsecured General Creditor of the Employer. Participants and their
Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights,
interests or claims in any property or assets of the Employer. For purposes of the payment
of benefits under the Plan, any and all of the Employer’s assets shall be, and shall
remain, the general, unpledged, unrestricted assets of the Employer. Each Employer’s
obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay
money in the future.
	 
	13.2	 	Employer’s Liability. Each Employer’s liability for the payment of benefits under the Plan
shall be defined only by the Plan and by the deferral agreements entered into between a Participant
and the Employer. An Employer shall have no obligation or liability to a Participant under the Plan except as
provided by the Plan and a deferral agreement or agreements. An Employer shall have no
liability to Participants employed by other Employers.
	 
	13.3	 	Limitation of Rights. Neither the establishment of the Plan, nor any amendment thereof, nor
the creation of any fund or account, nor the payment of any benefits, will be construed as giving
to the Participant or any other person any legal or equitable right against the Employer, the Plan
or the Administrator, except as provided herein; and in no event will the terms of employment or
service of the Participant be modified or in any way affected hereby.
	 
	13.4	 	Anti-Assignment. Except as may be necessary to fulfill a domestic relations order within the
meaning of Section 414(p) of the Code, none of the benefits or rights of a Participant or any
Beneficiary of a Participant shall be subject to the claim of any creditor. In particular, to the
fullest extent permitted by law, all such benefits and rights shall be free from attachment,
garnishment, or any other legal or equitable process available to any creditor of the Participant
and his or her Beneficiary. Neither the Participant nor his or her Beneficiary shall have the right
to alienate, anticipate, commute, pledge, encumber, or assign any of the payments which he or she
may expect to receive, contingently or otherwise, under the Plan, except the right to designate a
Beneficiary to receive death benefits provided hereunder. Notwithstanding the preceding, the
benefit payable from a Participant’s Account may be reduced, at the discretion of the
administrator, to satisfy any debt or liability to the Employer.
	 
	13.5	 	Facility of Payment. If the Administrator determines, on the basis of medical reports or other
evidence satisfactory to the Administrator, that the recipient of any benefit payments under the
Plan is incapable of handling his affairs by reason of minority, illness, infirmity or other
incapacity, the Administrator may

13-1

 

	 	 	direct the Employer to disburse such payments to a person or institution designated by a
court which has jurisdiction over such recipient or a person or institution otherwise
having the legal authority under State law for the care and control of such recipient. The
receipt by such person or institution of any such payments therefore, and any such payment
to the extent thereof, shall discharge the liability of the Employer, the Plan and the
Administrative Committee for the payment of benefits hereunder to such recipient.

	13.6	 	Notices. Any notice or other communication to the Employer or Administrator in connection with
the Plan shall be deemed delivered in writing if addressed to the Plan Sponsor at the address
specified in Section 1.03 of the Adoption Agreement and if either actually delivered at said
address or, in the case or a letter, 5 business days shall have elapsed after the same shall have
been deposited in the United States mails, first-class postage prepaid and registered or certified.

	 
	13.7	 	Tax Withholding. If the Employer concludes that tax is owing with respect to any deferral or
payment hereunder, the Employer shall withhold such amounts from any payments due the Participant,
as permitted by law, or otherwise make appropriate arrangements with the Participant or his
Beneficiary for satisfaction of such obligation. Tax, for purposes of this
Section 13.7 means any federal, state, local or any other governmental income tax,
employment or payroll tax, excise tax, or any other tax or assessment owing with respect to
amounts deferred, any earnings thereon, and any payments made to Participants under the
Plan.
	 
	13.8	 	Indemnification. Each Employer shall indemnify and hold harmless each employee, officer, or
director of an Employer to whom is delegated duties, responsibilities, and authority with respect
to the Plan against all claims, liabilities, fines and penalties, and all expenses reasonably
incurred by or imposed upon him (including but not limited to reasonable attorney fees) which arise
as a result of his actions or failure to act in connection with the operation and administration of
the Plan to the extent lawfully allowable and to the extent that such claim, liability, fine,
penalty, or expense is not paid for by liability insurance purchased or paid for by an Employer.
Notwithstanding the foregoing, an Employer shall not indemnify any person for any such amount
incurred through any settlement or compromise of any action unless the Employer consents in writing
to such settlement or compromise.
Indemnification under this Section 13.8 shall not be applicable to any person if the cost,
loss, liability, or expense is due to the person’s gross negligence, fraud or willful
misconduct or if the person refuses to assist in the defense of the claim against him.

13-2

 

	13.9	 	Permitted Acceleration of Payment. The Plan may permit acceleration of the time or schedule of
any payment or amount scheduled to be paid pursuant to a payment under the Plan as provided in
Section 10.2 or 10.3 and this Section 13.9. The Plan may permit acceleration of payment (a) to an
individual other than the Participant as may be necessary to fulfill a domestic relations order
within the meaning of Section 414(p)(1)(B) of the Code, (b) to comply with a certificate of
divestiture as defined in Section 1043(b)(2) of the Code, (c) to pay the Federal Insurance
Contributions Act (FICA) tax imposed under Sections 3101, 3121(a) and 3121(v)(2) of the Code on
compensation deferred under the Plan, (d) to pay the income tax under Section 3401 of the Code or
the corresponding withholding provisions of the applicable state, local or foreign tax laws as a
result of the payment of any FICA tax described in (c) and to pay the additional income tax at
source on wages attributable to the pyramiding Section 3401 of the Code, wages and taxes, and (e)
to pay the amount required to be included in gross income as a result of the failure of the Plan to
comply with the requirements of Section 409A of the Code.
The total payment under (c) or (d) shall, in no event, exceed the aggregate of the FICA tax
and the income tax withholding related to such FICA tax. The total payment under (e) shall,
in no event, exceed the amount required to be included in income as a result of the failure
to comply with requirements of Section 409A of the Code.
	 
	13.10	 	Governing Law. The Plan will be construed, administered and enforced according to the laws of
the State specified by the Plan Sponsor in Section 12.01 of the Adoption Agreement.

13-3

 

ADOPTION AGREEMENT

	 	 	 	 	 	 	 
	1.01 	 	PREAMBLE 
	 
	 	 	 	 	 	 
	 	 	By the execution of this Adoption Agreement the Plan Sponsor

hereby [complete (a) or (b)]
	 
	 	 	 	 	 	 
	 

	 	(a)
	 	o
	 	adopts a new plan as of                                         [month, day, year]
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	þ
	 	amends and restates its existing plan as of 01/01/2007 which is the
Amendment Restatement Date.
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Original Effective Date: 01/01/1996
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Pre-409A Grandfathering: þ Yes o No [If yes, complete Appendix B,
“Summary of Grandfathered Provisions”]
	 
	 	 	 	 	 	 

	1.02	 	 PLAN
	 
	 	 	Plan Name: Diamond Offshore Management Company Supplemental Executive
Retirement Plan (formerly known as the Diamond Offshore Management Company
Deferred Compensation and Supplemental Executive Retirement Plan)
	 
	 	 	Plan Year: January 1 through December 31.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	1.03

	 	PLAN SPONSOR	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Diamond Offshore Management Company

 
	 	 
	 

	 	Address:
	 	15415 Katy Freeway, Suite 100, Houston TX 77094-1810

 
	 	 
	 

	 	Phone # :
	 	281-492-5300

 
	 	 
	 

	 	EIN:
	 	13-3560049

 
	 	 
	 

	 	Fiscal Yr:
	 	01/01 through 12/31

 
	 	 
	 

	 	Form of Entity:
	 	Corporation

 
	 	 
	 
	 	 	 	 	 	 
	 	 	If Plan Sponsor is a Corporation is stock publicly traded?
	 
	 	 	 	 	 	 
	 

	 	þ Yes      
	 	oNo	 	 
	 
	 	 	 	 	 	 

	1.04	 	 EMPLOYER 
	 
	 	 	The following entities have been authorized by the Plan Sponsor to participate in and
have adopted the Plan:

	 	 	 	 	 	 	 
	 	 	Entity	 	Publicly Traded Corporation
	 
	 	 	 	 	 	 
	 

	 	 	 	Yes
	 	No
	 
	 	 	 	 	 	 
	 

	 	Diamond Offshore Management Company
	 	þ
	 	o
	 

	 	 

	 	o
	 	o
	 

	 	 

	 	o
	 	o
	 

	 	 

	 	o
	 	o
	 

	 	 

	 	 
	 	 

October
2006

-1-

 

	1.05	 	ADMINISTRATOR
	 
	 	 	The Plan Sponsor has designated the following party or parties to be responsible for the
administration of the Plan:
	 
	 	 	Committee appointed by the Board of Directors.

	 	 	 	 	 
	 

	 	Note:
	 	The Administrator is the person or persons designated by the Plan Sponsor to be
responsible for the administration of the Plan. This is not Fidelity Investments
Institutional Operations Company, Inc. nor any other Fidelity affiliate.

	1.06	 	IDENTIFICATION DATE
	 
	 	 	The Employer has designated 09/30 as the Identification Date for purposes of
determining Key Employees.
	 
	 	 	In the absence of a designation, the Identification Date is December 31.

October
2006

-2-

 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	2.01	 	 PARTICIPATION	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(a)	 	Employees [complete (i), (ii) or (iii)]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	þ
	 	Eligible Employees are selected by the Employer.	 	 
	 
	 

	 	 	 	(ii)
	 	o
	 	Eligible Employees are those employees of the Employer who satisfy the
following criteria:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 
	 

	 	 	 	 	 	 	 	 
	 	 
	 

	 	 	 	 	 	 	 	 
	 	 
	 

	 	 	 	 	 	 	 	 
	 	 
	 

	 	 	 	 	 	 	 	 
	 	 
	 

	 	 	 	(iii)
	 	o
	 	Employees are not eligible to participate.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(b)	 	Directors [complete (i), (ii) or (iii)]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	o
	 	All Directors are eligible to participate.	 	 
	 
	 

	 	 	 	(ii)
	 	o
	 	Only Directors selected by the Employer are eligible to participate.	 	 
	 
	 

	 	 	 	(iii)
	 	o
	 	Directors are not eligible to participate.	 	 

October
2006

-3-

 

	 	 	 	 	 	 	 
	3.01	 	COMPENSATION	 	 
	 
	 	 	 	 	 	 
	 	 	For purposes of determining Participant contributions under Article 4 and Employer
contributions under Article 5, Compensation shall be defined in the following manner
[complete (a) or (b) and select (c) and/or (d), if applicable]:
	 
	 

	 	(a)
	 	þ
	 	Compensation is defined as:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Base salary
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	o
	 	Compensation as defined in                      [insert name of qualified
plan] without regard to the limitation captured in Section
401(a)(17) of the Code for such Plan Year:
	 
	 	 	 	 	 	 
	 

	 	(c)
	 	o
	 	Director Compensation is defined as:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 

	 	(d)
	 	o
	 	Compensation shall, for all Plan purposes, be limited to
$                    .
	 
	 	 	 	 	 	 
	 

	 	(e)
	 	o
	 	Not Applicable.
	 
	 	 	 	 	 	 
	3.02	 	BONUSES	 	 
	 
	 	 	 	 	 	 
	 	 	Compensation, as defined in Section 3.01 of the Adoption Agreement, includes the
following type of bonuses:

	 	 	 	 	 	 	 	 	 
	 	 	Will be treated as Performance
	Type	 	Based Compensation
	 
	 	Yes	 	No
	 
	 	 	o	 	 	 	o	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	o	 	 	 	o	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	o	 	 	 	o	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	o	 	 	 	o	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	o	 	 	 	o	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	o Not Applicable.
	 	 	 	 	 	 	 	 

October 2006

 

- 4 -

 

	4.01	 	PARTICIPANT CONTRIBUTIONS
	 
	 	 	If Participant contributions are permitted, complete (a), (b), and (c). Otherwise
complete (d).

	 	(a)	 	Amount of Deferrals
	 
	 	 	 	A Participant may elect within the period specified in Section 4.01(b) of the
Adoption Agreement to defer the following amounts of remuneration. For each type of
remuneration listed, complete “dollar amount” or “percentage amount” but not both.

(i) Compensation Other than Bonuses [do not complete if you complete (iii)]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Dollar Amount	 	% Amount	 	 	 	 
	 	Type of Remuneration	 	Min	 	Max	 	Min	 	Max	 	Increment

	 	(a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	(b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	(c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

Note: The increment is required to determine the permissible deferral amounts. For example,
a minimum of 0% and maximum of 20% with a 5% increment would allow an individual to defer
0%, 5%, 10%, 15% or 20%.

(ii) Bonuses [do not complete if you complete (iii)]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Dollar Amount	 	% Amount	 	 	 	 
	 	Type of Bonus	 	Min	 	Min	 	Min	 	Max	 	Increment

	 	(a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	(b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	(c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

(iii) Compensation [do not complete if you completed (i) and (ii)]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Dollar Amount	 	% Amount	 	 	 	 
	 	Min	 	Max	 	Min	 	Max	 	Increment

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

(iv) Director Compensation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Dollar Amount	 	% Amount	 	 	 	 
	 	Type of Compensation	 	Min	 	Min	 	Min	 	Max	 	Increment

	 	Annual Retainer	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Meeting Fees	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Other:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Other:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

October 2006

 

- 5 -

 

	(b)	 	Election Period

	 	(i)	 	Performance Based Compensation
	 
	 	 	 	A special election period
	 
	 	 	 	o Does                     o Does Not
	 
	 	 	 	apply to each eligible type of performance based compensation
referenced in
Section 3.02 of the Adoption Agreement.
	 
	 	 	 	The special election period, if applicable, will be
determined by the Employer.
	 
	 	(ii)	 	Newly Eligible Participants
	 
	 	 	 	An employee who is classified or designated as an Eligible Employee during
a Plan Year
	 
	 	 	 	o May                     o May Not
	 
	 	 	 	elect to defer Compensation otherwise payable during the remainder of the
Plan Year by completing a deferral agreement within the 30 day period
beginning on the date he is eligible to participate in the Plan.

	(c)	 	Revocation of Deferral Agreement
	 
	 	 	A Participant’s deferral agreement
	 
	 	 	o Will
	 
	 	 	o Will Not
	 
	 	 	be cancelled for the remainder of any Plan Year during which he receives a
hardship distribution of elective deferrals from a qualified cash or deferred
arrangement maintained by the Employer.
	 
	(d)	 	No Participant Contributions
	 
	 	 	þ Participant contributions are not permitted under the Plan.

October 2006

 

- 6 -

 

	5.01	 	EMPLOYER CONTRIBUTIONS
	 
	 	 	If Employer contributions are permitted, complete (a) and/or (b). Otherwise
complete (c).

	 	(a)	 	Matching Contributions

	 	 	 	 	 	 	 	 	 	 	 
	 	 	(i)	 	Amount	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	For each Plan Year, the Employer shall make a Matching Contribution on
behalf of each Participant who satisfies the requirements of Section 5.01(a)(ii)
of the Adoption Agreement equal to [complete one]:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(A)	 	þ	 	6% of the Compensation for the Plan Year in excess of the IRC
401(a)(17) limit
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(B)	 	o	 	An amount determined by the Employer in its sole discretion
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(C)	 	o	 	Matching Contributions for each Participant shall be limited to
$                      and/or                      % of Compensation.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(D)
	 	o
	 	Other:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	                
     
                     
                     
       	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	                
       
                     
                     
     	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(E)	 	o	 	Not Applicable [Proceed to Section 5.01(b)]
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(ii)	 	Eligibility for Matching Contribution	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	A Participant shall receive an allocation of Matching Contributions determined
in accordance with Section 5.01(a)(i) provided he satisfies the following
requirements [complete the ones that are applicable]:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(A)	 	þ	 	Describe requirements:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Receives Compensation in excess of the IRC
401(a)(17) compensation limit for the Plan Year and
has elected to make elective deferrals to the Diamond
Offshore 401(k) Plan by the last day of the Plan Year.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(B)	 	þ	 	Is selected by the Employer in its sole discretion to
receive an allocation of Matching Contributions
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(C)	 	o	 	No requirements

October 2006

 

- 7 -

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	(iii)	 	Time of Allocation
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Matching Contributions, if made, shall be treated as allocated [select one]:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(A)	 	þ	 	As of the last day of the Plan Year
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(B)	 	o	 	At such times as the Employer shall determine in it
sole discretion
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(C)	 	o	 	At the time the Compensation on account of which
the Matching Contribution is being made would
otherwise have been paid to the Participant
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(D)	 	o	 	Other:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	              
                     
                     
                    
                    
                    
                    
                    
    
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	              
                     
                     
                    
                    
                    
                    
                    
    
	 
	 	 	 	 	 	 	 	 	 	 
	(b)	 	Other Contributions	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	(i)
	 	Amount	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	The Employer shall make a contribution on behalf of each Participant who
satisfies the requirements of Section 5.01(b)(ii) equal to [complete one]:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(A)	 	þ	 	An amount equal to 5% of the Participant’s
Compensation in excess of the 401(a)(17) limit
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(B)	 	o	 	An amount determined by the Employer in its sole
discretion
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(C)	 	o	 	Contributions for each Participant shall be limited to $     
               
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(D)	 	o	 	Other:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	              
                     
                     
                    
                    
                    
                    
                    
    
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	              
                     
                     
                    
                    
                    
                    
                    
    
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	              
                     
                     
                    
                    
                    
                    
                    
    
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(E)	 	o	 	Not Applicable [Proceed to Section 6.01]

October 2006

 

- 8 -

 

	 	(ii)	 	Eligibility for Other Contributions

A Participant shall receive an allocation of other Employer contributions
determined in accordance with Section 5.01(b)(i) for the Plan Year if he
satisfies the following requirements [complete the one that is applicable]:

	 	 	 	 	 	 	 
	(A)

	 	o
	 	Describe requirements:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(B)	 	þ	 	Is selected by the
Employer in its sole discretion to receive an allocation of other Employer contributions
	 
	 	 	 	 	 	 
	(C)

	 	o
	 	No requirements	 	 

	 	(iii)	 	Time of Allocation

Employer contributions, if made, shall be treated as allocated
[select one]:

	 	 	 	 	 	 	 
	(A)

	 	þ
	 	As of the last day of the Plan Year	 	 
	 
	 	 	 	 	 	 
	(B)	 	o	 	At such time or times
as the Employer shall determine in its sole discretion
	 
	 	 	 	 	 	 
	(C)

	 	o
	 	Other:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 
	(c)	 	No Employer Contributions
	 
	 	 	 	 
	 

	 	o
	 	Employer contributions are not permitted under the Plan

October 2006

 

- 9 -

 

	6.01	 	DISTRIBUTIONS

The timing and form of payment of distributions made from the Participant’s vested Account
shall be made in accordance with the elections made in this Section 6.01 of the Adoption
Agreement except when Section 9.6 of the Plan requires a six month delay for certain
distributions to Key Employees of publicly traded companies.

	 	(a)	 	Timing of Distributions

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(i)	 	    All distributions shall commence in accordance with the following [choose one]:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(A)	 	þ	 	As of the distribution event
	 	 	(B)	 	o	 	Monthly on specified day                     [insert day]
	 	 	(C)	 	o	 	Annually on specified
month and day                     [insert month and day]
	 	 	(D)	 	o	 	Calendar quarter on specified day                     [insert day]
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(ii)	 	    The timing of distributions as determined in Section 6.01(a)(i) shall be modified
by the adoption of:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	(A)	 	o	 	Event Delay — Distribution events other than those based on Specified
Date or Specified Age will be treated as not having occurred for
30 days.
	 
	 	 	(B)	 	o	 	Hold Until Next Year
— Distribution events other than those based on Specified Date or
Specified Age will be treated as not having occurred for twelve months from the date of the event.

	 
	 	 	(C)	 	o	 	Immediate Processing
— The timing method selected by the Plan Sponsor under
Section 6.01(a)(i) shall be overridden for the following distribution events [insert events]:
	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 

October 2006

 

- 10 -

 

	(b)	 	Distribution Events
	 
	 	 	If multiple events are selected, the earliest to occur will trigger payment.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Lump	 	 
	 	 	 	 	 	 	Sum	 	Installments
	 
	 	 	 	 	 	 	 	 
	(i)

	 	o
	 	Specified Date
	 	                    
	 	                    
years to
                    
years
	 
	 	 	 	 	 	 	 	 
	(ii)

	 	o
	 	Specified Age
	 	                    
	 	                    
years to
                     years
	 
	 	 	 	 	 	 	 	 
	(iii)

	 	þ
	 	Separation from Service
	 	X
	 	2 years to 15 years
	 
	 	 	 	 	 	 	 	 
	(iv)

	 	o
	 	Separation from Service plus 6 months
	 	                    
	 	                    
years to
                    
years
	 
	 	 	 	 	 	 	 	 
	(v)

	 	o
	 	Separation from Service plus                     
months [not to
exceed                     months]
	 	                    
	 	                    
years to
                     years
	 
	 	 	 	 	 	 	 	 
	(vi)

	 	o
	 	Retirement
	 	                    
	 	                    
years to
                     years
	 
	 	 	 	 	 	 	 	 
	(vii)

	 	o
	 	Retirement plus 6 months
	 	                    
	 	                    
years to                      years
	 
	 	 	 	 	 	 	 	 
	(viii)

	 	o
	 	Retirement
plus                     months [not to
exceed
                     months]
	 	                    
	 	                    
years to
                     years
	 
	 	 	 	 	 	 	 	 
	(ix)

	 	o
	 	Later of Separation from Service or
Specified Age
	 	                    
	 	                    
years to                      years
	 
	 	 	 	 	 	 	 	 
	(x)

	 	o
	 	Later of Separation from Service or
Specified Date
	 	                    
	 	                    
years to                      years
	 
	 	 	 	 	 	 	 	 
	(xi)

	 	o
	 	Later of Retirement or Specified Age
	 	                    
	 	                    
years to
                     years
	 
	 	 	 	 	 	 	 	 
	(xii)

	 	o
	 	Later of Retirement or Specified Date
	 	                    
	 	                    
years to                      years
	 
	 	 	 	 	 	 	 	 
	(xiii)

	 	o
	 	Disability
	 	                    
	 	                     years to                      years
	 
	 	 	 	 	 	 	 	 
	(xiv)

	 	o
	 	Death
	 	                    
	 	                    
years to                      years
	 
	 	 	 	 	 	 	 	 
	(xv)

	 	o
	 	Change in Control
	 	                    
	 	                     years to                     years

If payment is made due to Disability, payment shall be made at the time and in the form
elected by the Participant for payment in the event of Separation from Service.

Installments may be paid [select each that applies]

	 	 	 
	o

	 	Monthly
	o

	 	Quarterly
	þ

	 	Annually

	(c)	 	Specified Date and Specified Age elections may not extend
beyond age
                     [insert age].

October 2006

 

- 11 -

 

	(d)	 	Separation from Service Override
	 
	 	 	A Separation from Service override

	 	o	 	Shall apply. [If this is elected, “Separation from Service” cannot be selected
as a distribution event in Section 6.01(b)]
	 
	 	þ	 	Shall not apply.

A Separation from Service override provides that a Participant, whose Separation from
Service occurs before Retirement, shall receive the vested amount credited to his Account
as a lump sum payment.

	(e)	 	Involuntary Cashouts

	 	o	 	If the Participant’s vested Account at the time of his Separation from
Service does not exceed $__  (insert dollar amount) distribution of the
vested Account shall automatically be made in the form of a single lump
sum in accordance with Section 9.5 of the Plan.
	 
	 	þ	 	There are no involuntary cashouts.

	(f)	 	Retirement

	 	 	 	 	 	 	 
	 

	 	o
	 	Retirement shall be defined as a Separation from Service that occurs
on or after the Participant [insert description of requirements]:
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	þ
	 	No special definition of Retirement applies.	 	 

	(g)	 	Redeferrals
	 
	 	 	A Participant

	 	o	 	Shall
	 
	 	þ	 	Shall Not

be permitted to modify a scheduled distribution date and/or payment option in
accordance with Section 9.2 of the Plan.

A
Participant shall generally be permitted to elect such modification
                    
number
of times.

Administratively, allowable distribution events will be modified to reflect all options
necessary to fulfill the redeferrals provision.

October 2006

 

- 12 -

 

	7.01	 	VESTING

	 	(a)	 	Matching Contributions
	 
	 	 	 	The Participant’s vested interest in the amount credited to his Account attributable to
Matching Contributions shall be based on the following schedule:

	 	 	 	 	 
	Years of Service	 	Vesting %	 	 
	0
	 	       100       	 	(insert ‘100’ if there
is immediate vesting)
	1
	 	                    	 	 
	2
	 	                    	 	 
	3
	 	                    	 	 
	4
	 	                    	 	 
	5
	 	                    	 	 
	6
	 	                    	 	 
	7
	 	                    	 	 
	8
	 	                    	 	 
	9
	 	                    	 	 

	o	 	Not applicable.

	 	(b)	 	Other Employer Contributions
	 
	 	 	 	The Participant’s vested interest in the amount credited to his Account attributable to
Employer contributions other than Matching Contributions shall be based on the following
schedule:

	 	 	 	 	 
	Years of Service	 	Vesting %	 	 
	0
	 	       100       	 	(insert
‘100’ if there is immediate vesting)
	1
	 	                    	 	 
	2
	 	                    	 	 
	3
	 	                    	 	 
	4
	 	                    	 	 
	5
	 	                    	 	 
	6
	 	                    	 	 
	7
	 	                    	 	 
	8
	 	                    	 	 
	9
	 	                    	 	 

	o	 	Not applicable.

October 2006

 

- 13 -

 

	 	 	 	 	 	 	 	 	 	 	 
	(c)	 	Acceleration of Vesting
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	A Participant’s vested interest in his Account will automatically be 100% upon the
occurrence of the following events: [select the ones that are applicable]:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(i)	 	o	 	Death
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(ii)	 	o	 	Disability
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(iii)	 	o	 	Change in Control
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(iv)	 	o	 	Eligibility for Retirement
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	(v)
	 	o
	 	Other:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(vi)	 	þ	 	Not applicable.
	 
	 	 	 	 	 	 	 	 	 	 
	(d)	 	Years of Service	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(i)	 	A Participant’s Years of Service shall include all service performed for the Employer and
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	o
	 	Shall	 	 	 	 
	 	 	 	 	o	 	Shall Not
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	include service performed for the Related Employer.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	(ii)	 	Years of Service shall also include service performed for the following entities:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(iii)	 Years of Service shall be determined in accordance with (select one)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(A) o	 	The elapsed time method in Treas. Reg. Se(c) 1.410(a)(7)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 		 	(B) o	 	The general method in DOL Reg. Se(c) 2530.200b-1 through b-4
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(C) o	 	The Participant’s Years of Service credited under [insert
	 

	 	 	 	 	 	name of plan]	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	(D) o
	 	Other:	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	(iv)
	 	þ
	 	Not applicable.	 	 	 	 	 	 	 	 

October 2006

 

- 14 -

 

	 	 	 	 	 	 	 
	8.01	 	UNFORESEEABLE
EMERGENCY
	 
	 	 	 	 	 	 
	 	 	(a)	 	A withdrawal due to an Unforeseeable Emergency as defined in Section 2.24:
	 
	 	 	 	 	 	 
	 

	 	 	 	 þ
	 	Will
	 

	 	 	 	 o
	 	Will Not [if Unforeseeable Emergency withdrawals are not
permitted, proceed to Section 9.01]
	 
	 	 	 	 	 	 
	 	 	 	 	be allowed.
	 
	 	 	 	 	 	 
	 	 	(b)	 	Upon a withdrawal due to an Unforeseeable Emergency, a Participant’s deferral
election for the remainder of the Plan Year:
	 
	 	 	 	 	 	 
	 

	 	 	 	 o
	 	Will
	 

	 	 	 	 o
	 	Will not
	 

	 	 	 	 þ
	 	Not applicable
	 
	 	 	 	 	 	 
	 	 	 	 	be cancelled.

October 2006

 

- 15 -

 

	 	 	 	 	 	 	 
	9.01	 	INVESTMENT
DECISIONS
	 
	 	 	 	 	 	 
	 	 	Investment decisions regarding the hypothetical amounts credited to a Participant’s
Account shall be made by [select one]:
	 
	 	 	 	 	 	 
	 

	 	(a)
	 	o
	 	The Participant or his Beneficiary
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	þ
	 	 The Employer
	 
	 	 	 	 	 	 
	 	 	Investment options are set forth in Appendix (A)

October 2006

 

- 16 -

 

	 	 	 	 	 	 	 
	10.01	 	GRANTOR TRUST
	 
	 	 	 	 	 	 
	 	 	The Employer [select one]:
	 
	 	 	 	 	 	 
	 

	 	 o
	 	Does	 	 
	 	 	 þ	 	 Does Not
	 
	 	 	 	 	 	 
	 	 	intend to establish a grantor trust in connection with the Plan.

October 2006

 

- 17 -

 

	 	 	 	 	 	 	 
	11.01	 	TERMINATION UPON
CHANGE IN CONTROL
	 
	 	 	 	 	 	 
	 	 	The Plan Sponsor
	 
	 	 	 	 	 	 
	 	 	þ	 	Reserves
	 	 	o	 	Does Not Reserve
	 
	 	 	 	 	 	 
	 	 	the right to terminate the Plan and distribute all vested amounts credited to Participant
Accounts upon a Change in Control as described in Section 9.7.
	 
	 	 	 	 	 	 
	11.02	 	AUTOMATIC
DISTRIBUTION UPON CHANGE IN CONTROL
	 
	 	 	 	 	 	 
	 	 	Distribution of the remaining vested balance of each Participant’s Account
	 
	 	 	 	 	 	 
	 

	 	 	 	o
	 	Shall
	 

	 	 	 	þ
	 	Shall Not
	 
	 	 	 	 	 	 
	 	 	automatically be paid as a lump sum payment upon the occurrence of a Change in Control as
provided in Section 9.7.

	 	 	 	 	 	 	 
	11.03	 	CHANGE IN
CONTROL
	 
	 	 	 	 	 	 
	 	 	A Change in Control for Plan purposes includes the following:
	 
	 	 	 	 	 	 
	 

	 	(a)
	 	þ
	 	A change in the ownership of the Employer as described in Section 9.7(c)
of the Plan.
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	þ
	 	A change in the effective control of the Employer as described in Section
9.7(d) of the Plan.
	 
	 	 	 	 	 	 
	 

	 	(c)
	 	þ
	 	A change in the ownership of a substantial portion of the assets of the
Employer as described in Section 9.7(e) of the Plan.

October 2006

 

- 18 -

 

	12.01	 	GOVERNING STATE LAW
	 
	 	 	The laws of Texas shall apply in the administration of the Plan to the extent not
preempted by ERISA.

October 2006

 

- 19 -

 

	13.01	 	2005 TRANSITIONAL RULES

The Plan Sponsor has made the following elections regarding the 2005 Transitional Rules set
forth in Section 4.5. The Plan Sponsor must specify default payment elections in 13.01(a)
whether or not the new payment elections are permitted.

	 	 	 	 	 	 	 	 	 	 	 
	 
	(a)	 	New Payment Elections described in Section 4.5(a) of the Plan	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	þ	 	Will Be Permitted until
12/31/2006 as described in Appendix B.
	 	 	o	 	Will Not Be Permitted
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	The default payment elections will be:	 	 
	 
	 	 	Lump sum upon separation from service.	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	(b)	 	Elections to terminate participation or cancel an outstanding election as described in Section 4.5(b) of the Plan	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	Will	 	 	 	 	 	 
	 

	 	þ
	 	Will Not	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	be permitted.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	(c)	 	Prospective Deferral Elections as described in Section 4.5(c) of the Plan	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	Will	 	 	 	 	 	 
	 

	 	þ
	 	Will Not	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	be permitted.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Only a plan in existence on or before December 31, 2004 may offer Prospective Deferral Elections.	 	 

	13.02	 	2006 TRANSITIONAL RULE

New payment elections as described in Section 4.6 of the Plan

	 	 	 
	þ

	 	Will Be Permitted until 12/31/2006 as described in Appendix B.
	o

	 	Will Not Be Permitted

October 2006

 

- 20 -

 

EXECUTION PAGE

The Plan Sponsor has caused this
Adoption Agreement to be executed this

14th day of December, 2006.

	 	 	 	 	 	 	 
	 

	 	PLAN SPONSOR:
	 	Diamond
Offshore Management Company

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/
William C. Long

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President

	 	 

October 2006

 

- 21 -

 

APPENDIX
A

INVESTMENT
OPTIONS

	 	 	 	 
	 
	 
	 

	 
Fund Name
	 
	 
	Fund Number

	 	 	 
	Ø Interest Credit Fund
	 	 	Ø UN2X
	 
	 
	 
	 

	Ø
	 	 	Ø
	 
	 
	 
	 

	Ø
	 	 	Ø
	 
	 
	 
	 

	Ø
	 	 	Ø
	 
	 
	 
	 

	Ø
	 	 	Ø
	 
	 
	 
	 

	Ø
	 	 	Ø
	 
	 
	 
	 

	Ø
	 	 	Ø
	 
	 
	 
	 

	Ø
	 	 	Ø
	 
	 
	 
	 

	Ø
	 	 	Ø
	 
	 
	 
	 

	Ø
	 	 	Ø
	 
	 
	 
	 

	Ø
	 
	 
	Ø

	 	 	 
	Note:

	 	Participant Accounts in the Interest Credit Fund maintained for the Plan shall be
adjusted to reflect hypothetical interest during each Plan Year based on the Moody’s Aa Long Term
Corporate Bond Yield Average as of the last business day of the month of November of the
immediately preceding Plan Year.

	 	 	 
	 

	 	Date Effective:

October 2006

 

- 22 -

 

APPENDIX B

SUMMARY OF GRANDFATHERED PROVISIONS

Notwithstanding any other provision of the Plan, amounts described in Section 1.3 of the Base
Plan Document that are earned and vested on December 31, 2004 shall be grandfathered under the
pre-409A provisions of the Diamond Offshore Management Company Deferred Compensation and
Supplemental Executive Retirement Plan through December 31, 2006. On and after January 1, 2007
amounts that were earned and vested on December 31, 2004 and earnings thereon shall no longer be
grandfathered and shall be subject to new payment elections as to time and form of payment that are
to be made by December 31, 2006 in accordance with transition relief provided by IRS in proposed
regulations issued September 29, 2005 and later amended. A single election as to time and form of
payment shall be applicable with respect to the amounts deferred prior to December 31, 2004
together with amounts deferred during 2005, and amounts deferred during 2006, and all earnings
thereon.

October 2006

 

- 23 -

 

APPENDIX C

SPECIAL EFFECTIVE DATES

October 2006

 

- 24 -

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