Document:

EX 10.1 - Guarantee of Collection

GUARANTEE OF COLLECTION

THIS GUARANTEE OF COLLECTION (this “Guarantee”) is made as of April 30, 2013, by PEPL HOLDINGS, LLC, a Delaware limited liability company (the “Guarantor”) to REGENCY ENERGY PARTNERS LP, a Delaware limited partnership (“Regency”), and REGENCY ENERGY FINANCE CORP., a Delaware corporation (“Regency Energy Finance Corp” and, together with Regency, the “Regency Issuers”) to provide a guarantee of collection, on the terms set forth herein, for the benefit of the holders (the “Holders”) of the Supported Debt (as hereinafter defined) and the trustee (the “Trustee”) under the Indenture dated April 30, 2013 (collectively, the “Senior Notes Indenture”) with respect to the $600 million aggregate principal amount of the senior notes comprised of 4.500% Senior Notes due 2023 (collectively, the “Supported Debt”).  The Guarantor and Regency may hereinafter be referred to individually as a “Party” or collectively as the “Parties.”    

R E C I T A L S

WHEREAS, Southern Union Company, a Delaware corporation (“Southern Union”), Regency, and Regency Western G&P LLC, a Delaware limited liability company (“Regency SPV”), and, solely for limited purposes, ETP Holdco Corporation, a Delaware corporation, Energy Transfer Equity, L.P., a Delaware limited partnership, Energy Transfer Partners, L.P., a Delaware limited partnership, and ETC Texas Pipeline, LTD., a Texas limited partnership, have entered into that certain Contribution Agreement, dated as of February 27, 2013, as amended (the “Contribution Agreement”), pursuant to which Southern Union has agreed to contribute to Regency (through Regency SPV) 100% of the ownership interests in Southern Union Gathering Company, LLC, a Delaware limited liability company (the “Contribution”);
WHEREAS, on April 30, 2013, the Regency Issuers issued the Supported Debt; and
WHEREAS, in furtherance of the Contribution, the Guarantor desires to enter into this Guarantee and be bound by the terms and conditions set forth herein.

A G R E E M E N T S

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties agree as follows:
1.     Guarantee. Subject to the terms herein, the Guarantor guarantees to the Holders and the Trustee the full and prompt collection of the principal amount due under the Supported Debt, but not any accrued and unpaid interest thereon or any fees or other amounts of any kind whatsoever that shall be due to the Holders by the Regency Issuers (the “Liabilities”).  Notwithstanding anything herein to the contrary, the obligations of Guarantor under this Guarantee are obligations solely of Guarantor and do not constitute a debt or obligation of (and no recourse shall be made with respect to) Southern Union, any of its respective affiliates (other than Guarantor), or any shareholder, partner, member, officer, director or employee of Southern Union or such affiliates (collectively, the “Non-Recourse Parties”).  No action under or in connection with this Guarantee shall be brought against any Non-Recourse Party, and no judgment for any deficiency upon the obligations hereunder shall be obtainable against any Non-Recourse Party.

2.     Guarantee of Collection. This is a guarantee of collection only, and not a guarantee of payment.  Notwithstanding any other term or condition of this Guarantee to the contrary, the Guarantor shall not be obligated to make any payment pursuant to this Guarantee unless and until each of the following has occurred: (i) the Trustee or other Holder must use commercially reasonable efforts to obtain judgment against Regency, 

(ii) the Trustee or other Holder must use commercially reasonable efforts to execute on any judgment obtained against Regency, (iii) following execution of any such judgment, a portion of the sums due under the Supported Debt constituting Liabilities must remain unpaid, (iv) if no bankruptcy proceeding has been commenced with respect to Regency, the Trustee or other Holder shall have brought an action in a court of law having proper subject matter jurisdiction against Regency to collect such Liabilities, obtained a final and non-appealable judgment by such court against Regency in respect of such Liabilities and levied execution of such judgment against the property of Regency, and as a result of such execution received less than payment in full in cash or property of such Liabilities, and (v) if a bankruptcy proceeding has been commenced with respect to Regency, the closing of the bankruptcy proceeding after its administration under 11 U.S.C. Section 350(a) shall have occurred and the Trustee or other Holder shall have received, after all distributions contemplated by such bankruptcy proceeding or otherwise, less than payment in full in cash or property in respect of such Liabilities.  For these purposes, the value of any payment made in property shall be equal to the fair market value of such property at the time of such payment.

3.     Termination of Guarantee. This Guarantee shall remain in effect and will not terminate until the Liabilities have been paid in full. 

4.     Waivers. The Guarantor waives (i) notice of acceptance of this Guarantee, (ii) all presentments and protests, and (iii) notice of dishonor. 

5.     Obligations Absolute. Except as set forth in this Guarantee, the Guarantor's obligations are in all respects absolute and unconditional and will not be impaired, modified, released or limited by any occurrence or condition whatsoever, including, without limitation, (i) any modification, discharge, renewal or extension of the Liabilities or the Supported Debt, or any amendment, modification or stay of the Trustee's or other Holder's rights under the Supported Debt which may occur in any bankruptcy or reorganization case or proceeding concerning the Regency Issuers, whether permanent or temporary and whether or not assented to by the Trustee or other Holder, (ii) any notice of withdrawal of this Guarantee, at any time and from time to time before, at or after maturity of the Supported Debt, (iii) any determination that any signatures on behalf of the Regency Issuers on the Supported Debt are not genuine or that the Supported Debt is not the legal, valid and binding obligation of the Regency Issuers, or (iv) any defenses that the Regency Issuers may have as to any sums due under the Supported Debt. 

6.     Waiver of Subrogation. Until the Liabilities have been paid in full, the Guarantor irrevocably waives, relinquishes and renounces any right of subrogation, contribution, indemnity, reimbursement or any claim whatsoever which the Guarantor may have against the Regency Issuers or any other guarantors liable on the Supported Debt arising out of, or in any way connected with, the documents evidencing, guaranteeing or otherwise relating to the Supported Debt (the “Supported Debt Documents”). The Guarantor will not assert any such claim against the Regency Issuers or any such guarantor, in any proceeding, legal or equitable, including any bankruptcy, insolvency or reorganization proceeding, before the Trustee and the Holders are paid in full for the Liabilities. This provision will inure to the benefit of and will be enforceable by the Trustee, the Holders, the Regency Issuers and any such guarantors, and their successors and assigns, including any trustee in bankruptcy or debtor-in-possession. This provision will not prevent the Guarantor from asserting a claim against the Regency Issuers or any such guarantors once the Liabilities have been fully paid to the Trustee and the Holders. Once the Liabilities have been paid in full, if the Guarantor has made any payment to the Trustee and the Holders under this Guarantee, then the Trustee and the Holders will assign to the Guarantor, to the extent of such payment, the Trustee's and the Holders' interest in the Supported Debt Documents and any judgments against the Regency Issuers. 

7.     Reinstatement of Guaranteed Liabilities. The Guarantor acknowledges and agrees that the Guarantor's obligations hereunder shall apply to and continue with respect to any amount paid to the Trustee 

and the Holders on the Liabilities which is subsequently recovered from the Trustee and the Holders for any reason whatsoever (including, without limitation, as a result of any bankruptcy, insolvency or fraudulent conveyance proceeding), notwithstanding the fact that the Liabilities may have been previously paid in full or this Guarantee terminated, or both.  

8.     Assignment. The Trustee and the Holders may, from time to time, whether before or after any withdrawal of this Guarantee, without notice to the Guarantor, assign or transfer any or all of the Liabilities or any interest therein; and, notwithstanding any such assignment or transfer or any subsequent assignment or transfer thereof, such Liabilities shall be and remain Liabilities for purposes of this Guarantee, and each and every immediate and successive assignee or transferee of any of the Liabilities or of any interest therein shall, to the extent of the interest of such assignee or transferee in the Liabilities, be entitled to the benefits of this Guarantee to the same extent as if such assignee or transferee were the Trustee or other Holder; provided, however, that, unless the Trustee or Holders shall otherwise consent in writing, the Trustee and the Holders shall have an unimpaired right, prior and superior to that of any such assignee or transferee, to enforce this Guarantee, for the benefit of the Trustee and the Holders, as to that portion of the Liabilities which the Trustee and the Holders have not assigned or transferred. 

9.     Cumulative Rights; No Waiver. Each and every right granted to the Trustee and the Holders hereunder or under any other document delivered hereunder or in connection herewith, or allowed it by law or equity, shall be cumulative and may be exercised from time to time subject only to the limitations set forth in this Guarantee. No failure on the part of the Trustee and the Holders to exercise, and no delay in exercising, any right shall operate as a waiver thereof, nor shall any single or partial exercise by the Trustee or other Holder of any right preclude any other or future exercise thereof or the exercise of any other right. 

10.     Interpretation and Construction. Each reference herein to the Trustee and the Holders shall be deemed to include their respective successors and assigns, and each reference to the Regency Issuers and the Guarantor and any pronouns referring thereto as used herein shall be construed in the singular or plural as the context may require and shall be deemed to include the successors and assigns of the Regency Issuers and the Guarantor, all of whom shall be bound by the provisions hereof.  

11.     Continuing Guarantee. Subject to the limitations herein, this instrument is intended to be a full, complete and continuing guarantee to the Trustee and the Holders to the extent of and for the Liabilities owing by the Regency Issuers to the Trustee and the Holders from time to time and to be valid and continuous without other or further notice to the Guarantor, notwithstanding the dissolution of the Regency Issuers or any other guarantor, until notice in writing of withdrawal of this Guarantee, signed by the parties hereto or any of them, has actually been given to the Trustee and the Holders, and then only as to the party or parties signing such notice and to transactions subsequent to the time of such notice; provided, however, that no such notice of withdrawal shall affect or impair any of the agreements and obligations of the Guarantor hereunder with respect to any and all Liabilities existing at the time of actual receipt of such notice by the Trustee and the Holders until paid in full; and shall not affect or impair the Trustee's or other Holder's right to recover all expenses paid or incurred by the Trustee or other Holder endeavoring to enforce this Guarantee against the Guarantor. All of the agreements and obligations of the Guarantor under this Guarantee shall, notwithstanding any such notice of withdrawal, remain in effect until all such Liabilities and all such expenses shall have been paid in full. 

12.     Subsequent Guaranties. No subsequent guarantee by the Guarantor or any other person of the Liabilities shall be deemed to be in lieu of or to supersede this Guarantee, unless otherwise expressly provided therein.  

13.     Covenants of Regency.
(a)    Repayment or Refinancing of Supported Debt.  Without the prior written consent of the Guarantor, Regency shall not be entitled, prior to the third (3rd) anniversary of the date of this Guarantee, to (i) repay any principal amount of the Supported Debt or (ii) refinance through an exchange offer or otherwise all or any portion of the Supported Debt, unless, in the case of (ii) above, Regency (x) simultaneously replaces such Supported Debt with at least an equivalent amount of new indebtedness (such new indebtedness, the “Refinancing Supported Debt”) with substantially similar covenants providing for no earlier amortization of principal than the amortization contemplated by the applicable maturity date of any such Supported Debt (any such date, a “Maturity Date”) and (y) permits the Guarantor at its sole discretion to provide a guarantee of collection of the Refinancing Supported Debt, on the terms and subject to the conditions set forth herein.  If all or any portion of any Supported Debt or Refinancing Supported Debt is repaid or refinanced after the third (3rd) anniversary of the date of this Guarantee and prior to the applicable Maturity Date, the Guarantor may at its sole discretion enter into and provide for a guarantee of collection and/or of payment for the principal amount of all or a portion of any debt of Regency.  
(b)    Extinguishment of Supported Debt.  Regency shall use commercially reasonable efforts to extinguish any applicable outstanding Supported Debt on the Maturity Date.  Regency shall release the Guarantor from any liability or obligation under this Guarantee related to the Supported Debt on the applicable Maturity Date for such Supported Debt and shall enter into and execute such documents and instruments as the Guarantor may reasonably request in order to evidence such release.
(c)    Regency Energy Finance Corp.  Prior to the Maturity Date of the Supported Debt, Regency Energy Finance Corp shall continue to have no material assets or any liabilities, other than as a co-issuer of debt securities of Regency.
14.    Covenants of Guarantor.
(a)    Net Worth.  The Guarantor hereby represents to Regency that its existing net worth is equal to or greater than the aggregate principal amount of the Supported Debt and in the event the Guarantor disposes of, transfers, or conveys any of its assets, except with respect to distributions permitted in clause (b) below, it shall promptly replace such assets with assets having a net fair market value (after taking into account any indebtedness to be assumed by the Guarantor in connection with any such transaction) substantially equivalent to or greater than the net fair market value (after taking into account any indebtedness to be assumed by the Guarantor in connection with any such transaction) of the disposed assets. 
(b)    Distributions.  The Guarantor shall be entitled to make distributions of available cash with respect to its equity interests provided the Guarantor shall not make a distribution of cash or property to the extent such distribution would constitute a Fraudulent Conveyance (as defined in Section 16) in light of the Guarantor's obligations under this Guarantee or otherwise impair the Guarantor's ability to satisfy its obligations under this Guarantee.
15.    Covenants of Regency and Guarantor to Maintain Tax Treatment.  For so long as this Guarantee is outstanding, Regency and the Guarantor hereby agree that:
(a)    Unless otherwise required by law, it is the intent of the Parties to treat Southern Union as the sole partner bearing the economic risk of loss with respect to the Supported Debt pursuant to Treasury Regulation § 1.752-2; provided that, notwithstanding the foregoing, Regency shall not be required to take such position in any taxable year to the extent Regency determines in good faith after consulting with tax counsel that such position is not supported by current law or actual facts and circumstances.

(b)    It is the intent of the Parties, that the distribution to Southern Union by Regency of the Cash Consideration (as such term is defined in the Contribution Agreement) be treated as a distribution under Section 731 of the Internal Revenue Code of 1986, as amended (the “Code”), and neither Regency nor any partner of Regency shall take a position inconsistent with such treatment unless otherwise required by law; provided that, notwithstanding the foregoing, Regency shall not be required to take such position in any taxable year to the extent Regency determines in good faith after consulting with tax counsel that such position is not supported by current law or actual facts and circumstances.
(c)    Neither Regency nor the Guarantor shall (i) modify this Guarantee so as to eliminate or limit the ultimate recourse liability of the Guarantor with respect to the Supported Debt, or (ii) except as required by the Senior Notes Indenture, cause or permit any other corporation, partnership, person or entity to assume, guarantee, indemnify against or otherwise incur any liability with respect to any Supported Debt.
(d)    In the event a subsidiary of Regency that is regarded as separate and apart from Regency for U.S. federal income tax purposes, including but not limited to Pueblo Holdings, Inc. and Pueblo Midstream Gas Corporation, becomes a Subsidiary Guarantor (as such term is defined in the Senior Notes Indenture) of the Supported Debt or otherwise guarantees the Supported Debt, the Guarantor agrees to indemnify such subsidiary for any amounts that the subsidiary is required to pay pursuant to its guarantee of the Supported Debt.   
(e)    In the event a partner of Regency guarantees or otherwise incurs any liability with respect to the Supported Debt, the Guarantor agrees to indemnify such partner for any amounts that the partner is required to pay pursuant to its guarantee or liability with respect to the Supported Debt.
16.    Fraudulent Conveyance.  Notwithstanding any provision of this Guarantee to the contrary, it is intended that this Guarantee not constitute a Fraudulent Conveyance (as defined below).  Consequently, the Guarantor agrees that if this Guarantee would, but for the application of this sentence, constitute a Fraudulent Conveyance, this Guarantee shall be valid and enforceable only to the maximum extent that would not cause this Guarantee to constitute a Fraudulent Conveyance, and this Guarantee shall automatically be deemed to have been amended accordingly at all relevant times.  For purposes of this Section 16, the term “Fraudulent Conveyance” means a fraudulent conveyance under Section 548 of the United States Bankruptcy Code or a fraudulent conveyance or fraudulent transfer under the provisions of any applicable fraudulent conveyance or fraudulent transfer law or similar law of any state, nation or other governmental unit, as in effect from time to time.
17.    Third-Party Beneficiaries.  This Guarantee is for the benefit only of the Guarantor, the Regency Issuers, the Trustee, the Holders and the subsidiaries and partners of Regency described in Sections 15(d) and 15(e), and is not intended to confer upon any other third party any rights or remedies hereunder, and shall not be construed as for the benefit of any other third party.
18.    Notices.  Any and all notices, requests or other communications hereunder shall be given in writing and delivered by:  1) regular, overnight, registered or certified mail (return receipt requested), with first class postage prepaid; 2) hand delivery; 3) facsimile transmission; or 4) overnight courier service, if to the Guarantor, at the following address or facsimile number for the Guarantor:
PEPL Holdings, LLC
3738 Oak Lawn Avenue
Dallas, Texas 75219
Attention:  General Counsel
Facsimile Number:  (214) 981-0701

if to the Regency Issuers, at the following address or facsimile number:

Regency GP LLC
2001 Bryan Street, Suite 3700
Dallas, Texas 75201
Attention:  Legal Department
Facsimile Number:  214-840-5515

or at such other address or number as shall be designated by the Guarantor or Regency in a notice to the other Party to this Guarantee.  All such communications shall be deemed to have been duly given:  (A) in the case of a notice sent by regular mail, on the date actually received by the addressee; (B) in the case of a notice sent by registered or certified mail, on the date receipted for (or refused) on the return receipt; (C) in the case of a notice delivered by hand, when personally delivered; (D) in the case of a notice sent by facsimile, upon transmission subject to telephone confirmation of receipt; and (E) in the case of a notice sent by overnight mail or overnight courier service, the date delivered at the designated address, in each case given or addressed as aforesaid.
19.    Separability.  Should any clause, sentence, paragraph, subsection or section of this Guarantee be judicially declared to be invalid, illegal or unenforceable in any respect, such decision will not have the effect of invalidating or voiding the remainder of this Guarantee, and the part or parts of this Guarantee so held to be invalid, illegal or unenforceable will be deemed to have been stricken herefrom, and the remainder will have the same force and effectiveness as if such stricken part or parts had never been included herein.
20.    Counterparts.  This Guarantee may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signatures are physically attached to the same counterpart.  Delivery of an executed signature page by facsimile or electronic transmission shall be as effective as delivery of a manually executed counterpart.
21.    Governing Law. THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

22.     Consent to Jurisdiction; Waiver of Jury Trial.  The Guarantor irrevocably submits to the exclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York County, and any appellate court from any thereof, for the purposes of any proceeding arising out of this Guarantee or the transactions contemplated hereby (and agrees that no such proceeding relating to this Guarantee or the transactions contemplated hereby shall be brought by it except in such courts).  The Guarantor irrevocably and unconditionally waives (and agrees not to plead or claim) any objection to the laying of venue of any proceeding arising out of this Guarantee or the transactions contemplated hereby in any New York State court or federal court of the United States of America sitting in New York County, and any appellate court from any thereof, or that any such proceeding brought in any such court has been brought in an inconvenient forum.  The Guarantor also agrees that any final and non appealable judgment against it in connection with any proceeding shall be conclusive and binding on it and that such award or judgment may be enforced in any court of competent jurisdiction, either within or outside of the United States.  A certified or exemplified copy of such award or judgment shall be conclusive evidence of the fact and amount of such award or judgment.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY 

ACTION OR PROCEEDING TO ENFORCE OR TO DEFEND ANY RIGHTS UNDER THIS GUARANTEE SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

23.     Entire Agreement. This Guarantee constitutes the entire agreement with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, between the parties related thereto.

[Remainder of page intentionally left blank; signature page follows] 

IN WITNESS WHEREOF, the undersigned have executed this Guarantee as of the date and year first written above. 

PEPL HOLDINGS, LLC

By:      /s/ Martin Salinas, Jr.            
Name:  Martin Salinas, Jr.            
Title:      Chief Financial Officer        

REGENCY ENERGY PARTNERS LP

		
	By:
	Regency GP LP, its general partner

		
	By:  
	Regency GP LLC, its general   partner

By:  /s/ Thomas E. Long    
Name:  Thomas E. Long
Title:  Vice President and Chief Financial Officerprxl10.1 Nonqualified Deferred Compensation Plan

PAREXEL International
Nonqualified Deferred Compensation Plan

As Amended and Restated, effective January 1, 2009

TABLE OF CONTENTS
	
				
	 
	 
	Page
	

	ARTICLE I
	PURPOSE AND SCOPE
	1
	

	ARTICLE II
	DEFINITIONS
	1
	

	ARTICLE III
	PARTICIPATION
	3
	

	ARTICLE IV
	BENEFITS
	4
	

	ARTICLE V
	TERMINATION OF EMPLOYMENT
	6
	

	ARTICLE VI
	ADMINISTRATION
	7
	

	ARTICLE VII
	PAYMENT OF RETIREMENT BENEFITS
	8
	

	ARTICLE VIII
	GENERAL PROVISIONS
	9
	

	APPENDIX A
	DEFERRAL ELECTION RULES
	13
	

ARITCLE I
PURPOSE AND SCOPE
		
	1.1
	PURPOSE

The purpose of this Plan is to provide retirement benefits for certain selected Executives of the Employer, in combination with any other retirement benefit plans, agreements or arrangements, whether qualified or otherwise, offered by the Employer.
		
	1.2
	SCOPE

This Plan is intended as a statement of agreement between certain selected Executives under which, in consideration of the continued satisfactory service of said Executives, the Employer agrees to pay, when due, certain retirement and other benefits subject to the terms and conditions of the Plan.  This Plan shall be binding on the Employer and any successors to the business of the Employer and shall inure to the benefit of the Participants and, if applicable, their spouses and beneficiaries.
Nothing herein contained, and no action taken pursuant to the provisions of this Plan, shall create or be construed to create a trust of any kind nor a fiduciary relationship between the Employer and any Executive, Executive’s surviving spouse or dependents, Executive’s estate or Executive’s beneficiaries or any other person.
Any reserves or liabilities set up on the Employer’s books of account with respect to any retirement or other benefits to be paid under the Plan shall continue for all purposes to be a part of the general funds or assets of the Employer.  To the extent that any person acquires a right to receive payments from the Employer under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Employer.
ARTICLE II
DEFINITIONS
Wherever used in this Plan, the following terms shall have the following meanings, unless a different meaning is clearly required by the context.  In addition to the terms defined in this Article II, other terms are defined when first used in later sections of the Plan.
		
	2.1
	“Compensation” shall mean the regular remuneration paid to an Executive for services rendered to the Employer as shown on the W-2 of the Executive for any given calendar year.

		
	2.2
	“Deferral Election” means a written notice filed by the Participant with the Employer specifying the Compensation to be deferred by the Participant pursuant to the rules set forth in Appendix A.

		
	2.3
	“Effective Date” means January 1, 2009.  Amounts held under the Plan pursuant to deferral elections made or effective prior to the Effective Date shall, from and after the Effective Date, be administered and distributed in accordance with the terms of this Plan.  Notwithstanding the foregoing provisions of this Section 2.3 or any provision of the prior Plan to the contrary, the Plan terms from the period from January 1, 2005 through December 31, 2008 shall reflect its operational compliance with the interim and, as applicable, the transitional rules of Internal Revenue Code Section 409A in effect for periods prior to January 1, 2009.

		
	2.4
	“Employer” means PAREXEL International Corporation.

		
	2.5
	“Executive” means any highly compensated employee or member of a select group of management employees employed by the Employer and/or certain of its wholly owned subsidiaries as determined by the Employer in its sole discretion.

		
	2.6
	“Normal Retirement Age” means age 65.

		
	2.7
	“Normal Retirement Date” means the first day of the month coinciding with or next following a Participant’s retirement on or after attaining Normal Retirement Age.

		
	2.8
	“Participant” means any Executive who has become eligible to participate in the Plan in accordance with Article III as determined by the Employer, and who has not ceased to have rights to a Benefit hereunder.

		
	2.9
	“Payment Schedule” means the one payment schedule, if any, designated by a Participant on the “relevant” Deferral Election, as applicable to distributions in connection with Separation from Service in accordance with Section 7.3.  For purposes of the preceding sentence, a Participant’s initial Deferral Election under the Plan shall be his or her “relevant” Deferral Election, except that, pursuant to transition relief available under guidance issued by the Secretary of the Treasury under Internal Revenue Code Section 409A, a Payment Schedule which is properly elected (on a form provided by the Plan Administrator) by a Participant prior to the January 1, 2009, for all amounts deferred prior to such date and meeting the requirements applicable under such transition relief, shall be deemed to have been made on the “relevant” Deferral Election and shall be given effect for distributions after such date, notwithstanding the otherwise applicable restrictions under Section 7.3.  Except as provided under the preceding sentence or as otherwise permitted under Section 7.3, a Payment Schedule is irrevocable and cannot be changed.

		
	2.10
	“Performance-Based Compensation” means Compensation where the amount of, or entitlement to, the Compensation is contingent on the satisfaction of pre-established organizational or individual performance criteria relating to a performance period of at least twelve consecutive months.  Organizational or individual performance criteria are 

2

considered pre-established if established in writing by not later than ninety (90) days after the commencement of the period of service to which the criteria relate, provided that the outcome is substantially uncertain at the time the criteria are established.  The determination of whether Compensation qualifies as “Performance-Based Compensation” will be made in accordance with Treas. Reg. Section 1.409A-1(e) and subsequent guidance.
		
	2.11
	“Plan” means the PAREXEL International Corporation Deferred Compensation Plan.

		
	2.12
	“Plan Year” means the calendar year.

		
	2.13
	“Retirement Benefit” or “Benefit” means the amount credited to a Participant’s account, as of the relevant time, pursuant to Section 4.3.

		
	2.14
	“Separation from Service” means a “separation from service” by a Participant with respect to the Employer within the meaning of Treas. Reg. Section 1.409A-1(h)(1).

		
	2.15
	“Specified Employee” shall mean any person identified as such as of the relevant time under Treas. Reg. Section 1.409A-1(i); provided, however, that a person’s “officer” status for purposes of the application of the rules referenced thereunder may be construed by the Employer in a manner consistent with preventing a possible or inadvertent violation of the Specified Employee restrictions of Internal Revenue Code Section 409A.

		
	2.16
	“Statutory Maximum” shall, with respect to a Specified Employee, mean the “two (2) times the lesser of” amount described in Treas. Reg. 1.409A-1(b)(9)(iii)(A).

		
	2.17
	“Unforeseeable Emergency” means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, the Participant’s dependent (as defined in Internal Revenue Code Section 152(a)), or a Participant’s beneficiary; loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, as a result of a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  The types of events which may qualify as an Unforeseeable Emergency may be limited by the Employer in its sole discretion.  Whether a Participant has an Unforeseeable Emergency shall be determined by the Employer in its sole discretion.

ARTICLE III
PARTICIPATION
		
	3.1
	ELIGIBLE EXECUTIVES

Eligibility for participation in this Plan shall be limited to those Executives designated in writing by the Employer in its sole discretion.

3

		
	3.2
	ENTRY DATE

Each Participant under Section 3.1 shall enter the Plan on the date specified in writing by the Employer.
		
	3.3
	CESSATION OF PARTICIPATION BY ACTION OF EMPLOYER

The Employer reserves the right to terminate the active participation in the Plan of any designated Executive upon 30 days advance notice to the Executive.  Such Executive shall thereupon become an inactive Participant.
ARTICLE IV
BENEFITS
		
	4.1
	PARTICIPANT CONTRIBUTIONS CREDIT

A Participant may elect pursuant to this Plan each Plan Year to defer an amount of the Participant’s Compensation up to 100% of the Participant’s Compensation.  Anything contained in the Plan to the contrary notwithstanding, all amounts deferred under this Section 4.1 must be made pursuant to a Deferral Election meeting the requirements set forth on Appendix A hereto.  The Employer shall maintain a book account in the Plan for the Participant to which the Employer shall credit an amount equal to the amount of the Participant’s Deferral Election.
		
	4.2
	NORMAL RETIREMENT BENEFIT

The amount of “Normal Retirement Benefit” shall be equal to the aggregate contributions credited on the Participant’s behalf pursuant to the provisions of Sections 4.1 of the Plan, plus earnings determined in accordance with Section 4.3 of the Plan, as of the Participant’s retirement on or after attaining Normal Retirement Age.  Upon attainment of Normal Retirement Age, the Participant shall be fully vested in the Benefit credited to the Participant’s account; provided that the Participant is still employed by the Employer on such date.  For all purposes of the Plan, a Participant’s “retirement” shall occur (and a Participant shall be considered “retired”) only when the Participant experiences a Separation from Service on or after attaining Normal Retirement Age.
		
	4.3
	CREDITING RATE

The aggregate contributions credited under the Plan pursuant to Section 4.1 on the Participant’s behalf shall be credited with earnings (or losses) at the aggregate rate of return for the investment options selected by the Participant.  A Participant’s account will continue to be credited with earnings (or losses) during the period the Participant is receiving Benefit payments.  As used in this Plan, the term “earnings” shall include losses.

4

Each Participant’s account will be credited with earnings or losses on each business day, based upon the Participant’s investment allocation among a menu of investment options permitted by the Employer in its sole discretion, in accordance with the provisions of this Section 4.3 (“investment allocation”).  Investment options will be determined by the Employer in its sole discretion.  The Employer, also in its sole discretion, shall be permitted to add or remove investment options from the Plan menu from time to time, provided that any such additions or removals of investment options shall not be effective with respect to any period prior to the effective date of such change.  A Participant’s investment allocation constitutes a deemed, not actual, investment among the investment options comprising the Plan menu.  At no time shall a Participant have any real or beneficial ownership in any investment option included in the investment menu, nor shall the Employer have any obligation to purchase actual securities as a result of a Participant’s investment allocation.  A Participant’s investment allocation shall be used solely for purposes of adjusting the value of a Participant’s accounts.  If the Participant fails to make an investment allocation with respect to an account, such account shall be invested in an investment option, the primary objective of which is the preservation of capital, as determined by the Employer in its sole discretion.
		
	4.4
	DISABILITY RETIREMENT BENEFIT

A Participant who has not reached Normal Retirement Age shall become fully vested in the Benefit credited to the Participant’s account in the event the Participant becomes totally and permanently disabled during the Participant’s employment with the Employer.  For purposes of this Plan, “total and permanent disability” or “disability” shall mean when the Participant either: (a) is, for a continuous period of not less than six (6) months, unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (b) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than six (6) months under an accident and health plan covering employees of the Employer.  A Participant’s Benefit shall be, subject to the provisions of Section 8.4, paid in a lump sum as soon as is practicable, but in no event more than ninety (90) days, after the date of such disability.
		
	4.5
	DEATH OF A PARTICIPANT BEFORE COMMENCEMENT OF RETIREMENT BENEFIT

If a Participant dies before payment of Benefits commence hereunder, the Participant shall become fully vested and the Participant’s Benefits shall be paid to the Participant’s beneficiaries in a lump sum as soon as practicable after the Employer receives notice of the 

5

Participant’s death.  Payment under this Section 4.5 shall be subject to Section 8.4 and shall not occur later than 90 days after the date of the Participant’s death.
		
	4.6
	DESIGNATION OF BENEFICIARY

The Participant shall have the right, at any time, to submit in a form provided by the Employer, a written or electronic designation of primary and secondary beneficiaries to whom payment under this Plan shall be made in the event of the Participant’s death prior to complete distribution of the Benefits due and payable under this Plan.  Each beneficiary designation shall become effective only when receipt thereof is acknowledged in writing or electronically by the Employer.  In the event a Participant does not designate a beneficiary, any distribution of Benefits due under this Plan after the Participant’s death shall be paid to the Participant’s surviving spouse, if any, otherwise to the Participant’s estate.
		
	4.7
	HARDSHIP DISTRIBUTION

A Participant who experiences an Unforeseeable Emergency may submit a written request to the Employer to receive payment of all or any portion of his or her Benefits.  Whether a Participant is faced with an Unforeseeable Emergency permitting an emergency payment shall be determined by the Employer, in its sole discretion, based on the relevant facts and circumstances of each case, but, in any case, a distribution on account of Unforeseeable Emergency may not be made to the extent that such emergency is or may be reimbursed through insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of deferrals under this Plan.  If an emergency payment is approved by the Employer, the amount of the payment shall not exceed the amount reasonably necessary to satisfy the need, taking into account the additional compensation that is available to the Participant as the result of cancellation of deferrals to the Plan, including amounts necessary to pay any taxes or penalties that the Participant reasonably anticipates will result from the payment.  Emergency payments shall be paid in a single lump sum within the 90-day period following the date the payment is approved by the Employer.  The Participant will not be eligible to recommence income deferrals until the first of January following a one (1) year period commencing on the date of withdrawal, and then only if otherwise eligible to participate under the terms of the Plan.
ARTICLE V
TERMINATION OF EMPLOYMENT
		
	5.1
	TERMINATION ON OR AFTER RETIREMENT DATE

Subject to the provisions of Section 8.4, a Participant who retires on or after the Participant’s Normal Retirement Age shall have the right to receive payment of his or her Benefits 

6

commencing as soon as practicable, but in no event more than 90 days, after the date of such retirement.  Unless a different Payment Schedule is properly elected under Section 7.3, payments shall be in the form of annual installments over the time period of fifteen (15) years, with each annual installment payment amount determined by dividing the remainder of the Participant’s Account at the time of determination by the number of remaining annual installments (including the current installment).  Payments hereunder shall be made (or commence) as soon as practicable, but no more than 90 days after the date of the Participant’s Separation from Service.
		
	5.2
	TERMINATION PRIOR TO RETIREMENT DATE

Subject to the provisions of Section 8.4, a Participant who experiences a Separation from Service prior to retirement, death or disability, shall receive payment of his or her Benefit as soon as practicable, but in no event more than 90 days, after the date of such Separation from Service; provided, however, that if the Separation from Service is for cause, as contemplated under the last paragraph of Section 8.4, then the Participant shall only receive the aggregate amount deferred by the Participant under Section 4.1 of the plan or, if less, the Benefit, and all other amounts credited to the Participant’s account shall be forfeited.
Unless a different Payment Schedule is properly elected under Section 7.3, payments shall be in the form of one lump sum payment.  Payments hereunder shall be made (or commence) as soon as practicable, but no more than 90 days after the date of the Participant’s Separation from Service.
		
	5.3
	VESTING

A Participant shall always be 100% vested in the Participant’s deferral contributions credited to the Participant’s account pursuant to Section 4.1 of the Plan and earnings thereon.  Notwithstanding the foregoing provisions of this Section 5.3, a Participant’s “vesting” shall be subject to the potential for forfeiture to the extent described in the last paragraph of Section 8.4
ARTICLE VI
ADMINISTRATION
		
	6.1
	This Plan shall be administered and interpreted by the Employer, whose decisions shall be final, conclusive and binding, except for any action taken pursuant to Section 8.4.  In addition, the Employer shall possess full discretion in connection with performing its administrative and interpretive functions pursuant to the foregoing sentence.

 

7

ARTICLE VII
PAYMENT OF RETIREMENT BENEFITS
		
	7.1
	SURVIVAL

Payment of any Benefit hereunder which is contingent upon the survival of the Participant shall cease with the last payment due the payee before the payee’s death.
		
	7.2
	ALIENATION OF BENEFITS PROHIBITED

No benefit payable at any time under the Plan shall be subject in any manner to alienation, anticipation, sale, transfer, assignment, pledge, attachment or encumbrance of any kind, except as required by law.  Neither shall any Benefit payable at any time under the Plan be subject in any manner to the debts or liabilities of any person entitled to such Benefit, nor shall the Employer be required to make any payments toward such debts or liabilities.  Notwithstanding the preceding provisions of this Section 7.2, the Plan will recognize, and allow payment pursuant to, a “qualified domestic relations order” to the extent permitted under Internal Revenue Code Section 409A and the final regulations thereunder.
		
	7.3
	DURATION AND FORM OF BENEFITS

The lump sum distributions provided for under Sections 4.4 and 4.5 are not modified by the provisions of any Payment Schedule.  The default distribution schedules provided for under Section 5.1 and 5.2 shall be modified by properly elected Payment Schedule terms.
The Payment Schedule shall offer the following alternatives: (a) one lump sum; and (b) annual installments over a time period of five (5), ten (10), or fifteen (15) years as designated in such Payment Schedule, with each annual installment payment amount determined by dividing the remainder of the Participant’s Account at the time of determination by the number of remaining annual installments (including the current installment).  To be properly elected, a Payment Schedule election must be made in writing on a form provided by the Plan Administrator and is subject to the any and all election requirements as are or may be established by the Plan Administrator.  Except as required for subsequent elections described below, installments hereunder shall commence as soon as practicable, but no more than 90 days after the date of the Participant’s Separation from Service.
A Participant may modify the alternative Payment Schedule, consistent with the permissible Payment Schedules otherwise available this Section, provided such modification complies with the requirements of Article V and is subject to the following additional requirements: (x) the date on which a modification election is submitted to the Employer must be at least twelve (12) months prior to the date on which payment is scheduled to commence under the Payment Schedule in effect prior to the modification; and (y) the date payments are to 

8

commence under the modified Payment Schedule must be no earlier than five (5) years after the date payment would have commenced under the original Payment Schedule.  Under no circumstances may a modification election result in an acceleration of payments in violation of Code Section 409A.  A modification election submitted in accordance with this Section 7.3 is irrevocable upon receipt by the Employer and becomes effective twelve (12) months after such date.
Nothing contained in this Plan to the contrary, the Employer, in its sole discretion, may accelerate any payments due to a Participant or a Participant’s beneficiaries to any extent permitted under Internal Revenue Code Section 409A and the guidance issued by the Internal Revenue Service thereunder.
		
	7.4
	DELAY IN PAYMENT TO OR WITH RESPECT TO SPECIFIED EMPLOYEE

Anything contained in the preceding provisions of this Plan to the contrary notwithstanding, any payments otherwise payable to or with respect to a Specified Employee shall not be paid to or with respect to a Specified Employee until at least six (6) months after such Specified Employee Separation from Service; provided, however, that, if such Separation from Service is an “involuntary separation from service” under Treas. Reg. Section 1.409A-1(n), then such delay shall only be applied to the extent such amounts, when added to all other amounts required to be taken into account under the “separation pay” limitation of Treas. Reg. Section 1.409A-1(b)(9)(iii), would, if paid within such period, exceed the Specified Employee Statutory Maximum.  Payment of any delayed amounts shall be made as soon as is administratively practicable after the expiration of such six (6) month period.
		
	7.5
	UNCLAIMED BENEFITS

Any of the Benefits hereunder which are unclaimed, including outstanding checks or direct deposits, shall be forfeited to the Employer.
		
	7.6
	WITHHOLDING

The Employer shall have the right to deduct from any Benefit any federal, state, or local taxes required by law to be withheld.
ARTICLE VIII
GENERAL PROVISIONS
		
	8.1
	FUNDING

The Plan is intended as an unfunded plan of supplementary retirement Benefits.  The Employer intends to establish appropriate reserves for the Plan on its books of account in accordance with generally accepted accounting principles.  Such reserves shall be, for all 

9

purposes, part of the general funds of the Employer and no Participant, spouse, beneficiary, or other person claiming a right under the Plan shall have any interest, right or title to such reserves.
		
	8.2
	RIGHT TO AMEND, SUSPEND OR TERMINATE

The Employer reserves the right at any time and from time to time to amend, suspend or terminate the Plan by action of its Board of Directors without the consent of any Participant, spouse, beneficiary, or other person claiming a right under the Plan.  No amendment or suspension of the Plan shall reduce the vested Benefits of any Participant as of the date of amendment or suspension.
		
	8.3
	EFFECT OF TERMINATION

In the event that the Plan is terminated, Benefits accrued and payable to Participants, former Participants entitled to Benefits, retired Participants and spouses or beneficiaries shall be limited to amounts vested and accrued as of the date of termination and shall not be subject to crediting of any further earnings.
Notwithstanding the preceding provisions of this Section 8.3 or of Section 8.2, the Board of Directors of the Employer may, in its sole discretion, reduce or eliminate Benefits as it deems necessary in order to protect the financial security of the Employer.
		
	8.4
	RIGHTS TO BENEFITS

No person shall have any right to a Benefit under the Plan except as such Benefit has accrued to such person in accordance with the terms of the Plan, and then such right shall be no greater than the rights of any unsecured general creditor of the Employer.  Neither the establishment of the Plan, the designation of any Participant, nor any provisions of the Plan shall be construed as giving a Participant the right to be retained in the employment of the Employer or as an Executive of the Employer.
The Employer, at its discretion, may acquire an insurance policy or policies insuring the life of a Participant from which it can satisfy its obligations to make payments pursuant to this Plan.  However, it is expressly understood that such contract (or contracts), if acquired, does not create any account or funds separate from the ordinary assets of the Employer, and no Participant, Participant’s spouse, or Participant’s beneficiary may look to any such contract as the funds from which benefits under this Plan are to be paid.  Any
such contract so acquired for the convenience of the Employer shall be the sole and exclusive property of the Employer, with the Employer named as applicant, owner, and beneficiary of any life insurance contract payment; provided further, any such contract shall not be held in trust or as collateral security for the benefit of a Participant, a Participant’s spouse, or a 

10

Participant’s beneficiary, nor is any representation made herein that such contract, if acquired, will be used to provide benefits under this Plan.  No Participant, Participant’s spouse, or Participant’s beneficiary shall have any beneficial ownership interest in, or preferred or other claim against, the life insurance contract, if acquired.
Notwithstanding any other provisions of this Plan, if an Executive shall be discharged for reason of acts of gross misconduct, fraud, dishonesty, larceny, misappropriation or embezzlement committed against the Employer, all of such Executive’s rights to earnings on the Participant’s deferral contributions and to the Employer’s matching contributions and earnings thereon shall be forfeited.  In addition, Benefits other than distribution of the Participant’s deferral contributions shall cease to be paid to any Participant who discloses confidential information or trade secrets concerning the Employer without the Employer’s consent, or engages in any activity that is materially damaging to the Employer.
		
	8.5
	CONSTRUCTION

The laws of the Commonwealth of Massachusetts will determine all questions arising with respect to the provisions of this Plan except to the extent superseded by Federal law.
		
	8.6
	TITLES

The titles of the Articles and Sections herein are included for convenience of reference only and shall not be construed as a part of this Plan, or have any effect upon the meaning of the provisions hereof.  Unless the context requires otherwise, the singular shall include the plural; the masculine gender shall include the feminine and vice versa; and such words as “herein”, “hereinafter”, “hereof and “hereunder” shall refer to this instrument as a whole and not merely to the subdivision in which such words appear.
		
	8.7
	SEPARABILITY

If any term or provision of this Plan as presently in effect or as amended from time to time, or the application thereof to any payments or circumstances, shall to any extent be invalid or unenforceable, the remainder of the Plan, and the application of such term or provision to payments or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term or provision of the Plan shall be valid and enforced to the fullest extent permitted by law.
		
	8.8
	RIGHT OF OFFSET

If, at such time as a Participant becomes entitled to benefits under this Plan, such Participant has any debt, obligation or other liability representing an amount owing to the Employer, and if such debt, obligation or other liability is due and owing at the time distribution is due 

11

hereunder, the Employer may offset the amount owing against the amount of benefits otherwise distributable hereunder.
		
	8.9
	CLAIM FOR BENEFITS

Subject to and in compliance with the specific procedures contained in the applicable regulations under the Employee Retirement Income Security Act of 1974, as amended: (i) any decision by the Employer denying a claim by a Participant or a Participants beneficiary for Benefits under this Plan shall be stated in writing and delivered or mailed to such Participant or such beneficiary; (ii) each such notice shall set forth the specific reasons for the denial, written to the best of the Employer’s ability in a manner that may be understood without legal or actuarial counsel; and (iii) the Employer shall afford a reasonable opportunity to such Participant or such beneficiary for a full and fair review of the decision denying such claim.
		
	8.10
	NO ACCELERATION

Anything contained in the Plan to the contrary notwithstanding, no acceleration of the payment of any Benefits shall be permitted, except to the extent permitted under Treas. Reg. Section 1.409A-3(j) and adopted by the Employer.
		
	8.11
	ACCOUNTS TAXABLE UNDER INTERNAL REVENUE CODE SECTION 409A

The Plan is intended to constitute a plan of deferred compensation that meets the requirements for deferral of income taxation under Internal Revenue Code Section 409A.  The Plan Administrator, pursuant to its authority to interpret the Plan, may sever from the Plan or any Deferral Election any provision or exercise of a right that otherwise would result in a violation of Internal Revenue Code Section 409A.
		
	8.12
	NO CONTRACT OF EMPLOYMENT

Nothing contained in this document shall create a contract of employment for any guaranteed or specific period of time or otherwise alter the nature of any Participant’s employment status or employment relationship with the Employer.
IN WITNESS WHEREOF, the Employer has caused this Plan to be executed by its duly authorized officers on this __ day of __________, 2008 with an amended & restated plan effective date of January 1, 2009.
PAREXEL International Corporation
	
					
	 
	By:
	 
	 
	 

	 
	 
	 
	 
	 

	 
	Title:
	 
	 
	 

12

APPENDIX A  
DEFERRAL ELECTION RULES
		
	A-1
	DEFERRAL ELECTIONS IN GENERAL

A Participant shall submit a Deferral Election during the enrollment periods established by the Employer and in the manner specified by the Employer, but in any event, in accordance with Section A-2.  A Deferral Election that is not timely filed with respect to a period of service or component of Compensation shall be considered void and shall have no effect with respect to such period or such Compensation.  The Employer may modify, or allow a Participant to modify, any Deferral Election prior to the date the election becomes irrevocable under the rules of Section A-2.
		
	A-2
	TIMING REQUIREMENTS FOR DEFERRAL ELECTIONS

The following rules provide the timing requirements for Deferral Elections, but only insofar as related to deferrals otherwise available under the Plan.
		
	(a)
	First Year of Eligibility.  In the case of the first year in which an eligible Executive becomes eligible to participate in the Plan, he or she has up to thirty (30) days following his initial eligibility to submit a Deferral Election with respect to Compensation to be earned during such year.  The Deferral Election described in this paragraph becomes irrevocable upon the end of such 30-day period.  The determination of whether an eligible Executive may file a Deferral Election under this paragraph shall be determined in accordance with the rules of Internal Revenue Code Section 409A, including the provisions of Treas. Reg. Section 1.409A-2(a)(7).  A Deferral Election filed under this paragraph applies to Compensation earned on and after the date the Deferral Election becomes irrevocable.

		
	(b)
	Prior Year Election.  Except as otherwise provided in this Section A-2, Participants may defer Compensation by filing a Deferral Election no later than December 31st of the year prior to the year in which the Compensation to be deferred is earned, or such earlier date established by the Employer.  If a deferral election is received less than 3 days prior to the first applicable payroll date, it is assumed that the first deferral will start with the second applicable payroll date.  A Deferral Election described in this paragraph shall become irrevocable with respect to such Compensation as of January 1 of the year in which such Compensation is earned.

		
	(c)
	Performance-Based Compensation.  Participants may file a Deferral Election with respect to Performance-Based Compensation no later than the date that is six (6) months before the end of the performance period, provided that:

13

		
	i.
	the Participant performs services continuously from the later of the beginning of the performance period or the date the criteria are established through the date the Deferral Election is submitted; and

		
	ii.
	the Compensation is not readily ascertainable as of the date the Deferral Election is filed.

A Deferral Election becomes irrevocable with respect to Performance-Based Compensation as of the day immediately following the latest date for filing such election.  Any election to defer Performance-Based Compensation that is made in accordance with this paragraph and that becomes payable as a result of the Participant’s death, retirement or disability prior to the satisfaction of the performance criteria, will be void.
		
	(d)
	Sales Commissions.  Sales commissions (as defined in Treas. Reg. Section 1.409A-2(a)(12)(i)) are considered to be earned in the taxable year of the Participant in which the customer remits payment to the Employer.  The Deferral Election must be filed before the last day of the year preceding the year in which the sales commissions are earned and becomes irrevocable after that date.

		
	(e)
	Employer Awards.  The Employer may unilaterally provide for deferral of Employer awards prior to the date of such awards.  Deferrals of Employer awards (such as sign-on, retention, or severance pay) may be negotiated with a Participant prior to the date the Participant has a legally binding right to such Compensation.

14

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