Document:

Exhibit
4.2

 

EMERGENCY MEDICAL SERVICES
CORPORATION

 

PHYSICIAN STOCK PURCHASE PLAN

 

1.             Purpose of the PSPP.  This Physician Stock Purchase Plan (the “PSPP”)
is a sub-plan of the Company’s Second Amended and Restated Long-Term Incentive
Plan (the “Plan”).  The purpose of the
PSPP is to specify the terms pursuant to which certain Physician Service
Providers (as hereinafter defined) will be granted Stock Awards under the Plan
in the form of the right to purchase Common Stock through compensation
deductions.  The PSPP is not intended to
constitute an “employee stock purchase plan,” as that term is defined in Section 423(b) of
the Code.  The terms of the PSPP shall be
subject at all times to the terms of the Plan and shall be deemed a part of the
Plan.  Capitalized terms not otherwise
defined herein shall have the meanings ascribed to them under the Plan.

 

2.             Definitions.

 

“Change in Control”
means the happening of any of the events that would constitute a “Change in
Control” under the Award Agreements evidencing grants made pursuant to the
Plan.

 

“Compensation”
means the signing and retention bonus paid to a Physician Service Provider by
the Company, as reported on a Physician Service Provider’s Form W-2 or
1099, as applicable.  The Committee may,
in its discretion, and from time to time, permit additional forms of
compensation (i.e., in addition to signing and
retention bonuses) to be eligible Compensation for purposes of this PSPP.

 

“Continuous Status as a
Physician Service Provider” means the absence of any interruption or
termination of service as a Physician Service Provider.  Continuous Status as a Physician Service
Provider shall not be considered interrupted in the case of (i) sick
leave, (ii) military leave, (iii) any other leave of absence approved
by the Company, provided that such leave is for a period of not more than
ninety (90) days, unless reemployment upon the expiration of such leave is
guaranteed by contract or statute, or unless provided otherwise pursuant to
Company policy adopted from time to time, or (iv) in the case of transfers
between locations of the Company or between the Company and its subsidiaries.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time.

 

“Expiration Date”
means the last day of an Offering as designated by the Committee, which, in any
event, shall not be more than six (6) months after the Grant Date.

 

“Grant Date”
means the first business day of each Purchase Period of the PSPP.

 

“Offering” means
the grant of Purchase Rights under the PSPP.

 

“Physician Contractor”
means an Eligible Independent Contractor as defined under the Plan or an
Eligible PA Employee as defined under the Plan, in each instance who is
performing services as a physician.

 

 

“Physician Employee”
means an Eligible Employee as defined under the Plan, who is employed by the
Company or one of its subsidiaries as a physician.

 

“Physician Service Provider”
means a Physician Employee or Physician Contractor.

 

“Purchase Period”
means the period of an Offering beginning on the Grant Date and ending on the
Expiration Date.

 

“Purchase Rights”
means rights to purchase shares of Common Stock under the Plan on the terms or
conditions set forth herein and under the Plan and as determined by the
Committee.

 

3.             Administration of the PSPP.

 

(a)           The Committee shall administer the PSPP in a manner consistent with the
terms of the Plan.

 

(b)           The Committee shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:

 

(i)            To determine when and how Purchase Rights to purchase shares of Common
Stock shall be granted and the provisions of each Offering of such Purchase
Rights (which need not be identical).

 

(ii)           To construe and interpret the PSPP and Purchase Rights granted under the
PSPP, and to establish, amend and revoke rules and regulations for the
administration of the PSPP.  The
Committee, in the exercise of this power, may correct any defect, omission or
inconsistency in the Plan (including the PSPP), in a manner and to the extent
it shall deem necessary or expedient to make the Plan (including the PSPP)
fully effective.

 

(iii)          The Committee may adopt any sub-plans applicable to residents of any
specified foreign jurisdiction as it deems necessary or appropriate in order to
comply with or take advantage of any applicable tax or other laws in such
jurisdiction or to otherwise facilitate the administration of the PSPP.

 

4.             Participation in the PSPP.  The individuals who shall be eligible to
receive grants of Purchase Rights under an Offering shall be all Physician
Service Providers selected by the Committee to participate in an Offering and
who are so employed or engaged by the Company, its subsidiaries, or any other
entity permitted to employ or engage Physician Service Providers under the
terms of the Plan, on the Grant Date of such Offering and who are to receive
Compensation which is eligible for deduction under this PSPP.  Notwithstanding the foregoing, unless
otherwise provided by the Committee, a Physician Service Provider shall not be
eligible to be granted Purchase Rights in an Offering unless, on the Grant
Date, such Physician Service Provider has been in the employ of or otherwise
engaged by the Company, its subsidiaries, or any other entity permitted to
employ or engage Physician Service Providers under the terms of the Plan, for
such continuous period preceding such Offering Date as the Committee may
require.

 

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5.             Stock.

 

(a)           Subject to adjustment in accordance with the provisions of Article XII
of the Plan, the total number of shares of Common Stock which may be the
subject of Offerings under the PSPP portion of the Plan shall not exceed in the
aggregate 200,000 shares, which shall be available from the shares authorized
under Section 4.1 of the Plan.

 

(b)           In the event that any shares of Common Stock, which are the subject of
an Offering, are not purchased, such unpurchased shares of Common Stock may
again be available for subsequent Offerings.

 

6.             Number of Shares That a Physician Service Provider May Purchase.

 

(a)           Generally, a Physician Service Provider shall be permitted to make
Compensation deductions of up to $5,000 under an Offering.  The Committee may increase or decrease such
limit in its sole discretion in any Offering. 
An eligible Physician Service Provider may elect to purchase through
Compensation deductions under an Offering a number of whole shares of Common
Stock as may be purchased with his or her Compensation deductions.

 

(b)           The number of whole shares of Common Stock that a participating
Physician Service Provider may purchase on the Expiration Date shall be
determined by dividing such Physician Service Provider’s contributions
accumulated prior to such Expiration Date and retained in such Physician
Service Provider’s account as of the Expiration Date by the applicable purchase
price; provided, however, that such purchase shall be subject to the
limitations set forth in this Section 6.

 

7.             Participation.

 

(a)           An eligible Physician Service Provider selected by the Committee to
participate in an Offering may become a participant in such Offering by
completing a subscription agreement and any other required documents provided
by the Company and submitting them in the form and manner designated by the
Company.

 

(b)           Unless otherwise determined by the Company, Compensation deductions in
respect of an Offering shall commence on the first full payroll period
beginning on or after the Grant Date of such Offering and shall end on the last
payroll period ending prior to the Expiration Date of such Offering (or, if
earlier, as of the date a Physician Service Provider’s applicable Compensation
which is eligible for deductions hereunder and payable for the Purchase Period
is paid in full), unless sooner terminated by the participating Physician Service
Provider as provided in Section 10.

 

8.             Method of Payment of Contributions.

 

(a)           A participating Physician Service Provider shall elect to have
Compensation deductions made on each payday during the Offering (or, in a
single sum amount if his or her eligible Compensation for the Purchase Period
is paid in a single lump sum), up to the maximum amount specified in Section 6,
or such other amount 

 

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specified by the
Committee for such Offering, of such participating Physician Service Provider’s
Compensation during the Offering.  All
deductions made by a participating Physician Service Provider shall be credited
to his or her account under the PSPP.  A
participating Physician Service Provider may not make any additional payments
into such account.

 

(b)           A participating Physician Service Provider may discontinue his or her
participation in an Offering under the PSPP as provided in Section 10.

 

9.             Exercise of Purchase Rights.  Unless a participating Physician Service
Provider withdraws from an Offering under the PSPP as provided in Section 10,
his or her right to purchase whole shares in any Offering will be exercised
automatically on each Expiration Date of an Offering, and the maximum number of
whole shares subject to the Purchase Right will be purchased at the applicable
purchase price with the accumulated contributions in his or her account.

 

10.           Voluntary Withdrawals; Termination of Service.

 

(a)           Prior to each Offering, the Committee shall determine, in its sole
discretion, whether and when a participating Physician Service Provider may
withdraw all but not less than all the contributions credited to his or her
account under an Offering prior to the Expiration Date of such Offering by
notifying the Company in the form and manner designated by the Company.  To the extent that such a withdrawal is
permitted, all of the withdrawing participating Physician Service Provider’s
contributions credited to his or her account will be paid to him or her without
interest not later than sixty (60) days after receipt of his or her notice of
withdrawal and his or her Purchase Right for the then current Offering will be
automatically terminated, and no further contributions for the purchase of
Common Stock will be permitted or made during the Offering.

 

(b)           Upon termination of the participating Physician Service Provider’s
Continuous Status as a Physician Service Provider prior to the Expiration Date
of an Offering for any reason, whether voluntary or involuntary, including
retirement or death, the contributions credited to his or her account will be
returned to him or her or, in the case of his or her death, to the Physician
Service Provider’s beneficiary or estate, as applicable, and his or her
Purchase Right will be automatically terminated.

 

(c)           A participating Physician Service Provider’s withdrawal from an Offering
will not have any effect upon his or her eligibility to participate in a
succeeding Offering or in any similar plan that may hereafter be adopted by the
Company.

 

11.           Terms and Conditions of Offerings.

 

(a)           General:

 

The Offerings shall be made to such Physician
Service Providers, and in such form, as the Committee shall from time to time
approve, and shall contain such terms and conditions as the Committee shall prescribe
not inconsistent with the Plan.

 

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(b)           Maximum Number of Shares:

 

The Committee may specify a maximum number of
shares of Common Stock that may be purchased by any participating Physician
Service Provider during an Offering, and in connection with each Offering made
may specify a maximum aggregate number of shares of Common Stock that may be
purchased by all participating Physician Service Providers pursuant to such
Offering.  If the aggregate purchase of
shares of Common Stock issuable upon exercise of Purchase Rights granted under
the Offering would exceed any such maximum aggregate number, then, in the
absence of any Committee action otherwise, a pro rata allocation of the shares
of Common Stock available shall be made in as nearly a uniform manner as shall
be practicable and equitable.

 

(c)           Purchase Price:

 

The purchase price per share will be established by
the Committee for each Offering but in no event will the purchase price per
share be less than fifty (50%) of the lower of the Fair Market Value of a share
of Common Stock on the Grant Date and the Expiration Date.

 

(d)           Term of Offerings:

 

Each Offering shall commence on the Grant Date and
terminate, subject to earlier termination by the Committee, on the Expiration
Date.

 

(e)           Physician Service Provider’s Purchase Directions:

 

Each Offering shall provide that the participating
Physician Service Provider at the conclusion of the Purchase Period may
purchase all of the whole shares purchasable in such Offering with the
contributions credited to such Physician Service Provider’s account unless such
Physician Service Provider shall, in the manner provided for in the Offering,
notify the Company as set forth in Section 10 that the Physician Service
Provider does not desire to purchase any of such shares.

 

(f)            Change in Control:

 

In the event of a Change in Control, then:  (i) any surviving or acquiring
corporation may continue or assume Purchase Rights outstanding under the Plan
or may substitute similar rights (including a right to acquire the same
consideration paid to stockholders in the Change in Control) for those
outstanding under the PSPP, or (ii) if any surviving or acquiring
corporation does not assume such Purchase Rights or does not substitute similar
rights for Purchase Rights outstanding under the PSPP, then the Committee, in
its sole discretion may (x) close the Purchase Period early and permit the
participants’ accumulated payroll deductions to be used to purchase shares of
Common Stock immediately prior to the Change in 

 

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Control under the ongoing Offering, and the
participants’ Purchase Rights under the ongoing Offering shall terminate
immediately after such purchase; or (y) terminate such Offering and refund
the participants’ accumulated payroll deductions.

 

(g)           Assignability:

 

No rights hereunder shall be assigned, transferred,
pledged or otherwise disposed of in any way by a participant other then by will
or the laws of descent and distribution; provided, however, that shares of
Common Stock purchased on behalf of a participant and left in his or her
account under the PSPP shall be subject to his or her absolute control.  Any alleged transfer, pledge or other
disposition shall be void and without effect.

 

(h)           Physician Service Provider’s Agreement:

 

If, at the time of the purchase of shares which are
covered by Purchase Rights under an Offering, in the opinion of counsel for the
Company, it is necessary or desirable, in order to comply with any applicable
laws or regulations relating to the sale of securities, that the Physician
Service Provider purchasing such shares shall agree that such Physician Service
Provider will purchase such shares for investment and not with any present
intention to resell the same, the Physician Service Provider will, upon the
request of the Company, execute and deliver to the Company an agreement to such
effect.  The Company may also require
that a legend setting forth such investment intention be stamped or otherwise
written on the certificates for shares purchased pursuant to the PSPP.

 

(i)            Rights as a Stockholder:

 

A Physician Service Provider who has been granted
Purchase Rights hereunder shall have no rights as a stockholder with respect to
shares covered by such Purchase Rights until the date of the issuance of the
shares to the Physician Service Provider. 
No adjustment will be made for dividends or other rights for which the
record date is prior to the date of such issuance.  For purposes of the PSPP, the Company, in
lieu of the issuance of certificates, may utilize a book entry account system
for recording ownership of shares of Common Stock, subject to the rules generally
applicable to such system.

 

(j)            Interest:

 

No interest shall accrue on payroll deductions made
under or pursuant to the PSPP or any Offering hereunder.

 

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(k)           Compliance with Laws:

 

This PSPP is intended to comply in all respects
with applicable law and regulations, including, (i) with respect to
participants who are officers or directors for purposes of Section 16 of
the Exchange Act, Rule 16b-3 of the Securities and Exchange Commission, if
applicable and (ii) Code Section 409A (or otherwise be exempt from
Code Section 409A).  In no event whatsoever
shall the Company be liable for any additional tax, interest or penalty that
may be imposed on a participant by Code Section 409A or damages for
failure to comply with or be exempt from Code Section 409A.  In case any one or more provisions of this
PSPP shall be held invalid, illegal, or unenforceable in any respect under
applicable law and regulation, the validity, legality, and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby
and the invalid, illegal, or unenforceable provision that could be deemed null
and void shall first be construed, interpreted, or revised retroactively to
permit this PSPP to be construed in compliance with all applicable law, so as
to foster the intent of this PSPP. 
Notwithstanding anything herein to the contrary, with respect to
participants who are officers and directors for purposes of Section 16(b) of
the Exchange Act, and if required to comply with the rules promulgated
thereunder, such participants shall not be permitted to direct the sale of any
Common Stock purchased hereunder until at least six (6) months have
elapsed from the date of purchase, unless the Committee determines that the
sale of the Common Stock otherwise satisfies the then current Rule 16b-3
requirements.

 

12.           Term of PSPP.  No grant of Purchase Rights shall be made
before the approval of the PSPP by the Company’s Board, or after the earliest
of (a) the day before the tenth anniversary of such approval, (b) all
Common Stock subject to the PSPP has been issued, or (c) the Board
terminates the PSPP pursuant to Section 13.

 

13.           Amendments and Termination PSPP.  The PSPP is wholly discretionary in
nature.  As such, the Board may, in its
sole discretion, from time to time alter, amend, suspend, or terminate the PSPP
or alter or amend any and all Purchase Rights or terminate any Offering;
provided, however, that no such action of the Board may, without the approval
of the stockholders, make any amendment for which stockholder approval is
necessary to comply with any tax or regulatory requirement with which the
Committee has determined it is necessary or advisable to have the Company
comply.  Subject to the limitations in
this Section 13 relating to stockholder approval, the Committee may, in
its sole discretion, make such amendment or modification to the PSPP or any
Purchase Rights granted hereunder as is necessary or desirable to comply with,
or effectuate administration of, the PSPP under the laws, rules or
regulations of any foreign jurisdiction, the laws of which may be applicable to
the PSPP or its participants hereunder.

 

14.           Application of Funds.  The proceeds received by the Company from the
sale of the Common Stock pursuant to an Offering will be used for general
corporate purposes.

 

7Exhibit 4.1

 

EMERGENCY MEDICAL SERVICES
CORPORATION

 

DEFERRED COMPENSATION PLAN

 

 

ARTICLE 1

PURPOSE

 

In recognition of the services provided by certain
key employees, Emergency Medical Services Corporation, a Delaware corporation,
has adopted the Emergency Medical Services Corporation Deferred Compensation
Plan, effective as of June 30, 2010, to make additional retirement
benefits and increased financial security available on a tax-favored basis to
those individuals.  The Plan is intended
to be a nonqualified deferred compensation plan that complies with the
provisions of Code Section 409A. 
The Plan is intended to be an unfunded plan maintained primarily for the
purpose of providing deferred compensation benefits for a select group of
management or highly compensated employees.

 

ARTICLE 2

DEFINITIONS

 

“Affiliate” means: (a) any firm,
partnership, or corporation that directly or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with the
Company; (b) any other organization similarly related to the Company that
is designated as such by the Company; and (c) any other entity 50% or more
of the economic interests in which are owned, directly or indirectly, by the
Company.

 

“Beneficiary” means the person or persons
designated as such in accordance with Section 7.3.

 

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

 

“Change of Control” means a change in the
ownership or effective control of the Company, or in the ownership of a
substantial portion of the assets of the Company, within the meaning of Code Section 409A
and the regulations and Internal Revenue Service guidance issued thereunder.

 

“Class Year Distribution Account(s)”
means, with respect to a Participant for each Plan Year, the Class Year
Distribution Account established on the books of account of the Company,
pursuant to Section 5.1, for that Participant.

 

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

 

“Committee” means the Emergency Medical
Services Corporation Deferred Compensation Plan Committee, appointed from time
to time by the Company.

 

“Company” means Emergency Medical Services
Corporation, a Delaware corporation.

 

“Compensation” means, for any Eligible
Employee, the cash remuneration for services payable by the Employer with respect
to a Plan Year, but excluding (even if includible in gross income)
reimbursements or other expense allowances, fringe benefits, moving expenses
and welfare benefits, as determined by the Company from time to time and
communicated to Eligible Employees.

 

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“Disability” means a disability within the
meaning of Code Section 409A(a)(2)(C) and the regulations issued
thereunder.

 

“Disabled” means having a Disability.  The determination of whether a Participant is
Disabled shall be made by the Plan Administrator, whose determination shall be
conclusive.

 

“Discretionary Company Credit” means a
credit to the Participant’s Class Year Distribution Account by the Company
pursuant to Section 4.3 of the Plan.

 

“Earnings Crediting Options” means the
deemed investment options selected by the Participant from time to time
pursuant to which deemed earnings or losses are credited or debited, as the
case may be, to the Participant’s Class Year Distribution Accounts.

 

“Effective Date” means June 30, 2010.

 

“Eligible Employee” means an Employee who
has been determined and designated by the Compensation Committee to be eligible
to participate in the Plan.

 

“Employee” means any individual employed by
the Employer on a regular, full-time basis (in accordance with the personnel
policies and practices of the Employer), including citizens of the United
States employed outside of their home country and resident aliens employed in
the United States; provided, however,
that to qualify as an “Employee” for purposes of the Plan, the individual must
be a member of a “select group of management or highly compensated employees”
within the meaning of Sections 201, 301 and 401 of ERISA; provided further, that the following
individuals shall not be eligible to participate in the Plan:  (a) individuals who are not classified
by the Employer as its employees, even if they are retroactively
recharacterized as employees by a third party or the Employer, (b) individuals
for whom the Employer does not report wages on Form W-2 or who are not on
an employee payroll of the Employer, and (c) individuals who have entered
into an agreement with the Employer which excludes them from participation in
employee benefit plans of the Employer (whether or not they are treated or
classified as employees for certain specified purposes that do not include
eligibility in the Plan).

 

“Employer” means the Company, as well as
each Affiliate identified in Appendix A as may from time to time participate in
the Plan by or pursuant to authorization of the Company.

 

“Enrollment Agreement” means the
authorization form which an Eligible Employee files with the Plan Administrator
or its designee to participate in the Plan, including, without limitation, one
that is completed and/or sent electronically in a manner specified by the Plan
Administrator.

 

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

 

“Participant” means an Eligible Employee who
has filed a completed and executed Enrollment Agreement with the Plan
Administrator or its designee and is participating 

 

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in the Plan in accordance with the provisions of Article 4.  In the event of the death or incompetency of
a Participant, the term shall mean his or her personal representative or
guardian.  An individual shall remain a
Participant until that individual has received full distribution of any vested
amount credited to the Participant’s Class Year Distribution Account(s).

 

“Plan” means the Emergency Medical Services
Corporation Deferred Compensation Plan, as amended from time to time.

 

“Plan Administrator” means the Committee.

 

“Plan Year” means the 12-month period
beginning on each January 1 and ending on the following December 31.  The initial Plan Year shall be June 30,
2010 to December 31, 2010.

 

“Retirement” means a Participant’s
separation from Service with the Employer (other than on account of death)
after attaining age 55 and completing at least ten (10) years of Service.

 

“Service” means the period of time during
which an employment relationship exists between an Employee and the Employer,
including any period during which the Employee is on an approved leave of
absence, whether paid or unpaid.  “Service”
shall not be deemed to have ceased if an Employee transfers directly between
the Employer and an Affiliate.  A
determination of whether “Service” has ceased shall be made in a manner
consistent with the default rules under the Code Section 409A
regulations.

 

“Subsequent Election” means an election made
by a Participant in accordance with Section 4.1(d).

 

“Unforeseeable Emergency” means a severe
financial hardship to the Participant resulting from an illness or accident of
the Participant, the Participant’s spouse, or a dependent (as defined in Code Section 152(a))
of the Participant, loss of the Participant’s property due to casualty, or
other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant.

 

ARTICLE 3

ADMINISTRATION OF THE PLAN AND DISCRETION

 

3.1.          The Committee, as Plan Administrator, shall have full power and
authority to interpret the Plan, to prescribe, amend and rescind any rules,
forms and procedures as it deems necessary or appropriate for the proper
administration of the Plan and to make any other determinations and to take any
other such actions as it deems necessary or advisable in carrying out its
duties under the Plan.  All action taken
by the Plan Administrator arising out of, or in connection with, the administration
of the Plan or any rules adopted thereunder, shall, in each case, lie
within its sole discretion, and shall be final, conclusive and binding upon the
Company, the Board, all Employers, all Employees, all Participants, all
Beneficiaries and all persons and entities having an interest therein.  The Committee, may, however, delegate to any
person or 

 

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entity any of its powers or duties under the
Plan.  To the extent of any such
delegation, the delegate shall become the Plan Administrator responsible for
administration of the Plan, and references to the Plan Administrator shall
apply instead to the delegate.  Any
action by the Committee assigning any of its responsibilities to specific
persons who are directors, officers, or employees of the Company shall not
constitute delegation of the Committee’s responsibility but rather shall be
treated as the manner in which the Committee has determined internally to
discharge such responsibility.

 

3.2.          The Plan Administrator shall serve without compensation for its services
unless otherwise determined by the Board. 
All expenses of administering the Plan shall be paid by the Company.

 

3.3.          The Company shall indemnify and hold harmless the Plan Administrator and
the members thereof from any and all claims, losses, damages, expenses
(including counsel fees) and liability (including any amounts paid in
settlement of any claim or any other matter with the consent of the Board)
arising from any act or omission of such member, except when the same is due to
gross negligence or willful misconduct.

 

3.4.          Any decisions, actions or interpretations to be made under the Plan by
the Company, the Board, any Employer or the Plan Administrator shall be made in
its respective sole discretion, not as a fiduciary, and need not be uniformly
applied to similarly situated individuals and shall be final, binding and
conclusive on all persons interested in the Plan.

 

3.5.          Upon
a Change in Control, the Committee, as constituted immediately prior to such
Change in Control, shall continue to act as the Committee. The individual who
was the Chief Executive Officer of the Company (or if such person is unable or
unwilling to act, the next highest ranking officer) prior to the Change in
Control shall have the authority (but shall not be obligated) to appoint an
independent third party to act as the Committee.

 

Upon such Change in Control, the Company may not
remove the Committee, unless 2/3rds of the members of the Board of Directors of
the Company and a majority of Participants and Beneficiaries with Account
Balances consent to the removal and replacement Committee. Notwithstanding the
foregoing, neither the Committee nor the officer described above shall have
authority to direct investment of trust assets under any rabbi trust described
in Section 7.10.

 

The participating Employer shall, with respect to
the Committee identified under this Section: (i) pay all reasonable
expenses and fees of the Committee; (ii) indemnify the Committee
(including individuals serving as Committee) against any costs, expenses and
liabilities including, without limitation, reasonable attorneys’ fees and
expenses arising in connection with the performance of the Committee hereunder,
except with respect to matters resulting from the Committee’s gross negligence
or willful misconduct; and (iii) supply full and timely information to the
Committee on all matters related to the Plan, any rabbi trust, Participants,
Beneficiaries and Accounts as the Committee may reasonably require.

 

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ARTICLE 4

PARTICIPATION

 

4.1.          Election to Participate.

 

(a)           Eligibility and Timing of Election to Participate.  Any Eligible Employee may
enroll in the Plan effective as of the first day of a Plan Year by filing a
completed and fully executed Enrollment Agreement with the Plan Administrator
by a date set by the Plan Administrator.

 

(i)            Filing of Enrollment Agreement.  Subject to clause (iii) below, an
executed Enrollment Agreement must be filed by December 31 of the Plan
Year preceding the Plan Year in which such Compensation is to be earned (and by
June 30 preceding the initial Plan Year), or such other time as may be
established by the Plan Administrator; provided,  however, that all deferral elections under the Plan must be
made at a time that is permitted under applicable law, including, without
limitation, Code Section 409A.

 

(ii)           Revocation of Election.  Except as otherwise provided in Section 6.6(a),
deferral elections for a Plan Year are irrevocable.

 

(iii)          Continuation of Election.  In the event a Participant who has filed an
executed Enrollment Agreement for a Plan Year does not file a new Enrollment
Agreement for the following Plan Year(s), such Participant’s then current
deferral election shall continue in effect until the last day of the Plan Year
in which the Participant does make a new deferral election in accordance with
this Section 4.1.

 

(b)           Amount of Deferral.  Pursuant to the Enrollment Agreement, the
Eligible Employee shall irrevocably elect the percentage by which (as a result
of payroll deduction) the Participant’s Compensation will be deferred for the
Plan Year.  Each Participant’s Enrollment
Agreement shall designate separately the percentage of Compensation to be taken
from the Participant’s base salary for the Plan Year; and the percentage to be
taken from the Participant’s short term incentive compensation, long term
incentive compensation and any other incentive compensation approved by the
Company for the Plan Year and whether to defer any refund to the Participant of
401(k) contributions made to the Retirement Savings Plan.  Subject to the following sentence, the amount
that may be deferred is any whole percentage of the Participant’s Compensation;
provided, however, that deferrals
will be made after required payroll tax deductions and any deductions elected
by the Participant (including, but not limited to, deductions for payment for
medical and other benefit coverages). 
The Plan Administrator may establish maximum and/or minimum amounts
and/or percentages that may be deferred under this Section 4.1 and
may change such standards from time to time. 
Any such maximum or minimum shall be communicated by the Plan
Administrator to the Participants prior to the date by which Participants must
submit an Enrollment Agreement with respect to the Plan Year for the type of
Compensation to which the maximum or minimum applies.

 

(c)           Timing and Form of Payment of Distribution from Accounts.  At the time that a Participant
makes a deferral election with respect to a Plan Year, the Participant shall
designate the time and form in which such deferral and any Discretionary
Company Credit 

 

6

 

made for such Plan Year (and notional earnings and
losses thereon) shall be distributed; provided, however,
that all Enrollment Agreements filed by an Eligible Employee must provide for
distribution to be made at a time and in a form that is consistent with the
distribution options made available under the Plan and permitted under
applicable law, including, without limitation, Code Section 409A.  An election with respect to the time and form
of benefit distributions may not be changed, except as expressly provided for
herein.  In the event the Participant
fails to make a valid election of the form of payment, the distribution will be
made in a lump sum at the time required hereunder.

 

(d)           Subsequent Elections.  Each Participant who has made an election to
defer Compensation may make a Subsequent Election to further defer the time of
payment and/or change the form of payment for one or more of such Participant’s
Class Year Distribution Accounts. 
No such Subsequent Election shall be valid unless it is made 12 months
prior to the previously scheduled payment date applicable to such Distribution
Account and the payment commencement date is deferred for not less than five (5) years
from the previously scheduled payment date. 
In the event of the Participant’s separation from Service with the
Company prior to the expiration of 12 months from the date the Subsequent
Election is made, the Subsequent Election shall be of no effect.  For purposes of this subsection, a series of
installment payments shall be considered a single payment.

 

(e)           Vesting.  All Compensation deferred by Participants
under this Section 4.1, and any deemed earnings and losses thereon,
shall be fully and immediately vested and nonforfeitable.

 

4.2.          Filing of Elections by New Eligible Employees.  The Plan Administrator may, in
its discretion, permit an Employee who first becomes an Eligible Employee after
the beginning of a Plan Year to enroll in the Plan for that Plan Year by filing
a completed and fully executed Enrollment Agreement, in accordance with Section 4.1,
as soon as practicable following the date the Employee becomes an Eligible
Employee but, in any event, not later than 30 days after such date.  Notwithstanding the foregoing, however, any
election by an Eligible Employee to defer Compensation pursuant to this Section 4.2
shall apply only to such amounts as are earned by the Eligible Employee after
the date on which such Enrollment Agreement is filed.

 

4.3.          Discretionary Company Credits.  The Company may credit a Discretionary
Company Credit under the Plan for a Plan Year. 
Such Discretionary Company Credit, if any, and the amount thereof, will
be credited in the sole and absolute discretion of the Company, and to such
Participants or group(s) or category(ies) of Participants as shall be
determined in the sole and absolute discretion of the Company.  Discretionary Company Credits under this Section 4.3,
if any, and any deemed earnings and losses thereon, shall become vested and
nonforfeitable in accordance with Section 6.2.

 

ARTICLE 5

ALLOCATION TO ACCOUNTS

 

5.1.          Accounts.  For each Participant, the Plan Administrator
shall establish and maintain a Class Year Distribution Account for each
Plan Year.  The amount of Compensation 

 

7

 

deferred for a Plan Year pursuant to Section 4.1
shall be credited by the Company to the Participant’s Class Year
Distribution Account, in accordance with the Participant’s Enrollment
Agreement, as soon as reasonably practicable following the close of the payroll
period or incentive compensation payment date for which the deferred Compensation
would otherwise be payable, as determined by the Plan Administrator in its sole
discretion.  Any amount once taken into
account as Compensation for purposes of the Plan shall not be taken into
account thereafter.  Discretionary
Company Credits, if applicable, pursuant to Section 4.3 for a Plan
Year shall be credited by the Company to each eligible Participant’s Class Year
Distribution Account, in accordance with such Participant’s Enrollment
Agreement, at such time(s) as determined by the Plan Administrator in its
sole discretion.  The Participant’s Class Year
Distribution Account(s) shall be reduced by the amount of payments made by
the Company to the Participant or the Participant’s Beneficiary pursuant to the
Plan.

 

5.2.          Deemed Earnings and Losses on Accounts.

 

(a)           General.  A Participant’s Class Year Distribution
Account(s) shall be credited and debited with deemed earnings and losses
in accordance with the Earnings Crediting Options elected by the Participant
from time to time.  Participants may
allocate their Class Year Distribution Accounts among the Earnings
Crediting Options available under the Plan only in whole percentages of not
less than 1%.

 

(b)           Investment Options.  The deemed rate of return, positive or
negative, credited or debited, as the case may be, under each Earnings
Crediting Option is based upon the actual investment performance of the
investment fund(s) as the Plan Administrator may designate from time to
time, and shall equal the total return of such investment fund net of asset
based charges, including, without limitation and as the Plan Administrator
determines from time to time, money management fees, and fund expenses.  The amount of such deemed investment rate of
return shall be determined by the Plan Administrator and such determination
shall be final and conclusive upon all concerned.  The Plan Administrator reserves the right, on
a prospective basis, to add or delete Earnings Crediting Options.  If a Participant does not make an election of
an Earnings Crediting Option, the Participant’s Class Year Distribution
Account will be allocated to such Earnings Crediting Option(s) as
determined by the Plan Administrator in its sole discretion, and the Plan
Administrator shall be absolved of any liability or responsibility for such
action.

 

5.3.          Earnings Crediting Options.  Notwithstanding that the rates of return
credited or debited to Participants’ Class Year Distribution Accounts
under the Earnings Crediting Options are based upon the actual performance of
the investment options specified in Section 5.2, or such other
investment funds as the Plan Administrator may designate, the Company shall not
be obligated to invest any Compensation deferred by Participants under this
Plan, or any other amounts, in such portfolios or in any other investment
funds.

 

5.4.          Changes in Earnings Crediting Options.  A Participant may change the Earnings
Crediting Options to which the Participant’s Class Year Distribution
Accounts are deemed to be allocated, subject to such rules and limitations
as may be determined by the Plan Administrator. 
Each such change may include (a) reallocation of the Participant’s
existing Class Year Distribution Account(s) in whole percentages of
not less than 1%, and/or (b) change in 

 

8

 

investment allocation of amounts to be credited to
the Participant’s Class Year Distribution Account(s) in the future,
as the Participant may elect.  The effect
of a Participant’s change in Earnings Crediting Options shall be reflected in the
Participant’s Class Year Distribution Account(s) at such time
following the Plan Administrator’s receipt of notice of such change as shall be
determined by the Plan Administrator in its sole discretion.

 

5.5.          Valuation of Accounts.  Except as otherwise provided in Section 5.7,
the value of a Participant’s Class Year Distribution Account(s) as of
any date shall equal the amounts theretofore credited or debited to such
Distribution Account(s), including any earnings or losses (positive or
negative) deemed to be earned on such Distribution Account(s) in
accordance with Section 5.2 through the day preceding such date,
less the amounts theretofore deducted from such Distribution Account(s).

 

5.6.          Statement of Accounts.  The Plan Administrator shall provide to each
Participant, not less frequently than annually, a statement in such form as the
Plan Administrator deems appropriate setting forth the balance standing to the
credit of each Participant in each of his or her Class Year Distribution
Accounts.

 

5.7.          Distributions from Accounts.

 

(a)           For purposes of any provision of the Plan relating to distribution of
benefits to Participants or Beneficiaries, the value of a Participant’s Class Year
Distribution Account(s) shall be determined as of a date as soon as reasonably
practicable preceding the distribution date, as determined by the Plan
Administrator in its sole discretion.  In
the case of any benefit payable in the form of a single lump-sum payment, the
value of a Participant’s Class Year Distribution Account(s), as determined
pursuant to this Article 5, shall be distributed.  In the case of any benefit payable in the
form of annual installments, as of any payment date, the amount of each
installment payment shall be determined as the quotient of (x) the value of
the Participant’s Class Year Distribution Account subject to distribution,
as determined pursuant to this Article 5, divided by (y) the
number of remaining annual installments immediately preceding the payment date.

 

(b)           In the case of any benefit payable in the form of annual installments
upon Retirement, the initial installment will be paid on the first day of the
first month that is more than six (6) months after such Retirement.  Subsequent installments will be valued on the
next following December 31 and each December 31 thereafter, and shall
be paid in the January next following each such December 31.

 

(c)           Any distribution made to or on behalf of a Participant from such
Participant’s Class Year Distribution Account in an amount which is less
than the entire balance of any such Distribution Account shall be made pro rata
from each of the Earnings Crediting Options to which such Distribution Account
is then allocated.

 

(d)           Any and all distributions from the Plan shall be made in cash.

 

9

 

ARTICLE 6

BENEFITS TO PARTICIPANTS

 

6.1.          Benefits From the Class Year Distribution Account(s).  Benefits from a Participant’s Class Year
Distribution Account shall be paid to the Participant as follows:

 

(a)           In-Service Distributions.  In the case of a Participant who continues in
Service, the portion of the Participant’s Class Year Distribution Account
consisting solely of the Participant’s deferrals under Section 4.1
and earnings and losses thereon under Section 5.2 shall be paid or
commence to be paid to the Participant on the payment date elected by the
Participant in the Enrollment Agreement pursuant to which such Class Year
Distribution Account was established (which payment date may be no earlier than
the first month of the third Plan Year after the Plan Year for which such Class Year
Distribution Account was established, e.g., January 2013 for the 2010 Class Year
Distribution Account), in a lump sum or in up to five (5) annual
installments, as elected by the Participant in the Enrollment Agreement or in a
Subsequent Election.  Discretionary
Company Credits pursuant to Section 4.3 and earnings and losses
thereon, shall not be available for distribution while the Participant remains
in Service.

 

(b)           Continuation of Service Condition.  In the case of a Participant whose Service
with the Company ceases, the Participant’s elections in an Enrollment Agreement
or in a Subsequent Election with respect to any in-service time and form of
distribution of such Participant’s Class Year Distribution Account(s) for
which distribution has not yet commenced shall be void and of no effect, and
distribution of such Distribution Account(s) shall be governed by the
Participant’s elections in an Enrollment Agreement or in a Subsequent Election
applicable to distribution upon Retirement, separation from Service, Disability
or death, as applicable.

 

6.2.          Vesting.  Discretionary Company Credits described in Section 4.3,
above, and the earnings and losses thereon, shall vest in accordance with the
vesting schedule(s) established by the Committee at the time that the
Discretionary Company Credit is made.

 

6.3.          Benefits Upon Retirement.  Upon Retirement, each Class Year
Distribution Account of the Participant shall be distributed in one of the
following methods, as elected by the Participant in the Enrollment Agreement
pursuant to which such Class Year Distribution Account was established or
in a Subsequent Election:  (a) in a
lump sum; or (b) in up to twenty (20) annual installments.  Distribution shall be made at the time and in
the manner set forth in Section 5.7(b). 
Prior to distribution, such Participant’s Distribution Account(s) shall
continue to be credited with earnings and/or losses in accordance with Section 5.2
until fully distributed.

 

6.4.          Benefits Upon Separation from Service.  In the case of a Participant whose Service
with the Company ceases prior to Retirement, the vested portion of all of the
Participant’s Class Year Distribution Accounts shall be distributed in a
lump sum on the first day of the first month that is more than six (6) months
after such separation from Service. 
Prior to distribution, such Participant’s Distribution Account(s) shall
continue to be credited with earnings and/or losses in accordance with Section 5.2
until fully distributed.

 

10

 

6.5.          Benefits Upon Disability or Death.  In the case of a Participant who becomes
Disabled or dies, all of the Participant’s Class Year Distribution
Accounts for which distribution has not yet commenced shall be distributed in a
lump sum upon such Disability or death. 
Prior to distribution, such Participant’s Distribution Account(s) shall
continue to be credited with earnings and/or losses in accordance with Section 5.2
until fully distributed.

 

6.6.          Acceleration of Payment.

 

(a)           Unforeseeable Emergency.  In the event that the Plan Administrator,
upon written request of a Participant, determines, in its sole discretion, that
the Participant has suffered an Unforeseeable Emergency, the Company shall pay
to the Participant from his or her Class Year Distribution Account(s), as
soon as practicable following such determination, an amount necessary to meet
such Unforeseeable Emergency, in a manner consistent with Code Section 409A
and the regulations issued thereunder, after deduction of any and all taxes as
may be required pursuant to Section 7.9 (the “Emergency Benefit”).  Emergency Benefits shall be paid first from
the portion of the Participant’s Class Year Distribution Accounts
consisting solely of the Participant’s deferrals under Section 4.1
and earnings and losses thereon, to the extent such portion of one or more of
such Class Year Distribution Accounts is sufficient to meet the emergency,
in the order in which such Accounts would otherwise be distributed to the Participant.  If the distribution exhausts the portion of
the Class Year Distribution Accounts consisting solely of the Participant’s
deferrals under Section 4.1 and earnings thereon, the remainder of
the Participant’s Class Year Distribution Accounts may be accessed (to the
extent vested).  With respect to that
portion of any Class Year Distribution Account which is distributed to a
Participant as an Emergency Benefit in accordance with this Section 6.6(a),
no further benefit shall be payable to the Participant under this Plan.  Upon receipt of Emergency Benefits, the
Participant’s deferral election under Section 4.1 shall be
cancelled for the rest of the Plan Year in which the Emergency Benefits are
paid.

 

(b)           Change of Control.  (i) To the extent permitted by the
regulations under Code Section 409A, within the 30 days preceding or the
twelve (12) months following a Change of Control, the Company may exercise its
discretion to terminate this Plan and, notwithstanding any other provision of
the Plan or the terms of any Enrollment Agreement or Subsequent Election,
distribute to or with respect to each Participant all of his or her Class Year
Distribution Accounts within twelve (12) months of the Company’s action to so
terminate this Plan.  (ii) A
Participant may elect in the Participant’s Enrollment Agreement to receive all
his or her Class Year Distribution Accounts in a single lump sum payment
upon a Change in Control, regardless of any election otherwise made in his or
her Enrollment Agreement or Subsequent Election.

 

(c)           Other Acceleration Event.  To the extent permitted by Code Section 409A
and the regulations issued thereunder, notwithstanding the terms of an
Enrollment Agreement or Subsequent Election, distribution of all or part of a
Participant’s Class Year Distribution Account(s) may be made at any
time the Plan fails the requirements of Code Section 409A and the
regulations thereunder, with such payment not to exceed the amount required to
be included in the Participant’s income as a result of the failure.

 

11

 

6.7.          Limited Benefit Cash-Out.  If a Participant becomes eligible for a
distribution in accordance with the provisions of this Article 6,
the Plan Administrator shall, notwithstanding any election of the time and form
of payment by the Participant, distribute to the Participant the Participant’s Class Year
Distribution Account(s) in a lump sum, if the total value of the
Participant’s Class Year Distribution Account(s) on the date that
payment is to commence does not exceed the maximum amount permitted to be
automatically distributed under Section 1.409A-3(j)(4)(v)(B) of the
regulations promulgated under Code Section 409A and provided that the
payment results in the termination and liquidation of the entirety of the
Participant’s interest under the Plan, including any other arrangements treated
as a single nonqualified deferred compensation plan under Code Section 409A
and the regulations and guidance thereunder.

 

ARTICLE 7

MISCELLANEOUS

 

7.1.          Amendment and Termination.  The Plan may be amended, suspended,
discontinued or terminated at any time by the Company; provided, however, that no such amendment,
suspension, discontinuance or termination shall reduce or in any manner
adversely affect the rights of any Participant with respect to benefits that
are payable or may become payable under the Plan based upon the vested balance
of the Participant’s Class Year Distribution Account(s) as of the
effective date of such amendment, suspension, discontinuance or termination.  Notwithstanding the preceding provisions of
this Section 7.1, the Company reserves the right to amend the Plan,
either retroactively or prospectively, in whatever manner is required to
achieve compliance with the requirements of Code Section 409A.

 

7.2.          Claims Procedure.  It is intended that the claims procedures of
this Plan be administered in accordance with the claims procedure regulations
of the Department of Labor set forth in 29 CFR §2560.503-1.

 

(a)           Claim.  A person who believes that he is being denied
a benefit to which he is entitled under the Plan (hereinafter referred to as a “Claimant”)
may file a written request for such benefit with the Vice President —
Compensation and Benefits, setting forth the claim.

 

(b)           Claim Decision.  Upon receipt of a claim, the Vice President —
Compensation and Benefits shall advise the Claimant within ninety (90) days of
receipt of the claim whether the claim is denied.  If special circumstances require more than
ninety (90) days for processing, the Claimant will be notified in writing
within ninety (90) days of filing the claim that the Plan Administrator
requires up to an additional ninety (90) days to reply.  The notice will explain what special
circumstances make an extension necessary and indicate the date a final
decision is expected to be made.

 

If the claim is denied in whole or in part, the
Claimant shall be provided a written opinion, using language calculated to be
understood by the Claimant, setting forth:

 

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

 

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

 

12

 

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

 

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

 

(v)           The time limits for requesting a review under subsection (c) and
for review under subsection (d) hereof; and

 

(vi)          The Claimant’s right to bring a civil action under Section 502(a) of
ERISA following an adverse benefit determination.

 

(c)           Request for Review.  Within sixty (60) days after the receipt by
the Claimant of the written opinion described above, the Claimant may request
in writing that the Plan Administrator review its determination. The Claimant
or his or her duly authorized representative may, but need not, review the
pertinent documents and submit issues and comments in writing for consideration
by the Plan Administrator.  If the
Claimant does not request a review of the initial determination within such
sixty (60) day period, the Claimant shall be barred and estopped from
challenging the determination.

 

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

 

If the claim is denied upon review, in whole or in
part, the notice of disposition shall include the specific reason for the
denial, identify the specific provision of the Plan upon which the denial is
based, include a statement advising the claimant of his or her right to
receive, upon written request and free of charge, reasonable access to and
copies of all documents, records and other information which are relevant to
the claimant’s claim and include a statement advising the claimant of his right
to bring a civil action under Section 502(a) of ERISA if his or her
claim is denied, in whole or in part, upon review.

 

Notwithstanding anything herein, if a claimant is
denied a benefit because he or she is determined not to be disabled and he or she
makes a claim pursuant to such denial, the provisions of this paragraph shall
apply.  Upon receipt of a claim, the
reply period shall be forty-five (45) days. 
If, prior to the end of such 45-day period, the claims reviewer
determines that, due to matters beyond the control of the Plan, a decision
cannot be rendered, the period for making the determination may be extended for
up to thirty (30) days, and the claims reviewer shall notify the claimant,
prior to the expiration of such 45-day period, of the circumstances requiring
an extension and the date by which the Plan expects to render a decision.  If, prior to

 

13

 

the end of the first 30-day extension period, the
claims reviewer determines that, due to matters beyond the control of the Plan,
a decision cannot be rendered within that extension period, the period for
making the determination may be extended for up to an additional thirty (30)
days, and the claims reviewer shall notify the claimant, prior to the
expiration of the first 30-day extension period, of the circumstances requiring
the extension and the date by which the Plan expects to render a decision.  In the case of any extension described in
this paragraph, the notice of extension shall specifically explain the
standards on which entitlement to a benefit is based, the unresolved issues
that prevent a decision on the claim and the additional information needed to
resolve those issues, and the claimant shall be afforded forty-five (45) days
within which to provide the specified information.  If information is requested, the period for
making the benefit determination shall be tolled from the date on which
notification of an extension is sent to the claimant until the date on which
the claimant responds to the request for information.  Within one hundred eighty (180) days after
receiving the written notice of an adverse disposition of the claim, the
claimant may request in writing, and shall be entitled to, a review of the
benefit determination.  In deciding an
appeal of any adverse benefit determination that is based in whole or in part
on a medical judgment, the Plan shall consult with a health care professional
who has appropriate training and experience in the field of medicine involved
in the medical judgment.  Such health
care professional shall be an individual who is neither an individual who was
consulted in connection with the adverse benefit determination that is the
subject of the appeal nor the subordinate of any such individual.  The medical or vocational experts whose
advice was obtained on behalf of the Plan in connection with the claimant’s
adverse benefit determination will be identified to the claimant.  If the claimant does not request a review
within one hundred eighty (180) days after receiving written notice of the
original’s disposition of the claim, the claimant shall be deemed to have
accepted the original written disposition. 
A decision on review shall be rendered in writing by the Plan within a
reasonable period of time, but ordinarily not later than forty-five (45) days
after receipt of the claimant’s request for review by the Plan, unless the Plan
determines that special circumstances require an extension of time for
processing the claim.  If the Plan
determines that an extension of time for processing is required, written notice
of the extension shall be furnished to the claimant prior to the termination of
the initial forty-five (45) period.  In
no event shall such extension exceed a period of forty-five (45) days from the end
of the initial period.  The extension
notice shall indicate the special circumstances requiring an extension of time
and the date by which the Plan expects to render the determination on review.  In the event the extension is due to a
claimant’s failure to submit information necessary to decide the claim, the
claimant shall be afforded forty-five (45) days within which to provide the
specified information, and the period for making the benefit determination on
review shall be tolled from the date on which notification of the extension is
sent to the claimant until the date on which the claimant responds to the
request for additional information.

 

To the extent permitted
by law, a decision on shall be binding and conclusive upon all persons
whomsoever.  Completion of the claims
procedure described in this Section shall be a mandatory precondition that
must be complied with prior to commencement of a legal or equitable action in
connection with the Plan by a person claiming rights under the Plan, or by another
person claiming rights through such a person.

 

7.3.          Designation of Beneficiary.  Each Participant may designate a Beneficiary
or Beneficiaries (which Beneficiary may be an entity other than a natural
person) to receive any payments which may be made following the Participant’s
death.  Such designation may be 

 

14

 

changed or canceled at any time without the consent
of any such Beneficiary.  Any such
designation, change or cancellation must be made in a form approved by the Plan
Administrator and shall not be effective until received by the Plan
Administrator, or its designee.  If no
Beneficiary has been named, or the designated Beneficiary or Beneficiaries
shall have predeceased the Participant, the Beneficiary shall be the
Participant’s estate.  If a Participant
designates more than one Beneficiary, the interests of such Beneficiaries shall
be paid in equal shares, unless the Participant has specifically designated
otherwise.

 

7.4.          Limitation of Participant’s Right.  Nothing in this Plan shall be construed as
conferring upon any Participant any right to continue in Service, nor shall it
interfere with the rights of the Employer to terminate the employment of any
Participant and/or to take any personnel action affecting any Participant
without regard to the effect which such action may have upon such Participant
as a recipient or prospective recipient of benefits under the Plan.  Any amounts payable hereunder shall not be
deemed salary or other compensation to a Participant for the purposes of
computing benefits to which the Participant may be entitled under any other
arrangement established by the Company or its Affiliates for the benefit of its
employees.

 

7.5.          No Limitation on Company Actions.  Nothing contained in the Plan shall be
construed to prevent the Company from taking any action which is deemed by it
to be appropriate or in its best interest. 
No Participant, Beneficiary, or other person shall have any claim against
the Company as a result of such action.

 

7.6.          Obligations to Company.  If a Participant becomes entitled to a
distribution of benefits under the Plan, and if at such time the Participant
has outstanding any debt, obligation, or other liability representing an amount
owing to the Employer, then the Employer may offset such amount owed to it
against the amount of benefits otherwise distributable, to the extent and in
the manner and amount permitted under Section 1.409A-3(j)(4)(xiii).  Such determination shall be made by the Plan
Administrator in its sole discretion.

 

7.7.          Nonalienation of Benefits.  Except as expressly provided herein, no
Participant or Beneficiary shall have the power or right to transfer (otherwise
than by will or the laws of descent and distribution), alienate, or otherwise
encumber the Participant’s or Beneficiary’s interest under the Plan.  The Employer’s obligations under this Plan
are not assignable or transferable, except to (a) any corporation or other
entity which acquires all or substantially all of the Employer’s assets or
(b) any corporation or other entity into which the Employer may be merged
or consolidated.  The provisions of the
Plan shall inure to the benefit of each Participant and the Participant’s
Beneficiaries, heirs, executors, administrators or successors in interest.

 

7.8.          Protective Provisions.  Each Participant shall cooperate with the
Company by furnishing any and all information requested by the Company in order
to facilitate the payment of benefits hereunder, taking such physical
examinations as the Company may deem necessary and taking such other relevant
action as may be requested by the Company. 
If a Participant refuses to cooperate, the Company shall have no further
obligation to the Participant under the Plan, other than payment to such
Participant of the then current vested balance of the 

 

15

 

Participant’s Class Year Distribution Account(s) in
accordance with his or her applicable Enrollment Agreement and/or Subsequent
Election.

 

7.9.          Taxes.  The Employer may make such provisions and
take such action as it may deem appropriate for the withholding of any taxes
which the Employer is required by any law or regulation of any governmental
authority, whether Federal, state or local, to withhold in connection with any
benefits under the Plan, including, but not limited to, the withholding of
appropriate sums from any amount otherwise payable to the Participant (or his
or her Beneficiary).  Each Participant,
however, shall be responsible for the payment of all individual tax liabilities
relating to any such benefits.

 

7.10.        Unfunded Status of Plan.  The Plan is an “unfunded” plan for tax and
ERISA purposes.  This means that the
value of each Class Year Distribution Account of a Participant is based on
the value assigned to a hypothetical bookkeeping account, which is invested in
hypothetical shares or units of investments funds available under the
Plan.  As the nature of the investment
fund which forms the “index” or “meter” for the valuation of the bookkeeping
account changes, the valuation of the bookkeeping account changes as well.  The amount owed to a Participant is based on
the value assigned to the bookkeeping account. 
The Company may decide to use a “rabbi trust” to anticipate its
potential Plan liabilities, and it may attempt to have Plan investments mirror
the hypothetical investments deemed credited to the bookkeeping accounts.  However, the liability to pay the benefits is
the Company’s, and the assets of the rabbi trust are potentially available to
satisfy the claims of non-participant creditors of the Company.  Each Class Year Distribution Account of
a Participant shall at all times represent a general obligation of the
Company.  The Participant shall be a
general creditor of the Company with respect to this obligation, and shall not
have a secured or preferred position with respect to the Participant’s Class Year
Distribution Account(s).  Nothing
contained herein shall be deemed to create an escrow, trust, custodial account
or fiduciary relationship of any kind.

 

7.11.        Severability.  If any provision of this Plan is held
unenforceable, the remainder of the Plan shall continue in full force and
effect without regard to such unenforceable provision and shall be applied as
though the unenforceable provision were not contained in the Plan.

 

7.12.        Governing Law.  The Plan shall be construed in accordance
with and governed by the laws of the State of New York, without reference to
the principles of conflict of laws.

 

7.13.        Headings.  Headings are inserted in this Plan for
convenience of reference only and are to be ignored in the construction of the
provisions of the Plan.

 

7.14.        Gender, Singular and Plural.  All pronouns and any variations thereof shall
be deemed to refer to the masculine, feminine, or neuter, as the identity of
the person or persons may require.  As
the context may require, the singular may read as the plural and the plural as
the singular.

 

7.15.        Notice.  Any notice or filing required or permitted to
be given to the Plan Administrator under the Plan shall be sufficient if in
writing and hand delivered, or sent by 

 

16

 

registered or certified mail, to Emergency Medical
Services Corporation.:  6200 S. Syracuse
Way, Suite 200, Greenwood Village, CO 80111 Attention: Emergency Medical
Services Corporation Deferred Compensation Plan Committee, or to such other
entity as the Plan Administrator may designate from time to time.  Such notice shall be deemed given as of the
date of delivery, or, if delivery is made by mail, as of the date shown on the
postmark on the receipt for registration or certification.

 

7.16.        Commencement of Payments.  All payments due and payable under the Plan
on a designated payment date under the Plan shall be deemed to be made upon
such date if such payment is made on such date or a later date within the same
calendar year or, if later, by the fifteenth day of the third calendar month
following the specified date (provided the Participant is not entitled,
directly or indirectly, to designate the taxable year of the payment).  In addition, a payment is treated as made
upon a designated payment date under the Plan if the payment is made no earlier
than 30 days before the designated payment date and the Participant is not
permitted, directly or indirectly, to designate the taxable year of the
payment.

 

7.17.        Interpretation of Plan Provisions.  This Plan shall be interpreted in a manner
consistent with the provisions of Code Section 409A and the regulations
thereunder.

 

17

 

APPENDIX A

 

PARTICIPATING AFFILIATES

 

1.     EMS Management LLC

2.     EmCare Inc.

3.     American Medical Response,
Inc.

4.     Any majority - owned
subsidiaries of the entities listed in numbers 1-3 above.

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