Document:

Exhibit
10.49

 

ASSIGNMENT
AND ASSUMPTION AGREEMENT

 

This Assignment and
Assumption Agreement (the “Assignment and Assumption”) is made and
entered into as of _______________, 2003 by and between LECG Holding Company,
LLC, a California limited liability company (“Assignor”) and LECG
Corporation, a Delaware corporation (“Assignee”).

Recitals

WHEREAS, Assignor and
Assignee, together with TCEP/LECG Funding Corporation, a Delaware corporation
(“Funding”),
Thoma Cressey Fund VII, L.P., a Delaware limited partnership, Thoma Cressey
Friends Fund VII, L.P., a Delaware limited partnership, David J. Teece and
David Kaplan, are parties to that certain Omnibus Plan of Reorganization dated
as of _______________, 2003 (the “Omnibus Plan”), pursuant to which Assignee
has agreed to assume certain obligations of Assignor as a part of a series of
exchanges, and the merger of Assignor into Funding (the “Merger”), in preparation for
an initial public offering of common stock by Assignee.

WHEREAS, Assignor,
Assignee and Holding are parties to that certain Agreement and Plan of Merger
dated as of _______________, 2003 (the “Agreement of Merger”), pursuant to which
Assignee has agreed to assume certain obligations of Assignor upon the Merger.

Agreement

NOW, THEREFORE, for and
in consideration of the premises and the mutual covenants contained herein, and
for other good and valuable consideration, the receipt, adequacy and legal
sufficiency of which are hereby acknowledged, Assignor and Assignee agree as
follows:

1.             Assignment and Assumption.  Effective as of [__:__] [__.m.] Eastern time
on _______________, 2003  (the “Effective
Time”), Assignor hereby assigns transfers and sets over
(collectively, the “Assignment”) to Assignee all of Assignor’s
right, title, benefit, privileges and interest in and to, and all of Assignor’s
burdens, obligations and liabilities in connection with, each of the documents
(or portions thereof) listed below (the “Assumed Liabilities”), as follows:

(i)            Sections 6.1, 6.7(c), 6.7(d) and
Articles VII and IX of that certain Limited Liability Company Agreement of
Assignor, dated as of September 29, 2000, as subsequently amended;

(ii)           Securityholders’ Agreement, dated as
of September 29, 2000, as subsequently amended;

(iii)          Buy-Sell Agreement, dated as of
September 29, 2000, as subsequently amended;

 

1

 

(iv)          Registration Right’s Agreement, dated
as of September 29, 2000, as subsequently amended;

(v)           2000 Incentive Plan, as subsequently
amended; and

(vi)          Section 4 of the Omnibus Plan and
Section 2.4 of the Agreement of Merger.

                Assignee
hereby accepts the Assignment and assumes and agrees to observe and perform all
of the duties, obligations, terms, provisions and covenants, and to pay and
discharge all of the liabilities of Assignor to be observed, performed, paid or
discharged from and after the Effective Time as a result of the Assignment,
whether or not the agreements containing the Assumed Liabilities are terminated
as a result of the Merger.  Assignee
assumes no liabilities of Assignor (the “Excluded Liabilities”) other than those
specified herein, and Assignor and Assignee agree that all such Excluded
Liabilities shall remain the sole responsibility of Holding (as the corporate
successor of Assignor).

2.             Further Actions.  Each of the parties hereto covenants and
agrees, at its own expense, to execute and deliver, at the request of the other
party hereto, such further instruments of transfer and assignment and to take
such other action as such other party may reasonably request to more
effectively consummate the assignments and assumptions contemplated by this
Assignment and Assumption.

3.             Binding Effect; Choice of Law.  This Assignment and Assumption shall be
binding on and shall inure to the benefit of the successors and assigns of the
parties to this Agreement.  This
Assignment and Assumption shall be governed by, and construed and enforced in
accordance with, the laws of the State of California, without regard to the
conflict of law principals thereof.

IN WITNESS WHEREOF, the parties hereto have caused this
Assignment and Assumption to be signed by their respective officers thereunto
duly authorized as of the date first written above.

LECG Holding Company, LLC,

a California
limited liability company

 

By:  _______________________________

        John C. Burke

Its:   Chief Financial Officer

 

LECG Corporation,

a Delaware
corporation

 

By:  ______________________________

        David
Kaplan

Its:   President

 

2Exhibit
10.50

 

LECG
CORPORATION

 

Deferred Compensation Plan

 

Master
Plan Document

 

LECG
CORPORATION

DEFERRED
COMPENSATION PLAN

 

Purpose

The purpose of this Plan is to provide specified benefits to a select
group of management or highly compensated Employees who contribute materially
to the continued growth, development and future business success of LECG
Corporation, a Delaware corporation, and its subsidiaries, if any, that sponsor
this Plan.  This Plan shall be unfunded
for tax purposes and for purposes of Title I of ERISA.

ARTICLE 1

Definitions

For the purposes of this Plan, unless otherwise clearly apparent from
the context, the following phrases or terms shall have the following indicated
meanings:

1.1                                 “Account Balance” shall mean, with
respect to a Participant, a credit on the records of the Employer equal to the
sum of (i) the Deferral Account balance, and (ii) the Company Contribution
Account balance.  The Account Balance,
and each other specified account balance, shall be a bookkeeping entry only and
shall be utilized solely as a device for the measurement and determination of
the amounts to be paid to a Participant, or his or her designated Beneficiary,
pursuant to this Plan.

1.2                                 “Annual Bonus” shall mean any
compensation, in addition to Base Annual Salary, Expert Fees and Project
Origination Fees, payable to a Participant during a Plan Year under any
Employer’s annual bonus and cash incentive plans, excluding stock options.

1.3                                 “Annual Company Contribution Amount”
shall mean, for any one Plan Year, the amount determined in accordance with
Section 3.5.

1.4                                 “Annual Deferral Amount” shall mean that
portion of a Participant’s Base Annual Salary, Annual Bonus, Expert Fees and
Project Origination Fees that a Participant defers in accordance with
Article 3 for any one Plan Year. 
In the event of a Participant’s Retirement, Disability (if deferrals
cease in accordance with Section 8.1), death or a Termination of Employment
prior to the end of a Plan Year, such year’s Annual Deferral Amount shall be
the actual amount withheld prior to such event.

1.5                                 “Annual Installment Method” shall be an
annual installment payment over the number of years selected by the Participant
in accordance with this Plan, calculated as follows: (i) for the first annual
installment, the vested Account Balance of the Participant shall be calculated
as of the close of business on or around (a) the Participant’s Designated
Distribution date, as determined by the Committee in its sole discretion, (b)  the date on which the Participant Retires
or is deemed to have Retired in accordance with Section 8.2(c), as determined
by the Committee in its sole discretion, or (c) the date on which the
Participant experiences a Termination of Employment or is deemed to have
experienced a Termination of Employment in accordance with Section 8.2(b), as
determined by the Committee in its sole discretion,  and (ii) for remaining annual installments, the vested
Account Balance of the Participant shall be calculated on every applicable
anniversary of (a) the Participant’s Designated Distribution date, (b) the date
on which the Participant Retires 

 

1

 

                                                or is deemed to have Retired in
accordance with Section 8.2(c), or (c) the date on which the Participant
experiences a Termination of Employment or is deemed to have experienced a
Termination of Employment in accordance with Section 8.2(b).  Each annual installment shall be calculated
by multiplying this balance by a fraction, the numerator of which is one and
the denominator of which is the remaining number of annual payments due the
Participant.  By way of example, if the
Participant elects a ten (10) year Annual Installment Method, the first payment
shall be 1/10 of the vested Account Balance, calculated as described in this
definition.  The following year, the
payment shall be 1/9 of the vested Account Balance, calculated as described in
this definition.

1.6                                 “Base Annual Salary” shall mean the
annual cash compensation during any calendar year, excluding bonuses, commissions,
overtime, fringe benefits, stock options, relocation expenses, incentive
payments, non-monetary awards, director fees and other fees, and automobile and
other allowances paid to a Participant for employment services rendered. Base
Annual Salary shall be calculated before reduction for compensation voluntarily
deferred or contributed by the Participant pursuant to all qualified or non–qualified
plans of any Employer and shall be calculated to include amounts not otherwise
included in the Participant’s gross income under Code Sections 125, 129,
402(e)(3), or 402(h) pursuant to plans established by any Employer; provided,
however, that all such amounts will be included in compensation only to the
extent that had there been no such plan, the amount would have been payable in
cash to the Employee.

1.7                                 “Beneficiary” shall mean one or more
persons, trusts, estates or other entities, designated in accordance with
Article 10, that are entitled to receive benefits under this Plan upon the
death of a Participant.

1.8                                 “Beneficiary Designation Form” shall mean
the form established from time to time by the Committee that a Participant
completes, signs and returns to the Committee to designate one or more
Beneficiaries.

1.9                                 “Board” shall mean the board of directors
of the Company.

1.10                            “Change in Control” shall mean the first
to occur of any of the following events:

(a)                                  Any “person” (as that term is used in
Section 13 and 14(d)(2) of the Securities Exchange Act of 1934 (“Exchange
Act”)) becomes the beneficial owner (as that term is used in Section 13(d)
of the Exchange Act), directly or indirectly, of fifty percent (50%) or more of
the Company’s capital stock entitled to vote in the election of directors;

(b)                                 During any period of not more than two
consecutive years, not including any period prior to the adoption of this Plan,
individuals who, at the beginning of such period constitute the board of
directors of the Company, and any new director (other than a director
designated by a person who has entered into an agreement with the Company to
effect a transaction described in clause (a), (c), (d) or (e) of this Section
1.10) whose election by the board of directors or nomination for election by
the Company’s stockholders was approved by a vote of at least three-fourths
(3/4ths) of the directors then still in office, who either were directors at
the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a majority
thereof;

 

2

 

(c)                                  The shareholders of the Company approve
any consolidation or merger of the Company, other than a consolidation or
merger of the Company in which the holders of the common stock of the Company
immediately prior to the consolidation or merger hold more than fifty percent
(50%) of the common stock of the surviving corporation immediately after the
consolidation or merger;

(d)                                 The shareholders of the Company approve
any plan or proposal for the liquidation or dissolution of the Company; or

The shareholders of the
Company approve the sale or transfer of all or substantially all of the assets
of the Company to parties that are not within a “controlled group of
corporations” (as defined in Code Section 1563) in which the Company is a
member.

1.11                           “Claimant” shall have the meaning set
forth in Section 15.1.

1.12                           “Code” shall mean the Internal Revenue
Code of 1986, as it may be amended from time to time.

1.13                           “Committee” shall mean the committee
described in Article 13.

1.14                           “Company” shall mean LECG Corporation, a
Delaware corporation, and any successor to all or substantially all of the
Company’s assets or business.

1.15                           “Company Contribution Account” shall mean
(i) the sum of the Participant’s Annual Company Contribution Amounts, plus (ii)
amounts credited or debited in accordance with all the applicable crediting and
debiting provisions of this Plan that relate to the Participant’s Company
Contribution Account, less (iii) all distributions made to the Participant or
his or her Beneficiary pursuant to this Plan that relate to the Participant’s
Company Contribution Account.

1.16                           “Deduction Limitation” shall mean the
limitation on a benefit that may otherwise be distributable pursuant to the
provisions of this Plan, as set forth in Article 4.

1.17                           “Deferral Account” shall mean (i) the sum
of all of a Participant’s Annual Deferral Amounts, plus (ii) amounts credited
in accordance with all the applicable crediting and debiting provisions of this
Plan that relate to the Participant’s Deferral Account, less (iii) all
distributions made to the Participant or his or her Beneficiary pursuant to
this Plan that relate to his or her Deferral Account.

1.18                           “Designated Distribution” shall mean the
distribution set forth in Section 5.3.

1.19                           “Disability” or “Disabled” shall mean a
determination that a Participant is disabled made by either (i) the carrier of
any individual or group disability insurance policy, sponsored by the
Participant’s Employer, or (ii) the Social Security Administration.  Upon request by the Employer, the
Participant must submit proof of the carrier’s or Social Security
Administration’s determination.

1.20                           “Disability Benefit” shall mean the
benefit set forth in Article 8.

1.21                           “Election Form” shall mean the form
established from time to time by the Committee that a Participant completes,
signs and returns to the Committee to make an election under the Plan.

1.22                           “Employee” shall mean a person who is an
employee of any Employer.

 

3

 

1.23                           “Employer(s)” shall mean the Company
and/or any of its subsidiaries (now in existence or hereafter formed or
acquired) that have been selected by the Board to participate in the Plan and
have adopted the Plan as a sponsor.

1.24                           “ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as it may be amended from time to time.

1.25                           “Expert Fees” shall mean any cash expert
fees paid to a Participant by any Employer during a Plan Year, excluding Annual
Bonus, Project Origination Fees and other additional incentives or awards.

1.26                           “In-Service Distribution” shall mean the
distribution set forth in Section 5.1.

1.27                           “Participant” shall mean any Employee (i)
who is selected to participate in the Plan, (ii) who elects to participate in the
Plan, (iii) who signs a Plan Agreement, an Election Form and a Beneficiary
Designation Form, (iv) whose signed Plan Agreement, Election Form and
Beneficiary Designation Form are accepted by the Committee, (v) who commences
participation in the Plan, and (vi) whose Plan Agreement has not
terminated.  A spouse or former spouse
of a Participant shall not be treated as a Participant in the Plan or have an
account balance under the Plan, even if he or she has an interest in the
Participant’s benefits under the Plan as a result of applicable law or property
settlements resulting from legal separation or divorce.

1.28                           “Plan” shall mean the LECG Corporation
Deferred Compensation Plan, which shall be evidenced by this instrument and by
each Plan Agreement, as they may be amended from time to time.

1.29                           “Plan Agreement” shall mean a written
agreement, as may be amended from time to time, which is entered into by and
between an Employer and a Participant. 
Each Plan Agreement executed by a Participant and the Participant’s
Employer shall provide for the entire benefit to which such Participant is
entitled under the Plan; should there be more than one Plan Agreement, the Plan
Agreement bearing the latest date of acceptance by the Employer shall supersede
all previous Plan Agreements in their entirety and shall govern such
entitlement.  The terms of any Plan
Agreement may be different for any Participant, and any Plan Agreement may
provide additional benefits not set forth in the Plan or limit the benefits
otherwise provided under the Plan; provided, however, that any such additional
benefits or benefit limitations must be agreed to by both the Employer and the
Participant.

1.30                           “Plan Year” shall mean a period beginning
on January 1 of each calendar year and continuing through December 31 of such
calendar year.

1.31                           “Project Origination Fees” shall mean any
cash project origination fees paid to a Participant by any Employer for
services rendered during a Plan Year, excluding Annual Bonus, Expert Fees and
other additional incentives or awards.

1.32                           “Retirement”, “Retire(s)” or “Retired”
shall mean severance from employment from all Employers for any reason other
than a leave of absence, death or Disability on or after the earlier of the
attainment of (a) age sixty-five (65) or (b) age fifty-five (55) with ten (10)
Years of Service.

1.33                           “Retirement Benefit” shall mean the
benefit set forth in Article 6.

1.34                           “Survivor Benefit” shall mean the benefit
set forth in Article 9.

 

4

 

1.35                           “Termination Benefit” shall mean the
benefit set forth in Article 7.

1.36                           “Termination of Employment” shall mean
the severing of employment with all Employers, voluntarily or involuntarily,
for any reason other than Retirement, Disability, death or an authorized leave
of absence.

1.37                           “Trust” shall mean one or more trusts
established by the Company in accordance with Article 16.

1.38                           “Trustee” shall mean the entity named in
the Trust, which is responsible for holding the Trust assets for the benefit of
Participants subject to the terms of the Trust.

1.39                           “Unforeseeable Financial Emergency” shall
mean an unanticipated emergency that is caused by an event beyond the control
of the Participant that would result in severe financial hardship to the
Participant resulting from (i) a sudden and unexpected illness or accident
of the Participant or a dependent of the Participant, (ii) a loss of the
Participant’s property due to casualty, or (iii) such other extraordinary
and unforeseeable circumstances arising as a result of events beyond the
control of the Participant, all as determined in the sole discretion of the
Committee.

1.40                           “Years of Service” shall mean, with
respect to Participants who are Employees, the total number of full years in
which a Participant has been employed by one or more Employers.  For purposes of this definition, a year of
employment shall be a 365 day period (or 366 day period in the case of a leap
year) that, for the first year of employment, commences on the Employee’s date
of hiring and that, for any subsequent year, commences on an anniversary of
that hiring date.  The Committee shall
make a determination as to whether any partial year of employment shall be
counted as a Year of Service.

ARTICLE
2

Selection, Enrollment, Eligibility

2.1                                 Selection by Committee. 
Participation in the Plan shall be limited to a select group of
management and highly compensated Employees of the Employer, as determined by
the Committee in its sole discretion. 
From that group, the Committee shall select, in its sole discretion,
Employees to participate in the Plan.

2.2                                 Enrollment Requirements. 
As a condition to participation, each selected Employee shall complete,
execute and return to the Committee a Plan Agreement, an Election Form and a
Beneficiary Designation Form, all within thirty (30) days after he or she is
selected to participate in the Plan.  In
addition, the Committee shall establish from time to time such other enrollment
requirements as it determines in its sole discretion are necessary.

2.3                                 Eligibility; Commencement of Participation. 
Provided an Employee selected to participate in the Plan has met all
enrollment requirements set forth in this Plan and required by the Committee,
including returning all required documents to the Committee within the
specified time period, that Employee shall commence participation in the Plan
on the first day of the month following the month in which the Employee
completes all enrollment requirements. 
If an Employee fails to meet all such requirements within the period
required, in accordance with Section 2.2, that Employee shall not 

 

5

 

                                                be eligible to participate in the Plan
until the first day of the Plan Year following the delivery to and acceptance
by the Committee of the required documents.

2.4                                 Termination of Participation and/or Deferrals. 
If the Committee determines in good faith that a Participant no longer
qualifies as a member of a select group of management or highly compensated
employees, as membership in such group is determined in accordance with
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall
have the right, in its sole discretion, to (i) terminate any deferral
election the Participant has made for the remainder of the Plan Year in which
the Participant’s membership status changes, (ii) prevent the Participant
from making future deferral elections and/or (iii) immediately distribute
the Participant’s then vested Account Balance as a Termination Benefit and
terminate the Participant’s participation in the Plan.

ARTICLE
3

Deferral Commitments/Company Contribution Amounts/Vesting/Crediting/Taxes

3.1                                 Minimum Deferrals.

(a)                                  Base Annual Salary, Annual Bonus, Expert Fees and
Project Origination Fees.  For each
Plan Year, a Participant may elect to defer, as his or her Annual Deferral
Amount, Base Annual Salary, Annual Bonus, Expert Fees and/or Project
Origination Fees in the following minimum amounts for each deferral elected:

	
   

  	
  Deferral

  	
  Minimum
  Amount

  	
   

  
	
   

  	
  Base
  Annual Salary,

  Annual Bonus, Expert

  Fees and/or Project

  Origination Fees

  	
  $5,000
  aggregate

  	
   

  

If an election is made
for less than the stated minimum amounts, or if no election is made, the amount
deferred shall be zero.

(b)                                 Short Plan Year. 
Notwithstanding the foregoing, if a Participant first becomes a
Participant after the first day of a Plan Year, the minimum Annual Deferral
Amount shall be an amount equal to the minimum set forth above, multiplied by a
fraction, the numerator of which is the number of complete months remaining in the
Plan Year and the denominator of which is 12.

3.2                                 Maximum Deferral.

(a)                                  Base Annual Salary, Annual Bonus, Expert Fees and
Project Origination Fees.  For each
Plan Year, a Participant may elect to defer, as his or her Annual Deferral
Amount, Base Annual Salary, Annual Bonus, Expert Fees and/or Project
Origination Fees up to an amount which does not exceed fifteen percent (15%) of
such Participant’s total compensation for the Plan Year.  For purposes of this Section 3.2(a), a
Participant’s total 

 

6

 

                                                compensation shall be equal to the sum of
such Participant’s Base Annual Salary, Annual Bonus, Expert Fees, and/or
Project Origination Fees.

(b)                                 Short Plan Year. 
Notwithstanding the foregoing, if a Participant first becomes a
Participant after the first day of a Plan Year, the maximum Annual Deferral
Amount (i) with respect to Base Annual Salary shall be limited to the amount of
compensation not yet earned by the Participant as of the date the Participant
submits a Plan Agreement and Election Form to the Committee for acceptance, and
(ii) with respect to Annual Bonus, Expert Fees and Project Origination Fees
shall be limited to those amounts deemed eligible for deferral, in the sole
discretion of the Committee.

3.3                                 Election to Defer; Effect of Election Form.

(a)                                  First Plan Year.  In
connection with a Participant’s commence­ment of participa­tion in the Plan,
the Participant shall make an irrevocable deferral election for the Plan Year
in which the Participant commences participation in the Plan, along with such
other elections as the Committee deems necessary or desirable under the
Plan.  For these elections to be valid,
the Election Form must be completed and signed by the Participant, timely
delivered to the Committee (in accordance with Section 2.2 above) and accepted
by the Committee.

(b)                                 Subsequent Plan Years. 
For each succeeding Plan Year, an irrevocable deferral election for that
Plan Year, and such other elections as the Committee deems necessary or
desirable under the Plan, shall be made by timely delivering a new Election
Form to the Committee, in accordance with its rules and procedures, before the
end of the Plan Year preceding the Plan Year for which the election is made.  If no such Election Form is timely delivered
for a Plan Year, the Annual Deferral Amount shall be zero for that Plan Year.

3.4                                 Withholding and Crediting of Annual Deferral Amounts. 
For each Plan Year, the Base Annual Salary portion of the Annual
Deferral Amount shall be withheld from each regularly scheduled Base Annual
Salary payroll in equal amounts, as adjusted from time to time for increases
and decreases in Base Annual Salary. 
The Annual Bonus, Expert Fees and/or Project Origination Fees portion of
the Annual Deferral Amount shall be withheld at the time the Annual Bonus,
Expert Fees and/or Project Origination Fees are or otherwise would be paid to
the Participant, whether or not this occurs during the Plan Year itself.  Annual Deferral Amounts shall be credited to
a Participant’s Deferral Account at the time such amounts would otherwise have
been paid to the Participant. 
Notwithstanding the foregoing, the Committee shall suspend a
Participant’s deferrals of Expert Fees and/or Project Origination Fees during
any period in which the Participant has an outstanding draw balance, as
determined by the Committee in its sole discretion.  Furthermore, the Committee shall reinstate the Participant’s
deferrals, in accordance with the Participant’s deferral election, once the
outstanding draw balance is reduced to zero, as determined by the Committee in
its sole discretion.

 

7

 

3.5                                 Annual Company Contribution Amount.

(a)                                  For each Plan Year, an Employer may be
required to credit amounts to a Participant’s Company Contribution Account in
accordance with employment or other agreements entered into between the
Participant and the Employer.  Such
amounts shall be credited on the date or dates prescribed by such agreements.

(b)                                 For each Plan Year, an Employer, in its
sole discretion, may, but is not required to, credit any amount it desires to
any Participant’s Company Contribution Account under this Plan, which amount
shall be for that Participant the Annual Company Contribution Amount for that
Plan Year.  The amount so credited to a
Participant may be smaller or larger than the amount credited to any other
Participant, and the amount credited to any Participant for a Plan Year may be
zero, even though one or more other Participants receive an Annual Company
Contribution Amount for that Plan Year. 
The Annual Company Contribution Amount described in this Section 3.5(b),
if any, shall be credited as of the last day of the Plan Year.  If a Participant is not employed by an
Employer as of the last day of a Plan Year other than by reason of his or her
Retirement or death while employed, the Annual Company Contribution Amount for
that Plan Year shall be zero.

3.6                                 Vesting.

(a)                                  A Participant shall at all times be 100%
vested in his or her Deferral Account.

(b)                                 A Participant shall be vested in his or
her Company Contribution Account in accordance with the vesting schedule(s) set
forth in his or her Plan Agreement, employment agreement or any other agreement
entered into between the Participant and his or her Employer.  If not addressed in such agreements, a
Participant shall vest in his or her Company Contribution Account in accordance
with the schedule declared by the Committee in its sole discretion.

(c)                                  Notwithstanding anything to the contrary
contained in this Section 3.6, in the event of a Change in Control, or upon a
Participant’s Retirement, death while employed by an Employer, or Disability, a
Participant’s Company Contribution Account shall immediately become 100% vested
(if it is not already vested in accordance with the above vesting schedules).

(d)                                 Notwithstanding subsection 3.6(c) above,
the vesting schedule for a Participant’s Company Contribution Account shall not
be accelerated to the extent that the Committee, in its sole discretion,
determines that such acceleration would cause the deduction limitations of
Section 280G of the Code to become effective.

(e)                                  Section 3.6(d) shall not prevent the
acceleration of the vesting schedule applicable to a Participant’s Company
Contribution Account if such Participant is entitled to a “gross-up” payment,
to eliminate the effect of the Code section 4999 excise tax, pursuant to his or
her employment agreement or other agreement entered into between such
Participant and the Employer.

(f)                                    Regardless of whether or not a
Participant’s Company Contribution Account has become fully vested, that
account will be forfeited if the Participant’s relationship with an 

 

8

 

                                                Employer is terminated “for cause”.  “For cause” means (i) conduct by the
Participant intended to or significantly likely to injure an Employer’s
business or reputation (if such conduct continues for a period of at least ten
days following written notice to the Participant specifying the conduct at
issue), (ii) significant failure by the Participant to perform his duties for
an Employer (if this failure continues for a period of at least ten days after
written notice to the Participant specifying the failure at issue), (iii)
embezzlement by the Participant, or (iv) material breach by the Participant of
any of the terms and conditions of the Participant’s relationship with an
Employer.

3.7                                 Crediting/Debiting of Account Balances. 
In accordance with, and subject to, the rules and procedures that are
established from time to time by the Committee, in its sole discretion, amounts
shall be credited or debited to a Participant’s Account Balance in accordance
with the following rules:

(a)                                  Measurement Funds.  The
Participant may elect one or more of the measurement funds selected by the
Committee, in its sole discretion, which are based on certain mutual funds (the
“Measurement Funds”), for the purpose of crediting or debiting additional
amounts to his or her Account Balance. 
As necessary, the Committee may, in its sole discretion, discontinue,
substitute or add a Measurement Fund. 
Each such action will take effect as of the first day of the first
calendar quarter that begins at least thirty (30) days after the day on which
the Committee gives Participants advance written notice of such change.

(b)                                 Election of Measurement Funds. 
A Participant, in connection with his or her initial deferral election
in accordance with Section 3.3(a) above, shall elect, on the Election Form, one
or more Measurement Fund(s) (as described in Section 3.7(a) above) to be used
to determine the amounts to be credited or debited to his or her Account
Balance.  If a Participant does not
elect any of the Measurement Funds as described in the previous sentence, the
Participant’s Account Balance shall automatically be allocated into the
lowest-risk Measurement Fund, as determined by the Committee, in its sole
discretion.  The Participant may (but is
not required to) elect, by submitting an Election Form to the Committee that is
accepted by the Committee, to add or delete one or more Measurement Fund(s) to
be used to determine the amounts to be credited or debited to his or her
Account Balance, or to change the portion of his or her Account Balance
allocated to each previously or newly elected Measurement Fund.  If an election is made in accordance with
the previous sentence, it shall apply as of the first business day deemed
reasonably practicable by the Committee, in its sole discretion, and shall
continue thereafter for each subsequent day in which the Participant
participates in the Plan, unless changed in accordance with the previous
sentence.

(c)                                  Proportionate Allocation. 
In making any election described in Section 3.7(b) above, the
Participant shall specify on the Election Form, in increments of one percent
(1%), the percentage of his or her Account Balance to be allocated to a
Measurement Fund (as if the Participant was making an investment in that
Measurement Fund with that portion of his or her Account Balance).

(d)                                 Crediting or Debiting Method. 
The performance of each elected Measurement Fund (either positive or
negative) will be determined by the Committee, in its reasonable discretion,
based on the performance of the Measurement Funds themselves.  A 

 

9

 

                                                Participant’s Account Balance shall be
credited or debited on a daily basis based on the performance of each
Measurement Fund selected by the Participant, such performance being
determined by the Committee in its sole discretion.

(e)                                  No Actual Investment. 
Notwithstanding any other provision of this Plan that may be interpreted
to the contrary, the Measurement Funds are to be used for measurement purposes
only, and a Participant’s election of any such Measurement Fund, the allocation
to his or her Account Balance thereto, the calculation of additional amounts
and the crediting or debiting of such amounts to a Participant’s Account
Balance shall  not be considered or construed in any manner as an
actual investment of his or her Account Balance in any such Measurement
Fund.  In the event that the Company or
the Trustee (as that term is defined in the Trust), in its own discretion,
decides to invest funds in any or all of the investments on which the
Measurement Funds are based, no Participant shall have any rights in or to such
investments themselves.  Without
limiting the foregoing, a Participant’s Account Balance shall at all times be a
bookkeeping entry only and shall not represent any investment made on his or her
behalf by the Company or the Trust; the Participant shall at all times remain
an unsecured creditor of the Company.

3.8                                 FICA and Other Taxes.

(a)                                  Annual Deferral Amounts. 
For each Plan Year in which an Annual Deferral Amount is being withheld
from a Participant, the Participant’s Employer(s) shall withhold from that
portion of the Participant’s Base Annual Salary, Annual Bonus, Expert Fees
and/or Project Origination Fees that are not being deferred, in a manner
determined by the Employer(s), the Participant’s share of FICA and other
employment taxes on such Annual Deferral Amount.  If necessary, the Committee may reduce the Annual Deferral Amount
in order to comply with this Section 3.8.

(b)                                 Company Contribution Account. 
When a participant becomes vested in a portion of his or her Company
Contribution Account, the Participant’s Employer(s) shall withhold from the
Participant’s Base Annual Salary, Annual Bonus, Expert Fees and/or Project
Origination Fees that are not deferred, in a manner determined by the
Employer(s), the Participant’s share of FICA and other employment taxes.  If necessary, the Committee may reduce the
vested portion of the Participant’s Company Contribution Account, as
applicable, in order to comply with this Section 3.8.

(c)                                  Distributions.  The
Participant’s Employer(s), or the trustee of the Trust, shall withhold from any
payments made to a Participant under this Plan all federal, state and local
income, employment and other taxes required to be withheld by the Employer(s),
or the trustee of the Trust, in connection with such payments, in amounts and
in a manner to be determined in the sole discretion of the Employer(s) and the
trustee of the Trust.

ARTICLE
4

Deduction Limitation

4.1                                 Deduction Limitation on Benefit Payments. 
If an Employer determines in good faith prior to a Change in Control
that there is a reasonable likelihood that any compensation paid to a
Participant for a taxable year of the 

 

10

 

                                                Employer would not be deductible by the
Employer solely by reason of the limitation under Code Section 162(m), then to
the extent deemed necessary by the Employer to ensure that the entire amount of
any distribution to the Participant pursuant to this Plan prior to the Change
in Control is deductible, the Employer may defer all or any portion of a
distribution under this Plan.  Any
amounts deferred pursuant to this limitation shall continue to be
credited/debited with additional amounts in accordance with Section 3.7 above,
even if such amount is being paid out in installments.  The amounts so deferred and amounts credited
thereon shall be distributed to the Participant or his or her Beneficiary (in
the event of the Participant’s death) at the earliest possible date, as
determined by the Employer in good faith, on which the deductibility of
compensation paid or payable to the Participant for the taxable year of the
Employer during which the distribution is made will not be limited by Section
162(m), or if earlier, the effective date of a Change in Control.  Notwithstanding anything to the contrary in
this Plan, the Deduction Limitation shall not apply to any distributions made
after a Change in Control.

ARTICLE
5

 In-Service Distribution;
Unforeseeable Financial Emergencies;

Withdrawal Election

5.1                                 In-Service Distribution. 
In connection with each election to defer an Annual Deferral Amount, a
Participant may irrevocably elect to receive an In-Service Distribution from
the Plan with respect to all or a portion of (i) the Annual Deferral Amount,
and (ii) the Annual Company Contribution Amount.  The In-Service Distribution shall be a lump sum payment in an
amount that is equal to the portion of the Annual Deferral Amount and the
vested portion of the Annual Company Contribution Amount that the Participant
elected to have distributed as an In-Service Distribution, plus amounts
credited or debited in the manner provided in Section 3.7 above on that
amount, calculated as of the close of business on or around the date on which
the In-Service Distribution becomes payable, as determined by the Committee in
its sole discretion.  Subject to the
other terms and conditions of this Plan, each In-Service Distribution elected
shall be paid out during a sixty (60) day period commencing immediately after
the first day of any Plan Year designated by the Participant.  The Plan Year designated by the Participant
must be at least three Plan Years after the end of the Plan Year in which the
Annual Deferral Amount is actually deferred, or the vested portion of the Annual
Company Contribution Amount is actually contributed.  By way of example, if an In-Service Distribution is elected for
Annual Deferral Amounts that are deferred in the Plan Year commencing
January 1, 2004, the In-Service Distribution would become payable during a
sixty (60) day period commencing January 1, 2008.  Notwithstanding the language set forth
above, the Committee shall, in its sole discretion, adjust the amount
distributable as an In-Service Distribution if any portion of the Annual
Company Contribution Amount is unvested on the In-Service Distribution Date.

5.2                                 Other Benefits Take Precedence Over In-Service
Distributions.  Should an event occur that triggers a
benefit under Articles 6, 7, 8 or 9, any Annual Deferral Amount, plus amounts
credited or debited thereon, that is subject to an In-Service Distribution
election under Section 5.1 shall 

 

11

 

                                                not be paid in accordance with Section
5.1 but shall be paid in accordance with the other applicable Article.

5.3                                 Designated Distribution. 
A Participant may irrevocably elect, on an Election Form, to receive a
Designated Distribution upon the attainment of age sixty-five (65), if the
Participant’s 65th birthday occurs prior to his or her separation
from service with the Company; provided, however, any such Election Form must
be submitted to and accepted by the Committee in its sole discretion at least
one (1) year prior to such Participant’s 65th birthday.  The Designated Distribution shall be equal
to the Participant’s vested Account Balance, calculated as of the close of
business on or around the Participant’s 65th birthday, as determined
by the Committee in its sole discretion, and shall be paid in a lump sum or
pursuant to an Annual Installment Method of up to fifteen (15) years, as
elected by the Participant in advance. 
The Participant may change his or her election to an allowable
alternative form of payment by submitting a new Election Form to the Committee,
provided that any such Election Form is submitted to and accepted by the
Committee in its sole discretion at least one (1) year prior to the
Participant’s 65th birthday. 
The Election Form most recently accepted by the Committee shall govern
the payout of a Participant’s Designated Distribution.  If a Participant does not make any election
with respect to the payment of the Designated Distribution, then such
distribution shall be payable in a lump sum. 
The lump sum payment shall be made, or installment payments shall
commence, no later than sixty (60) days after the Participant’s 65th
birthday.  Remaining installments, if
any, shall be paid no later than sixty (60) days after each anniversary of the
Participant’s 65th birthday.

5.4                                 Other Benefits Take Precedence Over Designated
Distributions.  If a Participant elects to receive a
Designated Distribution but an event occurs that triggers a benefit under
Articles 6, 7, 8 or 9 prior to such Participant’s 65th birthday, the
Participant’s vested Account Balance shall not be paid in accordance with
Section 5.3 but shall be paid in accordance with the other applicable Article.

5.5                                 Withdrawal Payout/Suspensions for Unforeseeable
Financial Emergencies.  If the Participant
experiences an Unforeseeable Financial Emergency, the Participant may petition
the Committee (i) to suspend any deferrals required to be made by such
Participant or (ii) to suspend any deferrals required to be made by such
Participant and receive a partial or full payout from the Plan.  The payout shall not exceed the lesser of
the Participant’s vested Account Balance, calculated as if such Participant
were receiving a Termination Benefit, or the amount reasonably needed to
satisfy the Unforeseeable Financial Emergency. 
A Participant may not receive a payout from the Plan to the extent that
the Unforeseeable Financial Emergency is or may be relieved (i) through
reimbursement or compensation by insurance or otherwise, (ii) by liquidation of
the Participant’s assets, to the extent the liquidation of such assets would
not itself cause severe financial hardship or (iii) by suspension of deferrals
under this Plan.

If the Committee, in its
sole discretion, approves a Participant’s petition for suspension, the
Participant’s deferrals under this Plan shall be suspended as of the date of
such approval.  If the Committee, in its
sole discretion, approves a Participant’s petition for suspension and payout,
the Participant’s deferrals under this Plan shall be suspended as of the date
of such approval and the 

 

12

 

Participant shall receive
a payout from the Plan within sixty (60) days of the date of such approval.

5.6                                 Withdrawal Election.  A
Participant may elect, at any time, to withdraw all or a portion of his or her
vested Account Balance.  For purposes of
this Section 5.6, the value of a Participant’s vested Account Balance shall be
calculated as of the close of business on or around the date on which receipt
of the Participant’s election is acknowledged by the Committee, as determined
by the Committee in its sole discretion, less a withdrawal penalty equal to 10%
of the amount withdrawn (the net amount shall be referred to as the “Withdrawal
Amount”).  This election can be made at
any time, before or after Retirement, Termination of Employment or Disability,
and whether or not the Participant is in the process of being paid pursuant to
an installment payment schedule.  The
Participant shall make this election by giving the Committee advance written
notice of the election in a form determined from time to time by the
Committee.  The Participant shall be
paid the Withdrawal Amount within sixty (60) days of his or her
election.  Once the Withdrawal Amount is
paid, the Participant’s participation in the Plan shall be suspended for the
remainder of the Plan Year in which the withdrawal is elected and for one (1)
full Plan Year thereafter.

ARTICLE
6

Retirement Benefit

6.1                                 Retirement Benefit.  A
Participant who Retires shall receive, as a Retirement Benefit, his or her
vested Account Balance, calculated as of the close of business on or around the
date on which the Participant Retires, as determined by the Committee in its
sole discretion.

6.2                                 Payment of Retirement Benefit. 
A Participant, in connection with his or her commencement of
participation in the Plan, shall elect on an Election Form to receive the Retirement
Benefit in a lump sum or pursuant to an Annual Installment Method of up to 15
years.  The Participant may change his
or her election to an allowable alternative payout period by submitting a new
Election Form to the Committee, provided that any such Election Form is
submitted to and accepted by the Committee in its sole discretion at least
thirteen (13) months prior to the Participant’s Retirement.  The Election Form most recently accepted by
the Committee shall govern the payout of the Retire­ment Benefit; provided,
however, a Participant’s Retirement Benefit shall be payable in a lump sum
regardless of any election such Participant may have made if (i) a Participant
Retires following a Change in Control, or (ii) a Participant’s vested Account Balance
at the time of his or her Retirement is $25,000 or less.  If a Participant does not make any election
with respect to the payment of the Retirement Benefit, then such benefit shall
be payable in a lump sum.  The lump sum
payment shall be made, or installment payments shall commence, no later than
sixty (60) days after the date on which the Participant Retires.  Remaining installments, if any, shall be
paid no later than sixty (60) days after each anniversary of the date on which
the Participant Retires.

 

13

 

ARTICLE
7

Termination Benefit

7.1                                 Termination Benefit.  A
Participant who experiences a Termination of Employment shall receive a Termina­tion
Benefit, which shall be equal to the Participant’s vested Account Balance,
calculated as of the close of business on or around the date on which the
Participant experiences a Termination of Employment, as determined by the
Committee in its sole discretion.

7.2                                 Payment of Termination Benefit. 
The Termination Benefit shall be paid to the Participant in a lump sum
payment; provided, however, the Committee may, in its sole discretion, pay a
Participant’s Termination Benefit pursuant to an Annual Installment Method of
up to 5 years.  Notwithstanding the
foregoing, if a Participant experiences a Termination of Employment following a
Change in Control, then such Participant’s Termination Benefit shall be payable
in a lump sum and the Committee shall have no discretion to pay installments in
lieu of a lump sum.  The lump sum
payment shall be made, or installments shall commence, no later than sixty (60)
days after the date on which the Participant experiences the Termination of
Employment.  Remaining installments, if
any, shall be paid no later than sixty (60) days after each anniversary of the
date on which the Participant experiences a Termination of Employment.

ARTICLE
8

Disability Waiver and Benefit

8.1                                 Disability Waiver.  

(a)                                  Waiver of Deferral.  A
Participant who is deter­mined to be suffering from a Disability shall be
excused from fulfilling that portion of the Annual Deferral Amount commitment
that would otherwise have been withheld from a Participant’s Base Annual
Salary, Annual Bonus, Expert Fees and/or Project Origination Fees for the Plan
Year during which the Participant first suffers a Disability.  During the period of Disability, the
Participant shall not be allowed to make any additional deferral elections, but
will continue to be considered a Participant for all other purposes of this
Plan.

(b)                                 Deferral Following Disability. 
If a Participant returns to employment as an Employee with an Employer
after a Disability ceases, the Participant may elect to defer an Annual
Deferral Amount for the Plan Year following his or her return to employment or
service and for every Plan Year thereafter while a Participant in the Plan;
provided such deferral elections are otherwise allowed and an Election Form is
delivered to and accepted by the Committee for each such election in accordance
with Section 3.3 above.

8.2                                 Continued Eligibility; Disability Benefit.

(a)                                  Continued Eligibility. 
A Participant suffering a Disability shall, for benefit purposes under
this Plan, continue to be considered to be employed, and shall be eligible for
the benefits provided for in Articles 5,  6, 7, 8 or 9 in accordance with
the provisions of those Articles. 
Notwithstanding the above, the Committee shall have the right to, in its
sole 

 

14

 

                                                and absolute discretion and for purposes
of this Plan only, deem the Participant’s employment to have terminated at any
time after such Participant is determined to be suffering a Disability.

(b)                                 Deemed Termination of
Employment.  If, in the Committee’s discretion, the
Disabled Participant’s employment has terminated, and such Participant is not
otherwise eligible to Retire, the Participant shall be deemed to have
experienced a Termination of Employment for purposes of this Plan and will
receive a Disability Benefit.  The
Disability Benefit shall be equal to his or her vested Account Balance,
calculated as of the close of business on or around the date on which the
Participant is deemed to have experienced a Termination of Employment, as
determined by the Committee in its sole discretion.  The Disability Benefit shall be paid to the Participant in the
same form in which such Participant’s Termination Benefit would otherwise have
been paid.  The lump sum payment shall
be made, or installments shall commence, no later than sixty (60) days after
the date on which the Committee deems the Disabled Participant to have
experienced a Termination of Employment. 
Remaining installments, if any, shall be paid no later than sixty (60)
days after each anniversary of the date on which the Committee deems the
Disabled participant to have experienced a Termination of Employment.

(c)                                  Deemed Retirement. 
If, in the Committee’s discretion, the Disabled Participant’s employment
has terminated, and such Participant is otherwise eligible to Retire, the
Participant shall be deemed to have Retired and will receive a Disability
Benefit.  The Disability Benefit shall
be equal to his or her vested Account Balance, calculated as of the close of
business on or around the date on which the Participant is deemed to have
Retired, as determined by the Committee in its sole discretion.  The Participant shall receive his or her
Disability Benefit in the same form in which such Participant elected to
receive his or her Retirement Benefit; provided, however, if the Participant’s
vested Account Balance at the time of the Committee’s determination is $25,000
or less, payment of the Disability Benefit will be made in a lump sum.  The lump sum payment shall be made, or
installment payments shall commence, no later than sixty (60) days after
the date on which the Disabled Participant is deemed to have Retired.  Remaining installments, if any, shall be
paid no later than sixty (60) days after each anniversary of the date on which
the Disabled Participant is deemed to have Retired.

ARTICLE 9

Survivor Benefit

9.1                                 Survivor Benefit.  The
Participant’s Beneficiary(ies) shall receive a Survivor Benefit upon the
Participant’s death which will be equal to the Participant’s vested Account
Balance, calculated as of the close of business on or around the date of the
Participant’s death, as selected by the Committee in its sole discretion, if
the Participant dies prior to (i) his or her Retirement, Termination of
Employment or Disability, or (ii) the complete distribution of his or her
Retirement Benefit, Termination Benefit, or Disability Benefit, calculated as
of the close of business on or around the date of the Participant’s death, as
selected by the Committee in its sole discretion.

 

15

 

9.2                                 Payment of Survivor Benefit.  The Survivor Benefit shall be paid to the Participant’s
Beneficiary(ies) in a lump sum payment no later than sixty (60) days after the
date on which the Committee is provided with proof that is satisfactory to the Committee
of the Participant’s death.

ARTICLE
10

Beneficiary Designation

10.1                           Beneficiary.  Each
Participant shall have the right, at any time, to designate his or her
Beneficiary(ies) (both primary as well as contingent) to receive any benefits
payable under the Plan to a beneficiary upon the death of a Participant.  The Beneficiary designated under this Plan
may be the same as or different from the Beneficiary designation under any
other plan of an Employer in which the Participant participates.

10.2                           Beneficiary Designation; Change. 
A Participant shall designate his or her Beneficiary by completing and
signing the Beneficiary Designation Form, and returning it to the Committee or
its designated agent.  A Participant
shall have the right to change a Beneficiary by completing, signing and
otherwise complying with the terms of the Beneficiary Designation Form and the
Committee’s rules and procedures, as in effect from time to time.  Upon the acceptance by the Committee of a
new Beneficiary Designation Form, all Beneficiary designations previously filed
shall be canceled.  The Committee shall
be entitled to rely on the last Beneficiary Designation Form filed by the
Participant and accepted by the Committee prior to his or her death.

10.3                           Acknowledgment.  No
designation or change in designation of a Beneficiary shall be effective until
received and acknowledged in writing by the Committee or its designated agent.

10.4                           No Beneficiary Designation. 
If a Participant fails to designate a Beneficiary as provided in
Sections 10.1, 10.2 and 10.3 above or, if all designated Beneficia­ries
predecease the Participant or die prior to complete distribution of the
Participant’s benefits, then the Participant’s designated Beneficiary shall be
deemed to be his or her surviving spouse. 
If the Participant has no surviving spouse, the benefits remaining under
the Plan to be paid to a Beneficiary shall be payable to the executor or
personal representative of the Participant’s estate.

10.5                           Doubt as to Beneficiary. 
If the Committee has any doubt as to the proper Beneficiary to receive
payments pursuant to this Plan, the Committee shall have the right, exercisable
in its discretion, to cause the Participant’s Employer to withhold such
payments until this matter is resolved to the Committee’s satisfaction.

10.6                           Discharge of Obligations. 
The payment of benefits under the Plan to a Beneficiary shall fully and
completely discharge all Employers and the Committee from all further
obligations under this Plan with respect to the Participant, and that Participant’s
Plan Agreement shall terminate upon such full payment of benefits.

 

16

 

ARTICLE
11

Leave of Absence

11.1                           Paid Leave of Absence. 
If a Participant is authorized by the Participant’s Employer for any
reason to take a paid leave of absence from the employment of the Employer, the
Partici­pant shall continue to be considered employed by the Employer and the
Annual Deferral Amount shall continue to be withheld during such paid leave of
absence in accordance with Section 3.3.

11.2                           Unpaid Leave of Absence. 
If a Participant is authorized by the Participant’s Employer for any
reason to take an unpaid leave of absence from the employ­ment of the Employer,
the Parti­cipant shall continue to be considered employed by the Employer and
the Participant shall be excused from making deferrals until the earlier of the
date the leave of absence expires or the Participant returns to a paid
employment status.  Upon such expiration
or return, deferrals shall resume for the remaining portion of the Plan Year in
which the expiration or return occurs, based on the deferral election, if any,
made for that Plan Year.  If no election
was made for that Plan Year, no deferral shall be withheld.

ARTICLE
12

Termination, Amendment or Modification

12.1                           Termination.  Although
each Employer anticipates that it will continue the Plan for an indefinite
period of time, there is no guarantee that any Employer will continue the Plan
or will not terminate the Plan at any time in the future.  Accordingly, each Employer reserves the
right to discontinue its sponsorship of the Plan and/or to terminate the Plan
at any time with respect to any or all of its participating Employees, by
action of its board of directors.  Upon
the termination of the Plan with respect to any Employer, the Plan Agreements
of the affected Participants who are employed by that Employer shall terminate
and their vested Account Balances shall be determined (i) as if they had
experienced a Termination of Employment on the date of Plan termination; or (ii)
if Plan termination occurs after the date upon which a Participant was eligible
to Retire, then with respect to that Participant as if he or she had Retired on
the date of Plan termination.  Such
benefits shall be paid to the Participants in a lump sum.  The termination of the Plan shall not
adversely affect any Participant or Beneficiary who has become entitled to the
payment of any benefits under the Plan as of the date of termination; provided
however, that the Employer shall have the right to accelerate installment
payments without a premium or prepayment penalty by paying the vested Account
Balance in a lump sum (provided that the present value of all payments that
will have been received by a Participant at any given point of time under the
different payment schedule shall equal or exceed the present value of all
payments that would have been received at that point in time under the original
payment schedule).

12.2                           Amendment.  Any Employer
may, at any time, amend or modify the Plan in whole or in part with respect to
that Employer by the action of its board of directors; provided, however, that:
(i) no amendment or modification shall be effective to decrease or restrict the
value of a Participant’s vested Account Balance in existence at the time the amendment
or modification is made, calculated as if the Participant had experienced a 

 

17

 

                                                Termination of Employment as of the
effective date of the amendment or modification or, if the amendment or
modification occurs after the date upon which the Participant was eligible to
Retire, the Participant had Retired as of the effective date of the amendment
or modification, and (ii) no amendment or modification of this Section 12.2 or
Sections 12.1, 13.2 and 17.18 of the Plan shall be effective.  The amendment or modification of the Plan
shall not affect any Participant or Beneficiary who has become entitled to the
payment of benefits under the Plan as of the date of the amendment or
modification; provided, however, that the Employer shall have the right to
accelerate installment payments by paying the vested Account Balance in a lump
sum or pursuant to an Annual Installment Method using fewer years (provided
that the present value of all payments that will have been received by a
Participant at any given point of time under the different payment schedule
shall equal or exceed the present value of all payments that would have been
received at that point in time under the original payment schedule).

12.3                           Plan Agreement.  Despite the
provisions of Sections 12.1 and 12.2 above, if a Participant’s Plan
Agreement contains benefits or limitations that are not in this Plan document,
the Employer may only amend or terminate such provisions with the written
consent of the Participant.

12.4                           Effect of Payment.  The full
payment of the Participant’s vested Account Balance under Articles 5, 6,
7, 8 or 9 of the Plan shall completely discharge all obligations to a
Participant and his or her designated Beneficiaries under this Plan and the
Participant’s Plan Agreement shall terminate.

ARTICLE
13

Administration

13.1                           Committee Duties.  Except as
otherwise provided in this Article 13, this Plan shall be administered by a
Committee, which shall consist of the Board, or such committee as the Board
shall appoint.  Members of the Committee
may be Participants under this Plan. 
The Committee shall also have the discretion and authority to
(i) make, amend, interpret, and enforce all appropriate rules and
regulations for the administra­tion of this Plan and (ii) decide or
resolve any and all ques­tions including interpretations of this Plan, as may
arise in connection with the Plan.  Any
individual serving on the Committee who is a Participant shall not vote or act
on any matter relating solely to himself or herself.  When making a determination or calculation, the Committee shall
be entitled to rely on information furnished by a Participant or the Company.

13.2                           Administration Upon Change In Control. 
For purposes of this Plan, the Committee shall be the “Administrator” at
all times prior to the occurrence of a Change in Control.  Within one-hundred and twenty (120) days
following a Change in Control, an independent third party “Administrator” may
be selected by the individual who, immediately prior to the Change in Control,
was the Company’s President or, if not so identified, the Company’s highest
ranking officer (the “Ex-President”), and approved by the Trustee.  The Committee, as constituted prior to the Change
in Control, shall continue to be the Administrator until the earlier of (i) the
date on which such independent third party is selected and approved, or (ii)
the expiration of the one-hundred and twenty (120) day period 

 

18

 

                                                following the Change in Control.  If an independent third party is not
selected within one-hundred and twenty (120) days of such Change in Control,
the Committee, as described in Section 13.1 above, shall be the Administrator.  The Administrator shall have the discretionary
power to determine all questions arising in connection with the administration
of the Plan and the interpretation of the Plan and Trust including, but not
limited to benefit entitlement determinations; provided, however, upon and
after the occurrence of a Change in Control, the Administrator shall have no
power to direct the investment of Plan or Trust assets or select any investment
manager or custodial firm for the Plan or Trust.  Upon and after the occurrence of a Change in Control, the Company
must: (1) pay all reasonable administrative expenses and fees of the
Administrator; (2) indemnify the Administrator against any costs, expenses and
liabilities including, without limitation, attorney’s fees and expenses arising
in connection with the performance of the Administrator hereunder, except with
respect to matters resulting from the gross negligence or willful misconduct of
the Administrator or its employees or agents; and (3) supply full and timely
information to the Administrator on all matters relating to the Plan, the
Trust, the Participants and their Beneficiaries, the Account Balances of the
Participants, the date and circumstances of the Retirement, Disability, death
or Termination of Employment of the Participants, and such other pertinent information
as the Administrator may reasonably require. 
Upon and after a Change in Control, the Administrator may be terminated
(and a replacement appointed) by the Trustee only with the approval of the
Ex-President.  Upon and after a Change
in Control, the Administrator may not be terminated by the Company.

13.3                           Agents. In the administration of this Plan, the Committee
may, from time to time, employ agents and delegate to them such administrative
duties as it sees fit (including acting through a duly appointed
representative) and may from time to time consult with counsel who may be
counsel to any Employer.

13.4                           Binding Effect of Decisions. 
The decision or action of the Administrator with respect to any question
arising out of or in connection with the administration, interpretation and
application of the Plan and the rules and regulations promulgated hereunder
shall be final and conclusive and binding upon all persons having any interest
in the Plan.

13.5                           Indemnity of Committee. 
All Employers shall indemnify and hold harmless the members of the
Committee, any Employee to whom the duties of the Committee may be delegated,
and the Administrator against any and all claims, losses, damages, expenses or
liabilities arising from any action or failure to act with respect to this
Plan, except in the case of willful misconduct by the Committee, any of its
members, any such Employee or the Administrator.

13.6                           Employer Information. 
To enable the Committee and/or Administrator to perform its functions,
the Company and each Employer shall supply full and timely information to the
Committee and/or Administrator, as the case may be, on all matters relating to
the compensation of its Participants, the date and circum­stances of the
Retirement, Disability, death or Termination of Employment of its Participants,
and such other pertinent information as the Committee or Administrator may
reasonably require.

 

19

 

ARTICLE
14

Other Benefits and Agreements

14.1                           Coordination with Other Benefits. 
The benefits provided for a Participant and Participant’s Beneficiary
under the Plan are in addition to any other benefits available to such
Participant under any other plan or program for employees of the Participant’s
Employer.  The Plan shall supplement and
shall not supersede, modify or amend any other such plan or program except as
may otherwise be expressly provided.

ARTICLE
15

Claims Procedures

15.1                           Presentation of Claim. 
Any Participant or Beneficiary of a deceased Participant (such Participant
or Beneficiary being referred to below as a “Claimant”) may deliver to the
Committee a written claim for a determination with respect to the amounts
distributable to such Claimant from the Plan. 
If such a claim relates to the contents of a notice received by the
Claimant, the claim must be made within sixty (60) days after such notice
was received by the Claimant.  All other
claims must be made within 180 days of the date on which the event that
caused the claim to arise occurred.  The
claim must state with particularity the determination desired by the Claimant.

15.2                           Notification of Decision. 
The Committee shall consider a Claimant’s claim within a reasonable
time, but no later than ninety (90) days after receiving the claim.  If the Committee determines that special
circumstances require an extension of time for processing the claim, written
notice of the extension shall be furnished to the Claimant prior to the
termination of the initial ninety (90) day period.  In no event shall such extension exceed a period of ninety (90)
days from the end of the initial period. 
The extension notice shall indicate the special circumstances requiring
an extension of time and the date by which the Committee expects to render the
benefit determination.  The Committee
shall notify the Claimant in writing:

(a)                                  that the Claimant’s requested
determination has been made, and that the claim has been allowed in full; or

(b)                                 that the Committee has reached a
conclusion contrary, in whole or in part, to the Claimant’s requested
determination, and such notice must set forth in a manner calculated to be
understood by the Claimant:

(i)                                     the specific reason(s) for the denial of
the claim, or any part of it;

(ii)                                  specific reference(s) to pertinent
provisions of the Plan upon which such denial was based;

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

(iv)                              an explanation of the claim review
procedure set forth in Section 15.3 below; and

 

20

 

(v)                                 a statement of the Claimant’s right to
bring a civil action under ERISA Section 502(a) following an adverse benefit
determination on review.

15.3                           Review of a Denied Claim. 
On or before sixty (60) days after receiving a notice from the
Committee that a claim has been denied, in whole or in part, a Claimant (or the
Claimant’s duly authorized representative) may file with the Committee a
written request for a review of the denial of the claim.  The Claimant (or the Claimant’s duly
authorized representative):

(a)                                  may, upon request and free of charge,
have reasonable access to, and copies of, all documents, records and other
information relevant to the claim for benefits;

(b)                                 may submit written comments or other
documents; and/or

(c)                                  may request a hearing, which the
Committee, in its sole discretion, may grant.

15.4                           Decision on Review.  The
Committee shall render its decision on review promptly, and no later than sixty
(60) days after the Committee receives the Claimant’s written request for
a review of the denial of the claim.  If
the Committee determines that special circumstances require an extension of
time for processing the claim, written notice of the extension shall be
furnished to the Claimant prior to the termination of the initial sixty (60)
day period.  In no event shall such
extension exceed a period of sixty (60) days from the end of the initial
period.  The extension notice shall
indicate the special circumstances requiring an extension of time and the date
by which the Committee expects to render the benefit determination.  In rendering its decision, the Committee
shall take into account all comments, documents, records and other information
submitted by the Claimant relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit
determination.  The decision must be
written in a manner calculated to be understood by the Claimant, and it must
contain:

(a)                                  specific reasons for the decision;

(b)                                 specific reference(s) to the pertinent
Plan provisions upon which the decision was based;

(c)                                  a statement that the Claimant is entitled
to receive, upon request and free of charge, reasonable access to and copies
of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the Claimant’s claim for benefits; and

(d)                                 a statement of the Claimant’s right to
bring a civil action under ERISA Section 502(a).

15.5                           Legal Action.  A Claimant’s
compliance with the foregoing provisions of this Article 15 is a mandatory
prerequisite to a Claimant’s right to commence any legal action with respect to
any claim for benefits under this Plan.

ARTICLE
16

Trust

16.1                           Establishment of the Trust. 
In order to provide assets from which to fulfill the obligations of the
Participants and their beneficiaries under the Plan, the Company may establish
a Trust by a trust agreement with a third party, the trustee, to 

 

21

 

                                                which each Employer may, in its
discretion, contribute cash or other property, including securities issued by
the Company, to provide for the benefit payments under the Plan.

16.2                           Interrelationship of the Plan and the Trust. 
The provisions of the Plan and the Plan Agreement shall govern the
rights of a Participant to receive distributions pursuant to the Plan.  The provisions of the Trust shall govern the
rights of the Employers, Participants and the creditors of the Employers to the
assets transferred to the Trust.  Each
Employer shall at all times remain liable to carry out its obligations under
the Plan.

16.3                           Distributions From the Trust. 
Each Employer’s obligations under the Plan may be satisfied with Trust
assets distributed pursuant to the terms of the Trust, and any such
distribution shall reduce the Employer’s obligations under this Plan.

ARTICLE
17

Miscellaneous

17.1                           Status of Plan.  The Plan is
intended to be a plan that is not qualified within the meaning of Code Section
401(a) and that “is unfunded and is maintained by an employer primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees” within the meaning of ERISA Sections 201(2),
301(a)(3) and 401(a)(1).  The Plan shall
be administered and interpreted to the extent possible in a manner consistent
with that intent.

17.2                           Unsecured General Creditor. 
Participants and their Bene­ficiaries, heirs, successors and assigns
shall have no legal or equitable rights, interests or claims in any property or
assets of an Employer.  For purposes of
the payment of benefits under this Plan, any and all of an Employer’s assets
shall be, and remain, the general, unpledged unrestricted assets of the
Employer.  An Employer’s obligation under
the Plan shall be merely that of an unfunded and unsecured promise to pay money
in the future.

17.3                           Employer’s Liability. 
An Employer’s liability for the payment of benefits shall be defined
only by the Plan and the Plan Agreement, as entered into between the Employer
and a Participant.  An Employer shall
have no obliga­tion to a Participant under the Plan except as expressly
provided in the Plan and his or her Plan Agreement.

17.4                           Nonassignability.  Neither a
Participant nor any other person shall have any right to commute, sell, assign,
transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,
hypothecate, alienate or convey in advance of actual receipt, the amounts, if
any, payable hereunder, or any part thereof, which are, and all rights to which
are expressly declared to be, unassignable and non-transfer­able.  No part of the amounts payable shall, prior
to actual payment, be subject to seizure, attachment, garnishment or
sequestration for the payment of any debts, judgments, alimony or separate
maintenance owed by a Participant or any other person, be transferable by
operation of law in the event of a Participant’s or any other person’s
bankruptcy or insolvency or be transferable to a spouse as a result of a
property settlement or otherwise.

 

22

 

17.5                           Not a Contract of Employment. 
The terms and conditions of this Plan shall not be deemed to constitute
a contract of employment between any Employer and the Participant.  Such employment is hereby acknowledged to be
an “at will” employment relationship that can be terminated at any time for any
reason, or no reason, with or without cause, and with or without notice, unless
expressly provided in a written employment agreement.  Nothing in this Plan shall be deemed to give a Participant the
right to be retained in the service of any Employer, or to inter­fere with the
right of any Employer to discipline or discharge the Participant at any time.

17.6                           Furnishing Information. 
A Participant or his or her Beneficiary will cooperate with the
Committee by furnishing any and all information requested by the Committee and
take such other actions as may be requested in order to facilitate the
administra­tion of the Plan and the payments of benefits hereunder, including
but not limited to taking such physical examinations as the Committee may deem
necessary.

17.7                           Terms.  Whenever any
words are used herein in the masculine, they shall be construed as though they
were in the feminine in all cases where they would so apply; and whenever any
words are used herein in the singular or in the plural, they shall be construed
as though they were used in the plural or the singular, as the case may be, in
all cases where they would so apply.

17.8                           Captions.  The captions
of the articles, sections and paragraphs of this Plan are for convenience only
and shall not control or affect the meaning or construction of any of its
provisions.

17.9                           Governing Law.  Subject to
ERISA, the provisions of this Plan shall be construed and interpreted according
to the internal laws of the State of California without regard to its conflicts
of laws principles.

17.10                     Notice.  Any notice
or filing required or permitted to be given to the Committee under this Plan
shall be sufficient if in writing and hand-delivered, or sent by registered or
certified mail, to the address below:

	
   

  	
  LECG Corporation

  
	
   

  	
  Attn:  Chief
  Financial Officer

  
	
   

  	
  2000 Powell Street, Suite 600

  
	
   

  	
  Emeryville, CA 
  94608

  

With a copy to:

	
   

  	
  LECG Corporation

  
	
   

  	
  Attn: 
  Director of Human Resources

  
	
   

  	
  2000 Powell Street, Suite 600

  
	
   

  	
  Emeryville, CA 
  94608

  

Such notice shall
be deemed given as of the date of delivery or, if delivery is made by mail, as
of the date shown on the postmark on the receipt for registration or
certification.

 

23

 

Any notice or
filing required or permitted to be given to a Participant under this Plan shall
be sufficient if in writing and hand-delivered, or sent by mail, to the last
known address of the Participant.

17.11                     Successors.  The
provisions of this Plan shall bind and inure to the benefit of the
Participant’s Employer and its successors and assigns and the Participant and
the Participant’s designated Beneficiaries.

17.12                     Spouse’s Interest.  The interest
in the benefits hereunder of a spouse of a Participant who has predeceased the
Participant shall automatically pass to the Participant and shall not be
transferable by such spouse in any manner, including but not limited to such
spouse’s will, nor shall such interest pass under the laws of in testate
succession.

17.13                     Validity.  In case any
provision of this Plan shall be illegal or invalid for any reason, said
illegality or invalidity shall not affect the remaining parts hereof, but this
Plan shall be construed and enforced as if such illegal or invalid provision
had never been inserted herein.

17.14                     Incompetent.  If the
Committee determines in its discretion that a benefit under this Plan is to be
paid to a minor, a person declared incompetent or to a person incapable of
handling the disposition of that person’s property, the Committee may direct
payment of such benefit to the guardian, legal representative or person having
the care and custody of such minor, incompetent or incapable person.  The Committee may require proof of minority,
incompetence, incapacity or guardianship, as it may deem appropriate prior to
distribution of the benefit.  Any
payment of a benefit shall be a payment for the account of the Participant and
the Participant’s Beneficiary, as the case may be, and shall be a complete
discharge of any liability under the Plan for such payment amount.

17.15                     Court Order.  The
Committee is authorized to make any payments directed by court order in any
action in which the Plan or the Committee has been named as a party.  In addition, if a court determines that a
spouse or former spouse of a Participant has an interest in the Participant’s
benefits under the Plan in connection with a property settlement or otherwise,
the Committee, in its sole discretion, shall have the right, notwithstanding
any election made by a Participant, to immediately distribute the spouse’s or
former spouse’s interest in the Participant’s benefits under the Plan to that
spouse or former spouse.

17.16                     Distribution in the Event of Taxation.

(a)                                  In General.  If, for any
reason, all or any portion of a Participant’s benefits under this Plan becomes
taxable to the Participant prior to receipt, a Participant may petition the
Committee before a Change in Control, or the trustee of the Trust after a
Change in Control, for a distribution of that portion of his or her benefit
that has become taxable.  Upon the grant
of such a petition, which grant shall not be unreasonably withheld (and, after
a Change in Control, shall be granted), a Participant’s Employer shall
distribute to the Participant immediately available funds in an amount equal to
the taxable portion of his or her benefit (which amount shall not exceed a
Participant’s unpaid vested Account Balance under the Plan).  If the petition is granted, the tax
liability distribution shall be 

 

24

 

                                                made within 90 days of the date when the
Participant’s petition is granted.  Such
a distribution shall affect and reduce the benefits to be paid under this Plan.

(b)                                 Trust.  If the Trust
terminates in accordance with its terms and benefits are distributed from the
Trust to a Participant in accordance therewith, the Participant’s benefits
under this Plan shall be reduced to the extent of such distributions.

17.17                     Insurance.  The
Employers, on their own behalf or on behalf of the trustee of the Trust, and,
in their sole discretion, may apply for and procure insurance on the life of
the Participant, in such amounts and in such forms as the Trust may
choose.  The Employers or the trustee of
the Trust, as the case may be, shall be the sole owner and beneficiary of any
such insurance.  The Participant shall
have no interest whatsoever in any such policy or policies, and at the request
of the Employers shall submit to medical examinations and supply such
information and execute such documents as may be required by the insurance
company or companies to whom the Employers have applied for insurance.

17.18                     Legal
Fees To Enforce Rights After Change in Control. 
The Company and each Employer is aware that upon the occurrence of a
Change in Control, the Board or the board of directors of a Participant’s
Employer (which might then be composed of new members) or a shareholder of the
Company or the Participant’s Employer, or of any successor corporation might
then cause or attempt to cause the Company, the Participant’s Employer or such
successor to refuse to comply with its obligations under the Plan and might
cause or attempt to cause the Company or the Participant’s Employer to institute,
or may institute, litigation seeking to deny Participants the benefits intended
under the Plan.  In these circumstances,
the purpose of the Plan could be frustrated. 
Accordingly, if, following a Change in Control, it should appear to any
Participant that the Company, the Participant’s Employer or any successor
corporation has failed to comply with any of its obligations under the Plan or
any agreement thereunder or, if the Company, such Employer or any other person
takes any action to declare the Plan void or unenforceable or institutes any
litigation or other legal action designed to deny, diminish or to recover from
any Participant the benefits intended to be provided, then the Company and the
Participant’s Employer irrevocably authorize such Participant to retain counsel
of his or her choice at the expense of the Company and the Participant’s
Employer (who shall be jointly and severally liable) to represent such
Participant in connection with the initiation or defense of any litigation or
other legal action, whether by or against the Company, the Participant’s
Employer or any director, officer, shareholder or other person affiliated with
the Company, the Participant’s Employer or any successor thereto in any
jurisdiction.

 

25

 

IN WITNESS WHEREOF, the Company has signed this Plan
document as of September 19, 2003.

“Company”

LECG Corporation, a Delaware corporation

 

By:          Marvin A. Tenenbaum                                        

Title:       Secretary
and General Counsel                          

 

 

26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]