Document:

exv10w8

Exhibit 10.8

LOGAN’S ROADHOUSE, INC. NON-QUALIFIED

SAVINGS PLAN

RABBI TRUST AGREEMENT

 

 

	 	 	 	 	 
	ARTICLE	 	PAGE	 
	I Establishment of Trust; Appointment and Acceptance of Trustee
	 	 	2	 
	 
	 	 	 	 
	1.01 Establishment of Trust
	 	 	2	 
	1.02 Title of Trust
	 	 	2	 
	1.03 Appointment and Acceptance of Trustee
	 	 	2	 
	1.04 Receipts
	 	 	3	 
	1.05 Trust
	 	 	3	 
	1.06 Another Trust
	 	 	3	 
	1.07 Effectiveness
	 	 	3	 
	 
	 	 	 	 
	II Payments to Plan Participants and Their Beneficiaries; Directions, and Taxes
	 	 	4	 
	 
	 	 	 	 
	2.01 Payments to Plan Participants and Their Beneficiaries
	 	 	4	 
	2.02 Fiduciaries
	 	 	4	 
	2.03 Directions
	 	 	5	 
	2.04 Disputed Payments
	 	 	5	 
	2.05 Taxes
	 	 	5	 
	2.06 Expenses of Administration
	 	 	5	 
	 
	 	 	 	 
	III Trustee Responsibility Regarding Payments to Trust Beneficiary when Company
is Insolvent
	 	 	6	 
	 
	 	 	 	 
	3.01 Insolvency of the Company
	 	 	6	 
	 
	 	 	 	 
	IV Investments
	 	 	8	 
	 
	 	 	 	 
	4.01 Investment Management
	 	 	8	 
	4.02 Investment Managers
	 	 	8	 
	4.03 Participant Direction
	 	 	8	 
	4.04 Selection of Investments
	 	 	8	 
	4.05 Funds Awaiting Investment
	 	 	8	 
	4.06 Voting, Tendering and Other Rights
	 	 	9	 
	4.07 Services Through Affiliated Organizations
	 	 	9	 
	4.08 Investment Directions
	 	 	9	 
	4.09 Mutual and Other Investment Funds
	 	 	10	 
	 
	 	 	 	 
	V Investment Authority
	 	 	11	 
	 
	 	 	 	 
	5.01 Nondiscretionary Investment Powers
	 	 	11	 

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	ARTICLE	 	PAGE	 
	VI Disposition of Income
	 	 	14	 
	 
	 	 	 	 
	6.01 Disposition of Income
	 	 	14	 
	 
	 	 	 	 
	VII Accounting by Trustee; Records and Valuations
	 	 	15	 
	 
	 	 	 	 
	7.01 Records
	 	 	15	 
	7.02 Accountings
	 	 	15	 
	7.03 Valuation
	 	 	15	 
	 
	 	 	 	 
	VIII Responsibility of Trustee; Agents; and Indemnification
	 	 	16	 
	 
	 	 	 	 
	8.01 Standard of Care
	 	 	16	 
	8.02 Delegees; Agents of the Company
	 	 	16	 
	8.03 Agents of Trustee
	 	 	16	 
	8.04 Protection of Designees
	 	 	17	 
	8.05 Indemnification
	 	 	17	 
	8.06 Trustee’s Reliance
	 	 	17	 
	8.07 Survival of Provisions
	 	 	17	 
	 
	 	 	 	 
	IX Payments to Trustee and Agents
	 	 	18	 
	 
	 	 	 	 
	9.01 Payments to the Trustee
	 	 	18	 
	9.02 Expenses and Compensation
	 	 	18	 
	 
	 	 	 	 
	X Resignation and Removal of Trustee
	 	 	19	 
	 
	 	 	 	 
	10.01 Resignation
	 	 	19	 
	10.02 Removal
	 	 	19	 
	10.03 Settlement of Account
	 	 	19	 
	10.04 Termination of Responsibility and Liability
	 	 	19	 
	10.05 Successor
	 	 	19	 
	 
	 	 	 	 
	XI Appointment of a Successor
	 	 	20	 
	 
	 	 	 	 
	11.01 Appointment of a Successor
	 	 	20	 
	 
	 	 	 	 
	XII Amendment or Termination
	 	 	21	 
	 
	 	 	 	 
	12.01 Amendment
	 	 	21	 
	12.02 Termination
	 	 	21	 

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	ARTICLE	 	PAGE	 
	XIII Miscellaneous
	 	 	22	 
	 
	 	 	 	 
	13.01 Conflict with Plan
	 	 	22	 
	13.02 Authority
	 	 	22	 
	13.03 Restriction on Alienation
	 	 	22	 
	13.04 Arbitration
	 	 	22	 
	13.05 Governing Law and Construction
	 	 	23	 
	13.06 Successors and Assigns
	 	 	23	 
	13.07 Gender
	 	 	23	 
	13.08 Headings
	 	 	23	 
	13.09 Counterparts
	 	 	23	 
	13.10 Special, Indirect or Consequential Damages
	 	 	23	 
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	A            Delegees and Agents
	 	 	25	 
	B            Selection of Investments, Including Investment
for Funds Awaiting Investment and Default Investment
	 	 	26	 
	C            Existing GICs/GACs
	 	 	27	 
	D            Trustee’s Fees
	 	 	28	 

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GRANTOR TRUST UNDER

LOGAN’S ROADHOUSE, INC. NON-QUALIFIED SAVINGS PLAN

This Trust Agreement is entered into as of October 2, 2006, by and between the Logan’s
Roadhouse, Inc. (the “Company”) and New York Life Trust Company, a New York corporation (the
“Trustee”).

WHEREAS, the Company has adopted the Logan’s Roadhouse, Inc. Non-Qualified Savings Plan (the
“Plan”), a nonqualified deferred compensation plan; and

WHEREAS, the Company has incurred or expects to incur liability under the terms of the Plan with
respect to the individuals participating in the Plan; and

“WHEREAS, the Company wishes to establish a trust (the “Trust”) and to contribute to the Trust
assets that shall be held therein, subject to the claims of the Company’s Insolvency, as herein
defined, until paid to Plan participants and their beneficiaries in such manner and at such times
as specified in the Plan; and

WHEREAS, it is the intention of the parties that this Trust shall constitute an unfunded
arrangement’ and shall not affect the status of the Plan as an unfunded plan maintained for the
purpose of providing deferred compensation for a select group of management or highly compensated
employees for purposes of Title I of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”); and

WHEREAS, it is the intention of the Company to make contributions to the Trust to provide itself
with a source of funds to assist it in the meeting of its liabilities under the Plan;

NOW, THEREFORE, the parties do hereby establish the Trust and agree that the Trust shall be
comprised, held and disposed of as follows:

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ARTICLE I

ESTABLISHMENT OF TRUST; APPOINTMENT

AND ACCEPTANCE OF TRUSTEE

1.01 Establishment of Trust

	 	(a)	 	The Company hereby deposits with the Trustee in trust one hundred dollars
($100), which shall become the principal of the Trust to be held, administered and
disposed of by the Trustee as provided in this Trust Agreement. All such money and
other property, all investments and reinvestments made therewith or proceeds thereof
and all earnings and profits thereon, less all payments and charges as authorized
herein, are hereafter referred to as the “Trust Fund.” The Trustee may use a general
disbursement account for distributions from the Trust Fund, without incurring any
liability for the payment of interest thereon, notwithstanding the Trustee’s receipt
of credit or interest in respect of funds held in such disbursement account.
	 
	 	(b)	 	The Trust hereby established shall be irrevocable.
	 
	 	(c)	 	The Trust is intended to be a grantor trust, of which Company is the
grantor, within the meaning of subpart E, part I, subchapter J, chapter 1, subtitle A
of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly.
	 
	 	(d)	 	The principal of the Trust, and any earnings thereon, shall be held separate
and apart from other funds of the Company and shall be used exclusively for the uses
and purposes of Plan participants and general creditors as herein set forth. Plan
participants and their beneficiaries shall have no preferred claim on, or any
beneficial ownership interest in, any assets of the Trust. Any rights created under
the Plan and this Trust Agreement shall be mere unsecured contractual rights of Plan
participants and their beneficiaries against the Company. Any assets held by the
Trust will be subject to the claims of the Company’s general creditors under federal
and state law in the event of Insolvency, as defined in Section 3.01 herein.
	 
	 	(e)	 	The Company, in its sole discretion, may at any time, or from time to time,
make additional deposits of cash or other property (acceptable to the Trustee) in trust with the
Trustee to augment the principal to be held, administered and disposed of by the
Trustee as provided in this Trust Agreement. Neither the Trustee nor any Plan
participant or beneficiary shall have any right to compel such additional deposits.

	1.02	 	Title of Trust. The Trust shall be known as the Logan’s Roadhouse, Inc. Non-Qualified
Savings Trust.

	1.03	 	Appointment and Acceptance of Trustee. The Company hereby appoints New York Life Trust
Company as Trustee of the Trust and represents that this Trust Agreement constitutes a legal,
valid and binding obligation of the Company.

	 	 	The Trustee accepts its appointment as Trustee hereunder.

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	1.04	 	Receipts. The Trustee shall receive in cash or other assets acceptable to
the Trustee, subject to any applicable minimum amount established by the Trustee, all
contributions paid or delivered to it in respect of the Plan and the Trust and all transfers
paid or delivered in respect of the Plan to the Trust from a predecessor trustee, provided
that the Trustee shall not be obligated to receive any such contribution or transfer unless
prior thereto, as the Trustee may specify, the Trustee has received such reconciliation,
allocation, investment or other information concerning, or such direction, contribution or
representation with respect to, the contribution or transfer or the source thereof as the
Trustee, in its sole discretion, may require. The Trustee shall have
no duty or authority to (a) require any contributions or transfers to be made in respect of the Plan or to the
Trustee, (b) compute any amount to be contributed or transferred in respect of the Plan to the
Trustee, or (c) determine whether amounts received by the Trustee comply with the Plan. The Trustee
shall not be responsible for any assets until it receives such assets.

	1.05	 	Trust. The Trust shall consist of all money and other property acceptable to and received by
the Trustee pursuant to Section 1.04 hereof, plus any income or gains on such assets and less
any investment loss or expense, benefit or disbursement paid pursuant to this Trust Agreement
or the Plan. The Trustee shall hold the Trust, without distinction between principal and
income, as a nondiscretionary trustee pursuant to the terms of this Trust Agreement. The
Trustee may use a general disbursement account for distributions from the Trust, without
incurring any liability for payment of interest thereon, notwithstanding the Trustee’s
receipt of credit or interest in respect of funds held in such disbursement account.

	1.06	 	Another Trust. If the Company so elects, and the Trustee consents, the Company may appoint
another trustee under the Plan with respect to assets which the Company desires to contribute
or . have transferred to the Trustee, but which the Trustee does not choose to accept. The
Trustee shall discharge its duties and responsibilities solely with respect to those assets of
the Trust delivered into its possession and shall have no duties or responsibilities or
obligations with respect to property of the other trust nor any liability for the acts or
omissions of the other trustee. As a condition to the Trustee’s consent to the appointment of
another trustee, the Company shall assure that record keeping, distribution and reporting
procedures are established on a coordinated basis between the Trustee and the other trustee as
the Trustee considers necessary or appropriate with respect to the Trust.

1.07  Effectiveness. This Trust Agreement shall become effective as of October 2, 2006.

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ARTICLE II

PAYMENTS TO PLAN PARTICIPANTS AND THEIR BENEFICIARIES;

DIRECTIONS, AND TAXES

2.01 Payments to Plan Participants and their Beneficiaries

	 	(a)	 	The Company shall deliver to the Trustee a schedule (the “Payment Schedule”)
that indicates the amounts payable in respect of each Plan participant (and his or her
beneficiaries), that provides a formula or other instructions acceptable to the Trustee
for determining the amounts so payable, the form in which such amount is to be paid (as
provided for or available under the Plan), and the time of commencement of payment of
such amounts. Except as otherwise provided herein, the Trustee shall make payments to
the _ Plan Sponsor in accordance with such Payment Schedule. The Company shall make
provision for the reporting and withholding of any federal, state or local taxes that
may be required to be withheld with respect to the payment of benefits pursuant to the
terms of the Plan and shall make provision for the payment of amounts withheld to the
appropriate taxing authorities.
	 
	 	(b)	 	The entitlement of a Plan participant or his or her beneficiaries to benefits
under the Plan shall be determined by the Company or such party as it shall designate
under the Plan, and any claim for such benefits shall be considered and reviewed under
the procedures set out in the Plan.
	 
	 	(c)	 	The Company may make payment of benefits directly to Plan participants or
their beneficiaries as they become due under the terms of the Plan. The Company shall
notify the Trustee of its decision to make payment of benefits directly prior to the
time amounts are payable to participants or their beneficiaries. In addition, if the
principal of the Trust, and any earnings thereon, are not sufficient to make payments
of benefits in accordance with the terms of the Plan, the Company shall make the
balance of each such payment as it falls due. The Trustee shall notify the Company
where principal and earnings are not sufficient.
	 
	 	(d)	 	Disbursements of money or property from the Trust shall be made by the Trustee
upon direction from the Company or its Delegee. Disbursements by the Trustee shall be
transmitted to the Company or a Delegee for delivery to the proper payees or to payee
addresses supplied by the Company a Delegee, and the Trustee’s obligation to make such
payments shall be satisfied upon such transmittal. The Trustee shall have no
obligation to determine the identity of persons entitled to disbursements under the
Plan or their addresses furnished by the Company or a Delegee in accordance with the
terms of this Trust. The Trustee shall not be required to make any disbursement in
excess of the liquidated value of the Trust at the time of the disbursement. The
Trustee shall not be responsible for the adequacy of the Trust to meet and discharge
any and all disbursements and liabilities under the Plan.

	2.02	 	Fiduciaries. The Company agrees that it is responsible for (i) the administration and
operation of the Plan, and (ii) the investment and management of Plan assets. The Company
may, upon written

4

 

	 	 	notice to the Trustee, delegate such responsibilities to other persons or entities (a
“Delegee”). In no event shall the Trustee assume such responsibilities.

	2.03	 	Directions. Directions from or on behalf of the Company or a Delegee shall be communicated
to the Trustee or the Trustee’s designee only in a manner and in accordance with procedures
acceptable to the Trustee. The Trustee’s designee shall be empowered to implement any such
directions, provided they are in accordance with procedures acceptable to the Trustee. The
Trustee shall have no liability for following any such directions or failing to act in the
absence of any such directions. The Trustee shall have no liability for the acts or omissions
of any person making or failing to make any directions under the Plan or this Trust Agreement
nor any duty or obligation to review any such direction, act or omission.

	2.04	 	Disputed Payments. If a dispute arises over the propriety of the Trustee making
any payment from the Trust, the Trustee may withhold the payment until the dispute has been
resolved by a court of competent jurisdiction or settled by the parties to the dispute. The
Trustee may consult legal counsel and shall be fully protected in acting upon the advice of
counsel. The Company hereby indemnifies the Trustee pursuant to Section 8.07 of this Trust
Agreement for any acts taken or failed to be taken in good faith by the Trustee under this
Section 2.04.

	2.05	 	Taxes. The Company will from time to time pay taxes of any and all kinds which are lawfully
levied or assessed upon or become payable in respect of the Trust Fund, the income or any
property forming a part thereof, or any security transaction pertaining thereto. To the
extent that any taxes lawfully levied or assessed upon the Trust Fund are not paid by the
Company, the Trustee is authorized, with or without direction from the Company, a Delegee or
any other person, to deduct from and charge against the Trust any taxes or assessments by any
lawful taxing or governmental authority, including interest and penalties with respect
thereto, which may be imposed upon the Trust or any account or the income thereof, or which
the Trustee is required to pay with respect to the interest of any person therein, under
existing or future laws. The Trustee shall have full power to pay any such tax or assessment,
provided that at least fifteen (15) days prior to making such payment the Trustee shall give
notice to the Company or Delegee of its intention to make such payment. Until paid, such
taxes shall be a lien against the Trust. The Trustee shall not be personally liable for any
such taxes, charges or assessments.

	2.06	 	Expenses of Administration. Expenses incurred by the Company, a Delegee, or any
Investment Manager designated pursuant to Section 4.02, or any other persons designated to
act on behalf of the Company, including reimbursement for expenses incurred in the
performance of their respective duties shall be paid from the Trust unless paid directly by
the Company.

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ARTICLE III

TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST

BENEFICIARY WHEN COMPANY IS INSOLVENT

3.01 Insolvency of the Company

	 	(a)	 	The Trustee shall tease payment of benefits to Plan participants and their
beneficiaries if the Company is Insolvent. The Company shall be considered
“Insolvent” for purposes of this Trust Agreement if (i) the Company is unable to pay
its debts as they become due, or (ii) the Company is subject to a pending proceeding
as a debtor under the United States Bankruptcy Code.
	 
	 	(b)	 	At all times during the continuance of this Trust, as provided in Section
1.01(b) hereof, the principal and income of the Trust shall be subject to claims of
general creditors of the Company under federal and state law as set forth below.

	 	(i)	 	The Board of Directors and the Chief Executive Officer of the
Company shall have the duty to inform the Trustee in writing of the Company’s
Insolvency. If a person claiming to be a creditor of Company alleges in writing
to the Trustee that the Company has become Insolvent, the Trustee shall
determine whether the Company is Insolvent and, pending such determination, the
Trustee shall discontinue payment of benefits to Plan participants or their
beneficiaries.
	 
	 	(ii)	 	Unless the Trustee has actual knowledge of the Company’s
Insolvency, or has received notice from the Company or a person claiming to be
a creditor alleging that the Company is Insolvent, the Trustee shall have no
duty to inquire whether the Company is Insolvent. The Trustee may in all events
rely on such evidence concerning the Company’s solvency as may be furnished to
the Trustee and that provides the Trustee with a reasonable basis for making a
determination concerning the Company’s solvency.
	 
	 	(iii)	 	If at any time the Trustee has determined that the Company is
Insolvent, the Trustee shall discontinue payments to Plan participants or their
beneficiaries and shall hold the assets of the Trust for the benefit of the
Company’s general creditors. Under such circumstances the Trustee shall suspend
Trust Fund payments and shall pay the assets held in the Trust Fund only as a
court of competent jurisdiction shall direct to satisfy claims of general
creditors of the Company. Nothing in this Trust Agreement shall in any way
diminish any rights of Plan participants or their beneficiaries to pursue their
rights as general creditors of the Company with respect to benefits due under
the Plan or otherwise.
	 
	 	(iv)	 	The Trustee shall resume the payment of benefits to Plan
participants or their beneficiaries in accordance with Section 2.01 of this
Trust Agreement only after the Trustee has determined that the Company is not
Insolvent (or is no longer Insolvent).

6

 

	 	(v)	 	Provided that there are sufficient assets, if the Trustee discontinues the payment of benefits from the Trust pursuant to this Section 3.01 of and subsequently resumes such
payments, the first payment following such discontinuance shall include the aggregate amount
of all payments due to Plan participants or their beneficiaries under the terms of the Plan
for the period of such discontinuance, less the aggregate amount of any payments made to
Plan participants or their beneficiaries by the Company in lieu of the payments provided for
hereunder during any such period of discontinuance.

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ARTICLE IV

INVESTMENTS

	4.01	 	Investment Management. The Company (or its Delegee) shall manage the investment of the
Trust. The Trustee shall invest the Trust as directed by the Company (or its Delegee), and
the Trustee shall have no discretionary control over, nor any other discretion regarding, the
investment or reinvestment of any asset of the Trust.

	4.02	 	Investment Managers. Notwithstanding any provision of the Plan to the contrary,
the Company may appoint one or more Investment Managers, who may be an affiliate of the
Trustee, provided such appointment does not violate any law or regulation, to direct the
Trustee in the investment of all or a specified portion of the assets of the Trust. Any such
Investment Manager shall be directed by the Company to act in accordance with the procedures
referred to in Section 4.08. The Company shall notify the Trustee in writing before the
effectiveness of the appointment or removal of any Investment Manager.

	 	 	If there is more than one Investment Manager whose appointment is effective under the Plan
at any one time, the Trustee shall, upon written instructions from the Company, establish
separate funds for control by each such Investment Manager. The funds shall consist of
those Trust assets designated by the Company.

	4.03	 	Participant Direction. In the event the Plan provides for participant or
beneficiary direction of investment of accounts of such participants and beneficiaries, then
the Company shall provide to the Trustee such information as the Trustee may specify for the
implementation of the directions in accordance with procedures established by the Trustee.

	4.04	 	Selection of Investments. Set forth on Schedule B attached hereto
are those investments, from among the permitted investments listed in Section 5.01 hereof and
subject to the Trustee’s acceptance of such investments, in which the assets of the Trust
shall be invested. Schedule B may be revised from time to time in writing by the Company or
any duly appointed Investment Manager, as the case may be, and delivered to the Trustee,
without formal amendment of this Trust Agreement. Notwithstanding the permissible investments
listed in Section 6.01 hereof, the Trustee may limit the categories of assets in which the
Trust may be invested.

	4.05	 	Funds Awaiting Investment. It is understood that the Trustee may, from time to
time, have on hand funds which are awaiting investment, or funds from the sale of Trust
assets which are awaiting reinvestment. In such event, the Trustee shall cause such funds to
be held on deposit with the Trustee’s custodian until such funds are used to settle
transactions or as may otherwise be contemplated hereunder. Notwithstanding the foregoing, if
by the close of the business day following the day on which the funds are received, the
Trustee is unable to identify the plan and trust to which any of such funds are to be
credited, the Trustee shall return such funds to the originating financial or other
institution. The interest on the aggregate cash balances the Trustee has on deposit with such
custodian shall be paid in accordance with Section 9.01 of this Agreement.

8

 

	4.06	 	Voting, Tendering and Other Rights. Except as otherwise set forth below,
the Trustee shall vote all proxy and other materials for all investments held by the Trust,
including, without limitation, securities issued by the Company (or any affiliate)
(“Company securities”) in accordance with the directions of the Company. The Trustee shall
follow all directions in this Section 4.06 and shall have no duty to exercise voting or
other rights relating to any such security or other asset of the Trust.

	4.07	 	Services Through Affiliated Organizations. The Trustee may enter into agreements
with New York Life Insurance Company (“NYLIFE”), NYLIFE Distributors LLC
(“Broker/Underwriter”), and any of their affiliates and/or subsidiaries, successors and
assigns for the provision of services to the Trust. The Trustee is specifically authorized to
place securities orders, settle securities trades, hold securities in custody and perform
related activities on behalf of the Trust through or by the Broker/Underwriter. The
Broker/Underwriter shall perform such acts for the participants’ accounts only if the Company
has designated the Broker/Underwriter as the brokerage firm for participants’ accounts under
the Plan and the Company and participants have received disclosure as described in this
Section 4.07.

	 	 	Trades and related activities effected through the Broker/Underwriter shall be subject to
fees and commissions established by the Broker/Underwriter, which may be paid from the
Trust or netted from the proceeds of trades.

	 	 	No trades shall be executed through the Broker/Underwriter or other services provided
unless the Company or its Delegee has received disclosure concerning the relationship of
NYLIFE, Broker/Underwriter, or their affiliates, as the case may be, to the Trustee, and
notice of the fees and commissions that may be paid to NYLIFE, the Broker/Underwriter,
Trustee and/or their affiliates or subsidiaries.

	4.08	 	Investment Directions. Directions for the investment or reinvestment of Trust
assets from the Company, a Delegee, or a Plan participant or beneficiary, as the case may be,
shall be communicated to, and implemented by, the Trustee, the Trustee’s designee or, with
the Trustee’s consent, a broker/dealer designated for the purpose by the Company or a
Delegee. Communication of any such direction to the Trustee or to such a designee or
broker/dealer shall be in a manner acceptable to the Trustee and shall conclusively be deemed
an authorization to the Trustee, such designee or broker/dealer to implement the direction.
The Trustee shall have no liability for it or any other person following such directions or
failing to act in the absence of any such directions. The Trustee shall have no liability for
the acts or omissions of any person directing the investment or reinvestment of Trust assets
or making or failing to make any direction referred to in Section 4.06. Neither shall the
Trustee have any duty or obligation to review any such investment or other direction, act or
omission or, except upon receipt of a proper direction, to invest or otherwise manage any
asset of the Trust which is subject to the control of any such person or to exercise any
voting or other right referred to in Section 4.06.

	 	 	In the event no direction is received with respect to investment or reinvestment of
uninvested Trust assets, such assets shall be invested by the Trustee in the investment
specified on Schedule B attached hereto.

	4.09	 	Mutual and Other Investment Funds. The Company may direct the Trustee to
purchase shares of a regulated investment company, or an interest in another pooled
investment fund (individually and

9

 

collectively referred to hereafter as “Investment Fund”) advised, managed or offered by NYLIFE,
Broker/Underwriter or Trustee, or an affiliate or subsidiary of any of them. If any such Investment
Fund held on behalf of the Trust or a participant account is terminated or reorganized, or a new
series or class of such Investment Fund is issued, pursuant to the terms set forth in the
prospectus, statement of additional information or other documents governing such Investment Fund,
the Trustee shall be authorized to surrender any shares or interests in such Investment Fund, and
accept and hold shares or interests of equivalent value issued in connection with such termination,
reorganization or issuance on behalf of the Trust and participant accounts, as applicable.

The Company acknowledges that the Company and the participants, if appropriate, have received a
copy of the prospectus or other similar disclosure document for each Investment Fund selected by
the Company, a Delegee, any duly appointed Investment Manager, or the participants, as the case may
be.

Purchases and sales of units of Investment Funds (other than for exchanges) shall be made on the
date on which the Trustee receives from the Company, in good order, all information and
documentation necessary to accurately effect such purchases and sales (or in the case of a
purchase, the subsequent date on which the Trustee is able to invest the funds necessary to make
such purchase).

10

 

ARTICLE V

INVESTMENT AUTHORITY

	5.01	 	Nondiscretionary Investment Powers. At the direction of the Company or a
Delegee authorized to direct such action as referred to in Article IV hereof, but limited to
those assets or categories of assets acceptable to the Trustee as referred to in Sections
1.05 and 4.04, the Trustee, or the Trustee’s designee or a broker/dealer as referred to in
Section 4.07 and 4.08, is authorized and empowered:

	 	(a)	 	To invest and reinvest the Trust Fund, together with the income therefrom, in:

	 	(i)	 	Common stock, preferred stock, convertible preferred stock, bonds,
debentures,
convertible debentures and bonds, mortgages, notes, commercial paper and other
evidences of indebtedness;
	 
	 	(ii)	 	Bank investment contracts;
	 
	 	(iii)	 	Shares of regulated investment companies, including those
advised, managed or offered by the Trustee, or an affiliate of the Trustee;
	 
	 	(iv)	 	Common, pooled, group or commingled investment funds, or options
to buy or sell securities or other assets, provided same are within regulated
investment companies or common, pooled, group or commingled investment funds;
	 
	 	(v)	 	Notes evidencing loans to participants in accordance with the terms
of the Plan;
	 
	 	(vi)	 	Company securities;
	 
	 	(vii)	 	Stable value investments, whether or not issued by an affiliate
of the Trustee, including, without limitation, separate account contracts,
guaranteed investment contracts (“GICs”), and synthetic guaranteed investment
contracts (“synthetic GICs”);
	 
	 	(viii)	 	Guaranteed investment and annuity contracts heretofore entered into by the
predecessor trustee and specifically identified on Schedule D attached hereto
(“Existing GICs”) provided, however, that the Company hereby directs the
Trustee to continue to hold such Existing GICs until the Company directs
otherwise; and
	 
	 	(iv)	 	Other marketable securities traded on a national securities exchange which
are
acceptable to the Trustee.

	 	(b)	 	To sell, exchange, convey, transfer, or otherwise dispose of any property held in the
Trust, by
private contract or at public auction. No person dealing with the Trustee shall be
bound to see to the application of the purchase money or other property delivered to
the Trustee or to inquire into the validity, expediency, or propriety of any such
sale or other disposition.

11

 

	 	(c)	 	To cause any securities or other property held as part of the Trust to be
registered in the Trustee’s own name, in the name of one or more of its nominees or to be
held in bearer form, but the books and records of the Trustee shall at all times show that
all such investments are part of the Trust.
	 
	 	(d)	 	To keep that portion of the Trust in cash or cash balances as the Company may, from time to
time, deem to be in the best interest of the Trust.
	 
	 	(e)	 	To make, execute, acknowledge, and deliver any and all documents of transfer or conveyance
and to carry out the powers herein granted.
	 
	 	(f)	 	To consent to or participate in any plans for the reorganization, recapitalization,
consolidation or merger, or sale or lease of assets of any corporation, any security of which
is held in the Trust, and to pay any and all costs and assessments imposed upon the owners of
_ such securities as a condition of their participation therein, and to consent to any
contract, lease, mortgage, purchase or sale of property, by or between such corporation and
any other corporation or person.
	 
	 	(g)	 	To grant options to purchase any property.
	 
	 	(h)	 	To foreclose any obligation by judicial proceedings or otherwise.
	 
	 	(i)	 	To disclose any information concerning the existence, condition, management and
administration of the assets of the Trust as may be required by law or as may be necessary to
prepare any reports required by law.
	 
	 	(j)	 	To lend, through a common, collective, or Investment Fund, any securities held in such fund
to brokers, dealers or other borrowers and to permit the loaned securities to be transferred
into the name and custody and be voted by the borrower or others.
	 
	 	(k)	 	To retain any assets in the Trust for such period of time as the Trustee deems appropriate.
	 
	 	(l)	 	To exercise or dispose of any conversion privilege or subscription right which the Trustee
may have as a holder of any security or otherwise.
	 
	 	(m)	 	To deposit any security in any voting trust or under any pooling agreement or with any
protective or reorganization committee, or with depositories designated by such trust,
agreement or committee, and to delegate such power and authority with relation thereto as the
Trustee may deem proper, and to agree to pay and to pay out of the Trust assets such portion
of the expenses and compensation of such trust, agreement or committee as the Trustee may
deem proper.
	 
	 	(n)	 	To execute and deliver any general or specific proxies or powers of attorney, with or
without power of substitution, to such person or persons as the Trustee may deem proper,
granting to such persons such power and authority with relation to any property or securities
at any time held by the Trust as the Trustee may deem proper.

12

 

	 	(o)	 	To borrow money from any source with or without giving security, and to encumber the Trust
assets by mortgage, deed of trust, pledge or otherwise.
	 
	 	(p)	 	To renew or extend the time of payments of any obligation due or becoming due.
	 
	 	(q)	 	To settle, compromise, or submit to arbitration any claims, debts, or damages due to or arising
from the Trust; to commence or defend suits or legal or administrative proceedings; to represent
the Trust in all suits and legal and administrative hearings; and to pay all reasonable expenses
arising from any such action, from the Trust if not paid by the Company.
	 
	 	(r)	 	To employ legal, accounting, clerical, and other assistance as may be required in carrying
out the provisions of this Trust Agreement and to pay their reasonable expenses and compensation
from the Trust if not paid by the Company.
	 
	 	(s)	 	To do all other acts although not specifically mentioned herein, as the Trustee may deem
necessary to carry out any of the foregoing powers and the purposes of this Trust Agreement.

13

 

ARTICLE VI

DISPOSITION OF INCOME

	6.01	 	Disposition of Income. During the term of the Trust, all income received by the Trust, net of
expenses and taxes, should be accumulated and reinvested.

14

 

ARTICLE VII

ACCOUNTING BY TRUSTEE; RECORDS AND VALUATIONS

	7.01	 	Records. The Trustee shall maintain or cause to be maintained records generated by the
Trustee and accounts of all Trust transactions and assets. The records and accounts of all
Trust transactions and assets shall be available at reasonable times during normal
business hours for inspection or audit by the Company, a Delegee or any person designated
for the purpose by either of them.

	7.02	 	Accountings. The Trustee shall, not less than quarterly, and within ninety (90) days
following the close of each fiscal year of the Plan or the effective date of the removal or
resignation of the Trustee, file with the Company a written accounting setting forth all
transactions since the end of the period — covered by the last previous accounting. The
accounting shall include a listing of the assets of the Trust showing the value of such
assets at the close of the period covered by the accounting. On direction of the Company,
and if previously agreed to by the Trustee in writing, the Trustee shall submit to the
Company interim valuations, reports or other information pertaining to the Trust.

	 	 	The Company may approve the accounting by written approval delivered to the Trustee or by
failure to deliver written objections to the Trustee within sixty (60) days after receipt
of the accounting. Any such approval shall be binding on the Company, Delegees and to the
extent all other persons.

	7.03	 	Valuation. The assets of the Trust shall be valued as of each valuation date as specified
under the Plan at fair market value as determined by the Trustee based upon such sources
of information as it may deem reliable. The reasonable costs incurred in establishing
values of the Trust shall be a charge against the Trust, unless paid by the Company
pursuant to Section 9.01 hereof. 

The Trustee, may, when unable to arrive at a value based upon information from
independent sources, rely upon information from the Company, a Delegee, appraisers, or
other sources, and shall not incur any liability for inaccurate valuation based in good
faith upon such information.

15

 

ARTICLE VIII

RESPONSIBILITY OF TRUSTEE; AGENTS; AND INDEMNIFICATION

	8.01	 	Standard of Care. The Trustee shall discharge its duties hereunder with the care,
skill, prudence and diligence under the circumstances then prevailing that a prudent man
acting in like capacity and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims. As a directed trustee, the Trustee
assumes no responsibility and shall not be liable for any losses sustained by the Trust by
reason of the purchase, retention, sale or exchange of any investment in accordance with
the provisions of this Trust Agreement. Notwithstanding any powers granted to the Trustee
pursuant to this Trust Agreement or by applicable law, the Trustee shall not have any
power that could give this Trust the objective of carrying on a business and dividing the
gains therefrom, within the meaning of section 301.7701-2 of the Procedure and
Administrative Regulations promulgated pursuant to the Internal Revenue Code. The Trustee
shall have, without exclusion, all powers conferred on trustees by applicable law as set
forth in this Agreement, unless expressly provided otherwise herein, or expressly provided
otherwise in the Plan; provided, however, that if an insurance policy is held as an asset
of the Trust, the Trustee shall have no power to name a beneficiary of the policy other
than the Trust, to assign the policy (as distinct from conversion of the policy to a
different form) other than to a successor trustee, or to loan to any person the proceeds
of any borrowing against such policy.

	8.02	 	Delegees; Agents of the Company. The Company shall identify each Delegee on
Schedule A attached hereto, and provide to the Trustee specimen signatures of each member
thereof. The Company shall promptly give written notice to the Trustee of a change in the
identity of a Delegee, or any member thereof, by submitting a revised Schedule A to the
Trustee, and until such revised Schedule A is received by the Trustee, the Trustee shall
be fully protected in assuming that the identity on Schedule A of a Delegee, and the
members thereof, is unchanged. Each person authorized in accordance with the Plan to give
a direction to the Trustee on behalf of a Delegee shall be identified to the Trustee and
such Schedule A shall contain a specimen of the signature of each such authorized person.
The Trustee shall be entitled to rely on Schedule A as evidence of the identity and
authority of the persons appointed until a revised Schedule A setting forth the
appointment of a successor is received by the Trustee from the Company. A revision to
Schedule A hereunder shall not require or constitute formal amendment of this Trust
Agreement. The Company may use the Agent of Company and/or Agents of Delegees, as
identified in Schedule A attached hereto, for the purpose of satisfying its
responsibilities under the terms of the Plan and this Trust Agreement. The direction of
the Trustee by any such agent shall have the same effect as if made directly by the
Company or a Delegee, as appropriate, under this Trust Agreement. In connection herewith,
the Company hereby designates NYLIM, by its authorized individuals, as the party who may
provide the Trustee with directions from the Company and upon which the Trustee will be
fully protected in relying to the extent consistent with this Trust Agreement. The
signature of each authorized NYLIM individual will be provided and certified to the
Trustee by NYLIM.

	8.03	 	Agents of Trustee. The Company acknowledges and authorizes the Trustee to use
and employ agents, including its affiliates, in the performance of its responsibilities
under this Agreement. The expenses and compensation for the services of any such agent as
specified in Schedule D attached

16

 

	 	 	hereto, shall be paid from the Trust unless paid directly by the Company as set
forth in Section 9.01 of this Trust Agreement.

	8.04	 	Protection of Designees. To the extent that any designee of the Trustee is performing a
function of the Trustee under this Trust Agreement, the designee shall have the benefit of
all of the applicable limitations on the scope of the Trustee’s duties and liabilities,
all applicable rights of indemnification granted hereunder to the Trustee and all other
applicable protections of any nature afforded to the Trustee provided the designation is
pursuant to this Trust Agreement.

	8.05	 	Indemnification. The Company hereby indemnifies the Trustee against, and shall hold the
Trustee harmless from, any and all loss, claim, liability, and expense, including
reasonable attorneys fees, imposed upon the Trustee or incurred by the Trustee as a result
of any acts taken, or any failure to act, in accordance with directions from the Company,
a Delegee, Investment Manager or any other person specified in Article IV or V hereof, or
any designee of any such person, or by reason of the Trustee’s good faith execution of its
duties with respect to the Trust, including, but not limited to, its holding of assets of
the Trust as provided for in Section 1.05, the Company’s obligations in the foregoing
regard to be satisfied promptly on request by the Trustee, provided that in the event that
the loss, claim, liability or expense involved is determined by a no longer appealable
final judgment entered in a lawsuit or proceeding to have resulted from the gross
negligence or willful misconduct of the Trustee, the Trustee shall promptly thereafter
return to the Company any amount previously received by the Trustee under this Section
with respect to such loss, claim, liability or expense.

	 	 	If the Trustee undertakes or defends any litigation arising in connection with this Trust,
the Company agrees to indemnify the Trustee against the Trustee’s costs, expenses and
liabilities (including, without limitation, attorneys’ fees and expenses) relating thereto
and to be primarily liable for such payments. If the Company does not pay such costs,
expenses and liabilities in a reasonably timely manner, the Trustee may obtain payment
from the Trust.

	8.06	 	Trustee’s Reliance. The Trustee shall have no duty to inquire whether directions by the
Company, a Delegee, or any other person conform to the Plan, and the Trustee shall be
fully protected in relying on such direction communicated in accordance with procedures
acceptable to the Trustee from any person who the Trustee reasonably believes is a proper
person to give the direction. The Trustee shall have no liability to any participant, any
beneficiary or any other person for payments made, any failure to make payments, or any
discontinuance of payments, on direction of the Company or a Delegee, or for any failure
to make payments in the absence of directions from the Company or any person responsible
for or purporting to be responsible for directing the investment of Trust assets. The
Trustee shall have no obligation to request proper directions from any person. The Trustee
may request instructions from the Company or a Delegee and shall have no duty to act or
liability for failure to act if such instructions are not forthcoming.

	8.07	 	Survival of Provisions. The provisions of this Article VIII shall survive the termination
of this Trust Agreement.

17

 

ARTICLE IX

PAYMENTS TO TRUSTEE AND AGENTS

	9.01	 	Payments to the Trustee. The Company understands and acknowledges that the Trustee’s fees
would be higher if the Trustee did not earn income and/or interest on funds awaiting
investment or reinvestment in accordance with Section 4.05, or pending distribution from
the Trust in accordance with Section 1.05. Except as otherwise provided by applicable law,
regulations promulgated thereunder, and interpretations by the Department of Labor, the
Company hereby authorizes the Trustee to retain, as compensation hereunder, the Trust’s pro
rata portion of any such income or interest and such additional amount as is set forth on
Schedule D attached hereto, as amended from time to time in writing. In addition, the
Trustee shall be entitled to reimbursement for all reasonable expenses incurred by it in
the performance of its duties hereunder, including reasonable fees for legal services
rendered to the Trustee (whether in connection with any litigation or otherwise), and all
other proper charges and disbursement.

	9.02	 	Expenses and Compensation. The Trustee shall not be obligated to transfer Trust assets
until the Trustee is provided assurance by the Company satisfactory to the Trustee that all
fees and expenses reasonably anticipated will be paid.

18

 

ARTICLE X

RESIGNATION AND REMOVAL OF TRUSTEE

	10.01	 	Resignation. The Trustee may resign at any time upon at least sixty (60) days
written notice to the Company, unless the parties agree to a shorter period.

	10.02	 	Removal. The Company may remove the Trustee upon at least sixty (60) days
written notice to the Trustee, unless the parties agree to a shorter period.

	10.03	 	Settlement of Account. Upon resignation or removal of the Trustee, the Trustee
shall have the right , to a settlement of its account, which settlement shall be made by a
settlement agreement between the Trustee and the Company or, if no settlement is reached
within sixty (60) days, by a judicial settlement in an action instituted by the Trustee.
The Company shall bear their costs of any such judicial settlement. The parties shall bear
the fees of their own attorneys.

	10.04	 	Termination of Responsibility and Liability. Upon settlement of the account
and transfer of the Trust to the successor trustee, all rights and privileges under this
Trust Agreement shall vest in the successor trustee and all responsibility and liability
of the Trustee with respect to the Trust and assets thereof shall terminate subject only
to the requirement that the Trustee execute all necessary documents to transfer the Trust
assets to the successor trustee.

	10.05	 	Successor. If the Trustee resigned or is removed, a successor shall be
appointed in accordance with Article XI hereof, by the effective date of resignation
removal under Sections 10.01 or 10.02, as the case may be. If no such appointment has
been made, the Trustee may apply to account of competent jurisdiction for appointment of a
successor or for instructions. All expenses of the Trustee in connection with the
proceeding shall be allowed as administrative expenses of the Trust.

19

 

ARTICLE XI

APPOINTMENT OF A SUCCESSOR

	11.01	 	Appointment of a Successor. Upon resignation or removal of the Trustee, the Company
shall appoint a successor trustee. Upon failure of the Company to appoint, or the failure
of the effectiveness of the appointment by the Company of, a successor trustee by the
effective date of the resignation or removal, the Trustee may apply to any court of
competent jurisdiction for the appointment of a successor.

	 	 	Promptly after receipt by the Trustee of notice of the effectiveness of the appointment of
the successor trustee, the Trustee shall deliver to the successor trustee such records as
may be reasonably requested to enable the successor trustee to properly administer the
Trust and all property of the Trust after deducting therefrom such amounts as the Trustee
deems necessary to provide for expenses, taxes, compensation or other amounts due to or by
the Trustee pursuant to the provisions of this Trust Agreement not paid by the Company
prior to the delivery.

20

 

ARTICLE XII

AMENDMENT OR TERMINATION

	12.01	 	Amendment. This Trust Agreement may be amended by agreement between the Trustee and
the Company, provided that no amendment of this Trust Agreement shall (a) conflict with the
terms of the Plan, or (b) affect the rights, duties, responsibilities, obligations or
liabilities of the Trustee without the Trustee’s written consent. The Company shall amend
this Trust Agreement as requested by the Trustee to reflect changes in law which counsel
for the Trustee advises the Trustee require such changes. Any proposed amendment under
consideration by the Company shall be communicated to the Trustee in writing to permit the
Trustee to review and comment thereon in due course before the Company acts on the proposed
amendment. Final amendments to the Trust Agreement or a certified copy thereof shall be
delivered to the Trustee promptly after adoption by the Company.

	 	 	NYLIM is authorized to act as the Trustee’s agent for the purpose of holding an original
executed copy of the Plan and all amendments of the Plan. The Company, prior to the
execution of this Trust Agreement by both parties, has delivered to NYLIM- the text of
the Plan and all amendments of the Plan as in effect as of the date of this Trust
Agreement. The Company shall deliver to NYLIM promptly after adoption thereof a certified
copy of each other amendment of the Plan.

	12.02	 	Termination. The Trust shall not terminate until the date on which Plan
participants and their beneficiaries are no longer entitled to benefits pursuant to the
terms of the Plan. Upon termination of the Trust, any assets remaining in the Trust shall be
returned to the Company. Upon such termination, the Trust shall be distributed as directed
by the Company or a Delegee.

21

 

ARTICLE XIII

MISCELLANEOUS

	13.01	 	Conflict with Plan. The rights, duties, responsibilities, obligations and liabilities
of the Trustee are as set forth in this Trust Agreement, and no provision of the Plan or
any other document shall be deemed to affect such rights, duties, responsibilities,
obligations and liabilities. If there is a conflict between provisions of the Plan and
this Trust Agreement with respect to any subject involving the Trustee, including but not
limited to the responsibility, authority or powers of the Trustee, the provisions of this
Trust Agreement shall be controlling.

	13.02	 	Authority. Any action to be taken under this Trust Agreement by the Company or other
person which is: (a) a corporation shall be taken by the board of directors of the
corporation or any person or persons duly empowered by the board of directors to take the
action involved, (b) a partnership shall be taken by an authorized general partner of the
partnership, (c) a sole proprietorship by the sole proprietor, and (d) a committee shall
be taken (i) at a meeting at which a quorum is present by the vote or concurrence of a
majority of the members present or (ii) without a meeting by unanimous written consent of
the members.

	13.03	 	Restriction on Alienation. Benefits payable to Plan participants and their beneficiaries
under this Trust Agreement may not be anticipated, assigned (either at law or in equity),
alienated, pledged, encumbered or subjected to attachment, garnishment, levy, execution or
other legal or equitable process. Any attempt to do so shall be void; and the Trustee shall
disregard any attempt. Trust assets shall not in any manner be liable for or subject to
debts, contracts, liabilities, engagement or torts of any Plan participant or
beneficiary, and benefits shall not be considered an asset of any such a person in the
event of the person’s insolvency or bankruptcy.

	13.04	 	Arbitration. The Company acknowledges arbitration has proven to be an effective way to
resolve disputes privately, promptly and economically, and hereby agrees that all
controversies or claims which may arise between the Company and the Trustee and its
affiliates in connection with the Trust, including, but not limited to, those involving
any transactions therein, or the construction, performance, or breach of this or any other
agreement between the Company and the Trustee and its affiliates, whether entered into
prior, on, or subsequent to the date thereof, shall be settled by arbitration held in the
State, City and County of New York and administered by the American Arbitration
Association under its Commercial Arbitration Rules, to the extent such rules are not
inconsistent with the provisions of this article, applying New York internal law. Judgment
on the award rendered by the arbitrators may be entered in any court having jurisdiction
thereof. The arbitration shall be submitted to a panel (the “Panel”) consisting of one
arbitrator appointed by claimant, one arbitrator appointed by respondent and a third
arbitrator (the “neutral arbitrator”) chosen by the party-appointed arbitrators or as
otherwise provided in this section. In the event that there is more than one claimant, all
claimants shall appoint one arbitrator jointly; in the event that there is more than one
respondent, all respondents shall appoint one arbitrator jointly. The Panel shall be
impartial and disinterested. The arbitrators shall be persons who are experienced and
knowledgeable in securities and trust, employee benefits or pension law. The arbitrators
shall be attorneys duly licensed to practice law in one or more states. The Panel shall
not have the authority to grant any remedy, including, without limitation, any equitable
remedy which contravenes or

22

 

	 	 	changes any term of this Trust Agreement. The Panel shall not have the authority to award
punitive, exemplary or treble damages under any circumstances. Each party shall bear the
expense of the arbitrator appointed by it and shall jointly and equally bear with the
other party the expenses of any stenographer requested, and of the neutral arbitrator.
The remaining costs of the arbitration proceedings shall be finally allocated by the
Panel, except that the Panel shall not have the power to award attorney’s fees. The Panel
shall render its decision within thirty (30) days after termination of the hearing, which
decision shall be in writing, stating the reasons therefor and including a brief
description of each element of any damages awarded. The decision of the majority shall be
final and binding.

	13.05	 	Governing Law and Construction. This Trust Agreement and the Trust shall be construed,
administered and governed under the laws of the State of New York. If any provision of
this Trust Agreement is held by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions shall continue to be fully effective to the extent
possible under the circumstances.

	13.06	 	Successors and Assigns. This Trust Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and assigns.

	13.07	 	Gender. As used in this Trust Agreement, the masculine gender shall include the
feminine and the neuter genders and the singular shall include the plural and the plural
the singular as the context requires.

	13.08	 	Headings. Headings and subheadings in this Trust Agreement are for convenience of
reference only and are not to be considered in the construction of the provisions of the
Trust Agreement.

	13.09	 	Counterparts. This Trust Agreement may be executed in several counterparts, each of
which shall be deemed an original, and these counterparts shall constitute one and the
same instrument which may be sufficiently evidenced by any one counterpart.

	13.10	 	Special, Indirect or Consequential Damages. No party to this Trust
Agreement shall be liable to any other party for special, indirect or consequential
damages under any provision of this Trust Agreement or for any special, indirect or
consequential damages arising out of any act or failure to act hereunder.

23

 

IN WITNESS WHEREOF, the Company and the Trustee have executed this Trust
Agreement each by action of a duly authorized person.

	 	 	 	 	 
	 	
LOGAN’S ROADHOUSE, INC.

 	 
	 	By:  	/s/ Amy Bertauski
 	 
	 	 	Name: 	 	 
	 	 	Title:  	SVP of Accounting & Finance 	 
	 
	 	NEW YORK LIFE TRUST COMPANY

NEW YORK, NY

 	 
	 	By: 	/s/ ILLEGIBLE
 	 
	 	 	Authorized Trust Officer 	 
	 	 	New York Life Trust Company 	 
	 

24

 

SCHEDULE A

DELEGEES AND AGENTS

In accordance with Section 8.04 of the Trust Agreement, the following persons are hereby
designated to act singly and/or jointly, on behalf of the Plan:

	 	 	 

	DELEGEES:
	 	 
	 
	 	 
	Name: Amy Bertauski

	Signature: 	   /s/ Amy Bertauski
	 
	 	 
	Name: Bethany Brown

	Signature:  	 /s/ Bethany Brown 
	 
	 	 
	Name: Lucy Daniels

	Signature:  	 /s/
 Lucy Daniels 

AGENT OF COMPANY:

New York Life Investment Management LLC, by its authorized individuals, signatures of such
individuals being on file with New York Life Trust Company.

DELEGEES FOR INVESTMENT OF TRUST ASSETS:

	 	 	 

	Name: Dave Cavallin

	Signature: 	  /s/ Dave Cavallin
	 
	 	 
	Name: Amy Bertauski

	Signature: 	  /s/ Amy Bertauski

AGENT OF DELEGEES FOR INVESTMENT OF TRUST ASSETS:

New York Life Investment Management LLC, by its authorized individuals, signatures of such
individuals being on file with New York Life Trust Company.

INVESTMENT MANAGER(S): N/A

BROKER: N/A

OTHER: N/A

Effective as of: October 2, 2006

25

 

Logan’s Roadhouse, Inc.

Non-Qualified Savings Plan

SCHEDULE B

SELECTION OF INVESTMENTS, INCLUDING INVESTMENT FOR FUNDS

AWAITING INVESTMENT AND DEFAULT INVESTMENT

In accordance with Section 4.04 of the Trust Agreement, the Company hereby directs that the
assets of the Trust shall be invested in the following investments*:

	 	•	 	MainStay Money Market Fund (Class A)
	 
	 	•	 	MainStay Indexed Bond Fund (Class A)
	 
	 	•	 	Barclays Global Investors LifePath Retirement Fund (Class I)
	 
	 	•	 	Barclays Global Investors LifePath 2010 Fund (Class I)
	 
	 	•	 	Barclays Global Investors LifePath 2020 Fund (Class I)
	 
	 	•	 	Barclays Global Investors LifePath 2030 Fund (Class I)
	 
	 	•	 	Barclays Global Investors LifePath 2040 Fund (Class I)
	 
	 	•	 	MainStay Balanced Fund (Class R2)
	 
	 	•	 	MainStay S&P 500 Index Fund (Class A)
	 
	 	•	 	Van Kampen Growth and Income Fund (Class A)
	 
	 	•	 	American Funds — The Growth Fund of America (Class R3)
	 
	 	•	 	Davis New York Venture Fund (Class A)
	 
	 	•	 	Oppenheimer Main Street Small Cap Fund (Class A)
	 
	 	•	 	Victory Special Value Fund (Class A Shares)
	 
	 	•	 	American Funds — EuroPacific Growth Fund (Class R3)

 

			
	*	 	The direction by the Company to direct the assets of the Trust in the above-enumerated funds
shall continue to apply notwithstanding any subsequent changes to names of such funds.

In accordance with Section 4.08 of the Trust Agreement, absent receipt by the Trustee of a
direction from the proper person(s) for the investment or reinvestment of Trust assets, the Trustee
shall cause such assets to be invested in the MainStay Money Market Fund (Class A).

Effective as of September 20, 2007 and authorized by

	 		
	/s/ Dave Cavallin
	 	/s/ Amy Bertauski
	 
	 	 
	Dave Cavallin
	 	Amy Bertauski

NOTE: Pursuant to the terms of the Trust Agreement (designating the individuals
setfirth above to act singly and/or jointly in their capacity as Delegees for Investment of Trust
Assets), only one of the above is required to sign.

 

 

SCHEDULE B

SELECTION OF INVESTMENTS, INCLUDING INVESTMENT FOR FUNDS

AWAITING INVESTMENT AND DEFAULT INVESTMENT

In accordance with Section 4.04 of the Trust Agreement, the Company hereby directs that the assets
of the Trust shall be invested in the following investments*:

	 	•	 	MainStay Money Market Fund (Class A)
	 
	 	•	 	MainStay Indexed Bond Fund (Class A)
	 
	 	•	 	Barclays Global Investors LifePath Retirement Fund (Class I)
	 
	 	•	 	Barclays Global Investors LifePath 2010 Fund (Class I)
	 
	 	•	 	Barclays Global Investors LifePath 2020 Fund (Class I)
	 
	 	•	 	Barclays Global Investors LifePath 2030 Fund (Class I)
	 
	 	•	 	Barclays Global Investors LifePath 2040 Fund (Class I)
	 
	 	•	 	MainStay Balanced Fund (Class R2)
	 
	 	•	 	MainStay S&P 500 Index Fund (Class A)
	 
	 	•	 	Van Kampen Growth and Income Fund (Class A)
	 
	 	•	 	AIM Mid Cap Core Equity Fund (Class A)
	 
	 	•	 	American Funds — The Growth Fund of America (Class R3)
	 
	 	•	 	Fidelity Advisor Dividend Growth Fund (Class T)
	 
	 	•	 	Oppenheimer Main Street Small Cap Fund (Class A)
	 
	 	•	 	American Funds — EuroPacific Growth Fund (Class R3)

 

			
	*	 	The direction by the Company to direct the assets of the Trust in the above-enumerated funds
shall continue to apply notwithstanding any subsequent changes to names of such funds.

In accordance with Section 4.08 of the Trust Agreement, absent receipt by the Trustee of a
direction from the proper person(s) for the investment or reinvestment of Trust assets, the
Trustee shall cause such assets to be invested in the MainStay Money Market Fund (Class A).

Effective as of: October 2, 2006

26

 

SCHEDULE C

EXISTING GICs/GACs

In accordance with Section 5.01(a) of the Trust Agreement, the Trustee is hereby directed to
continue to hold the following guaranteed insurance contracts and/or guaranteed annuity contracts
until such time as the Trustee is directed otherwise by the person(s) authorized to direct such
action under Article IV of the Trust Agreement:

N/A

Effective as of: October 2, 2006

27

 

SCHEDULE D

TRUSTEE’S FEES

The Trustee shall retain as compensation for services rendered to the Plan the Trust’s
proportionate share of any interest earned on aggregate cash balances the Trustee has on deposit
with State Street Bank or any successor custodian with respect to (i) funds awaiting investment
pr (ii) funds pending distribution from the Trust in accordance with the provisions of the Trust
Agreement. Such interest retained by the Trustee shall generally be at money market rates.

With respect to funds awaiting investment: (i) where such funds are received by the
Trustee on a day on which the New York Stock Exchange is open (“Business Day”) and before the
close of the New York Stock Exchange on that day, such interest shall be earned by the Trustee
through the end of the following Business Day; (ii) where such funds are received on a Business
Day but after the close of the New York Stock Exchange on such day, or on a day which is not a
Business Day, such interest shall be earned through the end of the second following Business Day.

When the Trustee processes an authorized distribution request from the Plan, funds will be
transferred to a disbursement account maintained with State Street Bank or any successor custodian
the following business day. The distribution check will be written and mailed on the date such
funds are transferred to such disbursement account. Interest will be earned by the Trustee
beginning on the date such funds are transferred to the distribution account and ending on the date
the check is presented for payment, the timing of which is beyond the control of the Trustee.
Upon request, the Company may receive from the Trustee a report to determine the status of
outstanding distribution checks, and the extent to which such checks tend to remain outstanding.

Trustees Fees: Included in NYLIM’s Fees, plus the interest retained in connection with funds
awaiting investment and funds pending distribution, as described above.

Effective as of: October 2, 2006

28exv10w9

Exhibit 10.9

LRI HOLDINGS, INC. OPTION PLAN

 

 

LRI HOLDINGS, INC. OPTION PLAN

ARTICLE I.

PURPOSE OF THE PLAN

     1.1. The purpose of the Plan is to assist the Company and its Subsidiaries in attracting
and retaining valued employees and directors by offering them a greater stake in the Company’s
success and a closer identity with it, and to reward those employees and directors for their
roles in the Company’s growth and profitability.

ARTICLE II.

DEFINITIONS

     2.1. “Approved Sale” means an Approved Sale as that term is defined in the
Stockholders Agreement.

     2.2. “Award” means an award of an Option under the Plan.

     2.3. “Award Agreement” means the agreement between the Company and a Holder
pursuant to which an Award is granted and which specifies the terms and conditions of that
Award, including the vesting requirements applicable to that Award.

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

     2.5. “BRS” means Bruckmann, Rosser, Sherrill & Co. II, L.P., a Delaware limited
partnership or any successor.

     2.6. “Canyon” means The Canyon Value Realization Fund (Cayman) Ltd., Canyon Value
Realization Fund, LP and Black Canyon Direct Investment Fund, LP.

     2.7. “Cause” means (i) the failure or refusal of the Employee to render services to
the Company in accordance with his obligations under any employment agreement between the Employee
and the Company, including, without limitation, the failure or refusal of the Employee to comply
with the work rules, policies, procedures, and directives as established by the Board and
consistent with this Agreement if such failure or refusal continues for a period of more than
fifteen (15) days after written notice outlining the situation is given by the Company to the
Employee; (ii) gross negligence or willful misconduct with respect to the Company or any of its
subsidiaries, in each case which is detrimental to the Company or its subsidiaries in any material
respect and, if capable of being cured, is not cured to the Board’s reasonable satisfaction within
fifteen (15) days after written notice thereof to the Employee; (iii) commission by the Employee of
an act of fraud or embezzlement or of a felony or a crime involving moral turpitude or the

 

 

commission of any other act or omission involving dishonesty, disloyalty or fraud with
respect to the Company of any or its subsidiaries; (iv) the Employee having willfully violated any
law or regulation relating to the business of the Company or its subsidiaries which results in
material injury to the Company or its subsidiaries; (v) a breach of Employee’s duty of loyalty or
other fiduciary duty to the Company or any of its subsidiaries, (vi) any act undertaken with the
intent of aiding or abetting a competitor, supplier or customer of the Company of any of its
subsidiaries to the detriment of the Company or its subsidiaries; (vii) continued abuse of alcohol
or illegal drugs (whether or not at the workplace), repeated public drunkenness or other repeated
conduct causing the Company or its Subsidiaries substantial public disgrace or disrepute or
substantial economic harm, or (viii) any other material breach of the Award Agreement which is not
cured to the Board’s reasonable satisfaction within thirty (30) days after written notice thereof
to the Employee.

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

     2.9. “Committee” means the Board or a committee of Board members
designated by the Board to administer the Plan under ARTICLE IV. Upon the consummation of a
Qualified Public Offering the Committee shall be composed of two or more directors appointed by
the Board, each of whom shall be a “non-employee director” as defined in Rule 16b-3 under the 1934
Act and an “outside director” as defined in Section 162(m) of the Code and the regulations issued
thereunder.

     2.10. “Common Stock” means the Common Stock of the Company, par value
$.001 per share, or such other class or kind of shares or other securities resulting from the
application of ARTICLE VIII.

     2.11. “Company” means LRI Holdings, Inc., a Delaware corporation,
or any successor corporation.

     2.12. “Credit Agreement” means the Credit Agreement dated as of the
date hereof, by and among the Company, Logan’s Roadhouse, Inc., the various lenders party thereto,
Wachovia Bank, National Associates, as Administrative Agent and Collateral Agent and Wachovia
Capital Markets, LLC, as Sole Bookrunner Manager and as Sole Lead Arranger to the lenders, and the
other lenders that are, or from time to time become, parties thereto, as the same may be amended,
restated, extended, refunded, refinanced, replaced, supplemented, restructured or otherwise
modified from time to time (in whole or in part and without limitation as to terms, conditions or
covenants and without regard to the principal amount thereof), including all related notes,
collateral documents, guarantees, instruments and agreements entered into in connection therewith,
as the same may be amended, modified, supplemented, restated, extended, renewed, refunded,
refinanced, restructured or replaced from time to time.

     2.13. “Director” means a member of either (i) the Company’s Board of
Directors or (ii) the Board of Directors of a Subsidiary of the Company, who is not an Employee of
the Company or any Subsidiary

2

 

     2.14. “Disability” means that a Employee, as determined by the Board in its
good faith judgment, is unable to perform, by reason of physical or mental incapacity, his duties
or obligations as an employee of the Company or any of its Subsidiaries, for a period of 90
consecutive days or a total period of 120 days in any 12-month period.

     2.15. “EBITDA” means Consolidated EBITDA as defined in the Credit Agreement.

     2.16. “Employee” means an officer or other key employee of the Company or a
Subsidiary, including a director who is such an employee.

     2.17. “Equity Multiple Value” of any stock or vested option issued under this Plan
means the amount that would be received by the holder of such Common Stock if all of the equity
securities of the Company were sold to an Independent Third Party at the Equity Value as of such
date in a single transaction or a series of related transactions and the proceeds from such
transaction(s) were allocated to the holders of equity securities of the Company as if the proceeds
were distributed in a liquidation of the Company.

     2.18. “Equity Value” means, as of any date of determination, (A) 6.0 multiplied by
(B) EBITDA for the twelve (12) months ended on the last day of the most recently completed fiscal
quarter for which financial statements of the Company are available.

     2.19. “Exercise Price” means the exercise price per share of an Option.

     2.20. “Fair Value” of any stock or vested option issued under this Plan means the
amount determined by the Board in its good faith judgment as the amount that would be received by
the holder of such stock or vested option (upon exercise of such vested option) if all of the
equity securities of the Company were sold to an Independent Third Party in a single transaction or
a series of related transactions and the proceeds from such transaction(s) were allocated to the
holders of equity securities of the Company as if the proceeds were distributed in a liquidation of
the Company.

     2.21. “Good Reason” shall mean if Employee resigns from employment with the Company
as a result of one or more of the following reasons: (i) the Company reduces the amount of his or
her base salary (other than as a result of a general across-the-board salary reduction applicable
to all executives of the Company) or (ii) the Company changes Employee’s titles or reduces his or
her responsibilities materially inconsistent with the positions he or she then holds; provided
that written notice of Employee’s resignation for Good Reason must be delivered to the Company
within 30 days after the occurrence of any such event in order for Employee’s resignation with
Good Reason to be effective hereunder.

     2.22. “Holder” means an Employee or Director to whom an Award is made, or the
Successor of the Holder, as the context so requires.

     2.23. “Incentive Stock Option” means “incentive stock option” within the meaning of
Section 422(b) of the Code. No Incentive Stock Options may be granted hereunder until

3

 

shareholder approval is obtained pursuant to Section 9.2. Incentive Stock Options may
be granted to Employees only.

     2.24. “Internal Rate of Return” or “IRR” means the internal rate of return realized by
BRS and Canyon on their investment in the Company, from the Net Proceeds received as a result of
any Approved Sale or Qualified Public Offering of the Company, as determined by the Board in good
faith consistent with customary practice.

     2.25. “Investors” means each of Bruckmann, Rosser, Sherrill & Co. II, LP, The Canyon
Value Realization Fund (Cayman) Ltd., Canyon Value Realization Fund, L.P., Black Canyon Direct
Investment Fund, L.P, and Performance Direct Investments II, L.P.

     2.26. “IRR Target” shall mean the applicable IRR targets established by the Committee
in the Award Agreement.

     2.27. “Net Proceeds” received by any person from an Approved Sale or Qualified
Public Offering means the cash and fair market value of any property (valued, in the case of a
Qualified Public Offering, at the initial offering price for such Qualified Public Offering)
actually received from and as a result of such Approved Sale or Qualified Public Offering by
such person, net of all selling or other transaction expenses (including investment banking and
legal fees and expenses).

     2.28. “1934 Act” means the Securities Exchange Act of 1934, as amended.

     2.29. “Non-Qualified Stock Option” means an Option which is not intended to be an
“incentive stock option” within the meaning of Section 422(b) of the Code.

     2.30. “Option” means the right to purchase, at the price and for the term fixed by the
Committee in accordance with the Plan, and subject to such other limitations and restrictions in
the Plan and the applicable Award Agreement, a number of shares of Common Stock determined by the
Committee.

     2.31. “Option Shares” means any shares of Common Stock acquired upon exercise of an
Option granted under the terms of this Plan.

     2.32. “Performance Goals” means goals established by the Committee in its sole
discretion the attainment of which is substantially uncertain at the time such goals are
established. Performance Goals may be described in terms of Company-wide objectives or objectives
that are related to the performance of the individual Participant or the Subsidiary, division,
department or function within the Company or Subsidiary in which the Participant is employed.
Performance Goals may be measured on an absolute or relative basis. Relative performance may be
measured by a group of peer companies or by a financial market index. Performance Goals may be
based upon: Internal Rate of Return attained by investors, including BRS and Canyon; specified
levels of or increases in the Company’s, a division’s or a Subsidiary’s return on capital, equity
or assets; earnings measures/ratios (on a gross, net, pre-tax

4

 

or post-tax basis), including diluted earnings per share, total earnings, operating
earnings, earnings growth, earnings before interest and taxes (EBIT) and earnings before interest,
taxes, depreciation and amortization (EBITDA); net income; operating income; share price
(including but not limited to growth measures and total shareholder return); per period or
cumulative cash flow (including but not limited to operating cash flow and free cash flow) or cash
flow return on investment (which equals net cash flow divided by total capital); individual
objectives; any other financial or other measurement deemed appropriate by the Committee as it
relates to the results of operations or other measurable progress of the Company and Subsidiaries
(or any business unit thereof); and any combination of any of the foregoing criteria. If the
Committee determines that a change in the business, operations, corporate structure or capital
structure of the Company, or the manner in which it conducts its business, or other events or
circumstances render the Performance Goals unsuitable, the Committee may modify such Performance
Goals or the related minimum acceptable level of achievement, in whole or in part, as the
Committee deems appropriate and equitable.

     2.33. “Performance Period” means any period selected by the Committee during which
the performance of the Company, any Subsidiary, or any department thereof, or any individual is
measured for the purpose of determining the extent to which a Performance Goal has been achieved.

     2.34. “Person” means an individual, a partnership, a corporation, an association, a
limited liability company, a joint stock company, a trust, a joint venture, an unincorporated
organization or a governmental entity or any department, agency or political subdivision thereof.

     2.35. “Plan” means the LRI Holdings, Inc. Incentive Plan herein set forth, as
amended from time to time.

     2.36. “Publicly Traded” means that the Company’s Common Stock is listed on an
established stock exchange or exchanges, or is quoted on NASDAQ or a similar quotation
system.

     2.37. “Qualified Public Offering” shall have the meaning ascribed to such term in
the Stockholders Agreement.

     2.38. “Stockholders Agreement” means the Stockholders Agreement by and among LRI
Holdings, Inc. and the other investors named therein dated as of December 6, 2006, as it may
hereafter be amended from time to time.

     2.39. “Subsidiary” means, with respect to any Person, any corporation, partnership,
association or other business entity of which (i) if a corporation, a majority of the total voting
power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a
combination thereof, or (ii) if a partnership limited liability company, association or other
business entity, a majority of the partnership or other similar ownership interest thereof is at
the

5

 

time owned or controlled, directly or indirectly, by any Person or one or more
Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons
shall be deemed to have a majority ownership interest in a limited liability company,
partnership, association or other business entity if such Person or Persons shall be allocated a
majority of limited liability company, partnership, association or other business entity gains or
losses or shall be or control the managing director, general partner or similar controlling
Person of such limited liability company, partnership, association or other business entity.

     2.40. “Successor” means: (i) the legal representative of the estate of a
deceased Holder or (ii) the person or persons who shall acquire the right to exercise an Option by
bequest or inheritance or other transfer or by reason of the death of the Holder or (iii) persons
who shall acquire the right to exercise an Option on behalf of the Holder as the result of a
determination by a court or other governmental agency of the incapacity of the Holder.

ARTICLE III.

ELIGIBILITY

     3.1. Any Employee or Director is eligible to receive an Award.

ARTICLE IV.

ADMINISTRATION AND IMPLEMENTATION OF PLAN

     4.1. The Plan shall be administered by the Committee, which shall have full power to interpret
and administer the Plan and full authority to act in selecting the Employees or Directors to whom
Awards will be granted, in determining whether, and to what extent, Awards may be transferable by
the Holder in accordance with the Stockholders Agreement, in determining the amount of Awards to be
granted to each such Holder, and in determining the terms and conditions of Awards granted under
the Plan.

     4.2. Subject to the other terms of the Plan, the Committee shall, in its discretion as
reflected by the terms of the applicable Award Agreement: (i) determine and designate from time to
time those eligible Employees and Directors to whom Options are to be awarded and the number of
shares subject to each such Award; (ii) determine the Performance Period and Performance Goals, if
any, applicable to an Award; (iii) determine the time or times when and the manner and condition in
which each Award shall vest or become exercisable and the duration of such exercise period, if
applicable; and (iv) determine or impose other conditions to the
receipt of shares subject to the Award under the Plan as it may deem appropriate.

     4.3. The Committee may condition the vesting or exercise of an Option upon: (i) the
Holder’s continued service over a period of time with the Company or its Subsidiaries, (ii) the
achievement by the Holder, BRS and Canyon, the Company or its Subsidiaries of any Performance
Goals set by the Committee, including IRR and Net Proceeds goals, or (iii) any combination of
the above conditions, as specified in the Award Agreement. If the specified

6

 

conditions are not attained, the Holder shall forfeit the portion of the Award with
respect to which those conditions are not attained, and the underlying Common Stock shall be
forfeited to the Company.

     4.4. The Committee shall have the power to adopt regulations for carrying out the Plan and to
make changes to such regulations as it shall, from time to time, deem advisable. Any interpretation
by the Committee of the terms and provisions of the Plan and the administration
thereof, and all actions taken by the Committee, shall be final and binding on Holders.

     4.5. The Committee may amend any outstanding Awards without the consent of the Holder to
the extent it deems appropriate; provided however, that in the case of amendments materially
adverse to the Holder, the Committee must obtain the Holder’s consent to any such amendment.

ARTICLE V.

SHARES OF STOCK SUBJECT TO THE PLAN

     5.1. Subject to adjustment as provided in ARTICLE VIII, 176,471 shares shall be
available for Awards pursuant to ARTICLE VI, any or all of which, in the Committee’s
discretion, may be issued as Incentive Stock Options or Non-qualified Stock Options.

     5.2. Any shares issued by the Company through the assumption or substitution of outstanding
grants from an acquired company shall not reduce the shares available for Awards under the Plan.
Any shares issued hereunder may consist, in whole or in part, of authorized and unissued shares or
treasury shares. If any shares subject to any Award granted hereunder are forfeited or such Award
otherwise terminates, the shares subject to such Award, to the extent of any such forfeiture or
termination, shall again be available for Awards under the Plan.

ARTICLE VI.

OPTIONS

     6.1. Option Price

     Unless otherwise determined by the Committee as reflected in the Award Agreement, the
Exercise Price for any Option shall not be less than 100% (or 110% for Incentive Stock Options
with respect to individuals described in Section 422(b)(6) of the Code (relating to 10% owners))
of the Fair Value of a share of Common Stock on the day the Option is granted.

     6.2. Option Awards

          6.2.1. Options shall be evidenced by Award Agreements. Such agreements shall conform to the
requirements of the Plan and the Stockholders Agreement and may contain such other provisions as
the Committee shall deem advisable.

7

 

          6.2.2. The Committee shall establish the term of each Option, as set forth in the
Award Agreement; provided that in no event shall any Option have a term greater than 10 years from
the date of grant (except that the term of any Incentive Stock Option granted to an individual
described in Section 422(b)(6) of the Code (relating to 10% owners) shall be no more than five
years from the date of grant). Unless earlier expired, forfeited or otherwise terminated, each
Option shall expire in its entirety upon the day after the last day of its term. The Option shall
also expire, be forfeited and terminate at such times and in such circumstances as otherwise
provided hereunder or in the applicable Award Agreement.

     6.3. Term of Options; Vesting and Exercisability

          6.3.1. The Award Agreement shall specify the term of the Option and along with this Plan and
the Stockholders Agreement, the financial, performance, employment, termination of employment or
other conditions under which the Option may be forfeited to the Company. The Committee may, in its
sole discretion, modify (in a manner not adverse to the Holder except as provided in Section 11.2)
or accelerate the vesting and delivery of Option Shares. The Committee shall endeavor,
in good faith, to avoid the application of Section 409A of the Code to
any amended Award by reason of the acceleration of the time of any payment or the modification of
any Option under the Plan.

          6.3.2. Unless specifically provided otherwise in an Award Agreement, upon a termination of a
Holder’s employment for any reason, the Holder shall forfeit any portion of the Option which has
not vested or which is vested but unexercisable. Any portion of the Option that was vested and
exercisable upon such termination shall also expire and be forfeited on such date; provided
that if such termination was other than for Cause, the portion of the Option that is vested and
exercisable as of the date of such termination shall expire and be forfeited at midnight sixty (60)
days from the date of such termination.

          6.3.3. Notwithstanding any provision in the Plan or in any Award Agreement to the contrary,
upon a termination of the Holder by the Company (or its subsidiaries) for Cause or upon Holder’s
breach of any restrictive covenant (including, for example, non-competition and non-solicitation
covenants) set forth in an agreement between the Company the Holder, the Holder shall forfeit any
Option issued under the Plan, regardless of whether such Option is vested or exercisable.

     6.4. Exercise of Options; Payment

          6.4.1. Notice of Exercise.

               6.4.1.1. An Option or portion thereof that, by its terms or as a result
of Board or Committee action, has become exercisable may be exercised, and payment in full of the
Exercise Price of the Option or portion thereof made, by a Holder only by written notice (in the
form prescribed by the Committee) to the Company specifying the number of Shares to be purchased.

8

 

               6.4.1.2. Without limiting the scope of the Committee’s discretion
hereunder, the Committee may impose such other restrictions on the exercise of Incentive Stock
Options (whether or not in the nature of the foregoing restrictions) as it may deem necessary or
appropriate.

               6.4.1.3. If Shares acquired upon the exercise of an Incentive Stock
Option are disposed of in a disqualifying disposition within the meaning of Section 422 of the Code
by a Holder prior to the expiration of either two years from the date of grant of such Option or
one year from the transfer of Shares to the Holder pursuant to the exercise of such Option, or in
any other disqualifying disposition within the meaning of Section 422 of the Code, such Holder
shall notify the Company in writing as soon as practicable thereafter of the date and terms of such
disposition and, Wale Company (or any affiliate thereof) thereupon has a tax withholding
obligation, shall pay to the Company (or such affiliate) an amount equal to any withholding tax the
Company (or such affiliate) is required to pay as a result of the disqualifying disposition.

          6.4.2. Form of Payment.

               6.4.2.1. The aggregate Exercise Price shall be paid in full upon the
exercise of the Option. Payment must be made by one of the following methods: (a) cash or a
certified or bank cashier’s check; (b) if approved by the Committee in its discretion, Shares of
previously owned Common Stock that have been owned by the Holder for at least six months and
having an aggregate Fair Value on the date of exercise equal to the aggregate Exercise Price; (c)
if approved by the Committee in its discretion, by delivery of an assignment satisfactory in form
and substance to the Company of a sufficient amount of the proceeds from the sale of Shares to be
acquired pursuant to such exercise and an instruction to a broker or selling agent to pay that
amount to the Company; or (d) by any combination of such methods of payment or any other method
acceptable to the Committee in its discretion including retention by the Company of that number of
whole Shares the Fair Value of which equals or exceeds by the smallest possible amount, the
Exercise Price, followed by delivery to the Participant of the remaining shares of Stock and cash
in an amount equal to the excess of the Fair Value of the share retained over the Exercise Price.

               6.4.2.2. Except in the case of Options exercised by certified or bank
cashier’s check, the Committee may impose limitations and prohibitions on the exercise of Options
as it deems appropriate, including, without limitation, any limitation or prohibition designed to
avoid accounting consequences which may result from the use of Common Stock as payment upon
exercise of an Option. Any fractional Shares resulting from a Holder’s election that is accepted
by the Company shall be paid in cash.

          6.4.3. Exercise by Successors.

          To the extent permitted by the terms of the relevant Award Agreement, an Option may be
exercised, and payment in full of the aggregate Exercise Price made, by the Successor of the
Holder by written notice (in the form prescribed by the Committee) to the Company specifying the
number of Shares to be purchased. Such notice shall state that the aggregate

9

 

Exercise Price will be paid in full in cash or its equivalent, or may request that payment
of the Exercise Price be made as otherwise provided hereunder, in the discretion of the Company or
the Committee.

ARTICLE VII.

APPROVED SALE, QUALIFIED PUBLIC OFFERING OR OTHER CORPORATE TRANSACTION

     7.1. Notwithstanding any provision in this Plan to the contrary and unless otherwise provided
in the applicable Participant’s Award Agreement, in the event (a) of an Approved Sale, (b) of a
Qualified Public Offering, (c) the Company is consolidated with or otherwise combined with or
acquired by a person or entity, (d) of a merger of the Company with or into another corporation,
(e) of the sale of all or substantially all of the assets of the Company, or (e) of a divisive
reorganization, liquidation or partial liquidation of the Company (each, a “Transaction”), the
Committee may, in its discretion:

          (i) accelerate the exercisability of all or a portion of Options to the extent the
Committee deems appropriate,

          (ii) cancel all outstanding vested Awards in exchange for a cash payment in an amount
equal to the excess, if any, of the Fair Value of the Common Stock underlying the unexercised
portion of the Option as of the date of the Transaction over the exercise price of such
portion,

          (iii) terminate all Options immediately prior to the Transaction, provided that the Company
provide the Holder an opportunity to exercise the Option within a specified period following the
Holder’s receipt of a written notice of such Transaction and of the Company’s intention to
terminate the Option prior to such Transaction, or

          (iv) require the successor corporation, following a Transaction if the Company does not
survive such Transaction, to assume all outstanding Options or to substitute such Options with
awards involving the common stock of such successor corporation on terms and conditions
necessary to preserve the rights of Holders.

     7.2. The judgment of the Committee with respect to any matter referred to in this ARTICLE
VII shall be conclusive and binding upon each Participant without the need for any amendment to
the Plan.

ARTICLE VIII.

ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

     In the event of a reorganization, recapitalization, stock split, spin-off, split-off,
split-up, stock dividend, issuance of stock rights, combination of shares, merger, consolidation or

10

 

any other change in the corporate structure of the Company affecting Common Stock, or any
distribution to stockholders other than a cash dividend, the Committee shall adjust (i) the number
and kind of shares of Common Stock which may thereafter be issued in connection with Awards,
(ii) the number and kind of shares of Common Stock issuable in respect of outstanding Awards,
(iii) the aggregate number and kind of shares of Common Stock available under the Plan, and
(iv) the exercise or grant price relating to any Award. Any such adjustment shall be made in
an equitable manner which reflects the effect of such transaction or event. In the case of any such
transaction or event, the Committee may make any additional adjustments to the items in (i) through
(iv) above which it deems appropriate in the circumstances, or make provision for a cash payment
with respect to any outstanding Award; and it is provided, further, that no adjustment shall be
made under this ARTICLE VIII that would cause the Plan to violate Section 422 of the Code with
respect to Incentive Stock Options or that would adversely affect the status of any Award
that is intended to be a Qualified Performance-Based Award.

ARTICLE IX.

EFFECTIVE DATE, TERMINATION AND AMENDMENT

     9.1. The Plan shall become effective as of March 1, 2007 and shall remain in full force and
effect until the earlier of ten years from the date of its adoption by the Board, or the date it is
terminated by the Board. The Board shall have the power to amend, suspend or terminate the Plan at
any time, provided that any such termination of the Plan shall not affect Awards
outstanding under the Plan at the time of termination.

     9.2. Notwithstanding the foregoing, if the Company’s Common Stock becomes Publicly Traded
and/or if the Committee desires to grant Incentive Stock Options, the Plan must be approved by the
Company’s shareholders and the receipt of Company Common Stock pursuant to any Awards then
outstanding shall be expressly conditioned upon and subject to such shareholder approval.

ARTICLE X.

REPURCHASE OF VESTED AWARDS

          In the event that the Holder shall cease to be employed by the Company or its Subsidiary for
any reason (including, but not limited to, death, temporary or permanent disability, retirement at
age 65 or more under normal retirement policies, resignation or termination by the Company or a
Subsidiary) then the Company shall have the right and option to purchase all of the Holder’s Option
Shares that are vested or otherwise have not been forfeited on the terms set forth in the Award
Agreement.

11

 

ARTICLE XI.

TRANSFERABILITY; STOCKHOLDERS AGREEMENT PROVISIONS

     11.1. Except as provided below, Awards may not be pledged, assigned or transferred for any
reason during the Holder’s lifetime, and any attempt to do so shall be void and the relevant Award
shall be forfeited. The Committee may grant Awards that are transferable by the Holder during his
lifetime, but such Awards shall be transferable only to the extent specifically provided in an
agreement entered into with the Holder and subject to the Stockholders Agreement. The transferee
of the Holder shall, in all cases, be subject to the Plan, the Stockholders Agreement and the
provisions of the Award Agreement between the Company and the Holder.

     11.2. An Employee or Director, or if applicable a Successor, who receives an award shall be
bound by the Stockholders Agreement to the same extent as would a “Management Stockholder”, as
that term is defined in the Stockholders Agreement. Accordingly, any Option or Common Stock
acquired as a result of an Award under the Plan shall be held, transferred, sold or otherwise
disposed of only in accordance with the Stockholders Agreement. Without limiting the generality of
the foregoing, each Holder and any Successor shall comply with the provisions set forth in the
Stockholders Agreement with regard to an Approved Sale, as well as be bound by any transfer
restrictions, restrictive covenants and other obligations delineated in the Stockholders
Agreement. Any rights of a “Management Stockholder” under the Stockholders Agreement will be
available to a Holder or Successor only in respect of any portion of an Award which is then
vested. In addition, and notwithstanding anything to the contrary herein, any Award will,
regardless of whether Common Stock subject to such Award is subject to
restrictions or conditions or whether such shares or stock are vested under the applicable terms of
the Plan or Award Agreement, be subject to the purchase option of the Company set forth in the
Award Agreement upon any termination of the Employee’s employment, or Director’s service, with the
Company or any Subsidiary, as set forth in ARTICLE X. Any amendment to the Stockholders Agreement
or the Award Agreement that effects a provision contained herein shall be deemed to be an amendment
to the Plan. To the extent any such amendment to the Stockholders Agreement affects the terms of an
Award Agreement, the Holder and any
Successor shall be deemed to have consented to that amendment.

ARTICLE XII.

GENERAL PROVISIONS

     12.1. Nothing contained in the Plan, or any Award granted pursuant to the Plan, shall
confer upon any Employee or Director any right to continued employment by, or service to, the
Company or any Subsidiary, nor interfere in any way with the right of the Company or a
Subsidiary to terminate the employment or service of any Employee or Director at any time.

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     12.2. For purposes of this Plan, a transfer of employment between the Company and its
Subsidiaries shall not be deemed a termination of employment.

     12.3. Holders shall be responsible to make appropriate provision for all taxes required to
be withheld in connection with any Award or the transfer of shares of Common Stock pursuant to
this Plan. Such responsibility shall extend to all applicable federal, state, local or foreign
withholding taxes. The Company shall, at the election of the Holder, have the right to retain
the number of shares of Common Stock whose Fair Value equals the amount to be withheld in
satisfaction of the applicable withholding taxes.

     12.4. To the extent that Federal laws (such as the 1934 Act, the Code or the Employee
Retirement Income Security Act of 1974) do not otherwise control, the Plan and all determinations
made and actions taken pursuant hereto shall be governed by the laws of Delaware and construed
accordingly.

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