Document:

Exhibit 10.01

 

AMENDMENT ONE

TO THE

ON ASSIGNMENT, INC.

AMENDED AND RESTATED DEFERRED COMPENSATION PLAN

 

The On
Assignment, Inc. Amended and Restated Deferred Compensation Plan Effective
February 1, 1999 (the “Plan”) is hereby amended in the following manner,
in accordance with Section 11.2 of the Plan, and effective as of January 1,
2008, except where another date is provided herein.

 

1.             The “Purpose” section of the Plan is hereby amended
by adding the following new sentence after the first sentence thereof:

 

This
Plan shall apply only with respect to amounts deferred prior to January 1,
2005.

 

2.             Section 1.29 of the Plan is hereby amended in
its entirety as follows:

 

“Plan”
shall mean the On Assignment, Inc. Amended and Restated Deferred
Compensation Plan Effective February 1, 1999, which applies with respect
to deferrals of compensation prior to January 1, 2005, and which shall be
evidenced by this instrument, as it may be amended from time to time,

 

3.                                       Section 3.9(a) of the Plan is hereby
amended in
its entirety as follows:

 

Election of Measurement Funds.  Except as
otherwise provided in Section 3.9(f) below, a Participant, in
connection with his or her initial deferral election in accordance with Section 3.3(a) above,
shall elect, on the Election Form, one or more Measurement Funds(s) (as
described in Section 3.9(c) below) to be used to determine the
additional amounts to be credited to his or her Account Balance.  Except as otherwise provided in Section 3.9(f) below,
the Participant may (but is not required to) elect, by submitting an Election Form to
the Committee that is accepted by the Committee, to add or delete one or more
Measurement Fund(s) to be used to determine the additional amounts to be
credited to his or her Account Balance, or to change the portion of his or her
Account Balance allocated to each previously or newly elected Measurement
Fund.  If an election is made in
accordance with the previous sentence, it shall apply as of the first business
day deemed reasonably practicable by the Committee in its sole discretion and
shall continue thereafter for each subsequent day in which the Participant
participates in the Plan, unless changed in accordance with the previous
sentence.

 

 

4.                                       Section 3.9(d) of the Plan is hereby
amended in
its entirety as follows:

 

Crediting or Debiting Method. The performance of each elected Measurement Fund
(either positive or negative) will be determined on a daily basis based on the
manner in which such Participant’s Account Balance has been hypothetically
allocated among the Measurement Funds by the Participant.

 

 

IN WITNESS WHEREOF, ON ASSIGNMENT, INC., BY ITS DULY AUTHORIZED
REPRESENTATIVE, HAS CAUSED THIS AMENDMENT TO BE EXECUTED IN ITS NAME AND ON ITS
BEHALF ON THIS 4TH DAY OF SEPTEMBER, 2008.

 

 

	
   

  	
  On Assignment, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Peter T. Dameris

  
	
   

  	
  Name:

  	
  Peter T. Dameris

  
	
   

  	
  Title:

  	
  Chief Executive Officer
  and PresidentExhibit 10.02

 

On Assignment, Inc.

Deferred Compensation Plan – Effective January 1, 2008

Master Plan Document

 

Effective January 1, 2008

 

For Amounts Deferred On and After January 1,
2005

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  Selection, Enrollment, Eligibility

  	
  8

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Selection by Committee

  	
  8

  
	
  2.2

  	
  Enrollment and Eligibility Requirements; Commencement of
  Participation

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

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

  	
  9

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Maximum Deferral

  	
  9

  
	
  3.2

  	
  Timing of Deferral  Elections; Effect of Election Form

  	
  9

  
	
  3.3

  	
  Withholding and Crediting of Annual Deferral Amounts

  	
  11

  
	
  3.4

  	
  Company Contribution Amount

  	
  11

  
	
  3.5

  	
  Company Restoration Matching Amount

  	
  12

  
	
  3.6

  	
  Vesting

  	
  12

  
	
  3.7

  	
  Crediting/Debiting of Account Balances

  	
  13

  
	
  3.8

  	
  FICA and Other Taxes

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  Scheduled Distributions

  	
  15

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Scheduled Distributions

  	
  15

  
	
  4.2

  	
  Postponing Scheduled Distributions

  	
  15

  
	
  4.3

  	
  Other Benefits Take Precedence Over Scheduled Distributions

  	
  16

  
	
  4.4

  	
  Unforeseeable Emergencies

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  Retirement Benefit

  	
  17

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Retirement Benefit

  	
  17

  
	
  5.2

  	
  Payment of Retirement Benefit

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  Disability Benefit

  	
  18

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Disability Benefit

  	
  18

  
	
  6.2

  	
  Payment of Disability Benefit

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  Death Benefit

  	
  18

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Death Benefit

  	
  18

  
	
  7.2

  	
  Payment of Death Benefit

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  Beneficiary Designation

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Beneficiary

  	
  18

  

 

i

 

	
  8.2

  	
  Beneficiary Designation; Change; Spousal Consent

  	
  19

  
	
  8.3

  	
  Acknowledgement

  	
  19

  
	
  8.4

  	
  No Beneficiary Designation

  	
  19

  
	
  8.5

  	
  Doubt as to Beneficiary

  	
  19

  
	
  8.6

  	
  Discharge of Obligations

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  Leave of Absence

  	
  19

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Paid Leave of Absence

  	
  19

  
	
  9.2

  	
  Unpaid Leave of Absence

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  Termination of Plan, Amendment or Modification

  	
  20

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Termination of Plan

  	
  20

  
	
  10.2

  	
  Amendment

  	
  20

  
	
  10.3

  	
  Plan Agreement

  	
  20

  
	
  10.4

  	
  Effect of Payment

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
  Administration

  	
  21

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Committee Duties

  	
  21

  
	
  11.2

  	
  Administration Upon Change In Control

  	
  21

  
	
  11.3

  	
  Agents

  	
  21

  
	
  11.4

  	
  Binding Effect of Decisions

  	
  21

  
	
  11.5

  	
  Indemnity of Committee

  	
  21

  
	
  11.6

  	
  Employer Information

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
  Other Benefits and Agreements

  	
  22

  
	
   

  	
   

  	
   

  
	
  12.1

  	
  Coordination with Other Benefits

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
  Claims Procedures

  	
  22

  
	
   

  	
   

  	
   

  
	
  13.1

  	
  Presentation of Claim

  	
  22

  
	
  13.2

  	
  Notification of Decision

  	
  22

  
	
  13.3

  	
  Review of a Denied Claim

  	
  23

  
	
  13.4

  	
  Decision on Review

  	
  23

  
	
  13.5

  	
  Legal Action

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
  Trust

  	
  24

  
	
   

  	
   

  	
   

  
	
  14.1

  	
  Establishment of the Trust

  	
  24

  
	
  14.2

  	
  Interrelationship of the Plan and the Trust

  	
  24

  
	
  14.3

  	
  Distributions From the Trust

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17

  	
  Miscellaneous

  	
  24

  

 

ii

 

	
  15.1

  	
  Status of Plan

  	
  24

  
	
  15.2

  	
  Unsecured General Creditor

  	
  24

  
	
  15.3

  	
  Employer’s Liability

  	
  24

  
	
  15.4

  	
  Nonassignability

  	
  25

  
	
  15.5

  	
  Not a Contract of Employment

  	
  25

  
	
  15.6

  	
  Furnishing Information

  	
  25

  
	
  15.7

  	
  Terms

  	
  25

  
	
  15.8

  	
  Captions

  	
  25

  
	
  15.9

  	
  Governing Law

  	
  25

  
	
  15.10

  	
  Notice

  	
  25

  
	
  15.11

  	
  Successors

  	
  26

  
	
  15.12

  	
  Spouse’s Interest

  	
  26

  
	
  15.13

  	
  Validity

  	
  26

  
	
  15.14

  	
  Incompetent

  	
  26

  
	
  15.15

  	
  Domestic Relations Orders

  	
  26

  
	
  15.16

  	
  Distribution in the Event of Income Inclusion Under Code
  Section 409A

  	
  26

  
	
  15.17

  	
  Deduction Limitation on Benefit Payments

  	
  27

  

 

iii

 

ON ASSIGNMENT,
INC.

DEFERRED
COMPENSATION PLAN

 

Effective January 1,
2008

 

Purpose

 

This Plan applies with respect to deferrals of compensation on and
after January 1, 2005.  There is a
separate On Assignment, Inc. Amended and Restated Deferred Compensation
Plan, effective as of February 1, 1999, that applies with respect to
amounts deferred prior to January 1, 2005. 
The purpose of this Plan is to provide specified benefits a select group
of management or highly compensated Employees and Directors who contribute
materially to the continued growth, development and future business success of
On Assignment, Inc., a Delaware corporation, and its subsidiaries, if any,
that sponsor this Plan.  This Plan shall
be unfunded for tax purposes and for purposes of Title I of ERISA.

 

This Plan is intended to comply with all applicable law, including Code
Section 409A and related Treasury guidance and Regulations, and shall be
operated and interpreted in accordance with this intention.  In order to transition to the requirements of
Code Section 409A and related Treasury Regulations, the Committee may make
available to Participants certain transition relief provided under Notice
2006-79, as described more fully in Appendix A of this Plan.

 

ARTICLE 1

Definitions

 

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

 

1.1           “Account Balance” shall
mean, with respect to a Participant, a credit on the records of the Employer equal
to the sum of the Participant’s Annual Accounts.  The Account Balance shall be a bookkeeping
entry only and shall be utilized solely as a device for the measurement and
determination of the amounts to be paid to a Participant, or his or her designated
Beneficiary, pursuant to this Plan.

 

If a Participant is both an
Employee and a Director and participates in the Plan in each capacity, then
separate Account Balances (and separate Annual Accounts, if applicable) shall
be established for such Participant as a device for the measurement and
determination of the (a) amounts deferred under the Plan that are
attributable to the Participant’s status as an Employee, and (b) amounts
deferred under the Plan that are attributable to the Participant’s status as a
Director.

 

1.2           “Annual Account” shall
mean, with respect to a Participant, a credit on the records of the Employer
equal to (a) the sum of the Participant’s Annual Deferral Amount, Company
Contribution Amount and Company Restoration Matching Amount for any one Plan
Year, plus (b) amounts credited or debited to such amounts pursuant to
this Plan, less (c) all distributions made to the Participant or his or
her Beneficiary pursuant to this Plan that relate to the Annual Account for
such Plan Year.  The Annual Account shall
be a bookkeeping entry only and shall be utilized solely as a device for the
measurement and determination of the amounts to be paid to a Participant, or
his or her designated Beneficiary, pursuant to this Plan.

 

1

 

1.3           “Annual Deferral Amount”
shall mean that portion of a Participant’s Base Salary, Bonus, Commissions and
Director Fees that a Participant defers in accordance with Article 3 for
any one Plan Year, without regard to whether such amounts are withheld and
credited during such Plan Year.

 

1.4           “Annual Installment
Method” shall mean the method used to determine the amount of each payment due
to a Participant who has elected to receive a benefit over a period of years in
accordance with the applicable provisions of the Plan.  The amount of each annual payment due to the
Participant shall be calculated by multiplying the balance of the Participant’s
benefit by a fraction, the numerator of which is one and the denominator of
which is the remaining number of annual payments due to the Participant.  The amount of the first annual payment shall
be calculated as of the close of business on or around  the
Participant’s Benefit Distribution Date,  and the amount of each subsequent annual payment shall be
calculated on or around each anniversary of such Benefit Distribution
Date.  For purposes of this Plan, the right to receive a benefit payment in
annual installments shall be treated as the entitlement to a single payment.

 

1.5           “Base Salary” shall
mean the annual cash compensation relating to services performed during any
calendar year, excluding distributions from nonqualified deferred compensation
plans, bonuses, commissions, overtime, fringe benefits, stock options,
relocation expenses, incentive payments, non-monetary awards, director fees and
other fees, and automobile and other allowances paid to a Participant for
employment services rendered (whether or not such allowances are included in
the Employee’s gross income).  Base
Salary shall be calculated before reduction for compensation voluntarily
deferred or contributed by the Participant pursuant to all qualified or
nonqualified plans of any Employer and shall be calculated to include amounts
not otherwise included in the Participant’s gross income under Code Sections
125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by any
Employer; provided, however, that all such amounts will be included in
compensation only to the extent that had there been no such plan, the amount
would have been payable in cash to the Employee.

 

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

 

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

 

1.8           “Benefit Distribution
Date” shall mean the date upon which all or an objectively determinable portion
of a Participant’s vested benefits will become eligible for distribution.  Except as otherwise provided in the Plan, a
Participant’s Benefit Distribution Date shall be determined based on the
earliest to occur of an event or scheduled date set forth in Articles 4 through
9, as applicable.

 

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

 

1.10         “Bonus” shall mean any
compensation, in addition to Base Salary and Commissions earned by a
Participant under any Employer’s annual bonus and cash incentive plans.

 

2

 

1.11         “Change in Control” shall
mean the occurrence of a “change in the ownership,” a “change in the effective
control” or a “change in the ownership of a substantial portion of the assets”
of a corporation, as determined in accordance with this Section.

 

In order for an event described
below to constitute a Change in Control with respect to a Participant, except
as otherwise provided in part (b)(ii) of this Section, the applicable
event must relate to the corporation for which the Participant is providing
services, the corporation that is liable for payment of the Participant’s
Account Balance (or all corporations liable for payment if more than one), as
identified by the Committee in accordance with Treas. Reg.
§1.409A-3(i)(5)(ii)(A)(2), or such other corporation identified by the
Committee in accordance with Treas. Reg. §1.409A-3(i)(5)(ii)(A)(3).

 

In determining whether an event
shall be considered a “change in the ownership,” a “change in the effective
control” or a “change in the ownership of a substantial portion of the assets”
of a corporation, the following provisions shall apply:

 

(a)           A “change in the
ownership” of the applicable corporation shall occur on the date on which any
one person, or more than one person acting as a group, acquires ownership of
stock of such corporation that, together with stock held by such person or
group, constitutes more than 50% of the total fair market value or total voting
power of the stock of such corporation, as determined in accordance with Treas.
Reg. §1.409A-3(i)(5)(v).  If a person or
group is considered either to own more than 50% of the total fair market value
or total voting power of the stock of such corporation, or to have effective
control of such corporation within the meaning of part (b) of this
Section, and such person or group acquires additional stock of such
corporation, the acquisition of additional stock by such person or group shall
not be considered to cause a “change in the ownership” of such corporation.

 

(b)           A “change in the
effective control” of the applicable corporation shall occur on either of the
following dates:

 

(i)            The date on which any
one person, or more than one person acting as a group, acquires (or has
acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of such corporation
possessing 30% or more of the total voting power of the stock of such corporation,
as determined in accordance with Treas. Reg. §1.409A-3(i)(5)(vi).  If a person or group is considered to possess
30% or more of the total voting power of the stock of a corporation, and such
person or group acquires additional stock of such corporation, the acquisition
of additional stock by such person or group shall not be considered to cause a “change
in the effective control” of such corporation; or

 

(ii)           The date on which a
majority of the members of the applicable corporation’s board of directors is
replaced during any 12-month period by directors whose appointment or election
is not endorsed by a majority of the members of such corporation’s board of
directors before the date of the appointment or election, as determined in
accordance with Treas. Reg. §1.409A-3(i)(5)(vi).  In determining whether the event described in
the preceding sentence has occurred, the applicable corporation to which the
event must relate shall only include a corporation 

 

3

 

identified
in accordance with Treas. Reg. §1.409A-3(i)(5)(ii) for which no other
corporation is a majority shareholder.

 

(c)           A “change in the
ownership of a substantial portion of the assets” of the applicable corporation
shall occur on the date on which any one person, or more than one person acting
as a group, acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person or persons) assets from the
corporation that have a total gross fair market value equal to or more than 40%
of the total gross fair market value of all of the assets of the corporation
immediately before such acquisition or acquisitions, as determined in
accordance with Treas. Reg. §1.409A-3(i)(5)(vii).  A transfer of assets shall not be treated as
a “change in the ownership of a substantial portion of the assets” when such
transfer is made to an entity that is controlled by the shareholders of the
transferor corporation, as determined in accordance with Treas. Reg.
§1.409A-3(i)(5)(vii)(B).

 

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

 

1.13         “Commissions” shall mean
the cash commissions earned by a Participant during a Plan Year, as determined
in accordance with Code Section 409A and related Treasury Regulations.

 

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

 

1.15         “Company” shall mean On
Assignment, Inc., a Delaware corporation, and any successor to all or
substantially all of the Company’s assets or business.

 

1.16         “Company Contribution
Amount” shall mean, for any one Plan Year, the amount determined in accordance
with Section 3.4.

 

1.17         “Company Restoration
Matching Amount” shall mean, for any one Plan Year, the amount determined in
accordance with Section 3.5.

 

1.18         “Director” shall mean any
member of the board of directors of any Employer.

 

1.19         “Director Fees” shall
mean the annual fees earned by a Director from any Employer, including retainer
fees and meetings fees, as compensation for serving on the board of directors.

 

1.20         “Disability” or “Disabled”
shall mean that a Participant is either (a) unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment that can be expected to result in death or can be expected
to last for a continuous period of not less than 12 months, or (b) by
reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months, receiving income replacement benefits for a period
of not less than 3 months under an accident and health plan covering employees
of the Participant’s Employer.  For
purposes of this Plan, a Participant shall be deemed Disabled if determined to
be totally disabled by the Social Security Administration.  A Participant shall also be deemed Disabled
if determined to be disabled in accordance with the applicable disability
insurance program of such Participant’s Employer, provided that the definition
of “disability” applied under such disability insurance program complies with
the requirements of this Section.

 

4

 

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

 

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

 

1.23         “Employer(s)” shall be
defined as follows:

 

(a)           Except as otherwise
provided in part (b) of this Section, the term “Employer” shall mean the
Company and/or any of its subsidiaries (now in existence or hereafter formed or
acquired) that have been selected by the Board to participate in the Plan and
have adopted the Plan as a sponsor.

 

(b)           For the purpose of
determining whether a Participant has experienced a Termination of Employment,
the term “Employer” shall mean:

 

(i)            The entity for which
the Participant performs services and with respect to which the legally binding
right to compensation deferred or contributed under this Plan arises; and

 

(ii)           All other entities with
which the entity described above would be aggregated and treated as a single
employer under Code Section 414(b) (controlled group of corporations)
and Code Section 414(c) (a group of trades or businesses, whether or
not incorporated, under common control), as applicable.  In order to identify the group of entities
described in the preceding sentence, the Committee shall use an ownership
threshold of at least 50% as a substitute for the 80% minimum ownership
threshold that appears in, and otherwise must be used when applying, the
applicable provisions of (A) Code Section 1563 for determining a
controlled group of corporations under Code Section 414(b), and (B) Treas.
Reg. §1.414(c)-2 for determining the trades or businesses that are under common
control under Code Section 414(c).

 

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

 

1.25         “401(k) Plan” shall
mean, with respect to an Employer, a plan qualified under Code Section 401(a) that
contains a cash or deferral arrangement described in Code Section 401(k),
adopted by the Employer, as it may be amended from time to time, or any
successor thereto.

 

1.26         “Participant” shall mean
any Employee or Director (a) who is selected to participate in the Plan, (b) whose
executed Plan Agreement, Election Form and Beneficiary Designation Form are
accepted by the Committee, and (c) whose Plan Agreement has not
terminated.

 

1.27         “Performance-Based
Compensation” shall mean compensation the entitlement to or amount of which is
contingent on the satisfaction of pre-established organizational or individual
performance criteria relating to a performance period of at least 12
consecutive months, as determined by the Committee in accordance with Treas.
Reg. §1.409A-1(e).

 

1.28         “Plan” shall mean the On
Assignment, Inc., Deferred Compensation Plan, which applies with respect
to deferrals of compensation on and after January 1, 2005, and which shall
be evidenced by this instrument, as it may be amended from time to time, and by
any other documents that 

 

5

 

together with this instrument define a Participant’s rights to amounts
credited to his or her Account Balance.

 

1.29         “Plan Agreement” shall
mean a written agreement in the form prescribed by or acceptable to the
Committee that evidences a Participant’s agreement to the terms of the Plan and
which may establish additional terms or conditions of Plan participation for a
Participant.  Unless otherwise determined
by the Committee, the most recent Plan Agreement accepted with respect to a
Participant shall supersede any prior Plan Agreements for such Participant.  Plan Agreements may vary among Participants
and may provide additional benefits not set forth in the Plan or limit the
benefits otherwise provided under the Plan.

 

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

 

1.31         “Termination of
Employment” shall mean a termination of services provided by a Participant to
his or her Employer, whether voluntarily or involuntarily, other than by reason
of death or Disability, as determined by the Committee in accordance with
Treas. Reg. §1.409A-1(h).  In determining
whether a Participant has experienced a Termination of Employment, the
following provisions shall apply:

 

(a)           For a Participant who
provides services to an Employer as an Employee, except as otherwise provided
in part (c) of this Section, a Termination of Employment shall occur when
such Participant has experienced a termination of employment with such
Employer.  A Participant shall be
considered to have experienced a termination of employment when the facts and
circumstances indicate that the Participant and his or her Employer reasonably
anticipate that either (i) no further services will be performed for the
Employer after a certain date, or (ii) that the level of bona fide
services the Participant will perform for the Employer after such date (whether
as an Employee or as an independent contractor) will permanently decrease to no
more than 20% of the average level of bona fide services performed by such Participant
(whether as an Employee or an independent contractor) over the immediately
preceding 36-month period (or the full period of services to the Employer if
the Participant has been providing services to the Employer less than 36
months).

 

If a Participant is on military
leave, sick leave, or other bona fide leave of absence, the employment
relationship between the Participant and the Employer shall be treated as
continuing intact, provided that the period of such leave does not exceed 6
months, or if longer, so long as the Participant retains a right to
reemployment with the Employer under an applicable statute or by contract.  If the period of a military leave, sick
leave, or other bona fide leave of absence exceeds 6 months and the Participant
does not retain a right to reemployment under an applicable statute or by
contract, the employment relationship shall be considered to be terminated for
purposes of this Plan as of the first day immediately following the end of such
6-month period.  In applying the
provisions of this paragraph, a leave of absence shall be considered a bona
fide leave of absence only if there is a reasonable expectation that the
Participant will return to perform services for the Employer.

 

(b)           For a Participant who
provides services to an Employer as an independent contractor, except as
otherwise provided in part (c) of this Section, a Termination of
Employment 

 

6

 

shall occur upon the expiration
of the contract (or in the case of more than one contract, all contracts) under
which services are performed for such Employer, provided that the expiration of
such contract(s) is determined by the Committee to constitute a good-faith
and complete termination of the contractual relationship between the
Participant and such Employer.

 

(c)           For
a Participant who provides services to an Employer as both an Employee and an
independent contractor, a Termination
of Employment generally shall not occur until the Participant has ceased
providing services for such Employer as both as an Employee and as an
independent contractor, as determined in accordance with the provisions set
forth in parts (a) and (b) of this Section, respectively. Similarly, if a
Participant either (i) ceases providing services for an Employer as an
independent contractor and begins providing services for such Employer as an
Employee, or (ii) ceases providing services for an Employer as an Employee and
begins providing services for such Employer as an independent contractor, the Participant
will not be considered to have experienced a Termination of Employment until
the Participant has ceased providing services for such Employer in both
capacities, as determined in accordance with the applicable provisions set
forth in parts (a) and (b) of this Section.

 

Notwithstanding the foregoing
provisions in this part (c), if a Participant provides services for an Employer
as both an Employee and as a Director, to the extent permitted by Treas. Reg.
§1.409A-1(h)(5) the services provided by such Participant as a Director
shall not be taken into account in determining whether the Participant has
experienced a Termination of Employment as an Employee, and the services
provided by such Participant as an Employee shall not be taken into account in
determining whether the Participant has experienced a Termination of Employment
as a Director.

 

1.32         “Specified Employee”
shall mean any Participant who is determined to be a “key employee” (as defined
under Code Section 416(i) without regard to paragraph (5) thereof)
for the applicable period, as determined annually by the Committee in
accordance with Treas. Reg. §1.409A-1(i). 
In determining whether a Participant is a Specified Employee, the
following provisions shall apply:

 

(a)           The Committee’s
identification of the individuals who fall within the definition of “key
employee” under Code Section 416(i) (without regard to paragraph (5) thereof)
shall be based upon the 12-month period ending on each December 31st
(referred to below as the “identification date”).  In applying
the applicable provisions of Code Section 416(i) to identify such
individuals, “compensation” shall be determined in accordance with Treas. Reg.
§1.415(c)-2(a) without regard to (i) any safe harbor provided in
Treas. Reg. §1.415(c)-2(d), (ii) any of the special timing rules provided
in Treas. Reg. §1.415(c)-2(e), and (iii) any of the special rules provided
in Treas. Reg. §1.415(c)-2(g); and

 

(b)           Each Participant who is among the individuals identified as a “key
employee” in accordance with part (a) of this Section shall be
treated as a Specified Employee
for purposes of this Plan if such Participant experiences a Termination of
Employment during the 12-month period that begins on the April 1st
following the applicable identification date.

 

7

 

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

 

1.34         “Unforeseeable Emergency”
shall mean a severe financial hardship of the Participant resulting from (a) an
illness or accident of the Participant, the Participant’s spouse, the
Participant’s Beneficiary or the Participant’s dependent (as defined in Code Section 152
without regard to paragraphs (b)(1), (b)(2) and (d)(1)(b) thereof), (b) a
loss of the Participant’s property due to casualty, or (c) such other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant, all as determined by the
Committee based on the relevant facts and circumstances.

 

1.35         “Years of Service” shall
mean the total number of full years in which a Participant has been employed by
one or more Employers.  For purposes of
this definition, a year of employment shall be a 365 day period (or 366 day
period in the case of a leap year) that, for the first year of employment,
commences on the Employee’s date of hiring and that, for any subsequent year,
commences on an anniversary of that hiring date.  A partial year of employment shall not be
treated as a Year of Service.

 

ARTICLE 2

 

Selection,
Enrollment, Eligibility

 

2.1           Selection
by Committee. 
Participation in the Plan shall be limited to Directors and, as
determined by the Committee in its sole discretion, a select group of
management or highly compensated Employees. 
From that group, the Committee shall select, in its sole discretion,
those individuals who may actually participate in this Plan.

 

2.2           Enrollment
and Eligibility Requirements; Commencement of Participation.

 

(a)           As a condition to
participation, each Director or selected Employee shall complete, execute and
return to the Committee a Plan Agreement, an Election Form and a
Beneficiary Designation Form by the deadline(s) established by the
Committee in accordance with the applicable provisions of this Plan.  In addition, the Committee shall establish
from time to time such other enrollment requirements as it determines, in its
sole discretion, are necessary.

 

(b)           Each Director or
selected Employee who is eligible to participate in the Plan shall commence
participation in the Plan on the date that the Committee determines that the
Director or Employee has met all enrollment requirements set forth in this Plan
and required by the Committee, including returning all required documents to
the Committee within the specified time period.

 

(c)           If a Director or an
Employee fails to meet all requirements established by the Committee within the
period required, that Director or Employee shall not be eligible to participate
in the Plan during such Plan Year.

 

8

 

ARTICLE 3

Deferral Commitments/Company Contribution Amounts/

Company
Restoration Matching Amounts/ Vesting/Crediting/Taxes

 

3.1           Maximum
Deferral.

 

(a)           Annual
Deferral Amount.  For each
Plan Year, a Participant may elect to defer, as his or her Annual Deferral
Amount, Base Salary, Bonus, Commissions and Director Fees up to the following
maximum percentages for each deferral elected:

 

	
  Deferral

  	
   

  	
  Maximum Percentage

  	
   

  
	
  Base Salary

  	
   

  	
  100

  	
  %

  
	
  Bonus

  	
   

  	
  100

  	
  %

  
	
  Commissions

  	
   

  	
  100

  	
  %

  
	
  Director Fees

  	
   

  	
  100

  	
  %

  

 

For purposes of the preceding
sentence, however, a Participant’s deferral of Base Salary shall be limited to
100% of his or her Base Salary net of taxes and other required withholdings.

 

(b)           Short
Plan Year. Notwithstanding the foregoing, if a Participant first
becomes a Participant after the first day of a Plan Year, then to the extent
required by Section 3.2 and Code Section 409A and related Treasury Regulations,
the maximum amount of the Participant’s Base Salary, Bonus, Commissions or
Director Fees that may be deferred by the Participant for the Plan Year shall
be determined by applying the percentages set forth in Section 3.1(a) to the
portion of such compensation attributable to services performed after the date
that the Participant’s deferral election is made.

 

3.2           Timing of
Deferral Elections; Effect of Election Form. 

 

(a)           General
Timing Rule for Deferral Elections. Except as otherwise provided
in this Section 3.2, in order for a Participant to make a valid election to
defer Base Salary, Bonus, Commissions and Director Fees, the Participant must
submit an Election Form on or before the deadline established by the Committee,
which in no event shall be later than the December 31st preceding
the Plan Year in which such compensation will be earned.

 

Any deferral
election made in accordance with this Section 3.2(a) shall be irrevocable;
provided, however, that if the Committee permits or requires Participants to
make a deferral election by the deadline described above for an amount that
qualifies as Performance-Based Compensation, the Committee may permit a
Participant to subsequently change his or her deferral election for such
compensation by submitting a new Election Form in accordance with Section 3.2(d)
below.

 

9

 

(b)           Timing of
Deferral Elections for Newly Eligible Plan Participants. A
Director or selected Employee who first becomes eligible to participate in the
Plan on or after the beginning of a Plan Year, as determined in accordance with
Treas. Reg. §1.409A-2(a)(7)(ii) and the “plan aggregation” rules provided in
Treas. Reg. §1.409A-1(c)(2), may be permitted to make an election to defer the
portion of Base Salary, Bonus, Commissions and Director Fees attributable to
services to be performed after such election, provided that the Participant
submits an Election Form on or before the deadline established by the
Committee, which in no event shall be later than 30 days after the Participant
first becomes eligible to participate in the Plan.

 

If a deferral
election made in accordance with this Section 3.2(b) relates to compensation
earned based upon a specified performance period, the amount eligible for
deferral shall be equal to (i) the total amount of compensation for the
performance period, multiplied by (ii) a fraction, the numerator of which is
the number of days remaining in the service period after the Participant’s
deferral election is made, and the denominator of which is the total number of
days in the performance period.

 

Any deferral
election made in accordance with this Section 3.2(b) shall become irrevocable
no later than the 30th day after the date the Director or selected
Employee becomes eligible to participate in the Plan.

 

(c)           Timing of
Deferral Elections for Fiscal Year Compensation. In the event
that the fiscal year of an Employer is different than the taxable year of a
Participant, the Committee may determine that a deferral election may be made
for “fiscal year compensation” (as defined below), by submitting an Election
Form on or before the deadline established by the Committee, which in no event
shall be later than the last day of the Employer’s fiscal year immediately
preceding the fiscal year in which the services related to such compensation
will begin to be performed. For purposes of this Section, the term “fiscal year
compensation” shall only include Bonus relating to a service period coextensive
with one or more consecutive fiscal years of the Employer, of which no amount
is paid or payable during the Employer’s fiscal year(s) that constitute the service
period.

 

A deferral
election made in accordance with this Section 3.2(c) shall be irrevocable;
provided, however, that if the Committee permits or requires Participants to
make a deferral election by the deadline described in this Section 3.2(c) for
an amount that qualifies as Performance-Based Compensation, the Committee may
permit a Participant to subsequently change his or her deferral election for
such compensation by submitting a new Election Form in accordance with 3.2(d)
below.

 

(d)           Timing of
Deferral Elections for Performance-Based
Compensation. Subject to the limitations described below, the
Committee may determine that an irrevocable deferral election for an amount
that qualifies as Performance-Based Compensation may be made by submitting an
Election Form on or before the deadline established by the Committee, which in
no event shall be later than 6 months before the end of the performance period.

 

In order for a
Participant to be eligible to make a deferral election for Performance-Based
Compensation in accordance with the deadline established pursuant to this
Section 3.2(d), 

 

10

 

the
Participant must have performed services continuously from the later of (i) the
beginning of the performance period for such compensation, or (ii) the date
upon which the performance criteria for such compensation are established,
through the date upon which the Participant makes the deferral election for
such compensation. In no event shall a deferral election submitted under this
Section 3.2(d) be permitted to apply to any amount of Performance-Based
Compensation that has become readily ascertainable.

 

(e)           Timing
Rule for Deferral of Compensation
Subject to Risk of Forfeiture.
With respect to compensation (i) to which a Participant has a
legally binding right to payment in a subsequent year, and (ii) that is subject
to a forfeiture condition requiring the Participant’s continued services for a
period of at least 12 months from the date the Participant obtains the legally
binding right, the Committee may determine that an irrevocable deferral
election for such compensation may be made by timely delivering an Election
Form to the Committee in accordance with its rules and procedures, no later
than the 30th day after the Participant obtains the legally binding
right to the compensation, provided that the election is made at least 12
months in advance of the earliest date at which the forfeiture condition could
lapse, as determined in accordance with Treas. Reg. §1.409A-2(a)(5).

 

Any deferral
election(s) made in accordance with this Section 3.2(e) shall become
irrevocable no later than the 30th day after the Participant obtains
the legally binding right to the compensation subject to such deferral
election(s).

 

3.3           Withholding
and Crediting of Annual Deferral Amounts.  For each Plan Year, the Base Salary portion
of the Annual Deferral Amount shall be withheld from each regularly scheduled
Base Salary payroll in equal amounts, as adjusted from time to time for
increases and decreases in Base Salary. The Bonus, Commissions and Director
Fees portion of the Annual Deferral Amount shall be withheld at the time the
Bonus, Commissions or Director Fees are or otherwise would be paid to the
Participant, whether or not this occurs during the Plan Year itself. Annual
Deferral Amounts shall be credited to the Participant’s Annual Account for such
Plan Year at the time such amounts would otherwise have been paid to the
Participant.

 

3.4           Company
Contribution Amount.

 

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

 

(b)           For each Plan Year, the
Compensation Committee of the Board, in its sole discretion, may, but is not
required to, credit any amount it desires to any Participant’s Annual Account
under this Plan, which amount shall be part of the Participant’s Company
Contribution Amount for that Plan Year. The amount so credited to a Participant
may be smaller or larger than the amount credited to any other Participant, and
the amount credited to any Participant for a Plan Year may be zero, even though
one or more other Participants receive a Company Contribution Amount for that
Plan Year. The Company 

 

11

 

Contribution
Amount described in this Section 3.4(b), if any, shall be credited to the
Participant’s Annual Account for the applicable Plan Year on a date or dates to
be determined by the Committee.

 

(c)           If not otherwise
specified in the Participant’s employment or other agreement entered into
between the Participant and the Employer, the amount (or the method or formula
for determining the amount) of a Participant’s Company Contribution Amount shall
be set forth in writing in one or more documents, which shall be deemed to be
incorporated into this Plan in accordance with Section 1.28, no later than the
date on which such Company Contribution Amount is credited to the applicable
Annual Account of the Participant.

 

3.5           Company
Restoration Matching Amount. 
For each Plan Year, the Compensation Committee of the Board, in its sole
discretion, may, but is not required to, credit any amount it desires to any
Participant’s Annual Account under this Plan, which amount shall be part of the
Participant’s Company Restoration Matching Amount for that Plan Year. If so
credited, a Participant’s Company Restoration Matching Amount for any Plan Year
shall be an amount determined by the Committee to make up for certain limits applicable
to the 401(k) Plan or other qualified plan for such Plan Year, as
identified by the Committee, or for such other purposes as determined by the
Committee in its sole discretion. The amount so credited to a Participant under
this Plan for any Plan Year (a) may be smaller or larger than the amount
credited to any other Participant, and (b) may differ from the amount credited
to such Participant in the preceding Plan Year. The Participant’s Company
Restoration Matching Amount, if any, shall be credited to the Participant’s
Annual Account for the applicable Plan Year on a date or dates to be determined
by the Committee. The amount (or the method or formula for determining the
amount) of a Participant’s Company Restoration Matching Amount shall be set
forth in writing in one or more documents, which shall be deemed to be
incorporated into this Plan in accordance with Section 1.28, no later than the
date on which such Company Restoration Matching Amount is credited to the
applicable Annual Account of the Participant.

 

3.6           Vesting.

 

(a)           A Participant shall at
all times be 100% vested in the portion of his or her Account Balance
attributable to Annual Deferral Amounts, plus amounts credited or debited on
such amounts pursuant to Section 3.7.

 

(b)           A Participant shall be
vested in the portion of his or her Account Balance attributable to any Company
Contribution Amounts and Company Restoration Matching Amounts, plus amounts
credited or debited on such amounts pursuant to Section 3.7, pursuant to the vesting
schedule established by the Compensation Committee of the Board with respect to
such amounts. In the event no such schedule is established, a Participant shall
be vested in such amounts in accordance with the vesting provisions of the
401(k) Plan in effect on the first day of the Plan Year for which such amounts
are contributed.

 

(c)           Notwithstanding
anything to the contrary contained in this Section 3.6, in the event of a Change in Control, or upon a Participant’s
Disability, Termination of Employment on or after age 65, or death prior to
Termination of Employment, any amounts that are not vested in accordance
with Sections 3.6 above, shall immediately become 100% vested.

 

12

 

(d)           Notwithstanding subsection 3.6(c) above, the vesting schedules
described in Sections 3.6(c) above
shall not be accelerated upon a Change in Control to the extent that the
Committee determines that such acceleration would cause the deduction
limitations of Section 280G of the Code to become effective. In the event of
such a determination, the Participant may request independent verification of
the Committee’s calculations with respect to the application of Section 280G.
In such case, the Committee must provide to the Participant within 90 days of
such a request an opinion from a nationally recognized accounting firm selected
by the Participant (the “Accounting Firm”). The opinion shall state the
Accounting Firm’s opinion that any limitation in the vested percentage
hereunder is necessary to avoid the limits of Section 280G and contain
supporting calculations. The cost of such opinion shall be paid for by the
Company.

 

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

 

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

 

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

 

(i)            Election
of Measurement Funds. A Participant, in connection with his or
her initial deferral election in accordance with Section 3.2 above, shall
elect, on the Election Form, one or more Measurement Fund(s) (as described in
Section 3.7(a) above) to be used to determine the amounts to be credited or
debited to his or her Account Balance. If a Participant does not elect any of
the Measurement Funds as described in the previous sentence, the Participant’s
Account Balance shall automatically be allocated into the lowest-risk
Measurement Fund, as determined by the Committee, in its sole discretion. The
Participant may (but is not required to) elect, by submitting an Election Form
to the Committee that is accepted by the Committee, to add or delete one or
more Measurement Fund(s) to be used to determine the amounts to be credited or
debited to his or her Account Balance, or to change the portion of his or her
Account Balance allocated to each previously or newly elected Measurement Fund.
If an election is made in accordance with the previous sentence, it shall apply
as of the first business day deemed reasonably practicable by the Committee, in
its sole discretion, and shall continue thereafter for each subsequent day in
which the Participant participates in the Plan, unless changed in accordance
with the previous sentence. Notwithstanding the 

 

13

 

foregoing, the
Committee, in its sole discretion, may impose limitations on the frequency with
which one or more of the Measurement Funds elected in accordance with this
Section 3.7(i) may be added or deleted by such Participant; furthermore, the
Committee, in its sole discretion, may impose limitations on the frequency with
which the Participant may change the portion of his or her Account Balance
allocated to each previously or newly elected Measurement Fund

 

(b)           Proportionate
Allocation. In making any election described in Section 3.7(i)
above, the Participant shall specify on the Election Form, in increments of one
percent (1%), the percentage of his or her Account Balance or Measurement Fund,
as applicable, to be allocated/reallocated.

 

(c)           Crediting or Debiting
Method. The performance of each Measurement Fund (either
positive or negative) will be determined on a daily basis based on the manner
in which such Participant’s Account Balance has been hypothetically allocated
among the Measurement Funds by the Participant.

 

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

 

3.8           FICA and
Other Taxes.

 

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

 

(b)           Company
Restoration Matching Amounts and Company Contribution Amounts.
When a Participant becomes vested in a portion of his or her Account Balance
attributable to any Company Restoration Matching Amounts and/or Company
Contribution Amounts, the Participant’s Employer(s) shall withhold from that
portion of the Participant’s Base Salary, Bonus and Commissions that is not deferred,
in a manner determined by the Employer(s), the Participant’s share of FICA and
other employment taxes on such amounts. If necessary, the Committee may reduce
the vested portion of the 

 

14

 

Participant’s
Company Restoration Matching Amount or Company Contribution Amount, as
applicable, in order to comply with this Section 3.8.

 

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

 

ARTICLE 4

Scheduled Distribution; Unforeseeable Emergencies 

 

4.1           Scheduled
Distributions.  In
connection with each election to defer an Annual Deferral Amount, a Participant
may elect to receive all or a portion of such Annual Deferral Amount, plus
amounts credited or debited on that amount pursuant to Section 3.7, in the
form of a lump sum payment, calculated as of the close of business on or around
the Benefit Distribution Date designated by the Participant in accordance with
this Section (a “Scheduled Distribution”). The Benefit Distribution Date for
the amount subject to a Scheduled Distribution election shall be the first day
of any Plan Year designated by the Participant, which may be no sooner than 3
Plan Years after the end of the Plan Year to which the Participant’s deferral
election relates, unless otherwise provided on an Election Form approved by the
Committee.

 

Subject to the
other terms and conditions of this Plan, each Scheduled Distribution elected
shall be paid out during a 60 day period commencing immediately after the
Benefit Distribution Date. By way of example, if a Scheduled Distribution is
elected for Annual Deferral Amounts that are earned in the Plan Year commencing
January 1, 2008, the earliest Benefit Distribution Date that may be
designated by a Participant would be January 1, 2012, and the Scheduled
Distribution would be paid out during the 60 day period commencing immediately
after such Benefit Distribution Date.

 

4.2           Postponing Scheduled Distributions.  A Participant may elect to postpone a Scheduled Distribution described in
Section 4.1 above, and have such amount paid out during a 60 day period
commencing immediately after an allowable alternative Benefit Distribution Date
designated in accordance with this Section 4.2. In order to make such an
election, the Participant must submit an Election Form to the Committee in
accordance with the following criteria:

 

(a)           The election of the new Benefit Distribution Date shall have no effect
until at least 12 months after the date on which the election is made;

 

(b)           The new Benefit Distribution Date selected by
the Participant for such Scheduled Distribution must be the first day of a Plan
Year that is no sooner than 5 years after the previously designated Benefit Distribution Date; and

 

(c)           The election must be
made  at least 12 months prior to the
Participant’s previously designated
Benefit Distribution Date for such Scheduled Distribution.

 

15

 

For purposes of applying the
provisions of this Section 4.2, a Participant’s election to postpone a
Scheduled Distribution shall not be considered to be made until the date on
which the election becomes irrevocable. Such an election shall become irrevocable
no later than the date that is 12 months prior to the Participant’s previously
designated Benefit Distribution Date for such Scheduled Distribution.

 

4.3           Other
Benefits Take Precedence Over Scheduled Distributions.  Should an event occur prior to any Benefit
Distribution Date designated for a Scheduled Distribution that would trigger a
benefit under Articles 5 through 9, as applicable, all amounts subject to a
Scheduled Distribution election shall be paid in accordance with the other
applicable provisions of the Plan and not in accordance with this Article 4.

 

4.4           Unforeseeable
Emergencies.

 

(a)           If a
Participant experiences an Unforeseeable Emergency prior to the occurrence of a
distribution event described in Articles 5 through 9, as applicable, the Participant may petition the Committee
to receive a partial or full payout from the Plan. The payout, if any,
from the Plan shall not exceed the lesser of (i) the Participant’s vested
Account Balance, calculated as of the close of business on or around the
Benefit Distribution Date for such payout, as determined by the Committee in
accordance with provisions set forth below, or (ii) the amount necessary to
satisfy the Unforeseeable Emergency,
plus amounts necessary to pay Federal, state, or local income taxes or
penalties reasonably anticipated as a result of the distribution. A
Participant shall not be eligible to receive a payout from the Plan to the
extent that the Unforeseeable Emergency is or may be relieved (A) through
reimbursement or compensation by insurance or otherwise, (B) by liquidation of
the Participant’s assets, to the extent the liquidation of such assets would
not itself cause severe financial hardship or (C) by cessation of deferrals
under this Plan.

 

If the
Committee, in its sole discretion, approves a Participant’s petition for payout
from the Plan, the Participant’s Benefit Distribution Date for such payout
shall be the date on which such Committee approval occurs and such payout shall
be distributed to the Participant in a lump sum no later than 60 days after
such Benefit Distribution Date. In addition, in the event of such approval the
Participant’s outstanding deferral elections under the Plan shall be cancelled.

 

(b)           A Participant’s
deferral elections under this Plan shall also be cancelled to the extent the
Committee determines that such action is required for the Participant to obtain
a hardship distribution from an Employer’s 401(k) Plan pursuant to Treas. Reg.
§1.401(k)-1(d)(3).

 

ARTICLE 5

Termination of Employment Benefit

 

5.1           Termination
of Employment Benefit.  If
a Participant experiences a Termination of Employment, the Participant shall be
eligible to receive his or her vested Account Balance in either a lump sum or annual
installment payments, as elected by the Participant in accordance with Section
5.2 (the “Termination of Employment Benefit”). A
Participant’s Termination of Employment Benefit shall be calculated as of the
close of business on or around the applicable 

 

16

 

Benefit
Distribution Date for such benefit, which shall be (i) the first day after the end of the 6-month period immediately
following the date on which the Participant experiences such Termination of
Employment if the Participant
is a Specified Employee, and  (ii) for all other Participants, the date on which the Participant experiences
a Termination of Employment; provided, however, if
a Participant changes the form of distribution for the Termination of
Employment Benefit in accordance with Section 5.2(b), the Benefit Distribution Date for the Termination of
Employment Benefit shall be determined
in accordance with Section 5.2(b).

 

5.2           Payment
of Termination of Employment Benefit.

 

(a)           A Participant, in
connection with his or her commencement of participation in the Plan, shall
elect on an Election Form to receive the Termination of Employment Benefit in a
lump sum or pursuant to an Annual Installment Method of up to 15 years;
provided, however, that if the Participant’s Account Balance at the time of his
or her Termination of Employment is less than the applicable dollar amount
specified by Internal Revenue Code §402(g)(1)(B) in effect for the year in
which the payout is to occur, payment of his or her Termination of Employment
Benefit shall be paid in a lump sum. If a Participant does not make any
election with respect to the payment of the Termination of Employment Benefit,
then such Participant shall be deemed to have elected to receive the
Termination of Employment Benefit as a lump sum.

 

(b)           A
Participant may change the form of payment for the Termination of
Employment Benefit by submitting an
Election Form to the Committee in accordance with the following criteria:

 

(i)            The election shall not take effect until at least 12
months after the date on which the election is made;

 

(ii)           The
new Benefit Distribution Date for the Participant’s Termination of
Employment Benefit shall be 5 years after the Benefit Distribution Date
that would otherwise have been applicable to such benefit; and

 

(iii)          The election must be made at least 12 months prior
to the
Benefit Distribution Date that would otherwise have been applicable to the Participant’s Termination of Employment
Benefit.

 

For purposes of applying the
provisions of this Section 5.2(b),
a Participant’s election to change
the form of payment for the Termination of Employment Benefit shall not be considered to be made until the date on which the election
becomes irrevocable. Such an election shall become irrevocable no later than
the date that is 12 months prior to the Benefit Distribution Date that would
otherwise have been applicable to
the Participant’s Termination of Employment Benefit. Subject to the requirements of this Section 5.2(b), the Election
Form most recently accepted by the Committee that has become effective shall
govern the form of payout of the Participant’s Termination of Employment
Benefit.

 

(c)           The lump sum payment
shall be made, or installment payments shall commence, no later than
60 days after the Participant’s Benefit Distribution Date. Remaining
installments, if any, shall be paid no later than 60 days after each
anniversary of the Participant’s Benefit Distribution Date.

 

17

 

ARTICLE 6

Disability Benefit

 

6.1           Disability
Benefit. If a
Participant becomes Disabled prior to
the occurrence of a distribution event described in Article 5, as
applicable, the Participant shall receive his or her vested Account Balance in
the form of a lump sum payment (the “Disability Benefit”). The Disability
Benefit shall be calculated as of the close of business on or around the
Participant’s Benefit Distribution Date for such benefit, which shall be the
date on which the Participant becomes Disabled.

 

6.2           Payment
of Disability Benefit. The
Disability Benefit shall be paid to the Participant no later than 60 days after
the Participant’s Benefit Distribution Date.

 

ARTICLE 7

Death Benefit

 

7.1           Death
Benefit.  In the event of
a Participant’s death prior to the complete distribution of his or her vested
Account Balance, the Participant’s Beneficiary(ies) shall receive the
Participant’s unpaid vested Account Balance in a lump sum payment (the “Death
Benefit”). The Death Benefit shall be calculated as of the close of business on
or around the Benefit Distribution Date for such benefit, which shall be the
date on which the Committee is provided with proof that is satisfactory to the
Committee of the Participant’s death.

 

7.2           Payment
of Death Benefit.  The Death
Benefit shall be paid to the Participant’s Beneficiary(ies) no later than 60
days after the Participant’s Benefit Distribution Date.

 

ARTICLE 8

Beneficiary Designation

 

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

 

8.2           Beneficiary
Designation; Change; Spousal Consent.  A Participant shall designate his or her
Beneficiary by completing and signing the Beneficiary Designation Form, and
returning it to the Committee or its designated agent. A Participant shall have
the right to change a Beneficiary by completing, signing and otherwise
complying with the terms of the Beneficiary Designation Form and the
Committee’s rules and procedures, as in effect from time to time. If the
Participant names someone other than his or her spouse as a Beneficiary, the
Committee may, in its sole discretion, determine that spousal consent is
required to be provided in a form designated by the Committee, executed by such
Participant’s spouse and returned to the Committee. Upon the acceptance by the
Committee of a new Beneficiary Designation Form, all Beneficiary designations
previously filed shall be canceled. The Committee shall be entitled to rely on
the last Beneficiary Designation Form filed by the Participant and accepted by
the Committee prior to his or her death.

 

18

 

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

 

8.4           No
Beneficiary Designation. 
If a Participant fails to designate a Beneficiary as provided in
Sections 8.1, 8.2 and 8.3 above or, if all designated Beneficiaries
predecease the Participant or die prior to complete distribution of the
Participant’s benefits, then the Participant’s designated Beneficiary shall be
deemed to be his or her surviving spouse. If the Participant has no surviving
spouse, the benefits remaining under the Plan to be paid to a Beneficiary shall
be payable to the executor or personal representative of the Participant’s
estate.

 

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

 

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

 

ARTICLE 9

Leave of Absence

 

9.1           Paid
Leave of Absence.  If a
Participant is authorized by the Participant’s Employer to take a paid leave of
absence from the employment of the Employer, and such leave of absence does not
constitute a Termination of Employment, (a) the Participant shall continue to
be considered eligible for the benefits provided under the Plan, and (b) the
Annual Deferral Amount  shall
continue to be withheld during such paid leave of absence in accordance with
Section 3.2.

 

9.2           Unpaid
Leave of Absence.  If a
Participant is authorized by the Participant’s Employer to take an unpaid leave
of absence from the employment of the Employer for any reason, and such leave
of absence does not constitute a Termination of Employment, such Participant
shall continue to be eligible for the benefits provided under the Plan. During
the unpaid leave of absence, the Participant shall not be allowed to make any
additional deferral elections. However, if the Participant returns to employment,
the Participant may elect to defer an Annual Deferral Amount for the Plan Year
following his or her return to employment and for every Plan Year thereafter
while a Participant in the Plan, provided such deferral elections are otherwise
allowed and an Election Form is delivered to and accepted by the Committee for
each such election in accordance with Section 3.2 above.

 

ARTICLE 10

Termination of Plan, Amendment or Modification

 

10.1         Termination of Plan.  Although each Employer anticipates that it
will continue the Plan for an indefinite period of time, there is no guarantee
that any Employer will continue the Plan or will not terminate the Plan at any
time in the future. Accordingly, each Employer reserves the right to terminate
the Plan with respect to all of its Participants. In the event of a Plan termination no 

 

19

 

new deferral
elections shall be permitted for the affected Participants and such
Participants shall no longer be eligible to receive new company contributions.
However, after the Plan termination the Account Balances of such Participants
shall continue to be credited with Annual Deferral Amounts attributable to a
deferral election that was in effect prior to the Plan termination to the
extent deemed necessary to comply with Code Section 409A and related Treasury
Regulations, and additional amounts shall continue to credited or debited to
such Participants’ Account Balances pursuant to Section 3.7. The Measurement Funds available to Participants
following the termination of the Plan shall be comparable in number and type to
those Measurement Funds available to Participants in the Plan Year preceding
the Plan Year in which the Plan termination is effective. In addition,  following a Plan termination, Participant
Account Balances shall remain in the Plan and shall not be distributed until
such amounts become eligible for distribution in accordance with the other
applicable provisions of the Plan. Notwithstanding the preceding sentence, to the
extent permitted by Treas. Reg. §1.409A-3(j)(4)(ix), the Employer may provide that upon termination of
the Plan, all Account Balances of the Participants shall be distributed,
subject to and in accordance with any rules established by such Employer deemed
necessary to comply with the applicable requirements and limitations of Treas. Reg. §1.409A-3(j)(4)(ix).

 

10.2         Amendment.  Any Employer may, at any time, amend or
modify the Plan in whole or in part with respect to that Employer.
Notwithstanding the foregoing, no amendment or modification shall be effective
to decrease the value of a Participant’s vested Account Balance in existence at
the time the amendment or modification is made.

 

10.3         Plan
Agreement.  Despite the
provisions of Sections 10.1, if a Participant’s Plan Agreement contains
benefits or limitations that are not in this Plan document, the Employer may
only amend or terminate such provisions with the written consent of the
Participant.

 

10.4         Effect of
Payment.  The full payment
of the Participant’s vested Account Balance in accordance with the applicable
provisions of the Plan shall completely discharge all obligations to a
Participant and his or her designated Beneficiaries under this Plan, and the
Participant’s Plan Agreement shall terminate.

 

ARTICLE 11

Administration

 

11.1         Committee
Duties.  Except as
otherwise provided in this Article 11, this Plan shall be administered by a
Committee, which shall consist of the Board, or such committee as the Board
shall appoint. Members of the Committee may be Participants under this Plan.
The Committee shall also have the discretion and authority to (a) make,
amend, interpret, and enforce all appropriate rules and regulations for the
administration of this Plan, and (b) decide or resolve any and all questions,
including benefit entitlement determinations and interpretations of this Plan,
as may arise in connection with the Plan. Any individual serving on the
Committee who is a Participant shall not vote or act on any matter relating
solely to himself or herself. When making a determination or calculation, the
Committee shall be entitled to rely on information furnished by a Participant
or the Company.

 

11.2         Administration
Upon Change In Control. Within 120 days following a Change in
Control, the individuals who comprised the Committee immediately prior to the
Change in Control (whether 

 

20

 

or not such
individuals are members of the Committee following the Change in Control) may,
by written consent of the majority of such individuals, appoint an independent
third party administrator (the “Administrator”) to perform any or all of the
Committee’s duties described in Section 11.1 above, including without
limitation, the power to determine any questions arising in connection with the
administration or interpretation of the Plan, and the power to make benefit
entitlement determinations. Upon and after the effective date of such
appointment, (a) the Company must pay all reasonable administrative expenses
and fees of the Administrator, and (b) the Administrator may only be terminated
with the written consent of the majority of Participants with an Account
Balance in the Plan as of the date of such proposed termination.

 

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

 

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

 

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

 

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

 

ARTICLE 12

Other Benefits and Agreements

 

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

 

21

 

ARTICLE 13

Claims Procedures

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iv)          an explanation of the
claim review procedure set forth in Section 13.3 below; and

 

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

 

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

 

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

 

22

 

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

 

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

 

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

 

(a)           specific reasons for
the decision;

 

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

 

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

 

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

 

13.5         Legal
Action.  A Claimant’s
compliance with the foregoing provisions of this Article 13 is a mandatory
prerequisite to a Claimant’s right to commence any legal action with respect to
any claim for benefits under this Plan.  

 

ARTICLE 14

Trust

 

14.1         Establishment
of the Trust.  In order to provide assets from which to
fulfill its obligations to the Participants and their Beneficiaries under the
Plan, the Company may establish a trust by a trust agreement with a third
party, the trustee, to which each Employer may, in its discretion, contribute
cash or other property, including securities issued by the Company, to provide
for the benefit payments under the Plan (the “Trust”).

 

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

 

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

 

23

 

ARTICLE 15

Miscellaneous

 

15.1         Status of
Plan. The Plan is intended to be a plan that is not qualified
within the meaning of Code Section 401(a) and that “is unfunded and is
maintained by an employer primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees”
within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The Plan
shall be administered and interpreted (a) to the extent possible in a manner
consistent with the intent described in the preceding sentence, and (b) in
accordance with Code Section 409A and related Treasury guidance and
Regulations.

 

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

 

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

 

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

 

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

 

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

 

24

 

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

 

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

 

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

 

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

 

On Assignment,
Inc.

Attn: Deferred
Compensation

Plan Committee

26651 West
Agoura Road

Calabasas,
CA  91302

 

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

 

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

 

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

 

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

 

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

 

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

 

25

 

the case may
be, and shall be a complete discharge of any liability under the Plan for such
payment amount.

 

15.15       Domestic
Relations Orders.  If
necessary to comply with a domestic relations order, as defined in Code Section
414(p)(1)(B), pursuant to which a court has determined that a spouse or former
spouse of a Participant has an interest in the Participant’s benefits under the
Plan, the Committee shall have the right to immediately distribute the spouse’s
or former spouse’s interest in the Participant’s benefits under the Plan to
such spouse or former spouse.

 

15.16       Distribution
in the Event of Income Inclusion Under Code Section 409A. If any
portion of a Participant’s Account Balance under this Plan is required to be
included in income by the Participant prior to receipt due to a failure of this
Plan to comply with the requirements of Code Section 409A and related Treasury
Regulations, the Committee may determine that such Participant shall receive a
distribution from the Plan in an amount equal to the lesser of (i) the portion
of his or her Account Balance required to be included in income as a result of
the failure of the Plan to comply with the requirements of Code Section 409A
and related Treasury Regulations, or (ii) the unpaid vested Account Balance.

 

15.17       Deduction
Limitation on Benefit Payments. If an Employer reasonably
anticipates that the Employer’s deduction with respect to any distribution from
this Plan would be limited or eliminated by application of Code Section 162(m),
then to the extent permitted by Treas.
Reg. §1.409A-2(b)(7)(i), payment
shall be delayed as deemed necessary to ensure that the entire amount of any
distribution from this Plan is deductible. Any amounts for which distribution is
delayed pursuant to this Section shall continue to be credited/debited with
additional amounts in accordance with Section 3.7. The delayed amounts (and any
amounts credited thereon) shall be distributed to the Participant (or his or
her Beneficiary in the event of the Participant’s death) at the earliest date
the Employer reasonably anticipates that the deduction of the payment of the
amount will not be limited or eliminated by application of Code Section 162(m).
In the event that such date is determined to be after a Participant’s
Termination of Employment and the Participant to whom the payment relates is
determined to be a Specified Employee, then to the extent deemed necessary to
comply with Treas. Reg. §1.409A-3(i)(2), the delayed payment shall
not made before the end of the six-month period following such Participant’s
Termination of Employment.

 

IN WITNESS
WHEREOF, the Company has signed this Plan document as of September 4, 2008.

 

	
   

  	
  “Company”

  
	
   

  	
   

  
	
   

  	
  On
  Assignment, Inc.

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Peter T.
  Dameris

  
	
   

  	
  Name: Peter
  T. Dameris

  
	
   

  	
  Title:  Chief Executive Officer and President

  

 

26

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