Document:

exv10w1

 

Exhibit 10.1

Activant Solutions Inc.

Deferred Compensation Plan

Amended and Restated

Effective: January 1, 2007

 

 

Deferred Compensation Plan

Activant Solutions Inc.

Deferred Compensation Plan

WITNESSETH:

     WHEREAS, Activant Solutions Inc. (the “Company”) currently maintains, on behalf of itself and
its participating affiliates, the CCI/Triad Deferred Compensation Plan (the “Plan”); and

     WHEREAS, the Company wishes to rename the Plan to reflect the change in the Company’s name, to
amend the Plan in certain respects, and to restate the Plan in its entirety;

     NOW, THEREFORE, the Plan is hereby renamed the Activant Solutions Inc. Deferred Compensation
Plan, effective as of October 8, 2003, and is hereby amended and restated in its entirety as set
forth in this document with no interruption in time, effective as of January 1, 2007, except as
otherwise stated herein and except that provisions of the Plan required to have an earlier
effective date by applicable statute and/or regulation will be effective as of the required
effective date in such statute and/or regulation:

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Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	Article I	 	Definitions and Construction	 	 
	 
	 	 	 	 	 	 
	1.1	 	Definitions	 	1
	 
	 	(1)	 	Account(s)	 	1
	 
	 	(2)	 	Base Salary	 	1
	 
	 	(3)	 	Board	 	1
	 
	 	(4)	 	Bonus	 	1
	 
	 	(5)	 	Cause	 	1
	 
	 	(6)	 	Change of Control	 	1
	 
	 	(7)	 	Code	 	3
	 
	 	(8)	 	Committee	 	3
	 
	 	(9)	 	Company	 	3
	 
	 	(10)	 	Company Credits	 	3
	 
	 	(11)	 	Company Credits Account	 	3
	 
	 	(12)	 	Compensation	 	3
	 
	 	(13)	 	Compensation Deferral Account	 	3
	 
	 	(14)	 	Compensation Deferrals	 	3
	 
	 	(15)	 	Deferred Payment Date	 	3
	 
	 	(16)	 	Election Date	 	3
	 
	 	(17)	 	Eligible Employee	 	3
	 
	 	(18)	 	Employer	 	3
	 
	 	(19)	 	ERISA	 	3
	 
	 	(20)	 	Participant	 	3
	 
	 	(21)	 	Participating Company	 	3
	 
	 	(22)	 	Plan	 	3
	 
	 	(23)	 	Plan Year	 	3
	 
	 	(24)	 	Related Company	 	3
	 
	 	(25)	 	Restatement Effective Date	 	4
	 
	 	(26)	 	Termination of Employment	 	4
	 
	 	(27)	 	Unforeseeable Financial Emergency	 	4
	 
	 	(28)	 	Vested Interest	 	4
	 
	 	 	 	 	 	 
	1.2	 	Number	 	4
	1.3	 	Headings	 	4
	1.4	 	Top Hat Plan	 	4
	1.5	 	Unfunded Nature of Plan/Rabbi Trust	 	4
	 
	 	 	 	 	 	 
	Article II	 	Participation	 	 
	 
	 	 	 	 	 	 
	2.1	 	Eligibility to Participate in the Plan	 	5
	2.2	 	Commencement of Participation	 	5
	2.3	 	Termination of Participation	 	5
	2.4	 	Resumption of Participation	 	5
	 
	 	 	 	 	 	 
	Article III	 	Deferrals and Credits	 	 
	 
	 	 	 	 	 	 
	3.1	 	Participant Compensation Deferrals	 	5
	3.2	 	Company Credits	 	6

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	 	 	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Article IV	 	Establishment and Maintenance of Accounts	 	 
	 
	 	 	 	 	 	 
	4.1	 	Establishment of Plan Year Accounts	 	7
	4.2	 	Selection of Deferred Payment Date for Each Plan Year’s Accounts	 	7
	4.3	 	Selection of Form of Benefit Payment for Each Plan Year’s Accounts	 	7
	4.4	 	Debiting and Crediting of Accounts	 	8
	4.5	 	Statement of Accounts	 	9
	 
	 	 	 	 	 	 
	Article V	 	Vesting of Accounts	 	 
	 
	 	 	 	 	 	 
	5.1	 	Vesting of Base Salary Deferral Accounts and Bonus Deferral Accounts	 	9
	5.2	 	Vesting of Company Credits Accounts	 	9
	5.3	 	[Accelerated Vesting Upon Change of Control	 	9
	5.4	 	Forfeitures	 	9
	 
	 	 	 	 	 	 
	Article VI	 	Investment of Accounts	 	 
	 
	 	 	 	 	 	 
	6.1	 	Deemed Investment of Accounts	 	10
	6.2	 	Designation of Investment Funds	 	10
	6.3	 	Allocation of Earnings/Losses	 	10
	 
	 	 	 	 	 	 
	Article VII	 	Payment of Plan Benefits	 	 
	 
	 	 	 	 	 	 
	7.1	 	Plan Benefit	 	10
	7.2	 	Events Triggering Payment of Benefit	 	10
	7.3	 	Payment of Benefit	 	10
	7.4	 	Payee of Benefits	 	11
	7.5	 	Designation of Beneficiaries	 	11
	7.6	 	Unclaimed Benefits	 	11
	7.7	 	Minors or Incapacitated Persons	 	11
	 
	 	 	 	 	 	 
	Article VIII	 	Withdrawals and Loans	 	 
	 
	 	 	 	 	 	 
	8.1	 	Early Withdrawals	 	11
	8.2	 	No Loans	 	12
	 
	 	 	 	 	 	 
	Article IX	 	Administration of Plan	 	 
	 
	 	 	 	 	 	 
	9.1	 	The Committee	 	12
	9.2	 	Committee Powers and Duties	 	12
	9.3	 	Claims Review	 	13
	9.4	 	Payment of Expenses	 	15
	9.5	 	Indemnity	 	15
	 
	 	 	 	 	 	 
	Article X	 	Amendment and Termination of Plan	 	 
	 
	 	 	 	 	 	 
	10.1	 	Amendment of Plan	 	15
	10.2	 	Termination of Plan	 	15
	 
	 	 	 	 	 	 
	Article XI	 	Participating Companies	 	 
	 
	 	 	 	 	 	 
	11.1	 	Designation of Participating Companies	 	16

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	 	 	 	 	 	 	Page
	 
	 	 	 	 	 	 
	11.2	 	Termination of Participating Company’s Participation	 	16
	 
	 	 	 	 	 	 
	Article XII	 	Miscellaneous	 	 
	 
	 	 	 	 	 	 
	12.1	 	Not Contract of Employment	 	17
	12.2	 	Assignment Forbidden	 	17
	12.3	 	Withholding	 	17
	12.4	 	Severability	 	17
	12.5	 	Governing Law	 	17

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I.

Definitions and Construction

     1.1 Definitions. Where the following capitalized words and phrases appear in the Plan,
each has the respective meaning set forth below, unless the context clearly indicates to the
contrary.

	(1)	 	Account(s): A Participant’s Compensation Deferral Account(s) and/or Company Credits
Account(s).
	 
	(2)	 	Base Salary: The gross amount of all wages, salaries, fees, and other amounts (but
excluding any Bonus) payable by the Employer in cash to or for the benefit of a Participant
for services actually rendered or labor performed for the Employer by such Participant, after
ensuring that there is a sufficient amount remaining to provide for all of the following: (i)
all applicable federal and state taxes required to be withheld by the Employer, (ii) the
maximum amount of elective deferrals that may be contributed by such Participant to any
Employer-sponsored qualified 401(k) plan for the calendar year coincident with the Plan Year
under section 402(g) of the Code (notwithstanding that such Participant may not have elected
to defer such amount), (iii) all amounts elected by such Participant to be contributed under
any Employer-sponsored plan by reason of section 125 of the Code, (iv) all other amounts
elected by such Participant to be paid as participant contributions to any Employer-sponsored
plan, and (v) all other deductions authorized or consented to by such Participant.
	 
	(3)	 	Board: The Board of Directors of the Company.
	 
	(4)	 	Bonus: The bonus or bonuses, if any, payable in cash to or for the benefit of a
Participant under any Employer bonus or incentive plan for services actually rendered or labor
performed for the Employer by such Participant, after ensuring that there is a sufficient
amount remaining to provide for all of the following to the extent not provided out of such
Participant’s Base Salary: (i) all applicable federal and state taxes required to be withheld
by the Employer, (ii) the maximum amount of elective deferrals that may be contributed by such
Participant to any Employer-sponsored qualified 401(k) plan for the calendar year coincident
with the Plan Year under section 402(g) of the Code (notwithstanding that such Participant may
not have elected to defer such amount), (iii) all amounts elected by such Participant to be
contributed under any Employer-sponsored plan by reason of section 125 of the Code, (iv) all
other amounts elected by such Participant to be paid as participant contributions to any
Employer-sponsored plan, and (v) all other deductions authorized or consented to by such
Participant.
	 
	(5)	 	Cause: A determination by the Committee that a Participant has (i) engaged in gross
negligence or willful misconduct in the performance of his or her duties with respect to the
Employer; (ii) been convicted of any felony or a misdemeanor involving moral turpitude; (iii)
willfully refused without proper legal reason to perform his or her duties and
responsibilities to the Employer faithfully and to the best of his or her abilities; (iv)
breached any material provision of a written employment agreement with the Employer or
corporate policy established by the Employer; or (v) willfully engaged in conduct that he or
she knows or should know is materially injurious to the Employer.
	 
	(6)	 	Change of Control: Any one of the following events:

	 	(i)	 	Any one person, or more than one person “acting as a group” (within the
meaning of Treas. Reg. § 1.409A-3(g)(5)(v)(B)), acquires ownership of stock of the
Company that, together with stock held by such person or group, constitutes more than
50% of the total fair market value or total voting power of the stock of the Company;
provided, however,

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	 	 	 	that if one person, or more than one person “acting as a group” (within the meaning
of Treas. Reg. § 1.409A-3(g)(5)(v)(B)), is considered to own more than 50% of the
total fair market value or total voting power of the stock of the Company, the
acquisition of additional stock by the same person or group does not cause a Change
of Control within the meaning of this Paragraph (i); and provided, further, that an
increase in the percentage of stock owned by any one person, or persons “acting as a
group” (within the meaning of Treas. Reg. § 1.409A-3(g)(5)(v)(B)), as a result of a
transaction in which the Company acquires its stock in exchange for property will be
treated as an acquisition of stock for purposes of this Paragraph (i); and provided,
further, that this Paragraph (i) applies to cause a Change of Control only when
there is a transfer of stock of the Company (or issuance of stock of the Company)
and stock of the Company remains outstanding after the transaction; and provided,
further, that, if any person, or more than one person “acting as a group” (within
the meaning of Treas. Reg. § 1.409A-3(g)(5)(B)) is considered to have met the
control requirements of Paragraph (ii) below, the further acquisition of such stock
by the same person or group will not cause a Change of Control within the meaning of
this Paragraph (i); or
	 
	 	(ii)	 	Either:

	 	(a)	 	Any one person, or more than one person “acting as a group”
(within the meaning of Treas. Reg. § 1.409A-3(g)(5)(v)(B)), acquires (or has
acquired during the 12-month period ending on the date of the most recent
acquisition by such person or group) ownership of stock of the Company
possessing 35% or more of the total voting power of the stock of the Company;
provided, however, that if one person, or more than one person “acting as a
group” (within the meaning of Treas. Reg. § 1.409A-3(g)(5)(v)(B)), is
considered to own more than 50% of the total fair market value or total voting
power of the stock of the Company, the acquisition of additional stock by the
same person or group will not cause a Change of Control within the meaning of
this Paragraph (ii); and provided, further, that, if any person, or more than
one person “acting as a group” (within the meaning of Treas. Reg. §
1.409A-3(g)(5)(B)) is considered to have met the control requirements of this
Paragraph (ii), the further acquisition of such stock by the same person or
group will not cause a Change of Control within the meaning of this Paragraph
(ii); or
	 
	 	(b)	 	A majority of the members of the Board is replaced during any
12-month period by directors whose appointment or election is not endorsed by a
majority of the members of the Board prior to the date of such appointment or
election; provided, however, that this Subparagraph (b) will only cause a
Change of Control of a corporation for which no other corporation is a majority
shareholder; or

	 	(iii)	 	Any one “person,” or more than one person “acting as a group” (within the
meaning of Treas. Reg. § 1.409A-3(g)(5)(v)(B)), acquires (or has acquired during the
12-month period ending on the date of the most recent acquisition by such person or
group) assets from the Company that have a total “gross fair market value” equal to or
more than 40% of the total “gross fair market value” of all the assets of the Company
immediately prior to such acquisition or acquisitions. For purposes of this Paragraph
(iii), gross fair market value means the value of the assets of the Company, or the
value of the assets being disposed of, determined without regard to any liabilities
associated with such assets; or

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	 	(iv)	 	With respect to a transaction involving the Company and any other
corporation, either the Company or such other corporation experiences a “Change of
Control” described in Paragraph (i) or (ii) above in connection with such transaction.

	(7)	 	Code: The Internal Revenue Code of 1986, as amended.
	 
	(8)	 	Committee: The committee appointed or otherwise constituted in accordance with
Section 9.1.
	 
	(9)	 	Company: Activant Solutions Inc.
	 
	(10)	 	Company Credits: Amounts, if any, credited to a Participant’s Company Credits
Account pursuant to Section 3.2.
	 
	(11)	 	Company Credits Account: A hypothetical account for each Participant to which are
credited (i) such Participant’s Company Credits, if any, allocated pursuant to Section 3.2 and
(ii) such Account’s allocation of earnings and losses as provided in Section 6.3.
	 
	(12)	 	Compensation: Base Salary and/or Bonus.
	 
	(13)	 	Compensation Deferral Account: A hypothetical account for each Participant to which
are credited (i) such Participant’s Base Salary Compensation Deferrals and Bonus Compensation
Deferrals elected pursuant to Section 3.1 and (ii) such Account’s allocation of earnings and
losses as provided in Section 6.3.
	 
	(14)	 	Compensation Deferrals: Base Salary and/or Bonus deferred in accordance with Section
3.1.
	 
	(15)	 	Deferred Payment Date: The date designated by a Participant each Plan Year in
accordance with Section 4.2 for payment (or commencement of payment, as applicable) of such
Participant’s Accounts for such Plan Year.
	 
	(16)	 	Election Date: The first day of each Plan Year.
	 
	(17)	 	Eligible Employee: Each employee of the Employer who is one of a select group of
management or highly compensated employees.
	 
	(18)	 	Employer: The Company and each Participating Company.
	 
	(19)	 	ERISA: The Employee Retirement Income Security Act of 1974, as amended.
	 
	(20)	 	Participant: Each Eligible Employee who is eligible to participate in the Plan
pursuant to Section 2.1 and has become a Participant pursuant to Section 2.2 and whose
participation has not terminated pursuant to Section 2.3.
	 
	(21)	 	Participating Company: Each eligible organization designated to participate in the
Plan in accordance with the provisions of Article XI.
	 
	(22)	 	Plan: This Activant Solutions Inc. Deferred Compensation Plan, as amended from time
to time.
	 
	(23)	 	Plan Year: The 12-consecutive-month period commencing January 1 of each year.
	 
	(24)	 	Related Company: Each trade or business (whether or not incorporated) that, together
with the Company, would be deemed to be a “single employer” within the meaning of subsection
(b) or

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	 	 	 (c) of section 414 of the Code determined by substituting a “more than 50%” rather than an “80%”
ownership test.
	 
	(25)	 	Restatement Effective Date: January 1, 2007.
	 
	(26)	 	Termination of Employment: The termination of a Participant’s employment with the
Company and all Related Companies for any reason whatsoever, with or without cause, including
by reason of voluntary termination, involuntary termination, death, or disability or (ii) the
date a Participant’s leave of absence (paid or unpaid) exceeds six months if, on such date,
the Participant does not have, either by contract or statute, a right to reemployment with the
Company or an affiliate of the Company; provided, however, that a Termination of Employment
will not have occurred for purposes of the Plan unless and until an event that constitutes a
Termination of Employment as defined in this Paragraph also constitutes a “separation from
service” within the meaning of section 409A of the Code.
	 
	(27)	 	Unforeseeable Financial Emergency: A severe financial hardship of the Participant
resulting from (i) an illness or accident of the Participant, the Participant’s spouse, or the
Participant’s dependent (as defined in section 152(a) of the Code); (ii) a 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); or (iii) other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the
Participant; provided, however, that an Unforeseeable Financial Emergency will not exist to
the extent that such emergency is or may be relieved through reimbursement or compensation
from insurance or otherwise, by liquidation of the Participant’s assets (to the extent such
liquidation would not cause severe financial hardship), or by cessation of Compensation
Deferrals under the Plan.
	 
	(28)	 	Vested Interest: The percentage of a Participant’s Accounts in which, pursuant to
Article V, he or she is vested.

     1.2 Number. Wherever appropriate herein, words used in the singular will be
considered to include the plural, and words used in the plural will be considered to include the
singular.

     1.3 Headings. The headings of Articles and Sections herein are included solely for
convenience, and if there is any conflict between such headings and the text of the Plan, the text
will control. All references to Articles, Sections, and Subsections are to this document unless
otherwise stated.

     1.4 Top Hat Plan. The Plan is intended to constitute an unfunded, unsecured plan of
deferred compensation for a select group of management or highly compensated employees of the
Employer within the meaning of ERISA, and all provisions of the Plan are to be construed in
accordance with such intent.

     1.5 Unfunded Nature of Plan/Rabbi Trust. The Plan is intended to be “unfunded” for
purposes of the Code and Title I of ERISA. The Plan constitutes a mere promise by the Employer to
make benefit payments in the future. Plan benefits herein provided are to be paid out of the
Employer’s general assets, and Participants will have the status of general unsecured creditors of
the Employer. The preceding notwithstanding, the Board in its discretion may establish a “rabbi
trust” to assist the Employer in meeting its obligations under the Plan. The Employer may transfer
money or other property to the trustee of such trust, and such trustee will pay Plan benefits to
Participants and their beneficiaries out of the trust assets unless otherwise paid by the Employer.
In such event, the Employer will remain the owner of all assets in the trust, and the assets will
be subject to the claims of the creditors of any Employer that becomes insolvent. If a trust is
established, no Participant or beneficiary will have any preferred claim to, or any beneficial
ownership interest in, any assets of the trust.

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II.

Participation

     2.1 Eligibility to Participate in the Plan. Each Eligible Employee who is selected by
the Committee to participate in the Plan (and no other individual) is eligible to become a
Participant. The effective date of such eligibility is the date such Eligible Employee is notified
of such selection or, if later, any other date specified by the Committee as the date such Eligible
Employee may become a Participant in the Plan.

     2.2 Commencement of Participation.

          2.2.1 Each Participant who is a Participant in the Plan on the day prior to the Restatement
Effective Date will, subject to Section 2.3, remain a Participant on the Restatement Effective
Date.

          2.2.2 Each Eligible Employee who is eligible to participate in the Plan pursuant to Section
2.1 and who is not a Participant on the Restatement Effective Date pursuant to Subsection 2.2.1 may
commence participation in the Plan and become a Participant on any Election Date subsequent to the
date he or she becomes eligible under Section 2.1. The preceding sentence notwithstanding, if an
Eligible Employee first becomes eligible to participate in the Plan under Section 2.1 during the
Plan Year, such Eligible Employee may become a Participant on a date other than an Election Date if
he or she so elects within 30 days after first becoming eligible.

          2.2.3 To become a Participant, the Eligible Employee must execute and file with the Committee
a Compensation Deferral election on the form, in the manner, and within the time period provided in
Section 3.1.

          2.2.4 Once an Eligible Employee commences participation in the Plan, he or she will remain a
Participant until his or her participation terminates in accordance with Section 2.3.

     2.3 Termination of Participation. Each Eligible Employee who has become or is
entitled to become a Participant in the Plan will cease to be, or be entitled to be, a Participant
effective as of the earliest to occur of (1) the date of termination of the Plan, (2) the date such
individual is no longer an Eligible Employee, or (3) any earlier date designated by the Committee
and communicated to the affected individual prior to the effective date of such action; provided,
however, that any Participant who ceases to be a Participant will be considered a “Participant” for
purposes of receiving a distribution of his or her Accounts until all such Participant’s Accounts
have been distributed under the terms of the Plan.

     2.4 Resumption of Participation. A Participant whose participation (or right to
participate) terminates in whole or in part in accordance with Section 2.3 and who subsequently is
either hired or rehired by the Employer or otherwise again becomes an Eligible Employee will not be
entitled to commence or continue participation in the Plan unless and until he or she has again
been selected and is eligible to become a Participant in accordance with Section 2.1.

III.

Deferrals and Credits

     3.1 Participant Compensation Deferrals.

          3.1.1 Each Plan Year each Participant may elect to defer receipt of (1) an integral percentage
of his or her Base Salary payable for such Plan Year and/or (2) an integral percentage of his or
her Bonus payable for services performed during such Plan Year as “Compensation Deferrals” for such

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Plan Year or, if he or she is a Participant for less than the full Plan Year, for the
remainder of such Plan Year; provided, however, that the Committee in its discretion may apply a
minimum and/or a maximum percentage for Base Salary and/or Bonus deferrals for any Plan Year, which
will be communicated to the Participants prior to the beginning of the period for making
Compensation Deferral elections for such Plan Year; and, provided, further, that the amount elected
to be deferred under this Subsection will be reduced to the extent such elected deferred amount
would cause the taxable amount reported on such Participant’s Form W-2 for the calendar year of
deferral to be below the amount needed to prevent the contributions allocated to all qualified
plans of the Employer on behalf of such Participant from exceeding the limits imposed by section
415 of the Code. Compensation not so deferred by a Participant will be received by such
Participant in cash.

          3.1.2 A Participant’s election under Subsection 3.1.1 to defer Compensation for any Plan Year
must be made (1) prior to the applicable Election Date and (2) on the form, in the manner, and
within the time period required by the Committee. A Participant’s election to make Compensation
Deferrals will become effective as of the applicable Election Date coincident with or next
following the date such Participant timely and properly executes and files with the Committee such
election form. Notwithstanding the foregoing, if a Participant first becomes eligible to
participate in the Plan under Section 2.1 on a date following an Election Date and such Participant
timely and properly executes and files with the Committee such form within 30 days after such
Participant first becomes eligible, such Participant’s election to make Compensation Deferrals will
become effective as of the first day of the first administratively practicable payroll period
coincident with or next succeeding the receipt by the Committee of such form and will apply to (and
only to) Base Salary payable for the Plan Year on and after such effective date and Bonus payable
for services performed during the Plan Year on and after such effective date. A Participant who
does not make Compensation Deferrals for any given Plan Year (or portion thereof, as applicable) in
accordance with the preceding sentences may elect to make Compensation Deferrals under Subsection
3.1.1 as of (and only as of) any subsequent applicable Election Date by complying with the
procedures set forth in this Subsection 3.1.2.

          3.1.3 Except as provided in Subsection 3.1.4, a Participant’s election to make Compensation
Deferrals will be irrevocable for the Plan Year (or remainder of the Plan Year, as applicable). A
Participant’s election to make Compensation Deferrals for a Plan Year will expire at the end of
such Plan Year and will not carry over to any subsequent Plan Year.

          3.1.4 Upon application by the Participant, in the event that the Committee determines that the
Participant has suffered an Unforeseeable Financial Emergency, the Participant’s Compensation
Deferral election then in effect will be canceled prospectively as soon as administratively
practicable after such determination. If the Participant’s Compensation Deferral election is so
canceled, the Participant may not again elect to defer his or her Compensation until an Election
Date that is at least 12 months after the effective date of such cancellation (and only then by
complying with the procedural requirements set forth in Subsections 3.1.1 and 3.1.2).

          3.1.5 Each Participant’s Compensation Deferral election will be effected by deductions from
such Participant’s Compensation as follows: (1) Base Salary Compensation Deferrals for a Plan Year
(or portion of the Plan Year, if applicable) will be deducted from such Participant’s Base Salary
each pay period and (2) a Participant’s Bonus Compensation Deferrals for a Plan Year (or portion of
the Plan Year, if applicable) will be deducted from such Participant’s Bonus when the Bonus for
which such election was made would otherwise be paid.

     3.2 Company Credits. As of any date or dates selected by the Employer, the Employer in its
discretion may credit a Participant with Company Credits. The amount of any Company Credits for
any Participant will be an amount, if any, that the Employer in its discretion determines. Company

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Credits may be made on behalf of one or some Participants and not others, and such credits may vary
in amount among individual Participants. Company Credits may be made at any time during the Plan
Year.

IV.

Establishment and Maintenance of Accounts

     4.1 Establishment of Plan Year Accounts. Each Plan Year, a Compensation Deferral
Account and a Company Credits Account will be established for each Participant.

     4.2 Selection of Deferred Payment Date for Each Plan Year’s Accounts.

          4.2.1 Each Participant must select, at the time the Participant elects Compensation Deferrals
for a Plan Year, a Deferred Payment Date for the amounts credited to his or her Compensation
Deferral Account for that Plan Year and indicate the elected Deferred Payment Date for such Account
on the form required by the Committee. The Deferred Payment Date for a Plan Year must be [(1)] at
least five years after the first day of such Plan Year [and (2) not later than the last day of the
Plan Year during which such Participant attains age 65]. The Deferred Payment Date for a
Participant’s Company Credits Account for a Plan Year will be the same date the Participant elects
for his or her Compensation Deferral Account for the Plan Year. If a Participant fails to
designate a Deferred Payment Date for his or her Compensation Deferral Account for a Plan Year (or
if the Participant does not elect to make Compensation Deferrals for such Plan Year), the Deferred
Payment Date for such Participant’s Compensation Deferral Account (and for his or her Company
Credits Account) for such Plan Year will be the date [the Participant attains the age of 65][that
is five years after the first day of the Plan Year for which the amounts are credited to each such
Account].

          4.2.2 At the time (and only at such time) a Participant selects the Deferred Payment Date for
his or her Compensation Deferral Account for a Plan Year, the Participant may elect that the
selected Deferred Payment Date for his or her Compensation Deferral Account (and Company Credit
Account) for the Plan Year will be accelerated by a Change of Control and/or a Termination of
Employment.

          4.2.3 A Participant may elect a single change of the Deferred Payment Date originally selected
by the Participant for his or her Accounts for a Plan Year under the following conditions: (1)
the new Deferred Payment Date applies to all of the Participant’s Accounts for such Plan Year and
(2) the new Deferred Payment Date is (i) a date that is at least five years after the original
Deferred Payment Date, (ii) communicated in writing to the Committee within the time period and on
the form required by the Committee, (iii) requested by the Participant at least one year prior to
the existing Deferred Payment Date, and (iv) approved by the Committee. The preceding
notwithstanding, a Participant who has begun to receive a distribution of his or her Accounts for a
Plan Year in installments may not change the Deferred Payment Date with respect to such Accounts.
If the Participant elects a change of the Deferred Payment Date for his or her Accounts under this
Subsection, the new Deferred Payment Date will not, even if the Participant has previously elected
under Subsection 4.2.2, be accelerated by a Participant’s Termination of Employment or a Change of
Control.

     4.3 Selection of Form of Benefit Payment for Each Plan Year’s Accounts.

          4.3.1 Each Participant must elect, at the time the Participant elects Compensation Deferrals
for a Plan Year, one of the forms of payment listed in Subsection 4.3.2 for all amounts credited to
his or her Accounts for that Plan Year. The Participant must elect the same form of benefit for
all his or her Accounts for such Plan Year. Except as provided in Subsection 4.3.3, such election
of benefit form for such Accounts will be irrevocable by the Participant. If a Participant fails
to elect the form in which his or her Accounts for a Plan Year are to be paid (or if the
Participant does not elect to make

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Compensation Deferrals for such Plan Year), such Participant will be deemed to have elected to
have such Accounts paid in the form of a single lump sum payment.

          4.3.2 The following alternative forms of payment are available under the Plan:

          (1) A single lump sum cash payment.

          (2) Annual installment cash payments for a term certain for a number of years, not to
exceed ten, payable to such Participant and, in the event of such Participant’s death prior
to the end of such term certain, the remainder of such Participant’s benefit to the
Participant’s beneficiary designated in accordance with Section 7.5 [in a single lump sum
cash payment] [over the remainder of such term]. Each such annual installment will be
calculated by multiplying the remaining amounts in the Accounts to be distributed under such
installment election by a fraction, the numerator of which is one and the denominator of
which is the number of remaining installment payments to be made under such installment
election.

          (3) Quarterly installment cash payments for a term certain for a number of years, not
to exceed ten, payable to such Participant and, in the event of such Participant’s death
prior to the end of such term certain, the remainder of such Participant’s benefit to the
Participant’s beneficiary designated in accordance with Section 7.5 [in a single lump sum
cash payment] [over the remainder of such term]. Each such quarterly installment will be
calculated by multiplying the remaining amounts in the Accounts to be distributed under such
installment election by a fraction, the numerator of which is one and the denominator of
which is the number of remaining installment payments to be made under such installment
election.

          4.3.3 A Participant may elect a change of the form of benefit payment originally selected by
the Participant for his or her Accounts for a Plan Year if, and at the same time and under the same
conditions, the Participant has a right to change his or her Deferred Payment Date for such
Accounts in accordance with Subsection 4.2.3.

          4.3.4 [The preceding Subsections notwithstanding, a Participant’s Accounts for a Plan Year
will be distributed in a single lump sum cash payment notwithstanding any alternative form elected
by the Participant if (i) on the date distribution of such Account(s) is scheduled to begin or be
made under Section 7.3 (or, if later, the date of death of such Participant), the total value of
such Account(s) is $10,000 or less; (2) the event triggering the distribution is the Participant’s
Termination of Employment; and (3) the payment is made no later than December 31 of the calendar
year in which occurs such Termination of Employment or the 15th day of the third month following
such Termination of Employment.]

     4.4 Debiting and Crediting of Accounts. Each Plan Year the Accounts established for
each Participant will be debited and credited as follows:

          4.4.1 A Participant’s Compensation Deferral Account established for such Plan Year will be
credited with the Base Salary Compensation Deferrals elected by such Participant under Section 3.1
for that Plan Year as soon as administratively practicable after the amounts are deducted from the
Participant’s Base Salary.

          4.4.2 A Participant’s Compensation Deferral Account established for such Plan Year will be
credited with the Bonus Compensation Deferrals elected by such Participant under Section 3.1 for
such Plan Year as soon as administratively practicable after the amounts are deducted from the
Participant’s Bonus.

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          4.4.3 A Participant’s Company Credits Account established for such Plan Year will be credited
with the Company Credits, if any, allocated on behalf of such Participant under Section 3.2 for
that Plan Year as soon as administratively practicable after the amounts are so allocated.

          4.4.4 All the Accounts of a Participant will be valued and credited with earnings and losses
allocated pursuant to Section 6.3 on a daily valuation basis each day the New York Stock Exchange
is open for business.

          4.4.5 Each Account of a Participant will be debited for any distribution made from such
Account pursuant to Article VII or VIII as of the date any such distribution is made from any such
Account.

     4.5 Statement of Accounts. Each Participant will receive, at least annually, a
statement setting forth (1) the debits and credits to such Participant’s Accounts during the
statement period, (2) the balance of such Participant’s Accounts as of the last day of the
statement period, and (3) the Participant’s Vested Interest in each such Account as of the last day
of the statement period.

V.

Vesting of Accounts

     5.1 Vesting of Base Salary Deferral Accounts and Bonus Deferral Accounts. Each
Participant will have a 100% Vested Interest in his or her Compensation Deferral Accounts at all
times.

     5.2 Vesting of Company Credits Accounts. Each Participant will acquire a Vested
Interest in his or her Company Credits Account for a Plan Year under the vesting schedule, if any,
designated by the Employer at the time the Company Credits are allocated to such Account. If no
vesting schedule is designated by the Employer at the time the Company Credits are allocated to a
Participant’s Company Credits Account, such Participant will have a 100% Vested Interest in such
Company Credits Account.

     5.3 [Accelerated Vesting Upon Change of Control. The preceding Sections
notwithstanding, in the event of a Change of Control, a Participant will have a 100% Vested
Interest in all of his or her Company Credits Accounts effective immediately prior to, but
contingent upon the occurrence of, the Change of Control; provided, however, that such accelerated
Vested Interest will be reduced or eliminated to the extent necessary to prevent such accelerated
vesting from triggering, when considered with all other payments paid or payable to or on behalf of
the Participant on account of the same Change of Control, the excess parachute payment sanctions
under sections 280G and 4999 of the Code.]

     5.4 Forfeitures.

          5.4.1 The preceding Sections notwithstanding, in the event the Committee determines that a
Participant’s employment with the Employer is terminated for Cause (notwithstanding that Cause may
not be cited by the Employer as a reason for such termination), such Participant will have a 0%
Vested Interest in his or her Company Credits Accounts effective immediately prior to the date of
such termination.

          5.4.2 If a Participant terminates employment with the Employer and its Related Companies with
a Vested Interest in any Account that is less than 100%, the nonvested portion of such Account will
be forfeited to the Employer as of the date of such termination.

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VI.

Investment of Accounts

     6.1 Deemed Investment of Accounts. The Committee will from time to time select, add,
and/or delete investment funds for purposes of the deemed investment of Participants’ Accounts.
The Committee will designate in which investment fund or funds the Participant’s Accounts are
deemed to be invested, except that the Committee may, in its discretion, permit one or more
Participants to direct the deemed investment of all or any portion of their Accounts in accordance
with Section 6.2. In the event the Committee permits a Participant to select the investment funds
for the deemed investment of his or her Account(s) and such Participant fails to designate an
investment fund for all or part of those Accounts, such Account(s) will be deemed to be invested in
the investment fund or funds designated by the Committee from time to time.

     6.2 Designation of Investment Funds. If the Committee permits a Participant to direct
the deemed investment of his or her Account(s), such Participant may designate, in accordance with
the procedures established from time to time by the Committee, the manner in which the amounts
allocated to such Accounts will be deemed to be invested from among the investment funds made
available from time to time for such purpose by the Committee. Such Participant may change such
investment designation in accordance with rules and procedures established by the Committee from
time to time.

     6.3 Allocation of Earnings/Losses. As of each day of the Plan Year on which the New York
Stock Exchange is open for business, each Account will be credited with earnings and losses. Such
allocation will equal the earnings and/or losses that would be credited to each such Account if the
Account were actually invested in the investment funds in which such Account is deemed to be
invested under Sections 6.1 and 6.2. Administrative expenses incident to the administration of the
Plan may be allocated to Participants’ Accounts on any basis deemed appropriate by the Committee
and taken into account in calculating such earnings and losses.

VII.

Payment of Plan Benefits

     7.1 Plan Benefit. A Participant’s Plan benefit is his or her Vested Interest
(determined as of the date of the Section 7.2 event triggering payment of his or her benefit) in
the value of each of his or her Accounts (determined as of the date that is administratively
practicable preceding payment of any such Account).

     7.2 Events Triggering Payment of Benefit. Payment of a Participant’s Plan benefit
from his or her Account or Accounts, as applicable, is triggered by the earlier to occur of the
following events:

          (1) The death of the Participant (for all Accounts of the Participant); or

          (2) The occurrence of the Deferred Payment Date (for the particular Account(s) of the
Participant to which the Deferred Payment Date applies).

     7.3 Payment of Benefit.

          7.3.1 Payment of a Participant’s benefit from his or her Account(s) will be made or commence
as soon as administratively practicable following notice to the Committee that a Section 7.2 event
triggering payment of such benefit has occurred. The preceding notwithstanding, if and to the
extent required by section 409A of the Code, a Participant who is a “specified employee” (within
the meaning of Treas. Reg. § 1.409A-1(i)) may not receive a payment from the Plan on account of a

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“separation from service” (within the meaning of Treas. Reg. § 1.409A-1(h)) earlier than six
months from the date of such separation from service.

          7.3.2 The Participant’s benefit will be paid in the form elected or deemed elected by the
Participant in accordance with Section 4.3.

     7.4 Payee of Benefits. The Participant’s Plan benefit will be paid to the
Participant, unless the Section 7.2 triggering event is the death of the Participant or the
Participant dies prior to receipt of his or her full benefit, in which case the Participant’s Plan
benefit (or remainder of such benefit, if applicable) will be paid to the Participant’s beneficiary
designated in accordance with Section 7.5.

     7.5 Designation of Beneficiaries.

          7.5.1 Each Participant will have the right to designate the beneficiary or beneficiaries to
receive payment of the Participant’s Plan benefit in the event of his or her death. Each such
designation will be made by executing the beneficiary designation form prescribed by the Committee
and filing such form with the Committee during the lifetime of such Participant. Any such
beneficiary designation may be changed by the Participant at any time by executing and filing with
the Committee a new beneficiary designation form during the Participant’s lifetime.

          7.5.2 If, at the time of the death of the Participant, no beneficiary designation is on file
with the Committee, or if such beneficiary designation is not valid or effective for any reason as
determined by the Committee, then the designated beneficiary or beneficiaries of such Participant
will be such Participant’s executor or administrator acting on behalf of such Participant’s estate
or, if there is no administration of such Participant’s estate, the Participant’s heirs at law.

     7.6 Unclaimed Benefits. In the case of a Plan benefit payable to or on behalf of a
Participant, if after a reasonable search the Committee is unable to locate the Participant or
beneficiary to whom such benefit is payable, upon the Committee’s determination thereof, such
benefit will be forfeited to the Employer. Notwithstanding the foregoing, if subsequent to any
such forfeiture the Participant or beneficiary to whom such benefit is payable makes a valid claim
for such benefit within a reasonable (as determined by and in the discretion of the Committee)
period of time following the date such Plan benefit became payable, such forfeited benefit will be
payable pursuant to the Plan provisions.

     7.7 Minors or Incapacitated Persons. If a Participant or beneficiary entitled to
receive a Plan benefit is a minor, is determined by the Committee in its discretion to be
incompetent, or is adjudged by a court of competent jurisdiction to be legally incapable of giving
valid receipt and discharge for a benefit provided under the Plan, the Committee may pay such
benefit to the duly appointed guardian or conservator of such Participant or beneficiary for the
account of such Participant or beneficiary. If no guardian or conservator has been appointed for
such Participant or beneficiary, the Committee may pay such benefit to any third party who is
determined by the Committee, in its sole discretion, to be authorized to receive such benefit for
the account of such Participant or beneficiary. Such payment will operate as a full discharge of
all liabilities and obligations of the Committee, the Employer, the Board, and any fiduciary of the
Plan with respect to such benefit.

VIII.

Withdrawals and Loans

     8.1 Early Withdrawals.

          8.1.1 Except as provided in Subsection 8.1.2, a Participant is not permitted to make
withdrawals from any Account prior to the Participant’s entitlement to a distribution of such
Account in accordance with Article VII.

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          8.1.2 In the event that the Committee, upon written petition of the Participant, determines in
its sole discretion that the Participant has suffered an Unforeseeable Financial Emergency, the
Participant will be entitled to withdraw from his or her [Compensation Deferral Account(s) (but not
from his or her Company Credits Accounts)] [Accounts] an amount not to exceed the lesser of (1) the
amount determined by the Committee as necessary to meet the Participant’s needs created by the
Unforeseeable Financial Emergency (which may include amounts necessary to pay any federal, state,
or local income taxes or penalties reasonably anticipated to result from the distribution) or (2)
the then total value of the Participant’s Vested Interest in such Account(s). If approved by the
Committee, such withdrawal will be paid in a single lump sum payment as soon as administratively
practicable after the Committee has made its determination that an Unforeseeable Financial
Emergency exists and of the permissible amount of such withdrawal.

          8.1.3 If the Participant makes a withdrawal under Subsection 8.1.2, the Participant’s
Compensation Deferral elections will immediately cease, and the Participant may not again elect to
defer a percentage of his or her Compensation until an Election Date that is at least 12 months
after such withdrawal (and only then by complying with the procedural requirements set forth in
Subsections 3.1.1 and 3.1.2).

     8.2 No Loans. Participants are not, at any time, permitted to borrow from their
Accounts.

IX.

Administration of Plan

     9.1 The Committee.

          9.1.1 The general administration of the Plan will be vested in the Committee, which will be
the “administrator” for purposes of ERISA. The Committee will be appointed by the Board and will
consist of one or more persons. In the event that no Committee is appointed by the Board or there
are no remaining members of the Committee, the Compensation Committee of the Board will be the
“Committee.” Any individual, whether or not an Employee, is eligible to become a member of the
Committee.

          9.1.2 Each member of the Committee will serve until he or she resigns, dies, or is removed by
the Board. At any time during his or her term of office, a member of the Committee may resign by
giving written notice to the Board and the Committee, such resignation to become effective upon the
appointment of a substitute member or, if earlier, the lapse of 30 days after such notice is given
as herein provided. At any time during his or her term of office, and for any reason, a member of
the Committee may be removed by the Board with or without cause, and the Board may in its
discretion fill any vacancy that may result therefrom. Any member of the Committee who is an
Employee or a member of the Board will automatically cease to be a member of the Committee as of
the date he or she ceases to be an Employee or a member of the Board.

          9.1.3 No member of the Committee will have any right to vote or decide upon any matter
relating solely to himself or herself under the Plan or to vote in any case in which his or her
individual right to claim any benefit under the Plan is particularly involved. In any case in
which a Committee member is so disqualified to act and a majority of the remaining members cannot
agree, the Board will appoint a temporary substitute member to exercise all the powers of the
disqualified member concerning the matter in which he or she is disqualified.

     9.2 Committee Powers and Duties. The Committee will administer and enforce the Plan
according to the terms and provisions hereof and, except as otherwise provided in the Plan, will
have all powers necessary to accomplish these purposes, including, but not by way of limitation,
all powers

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specifically granted it under the Plan and the complete and absolute discretion to construe
all provisions of the Plan and make all factual determinations and the right, power, authority, and
duty, in its sole and absolute discretion:

          (1) To make rules, regulations, and bylaws for the administration of the Plan that are
not inconsistent with the terms and provisions hereof, and to enforce the terms of the Plan
and the rules and regulations promulgated thereunder by the Committee;

          (2) To construe all terms, provisions, conditions, and limitations of the Plan;

          (3) To correct any defect or to supply any omission or to reconcile any inconsistency
that may appear in the Plan in such manner and to such extent as it will deem in its
discretion expedient to effectuate the purposes of the Plan;

          (4) To employ and compensate such accountants, attorneys, investment advisors, and
other agents, employees, and independent contractors as the Committee may deem necessary or
advisable for the proper and efficient administration of the Plan;

          (5) To determine all questions relating to eligibility;

          (6) To determine whether and when there has been a termination of a Participant’s
employment with the Employer, and the reason for such termination; and

          (7) To make a determination as to the right of any person to a benefit under the Plan
and to prescribe procedures to be followed by distributees in obtaining benefits hereunder.

     9.3 Claims Review.

          9.3.1 In the event an individual (1) does not receive a benefit but believes he or she is
entitled to one or (2) receives a benefit but believes he or she is entitled to a greater amount,
such individual may file with the Committee a written claim for such benefit, which claim must be
filed within 60 days of either the date upon which the individual received a benefit that he or she
felt was insufficient or, if later, the date upon which occurred the event that he or she believes
entitled him or her to a benefit. In connection with the submission of such claim, the individual
may examine the Plan and any other relevant documents relating to the claim and may submit written
comments relative to the claim to the Committee coincident with the filing of the claim, and the
Committee may require additional information to be furnished in connection with such claim.

          9.3.2 In any case in which a claim for Plan benefits of a Participant or his or her
beneficiary is denied or modified, the Committee will furnish written notice to the Participant,
beneficiary, or representative of the Participant or his or her beneficiary (the “claimant”) within
90 days after such claim is filed with the Committee; provided, however, that if the need for
additional information relating to such claim necessitates an extension of the 90-day period, the
claimant will be informed in writing prior to the end of the initial 90-day period of the need for
an extension of time, and written notice of the disposition of such claim will be provided to the
claimant within 180 days after the date the claim is filed with the Committee. The extension
notice will indicate the special circumstances requiring the extension of time and the date by
which a decision will be made. If the extension is due to the claimant’s failure to submit
information necessary to review the claim, the notice of extension will afford the claimant 45 days
to provide the required information, and the Committee’s deadline to provide notice of the claim’s
disposition will be tolled from the date the Committee sends the notice of extension to the earlier
of (1) the date the Committee receives the requested information or (2) the expiration of the
45-day period afforded to the claimant to provide the requested information. If the claimant fails
to

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provide the requested information by the expiration of such 45-day period, the benefit
determination will be made without regard to the requested information.

          9.3.3 The notice of a claim’s disposition provided to the claimant will contain the following:

          (1) The specific reason or reasons for the denial or modification;

          (2) Specific reference to pertinent Plan provisions on which the denial or modification
is based;

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

          (4) An explanation of how the claimant may perfect his or her claim and obtain a full
and fair review of such denial or modification pursuant to Subsection 9.3.4, including the
time limits applicable to such review, and a statement of the claimant’s right to bring a
civil action under section 502(a) of ERISA following an adverse determination on review.

          9.3.4 In the event a claim for benefits is denied or modified, if the claimant desires to have
such denial or modification reviewed, the claimant must, within 60 days following receipt of the
notice of such denial or modification, submit a written request for a review to the Committee. A
claimant will be provided, upon request and free of charge, access to and copies of all documents,
records, and other information relevant to the claim for benefits, which consist of: (1) documents,
records, or other information relied upon for the benefit determination, (2) documents, records, or
other information submitted, considered, or generated without regard to whether such document,
record, or other information was relied upon in making the benefit determination, and (3)
documents, records, or other information that demonstrates compliance with the standard claims
procedure. A claimant will be entitled to submit written comments, documents, records, and other
information relating to the claim for benefits. The review will take into account all comments,
documents, records, and other information submitted by the claimant relating to the claim, without
regard to whether such information was submitted or considered in the initial benefit
determination.

          9.3.5 Within 60 days following a request for a review submitted in accordance with Subsection
9.3.4, the Committee will, after providing a full and fair review, render its final decision in
writing to the claimant. The written decision will: (1) state specific reasons for such decision,
(2) provide specific reference to the specific plan provisions on which the decision is based, (3)
inform the claimant that he or she is entitled to receive, upon request and free of charge,
reasonable access to and copies of all documents, records, and other information relevant to the
claim for benefits, which consist of: (i) documents, records, or other information relied upon for
the benefit determination, (ii) documents, records, or other information submitted, considered, or
generated without regard to whether such document, record, or other information was relied upon in
making the benefit determination, and (iii) documents, records, or other information that
demonstrates compliance with the standard claims procedure, and (4) inform the claimant of his or
her right to bring an action under section 502(a) of ERISA. If special circumstances require an
extension of such 60-day period, the Committee’s decision will be rendered as soon as possible, but
not later than 120 days after receipt of the request for review. If such an extension of time for
review is required, written notice of the extension will be furnished to the claimant prior to the
commencement of the extension period, indicating the special circumstances requiring an extension
of time and the date by which the determination will be made. If the extension is required due to
the claimant’s failure to submit information necessary to review the claim, the extension notice
will afford the claimant 45 days to provide the required information, and the Committee’s deadline
to provide notice of the benefit determination on review will be tolled from the date the Committee
sends

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the notice of extension to the earlier of (I) the date the Committee receives the requested
information or (II) the expiration of the 45-day period afforded to the claimant to provide the
requested information. If the claimant fails to provide the requested information by the
expiration of such 45-day period, the benefit determination will be made without regard to the
requested information. The decision on review by the Committee will be binding and conclusive upon
all persons.

          9.3.6 Completion of the claims review procedures described in this Section 9.3 will be a
condition precedent to the commencement of any legal or equitable action in connection with a claim
for benefits under the Plan by a Participant, a beneficiary, or any other person or entity claiming
rights through such Participant or beneficiary.

     9.4 Payment of Expenses. All expenses incident to the administration of the Plan,
including, but not limited to, legal, accounting, and administrative, will be paid by the Employer.
Expenses will be allocated among the Employers as determined by the Committee in its discretion.

     9.5 Indemnity. To the extent permitted by applicable law, the Employer will indemnify
and hold harmless each current and former member of the Committee and each other current and former
employee of the Employer or Related Company to whom Plan administrative or fiduciary functions have
been delegated by the Committee or under the Plan against any and all expenses and liabilities
arising out of such individual’s administrative functions or fiduciary responsibilities under or
incident to the Plan, including any expenses and liabilities that are caused by or result from an
act or omission constituting the negligence of such individual in the performance of such functions
or responsibilities, but excluding expenses and liabilities that are caused by or result from such
individual’s own gross negligence or willful misconduct. Expenses against which such individual
will be indemnified hereunder will include, without limitation, the amounts of any settlement or
judgment, costs, counsel fees, and related charges reasonably incurred in connection with a claim
asserted or a proceeding brought or settlement thereof.

X.

Amendment and Termination of Plan 

     10.1 Amendment of Plan. Notwithstanding anything to the contrary, the Company has the
absolute and unconditional right to amend the Plan at any time, in whole or in part, on behalf of
the Company and each Participating Company; provided, however, that no amendment may be made that
would reduce the amounts (to the extent vested) credited to a Participant’s Accounts as of the date
of adoption of such amendment except to the extent such amounts could be reduced under the terms of
the Plan prior to the effective date of such amendment. All amendments to the Plan must be in
writing, signed by an authorized officer of the Company, and approved by the Board (which Board
action may be prior to the effective date of the amendment or subsequent to the effective date of
the amendment by ratification). Any oral statements or representations made by the Employer, the
Committee, or any other individual or entity that alter, modify, amend, or are inconsistent with
the written terms of the Plan are invalid and unenforceable and may not be relied upon by any
Employee or by any other individual or entity.

     10.2 Termination of Plan. Notwithstanding anything to the contrary, the Company has
the absolute and unconditional right to terminate the Plan at any time on behalf of the Company and
each Participating Company. However, no termination will reduce the amount of any accrued and
vested benefit for any Participant to which he or she is entitled under the Plan on or prior to the
effective date of such termination, except to the extent such benefit could be reduced under the
terms of the Plan prior to such termination. Any termination of the Plan must be approved by the
Board (which Board action may be prior to the effective date of the termination or subsequent to
the effective date of the termination by ratification). In the event the Plan is terminated,
notwithstanding any other form of benefit elected by the Participant, the balance of each
Participant’s Accounts will be paid to such Participant or his or her

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designated beneficiary in the manner selected by the Committee in its discretion, which may
include the payment of a single lump sum cash payment, in full satisfaction of all of such
Participant’s or beneficiary’s benefits hereunder; provided, however, that no distribution of any
Participant’s benefit will be made prior to the time otherwise provided under the Plan unless the
Plan is amended to provide for earlier payment in connection with such termination and (1) all
nonqualified deferred compensation plans of the Company and all Related Companies that are the same
type as the Plan are also terminated; (2) no new plan of the same type as the Plan may be
established by the Company or any Related Company within five years of the termination; (3) no such
payment may be made within 12 months of such termination; (4) all such payments must be made within
24 months of such termination; and (5) any other applicable requirements set forth in Internal
Revenue Service guidelines are met.

XI.

Participating Companies

     11.1 Designation of Participating Companies.

          11.1.1 The Committee may designate any Related Company to participate in the Plan as a
“Participating Company” by written instrument delivered to the Secretary of the Company and to the
designated Participating Company. Such written instrument will specify the effective date of such
designated participation, may incorporate specific provisions relating to the operation of the Plan
that apply to the Participating Company only, and will become, as to such Participating Company and
its employees, a part of the Plan. Each Participating Company will be conclusively presumed to
have consented to its designation and to have agreed to be bound by the terms of the Plan and any
and all amendments thereto upon its submission of any information required by the terms of or with
respect to the Plan; provided, however, that the terms of the Plan may be amended so as to increase
the obligations of a Participating Company only with the consent of such entity, which consent will
be conclusively presumed to have been given by such Participating Company upon its submission,
after receipt of notice of any such amendment, of any information required by the terms of, or with
respect to, the Plan.

          11.1.2 Except as modified by the Committee in the written instrument described in Subsection
11.1.1, the provisions of the Plan will be applicable with respect to each Participating Company
separately, and amounts payable hereunder for or on behalf of a Participant will be paid by the
Participating Company that employs such Participant.

     11.2 Termination of Participating Company’s Participation.

          11.2.1 Any Participating Company, by appropriate action of its board of directors or
noncorporate counterpart, may terminate its participation in the Plan by giving prior written
notice of such termination to the Committee and the Secretary of the Company. Moreover, the
Committee may, in its discretion, terminate a Participating Company’s Plan participation at any
time by giving prior written notice to such Participating Company. In addition, a Participating
Company will cease participation in the Plan immediately upon its no longer being a Related
Company.

          11.2.2 Upon termination of a Participating Company’s participation in the Plan, the Company
will transfer to such Participating Company, as soon as administratively practicable after such
termination, sponsorship of the portion of the Plan attributable to the participation of the
employees of such Participating Company.

-16-

 

XII.

Miscellaneous

     12.1 Not Contract of Employment. The adoption and maintenance of the Plan will not be
deemed to be a contract between the Employer and any person or to be consideration for the
employment of any person. Nothing contained herein will be deemed to give any person the right to
be retained in the employ of the Employer or as a member of the Board or to restrict the right of
the Employer to discharge any person at any time, nor will the Plan be deemed to give the Employer
the right to require any person to remain in the employ of the Employer or as a member of the Board
or to restrict any person’s right to terminate his or her employment or Board membership at any
time.

     12.2 Assignment Forbidden. The interest of a Participant or his or her beneficiary or
beneficiaries hereunder may not be sold, transferred, assigned, or encumbered in any manner, either
voluntarily or involuntarily, and any attempt to anticipate, alienate, sell, transfer, assign,
pledge, encumber, or charge the same will be null and void, nor will the benefits hereunder be
liable for or subject to the debts, contracts, liabilities, engagements, or torts of any person to
whom such benefits or funds are payable, nor will they be an asset in bankruptcy or subject to
garnishment, attachment, or other legal or equitable proceedings. The preceding notwithstanding,
the Committee will comply with the terms and provisions of an order that contains the elements of a
“qualified domestic relations order” as defined in section 206(d) of ERISA.

     12.3 Withholding/Deductions. All benefit payments provided for hereunder will be
subject to deduction for (1) withholding required of the Employer under any applicable local,
state, or federal law (as such laws are interpreted by the Employer) and (2) any amounts owed by
the respective Participant to the Employer at the time of such payment. In addition, a
Participant’s Accounts and benefit payments from such Accounts will be subject to deduction for
distributions from such Accounts required by a domestic relations order if that order meets the
requirements of a “qualified domestic relations order” as defined in section 414(p) of the Code.

     12.4 Severability. If any provision of the Plan is held to be illegal or invalid for
any reason, said illegality or invalidity will not affect the remaining provisions hereof; instead,
each provision will be fully severable, and the Plan will be construed and enforced as if said
illegal or invalid provision had never been included herein.

     12.5 Governing Law. All provisions of the Plan will be construed in accordance with
the laws of the state of Texas (without regard to any conflict of laws principles that refer to the
laws or jurisdiction of any other state) except to the extent preempted by federal law.

     Executed this ___day of ______20___.

	 	 	 	 	 
	 	Activant Solutions Inc.

 	 
	 	By:  	 	 
	 	 	Printed Name:  	 	 
	 	 	 	 
	 

-17-exv10w1

 

Exhibit 10.1

SECOND AMENDMENT TO CREDIT AGREEMENT

AND

FIRST AMENDMENT TO GUARANTEE AND COLLATERAL AGREEMENT

     SECOND AMENDMENT TO CREDIT AGREEMENT AND FIRST AMENDMENT TO GUARANTEE AND COLLATERAL
AGREEMENT, dated as of February 8, 2008 (this “Amendment”), among TRONOX INCORPORATED, a
Delaware corporation (“Holdings”), TRONOX WORLDWIDE LLC, a Delaware limited liability
company (the “Borrower”), the several banks and other financial institutions or entities
from time to time parties thereto (the “Lenders”), LEHMAN BROTHERS INC. and CREDIT SUISSE,
as joint lead arrangers and joint bookrunners (in such capacity, the “Arrangers”), ABN AMRO
BANK N.V., as syndication agent (in such capacity, the “Syndication Agent”), JPMORGAN CHASE
BANK, N.A. AND CITICORP USA, INC., as co-documentation agents (in such capacity, the
“Documentation Agents”), LEHMAN COMMERCIAL PAPER INC., as administrative agent (in such
capacity, the “Administrative Agent”), and the parties listed as grantors on the signature
pages hereto (the “Grantors”).

WITNESSETH:

     WHEREAS, (i) Holdings, the Borrower, the Lenders, the Arrangers, the Administrative Agent and
the other agents referred to therein are parties to that certain Credit Agreement, dated as of
November 28, 2005, as amended by First Amendment dated as of March 12, 2007 (as heretofore amended,
restated or otherwise modified and in effect on the date hereof, the “Credit Agreement”)
and (ii) the Borrower, the Grantors signatory thereto and the Administrative Agent are parties to
that certain Guarantee and Collateral Agreement, dated as of November 28, 2005, in favor of the
Administrative Agent for the benefit of the Secured Parties (as heretofore amended, restated or
otherwise modified and in effect on the date hereof, the “Guarantee and Collateral
Agreement);

     WHEREAS, the parties hereto desire to amend the Credit Agreement and the Guarantee and
Collateral Agreement on the terms and subject to the conditions set forth herein; and

     WHEREAS, the Lenders and the Administrative Agent have agreed to make such amendments solely
upon the terms and conditions provided for in this Amendment;

     NOW, THEREFORE, in consideration of the premises herein contained and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

     1. Defined Terms. Unless otherwise noted herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit Agreement.

     2. Amendments to Credit Agreement. In reliance on the representations and warranties
set forth in Section 4 below and subject to the satisfaction of the conditions set forth in Section
5 below, the parties hereby agree to the following amendments (the “Credit Agreement
Amendments”):

1

 

          (a) The definitions of “Applicable Margin” and “Qualified Counterparty” in Section 1.1 of the
Credit Agreement are hereby amended and restated in their entirety to read as follows:

     “‘Applicable Margin’: for each Type of Loan under each Facility, at any time,
the rate per annum for such type of Loan determined pursuant to the Pricing Grid on the
basis of the Facility Ratings in effect at such time; provided that, if the Consolidated
Quarterly Leverage Ratio for any fiscal quarter in 2008 is equal to or exceeds 4.25x, the
“Applicable Margin” for the next succeeding fiscal quarter shall be the rate per annum for
such Loan determined pursuant to the Pricing Grid plus .50%; provided further that, if the
Consolidated Quarterly Leverage Ratio for any fiscal quarter in 2009 is equal to or exceeds
4.00x, the “Applicable Margin” for the next succeeding fiscal quarter shall be the rate per
annum for such Loan determined pursuant to the Pricing Grid plus .50%.”

     “‘Qualified Counterparty’: (i) with respect to any Specified Hedge Agreement or
Specified Cash Management Agreement (other than any Specified Citigroup Cash Management
Agreement or any Specified ABN AMRO Cash Management Agreement), any counterparty thereto
that, at the time such Specified Hedge Agreement or Specified Cash Management Agreement was
entered into, was a Lender or a Lender Affiliate, (ii) with respect to the Specified Letter
of Credit, the Specified Letter of Credit Issuer, (iii) with respect to any Specified
Citigroup Cash Management Agreement, Citicorp USA, Inc. or the Lender Affiliate thereof
party thereto on the Closing Date, or (iv) with respect to any Specified ABN AMRO Cash
Management Agreement, ABN AMRO Bank N.V. (for itself and on behalf of its affiliates) or the
Lender Affiliate thereof party thereto on the Closing Date, in the case of (i), (ii), (iii)
or (iv) if (but only if) such Person has agreed to be bound by the provisions of Section 7.2
of the Guarantee and Collateral Agreement as if it were a party thereto and by the
provisions of Section 9 of this Agreement as if it were a Lender party hereto.”

          (b) The definitions of “Consolidated Quarterly Leverage Ratio” and “Specified ABN AMRO Cash
Management Agreement” are hereby added to Section 1.1 of the Credit Agreement to read as follows:

     “‘Consolidated Quarterly Leverage Ratio’”: of any Person for any fiscal
quarter, the ratio of (a) the average of the Consolidated Total Debt for each day of such
period to (b) Consolidated EBITDA of Holdings and its Subsidiaries as at the last day of
such period with respect to the four consecutive fiscal quarters of Holdings ending on such
date; provided that for purposes of calculating Consolidated EBITDA of Holdings and its
Subsidiaries for any period, (i) the Consolidated EBITDA of any Person acquired by Holdings
or its Subsidiaries during such period shall be included on a pro forma basis for such
period (assuming for purposes of the calculation of Consolidated EBITDA the consummation of
such acquisition and the incurrence or assumption of any Indebtedness in connection
therewith occurred on the first day of such period) and (ii) the Consolidated EBITDA of any
Person Disposed of Holdings or its Subsidiaries during such period shall be excluded for
such period (assuming for purposes of the calculation of Consolidated

2

 

EBITDA the consummation of such Disposition and the repayment of any Indebtedness in
connection therewith occurred on the first day of such period).”

     “‘Specified ABN AMRO Cash Management Agreement’”: as defined in the Guarantee
and Collateral Agreement.”

          (c) Section 7.1(a) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

“(a) Consolidated Total Leverage Ratio. Permit the Consolidated Total
Leverage Ratio for any period of four consecutive fiscal quarters of Holdings ending
with the last day of the fiscal quarters in fiscal years 2007 through 2011 of
Holdings listed below to exceed the ratio set forth below opposite such fiscal
quarter:

	 	 	 	 	 
	 	 	Consolidated Total
	Fiscal Quarter ended	 	Leverage Ratio
	March 31, 2007
	 	 	3.75x	 
	June 30, 2007
	 	 	3.75x	 
	September 30, 2007
	 	 	3.75x	 
	December 31, 2007
	 	 	3.75x	 
	March 31, 2008
	 	 	4.45x	 
	June 30, 2008
	 	 	4.90x	 
	September 30, 2008
	 	 	4.90x	 
	December 31, 2008
	 	 	4.90x	 
	March 31, 2009
	 	 	4.50x	 
	June 30, 2009
	 	 	4.35x	 
	September 30, 2009
	 	 	3.90x	 
	December 31, 2009
	 	 	3.50x	 
	March 31, 2010 and thereafter
	 	 	2.50x”	 

          (d) Section 7.1(b) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

“(b) Consolidated Interest Coverage Ratio. Permit the Consolidated
Interest Coverage Ratio for any period of four consecutive fiscal quarters
of Holdings ending the last day of the fiscal quarters in fiscal years 2007
through 2011 of Holdings listed below, to be less than the ratio set forth
below opposite such fiscal quarter:

3

 

	 	 	 	 	 
	 	 	Consolidated Interest
	Fiscal Quarter Ended	 	Coverage Ratio
	March 31, 2007
	 	 	2.00x	 
	June 30, 2007
	 	 	2.00x	 
	September 30, 2007
	 	 	2.00x	 
	December 31, 2007
	 	 	2.00x	 
	March 31, 2008
	 	 	1.00x	 
	June 30, 2008
	 	 	1.00x	 
	September 30, 2008
	 	 	0.80x	 
	December 31, 2008
	 	 	0.80x	 
	March 31, 2009
	 	 	1.25x	 
	June 30, 2009
	 	 	1.25x	 
	September 30, 2009
	 	 	1.75x	 
	December 31, 2009
	 	 	1.75x	 
	March 31, 2010 and thereafter
	 	 	4.00x”	 

          (e) Annex A of the Credit Agreement is hereby amended and restated in its entirety to read as
set forth on Annex A hereto.

     3. Amendments to Guarantee and Collateral Agreement. In reliance on the
representations and warranties set forth in Section 4 below and subject to the satisfaction of the
conditions set forth in Section 5 below, the parties hereby agree to the following amendments:

          (a) The definitions of “Qualified Counterparty” and “Specified Cash Management Agreement” in
Section 1.1 of the Guarantee and Collateral Agreement are hereby amended and restated in their
entirety to read as follows:

     “Qualified Counterparty: (i) with respect to any Specified Hedge Agreement or Specified
Cash Management Agreement (other than any Specified Citigroup Cash Management Agreement or
any Specified ABN AMRO Cash Management Agreement), any counterparty thereto that, at the
time such Specified Hedge Agreement or Specified Cash Management Agreement was entered into,
was a Lender or a Lender Affiliate, (ii) with respect to the Specified Letter of Credit, the
Specified Letter of Credit Issuer, (iii) with respect to any Specified Citigroup Cash
Management Agreement, Citicorp USA, Inc. or the Lender Affiliate thereof party thereto on
the Closing Date, or (iv) with respect to any Specified ABN Amro Cash Management Agreement,
ABN AMRO Bank N.V. (for itself and on behalf of its affiliates) or the Lender Affiliate
thereof party thereto on the Closing Date, in the case of (i), (ii), (iii) or (iv) if (but
only if) such Person has agreed to be bound by the provisions of Section 7.2 hereof as if it
were a party hereto and by the provisions of Section 9 of the Credit Agreement as if it were
a Lender party thereto.”

     “Specified Cash Management Agreement: (x) any Cash Management Agreement (a) entered
into by (i) Holdings, the Borrower or any Subsidiary Guarantor and (ii) any Lender or Lender
Affiliate and (b) which has been designated by the Lender and the Borrower, by notice to the
Administrative Agent not later than 90 days after the

4

 

execution and delivery thereof by any such Loan Party as a Specified Cash Management
Agreement, (y) any Specified Citigroup Cash Management Agreement and (z) any Specified ABN
AMRO Cash Management Agreement (each of which is hereby designated as a Specified Cash
Management Agreement); provided that the designation of any Cash Management Agreement as a
Specified Cash Management Agreement shall not create in favor of any Lender or Qualified
Counterparty that is a party thereto any rights in connection with the management or release
of any Collateral or of the obligations of any Guarantor under this Guarantee and Collateral
Agreement.”

          (b) The definition of “Specified ABN AMRO Cash Management Agreement” is hereby added to
Section 1.1 of the Guarantee and Collateral Agreement to read as follows:

     “Specified ABN AMRO Cash Management Agreement: that certain Cross-Border Cash Pooling
Agreement, Zero Balancing Arrangement dated as of September 24, 2002 between Tronox Pigments
International GmbH (formerly known as Kerr-McGee Pigments International GmbH), a Switzerland
corporation and ABN AMRO Bank N.V., for itself and on behalf of each Account Affiliate (as
defined therein), as thereafter amended from time to time.”

     4. Representations and Warranties. To induce the Administrative Agent and the Lenders
to enter into this Amendment each of Holdings, the Borrower and each Grantor, jointly and
severally, represents and warrants as of the date hereof to the Administrative Agent and the
Lenders that:

          (a) Each of Holdings, the Borrower and each Grantor (i) has the corporate or limited liability
company, as applicable, power and authority, and the legal right, to make, deliver and perform this
Amendment and (ii) has taken all necessary corporate or other organizational action to authorize
the execution, delivery and performance of this Amendment;

          (b) No material consent or material authorization of, material filing with, material notice
to, material Permit from or other material act by or in respect of, any Governmental Authority and
no material consent or material authorization of, material filing with, material notice to or other
material act by or in respect of any other Person is required in connection with the execution,
delivery, performance, validity or enforceability of this Amendment except consents,
authorizations, filings and notices which prior to the Amendment Effective Date have been obtained
or made and each of which on the Amendment Effective Date are in full force and effect;

          (c) This Amendment (i) has been duly executed and delivered on behalf of each of Holdings, the
Borrower and each Grantor and (ii) constitutes a legal, valid and binding obligation of each such
Person, enforceable against each such Person in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general equitable principles
(whether enforcement is sought by proceedings in equity or at law);

5

 

          (d) The execution, delivery and performance of this Amendment will not violate in any material
respect any material Requirement of Law or any Material Contractual Obligation of Holdings, the
Borrower or any Grantor and will not result in, or require, the creation or imposition of any Lien
on any of their respective properties or revenues pursuant to any such material Requirement of Law
or any such Material Contractual Obligation (other than the Liens created by the Security
Documents);

          (e) No Default or Event of Default has occurred and is continuing; and

          (f) After giving effect to the amendments herein, each of the representations and warranties
made by any Loan Party in or pursuant to the Loan Documents are true and correct in all material
respects on and as of the Amendment Effective Date as if made on and as of such date, except for
representations and warranties expressly stated to relate to a specific earlier date, in which case
such representations and warranties are true and correct in all material respects as of such
earlier date.

     5. Conditions to Effectiveness. This Amendment shall become effective on and as of
the date on which each of the following conditions is satisfied (the “Amendment Effective
Date”):

          (a) The Administrative Agent shall have received this Amendment, duly executed and delivered
by a duly authorized Responsible Officer of each of Holdings, the Borrower and each Grantor party
hereto;

          (b) The Administrative Agent shall have received a Lender Consent Letter, substantially in the
form of Exhibit A (the “Lender Consent Letter”), duly executed and delivered by the
Required Lenders;

          (c) Each of the Loan Parties shall have executed and delivered, or shall have caused to be
executed and delivered, such other items as the Administrative Agent may reasonably request, each
of which shall be in form and substance reasonably satisfactory to the Administrative Agent; and

          (d) The Administrative Agent shall have received all fees required to be paid by the Borrower
for which invoices have been presented supported by customary documentation, including reasonable
fees, disbursements and other charges of counsel to the Administrative Agent and the Lenders as set
forth in Section 6 below, on or before the Amendment Effective Date.

     6. Payment of Fees and Expenses.

          (a) In the event that the Required Lenders and the Borrower execute and deliver this
Amendment, the Borrower shall pay to the Administrative Agent, for the ratable benefit of the
Lenders consenting to this Amendment, an amendment fee equal to 0.50% of the sum of the aggregate
principal amount of each such Lender’s outstanding Term Loans immediately prior to the Amendment
Effective Date and each such Lender’s Revolving Credit Commitment immediately prior to such date,
payable on the Amendment Effective Date.

6

 

          (b) The Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable
out-of-pocket costs and expenses incurred in connection with this Amendment, any other documents
prepared in connection herewith and the transactions contemplated hereby, including, without
limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.

     7. Confirmation of Loan Documents by Loan Parties.

          (a) This Amendment shall constitute a Loan Document, as such term is defined in the Credit
Agreement. The amendments contained herein shall not be construed as a waiver or amendment of any
other provision of the Credit Agreement or the other Loan Documents or for any purpose except as
expressly set forth herein or a consent to any further or future action on the part of any Loan
Party that would require the waiver or consent of the Administrative Agent or the Lenders.

          (b) This Amendment is not intended to nor shall it be construed to create a novation or accord
and satisfaction with respect to any of the Obligations.

          (c) Each of the Borrower and Holdings hereby reaffirms its obligations under the Credit
Agreement and each of the other Loan Documents to which it is a party, as the same are amended
hereby, and agrees and acknowledges that each such document and all of such obligations thereunder,
remain in full force and effect after giving effect to this Amendment.

          (d) Each of the undersigned Grantors, in its capacity as such, consents to the Credit
Agreement Amendments and acknowledges and agrees that the guarantees and grants of security
interests made by such party contained in the Guarantee and Collateral Agreement and the other
Security Documents are, and shall remain, in full force and effect after giving effect to this
Amendment.

     8. Counterparts. This Amendment may be executed on any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed signature page of this Amendment or the Lender Consent Letters
by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof
or thereof.

     9. Severability. Any provision of this Amendment that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

     10. Integration. This Amendment and the other Loan Documents represent the entire
agreement of the Loan Parties, the Agents and the Lenders with respect to the subject matter hereof
and thereof, and there are no promises, undertakings, representations or warranties by any Agent or
any Lender relative to subject matter hereof not expressly set forth or referred to herein or in
the other Loan Documents.

7

 

     11. GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

     12. Submission To Jurisdiction; Waivers. Each of the parties hereto hereby irrevocably
and unconditionally:

          (a) submits for itself and its Property in any legal action or proceeding relating to this
Amendment and the other Loan Documents to which it is a party, or for recognition and enforcement
of any judgment in respect thereof, to the nonexclusive general jurisdiction of the courts of the
State of New York located in the borough of Manhattan, the courts of the United States of America
for the Southern District of New York, and appellate courts from any thereof;

          (b) consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or proceeding in any
such court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

          (c) agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such party at its address set forth in Section 10.2 to the Credit Agreement;

          (d) agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

          (e) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR
RECOVER IN ANY LEGAL ACTION OR PROCEEDING REFERRED TO IN THIS SECTION ANY SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGES.

     13. Ratification. Except as expressly modified hereby, the Credit Agreement and each other
Loan Document are each hereby ratified and confirmed by the parties hereto and remain in full force
and effect in accordance with the respective terms thereof.

[Signature Page to Follow]

8

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under
seal and delivered by their respective duly authorized officers on the date first written above.

	 	 	 	 	 
	 	TRONOX INCORPORATED, as a party to the Credit Agreement and as a Grantor

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	TRONOX WORLDWIDE LLC, in its capacity as Borrower and a Grantor

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 

[Signature Page to Second Amendment to Credit Agreement and First Amendment to Guarantee and Collateral Agreement]

 

 

	 	 	 	 	 
	 	GRANTORS:

TRONOX FINANCE CORP.

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	CIMARRON CORPORATION

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	TRONOX HOLDINGS, INC.

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	TRIPLE S MINERALS RESOURCES CORPORATION

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	TRONOX PIGMENTS (SAVANNAH) INC.

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 

[Signature Page to Second Amendment to Credit Agreement and First Amendment to Guarantee and Collateral Agreement]

 

 

	 	 	 	 	 
	 	TRIPLE S REFINING CORPORATION

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	SOUTHWESTERN REFINING COMPANY, INC.

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	TRANSWORLD DRILLING COMPANY

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	TRIANGLE REFINERIES, INC.

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	TRIPLE S, INC.

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 
	 	TRONOX LLC

 	 
	 	By:  	/s/ Mary Mikkelson
 	 
	 	 	Mary Mikkelson 	 
	 	 	Senior Vice President and
Chief Financial Officer 	 
	 

[Signature Page to Second Amendment to Credit Agreement and First Amendment to Guarantee and Collateral Agreement]

 

 

	 	 	 	 	 
	 	LEHMAN COMMERCIAL PAPER INC., as Administrative Agent

 	 
	 	By:  	/s/ Maria M. Lund
 	 
	 	 	Name:  	Maria M. Lund 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature Page to Second Amendment to Credit Agreement and First Amendment to Guarantee and Collateral Agreement]

 

 

Annex A

PRICING GRID FOR APPLICABLE MARGINS

AND COMMITMENT FEE RATE

	 	 	 	 	 	 	 	 	 
	        Facility Rating	 	Applicable Margin-	 	Commitment	 	Applicable Margin-
	    S&P	 	Moody’s	 	LIBOR Loans	 	Fee Rate	 	Base Rate Loans
	1. > BBB-
	 	Baa3
	 	2.00%
	 	0.375%
	 	1.00%
	2. BB+
	 	Ba1
	 	2.75%
	 	0.50%
	 	1.75%
	3. BB
	 	Ba2
	 	3.00%
	 	0.50%
	 	2.00%
	4. BB-
	 	Ba3
	 	3.50%
	 	0.50%
	 	2.50%
	5. < B+
	 	B1
	 	4.00%
	 	0.50%
	 	3.00%

If each of Moody’s and S&P shall not have in effect a rating for the Credit Facilities, then each
of such rating agencies shall be deemed to have established a rating in category 5. If the ratings
of Moody’s and S&P for the Credit Facilities shall fall within different categories, the Applicable
Margins and the Commitment Fee Rate shall be based on the lower of the ratings, unless one of the
ratings is two or more categories lower than the other, in which case the Applicable Margins and
the Commitment Fee Rate shall be determined by reference to the category next above that of the
lower of the ratings; provided, however, that if only one of Moody’s or S&P shall
have established a rating for the Credit Facilities, then the Applicable Margins and the Commitment
Fee Rate shall be determined by reference to such available rating.

Notwithstanding the foregoing, at all times after maturity or acceleration of the maturity of the
Loans or during the occurrence and continuance of an Event of Default, the Applicable Margins and
the Commitment Fee Rate set forth in category 5 shall apply.

 

 

EXHIBIT A

LENDER CONSENT LETTER

TRONOX WORLDWIDE LLC

CREDIT AGREEMENT DATED AS OF NOVEMBER 28, 2005

			
	To:	 	Lehman Commercial Paper Inc.,

as Administrative Agent

745 Seventh Avenue

New York, New York 10019

Attn: [__________]

Ladies and Gentlemen:

     Reference is made to (i) the CREDIT AGREEMENT, dated as of November 28, 2005, as amended by
First Amendment dated as of March 12, 2007 (as amended, supplemented or otherwise modified in
writing from time to time, the “Credit Agreement”), among TRONOX INCORPORATED, a Delaware
corporation (“Holdings”), TRONOX WORLDWIDE LLC, a Delaware limited liability company (the
“Borrower”), the several banks and other financial institutions or entities from time to
time parties thereto (the “Lenders”), LEHMAN BROTHERS INC. and CREDIT SUISSE, as joint lead
arrangers and joint bookrunners (in such capacity, the “Arrangers”), ABN AMRO BANK N.V., as
syndication agent (in such capacity, the “Syndication Agent”), JPMORGAN CHASE BANK, N.A.
AND CITICORP USA, INC., as co-documentation agents (in such capacity, the “Documentation
Agents”), and LEHMAN COMMERCIAL PAPER INC., as administrative agent (in such capacity, the
“Administrative Agent”) and (ii) the GUARANTEE AND COLLATERAL AGREEMENT, dated as of
November 28, 2005 (as amended, supplemented or otherwise modified in writing from time to time, the
“Guarantee and Collateral Agreement”), among the Borrower, the other Grantors named therein
and the Administrative Agent. Unless otherwise defined herein, capitalized terms used herein and
defined in the Credit Agreement are used herein as therein defined.

          The Borrower has requested that the Required Lenders consent to the amendment of the
provisions of the Credit Agreement and the Guarantee and Collateral Agreement solely on the terms
described in the Second Amendment to Credit Agreement and First Amendment to Guarantee and
Collateral Agreement, dated as of __________ ___, 2008, substantially in the form delivered to the
undersigned Lender on or prior to the date hereof (the “Amendment”).

          Pursuant to Section 10.1 of the Credit Agreement, the undersigned Lender hereby consents to
the execution by the Administrative Agent of the Amendment.

A-1

 

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	 	 
	 	(NAME OF LENDER) 	 
	 	 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated: ___________, 2008

[Signature Page to Lender Consent Letter]

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