Document:

mPhase Technologies, Inc.: Exhibit 10.74 - Filed by newsfilecorp.com

Exhibit 10.74

REGISTRATION RIGHTS AGREEMENT 

          Registration
Rights Agreement (the “Agreement”), dated as of November 30, 2011, by and
between MPHASE TECHNOLOGIES, INC., a corporation organized under the laws of New
Jersey, USA (the “Company”), and Dutchess Opportunity Fund, II, LP, a
Delaware Limited Partnership (the “Investor”). 

          Whereas,
in connection with the Investment Agreement by and between the Company and the
Investor of this date (the “Investment Agreement”), the Company has
agreed to issue and sell to the Investor up to $10,000,000 of the Company’s
Common Stock, .001 par value per share (the “Common Stock”), to be
purchased pursuant to the terms and subject to the conditions set forth in the
Investment Agreement; and

          Whereas,
to induce the Investor to execute and deliver the Investment Agreement, the
Company has agreed to provide certain registration rights under the Securities
Act of 1933, as amended, and the rules and regulations thereunder, or any
similar successor statute (collectively, the “1933 Act”), and applicable
state securities laws, with respect to the shares of Common Stock issuable
pursuant to the Investment Agreement.

          Now
therefore, in consideration of the foregoing promises and the mutual covenants
contained hereinafter and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Investor
hereby agree as follows:

Section
1.      DEFINITIONS.

          As
used in this Agreement, the following terms shall have the following
meanings:

          “Execution
Date” means the date of this Agreement set forth above. 

          “Person”
means a corporation, a limited liability company, an association, a partnership,
an organization, a business, an individual, a governmental or political
subdivision thereof or a governmental agency.

          “Principal
Market” shall mean Nasdaq Capital Market, the NYSE Amex, the New York Stock
Exchange, the Nasdaq Global Market, the Nasdaq Global Select Market or the OTC
Bulletin Board, whichever is the principal market on which the Common Stock of
the Company is listed.

          “Register,”
“Registered,” and “Registration” refer to the Registration
effected by preparing and filing one (1) or more Registration Statements in
compliance with the 1933 Act and pursuant to Rule 415 under the 1933 Act or any
successor rule providing for offering securities on a continuous basis (“Rule
415”), and the declaration or ordering of effectiveness of such Registration
Statement(s) by the United States Securities and Exchange Commission (the
“SEC”). 

          “Registrable
Securities” means (i) the shares of Common Stock issued or issuable pursuant
to the Investment Agreement, (ii) the Preparation Shares and Commitment Shares
(iii) any shares of capital stock issued or issuable with respect to such shares
of Common Stock, if any, as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise, which have not been
(x) included in the Registration Statement that has been declared effective by the SEC, or (y) sold under circumstances
meeting all of the applicable conditions of Rule 144 (or any similar provision
then in force) under the 1933 Act.

Signature Page to Registration Rights Agreement

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          “Registration
Statement” means the registration statement or statements of the Company
filed under the 1933 Act covering the Registrable Securities.

          All
capitalized terms used in this Agreement and not otherwise defined herein shall
have the same meaning ascribed to them as in the Investment Agreement.

Section
2.      REGISTRATION.

          (a)      Subject
to Section 3(g), the Company shall, within twenty-one (21) days after the
date of this Agreement, file with the SEC the Registration Statement or
Registration Statements (as is necessary) on Form S-1 (or, if such form is
unavailable for such a registration, on such other form as is available for such
registration), covering the resale of all of the Registrable Securities, which
Registration Statement(s) shall state that, in accordance with Rule 416
promulgated under the 1933 Act, such Registration Statement also covers such
indeterminate number of additional shares of Common Stock as may become issuable
upon stock splits, stock dividends or similar transactions. The Company shall
initially register for resale 276,000,000 shares of Common Stock, except to the
extent that the SEC requires the share amount to be reduced as a condition of
effectiveness.

          (b)      Intentionally
Omitted. 

          (c)      The
Company agrees not to include any other securities in the Registration Statement
covering the Registrable Securities without the Investor’s prior written consent
which the Investor may withhold in its sole discretion. Furthermore, the Company
agrees that it will not file any other Registration Statement for other
securities, until thirty calendar days after the Registration Statement for the
Registrable Securities is declared effective by the SEC.

Section
3.      RELATED
OBLIGATIONS.

          At
such time as the Company is obligated to prepare and file the Registration
Statement with the SEC pursuant to Section 2(a), the Company shall have
the following obligations with respect to the Registration Statement:

          (a)      The
Company shall use all commercially reasonable efforts to cause such Registration
Statement relating to the Registrable Securities to become effective within
ninety (90) days after the date that the Registration Statement is filed and
shall keep such Registration Statement effective until the earlier to occur of
the date on which (A) the Investor shall have sold all the Registrable
Securities; or (B) the Company has no right to sell any additional shares of
Common Stock under the Investment Agreement (the “Registration Period”).
The Registration Statement (including any amendments or supplements thereto and
prospectuses contained therein) shall not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein, or
necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading. The Company shall use all commercially
reasonable efforts to respond to all SEC comments within ten (10) business days
from receipt of such comments by the Company. The Company shall use all
commercially reasonable efforts to cause the Registration Statement relating to
the Registrable Securities to become effective no later than five (5) business
days after notice from the SEC that the Registration Statement may be declared
effective. The Investor agrees to provide all information which it is required by law to provide to the
Company, including the intended method of disposition of the Registrable
Securities, and the Company’s obligations set forth above shall be conditioned
on the receipt of such information.

Signature Page to Registration Rights Agreement

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          (b)      The
Company shall prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus used in connection with such Registration Statement, which prospectus
is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may be
necessary to keep such Registration Statement effective during the Registration
Period, and, during such period, comply with the provisions of the 1933 Act with
respect to the disposition of all Registrable Securities of the Company covered
by such Registration Statement until such time as all of such Registrable
Securities shall have been disposed of in accordance with the intended methods
of disposition by the Investor thereof as set forth in such Registration
Statement. In the event the number of shares of Common Stock covered by the
Registration Statement filed pursuant to this Agreement is at any time
insufficient to cover all of the Registrable Securities, the Company shall amend
such Registration Statement, or file a new Registration Statement (on the short
form available therefor, if applicable), or both, so as to cover all of the
Registrable Securities, in each case, as soon as practicable, but in any event
within fifty (50) calendar days after the necessity therefor arises (based on
the then Purchase Price of the Common Stock and other relevant factors on which
the Company reasonably elects to rely), assuming the Company has sufficient
authorized shares at that time, and if it does not, within fifty (50) calendar
days after such shares are authorized. The Company shall use commercially
reasonable efforts to cause such amendment and/or new Registration Statement to
become effective as soon as practicable following the filing thereof.

          (c)      The
Company shall make available to the Investor whose Registrable Securities are
included in any Registration Statement and its legal counsel without charge (i)
if requested by the Investor, promptly after the same is prepared and filed with
the SEC at least one (1) copy of such Registration Statement and any
amendment(s) thereto, including financial statements and schedules, all
documents incorporated therein by reference and all exhibits, the prospectus
included in such Registration Statement (including each preliminary prospectus)
and, with regards to such Registration Statement(s), any correspondence by or on
behalf of the Company to the SEC or the staff of the SEC and any correspondence
from the SEC or the staff of the SEC to the Company or its representatives; and
(ii) upon the effectiveness of any Registration Statement, the Company shall
make available copies of the prospectus, via EDGAR, included in such
Registration Statement and all amendments and supplements thereto.

          (d)      The
Company shall use commercially reasonable efforts to (i) register and qualify
the Registrable Securities covered by the Registration Statement under such
other securities or “blue sky” laws of such states in the United States as the
Investor reasonably requests; (ii) prepare and file in those jurisdictions, such
amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the
effectiveness thereof during the Registration Period; (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in
effect at all times during the Registration Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (x) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this Section 3(d), or (y) subject itself to general taxation in
any such jurisdiction. The Company shall promptly notify the Investor who holds
Registrable Securities of the receipt by the Company of any notification with
respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or “blue
sky” laws of any jurisdiction in the United States or its receipt of actual
notice of the initiation or threatening of any proceeding for such purpose.

Signature Page to Registration Rights Agreement

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          (e)      As
promptly as practicable after becoming aware of such event, the Company shall
notify the Investor in writing of the happening of any event as a result of
which the prospectus included in the Registration Statement, as then in effect,
includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading
(“Registration Default”) and use all diligent efforts to promptly prepare
a supplement or amendment to such Registration Statement and take any other
necessary steps to cure the Registration Default (which, if such Registration
Statement is on Form S-3, may consist of a document to be filed by the Company
with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as
defined below) and to be incorporated by reference in the prospectus) to correct
such untrue statement or omission, and make available copies of such supplement
or amendment to the Investor. The Company shall also promptly notify the
Investor (i) when a prospectus or any prospectus supplement or post-effective
amendment has been filed, and when the Registration Statement or any
post-effective amendment has become effective; (ii) of any request by the SEC
for amendments or supplements to the Registration Statement or related
prospectus or related information, (iii) of the Company’s reasonable
determination that a post-effective amendment to the Registration Statement
would be appropriate, (iv) in the event the Registration Statement is no longer
effective, or (v) if the Registration Statement is stale as a result of the
Company’s failure to timely file its financials or otherwise. If a Registration
Default occurs during the period commencing on the Put Notice Date and ending on
the Closing Date, the Company acknowledges that its failure to cure such a
Registration Default within ten (10) business days will cause the Investor to
suffer damages in an amount that will be difficult to ascertain.

          (f)      The
Company shall use all commercially reasonable efforts to prevent the issuance of
any stop order or other suspension of effectiveness of the Registration
Statement, or the suspension of the qualification of any of the Registrable
Securities for sale in any jurisdiction and, if such an order or suspension is
issued, to obtain the withdrawal of such order or suspension at the earliest
possible moment and to notify the Investor holding Registrable Securities being
sold of the issuance of such order and the resolution thereof or its receipt of
actual notice of the initiation or threat of any proceeding concerning the
effectiveness of the Registration Statement.

          (g)      The
Company shall permit the Investor and one (1) legal counsel, designated by the
Investor, to review and comment upon the Registration Statement and all
amendments and supplements thereto at least one (1) calendar day prior to their
filing with the SEC. However, any postponement of a filing of a Registration
Statement or any postponement of a request for acceleration or any postponement
of the effective date or effectiveness of a Registration Statement by written
request of the Investor (collectively, the "Investor's Delay") shall not
act to trigger any penalty of any kind, or any cash amount due or any in-kind
amount due the Investor from the Company under any and all agreements of any
nature or kind between the Company and the Investor. The event(s) of an
Investor's Delay shall act to suspend all obligations of any kind or nature of
the Company under any and all agreements of any nature or kind between the
Company and the Investor.

          (h)     
Intentionally Omitted. 

Signature Page to Registration Rights Agreement

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          (i)      The
Company shall hold in confidence and not make any disclosure of information
concerning the Investor unless (i) disclosure of such information is necessary
to comply with federal or state securities laws, (ii) the disclosure of such
information is necessary to avoid or correct a misstatement or omission in any
Registration Statement, (iii) the release of such information is ordered
pursuant to a subpoena or other final, non-appealable order from a court or
governmental body of competent jurisdiction, (iv) such information has been made
generally available to the public other than by disclosure in violation of this
Agreement or any other agreement, or (v) the Investor has consented to such
disclosure. The Company agrees that it shall, upon
learning that disclosure of such information concerning the Investor is sought
in or by a court or governmental body of competent jurisdiction or through other
means, give prompt written notice to the Investor and allow the Investor, at the
Investor’s expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order covering such information.

          (j)      The
Company shall use all commercially reasonable efforts to maintain designation
and quotation of all the Registrable Securities covered by any Registration
Statement on the Principal Market. The Company shall pay all fees and expenses
in connection with satisfying its obligation under this Section 3(j).

          (k)      Intentionally
Omitted. 

          (l)      The
Company shall provide a transfer agent for all the Registrable Securities not
later than the effective date of the first Registration Statement filed pursuant
hereto.

          (m)      If
requested by the Investor, the Company shall (i) as soon as reasonably practical
incorporate in a prospectus supplement or post-effective amendment such
information as the Investor reasonably determines should be included therein
relating to the sale and distribution of Registrable Securities, including,
without limitation, information with respect to the offering of the Registrable
Securities to be sold in such offering; (ii) make all required filings of such
prospectus supplement or post-effective amendment as soon as reasonably possible
after being notified of the matters to be incorporated in such prospectus
supplement or post-effective amendment; and (iii) supplement or make amendments
to any Registration Statement if reasonably requested by the Investor.

          (n)      The
Company shall use all commercially reasonable efforts to cause the Registrable
Securities covered by the applicable Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be
necessary to facilitate the disposition of such Registrable Securities.

          (o)      The
Company shall otherwise use all commercially reasonable efforts to comply with
all applicable rules and regulations of the SEC in connection with any
registration hereunder.

          (p)      Within
one (1) business day after the Registration Statement which includes Registrable
Securities is declared effective by the SEC, the Company shall deliver to the
transfer agent for such Registrable Securities, with copies to the Investor, a
written notification that such Registration Statement has been declared
effective by the SEC.

Signature Page to Registration Rights Agreement

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Section
4.      OBLIGATIONS OF THE
INVESTOR.

          (a)     
At least five (5) calendar days prior to the first anticipated filing
date of the Registration Statement the Company shall notify the Investor in
writing of the information the Company requires from the Investor for the
Registration Statement. It shall be a condition precedent to the obligations of
the Company to complete the registration pursuant to this Agreement with respect
to the Registrable Securities and the Investor agrees to furnish to the Company
that information regarding itself, the Registrable Securities and the intended
method of disposition of the Registrable Securities as shall reasonably be
required to effect the registration of the resale of such Registrable Securities
and the Investor shall execute such documents in connection with such
registration as the Company may reasonably request. The Investor covenants and
agrees that, in connection with any sale of Registrable Securities by it
pursuant to the Registration Statement, it shall comply with the “Plan of
Distribution” section of the then current prospectus relating to such
Registration Statement.

          (b)     
The Investor, by its acceptance of the Registrable Securities, agrees
to cooperate with the Company as reasonably requested by the Company in
connection with the preparation and filing of any Registration Statement
hereunder.

          (c)      The
Investor agrees that, upon receipt of written notice from the Company of the
happening of any event of the kind described in Section
3(f) or the first sentence of Section 3(e),
the Investor will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering the resale of such
Registrable Securities until the Investor’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section
3(f) or the first sentence of Section 3(e).

Section
5.      EXPENSES OF
REGISTRATION.

          All
reasonable expenses, other than underwriting discounts and commissions and other
than as set forth in the Investment Agreement, incurred in connection with
registrations including comments, filings or qualifications pursuant to Section 2 and Section 3, including, without
limitation, all registration, listing and qualifications fees, printing and
accounting fees, and fees and disbursements of counsel for the Company shall be
paid by the Company.

Section
6.      INDEMNIFICATION.

          In
the event any Registrable Securities are included in the Registration Statement
under this Agreement:

Signature Page to Registration Rights Agreement

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          (a)      To
the fullest extent permitted by law, the Company, under this Agreement, will,
and hereby does, indemnify, hold harmless and defend the Investor, the
directors, officers, partners, employees, counsel, agents, representatives of,
and each Person, if any, who controls, the Investor within the meaning of the
1933 Act or the Securities Exchange Act of 1934, as amended (the “1934
Act”) (each, an “Indemnified Person”), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’
fees, amounts paid in settlement or expenses, joint or several (collectively,
“Claims”), incurred in investigating, preparing or defending any action,
claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing by or before any court or governmental, administrative or other
regulatory agency, body or the SEC, whether pending or threatened, whether or
not an indemnified party is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject insofar as such Claims
(or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of a material fact in the Registration
Statement or any post-effective amendment thereto or in any filing made in
connection with the qualification of the offering under the securities or other
“blue sky” laws of any jurisdiction in which the Investor has requested in
writing that the Company register or qualify the Shares (“Blue Sky
Filing”), or the omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which the statements therein were made, not
misleading, (ii) any untrue statement or alleged untrue statement of a material
fact contained in the final prospectus for the offer of the Registrable
Securities (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission
to state therein any material fact necessary to make the statements made
therein, in light of the circumstances under which the statements therein were
made, not misleading, or (iii) any violation or alleged violation by the Company
of the 1933 Act, the 1934 Act, any other law, including, without limitation, any
state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable Securities pursuant to the Registration Statement
(the matters in the foregoing clauses (i) through (iii) being, collectively,
“Violations”). Subject to the restrictions set forth in Section 6(c) the Company shall reimburse each
Indemnified Person, promptly as such expenses are incurred and are due and
payable, for any reasonable legal fees or other reasonable expenses incurred by
them in connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(a): (i) shall not apply to a Claim
arising out of or based upon a Violation which is due to the inclusion in the
Registration Statement of the information furnished to the Company by any
Indemnified Person expressly for use in connection with the preparation of the
Registration Statement or any such amendment thereof or supplement thereto; (ii)
shall not be available to the extent such Claim is based on (A) a failure of the
Investor to deliver or to cause to be delivered the prospectus made available by
the Company; (B) the Indemnified Person’s use of an incorrect prospectus despite
being promptly advised in advance by the Company in writing not to use such
incorrect prospectus; (C) the manner of sale of the Registrable Securities by
the Investor or of the Investor’s failure to register as a dealer under
applicable securities laws; (D) any omission of the Investor to notify the
Company of any material fact that should be stated in the Registration Statement
or prospectus relating to the Investor or the manner of sale; and (E) any
amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of the Company, which consent shall not be
unreasonably withheld. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person
and shall survive the resale of the Registrable Securities by the Investor
pursuant to the Registration Statement; and (iii) shall not be available to the
extent the Claim arises out of the gross negligence or willful misconduct of the
Indemnified Person.

          (b)     
In connection with any Registration Statement in which the Investor is
participating, the Investor agrees to severally and jointly indemnify, hold
harmless and defend, to the same extent and in the same manner as is set forth
in Section 6(a), the Company, each of its directors, officers, employees,
counsel, agents and representatives and each Person, if any, who controls the
Company within the meaning of the 1933 Act or the 1934 Act (each, an
“Indemnified Party”), against any Claim or Indemnified Damages to which
any of them may become subject, under the 1933 Act, the 1934 Act or otherwise,
insofar as such Claim or Indemnified Damages arise out of or are based upon any
Violation, in each case to the extent, and only to the extent, that such
Violation is due to (i) the inclusion in the Registration Statement of the
written information furnished to the Company by the Investor expressly for use
in connection with such Registration Statement; (ii) a failure of the Investor
to deliver or to cause to be delivered the prospectus made available by the
Company or the Investor’s use of an incorrect prospectus despite being timely advised by the
Company in writing not to use such incorrect prospectus; (iii) the Investor’s
failure to register as a dealer under applicable securities laws; (iv) the
Investor’s gross negligence or willful misconduct; or (v) any omission of the
Investor to notify the Company of any material fact that should be stated in the
Registration Statement or prospectus relating to the Investor or the manner of
sale; and, subject to Section 6(c), the
Investor will reimburse any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such Claim; provided, however,
that the indemnity agreement contained in this Section
6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written
consent of the Investor, which consent shall not be unreasonably withheld. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the resale of
the Registrable Securities by the Investor pursuant to the Registration
Statement.

Signature Page to Registration Rights Agreement

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          (c)     
Promptly after receipt by an Indemnified Person or Indemnified Party
under this Section 6 of notice of the commencement
of any action or proceeding (including any governmental action or proceeding)
involving a Claim, such Indemnified Person or Indemnified Party shall, if a
Claim in respect thereof is to be made against any indemnifying party under this
Section 6, deliver to the indemnifying party a written notice of the
commencement thereof, and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume control of the
defense thereof with counsel mutually satisfactory to the indemnifying party and
the Indemnified Person or the Indemnified Party, as the case may be; provided,
however, that an Indemnified Person or Indemnified Party, as the case may be,
shall have the right to retain its own counsel with the fees and expenses to be
paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the Indemnified Person or Indemnified Party, the representation by
counsel of the Indemnified Person or Indemnified Party and the indemnifying
party would be inappropriate due to actual or potential differing interests
between such Indemnified Person or Indemnified Party and any other party
represented by such counsel in such proceeding. The indemnifying party shall pay
for only one (1) separate legal counsel for the Indemnified Persons or the
Indemnified Parties, as applicable, and such counsel shall be selected by the
Investor, if the Investor is entitled to indemnification hereunder, or the
Company, if the Company is entitled to indemnification hereunder, as applicable.
The Indemnified Party or Indemnified Person shall cooperate fully with the
indemnifying party in connection with any negotiation or defense of any such
action or Claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the Indemnified Party or
Indemnified Person which relates to such action or Claim. The indemnifying party
shall keep the Indemnified Party or Indemnified Person fully apprised at all
times as to the status of the defense or any settlement negotiations with
respect thereto. No indemnifying party shall be liable for any settlement of any
action, claim or proceeding affected without its written consent; provided,
however, that the indemnifying party shall not unreasonably withhold, delay or
condition its consent. No indemnifying party shall, without the consent of the
Indemnified Party or Indemnified Person, consent to entry of any judgment or
enter into any settlement or other compromise which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party or Indemnified Person of a release from all liability in
respect to such Claim. Following indemnification as provided for hereunder, the
indemnifying party shall be subrogated to all rights of the Indemnified Party or
Indemnified Person with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to
deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent
that the indemnifying party is prejudiced in its ability to defend such
action.

Signature Page to Registration Rights Agreement

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          (d)      The
indemnity agreements contained herein shall be in addition to (i) any cause of
action or similar right of the Indemnified Party or Indemnified Person against
the indemnifying party or others, and (ii) any liabilities the indemnifying
party may be subject to pursuant to the law.

Section
7.      CONTRIBUTION.

          To
the extent any indemnification by an indemnifying party is prohibited or limited
by law, the indemnifying party agrees to make the maximum contribution with
respect to any amounts for which it would otherwise be liable under Section
6 to the fullest extent permitted by law; provided, however, that: (i) no
contribution shall be made under circumstances where the maker would not have
been liable for indemnification under the fault standards set forth in
Section 6; (ii) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any seller of Registrable Securities who was not
guilty of fraudulent misrepresentation; and (iii) contribution by any seller of
Registrable Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities.

Section
8.      REPORTS UNDER THE 1934
ACT.

          With a
view to making available to the Investor the benefits of Rule 144 promulgated
under the 1933 Act or any other similar rule or regulation of the SEC that may
at any time permit the Investor to sell securities of the Company to the public
without registration (“Rule 144”), provided that the Investor holds any
Registrable Securities which are eligible for resale under Rule 144 and such
information is necessary in order for the Investor to sell such Securities
pursuant to Rule 144, the Company agrees to:

          (a)      make
and keep public information available, as those terms are understood and defined
in Rule 144;

          (b)      file
with the SEC in a timely manner all reports and other documents required of the
Company under the 1933 Act and the 1934 Act so long as the Company remains
subject to such requirements (it being understood that nothing herein shall
limit the Company’s obligations under Section 5(c) of the Investment Agreement)
and the filing of such reports and other documents is required for the
applicable provisions of Rule 144; and

          (c)     
furnish to the Investor, promptly upon request, (i) a written statement
by the Company that it has complied with the reporting requirements of Rule 144,
the 1933 Act and the 1934 Act applicable to the Company, (ii) a copy of the most
recent annual or quarterly report of the Company and such other reports and
documents so filed by the Company, and (iii) such other information as may be
reasonably requested to permit the Investor to sell such securities pursuant to
Rule 144 without registration.

Section
9.      NO ASSIGNMENT OF
REGISTRATION RIGHTS.

          This
Agreement and the rights, agreements or obligations hereunder may not be
assigned, by operation of law, merger or otherwise, and without the prior
written consent of the other party hereto, and any purported assignment by a
party without prior written consent of the 

other party will be null and void and not binding on such other
party. Subject to the preceding sentence, all of the terms, agreements,
covenants, representations, warranties and conditions of this Agreement are
binding upon, and inure to the benefit of and are enforceable by, the parties
and their respective successors and assigns. 

Signature Page to Registration Rights Agreement

9

Section
10.      AMENDMENT OF REGISTRATION
RIGHTS.

          The
provisions of this Agreement may be amended only with the written consent of the
Company and the Investor.

Section
11.     
MISCELLANEOUS.

          (a)     
Any notices or other communications required or permitted to be given
under the terms of this Agreement must be in writing and will be deemed to have
been delivered (i) upon receipt, when delivered personally; (ii) upon receipt,
when sent by facsimile or email with the signed document attached in PDF format
(provided a confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (iii) one (1) day after
deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses and facsimile
numbers for such communications shall be:

If to the Company:

MPHASE TECHNOLOGIES, INC.

If to the Investor:
Dutchess
Opportunity Fund, II, LP
50 Commonwealth Ave, Suite 2
Boston, MA
02116
Telephone: (617) 301-4700 

          Each
party shall provide five (5) business days prior notice to the other party of
any change in address, phone number, facsimile number ore-mail address.

          (b)     
Failure of any party to exercise any right or remedy under this
Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

          (c)      This
Agreement and the Investment Agreement constitute the entire agreement among the
parties hereto with respect to the subject matter hereof and thereof. There are
no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein and therein.

          (d)      This
Agreement and the Investment Agreement supersede all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof and thereof.

Signature Page to Registration Rights Agreement

10

          (e)     
The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof. Whenever required by
the context of this Agreement, the singular shall include the plural and
masculine shall include the feminine. This Agreement shall not be construed as
if it had been prepared by one of the parties, but rather as if all the parties
had prepared the same.

          (f)     
This Agreement may be executed in two or more identical counterparts,
each of which shall be deemed an original but all of which shall constitute one
and the same agreement. This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission or by e-mail
delivery of a PDF format of a copy of this Agreement bearing the signature of
the party so delivering this Agreement.

          (g)      Each
party shall do and perform, or cause to be done and performed, all such further
acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated hereby.

          (h)      In
case any provision of this Agreement is held by a court of competent
jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is
enforceable to the maximum extent possible, and the validity and enforceability
of the remaining provisions of this Agreement will not in any way be affected or
impaired thereby.

Section 12.     DISPUTES
SUBJECT TO ARBITRATION GOVERNED BY DELAWARE LAW.

          All
disputes arising under this agreement shall be governed by and interpreted in
accordance with the laws of the Commonwealth of Massachusetts, without regard to
principles of conflict of laws. The parties to this agreement will submit all
disputes arising under this agreement to arbitration in Boston, Massachusetts
before a single arbitrator of the American Arbitration Association
(“AAA”). The arbitrator shall be selected by application of the rules of
the AAA, or by mutual agreement of the parties, except that such arbitrator
shall be an attorney admitted to practice law in the Commonwealth of
Massachusetts. No party to this agreement will challenge the jurisdiction or
venue provisions as provided in this section. Nothing contained herein shall
prevent the party from obtaining an injunction.

*.*.* 

Signature Page to Registration Rights Agreement

11

Signature Page to Registration Rights Agreement

12exhibit10-9.htm

    AUTOMATIC DATA PROCESSING,
INC.

     

    DEFERRED COMPENSATION
PLAN

     

    As Restated Effective July 1,
2010

     

              The
Automatic Data Processing, Inc. Deferred Compensation Plan is intended to
provide a select group of management or highly-compensated employees the ability
to defer certain compensation earned by such employees. This restated Plan
document applies to all deferrals made or vested under the Plan on or after
January 1, 2005 that are subject to the provisions of Section 409A of the
Internal Revenue Code. All other deferrals made and vested prior to January 1,
2005 are subject to the rules in effect at the time the compensation was
deferred. It is intended that this Plan will be supplemented by annual summaries
describing the Plan and participation in the Plan for the applicable Plan Year;
in the event of a conflict between the Plan and an annual summary, the terms of
the Plan shall control.

     

    ARTICLE I
DEFINITIONS

     

              Capitalized terms used in this Plan,
shall have the meanings specified below.

     

         1.1 “Account” or “Accounts” shall mean
all of the Bonus Deferral Subaccounts or Company Matching Contribution
Subaccounts that are specifically provided in this Plan.

     

         1.2 “Affiliate” means (i)
any person or entity that directly or indirectly controls, is controlled by or
is under common control with the Company and/or (ii) to the extent provided by
the Committee, any person or entity in which the Company has a significant
interest. The term “control” (including, with correlative meaning, the terms
“controlled by” and “under common control with”), as applied to any person or
entity, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of such person or entity,
whether through the ownership of voting or other securities, by contract or
otherwise.

     

         1.3 “Annual Bonus
Payments” shall mean, with respect to any Eligible Employee who does not
qualify as a sales associate, the compensation earned pursuant to any annual
cash incentive plan or annual cash bonus plan or program adopted by the Company;
provided, however, that the
following compensation shall not qualify as “Annual Bonus Payments” hereunder:
spot bonuses, hiring bonuses, separation payments, retention payments, or other
special or extraordinary payments. Annual Bonus Payments shall only include
compensation that is contingent on the satisfaction of pre-established
organizational or individual performance criteria relating to the Company’s
fiscal year, and the performance criteria in respect of which was established in
writing no later than 90 days after the commencement of the performance period
to which such criteria relate.

     

    

    
    

         1.4 “Annual Incentive
Amounts” shall mean, as applicable, Annual Bonus Payments and Qualifying
Sales Bonuses.

     

         1.5 “Beneficiary” or
“Beneficiaries”
shall mean the person or persons designated in writing by a Participant in
accordance with procedures established by the Committee or the Plan
Administrator to receive the benefits specified hereunder in the event of the
Participant’s death. No Beneficiary designation shall become effective until it
is filed with the Committee or the Plan Administrator. If there is no such
designation or if there is no surviving designated Beneficiary, then the
Participant’s surviving spouse shall be the Beneficiary. If there is no
surviving spouse to receive any benefits payable in accordance with the
preceding sentence, the duly appointed and currently acting personal
representative of the Participant’s estate (which shall include either the
Participant’s probate estate or living trust) shall be the
Beneficiary.

     

         1.6 “Board of Directors”
or “Board”
shall mean the Board of Directors of Automatic Data Processing,
Inc.

     

         1.7 “Bonus Deferral
Subaccount” shall mean the bookkeeping account maintained by the Company
or the Plan Administrator for each Participant that is credited with amounts
equal to (i) the portion of the Participant’s Annual Incentive Amounts that he
or she elects to defer, and (ii) earnings and losses (based on the Investment
Rate) attributable thereto.

     

         1.8 “Code” shall mean the
Internal Revenue Code of 1986, as amended. Reference in the Plan to any section
of the Code shall be deemed to include any regulations or other interpretative
guidance under such section, and any amendments or successor provisions to such
section, regulations or guidance.

     

         1.9 “Committee” shall mean
a committee as the Compensation Committee may appoint to administer the Plan or,
if no such committee has been appointed by the Compensation Committee, then it
shall be the Compensation Committee. As of the effective date of this Plan, the
Committee shall consist of those persons occupying the positions of Vice
President, Human Resources and General Counsel of the Company.

     

         1.10 “Company” shall mean
Automatic Data Processing, Inc., a Delaware corporation.

     

         1.11 “Company Matching
Contribution” shall mean the amount, if any, contributed by the Company
for a Participant with respect to a Plan Year under Section 4.2.

     

         1.12 “Company Matching
Contribution Subaccount” shall mean the bookkeeping account maintained by
the Company or the Plan Administrator for each Participant that is credited with
an amount equal to (i) the Company Matching Contribution, if any, and (ii)
earnings and losses (based on the Investment Rate) attributable
thereto.

     

    2

     

    

    
    

         1.13 “Compensation
Committee” shall mean the Compensation Committee of the Board.

     

         1.14 “Disability” shall mean a
circumstance where the Company shall have cause to terminate a Participant’s
employment or service on account of “disability,” as defined in any
then-existing employment, consulting or other similar agreement between the
Participant and the Company or, in the absence of such an employment, consulting
or other similar agreement, a condition entitling the Participant to receive
benefits under a long-term disability plan of the Company, or, in the absence of
such a plan, as determined by the Committee based upon medical evidence
acceptable to it; provided, however, that a Participant
shall not have a Disability for purposes of the Plan unless the Participant is
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 the Participant is, 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, receiving income
replacement benefits for a period of not less than 3 months under an accident
and health plan covering the Company’s employees.

     

         1.15 “Distributable Amount” shall
mean the vested balance in a Participant’s Accounts subject to distribution in a
given Plan Year.

     

         1.16 “Eligible Employee” shall mean
those employees selected by the Committee in accordance with the procedures set
forth in Article II.

     

         1.17 “Enrollment Period” shall mean
a period of time, as determined by the Committee with respect to each Plan Year,
ending no later than the December 31 preceding the end of the performance period
with respect to which the Annual Incentive Amounts for such Plan Years relate;
provided, however, that if the relevant
performance period does not end on June 30, the enrollment period shall end at
least six months before the conclusion of the applicable performance
period.

     

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

     

         1.19 “Exchange Act” means the
Securities Exchange Act of 1934, as amended, and any successor thereto.
Reference in the Plan to any section of (or rule promulgated under) the Exchange
Act shall be deemed to include any rules, regulations or other interpretative
guidance under such section or rule, and any amendments or successor provisions
to such section, rules, regulations or guidance.

     

         1.20 “Fund” or “Funds” shall mean one or more
of the investment funds selected by the Committee, or its designee, to which
Participants may elect to make deemed investments pursuant to Section
3.3.

     

         1.21 “In-Service Distribution Date”
shall mean, in the case of a distribution to be made while the Participant is
still employed by the Company, the month of September of the Plan Year elected
by the Participant.

     

    3

     

    

    
    

         1.22 “Investment Rate” shall mean,
(i) for each Fund with a fixed rate of return, the annual interest rate
applicable to such Fund, as determined by the Committee from time to time, and
(ii) for any Fund that does not have a fixed rate of return, any appreciation or
depreciation in the value of the investment in which the Participant is deemed
invested.

     

         1.23 “Participant” shall mean any
Eligible Employee who becomes a Participant in this Plan in accordance with
Article II.

     

         1.24 “Plan” shall mean this
Automatic Data Processing, Inc. Deferred Compensation Plan.

     

         1.25 “Plan Administrator” shall
mean, if applicable, any record keeper appointed by the Company (which may
include an Affiliate of the Company ) to perform administrative and other
functions associated with the Plan.

     

         1.26 “Plan Year” shall mean the
Company’s fiscal year, which runs from July 1 to June 30.

     

         1.27 “Qualifying Sales Bonuses”
shall mean, with respect to any Eligible Employee who qualifies as a sales
associate and (i) receives sales bonuses on a quarterly basis, the bonus paid to
such person in respect of such person’s performance for the Company’s fourth
fiscal quarter in any Plan Year or (ii) receives sales bonuses on a monthly
basis, the bonus paid to such person in respect of such person’s performance for
the last month in any Plan Year.

     

         1.28 “Scheduled Distribution Date”
shall mean, as applicable, the In-Service Distribution Date or the Separation
from Service Distribution Date

     

         1.29 “Separation from Service”
shall mean that the employment or service provider relationship with the Company
and any entity that is to be treated as a single employer with the Company for
purposes of Treasury Regulations Section 1.409A-1(h) (the “Single Employer”) terminates
such that the facts and circumstances indicate it is reasonably anticipated that
no further services will be performed or that the level of bona fide services
the Participant would perform after the termination (whether as an employee or
as an independent contractor) would permanently decrease to no more than 20
percent of the average level of bona fide services performed (whether as an
employee or an independent contractor) over the immediately preceding 36-month
period (or the full period of services to the Single Employer if the Participant
has been providing services to the Single Employer less than 36
months).

     

         1.30 “Separation from Service Distribution
Date” shall mean, in the case of a distribution on account of a
Separation from Service, the seventh month following the month in which the
Separation from Service occurs.

     

    4

     

    

    
    

         1.31 “Unforeseeable
Emergency” shall mean a severe unforeseeable financial hardship as
defined in Section 409A and the regulations thereunder, including a severe
financial hardship resulting from (i) an illness or accident of the Participant,
the Participant’s spouse, the
Participant’s designated Beneficiary, or the Participant’s dependent (as defined
in Section 152 of the Code, without regard to section 152(b)(1), (b)(2), and
(d)(1)(B)), (ii) the loss of the Participant’s property due to casualty, or
(iii) other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the Participant’s control.

     

    ARTICLE II 

     

    ELIGIBILITY FOR PARTICIPATION

     

         2.1 Determination of Eligible
Employee. As of the date of this Plan, with respect to a given Plan Year,
Eligible Employees shall consist of all employees of the Company (or of any
subsidiary that is incorporated in any State in the United States of America),
determined as of the June 30 immediately preceding the Plan Year, that are (i)
in executive letter grade positions, and (ii) eligible to receive compensation
pursuant to an annual cash incentive plan or annual cash bonus plan or program;
provided, however, that any employee
whose home country is not the United States of America shall not be considered
an Eligible Employee hereunder.

     

         2.2 Participation. An
Eligible Employee shall become a Participant in the Plan by electing to make a
deferral of Annual Incentive Amounts in a Plan Year in accordance with Article
III.

     

         2.3 Amendment of Eligibility
Criteria. The Committee may, in its discretion, change which employees
are Eligible Employees under the Plan for any reason, including to comply with
any applicable laws relating to the operation of the Plan. Eligibility for
participation in one Plan Year does not guarantee eligibility to participate in
any future Plan Year.

     

    ARTICLE III
ELECTIONS

     

         3.1 Election to Defer Annual
Incentive Amounts.

     

              (a)
Timing of Election to
Defer Annual Incentive Amounts. An Eligible Employee may elect to defer
Annual Incentive Amounts only during the Enrollment Period.

     

              (b)
Amount Eligible for
Deferral.

     

                   (1)
As of July 1, 2010, an Eligible Employee may elect to defer up to up to 100% of
his Annual Incentive Amounts. The Committee may change the amount that may be
deferred in respect of any Plan Year at any time, or from time to
time.

     

    5

     

    

    
    

                   (2)
If necessary, the total amount deferred by a Participant shall be reduced in 1%
increments in order to satisfy Social Security Tax (including Medicare), income
tax withholding for compensation that cannot be deferred, employee benefit plan
withholding requirements and any other withholding requirements.

     

              (c) Irrevocable
Elections. Elections to defer Annual Incentive Amounts shall become
irrevocable as of the date for such Plan Year set by the Committee in its sole
discretion, which (i) in the case of an Annual Bonus Payment shall in no event
be later than six months before the conclusion of the performance period with
respect to which the Annual Bonus Payment relates and (ii) in the case of a
Qualifying Sales Bonus shall in no event be later than the December 31 of the
calendar year preceding the calendar year in which the Qualifying Sales Bonus
will be earned.

     

              (d)
Duration of
Election. An Eligible Employee’s election to defer Annual Incentive
Amounts for any Plan Year is effective only for such Plan Year.

     

              (e)
Method of
Election. Elections to participate may be made in writing, through an
electronic medium such as a website enrollment window or an email enrollment
form or through a Plan Administrator, provided that the election is binding when
made and there is sufficient record of when such election is made.

     

         3.2 Elections as to Time and
Form of Payment. During the Enrollment Period, a Participant shall make
an election regarding the time and form of payment of the Annual Incentive
Amounts deferred for that Plan Year (including earnings and losses (based on the
Investment Rate) attributable thereto).

     

              (a)
Elections as to
Time. A Participant shall elect to receive a distribution of his Annual
Incentive Amounts to be deferred for a Plan Year (and all earnings and losses
(based on the Investment Rate) attributable thereto) (i) on an In-Service
Distribution Date, (ii) on a Separation from Service Distribution Date or (iii)
a portion on an In-Service Distribution Date and a portion on a Separation from
Service Distribution Date; provided, however, that a Participant’s
In-Service Distribution Date may be no earlier than five years following the
date on which the deferral of Annual Incentive Amounts is made.

     

              (b)
Elections as to
Form. A Participant shall elect the form of the distribution of his
Annual Incentive Amounts, whether in a lump sum payment or in annual
installments. If no such election is made, the Participant shall be deemed to
have elected to receive payment in a lump sum. A Participant may elect annual
installments to be paid over a period not to exceed fifteen years. A
Participant’s election to receive payment in annual installments on a Separation
from Service is subject to the terms of Section 6.2(a)(2).

     

              (c)
Application of
Election. An election as to time and form of payment made with respect to
a given Plan Year shall apply only to the Annual Incentive Amounts deferred for
such Plan Year.

     

    6

     

    

    
    

              (d)
No Changes
Permitted. Except as permitted by Section 3.2(e) below, elections as to
time and form of payment shall become irrevocable as of December 31 of the Plan
Year for which Annual Incentive Amounts are deferred.

     

              (e) Subsequent Changes in Time
and Form of Payment. A Participant may delay the timing of a
previously-scheduled payment or may change the form of a payment only if such
subsequent deferral election meets all of the following
requirements:

     

                   (i)
the subsequent deferral election shall not take effect until at least 12 months
after the date on which it is made;

     

                   (ii)
the election must be made at least 12 months prior to the date the payment is
scheduled to be made. For installment payments, the election must be made at
least 12 months prior to the date the first payment in such installment was
scheduled to be made; and

     

                   (iii)
the subsequent deferral election must delay the payment for at least five years
from the date the payment would otherwise have been made. For installment
payments, the delay is measured from the date the first payment was scheduled to
be made.

     

              A
Participant may make only one subsequent change with respect to deferrals made
for a specific Plan Year.

     

              (f)
Initial elections and subsequent elections, if any, may be made in writing or
through an electronic medium such as a website enrollment window or though an
email enrollment form or through a Plan Administrator, provided that there is
sufficient record of when such election is made.

     

         3.3 Elections as to Deemed
Investment Choices.

     

              (a)
Prior to the date on which the actual deferral of an Annual Incentive Amount in
respect of Plan Year is made by the Company, a Participant shall make an
election regarding how such Annual Incentive Amount shall be deemed to be
invested for purposes of determining the amount of earnings or losses to be
credited to the Participant’s Accounts. If no such election is made in respect
of Annual Incentive Amounts deferred in any Plan Year, then (i) the Participant
shall be deemed to have made the same election made by such Participant in
respect of the most recent Plan Year in which there was a deferral of Annual
Incentive Amounts, and (ii) if no election contemplated by clause (i) has been
made, the deferred Annual Incentive Amounts shall be deemed invested in the most
risk-free type of Fund, as determined by the Committee in its sole and absolute
discretion.

     

              (b)
The Committee shall select from time to time, in its sole and absolute
discretion, investments of various types that shall be communicated to the
Participant. The Investment Rate applicable to each Fund shall be used to
determine the amount of earnings or losses to be credited to Participant’s Bonus
Deferral Subaccount and Company Matching Contribution Subaccount. Deemed
investment choices shall not be changed unless the Committee promulgates a rule
of general application permitting such changes.

     

    7

     

    

    
    

    ARTICLE IV
DEFERRAL ACCOUNTS

     

         4.1 Bonus Deferral
Subaccount. The Company or Plan Administrator shall establish and
maintain a Bonus Deferral Subaccount for each Participant under the Plan. Each
Participant’s Bonus Deferral Subaccount shall be further divided into separate
subaccounts (“investment fund subaccounts”), each of which corresponds to a Fund
elected by the Participant. A Participant’s Bonus Deferral Subaccount shall be
credited as follows:

     

              (a) on
the day the amounts are withheld and/or deferred from a Participant’s Annual
Incentive Amounts, with an amount equal to the Annual Incentive Amounts deferred
by the Participant; and

     

              (b) on
a daily basis, each investment fund subaccount of a Participant’s Bonus Deferral Subaccount shall be credited with earnings
or losses based on the applicable Investment Rate.

     

         4.2 Company Matching
Contributions. The Company shall match 50% of the first $20,000 of Annual
Incentive Amounts deferred by a Participant with respect to a Plan Year, but
only if the Participant has elected for such Annual Incentive Amounts to be
distributed following the Participant’s Separation from Service; provided, however, that this matching
contribution shall not be made with respect to any Participant who is either (i)
an “officer” of the Company (as such term is defined under Rule 3b-7 of the
Exchange Act) or (ii) a Corporate Vice President of the Company, in either case,
determined as of the first day of the Plan Year.

     

         4.3 Company Matching
Contribution Subaccount. The Company or Plan Administrator shall
establish and maintain a Company Matching Contribution Subaccount for each
Participant who receives a Company Matching Contribution under the Plan. A
Participant’s Company Matching Contribution Subaccount shall be further divided
into separate investment fund subaccounts, each of which corresponds to a Fund
elected by the Participant. A Participant’s Company Matching Contribution
Subaccount shall be credited as follows:

     

              (a) on
the day such amount is deemed contributed, with an amount equal to the Company
Matching Contribution Amount, if any; and

     

              (b) on
a daily basis, each investment fund subaccount of a Participant’s Company
Matching Contribution Subaccount shall be credited with earnings or losses based
on the applicable Investment Rate.

     

    ARTICLE V
VESTING

     

         5.1 Vesting. A
Participant shall be 100% vested at all times in his or her Bonus Deferral
Subaccount. A Participant shall vest in his or her Company Matching Contribution
Account at the time such Participant either (i) attains 65 years of age, or (ii)
attains 55 years of age, with ten (10) or more years of service credited with
the Company and its subsidiaries. The Committee in its sole discretion may
credit a Participant with additional periods of service solely for purposes of
vesting in his or her Company Matching Contribution Account.

     

    8

     

    

    
    

         5.2 Vesting Upon Death or
Disability. Upon death or the Disability of a Participant, the
Participant shall be 100% vested in his or her Company Matching Contribution
Subaccount.

     

    ARTICLE VI
DISTRIBUTIONS

     

              Distributions
from the Plan shall be made only in accordance with this Article VI. All
distributions shall be in cash.

     

         6.1 Distribution of Accounts
While Employed.

     

              (a)
Scheduled
Distributions.

     

                   (1)
In respect of all Distributable Amounts payable in a lump sum on an In-Service
Distribution Date, the value thereof shall be determined as of the ninth day of
the month of September in which the In-Service Distribution Date occurs, and the
distribution thereof shall be made as soon as administratively possible (and in
no event later than 90 days) thereafter. In respect of all Distributable Amounts
payable in installments on an In-Service Distribution Date, all installments
shall be valued as of the ninth day of the month of September in each applicable
year, and the distribution thereof shall be made as soon as administratively
practicable (and in no event later than 90 days) thereafter.

     

                   (2)
In the event a Participant has a Separation from Service prior to such
Participant’s In-Service Distribution Date, then the provisions of Section 6.2
shall instead apply to such distribution.

     

              (b)
Except as provided in Section 6.3, no unscheduled in-service distributions are
permitted.

     

         6.2 Distribution of Accounts
after Separation from Service. If a Participant has a Separation from
Service, the provisions of this Section 6.2 shall apply to the distribution of
the Participant’s Accounts.

     

              (a)
Separation from
Service.

     

                   (1)
Age 55 with Ten Years
of Service, or Age 65. At the time of the Participant’s Separation from
Service, if the Participant has either (i) attained age 55 and has completed ten
years of service, or (ii) attained age 65, then the Participant’s Account shall
be distributed in accordance with the Participant’s elections.

     

    9

     

    

    
    

                   (A)
Lump Sum. For
Distributable Amounts for which the Participant has elected (or be deemed to
have elected) a lump sum, the value thereof shall be determined as of the ninth
day of the seventh month following the Separation from Service, and the
distribution thereof shall be made as soon as administratively possible (and in
no event later than 90 days) thereafter. If (i) a Participant has made an
irrevocable election to defer his Annual Incentive Amounts, (ii) such Annual
Incentive Amounts are deferred after the Participant’s Account has been
distributed, and (iii) the Participant had elected to receive a lump sum
distribution, then the additional Account balance shall be valued and
distributed on the ninth day of the month immediately following the date the
Annual Incentive Amounts are deferred.

     

                   (B)
Installment
Payments. For Distributable Amounts for which the Participant has elected
installments, (i) the first installment shall be valued as of the ninth day of
the seventh month following the Separation from Service, and the distribution
thereof shall be made as soon as administratively possible (and in no event
later than 90 days) thereafter, and (ii) each subsequent installment shall be
valued as of the ninth day of September of each of the following calendar years,
and the distribution thereof shall be made as soon as administratively possible
(and in no event later than 90 days) thereafter. For the avoidance of doubt,
under no circumstances shall two installments be paid in a single calendar year.
If (x) a Participant has made an irrevocable election to defer his Annual
Incentive, (y) such Annual Incentive is deferred after the Participant’s Account
has started to be distributed, and (z) the Participant had elected to receive
installment payments, the additional deferral shall be added to the
Participant’s balance in his Bonus Deferral Subaccount and shall be distributed
in accordance with the installment election.

     

                   (2)
All other Separations
from Service. If, at the time of the Participant’s Separation from
Service, a Participant has neither (i) attained age 55 and has completed ten
years of service nor (ii) attained age 65, then the Participant’s entire Account
balance shall be distributed in a single lump sum. In any such case, the
Distributable Amounts shall be
valued as of the ninth day of the seventh month following the Separation from
Service, and the distribution thereof shall be made as soon as administratively
possible (and in no event later than 90 days) thereafter.

     

              (b)
Death. In the
case of the death of a Participant, either while employed by the Company or
prior to distribution of the Participant’s entire Account balance, the
Participant’s Account balance shall be distributed to the Participant’s
Beneficiary as soon as administratively possible and in no event later than 90
days following the death of the Participant. The value of the Participant’s
Account shall be determined as of the date on which the Participant
dies.

     

              (c)
Disability. In
the case of the Disability of a Participant prior to the commencement of
distribution of the Participant’s Account balance, the Participant’s Account
balance shall be distributed to the Participant in a lump sum as soon as
administratively possible (and in no event later than 90 days) after it has been
determined that the Participant suffers from a
Disability. The value of the Participant’s Account shall be determined as of the
date on which it has been determined that the Participant suffers from a
Disability.

     

    10

     

    

    
    

         6.3 Unforeseeable
Emergency. A Participant shall be permitted to elect a distribution from
his Bonus Deferral Subaccount and/or his vested Company Matching Contribution
Subaccount, if any, prior to the date the Accounts were otherwise to be
distributed in the event of an Unforeseeable Emergency, subject to the following
restrictions:

     

              (a)
the election to take a distribution due to an Unforeseeable Emergency shall be
made by requesting such a distribution in writing to the Committee, including
the amount requested and a description of the need for the
distribution;

     

              (b)
the Committee shall make a determination, in its sole discretion, that the
requested distribution is on account of an Unforeseeable Emergency;
and

     

              (c)
the Unforeseeable Emergency cannot be relieved (i) through reimbursement or
compensation by insurance or otherwise, (ii) by liquidation of the Participant’s
assets, to the extent the liquidation of assets would not itself cause severe
financial hardship, or (iii) by cessation of deferrals under this
Plan.

     

              The
amount determined by the Committee as distributable due to an Unforeseeable
Emergency shall be paid within 30 days after the request for the distribution is
approved by the Committee. The value of the Participant’s Account shall be
determined as of the date on which the distribution request was
made.

     

         6.4 Valuation Date. In the event
that any valuation date contemplated by Section 6.1 or Section 6.2 is not a
business day, then the valuation date shall be the immediately preceding
business day.

     

    ARTICLE VII
ADMINISTRATION

     

         7.1 Committee. A
Committee shall be appointed by, and serve at the pleasure of, the Compensation
Committee. The number of members comprising the Committee shall be determined by
the Compensation Committee, which may from time to time vary the number of
members. A member of the Committee may resign by delivering a written notice of
resignation to the Compensation Committee. The Compensation Committee or the
Board may remove any member, with or without cause, by delivering a copy of its
resolution of removal to such member.

     

    11

     

    

    
    

         7.2 Committee Action. The
Committee shall act at meetings by affirmative vote of a majority of the members
of the Committee. Any action permitted to be taken at a meeting may be taken
without a meeting if, prior to such action, a written consent to the action is
signed by a majority of members of the Committee and such written consent is
filed with the minutes of the proceedings of the Committee. A member of the
Committee shall not vote or act upon any matter which relates solely to himself
or herself as a Participant. Any member of the Committee may execute any
certificate or other written direction on behalf of the Committee.

     

         7.3 Powers of the
Committee. The Committee, on behalf of the Participants and their
Beneficiaries, shall enforce the Plan in accordance with its terms, shall be
charged with the general administration of the Plan, and shall have all powers
necessary to accomplish its purposes, including, but not limited to, the
following:

     

              (a) to
select the Funds;

     

              (b) to
construe and interpret the terms and provisions of this
Plan;

     

              (c) to
compute and certify to the amount and kind of benefits payable to Participants
and their Beneficiaries;

     

              (d) to
maintain all records that may be necessary for the administration of the
Plan;

     

              (e) to
provide for the disclosure of all information and the filing or provision of all
reports and statements to Participants, Beneficiaries or governmental agencies
as shall be required by law;

     

              (f) to
make and publish such rules for the regulation of the Plan and procedures for
the administration of the Plan as are not inconsistent with the terms
hereof;

     

              (g) to
appoint a Plan Administrator, or any other agent, and to delegate to them such
powers and duties in connection with the administration of the Plan as the
Committee may from time to time prescribe; and

     

              (h) to
take all actions necessary for the administration of the
Plan.

     

         7.4 Construction and
Interpretation. The Committee shall have full discretion to construe and
interpret the terms and provisions of this Plan, which interpretations or
construction shall be final and binding on all parties, including but not
limited to the Company and any Participant or Beneficiary.

     

         7.5 Compensation, Expenses and
Indemnity.

     

              (a)
The members of the Committee shall serve without compensation for their services
hereunder.

     

              (b)
The Committee is authorized at the expense of the Company to employ such legal
counsel as it may deem advisable to assist in the performance of its duties
hereunder. Expenses and fees in connection with the administration of the Plan
shall be paid by the Company.

     

    12

     

    

    
    

    ARTICLE VIII
MISCELLANEOUS

     

         8.1 Unsecured General
Creditor. Participants and their Beneficiaries, heirs, successors, and
assigns shall have no legal or equitable rights, claims, or interest in any
specific property or assets of the Company. No assets of the Company shall be
held in any way as collateral security for the fulfilling of the obligations of
the Company under this Plan. Any and all of the Company’s assets shall be, and
remain, the general unpledged, unrestricted assets of the Company. The Company’s
obligation under the Plan shall be merely that of an unfunded and unsecured
promise of the Company to pay money in the future, and the rights of the
Participants and Beneficiaries shall be no greater than those of unsecured
general creditors. It is the intention of the Company that this Plan be unfunded
for purposes of the Code and for purposes of Title I of ERISA.

     

         8.2 Restriction Against
Assignment. The Company shall pay all amounts payable hereunder only to
the person or persons designated by the Plan and not to any other person or
corporation. No part of a Participant’s Accounts shall be liable for the debts,
contracts, or engagements of any Participant, his or her Beneficiary, or
successors in interest, nor shall a Participant’s Accounts be subject to
execution by levy, attachment, or garnishment or by any other legal or equitable
proceeding, nor shall any such person have any right to alienate, anticipate,
sell, transfer, commute, pledge, encumber, or assign any benefits or payments
hereunder in any manner whatsoever.

     

         8.3 Withholding. There
shall be deducted from each payment made under the Plan or any other
compensation payable to the Participant (or Beneficiary) all taxes which are
required to be withheld by the Company in respect to such payment or this Plan.
The Company shall have the right to reduce any payment (or compensation) by the
amount of cash sufficient to provide the amount of said taxes.

     

         8.4 Amendment, Modification,
Suspension or Termination. The Compensation Committee may amend, modify, suspend or terminate the Plan
in whole or in part, except that no amendment, modification, suspension or
termination shall have any retroactive effect to reduce any amounts allocated to
a Participant’s Accounts. The Committee may also amend the Plan, provided that
the Committee may only adopt amendments that (i) do not have a negative material
financial impact on the Company; or (ii) are required by tax or legal statutes,
regulations or pronouncements.

     

         8.5 Governing Law. Except
to extent preempted by Federal law, this Plan shall be governed by and construed
in accordance with the internal laws of the State of Delaware applicable to
contracts made and performed wholly within the State of Delaware, without giving
effect to the conflict of laws provisions thereof.

     

         8.6 Receipt or Release.
Any payment to a Participant or the Participant’s Beneficiary in accordance with
the provisions of the Plan shall, to the extent thereof, be in full satisfaction
of all claims against the Committee and the Company. The Committee may require
such Participant or Beneficiary, as a condition precedent to such payment, to
execute a receipt and release to such effect.

     

    13

     

    

    
    

         8.7 Limitation
of Rights and Employment Relationship. Neither the establishment of the
Plan nor any modification thereof, nor the creating of any fund or account, nor
the payment of any benefits shall be construed as giving to any Participant, or
Beneficiary or other person any legal or equitable right against the Company
except as provided in the Plan; and in no event shall the terms of employment of
any Employee or Participant be modified or in any way be affected by the
provisions of the Plan.

     

         8.8 Headings. Headings
and subheadings in this Plan are inserted for convenience of reference only and
are not to be considered in the construction of the provisions
hereof.

     

         8.9 Section 409A. All
provisions of the Plan shall be construed and interpreted in a manner consistent
with the requirements for avoiding taxes or penalties under Section 409A of the
Code (“Section
409A”). If the Committee determines that any amounts payable hereunder
may be taxable to a Participant under Section 409A, the Company may (i) adopt
such amendments to the Plan and appropriate policies and procedures, including
amendments and policies with retroactive effect, that the Committee determines
necessary or appropriate to preserve the intended tax treatment of the benefits
provided by the Plan and/or (ii) take such other actions as the Committee
determines necessary or appropriate to avoid or limit the imposition of an
additional tax under Section 409A; provided, that the Company shall have no
liability to a Participant or Beneficiary with respect to the tax imposed by
Section 409A.

     

              As
evidence of the amendment and restatement of this Plan, effective July 1, 2010,
by Automatic Data Processing, Inc., this document is signed by a duly authorized
officer.

     

    
      	
            	AUTOMATIC DATA PROCESSING,
      INC.
	
            	 
	
            	 
	
            	By:  	/s/ Michael A. Bonarti
	
            	 	Name: Michael A.
      Bonarti
	
            	 	Title: Vice President,
      General Counsel
	
            	 	and
  Secretary

    

    14

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