Document:

omnibio8kex102_1221009.htm

     

     

    EXHIBIT
10.2

    

    WARRANT
BOD #16

    

    WARRANT
TO PURCHASE SHARES

    OF
COMMON STOCK

    OF
OMNI BIO PHARMACEUTICAL, INC.

    

    Warrant
to Purchase 300,000 Shares of Common Stock

    (subject
to adjustment as set forth herein)

    

    Exercise
Price $3.00 Per Share

    (subject
to adjustment as set forth herein)

    

    VOID
AFTER 5 P.M., MST, November 13, 2016

    

    THE
SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR REGISTERED OR QUALIFIED UNDER
ANY OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS.  THESE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, OR OTHERWISE TRANSFERRED, IN WHOLE
OR IN PART, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR
QUALIFICATION FILED IN ACCORDANCE WITH THE ACT OR PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE ACT.

    

    Omni Bio Pharmaceutical, Inc.,
5350 South Roslyn, Suite 400, Greenwood Village, CO 80111, (the "Company"),
hereby certifies that, for value received, Robert C. Ogden, 6042 S.
Sheridan Way, Littleton, CO 80123 (who, together with any subsequent holder of
this warrant (“Warrant”), is referred to as the "Holder"), is entitled, subject
to the terms and conditions set forth below, to purchase from the Company at any
time before 5 PM, MST, on November 13, 2016 ("Expiration Date”), up to Three
Hundred Thousand (300,000) of the Company's $.001 par value Common Stock (the
"Shares") at a purchase price of $3.00 per Share (the "Exercise
Price").

    

    The term
"Warrant" as used herein shall include this Warrant and any Warrants issued in
substitution for or replacement of this Warrant, or any Warrants into which this
Warrant may be divided or exchanged.  The number and character of the
securities purchasable upon exercise of this Warrant and the Exercise Price are
subject to adjustment as provided below.

    

    Shares
underlying this Warrant (the “Warrant Shares”) vest according to the schedule
below assuming that the Holder has continuously served as an employee,
non-employee director, advisor or consultant of the Company through such date
subject to Sections 14 and 15 below.

    

    
      	
              Vest Date

            	
              # of Shares

            
	 
      	 
      
	
              November
      20, 2009

            	
              60,000

            
	
              September
      30, 2010

            	
              80,000

            
	
              September
      30, 2011

            	
              80,000

            
	
              September
      30, 2012

            	
              80,000

            

    

    

    

    
      
        
           

        

        
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      1.      Exercise of
Warrant.

       

      
        	
              	
                (a)

              	
                Subject
      to the other terms and conditions of this Warrant, the purchase rights
      evidenced by this Warrant may be exercised in whole or in part at any
      time, and from time to time before the Expiration Date, by the Holder's
      presentation and surrender of this Warrant to the Company at its principal
      office, accompanied by a duly executed Notice of Exercise, in the form
      attached to and by this reference incorporated in this Warrant as
      Exhibit A, and by payment of the aggregate Exercise Price, in
      immediately available funds, for that number of Shares specified in the
      Notice of Exercise.  In the event this Warrant is exercised in
      part only, as soon as is practicable after the presentation and surrender
      of this Warrant to the Company for exercise, the Company shall execute and
      deliver to the Holder a new Warrant, containing the same terms and
      conditions as this Warrant, evidencing the right of the Holder to purchase
      that number of Shares as to which this Warrant has not been
      exercised.

              

         

        
          
            	
                     
      

                  	
                    (b)

                  	
                    
                      Upon
      receipt of this Warrant by the Company as described in subsection (a)
      above, the Holder shall be deemed to be the holder of record of the Shares
      issuable upon such exercise, notwithstanding that the transfer books of
      the Company may then be closed or that certificates representing such
      Shares may not have been prepared or actually delivered to the Holder.
      

                    

                  

          

           

        

      

    

    2.      Exchange, Assignment or Loss
of Warrant.

    

    
      	
               
      

            	
              (a)

            	
              This
      Warrant may be sold, transferred or assigned at any time after the Warrant
      has vested, in whole or in part, if (i) the transfer is by operation
      of law as a result of the death of any Holder to whom all or a portion of
      this Warrant may be transferred, (ii) the transfer is to any
      successor of the Holder's business and (iii) to such other persons
      for which transaction an exemption from the registration requirements of
      the Act can be established to the satisfaction of the
      Company.  Any assignment or transfer of this Warrant shall be
      made by the presentation and surrender of this Warrant to the Company at
      its principal office, accompanied by a duly executed Assignment Form, in
      the form attached to and by this reference incorporated in this Warrant as
      Exhibit B.  Upon the presentation and surrender of these
      items to the Company, the Company, at its sole expense, shall execute and
      deliver to the new Holder or Holders a new Warrant or Warrants, containing
      the same terms and conditions as this Warrant, in the name of the new
      Holder or Holders as named in the Assignment Form, and this Warrant shall
      at that time be canceled.

            

    

    

    
      	
               
      

            	
              (b)

            	
              This
      Warrant, alone or with other Warrants containing the same terms and
      conditions and owned by the same Holder, is exchangeable at the option of
      the Holder but at the Company's sole expense, at any time prior to its
      expiration either by its terms or by its exercise in full upon
      presentation and surrender to the Company at its principal office for
      another Warrant or other Warrants, of different denominations but
      containing the same terms and conditions as this Warrant, entitling the
      Holder to purchase the same aggregate number of Shares that were
      purchasable pursuant to the Warrant or Warrants presented and
      surrendered.  At the time of presentation and surrender by the
      Holder to the Company, the Holder also shall deliver to the Company a
      written notice, signed by the Holder, specifying the denominations in
      which new Warrants are to be issued to the
  Holder.

            

    

    

    
      
        
           

        

        
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              (c)

            	
              The
      Company will execute and deliver to the Holder a new Warrant containing
      the same terms and conditions as this Warrant upon receipt by the Company
      of evidence reasonably satisfactory to it of the loss, theft, destruction,
      or mutilation of this Warrant, provided that (i) in the case of loss,
      theft, or destruction, the Company receives from the Holder a reasonably
      satisfactory indemnification, and (ii) in the case of mutilation, the
      Holder presents and surrenders this Warrant to the Company for
      cancellation.  Any new Warrant executed and delivered shall
      constitute an additional contractual obligation on the part of the Company
      regardless of whether the Warrant that was lost, stolen, destroyed, or
      mutilated shall be enforceable by anyone at any
  time.

            

    

    

    3.      Anti-Dilution
Provisions.

    

    3.1       Stock Splits, Dividends,
Etc.

    

    
      	
               
      

            	
              (a)

            	
              If
      the Company shall at any time subdivide its outstanding shares of Common
      Stock (or other securities at the time receivable upon the exercise of the
      Warrant) by recapitalization, reclassification or split-up thereof, or if
      the Company shall declare a stock dividend or distribute shares of Common
      Stock to its stockholders, the number of shares of Common Stock subject to
      this Warrant immediately prior to such subdivision shall be
      proportionately increased, and if the Company shall at any time combine
      the outstanding shares of Common Stock by recapitalization,
      reclassification or combination thereof, the number of shares of Common
      Stock subject to this Warrant immediately prior to such combination shall
      be proportionately decreased. Any such adjustment and adjustment to the
      Exercise Price pursuant to this section shall be effective at the
      close of business on the effective date of such subdivision or combination
      or if any adjustment is the result of a stock dividend or distribution
      then the effective date for such adjustment based thereon shall be the
      record date therefore.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Whenever
      the number of shares of Common Stock purchasable upon the exercise of this
      Warrant is adjusted, as provided in this section, the Exercise Price shall
      be adjusted to the nearest cent by multiplying such Exercise Price
      immediately prior to such adjustment by a fraction (x) the numerator of
      which shall be the number of shares of Common Stock purchasable upon the
      exercise immediately prior to such adjustment, and (y) the denominator of
      which shall be the number of shares of Common Stock so purchasable
      immediately thereafter.

            

    

     

    
      
        
           

        

        
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                3.2

              	
                Adjustment for
      Reorganization, Consolidation, Merger, Etc.  In case of
      any reorganization of the Company (or any other corporation, the
      securities of which are at the time receivable on the exercise of this
      Warrant) shall consolidate with or merge into another corporation or
      convey all or substantially all of its assets to another corporation,
      then, and in each such case, the Holder of this Warrant upon the exercise
      at any time after the consummation of such reorganization, consolidation,
      merger or conveyance, shall be entitled to receive, in lieu of the
      securities and property receivable upon the exercise of this Warrant prior
      to such consummation,
      the securities or property to which such Holder would have been entitled
      upon such consummation if such Holder had exercised this Warrant
      immediately prior thereto; in each such case, the terms of this Warrant
      shall be applicable to the securities or property received upon the
      exercise of this Warrant after such
  consummation.

              

      

       

    

    
      	
               
      

            	
              3.3

            	
              Certificate as to
      Adjustments.  In each case of an adjustment in the number
      of shares of Common Stock receivable on the exercise of this Warrant, the
      Company at its expense shall promptly compute such adjustment in
      accordance with the terms of this Warrant and prepare a certificate
      executed by an officer of the Company setting forth such adjustment and
      showing the facts upon which such adjustment is based.  The
      Company shall forthwith mail a copy of each such certificate to each
      Holder.  The failure to prepare or provide such certificate
      shall not modify the rights of any party
  hereunder.

            

    

    

    3.4       Notices of Record Date,
Etc.  In case:

    

    
      	
               
      

            	
              (a)

            	
              the
      Company shall take a record of the holders of its Common Stock (or other
      securities at the time receivable upon the exercise of this Warrant) for
      the purpose of entitling them to receive any dividend (other than a cash
      dividend at the same rate as the rate of the last cash dividend
      theretofore paid) or other distribution, or any right to subscribe for,
      purchase or otherwise acquire any shares of stock of any class or any
      other securities, or to receive any other right;
  or

            

    

    

    
      	
               
      

            	
              (b)

            	
              of
      any voluntary or involuntary dissolution, liquidation or winding-up of the
      Company, then, and in each such case, the Company shall mail or cause to
      be mailed to each Holder a notice specifying, as the case may be,
      (i) the date on which a record is to be taken for the purpose of such
      dividend, distribution or right, and stating the amount and character of
      such dividend, distribution or right, or (ii) the date on which such
      reorganization, reclassification, consolidation, merger, conveyance,
      dissolution, liquidation or winding-up is to take place, and the time, if
      any, to be fixed, as to which the holders of record of Common Stock (or
      such other securities at the time receivable upon the exercise of this
      Warrant) shall be entitled to exchange their shares of Common Stock (or
      such other securities) for securities or other property deliverable upon
      such reorganization, reclassification, consolidation, merger, conveyance,
      dissolution, liquidation or winding-up.  Such notice shall be
      mailed at least twenty (20) days prior to the date therein specified, and
      this Warrant may be exercised prior to said date during the term of this
      Warrant.

            

    

    

    
      	
               
      

            	
              3.5

            	
              Threshold for
      Adjustments.  Anything in this section to the contrary
      notwithstanding, the Company shall not be required to give effect to any
      adjustment until the cumulative resulting adjustment in the Exercise Price
      pursuant to this Section 3 shall have required a change of the
      Exercise Price by at least $.01, but when the cumulative net effect of
      more than one adjustment so determined shall be to change the Exercise
      Price by at least $.01, such full change in the Exercise Price shall
      thereupon be given effect.  No adjustment shall be made by
      reason of the issuance of shares upon conversion rights, stock issuance
      rights or similar rights currently outstanding or any change in the number
      of treasury shares held by the
Company.

            

    

    

    
      
        
           

        

        
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              4.

            	
              Reservation
      of Shares.
      The Company hereby agrees that at all times prior to the Expiration
      Date, it will have authorized and will reserve and keep available for
      issuance and delivery to the Holder that number of Shares that may be
      required from time to time for issuance and delivery upon the exercise of
      the then unexercised portion of this Warrant and all other similar
      Warrants then outstanding and
unexercised.

            

    

    
       

      
        
          	
                   
      

                	
                  5.

                	
                  Representations of the
      Holder.   The Company hereby agrees that at
      all times prior to the Expiration Date, it will have authorized and will
      reserve and keep available for issuance and delivery to the Holder that
      number of Shares that may be required from time to time for issuance and
      delivery upon the exercise of the then unexercised portion of this Warrant
      and all other similar Warrants then outstanding and
      unexercised.

                

        

         

      

      
        	
                 
      

              	
                (a)

              	
                The
      Holder represents and warrants that the Holder is acquiring this Warrant
      and the Shares solely for the Holder’s own account for investment and not
      with a view to or for sale or distribution of said Warrant or Shares or
      any part thereof.  The Holder also represents that the entire
      legal and beneficial interests of this Warrant and Shares the Holder is
      acquiring are being acquired for, and will be held for, the Holder’s
      account only.

              

      

      
         

        
          	
                   
      

                	
                  (b)

                	
                  
                    The
      Holder understands that this Warrant and the Shares have not been
      registered under the Act, or the securities laws of any applicable state,
      on the basis that no distribution or public offering of the stock of the
      Company is to be effected.  The Holder realizes that the basis
      for the exemption may not be present if, notwithstanding the Holder’s
      representations, the Holder has a present intention of acquiring the
      securities for a fixed or determinable period in the future, selling (in
      connection with a distribution or otherwise), granting any participation
      in, or otherwise distributing the securities.  The Holder has no
      such present intention.

                  

                

        

         

      

      
        	
                 
      

              	
                (c)

              	
                The
      Holder recognizes that this Warrant and the Shares must be held
      indefinitely unless they are subsequently registered under the Act or an
      exemption from such registration is available.  The Holder
      recognizes that the Company has no obligation to register this Warrant or
      the Shares, or to comply with any exemption from such registration. This
      Warrant, the Shares, and all other securities issued or issuable upon
      exercise of this Warrant, may not be offered, sold or transferred, in
      whole or in part, except in compliance with the Act, and except in
      compliance with all applicable state securities
  statutes.

              

      

      

      
        	
                 
      

              	
                (d)

              	
                The
      Holder is aware that neither this Warrant nor the Shares may be sold
      pursuant to Rule 144 adopted under the Act unless certain conditions are
      met.

              

      

       

    

    
      	
               
      

            	
              (e)

            	
              The
      Holder understands and agrees that all certificates evidencing the
      Exercise Shares shall bear legends substantially in the form of the
      following:

            

    

    

    
      	
               
      

            	
              "The
      securities represented by this Certificate have not been registered under
      the Securities Act of 1933 ("the Act") and are 'restricted securities' as
      that term is defined in Rule 144 under the Act.  The
      securities may not be offered for sale, sold or otherwise transferred
      except pursuant to an effective registration statement under the Act or
      pursuant to an exemption from registration under the Act, the availability
      of which is to be established to the satisfaction of the
      Company."

            

    

    

    
      
        
           

        

        
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              6.

            	
              Rights
      of the Holder.  The Holder
      shall not be entitled to any rights as a shareholder in the Company by
      reason of this Warrant, either at law or equity, except as specifically
      provided for herein.  The Company covenants, however, that for
      so long as this Warrant is at least partially unexercised, it will furnish
      any Holder of this Warrant with copies of all reports and communications
      furnished to the shareholders of the
Company.

            

    

    

    
      	
               
      

            	
              7.

            	
              Charges
      Due Upon Exercise.  The Company shall pay any and all
      issue or transfer taxes, including, but not limited to, all federal or
      state taxes, that may be payable with respect to the transfer of this
      Warrant or the issue or delivery of Shares upon the exercise of this
      Warr                                                                                                                                                      
      ant.

            

    

    

    
      	
               
      

            	
              8.

            	
              Shares
      to be Fully Paid.  The Company
      covenants that all Shares that may be issued and delivered to a Holder of
      this Warrant upon the exercise of this Warrant will be, upon such
      delivery, validly and duly issued, fully paid and
      non-assessable.

            

    

    

    
      	
               
      

            	
              9.

            	
              Notices.  All
      notices, certificates, requests, or other similar items provided for in
      this Warrant shall be in writing and shall be personally delivered or
      deposited in the United States mail, postage prepaid, addressed to the
      respective party as indicated in the portions of this Warrant preceding
      Section 1.  All notices shall be deemed to be delivered
      upon personal delivery or upon the expiration of three (3) business days
      following deposit in the United States mail, postage
      prepaid.  The addresses of the parties may be changed, and
      addresses of other Holders and holders of Shares may be specified, by
      written notice delivered pursuant to this Section 14.  The
      Company's principal office shall be deemed to be the address provided
      pursuant to this Section for the delivery of notices to the
      Company.

            

    

    

    
      	
              10.

            	
              Applicable
      Law.  This
      Warrant shall be governed by and construed in accordance with the laws of
      the State of Colorado, and courts located in Colorado shall have exclusive
      jurisdiction over all disputes arising hereunder except as provided in
      Section 15 hereof.

            

    

     

    
      
        
          	
                  11.

                	
                  Dispute
      Resolution.     The parties shall attempt in good faith to
      resolve any controversy or claim arising out of or relating to this
      Warrant, or the breach, termination, or validity thereof (a “Dispute”)
      promptly by negotiation between the parties.  If a Dispute has
      not been resolved within thirty (30) days by negotiation, the parties
      shall attempt to mediate the Dispute through the selection of a mutually
      agreeable mediator who shall conduct such mediation in
      confidence.  If a Dispute is not resolved by mediation, then the
      Dispute shall be settled by arbitration in accordance with the Commercial
      Arbitration Rules of the American Arbitration Association, and governed by
      the United States Arbitration Act, 9 U.S.C. §§ 1-16, except as otherwise
      provided herein.  Judgment upon the award rendered by the
      arbitrator may be entered by any court having jurisdiction
      thereof.  The place of arbitration shall be Denver,
      Colorado.  Each party shall be responsible for his own attorney
      fees incurred during any phase of dispute resolution.  The
      arbitrator shall apply the law to the dispute in the same manner as a
      judge as though the dispute was before a court of law of the State of
      Colorado.  The arbitrator shall have the authority to award any
      remedy or relief that a court of the State of Colorado could order or
      grant, including, without limitation, specific performance of any
      obligation created under the Agreement, the issuance of an injunction, or
      the imposition of sanctions for abuse or frustration of the arbitration
      process.  Notwithstanding the foregoing, the arbitrator shall
      not have authority to award punitive damages.  The parties shall
      take all reasonable steps necessary to conduct a hearing no later than
      forty-five (45) days after submission of the matter to
      arbitration.  The arbitrator shall render his decision within
      fifteen (15) days after the close of the arbitration
      hearing.  The arbitration award shall be in writing and shall
      specify the factual and legal bases for the
      award.

                

        

        
          

        

      

    

    

    
      
        
           

        

        
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                  12.

                	
                  Market Standoff
      Agreement. The Holder shall not sell, dispose of, transfer,
      make any short sale of, grant any option for the purchase of, or enter
      into any hedging or similar transaction with the same economic effect as a
      sale, any Common Stock (or other securities) of the Company held by the
      Holder, for a period of time specified by the managing underwriter(s) or
      placement agent(s), as applicable, (not to exceed one hundred eighty (180)
      days) following the effective date of a primary underwritten public
      offering by the Company of any Common Stock (or other securities) or
      private placement by the Company of any Common Stock (or other
      securities).  Holder agrees to execute and deliver such other
      agreements as may be reasonably requested by the Company and/or the
      managing underwriter(s) or placement agent(s) which are consistent with
      the foregoing or which are necessary to give further effect
      thereto.  In order to enforce the foregoing covenant, the
      Company may impose stop-transfer instructions with respect to such Common
      Stock (or other securities) until the end of such period.  The
      underwriters or placement agents of the Company’s stock are intended third
      party beneficiaries of this Section 12 and shall have the right, power and
      authority to enforce the provisions hereof as though they were a party
      hereto.

                

        

         

      

    

    
      	
                
      13.

            	
              Change
      of Control of the Company. As used herein, a "Change of Control"
      shall be deemed to have occurred
if:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Any
      "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange
      Act) (other than persons who are stockholders on the effective date of the
      Plan) becomes a "beneficial owner" (as defined in Rule 13d-3 under
      the Exchange Act), directly or indirectly, of securities of the Company
      representing more than 50% of the voting power of the then outstanding
      securities of the Company; provided that a Change of Control shall not be
      deemed to occur as a result of a change of ownership resulting from the
      death of a stockholder and a Change of Control shall not be deemed to
      occur as a result of a transaction in which the Company becomes a
      subsidiary of another corporation and in which the stockholders of the
      Company immediately prior to the transaction will beneficially own,
      immediately after the transaction, shares entitling such stockholders to
      more than 50% of all votes to which all stockholders of the parent
      corporation would be entitled in the election of directors (without
      consideration of the rights of any class of stock to elect directors by a
      separate class vote); or

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      stockholders of the Company approve (or, if stockholder approval is not
      required, the Board approves) an agreement providing for (i) the merger or
      consolidation of the Company with another corporation where the
      stockholders of the Company immediately prior to the merger or
      consolidation will not beneficially own, immediately after the merger or
      consolidation, shares entitling such stockholders to more than 50% of all
      votes to which all stockholders of the surviving corporation would be
      entitled in the election of directors (without consideration of the rights
      of any class of stock to elect directors by a separate class vote),
      (ii) the sale or other disposition of all or substantially all of the
      assets of the Company, or (iii) a liquidation or dissolution of the
      Company.

            

    

    

    
      
        
           

        

        
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                 14.

            	
              Consequences
      of a Change of Control.

            

    

    

     

    (a)    Notice and
Acceleration.    Upon a Change of Control,
(i) the Company shall provide the Holder a written notice of such Change of
Control, (ii) on the date prior to the Change of Control the Warrant shall
automatically accelerate and become fully exercisable, and (iii) the
restrictions and conditions on the Warrant shall immediately lapse.

     

    (b)    Assumption
of Warrant.    Upon a Change of Control where the
Company is not the surviving corporation (or survives only as a subsidiary of
another corporation), any outstanding portion of the Warrant that is not
exercised shall be assumed by, or replaced with comparable warrants and/or
options by, the surviving corporation.

     

    
      	
              15. 

            	
               Termination of Employment, Services,
      Disability or Death.

            

    

    

    
      	
               
      

            	
              (a)

            	
              In
      the event the Holder ceases to be employed by, or provide service to, the
      Company for any reason other than Disability, death, or termination for
      Cause, any unvested Warrant Shares will be forfeited and cancelled on the
      date on which the Holder ceases to be employed by, or provide service to,
      the Company.

            

    

    

    
      	
               
      

            	
              (b)

            	
              In
      the event the Holder ceases to be employed by, or provide service to, the
      Company due to termination for Cause by the Company, this Warrant shall
      terminate as of the date the Holder ceases to be employed by, or provide
      service to, the Company. In addition, notwithstanding any other provisions
      of this Section 15, if the Company determines that the Holder has
      engaged in conduct that constitutes Cause at any time while the Holder is
      employed by, or providing service to, the Company or after the Holder's
      termination of employment or service, this Warrant shall immediately
      terminate, and the Holder shall automatically forfeit all Shares
      underlying any exercised portion of this Warrant for which the Company has
      not yet delivered the share certificates, upon refund by the Company of
      the Exercise Price paid by the Holder for such shares. Upon any exercise
      of this Warrant, the Company may withhold delivery of share certificates
      pending resolution of an inquiry that could lead to a finding resulting in
      forfeiture.

            

    

    
      

      
        	
                 
      

              	
                (c)

              	
                In
      the event the Holder ceases to be employed by or provide service to the
      Company due to Disability or death, all Warrant Shares shall immediately
      become vested and exercisable. In the circumstance of death, this Warrant
      shall pass to the Holder’s estate.

              

      

      

      
        	
                 
      

              	
                For purposes of this
      Section 15:

              

      

      

      
        	
                 
      

              	
                 (1)

              	
                "Employed
      by or provide service to the Company" shall mean employment or service as
      an employee, non-employee director, advisor or consultant (so that, for
      purposes of exercising this Warrant, the Holder shall not be considered to
      have terminated employment or service until the Holder ceases to be an
      employee, non-employee director, advisor or
  consultant).

              

      

       

      
        
          	
                   
      

                	
                   (2)

                	
                  "Disability"
      shall mean permanent and total disability.  An individual is
      permanently and totally disabled if he is unable to engage in any
      substantial gainful activity by reason of any medically determinable
      physical or mental impairment which can be expected to result in death or
      which has lasted or can be expected to last for a continuous period of not
      less than 12 months.  An individual shall not be considered to be
      permanently and totally disabled unless he furnishes proof of the
      existence thereof in such form and manner, and at such times, as the Board
      may require.

                

        

         

      

    

    
      
        
           

        

        
          -
8 -

          
            

          

        

        
           

        

      

    

    
       

      
         

        
          	
                   
      

                	
                   (3)

                	
                  "Cause"
      shall mean, except to the extent specified otherwise by the Company or its
      Board of Directors (the “Board”), a finding by the Company or Board that
      the Holder (i) has breached his or her employment or service contract
      with the Company, (ii) has engaged in disloyalty to the Company,
      including, without limitation, fraud, embezzlement, theft, commission of a
      felony or proven dishonesty in the course of his or her employment or
      service, (iii) has disclosed trade secrets or confidential
      information of the Company to persons not entitled to receive such
      information or (iv) has engaged in such other behavior detrimental to
      the interests of the Company as the Company or Board
      determine.

                

        

        

      

    

       
16.      Miscellaneous
Provisions.

    

    
      	
               
      

            	
              (a)

            	
              Subject
      to the terms and conditions contained herein, this Warrant shall be
      binding on the Company and its successors and shall inure to the benefit
      of the original Holder, its successors and assigns and all holders of
      Shares and the exercise of this Warrant in full shall not terminate the
      provisions of this Warrant as it relates to holders of
    Shares.

            

    

    

    
      	
               
      

            	
              (b)

            	
              If
      the Company fails to perform any of its obligations hereunder, it shall be
      liable to the Holder for all damages, costs and expenses resulting from
      the failure, including, but not limited to, all reasonable attorney's fees
      and disbursements.

            

    

    

    
      	
               
      

            	
              (c)

            	
              This
      Warrant cannot be changed or terminated or any performance or condition
      waived in whole or in part except by an agreement in writing signed by the
      party against whom enforcement of the change, termination or waiver is
      sought.

            

    

    

    
      	
               
      

            	
              (d)

            	
              If
      any provision of this Warrant shall be held to be invalid, illegal or
      unenforceable, such provision shall be severed, enforced to the extent
      possible, or modified in such a way as to make it enforceable, and the
      invalidity, illegality or unenforceability shall not affect the remainder
      of this Warrant.

            

    

    

    
      	
               
      

            	
              (e)

            	
              The
      Company agrees to execute such further agreements, conveyances,
      certificates and other documents as may be reasonably requested by the
      Holder to effectuate the intent and provisions of this
      Warrant.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Paragraph
      headings used in this Warrant are for convenience only and shall not be
      taken or construed to define or limit any of the terms or provisions of
      this Warrant.  Unless otherwise provided, or unless the context
      shall otherwise require, the use of the singular shall include the plural
      and the use of any gender shall include all
  genders.

            

    

    

    

    
      
        
           

        

        
          -
9 -

          
            

          

        

        
           

        

      

    

    
      

      

      
        	 
      	 
      	 
      	
                OMNI BIO PHARMACEUTICAL,
    INC.

              
	 
      	 
      	 
      	 
      	 
      
	
                ATTEST:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By

              	
                /s/
      Robert Ogden

              	 
      	
                By

              	
                /s/
      Vicki D.E. Barone

              
	 
      	
                Robert
      Ogden

              	 
      	 
      	
                Vicki
      D.E. Barone

              
	 
      	
                Secretary

              	 
      	 
      	
                Chairperson
      of the Board

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                Date

              	 
      	 
      	
                Date

              	 
      

      

      

    

    
      
        
           

        

        
          -
10 -

          
            

          

        

        
           

        

      

    

    
      

      EXHIBIT
A

      

      NOTICE
OF EXERCISE

      

      (To be
executed by a Holder desiring to exercise the right to purchase Shares pursuant
to a Warrant.)

      

          The
undersigned Holder of a Warrant hereby:

      
        
          

          
            	 
      	
                    (a) 
      irrevocably elects to exercise the Warrant to the extent of purchasing
      _______________ Shares;

                  
	 
      	 
      
	 
      	
                     (b)  
      makes payment in full of
      the aggregate Exercise Price for those Shares in the amount of $
      by the delivery of
      immediately available funds in the amount of $ __________;

                  
	 
      	 
      
	 
      	
                    (c) 
      requests that certificates evidencing the securities underlying such
      Shares be issued in the name of the undersigned, or, if the name and
      address of some other person is specified below, in the name of such other
      person:

                  
	 
      	
                     

                  

            
              _______________________________________________

              

              _______________________________________________

               

              _______________________________________________

              (Name and
address of person other than
the

              undersigned
in whose name Shares are to be registered)

               

            

            	 
      	
                    (d) 
      requests, if the number of Shares purchased are not all the Shares
      purchasable pursuant to the unexercised portion of the Warrant, that a new
      Warrant of like tenor for the remaining Shares purchasable pursuant to the
      Warrant be issued and delivered to the undersigned at the address stated
      below.

                  

          

          

        

         

      

      
        	 
      	 
      	 
      	 
      
	
                Dated: __________________________________________                     

              	 
      	 
      	___________________________________________________________ 
      
	
                 

              	 
      	 
      	
                Signature

              
	 
      	 
      	 
      	
                (This
      signature must conform in all respects 

                to
      the name of the Holder as specified on the 

                face
      of the Warrant.)

              
	 
      	 
      	 
      	 
      
	___________________________________________________ 
      	 
      	 
      	 
      
	
                Social
      Security Number

              	 
      	 
      	___________________________________________________________ 
      
	
                or
      Employer ID Number

              	 
      	 
      	
                Printed
      Name

              
	 
      	 
      	 
      	 
      
	
                 

              	 
      	
                Address:

              	
                 
      __________________________________________________________

                 

                 
      __________________________________________________________

              
	 
      	 
      	 
      	 
      

      

      

      
        
          
             

          

          
            -
11 -

            
              

            

          

          
             

          

        

      

      

      

      EXHIBIT
B

      

      ASSIGNMENT
FORM

      

      

      FOR VALUE
RECEIVED, the undersigned,  ____________________________________,
hereby sells, assigns and transfers unto:

      

      Name: ___________________________________________________                

      (Please type or print in block
letters)

      

      Address: _________________________________________________

       

             
_________________________________________________           

      

      

      Tax ID or
SSN:  ___________________________________________

      

      the right
to purchase  _______ Shares of Omni Bio Pharmaceutical, Inc. (the
"Company") pursuant to the terms and conditions of the Warrant held by the
undersigned.  The undersigned hereby authorizes and directs the
Company (i) to issue and deliver to the above-named assignee at the above
address a new Warrant pursuant to which the rights to purchase being assigned
may be exercised, and (ii) if there are rights to purchase Shares remaining
pursuant to the undersigned's Warrant after the assignment contemplated herein,
to issue and deliver to the undersigned at the address stated below a new
Warrant evidencing the right to purchase the number of Shares remaining after
issuance and delivery of the Warrant to the above-named
assignee.  Except for the number of Shares purchasable, the new
Warrants to be issued and delivered by the Company are to contain the same terms
and conditions as the undersigned's Warrant.  To complete the
assignment contemplated by this Assignment Form, the undersigned hereby
irrevocably constitutes and
appoints _________________________________________________________
as the
undersigned's attorney-in-fact to transfer the Warrants and the rights
thereunder on the books of the Company with full power of substitution for these
purposes.

      

      

      

      
        	
                Dated: ________________________________

              	________________________________________________________________________ 
      
	 
      	
                Signature

              
	 
      	
                (This
      signature must conform in all respects

              
	 
      	
                 to
      the name of the Holder as specified on the

              
	 
      	
                 face
      of the Warrant.)

              
	 
      	 
      
	 
      	 
      
	 
      	________________________________________________________________________  
      
	 
      	
                Printed
      Name

              
	 
      	 
      
	 
      	 
      
	 
      	
                Address: ________________________________________________________________

              
	 
      	
                 
      

                ________________________________________________________________________ 
      

              

      

      

      

      
        
          
             

          

          
            -
12 -Exhibit
10.1

 

COHERENT, INC.

 

2005 DEFERRED COMPENSATION PLAN

 

 

PREAMBLE

 

This Coherent, Inc.
2005 Deferred Compensation Plan is adopted by Coherent, Inc. for the
benefit of certain of its Employees and members of its Board of Directors,
effective as of January 1, 2005 (the “Effective Date”).  The purpose of the Plan is to provide
supplemental retirement income and to permit eligible Participants the option
to defer receipt of Compensation, pursuant to the terms of the Plan.  The Plan is intended to be an unfunded
deferred compensation plan maintained for the benefit of a select group of
management or highly compensated employees under sections 201(2), 301(a)(3) and
401(a)(1) of ERISA and is intended to comply with Section 409A of the
Internal Revenue Code.  Participants
shall have the status of unsecured creditors of Coherent, Inc. with
respect to the payment of Plan benefits.

 

From and after the
Effective Date, this Plan replaces the Coherent, Inc. 1995 Deferred
Compensation Plan, the Coherent, Inc. Supplementary Retirement Plan and
the Director Deferred Compensation Plan, which have been frozen to new
deferrals as of December 31, 2004 so as to qualify these prior plans for “grandfather”
treatment under Internal Revenue Code Section 409A.

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE
  I Definitions

  	
  1

  
	
   

  	
   

  
	
  1.1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II Participation

  	
  4

  
	
   

  	
   

  
	
  2.1

  	
  Date
  of Participation

  	
  4

  
	
  2.2

  	
  Resumption
  of Participation Following Return to Service

  	
  4

  
	
  2.3

  	
  Change
  in Employment Status

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE III  Contributions

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Deferral
  Contributions

  	
  5

  
	
  3.2

  	
  Accounts

  	
  6

  
	
  3.3

  	
  Company
  Contributions

  	
  7

  
	
  3.4

  	
  Cancellation
  of Elections Due to 401(k) Hardship Withdrawal or Unforeseeable
  Emergency Distribution

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV Participants’ Accounts

  	
  8

  
	
   

  	
   

  
	
  4.1

  	
  Individual
  Accounts

  	
  8

  
	
  4.2

  	
  Accounting
  for Distributions

  	
  8

  
	
  4.3

  	
  Separate
  Accounts

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V Investment of Contributions

  	
  8

  
	
   

  	
   

  
	
  5.1

  	
  Manner
  of Investment

  	
  8

  
	
  5.2

  	
  Investment
  Decisions

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI Distributions

  	
  9

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Certain
  Distributions to Participants and Beneficiaries

  	
  9

  
	
  6.2

  	
  Subsequent
  Election to Delay or Change Form of Payment

  	
  10

  
	
  6.3

  	
  Lump-Sum
  Distribution Timing

  	
  11

  
	
  6.4

  	
  Installment
  Amounts

  	
  11

  
	
  6.5

  	
  Unforeseeable
  Emergency Distributions

  	
  11

  
	
  6.6

  	
  Scheduled
  In-Service Distribution

  	
  11

  
	
  6.7

  	
  Death

  	
  12

  
	
  6.8

  	
  Notice
  to Trustee

  	
  13

  
	
  6.9

  	
  Time
  of Distribution

  	
  13

  
	
  6.10

  	
  Limitation
  on Distributions to Covered Employees Prior to a Change of Control

  	
  13

  
	
  6.11

  	
  Domestic
  Relations Order Distributions

  	
  13

  
	
  6.12

  	
  Conflicts
  of Interest and Ethics Rules Distributions

  	
  13

  
	
  6.13

  	
  FICA
  and Related Income Tax Distribution

  	
  13

  

 

i

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  6.14

  	
  State,
  Local and Foreign Tax Distribution

  	
  13

  
	
  6.15

  	
  Code
  Section 409A Distribution

  	
  14

  
	
  6.16

  	
  Tax
  Withholding

  	
  14

  
	
  6.17

  	
  Special
  2008 Election

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII Change of Control

  	
  14

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  No New
  Participants Following Change of Control

  	
  14

  
	
  7.2

  	
  Discretionary
  Termination and Accelerated Plan Distributions 30 Days Prior to or Within 12
  Months Following a Change in Control

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII Termination Due to Corporate Dissolution or Pursuant to Bankruptcy Court
  Approval

  	
  14

  
	
   

  	
   

  
	
  8.1

  	
  Corporate
  Dissolution

  	
  14

  
	
  8.2

  	
  Bankruptcy
  Court Approval

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX Amendment and Termination

  	
  15

  
	
   

  	
   

  
	
  9.1

  	
  Amendment
  by Employer

  	
  15

  
	
  9.2

  	
  Retroactive
  Amendments

  	
  15

  
	
  9.3

  	
  Plan
  Deferral Termination

  	
  15

  
	
  9.4

  	
  Distribution
  upon Certain Plan Terminations

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X The Trust

  	
  15

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Establishment
  of Trust

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XI Miscellaneous

  	
  16

  
	
   

  	
   

  
	
  11.1

  	
  Limitation
  of Rights

  	
  16

  
	
  11.2

  	
  Nontransferability;
  Domestic Relations Orders

  	
  16

  
	
  11.3

  	
  Facility
  of Payment

  	
  16

  
	
  11.4

  	
  Information
  between Employer and Trustee

  	
  16

  
	
  11.5

  	
  Notices

  	
  16

  
	
  11.6

  	
  Governing
  Law

  	
  17

  
	
  11.7

  	
  No
  Guarantees Regarding Tax Treatment; Disclaimer

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XII Plan Administration

  	
  17

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Powers
  and responsibilities of the Administrator

  	
  17

  
	
  12.2

  	
  Nondiscriminatory
  Exercise of Authority

  	
  18

  
	
  12.3

  	
  Claims
  and Review Procedures

  	
  18

  
	
  12.4

  	
  Exhaustion
  of Claims Procedure and Right to Bring Legal Claim

  	
  21

  
	
  12.5

  	
  Plan’s Administrative Costs

  	
  21

  

 

ii

 

ARTICLE I

 

Definitions

 

1.1           Definitions.  Wherever used herein, the following terms have
the meanings set forth below, unless a different meaning is clearly required by
the context:

 

(a)           “Account” means an account established on the
books of the Employer for the purpose of recording amounts credited on behalf
of a Participant and any expenses, gains or losses included thereon.

 

(b)           “Administrator” means the Employer, or the
Committee, if one has been designated by such Employer.

 

(c)           “Bankruptcy Court Approval” means the approval
of a bankruptcy court pursuant to 11 U.S.C. § 503(b)(1)(A).

 

(d)           “Beneficiary” means the person or persons
entitled under Section 6.7 to receive benefits under the Plan upon the
death of a Participant.

 

(e)           “Change of Control Event” means a change in
ownership or effective control of the Company or in the ownership of a
substantial portion of the Company’s assets, as defined under Code Section 409A.

 

(f)            “Code” means the Internal Revenue Code of 1986,
as amended from time to time.

 

(g)           “Code Section 409A” means Code Section 409A
and the proposed or final (as applicable) Treasury regulations and other
official guidance promulgated thereunder.

 

(h)           “Code Section 409A Distribution” means a
distribution pursuant to Section 6.15 hereof.

 

(i)            “Committee” means the Deferred Compensation
Committee composed of three or more individuals appointed by the Compensation
Committee of the Board of Directors of the Employer, or following a Change of
Control, appointed by the Committee, to function as the Administrator.  Once appointed, the Deferred Compensation
Committee shall interpret and administer this Plan and take such other actions
as may be specified herein.

 

(j)            “Company” means the Employer and any of its
Subsidiaries.

 

(k)           “Compensation” means (i) with respect to
Eligible Employees, base salary, commissions, variable compensation plan
bonuses, and, to the extent that they qualify as Sales Commissions under Code Section 409A,
sales commission plan bonuses and sales incentive bonuses, including amounts
that are otherwise excludable from the gross income of the Participant

 

1

 

under a salary reduction
agreement by reason of the application of Sections 125 or 402(a)(8) of the
Code, and (ii) with respect to Outside Directors, all cash retainers and
cash meeting fees, excluding expense reimbursements.  Compensation does not include any severance
payments or benefits.

 

(l)            “Corporate Dissolution” means a dissolution of
the Company that is taxed under Code Section 331.

 

(m)          “Deferral Contributions” means, for each
Participant, the amount deferred pursuant to Section 3.1 hereof.

 

(n)           “Disability” means the Participant (i) is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than
twelve (12) months, or (ii) is, by reason of any medically determinable
physical or mental impairment which can be expected to last for a continuous
period of not less than twelve (12) months, receiving income replacement
benefits for a period of not less than three (3) months under an accident
and health plan covering Company employees.

 

(o)           “Domestic Relations Order” means a court order
that qualifies as a domestic relations order under Code Section 414(p)(1)(B).

 

(p)           “Eligible Participant” means (i) any
employee with an annual base salary in excess of the amount specified by the
Committee, (ii) any Outside Director, and (iii) any other employees
designated as eligible by the Committee.

 

(q)           “Employee” means any employee of the Employer.

 

(r)            “Employer” means Coherent, Inc. and any
successors and assigns unless otherwise provided herein.

 

(s)           “Entry Date” means (i) January 1
(which is also the Entry Date for employees who are promoted or given a base
salary increase so as to become an Eligible Participant for the first time and
for re-hires who were previously Eligible Participants), (ii) for new
employees who are Eligible Participants (including re-hires who were not
previously Eligible Participants), the first day of the next payroll period
commencing after the next paydate following receipt of their deferral election
by the Company; provided, however, that such new employee’s deferral election
must be submitted no later than 30 days following their becoming newly
eligible, or (iii) for Non-Employee Directors who are Eligible
Participants for the first time, the first day of the next Company fiscal
quarter following their becoming a Non-Employee Director; provided, however,
that such new Non-Employee Director’s deferral election must be submitted no
later than 30 days following their becoming a newly eligible Non-Employee Director.

 

(t)            “ERISA” means the Employee Retirement Income
Security Act of 1974, as from time to time amended.

 

2

 

(u)           “FICA Amount” means the aggregate Federal
Insurance Contributions Act (FICA) tax imposed on any Account under Code
Sections 3101, 3121(a) and 3121(v)(2), as applicable and any corresponding
tax withholding provisions of applicable state, local or foreign tax laws as a
result of the payment of the FICA amount.

 

(v)           “401(k) Plan”
means the Coherent, Inc. Employee Retirement and Investment Plan.

 

(w)          “Outside Director” means a member of the Board
whom is not an Employee.

 

(x)            “Participant” means any Employee or Outside
Director who participates in the Plan in accordance with Article 2 hereof.

 

(y)           “Plan” means this Coherent, Inc. 2005
Deferred Compensation Plan.

 

(z)            “Plan Year” means the 12-consecutive month
period beginning January 1 and ending December 31.

 

(aa)         “Prior Plans” means the Coherent, Inc.
1995 Deferred Compensation Plan, the Coherent, Inc. Supplementary
Retirement Plan and the Director Deferred Compensation Plan.

 

(bb)         “Retirement” means a Participant’s Separation
from Service after attaining 50 years of age.

 

(cc)         “Sales Commission”   means “sales commission compensation” as such
term is defined in Treasury Regulation §1.409A-2(a)(12)(i).

 

(dd)         “Separation From Service” means a separation
from service as defined under Code Section 409A.  For this purpose, the employment relationship
will be treated as continuing intact while the Participant is on military
leave, sick leave or other bona fide leave of absence, except that if the
period of such leave exceeds six (6) months and the Participant does not
retain a right to re-employment under an applicable statute or by contract,
then the employment relationship will be deemed to have terminated on the first
day immediately following such six-month period.  A leave of absence constitutes a bona fide
leave of absence only if there is a reasonable expectation that the Participant
will return to perform services for the Company.

 

(ee)         “Specified Employee” means a Participant who,
as of the date of his or her Separation from Service, is a key employee of the
Company.  For this purpose, a Participant
is a key employee if he or she meets the requirements of Code section
416(i)(1)(A)(i), (ii) or (iii) (disregarding Code section 416(i)(5)).  As of 2008, this generally includes (i) the
top fifty (50) Company officers with compensation greater than $150,000 per
year, (ii) a 5% owner of the Company, or (iii) a 1% owner of the
Company with compensation greater than $150,000 per year.  For purposes of the preceding sentence, “compensation”
means compensation as such term is defined in the 401(k) Plan for Code
section 415 purposes.  The determination
of who is a Specified Employee shall be made on December 31 of each year
and shall include any employee who qualified

 

3

 

as a Specified Employee
at any time during the preceding twelve-month period.  Once so determined, the list of Specified
Employees shall be initially effective on the following April 1 and shall
remain effective for twelve months (i.e., through March 31 of the
following year).

 

(ff)           “Subsidiary” means a subsidiary of the
Employer, as such term is defined in Code section 424(f).

 

(gg)         “Trading Day” means a day upon which the major
U.S. national stock exchanges are open for trading.

 

(hh)         “Trust” means the trust fund established
pursuant to the terms of the Plan.

 

(ii)           “Trustee” means the corporation or individuals
named in the agreement establishing the Trust and such successor and/or
additional trustees as may be named in accordance with the Trust Agreement.

 

(jj)           “Unforeseeable Emergency” means (a) a
severe financial hardship to a Participant resulting from an illness or
accident of the Participant or his or her spouse, beneficiary or dependent (as
defined in section 152 of the Code, but without regard to subsections (b)(1),
(b)(2) and (d)(1)(B) thereof), (b) loss of the Participant’s
property due to casualty (including the need to rebuild a home following damage
to a home not otherwise covered by insurance, for example, not as a result of a
natural disaster), or (c) other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the
Participant.

 

(kk)         “Year of Service” means a period of 12
consecutive months during which the Participant is employed by the Employer or
serves as a Board member.  Service
commences on the date the Participant first commences service for the Employer
and ends on the date that the Participant quits, retires, is discharged, is
determined to be Totally Disabled or dies.

 

(ll)           “Valuation Date” means (i) for
re-allocations of amounts previously deferred, the date of re-allocation, or, if
that date is not a Trading Day, then the next Trading Day, (ii) for
distributions hereunder, the last day of the preceding month, or, if that day
is not a Trading Day, then the most recently concluded Trading Day,  and (iii) for allocations of deferrals, the next
Trading Day following the payday to which the deferral relates.

 

ARTICLE II

 

Participation

 

2.1           Date of Participation.  Each Eligible Participant shall be become a
Participant as of the Entry Date next following their timely filing of an
election to defer Compensation in accordance with Section 3.1.

 

2.2           Resumption of Participation Following Return to
Service.  If
a Participant ceases to be an Employee or Outside Director and thereafter
returns to the service of the Employer he or she

 

4

 

will again become
a Participant as of the Entry Date following the date on which he or she
re-commences service with the Employer, provided he or she is an Eligible
Participant and has timely filed an election to defer Compensation pursuant to Section 3.1.  Any scheduled Plan payments the Participant
has been receiving shall continue to be paid as previously scheduled.

 

2.3           Change in Employment Status.  If any Employee Participant
continues in the employ of the Employer but ceases to be an Eligible
Participant, the individual shall continue to be a Participant until the entire
amount of his benefit is distributed; provided, however, the individual shall
not be entitled to make Deferral Contributions during subsequent Plan Years in
which he or she is not an Eligible Participant. 
In the event an Employee Participant ceases to be an Eligible
Participant, if such individual has not undergone a Separation From Service, he
or she shall continue to make Deferral Contributions under the Plan through the
end of the Plan Year in which he or she ceases to be an Eligible
Participant.  Thereafter, such individual
shall not make any further Compensation deferral contributions to the Plan
unless or until he or she again becomes an Eligible Participant.  In the event that the individual subsequently
again becomes an Eligible Participant, the individual may resume full
participation on the next Entry Date in accordance with Section 3.1.

 

ARTICLE
III

 

Contributions

 

3.1           Deferral Contributions.

 

(a)           Annual Open Enrollment.  Prior to the
beginning of each Plan Year, each Eligible Participant (including newly
eligible Eligible Participants who were formerly Eligible Participants) may
elect to execute a compensation reduction agreement with the Employer to reduce
his Compensation by a specified percentage not exceeding, (i) for Eligible
Employees, 75% of their base salary and 100% of their other Compensation, and (ii) for
Outside Directors, 100% of their Compensation, equal in either case to whole
number multiples of one (1) percent, and in a scheduled amount of not less
than $10,000.  Such agreement shall
become irrevocable as of the last day of the calendar year in which it is made
and shall be effective, with respect to Eligible Employees, with the first
payday in the following Plan Year and with respect to Outside Directors, with
the first day of service in the following Plan Year.  Except with respect to payroll periods that
cross-over from one calendar year to the next, the election shall not be
effective with respect to Compensation relating to services already
performed.  With respect to Compensation
that qualifies as a Sales Commission, the services relating to such
Compensation shall be deemed performed in the year in which the customer pays
the Company.  An election once made will
remain in effect for paydays falling in the duration of the Plan Year.  After the beginning of a Plan Year, a
Participant will not be permitted to change, terminate or revoke his or her
Compensation Deferral election for such Plan Year, except to the limited extent
provided in Section 3.4. Amounts credited to a Participant’s Account prior
to the effective date of any new election will not be affected and will be paid
in accordance with that prior election.

 

5

 

(b)           Newly Eligible Participants. 
The same rules as in Section 3.1(a) above shall also
apply to individuals who become Eligible Participants for the first time,
except (i) such new Eligible Participants shall have no more than thirty
(30) days following their becoming eligible for the first time under the Plan
or any other non-qualified deferred compensation plans of the Employer required
to be aggregated with the Plan in which to elect to have their Compensation
reduced, and (ii) the agreement shall become effective, with respect to
Eligible Employees, with the first full payroll period commencing following the
receipt of their election by the Company and with respect to Outside Directors,
with the first day of service following the receipt of their election by the
Company.  Newly eligible Outside
Directors may not, however, defer quarterly fees payable on account of the
Company’s fiscal quarter in which the election is made.

 

(c)           Variable Compensation Plan, Sales Commission Plan and
Sales Incentive Bonuses Payable in a Subsequent Year. 
If a Variable Compensation Plan, Sales Commission Plan or Sales
Incentive Bonus (so long as such Sales Commission Plan and Sales Incentive
Bonus qualifies as Sales Commissions under Section 409A) is earned in one
calendar year and would normally be paid in the first quarter of the ensuing
calendar year, it shall be deferred and distributed based upon the election
made by the Eligible Participant in the open enrollment period in the year
prior to the year in which it was earned. 
For newly Eligible Participants, any such Variable Compensation Plan,
Sales Commission Plan or Sales Incentive Bonus shall be deferred and
distributed based upon their initial election made with respect to the year in
which it was earned (or the year in which it was paid to the Company, with
respect to Sales Commissions); provided, however, that such election may apply
to no more than the total amount of such compensation multiplied by the ratio
of the number of days remaining in the applicable performance period after such
election becomes irrevocable over the total number of days in the applicable
performance period.

 

EXAMPLE:  In the
December, 2005 open enrollment period, an Eligible Participant elects to defer
75% of her Sales Incentive Bonus for 2006. 
The 2006 Sales Incentive Bonus is normally paid in March, 2007.  The deferral and distribution of her 2006
Sales Incentive Bonus otherwise payable in March 2007 are controlled by
her election made in the 2005 open enrollment period.

 

(d)           Year-End Cross-Over Payroll Periods. 
Paydays relating to periods of service that cross-over the calendar year
end shall be covered by the Participant’s deferral election in effect for the
later year, consistently with the default rules under Treasury Regulation
§1.409A-2(a)(13).

 

(e)           Limitation on Deferral Changes. 
The dollar amount of any Plan deferrals shall not be reduced or
increased during any Plan Year by virtue of any Participant election to
increase, decrease or terminate his or her rate of deferral in any other
employee benefit plan, including the Company’s employee stock purchase plan;
except as permitted by Code Section 409A with respect to changes in
deferral elections under the Company’s 401(k) Employee Savings Plan and
Code section 125 flexible benefits plan (or as otherwise permitted under Code Section 409A).

 

3.2           Accounts.  The Employer shall credit an amount to the
Account maintained on behalf of the Participant corresponding to the amount of
said reduction.  Under no circumstances
may an election to defer Compensation be adopted retroactively.

 

6

 

3.3           Company Contributions.

 

(a)           Discretionary Contributions. 
The Company may, in its sole discretion, make a contribution to a
Participant’s Account, subject to such vesting and distribution conditions and
limitations as the Company, in its sole discretion, shall impose.  To the extent such Company contributions do
not vest, corresponding debits will be made to a Participant’s Account,
including any earnings on such forfeited amounts.

 

(b)            Annual Contribution.  Until such
time as the Company determines otherwise, the Company shall make an annual
contribution on behalf of any Employee with a Plan Account who also makes a
deferral for a given year into the Employer’s 401(k) Plan.  The amount of the annual contribution shall
be a percentage of the Participant’s compensation, as such term is defined in Section 2.12
of the Employer’s 401(k) Plan, without regard to Section 2.12(b) thereof
(“401(k) Compensation”) equal to the annual matching contribution
percentage in effect, if any, on the last day of the year under the Employer’s
401(k) Plan (e.g., 4% for 2009), minus the maximum amount permitted to be
contributed to a participant’s account in the Employer’s 401(k) Plan as an
employer matching contribution, as limited by virtue of Code section
401(a)(17), for such year.  The annual
contribution shall be credited to the Participant’s Account in the calendar
year following the year in which the 401(k) Plan deferrals were made.

 

EXAMPLE:  In 2009,
Employee Favre defers part of his compensation into the Employer’s 401(k) Plan.  Employee Favre’s 2009 401(k) Compensation
is $300,000.  Because of the Code section
401(a)(17) limit, the Employer can only make a maximum matching contribution of
$9,800 into Employee Favre’s 401(k) Plan account in 2009 (the 2009 Code
section 401(a)(17) limit of $245,000 x 4%). 
Accordingly, Employee Favre receives a non-discretionary credit in the
Plan equal to $2,200 [(4% x $300,000) - $9,800] in 2010.  Employee Favre will receive this credit even
if the amount of the employer match into his 401(k) Plan account for 2009
is less than $9,800 by virtue of his deferring less than $9,800 into the 401(k) Plan
in 2009.

 

3.4                                 Cancellation of Elections Due to 401(k) Hardship
Withdrawal or Unforeseeable Emergency Distribution.

 

(a)           401(k) Hardship Withdrawal. 
A Participant’s deferral election shall be automatically cancelled in
the event the Participant obtains a hardship distribution from the Employer’s
401(k) Plan pursuant to Treasury Regulation §1.401(k)-1(d)(3).  The Participant, if still an Eligible Participant,
may re-enroll in the Plan in the next open enrollment period.

 

(b)           Unforeseeable Emergency Distribution. 
A Participant’s deferral election shall be automatically cancelled in
the event the Participant obtains an unforeseeable emergency distribution from
the Plan pursuant to Section 6.5 hereof. 
The Participant, if still an Eligible Participant, may re-enroll in the
Plan in the next open enrollment period.

 

7

 

(c)           Special 2005 Elections.

 

(i)           In accordance with Internal Revenue Service Notice
2005-1, Q&A-21, Eligible Participants may make a deferral election with
respect to 2005 Compensation that has not been paid or become payable at the
time of election, and superseding their prior election, if any, with respect to
such Compensation, on or before March 15, 2005, or such earlier time as is
determined by the Administrator (or its designee) in its sole discretion.

 

(ii)          In accordance with Internal Revenue Service Notice
2005-1 and the proposed Treasury regulations promulgated under Code Section 409A,
and notwithstanding any contrary provision of the Plan, a Participant may elect
to rescind or reduce his or her 2005 Compensation deferral election made under Section 3.1
by filing a form specified by the Administrator (or its designee) with the
Administrator (or its designee) no later than December 31, 2005, or such
earlier time as is determined by the Administrator (or its designee), in its
sole discretion.  The amount subject to
such election shall be distributed to the Participant in a single lump sum
payment of cash (or its equivalent) in calendar year 2005 or, if later, the
Participant’s taxable year in which the amount becomes earned and vested.

 

ARTICLE IV

 

Participants’ Accounts

 

4.1           Individual Accounts.  The Administrator will establish and maintain
an Account for each Participant which will reflect Deferral Contributions
credited to the Account on behalf of the Participant with earnings, expenses,
gains and losses credited thereto, attributable to the investments made with
the amounts in the Participant’s Account. 
Participants will be furnished statements of their Account values at
least once each Plan Year.

 

4.2           Accounting for Distributions.  As of any date of a distribution
to a Participant or a Beneficiary hereunder, the distribution to the
Participant or to the Participant’s Beneficiary(ies) shall be charged to the
Participant’s Account.

 

4.3           Separate Accounts.  A separate account under the Plan shall
established and maintained to reflect the Account for each Participant with
subaccounts to show separately the earnings, expenses, gains and losses
credited or debited to that Account.

 

ARTICLE V

 

Investment of Contributions

 

5.1           Manner of Investment.  All amounts credited to the Accounts of Participants
shall be treated as though invested only in eligible investments selected by
the Employer.

 

8

 

5.2           Investment Decisions.

 

(a)           Accounts shall be treated as invested as directed by
the Participant among the eligible investment alternatives selected by the
Employer.  Participants may change their
investment allocations as specified by the Committee.

 

(b)           All dividends, interest, gains and distributions of
any nature earned in respect of an investment alternative in which the Account
is treated as investing shall be credited to the Account in an amount equal to
the net increase or decrease in the net asset value of each investment option
since the preceding Valuation Date.

 

ARTICLE VI

 

Distributions

 

6.1           Certain Distributions to Participants and
Beneficiaries.

 

(a)           Earliest Distributions

 

(i)           Regular Participants.  Except as
permitted by the Plan and Code Section 409A in connection with a Change of
Control Event, a Corporate Dissolution, pursuant to a Bankruptcy Court
Approval, a conflicts of interest or ethics rule distribution under Section 6.12,
a FICA and related income tax distribution under Section 6.13, a state,
local or foreign tax distribution under Section 6.14, or a Code Section 409A
Distribution, in no event may the account of a Participant who is not a
Specified Employee be distributed earlier than (i) the Participant’s
Separation From Service, (ii) the Participant’s Disability, (iii) the
Participant’s death, (iv) a specified time under Section 6.6
hereunder, (v) a Change in Control, (vi) the occurrence of an
Unforeseeable Emergency, or (vii) as required to satisfy a Domestic
Relations Order.

 

(ii)          Specified Employee Participants. 
Except as permitted by the Plan and Code Section 409A in connection
with a Change of Control Event, a Corporate Dissolution, pursuant to a
Bankruptcy Court Approval, a conflicts of interest or ethics rules distribution
under Section 6.12, a FICA and related income tax distribution under Section 6.13,
a state, local or foreign tax distribution under Section 6.14, or a Code Section 409A
Distribution, in no event may a Specified Employee’s account be distributed
earlier than (i) six (6) months following the Specified Employee’s
Separation From Service (or if earlier, the Specified Employee’s death), (ii) the
Specified Employee’s Disability, (iii) the Specified Employee’s death, (iv) a
specified time under Section 6.6 hereunder, (v) a Change in Control, (vi) the
occurrence of an Unforeseeable Emergency, or (vii) as required to satisfy
a Domestic Relations Order.  In the event
a Specified Employee’s Plan distributions are delayed due to the six-month
delay requirement, the amounts otherwise payable to the Specified Employee
during such period of delay shall be paid on a date that is at least six months
and one day following Separation From Service, but no later than the end of the
calendar year in which such six month and one day period ends (or, if earlier,
within 60 days following the death of the Specified Employee).  The Participant’s other scheduled
distributions, if any, shall not be affected by the period of delay.

 

9

 

(b)           Lump-Sum or Installment Payment Initial Elections Upon
Retirement or Disability.  At the same time their initial
elections for any Plan Year are made, Participants shall elect to have their
Compensation deferrals for that Plan Year paid out, either following their
Retirement or their Disability, in one of the following forms of payment:

 

(i)            Lump sum cash payment; or

 

(ii)           Two to fifteen substantially equal annual
installments.

 

In no event shall any
Plan payments be made more than sixteen (16) years following a Participant’s
Separation From Service.  Any payment
scheduled to be made more than sixteen (16) years following a Participant’s
Separation From Service shall be paid with the last scheduled payment with the
sixteen (16) year period.

 

(c)           Other Plan Payments.  All Plan
payments not specified in Section 6.1(b), except for certain scheduled
in-service withdrawals as specified in Section 6.6, shall be made in the
form of a lump-sum payment.

 

(d)           Installment Payments Treated as Single Payments. 
All installment payments under the Plan are considered a single payment
for purposes of complying with Code Section 409A.

 

6.2           Subsequent Election to Delay or Change Form of
Payment.

 

(i)           A Participant’s initial election to receive a
Retirement, Disability or in-service distribution may be delayed or the form of
payment changed by filing an election, in the form required by the
Administrator, at least one year in advance of the date upon which any
distribution would otherwise have been made pursuant to the prior
election.  Such election shall not be
effective for a period of one (1) year, and must delay the initial payment
by a period of at least five (5) years, but may not result in the initial
payment occurring more than then ten (10) years following Retirement or
Disability.  In the absence of such
timely filed election, the value of such Participant’s Account shall be
distributed in accordance with their previously timely filed Account election.

 

(ii)          Because Plan installment payments are considered a
single payment for purposes of Code Section 409A, a subsequent election
may accelerate the method of distribution. 
For example, if a Participant initially elected to receive Retirement or
Disability payments in five annual installments following her Separation From
Service, she could make a timely election to instead take a lump-sum
distribution five years following her Separation From Service.  Moreover, a subsequent election may change a
lump-sum distribution to an installment election, so long as, in either case,
the initial payment is delayed for a period of at least five (5) years,
the election is not effective for one (1) year and is made at least one (1) year
in advance of the date upon which the first distribution would have otherwise
been made.

 

(iii)         Because installment payments are treated as a single
payment, any subsequent election must apply to all of the installment
payments.  For example, if a Participant

 

10

 

initially elected to
receive Retirement or Disability payments in five annual installments following
her Separation From Service, the Participant may not elect to defer the 1st, 2d, 3rd and 5th installments only, but must also defer the 4th installment.

 

6.3           Lump-Sum Distribution Timing.   
Except as elected otherwise for Plan Years prior to the 2009 Plan Year,
for Participants receiving a lump-sum distribution, the value of their Account
(or portion thereof specified in the Participant’s election) shall be paid in a
lump-sum cash payment in the first February following their Separation
From Service, or, for Specified Employees (or their estates or beneficiaries),
if later, at least six months and one day after the date upon which they incur
a Separation From Service, but no later than the end of the calendar year in
which such six month and one day period ends or, if earlier, upon their death.

 

6.4           Installment Amounts.  For purposes
of this Section 6, installment payments shall be determined by dividing
the value of the Participant’s Account at the time of such installment by the
number of payments remaining.  Except as
elected otherwise for Plan Years prior to the 2009 Plan Year, installment
payments other than in-service distributions shall commence in the next February following
the triggering distribution event, or, for Specified Employees undergoing a
Separation From Service triggering event, as soon as is practicable at least
six months and one day after the date upon which they incur a Separation From
Service, but no later than the end of the calendar year in which such six month
and one day period ends.  However, in no
event may installment payments be made over a period exceeding fourteen years
following the first installment, even if the payments are postponed pursuant to
an election made under Section 6.2 hereof. 
In-service distributions will commence in the February of the
specified year.

 

6.5           Unforeseeable Emergency Distributions.  With the consent of the
Administrator, a Participant may withdraw up to one hundred percent (100%) of
his or her Account as may be required to meet a sudden Unforeseeable Emergency
of the Participant.  Such distribution
may only be made if the amounts distributed with respect to an Unforeseeable
Emergency may not exceed the amounts necessary to satisfy such emergency plus
amounts necessary to pay taxes reasonably anticipated as a result of the
distribution, after taking into account the extent to which such hardship is or
may be relieved through reimbursement or compensation by insurance or otherwise
or by liquidation of the Participant’s assets (to the extent the liquidation of
such assets would not itself cause severe financial hardship).

 

6.6           Scheduled In-Service Distribution.  A Participant may elect, as
provided in his or her Participant deferral election, to receive one or more
scheduled in-service (i.e., commencing while employed by the Company, or, for
outside director Participants, while serving as a Board member) distributions
relating to the Plan Year to which the deferral election relates.  Such in-service distributions may only be
scheduled for years at least two full calendar years following the end of the
calendar year to which the deferrals relate. Participants may elect to receive
in-service distributions of deferrals in annual installments of up to five
years.

 

EXAMPLE:  In the December, 2005 open enrollment period,
an Eligible Participant elects to receive an in-service distribution of 50% of
her 2006 plan deferrals, plus earnings and losses thereon, in 2009.  This includes a variable compensation plan
bonus paid in 2007 but

 

11

 

earned in 2006.  Because the scheduled
in-service distribution is at least two full calendar years following the end
of 2006 (the end of the year to which the deferrals relate), the election is
permissible.

 

Each scheduled in-service
distribution may only be postponed in accordance with Section 6.2
hereof.  In the event a Participant
incurs a Separation From Service prior to receiving the first scheduled
payment, then the scheduled in-service distribution election shall be without
further force and effect and the applicable Separation From Service
distribution provisions of the Plan and the Participant’s deferral election
shall control.  Similarly, in the event a
Participant incurs a Separation From Service after receiving the first
scheduled in-service distribution payment, and if the Separation From Service
is not pursuant to Retirement, Disability or death, then any scheduled future
installments of the in-service distribution election shall be without further
force and effect and the applicable Separation From Service distribution provisions
of the Plan and the Participant’s deferral election shall control.  If, however, a Participant incurs a
Separation From Service due to his or her Retirement, Disability or death after
receiving their first scheduled in-service distribution payment, then the
scheduled in-service distributions will be made according to their schedule and
will take precedence over the Participant’s other deferral elections; provided,
however, that the first scheduled payment following the Separation From Service
for a Specified Employee shall be paid on a date that is at least six months
and one day following Separation From Service, but no later than the end of the
calendar year in which such six month and one day period ends (or, if earlier,
upon the death of the Specified Employee).

 

6.7           Death.  Except with respect to certain in-service
distributions as provided below, if a Participant dies, his or her designated
Beneficiary or Beneficiaries will receive the balance of his or her Account in
a lump-sum.  Moreover, if such death occurs
prior to a Separation From Service, the Account shall vest 100% as to any
previously unvested Account balance. 
Distribution to the Beneficiary or Beneficiaries will be made as soon as
is practicable in the year following the year of death.

 

A Participant may
designate a Beneficiary or Beneficiaries, or change any prior designation of
Beneficiary or Beneficiaries by giving notice to the Administrator on a form
designated by the Administrator (spousal consent to such change may be required
on the form designated by the Administrator). 
If more than one person is designated as the Beneficiary, their
respective interests shall be as indicated on the designation form.

 

If upon the death of the
Participant there is, in the opinion of the Administrator, no designated
Beneficiary for part or all of the Participant’s Account, the amount as to
which there is no designated Beneficiary will be paid to his or her surviving
spouse or, if none, to his or her estate (such spouse or estate shall be deemed
to be the Beneficiary for purposes of the Plan).

 

12

 

6.8           Notice to Trustee.  The Administrator will notify the Trustee in
writing whenever any Participant or Beneficiary is entitled to receive benefits
under the Plan.  The Administrator’s
notice shall indicate the form, amount and frequency of benefits that such
Participant or Beneficiary shall receive.

 

6.9           Time of Distribution.  In no event will distribution to a Participant
be made later than the date specified by the Participant in his or her election
to defer Compensation; provided, however, that if a Participant is a Specified
Employee, his or her election shall be subject to the six (6) month
distribution delay requirements of the Plan and Code Section 409A.

 

6.10         Limitation on Distributions to Covered Employees Prior
to a Change of Control.  Notwithstanding any other provision of this Article VI, in
the event that, prior to a Change of Control, the Participant is a “covered
employee” as that term is defined in Section 162(m)(3) of the Code,
or would be a covered employee if his or her Account were distributed in
accordance with his or her election, and the Administrator reasonably
anticipates that Participant’s scheduled Plan distributions would cause the Employer
to forego an income tax deduction with respect to such distribution by virtue
of Code Section 162(m), then such Participant’s distributions shall be
delayed until the earlier of (i) the earliest date at which the
Administrator reasonably anticipates that the Employer’s deduction related to
the distribution will not be limited by virtue of Code Section 162(m), or (ii) the
calendar year in which the Participant undergoes a Separation From Service,
subject to complying with any six (6) month distribution delay
requirements of this Plan and Code Section 409A.

 

6.11         Domestic Relations Order Distributions.  The Committee, in its sole
discretion, may accelerate a payment (or payments) make such payments to an
individual other than the Participant as necessary to comply with the terms of
a Domestic Relations Order.

 

6.12         Conflicts of Interest and Ethics Rules Distributions.  The Committee, in its sole
discretion, may accelerate a payment (or payments) as necessary (i) for
any U.S. federal officer or employee in the executive branch of the U.S.
federal government to comply with an ethics agreement with the U.S. federal
government, or (ii) to avoid violating a U.S. federal, state, local or
foreign ethics law or conflicts of interest law, as specified under Code Section 409A.

 

6.13         FICA and Related Income Tax Distribution.  The Committee, in its sole
discretion, may permit a distribution from a Participant’s Account sufficient
to pay any FICA Amounts due upon the vesting of any Company contribution as
well as to satisfy the income tax withholding requirements with respect to the
FICA Amount and income tax payments under this Section 6.13.  In no event may the total payment under this Section 6.13
exceed the aggregate of the FICA Amount and the related income tax withholding.

 

6.14         State, Local and Foreign Tax Distribution.  The Committee, in its sole
discretion, may permit a distribution from a Participant’s Account sufficient
to pay any state, local or foreign tax obligations arising from participation
in the Plan that apply to an amount deferred under the Plan prior to the
scheduled distribution of such amount. 
In the event the Committee exercises such discretion, the Committee may
also permit a distribution sufficient to pay related income tax

 

13

 

withholding in
accordance with Code Section 409A. 
In no event may the total payment under this Section 6.14 exceed
the aggregate amount of such taxes due.

 

6.15         Code Section 409A Distribution.  In the event that the Plan fails
to satisfy the requirements of Code Section 409A, then the Committee, in
its sole discretion, may permit a distribution from a Participant’s Account up
to the maximum amount required to be included in income as a result of the
failure to comply with Code Section 409A.

 

6.16         Tax Withholding.  Payments under this Article VI shall be
subject to all applicable withholding requirements for state and federal income
taxes and to any other federal, state or local taxes that may be applicable to
such payments.

 

6.17         Special 2008 Election. 
Notwithstanding other Plan provisions, pursuant to and in accordance
with IRS Notice 2007-86, in the 2008 Plan Year, the Committee had the
discretion to permit Participants to change the time and form or payment of
Accounts with respect to amounts credited on and after January 1, 2005 so
long as the change did not (i) accelerate payment of amounts that would
otherwise be payable in a future year into the year of the new election, and (ii) apply
to amounts that would otherwise be paid in the year of the election.

 

ARTICLE VII

 

Change of Control

 

7.1           No New Participants Following Change of Control.  No individual may commence
participation in the Plan following a Change of Control Event.

 

7.2           Discretionary Termination and Accelerated Plan
Distributions 30 Days Prior to or Within 12 Months Following a Change in
Control. 
The Administrator, in its sole discretion, may terminate the Plan and
accelerate all scheduled Plan distributions within 30 days prior to or 12
months following a Change in Control Event by means of an irrevocable election;
provided that such termination and distribution acceleration complies with the
requirements of Code Section 409A.

 

ARTICLE VIII

 

Termination Due to Corporate
Dissolution or Pursuant to Bankruptcy Court Approval

 

8.1           Corporate Dissolution.  The Administrator, in its sole discretion, may
terminate the Plan and accelerate all scheduled Plan distributions within 12
months following a Corporate Dissolution; provided that such termination and
distribution acceleration complies with the requirements of Code Section 409A.

 

14

 

8.2           Bankruptcy Court Approval.  The Administrator, in its sole
discretion, may terminate the Plan and accelerate all scheduled Plan
distributions pursuant to Bankruptcy Court Approval; provided that such
termination and distribution acceleration complies with the requirements of
Code Section 409A.

 

ARTICLE IX

 

Amendment and Termination

 

9.1           Amendment by Employer.  The Employer reserves the authority to amend
the Plan.  Any such change
notwithstanding, no Participant’s Account shall be reduced by such change below
the amount to which the Participant would have been entitled if he had
voluntarily left the employ of the Employer immediately prior to the date of
the change.  The Employer may from time
to time make any amendment to the Plan that may be necessary to satisfy Code Section 409A
or ERISA.

 

9.2           Retroactive Amendments.  An amendment made by the Employer in
accordance with Section 9.1 may be made effective on a date prior to the
first day of the Plan Year in which it is adopted if such amendment is necessary
or appropriate to enable the Plan and Trust to satisfy the applicable
requirements of Code Section 409A or ERISA or to conform the Plan to any
change in federal law or to any regulations or rulings thereunder, so long as
such retroactive amendment is permitted by applicable law.

 

9.3           Plan Deferral Termination.  The Employer has adopted the Plan
with the intention and expectation that deferrals will be permitted
indefinitely.  However, the Employer has
no obligation to maintain the Plan for any length of time and may discontinue
future Compensation deferrals under the Plan in advance of any Plan Year by
written notice delivered to Eligible Participants without any liability for any
such discontinuance.

 

9.4           Distribution upon Certain Plan Terminations.  Upon termination of the Plan
other than pursuant to a Change of Control Event, Corporate Dissolution or
pursuant to a Bankruptcy Court Approval, no further Deferral Contributions or
Employer Contributions shall be made under the Plan, but Accounts of Participants
maintained under the Plan at the time of termination shall continue to be
governed by the terms of the Plan until paid out in accordance with the terms
of the Plan, Participants’ deferral elections and the requirements of Code Section 409A,
which latter shall take precedence over the terms of the Plan and Participants’
deferral elections in the event of any conflict.

 

ARTICLE
X

 

The
Trust

 

10.1         Establishment of Trust.  The Employer shall establish the Trust between
the Employer and the Trustee, in accordance with the terms and conditions as
set forth in a separate agreement, under which assets are held, administered
and managed, subject to the claims of the Employer’s creditors in the event of
the Employer’s insolvency, until paid to Participants and their

 

15

 

Beneficiaries as
specified in the Plan.  The Trust is
intended to be treated as a grantor trust under the Code, and the establishment
of the Trust is not intended to cause Participants to realize current income on
amounts contributed thereto.

 

ARTICLE XI

 

Miscellaneous

 

11.1         Limitation of Rights.  Neither the establishment of the Plan and the
Trust, nor any amendment thereof, nor the creation of any fund or account, nor
the payment of any benefits, will be construed as giving to any Participant or
other person any legal or equitable right against the Employer, Administrator
or Trustee, except as provided herein; and in no event will the terms of
employment or service of any Participant be modified or in any way affected
hereby

 

11.2         Nontransferability; Domestic Relations Orders.  The right of any Participant, any
Beneficiary, or any other person to the payment of any benefits under this Plan
shall not be assigned, transferred, pledged or encumbered; provided, however,
that a Deferral Account hereunder may be transferred to a Participant’s former
spouse pursuant to a Domestic Relations Order.

 

11.3         Facility of Payment.  In the event the Administrator determines, on
the basis of medical reports or other evidence satisfactory to the
Administrator, that the recipient of any benefit payments under the Plan is
incapable of handling his affairs by reason of minority, illness, infirmity or
other incapacity, the Administrator may direct the Trustee to disburse such
payments to a person or institution designated by a court which has
jurisdiction over such recipient or a person or institution otherwise having
the legal authority under State law for the care and control of such recipient.  The receipt by such person or institution of
any such payments therefore, and any such payment to the extent thereof, shall
discharge the liability of the Trust for the payment of benefits hereunder to
such recipient.

 

11.4         Information between Employer and Trustee.  The Employer agrees to furnish
the Trustee, and the Trustee agrees to furnish the Employer with such
information relating to the Plan and Trust as may be required by the other in
order to carry out their respective duties hereunder, including without
limitation information required under the Code or ERISA and any regulations
issued or forms adopted thereunder.

 

11.5         Notices.  Any notice or other communication in
connection with this Plan shall be deemed delivered in writing if addressed as
provided below and if either actually delivered at said address or, in the case
of a letter, three business days shall have elapsed after the same shall have
been deposited in the United States mails, first-class postage prepaid and
registered or certified:

 

(a)           If it is sent to the Employer or Administrator, it
will be at the address specified by the Employer;

 

16

 

(b)           If it is sent to the Trustee, it will be sent to the
address set forth in the Trust Agreement; or, in each case at such other
address as the addressee shall have specified by written notice delivered in
accordance with the foregoing to the addressor’s then effective notice address.

 

11.6         Governing Law.  The Plan will be construed, administered and
enforced according to ERISA, and to the extent not preempted thereby, the laws
of the state of California.

 

11.7         No Guarantees Regarding Tax Treatment; Disclaimer. 
Participants (or their Beneficiaries) will be completely responsible for
all taxes with respect to any benefits under the Plan.  The Administrator, the Board of Directors and
the Employer make no guarantees regarding the tax treatment to any person of
any deferrals or payments made under the Plan. 
The Plan is intended to comply with the provisions of Code Section 409A.  Neither the Employer nor
any of their employees shall have any liability to any Participant should the
Plan or its administration fail to comply with Code Section 409A.

 

ARTICLE XII

 

Plan Administration

 

12.1         Powers and responsibilities of the Administrator.  The Administrator has the full
power and the full responsibility to administer the Plan in all of its details,
subject, however, to the applicable requirements of ERISA.  The Administrator’s powers and
responsibilities include, but are not limited to, the following:

 

(a)           To make and enforce such rules and regulations as
it deems necessary or proper for the efficient administration of the Plan;

 

(b)           The discretionary authority to construe and interpret
the Plan, its interpretation thereof in good faith to be final and conclusive
on all persons claiming benefits under the Plan;

 

(c)           To decide all questions concerning the Plan and the
eligibility of any person to participate in the Plan;

 

(d)           To administer the claims and review procedures
specified in Section 12.3;

 

(e)           To compute the amount of benefits which will be
payable to any Participant, former Participant or Beneficiary in accordance
with the provisions of the Plan;

 

(f)            To determine the person or persons to whom such
benefits will be paid;

 

(g)           To authorize the payment of benefits;

 

(h)           To appoint such agents, counsel, accountants, and
consultants as may be required to assist in administering the Plan;

 

17

 

(i)            By written instrument, to allocate and delegate its
responsibilities.

 

12.2         Nondiscriminatory Exercise of Authority.  Whenever, in the administration
of the Plan, any discretionary action by the Administrator is required, the
Administrator shall exercise its authority in a nondiscriminatory manner so
that all persons similarly situated will receive substantially the same
treatment.

 

12.3         Claims and Review Procedures.

 

(a)           Purpose.  Every
Participant or Beneficiary (or his or her representative who is authorized in
writing by the Claimant to act on his or her behalf) (hereinafter collectively,
“Claimant”) shall be entitled to file with the Administrator (and subsequently
with the individual(s) designated to review claims appealed after being
initially denied by the Administrator (the “Review Panel”)) a written claim for
benefits under the Plan.  The
Administrator and Review Panel shall each be able to establish such rules,
policies and procedures, consistent with ERISA and the Plan, as it may deem
necessary or appropriate in carrying out its duties and responsibilities under
this Section 12.3.  In the case of a
denial of the claim, the Administrator or Review Panel, as applicable, shall
provide the Claimant with a written or electronic notification that complies
with Department of Labor Regulation Section 2520.104b-1(c)(1).

 

(b)           Denial of Claim.  If a claim is
denied by the Administrator (or its authorized representative), in whole or in
part, then the Claimant shall be furnished with a denial notice that shall
contain the following:

 

(i)          specific reason(s) for the denial;

 

(ii)         reference to the specific Plan provision(s) on
which the denial is based;

 

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

 

(iv)       an explanation of the Plan’s claims review procedure
and the time limits applicable to such procedures, including a statement of the
Claimant’s right to bring a civil action under ERISA Section 502(a) following
a denial on review (as set forth in Section 12.4 below).

 

The denial notice
shall be furnished to the Claimant no later than ninety (90)-days after receipt
of the claim by the Administrator, unless the Administrator determines that
special circumstances require an extension of time for processing the
claim.  If the Administrator determines
that an extension of time for processing is required, then 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
such initial period.  The extension
notice shall indicate the special circumstances requiring an extension of time
and the date by which the Plan expects to render the benefits determination.

 

18

 

(c)           Claim Review Procedure.  The Claimant
may request review of the denial at any time within sixty (60) days following
the date the Claimant received notice of the denial of his or her claim.  The Administrator shall afford the Claimant a
full and fair review of the decision denying the claim and, if so requested,
shall:

 

(i)           provide the Claimant with the opportunity to submit
written comments, documents, records and other information relating to the
claim for benefits;

 

(ii)          provide that the Claimant shall be provided, upon
request and free of charge, reasonable access to, and copies of, all documents,
records and other information (other than documents, records and other information
that is legally-privileged) relevant to the Claimant’s claim for benefits; and

 

(iii)         provide for a review that takes 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.

 

(d)           If the claim is subsequently also denied by the Review
Panel, in whole or in part, then the Claimant shall be furnished with a denial
notice that shall contain the following:

 

(i)           specific reason(s) for the denial;

 

(ii)          reference to the specific Plan provision(s) on
which the denial is based; and

 

(iii)         an explanation of the Plan’s claims review procedure
and the time limits applicable to such procedures, including a statement of the
Claimant’s right to bring a civil action under ERISA Section 502(a) following
the denial on review.

 

(e)           The decision on review shall be issued within sixty
(60) days following receipt of the request for review.  The period for decision may, however, be
extended up to one hundred twenty (120) days after such receipt if the Review
Panel determines that special circumstances require extension.  In the case of an extension, notice of the
extension shall be furnished to the Claimant prior to the expiration of the
initial sixty (60)-day period.  In no
event shall such extension exceed a period of sixty (60) days from the end of
such initial period.  The extension
notice shall indicate the special circumstances requiring an extension of time
and the date by which the Plan expects to render the benefits determination.

 

(f)            Special Procedure for Claims Due to Disability. 
To the extent an application for distribution  as a result of a Disability
requires the Administrator or the Review Panel, as applicable, to make a
determination of Disability under the terms of the Plan, then such
determination shall be subject to all of the general rules described in
this Article, except as they are expressly modified by this Section.

 

19

 

(i)         The initial decision on the claim for a Disability
distribution will be made within forty-five (45) days after the Plan receives
the Claimant’s claim, unless special circumstances require additional time, in
which case the Administrator will notify the Claimant before the end of the
initial forty-five (45)-day period of an extension of up to thirty (30)
days.  If necessary, the Administrator
may notify the Claimant, prior to the end of the initial thirty (30)-day
extension period, of a second extension of up to thirty (30) days.  If an extension is due to the Claimant’s
failure to supply the necessary information, then the notice of extension will
describe the additional information and the Claimant will have forty-five (45)
days to provide the additional information. 
Moreover, the period for making the determination will be delayed from
the date the notification of extension was sent out until the Claimant responds
to the request for additional information. 
No additional extensions may be made, except with the Claimant’s
voluntary consent.  The contents of the
notice shall be the same as described in Section 13.3(b) above.  If a disability distribution claim is denied
in whole or in part, then the Claimant will receive notification, as described
in Section 13.3(b).

 

(g)           If an internal rule, guideline, protocol or similar
criterion is relied upon in making the adverse determination, then the denial
notice to the Claimant will either set forth the internal rule, guideline, protocol
or similar criterion, or will state that such was relied upon and will be
provided free of charge to the Claimant upon request (to the extent not
legally-privileged) and if the Claimant’s claim was denied based on a medical
necessity or experimental treatment or similar exclusion or limit, then the
Claimant will be provided a statement either explaining the decision or
indicating that an explanation will be provided to the Claimant free of charge
upon request.

 

(h)           Any Claimant whose application for a Disability
distribution is denied in whole or in part, may appeal the denial by submitting
to the Review Panel a request for a review of the application within one
hundred and eighty (180) days after receiving notice of the denial.  The request for review shall be in the form
and manner prescribed by the Review Panel. 
In the event of such an appeal for review, the provisions of Section 13.3(c) regarding
the Claimant’s rights and responsibilities shall apply.  Upon request, the Review Panel will identify any
medical or vocational expert whose advice was obtained on behalf of the Review
Panel in connection with the denial, without regard to whether the advice was
relied upon in making the determination. 
The entity or individual appointed by the Review Panel to review the
claim will consider the appeal de novo, without any deference to the
initial denial.  The review will not
include any person who participated in the initial denial or who is the
subordinate of a person who participated in the initial denial.

 

(i)            If the initial Disability distribution denial was
based in whole or in part on a medical judgment, then the Review Panel will
consult with a health care professional who has appropriate training and
experience in the field of medicine involved in the medical judgment, and who
was neither consulted in connection with the initial determination nor is the
subordinate of any person who was consulted in connection with that
determination; and upon notifying the Claimant of an adverse determination on
review, include in the notice either an explanation of the clinical basis for
the determination, applying the terms of the Plan to the Claimant’s medical
circumstances, or a statement that such explanation will be provided free of
charge upon request.

 

20

 

(j)            A decision on review shall be made promptly, but not
later than forty-five (45) days after receipt of a request for review, unless
special circumstances require an extension of time for processing.  If an extension is required, the Claimant
will be notified before the end of the initial forty-five (45)-day period that
an extension of time is required and the anticipated date that the review will
be completed.  A decision will be given
as soon as possible, but not later than ninety (90) days after receipt of a
request for review.  The Review Panel
shall give notice of its decision to the Claimant; such notice shall comply
with the requirements set forth in paragraph (h) above.  In addition, if the Claimant’s claim was
denied based on a medical necessity or experimental treatment or similar
exclusion, then the Claimant will be provided a statement explaining the
decision, or a statement providing that such explanation will be furnished to
the Claimant free of charge upon request. 
The notice shall also contain the following statement:  “You and your Plan may have other voluntary
alternative dispute resolution options, such as mediation.  One way to find out what may be available is
to contact your local U.S. Department of Labor Office and your State insurance
regulatory agency.”

 

12.4         Exhaustion of Claims Procedure and Right
to Bring Legal Claim. 
No action in law or equity shall be brought more than one (1) year after
the Review Panel’s affirmation of a denial of the claim, or, if earlier, more
than four (4) years after the facts or events giving rise to the Claimant’s
allegation(s) or claim(s) first occurred.

 

12.5         Plan’s Administrative Costs.  The Employer shall pay all
reasonable costs and expenses (including legal, accounting, and employee
communication fees) incurred by the Administrator and the Trustee in
administering the Plan and Trust.

 

21

 

IN WITNESS WHEREOF, the
Employer by its duly authorized officer(s), has caused this Plan to be adopted
initially effective January 1, 2005, and amended and restated as of November 14,
2006, November 20, 2008 and November 20, 2009.

 

	
   

  	
  COHERENT,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

22

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