Document:

Exhibit 4.05

 

SOUTHWESTERN PUBLIC SERVICE
COMPANY

 

and

 

 

JPMORGAN
CHASE BANK, N.A.

as Successor to

 

 

THE
CHASE MANHATTAN BANK,

as Trustee

 

 

FOURTH
SUPPLEMENTAL INDENTURE

 

Dated
as of            

 

 

Supplementing
the Indenture

 

Dated
as of February 1, 1999

 

 

THIS FOURTH SUPPLEMENTAL INDENTURE, dated as of [•] is between
SOUTHWESTERN PUBLIC SERVICE COMPANY, a New Mexico corporation (hereinafter
called the “Issuer” or the “Company”), having its principal office at Tyler at
Sixth Street, Amarillo, Texas 79101, and JPMORGAN CHASE BANK, N.A, as successor
to THE CHASE MANHATTAN BANK, as Trustee (hereinafter called the “Trustee”),
having its office at 4 New York Plaza, 15th Floor, New York, New York 10004.

 

Recitals
of the Issuer

 

The Issuer and the Trustee have heretofore entered
into an Indenture, dated as of February 1, 1999, a First Supplemental
Indenture, dated as of March 1, 1999, a Second Supplemental Indenture
dated as of October 1, 2001 and a Third Supplemental Indenture dated as of
October 1, 2003 (such Indenture, as supplemented by the First Supplemental
Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture
and this Supplemental Indenture, being hereinafter referred to as the “Indenture”),
relating to the issuance at any time or from time to time of its Securities on
terms to be specified at the time of issuance. Terms used and not otherwise
defined herein shall (unless the context otherwise clearly requires) have the
respective meanings given to them in the Indenture.

 

The Indenture provides in Article Two thereof
that, prior to the issuance of Securities of any series, the form of such
Securities and the terms applicable to such series shall be established
in, or pursuant to, the authority granted in a resolution of the Board of Directors
(delivered to the Trustee in the form of a Bond Resolution) or established
in one or more indentures supplemental thereto.

 

The Issuer desires by this Supplemental Indenture,
among other things, to establish the form of the Securities of a series, to
be titled Series [•] Senior Notes, [•]% due [•] of the Issuer, and to establish the terms applicable to
such series, pursuant to Sections 2.01 and 10.01 of the Indenture. The
Issuer has duly authorized the execution and delivery of this Supplemental Indenture.

 

Article Ten of the Indenture provides that the
Issuer, when authorized by a resolution of its Board of Directors, and the
Trustee may from time to time and at any time amend the Indenture without
the consent of Securityholders for certain purposes enumerated in Section 10.01
thereof, including purposes set forth in subsection (4) of said Section 10.01.

 

The execution and delivery of this Supplemental
Indenture by the parties hereto are in all respects authorized by the
provisions of the Indenture. All things necessary have been done to make this
Supplemental Indenture a valid agreement of the Issuer, in accordance with its
terms.

 

NOW, THEREFORE, THIS FOURTH SUPPLEMENTAL INDENTURE
WITNESSETH:

 

For and in consideration of the premises, it is
mutually covenanted and agreed, as follows:

 

 

ARTICLE I.

ESTABLISHMENT OF SERIES [•] NOTES, [•]% DUE [•]

 

Section 1.01. The title of the series of the
Securities established by this Supplemental Indenture shall be Series [•] Senior Notes,
[•]% due [•] of the Issuer
(hereinafter called the “Series [•] Notes”). The Series [•] Notes shall be issued in registered form substantially
in the form set forth in Exhibit A hereto (which is hereby
incorporated herein and made a part hereof), subject to changes in the form thereof
made by the Issuer and acceptable to the Trustee.

 

Section 1.02. The Series [•] Notes shall
be limited to $[•]
in aggregate principal amount.

 

Section 1.03. The Series [•] Notes may be
issued in whole or in part as one or more Global Securities and The
Depository Trust Company, or a nominee thereof, shall be the Depository for
such Global Security or Global Securities. The Depository for such Global
Security or Global Securities representing Series [•] Notes may surrender one or more Global Securities
representing Series [•] Notes in exchange in whole or in part for individual Series [•] Notes on such
terms as are acceptable to the Issuer and such Depository and otherwise subject
to the terms of Section 2.12 of the Indenture.

 

Section 1.04. The Issuer hereby appoints, or
confirms the appointment of, JPMorgan Chase Bank, N.A., as the initial Trustee,
Transfer Agent and Paying Agent, subject to the provisions of the Indenture
with respect to resignation, removal and succession, and subject, further, to the
right of the Issuer to appoint additional agents (including Paying Agents).

 

Section 1.05. The terms of the Series [•] Notes shall
be as set forth in Exhibit A hereto, and shall include the payment and
other terms reflected on the Series [•] Notes as actually executed, authenticated and delivered
under the Indenture.

 

ARTICLE II.

 

MISCELLANEOUS

 

Section 2.01. The recitals contained herein shall
be taken as the statements of the Issuer, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no
representation as to the validity or sufficiency of this Supplemental
Indenture.

 

Section 2.02. The Indenture, as supplemented by
this Supplemental Indenture, is in all respects hereby adopted, ratified and
confirmed.

 

Section 2.03. This Supplemental Indenture may be
executed in any number of counterparts, and on separate counterparts, each of
which shall be an original; but such counterparts shall together constitute but
one and the same instrument.

 

Section 2.04. If any provision of this
Supplemental Indenture limits, qualifies or conflicts with the duties imposed
by any of Sections 310 to 317, inclusive, of the Trust Indenture 

 

2

 

Act of 1939, as amended by the Trust Indenture Reform Act of 1990,
through operation of Section 318(c), such imposed duties shall control.

 

Section 2.05. The Article headings herein
are for convenience only and shall not affect the interpretation hereof.

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused
this Fourth Supplemental Indenture to be duly executed, and their respective
corporate seals to be hereunto affixed and attested as of the [•] day of [•], [•].

 

	
   

  	
  SOUTHWESTERN PUBLIC SERVICE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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  [Seal]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
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  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
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  [Seal]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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4

 

EXHIBIT A

 

	
  CUSIP: [•]

  	
   

  	
  $                     

  

 

THIS SECURITY IS A GLOBAL SECURITY REGISTERED IN THE
NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE THEREOF AND UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES
REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS
A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (55
WATER STREET, NEW YORK, NEW YORK), TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

SOUTHWESTERN PUBLIC
SERVICE COMPANY

 

Series [•] Senior Notes,
[•]% due [•]

 

Southwestern Public Service Company promises to pay to
                      
or registered assigns the principal sum of                       
Dollars on [•].

 

Interest Payment Dates:                 [•] and [•]

Record Dates:                     [•] and [•]

 

A-1

 

SOUTHWESTERN PUBLIC
SERVICE COMPANY

 

Series [•] Senior Notes,
[•]% due [•]

 

1. Interest.

 

Southwestern Public Service Company (“Company”), a
corporation organized and existing under the laws of the State of New Mexico,
promises to pay interest on the principal amount of this Note at the rate per
annum shown above. The Company will pay interest on [•] to the holder of record on [•] and on [•] to the holder of record on [•] of each year commencing [•], 2006. Interest on this Note will accrue from the most
recent date to which interest has been paid or, if no interest has been paid,
from [•]. Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

 

2. Method of
Payment.

 

The Company will pay interest on this Note to the
person who is the registered Holder of the Note at the close of business on the
record date for the next interest payment date, except as otherwise provided in
the Indenture. This Note must be surrendered to a Paying Agent to collect
principal payments. The Company will pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts. The Company may pay principal and interest by check
payable in such money. It may mail an interest check to the Holder’s
registered address.

 

3. Bond Agents.

 

Initially, JPMorgan Chase Bank, N.A., 2001 Bryan
Street, 9th Floor, Dallas, Texas  75201
Attention: Institutional Trust Services, will act as Paying Agent and Transfer
Agent. The Company may change any Paying Agent or Transfer Agent without
notice or provide for more than one such agent. The Company or any Affiliate may act
in any such capacity. Subject to certain conditions, the Company may change
the Trustee.

 

4. Indenture.

 

This Note is one of a series of securities issued
under an Indenture dated as of February 1, 1999 (“Indenture”) between the
Company and JPMorgan Chase Bank, N.A., as successor to The Chase Manhattan Bank
(“Trustee”). The terms of this Note include those stated in the Indenture
including in the Fourth Supplemental Indenture dated as of [•] creating the Notes of this series and those made part of
the Indenture by the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb).
Securityholders are referred to the Indenture, the Supplemental Indenture and
the Act for a statement of such terms.

 

5. Redemption.

 

[To be provided]

 

A-2

 

6. Notice of
Redemption.

 

Notice of redemption will be mailed at least 30 days
before the date fixed for redemption to the Holder hereof to be redeemed at
such Holder’s registered address.

 

A notice of redemption may provide that it is
subject to the occurrence of any event before the date fixed for such
redemption as described in such notice (“Conditional Redemption”) and such
notice of Conditional Redemption shall be of no effect unless all such
conditions to the redemption have occurred before such date or have been waived
by the Company.

 

7. Denominations,
Transfer, Exchange.

 

The Notes of this series are in registered form without
coupons in denominations of $1000 and whole multiples of $1000. The transfer of
this Note may be registered and this Note may be exchanged as provided
in the Indenture. The Transfer Agent may require a holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay
any taxes and fees required by law or the Indenture. The Transfer Agent need
not exchange or register the transfer of this Note or portion thereof selected
for redemption. Also, it need not exchange or register the transfer of this
Note for a period of 15 days before a selection of Securities to be redeemed.

 

8. Persons Deemed
Owners.

 

The registered holder of this Note may be treated
as its owner for all purposes.

 

9. Amendments and
Waivers.

 

Subject to certain exceptions, the Indenture or the
Notes of this series may be amended with the consent of the holders
of a majority in principal amount of the securities of all series affected
by the amendment. Subject to certain exceptions, a default on a series may be
waived with the consent of the holders of a majority in principal amount of the
series.

 

Without the consent of any Securityholder, the
Indenture or the Notes of this series may be amended, among other
things, to cure any ambiguity, omission, defect or inconsistency; to provide
for assumption of Company obligations to Securityholders; or to make any change
that does not materially adversely affect the rights of any Securityholder.

 

10. Restrictive
Covenants.

 

The Notes of this series are unsecured general
obligations of the Company limited to $[•] principal amount. The Indenture does not limit other
unsecured debt.

 

11. Successors.

 

When a successor assumes all the obligations of the
Company under the Securities and the Indenture, the Company will be released
from those obligations.

 

A-3

 

12. Defeasance
Prior to Redemption or Maturity.

 

Subject to certain conditions as set forth in Article 8
of the Indenture, the Company at any time may terminate some or all of its
obligations under this Note and the Indenture if the Company deposits with the
Trustee money or U.S. Government Obligations for the payment of principal and
interest on this Note to redemption or maturity. U.S. Government Obligations
are securities backed by the full faith and credit of the United States of
America or certificates representing an ownership interest in such Obligations.

 

13. Defaults and
Remedies.

 

An Event of Default includes: default for 60 days in
payment of interest on the Notes of this series; default in payment of
principal on the Notes of this series; default by the Company for 90 days after
notice to it in the performance of any of its other agreements applicable to
the Notes of this series; certain events of bankruptcy or insolvency; and any
other Event of Default provided for in this series. If an Event of Default
occurs and is continuing, the Trustee or the holders of at least 25% in
principal amount of the Notes of this series may declare the
principal of all the Notes of this Series to be due and payable
immediately.

 

The Securityholders of a majority in principal amount
of Notes of this series may, by notice to the Trustee, rescind an
acceleration so long as the rescission would not conflict with any judgment or
decree and if all existing events of default on the Notes of this series have
been cured or waived except non-payment of principal or interest that has
become due solely because of the acceleration.

 

Securityholders may not enforce the Indenture or
the Notes of this series except as provided in the Indenture. The Trustee may require
indemnity satisfactory to it before it enforces the Indenture or the Notes of
this series. Subject to certain limitations, holders of a majority in principal
amount of the Notes of this series may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from
Securityholders notice of any continuing default (except a default in payment
of principal or interest) if it determines that withholding notice is in their
interests. The Company must furnish annual compliance certificates to the
Trustee.

 

14. Trustee
Dealings with Company.

 

JPMorgan Chase Bank, N.A., the Trustee under the
Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Company or its
Affiliates, and may otherwise deal with the Company or its Affiliates, as
if it were not Trustee.

 

15. No Recourse
Against Others.

 

A director, officer, employee or stockholder, as such,
of the Company shall not have any liability for any obligations of the Company
under this Note or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. The Holder hereof by accepting
this Note waives and releases all such liability. The waiver and release are part of
the consideration for the issue of this Note.

 

A-4

 

16. Authentication.

 

This Note shall not be valid until authenticated by a
manual signature of the Trustee.

 

17. Abbreviations.

 

Customary abbreviations may be used in the name
of a Securityholder or an assignee, such as: TEN COM (tenants in common), TEN
ENT (tenants by the entireties), JT TEN (joint tenants with right of
survivorship and not as tenants in common), CUST (custodian), and U/G/M/A (Uniform Gifts
to Minors Act).

 

The Company will furnish to the Holder hereof upon
written request and without charge a copy of the Indenture including the
Supplemental Indenture, which contains the text of this Note in larger type. Requests
may be made to: Southwestern Public Service Company, c/o Xcel Energy Inc.,
800 Nicollet Mall, Suite 2900, Minneapolis, Minnesota 55402, Attention:  Corporate Secretary.

 

A-5

 

	
   

  	
  Dated: [•]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SOUTHWESTERN PUBLIC SERVICE

  COMPANY

  
	
   

  	
   

  
	
   

  	
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  Attest:

  
	
   

  	
   

  	
   

  
	
   

  	
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  (Seal)

  
	
   

  	
   

  	
   

  
	
  Authenticated:

  JPMORGAN CHASE BANK, N.A.,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Authorized Signature

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
				

 

A-6

 

ASSIGNMENT
FORM

	
  To assign this Note,
  fill in the form below:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  I or we assign and transfer this Note to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Insert assignee’s Soc. Sec. or tax I.D. no.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Print or type assignee’s
  name, address and zip code)

  	
   

  
						

 

and irrevocably
appoint         agent to transfer this
Note on the books of the Company. That agent may substitute another to act
for him.

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  

 

(Sign exactly as your
name appears on the other side of This Note)

 

A-7Exhibit 10.7

 

AMENDED AND RESTATED

 

SVB
FINANCIAL GROUP

RETENTION
PROGRAM PLAN

 

Effective
as of January 1, 2004

Amended
as of December 21, 2005

 

PURPOSE

 

The purpose of the Amended and Restated SVB
Financial Group Retention Program Plan is to:

 

•             Recognize
the valuable contributions made by certain key individuals of the Company; and

•             Retain
and motivate those key individuals who are critical to the Company’s long-term
success.

 

The Plan is
designed to allow individuals to share in: (i) returns from designated
investments made by the Company and its Affiliates, including investments in
certain venture capital funds (including the SVB Strategic Investors Funds and
Silicon Valley BancVentures Funds) and certain direct equity investments; (ii) income
realized from the exercise of, and the subsequent sale of underlying shares of,
warrants held by the Company; and (iii) other designated amounts, as
determined by the Committee.

 

This Plan
shall be effective as of January 1, 2004, amended December 21, 2005.

 

DEFINITIONS

 

“Affiliate” means any parent corporation or
subsidiary corporation (including Bank), whether now or hereafter existing, as
those terms are defined in sections 424e) of the Internal Revenue Code of 1986,
as amended.

 

“Bank” means Silicon Valley Bank, a California
corporation and a wholly-owned subsidiary of the Company.

 

“Committee” means the Compensation Committee
of the Board of Directors of the Company.

 

“Company” means SVB Financial Group, a
Delaware corporation.

 

 “Participant” means an
employee chosen to participate in the Plan for any RP Year by the Committee in
its sole discretion and who meets the eligibility requirements provided under
this Plan.

 

“Plan” means this
Amended and Restated SVB Financial Group Retention Program Plan.

 

“Pool” means in the case of any RP Year, the
pool of returns on investments and other amounts designated by the Committee
for such RP Year under this Plan.

 

“Program” means the Company’s Retention
Program.

 

1

 

“RP Year” means a full fiscal year of the
Company.

 

“Steering Committee” means the Steering
Committee of the Company.

 

ADMINISTRATION

 

The
Committee shall administer the Plan and shall have full power and authority to
construe, interpret and administer the Plan, including waiver of any
requirements under the Plan. The Committee may, at its discretion, delegate its
duties hereunder to the Steering Committee; provided,
however, the following
must be ratified by the Committee: (i) the allocated investments and other
amounts to be included in the Plan for each respective RP Year, and (ii) the
percentage interests in the Plan of all Steering Committee members.

 

All
determinations and decisions of the Committee shall be final, conclusive and
binding upon all persons.

 

ELIGIBILITY FOR PARTICIPATION

 

To be eligible to participate in the Plan for
any RP Year, employee Participants must: (i) be employed with the Company
or its Affiliates prior to such RP Year, (ii) be at a senior management or
partner level (or such equivalent level as determined by the Committee) prior
to such RP Year, and (iii) be ineligible to participate in other separate
variable pay plans or programs of the Company (such as Direct Drive Incentive
Compensation Plan or other similar variable compensatory plans). Additionally,
all Participants shall abide by the Company’s Code of Conduct, Venture Capital
Fund Investment Policies and Procedures, and any other applicable policies and
procedures of the Company and/or its Affiliates as determined by the Committee.

 

All Participants for each RP Year will be
selected by the Committee, at its sole discretion. Participation by Steering
Committee members must be ratified by the Committee if the Committee’s
administrative powers are delegated to the Steering Committee.

 

ANNUAL PROGRAM

 

Pool

 

Under the Plan, the Committee will, on an
annual basis, allocate certain investments and other amounts for inclusion in
the Plan for the respective RP Year. Aggregate net returns on such designated
investments and amounts will constitute the Pool from which distributions to
Participants will be made based on the Participants’ respective percentage
interests in the Plan. Such allocations will be determined on or prior to March 1
of the applicable RP Year (or such later date as the Committee determines).

 

Term

 

The Company’s obligation to make
distributions under the Plan for an RP Year will be for ten (10) years. Final
distributions from the Pool will be made to Participants on or before March 15
(or if such date is a Saturday or Sunday, the next business day) of the year
following the tenth year after the RP Year.

 

2

 

Participants’
Percentage Interests

 

Each
Participant’s share of the Pool for each RP Year will be determined by the
Steering Committee. Participants will be notified in writing of his or her
percentage interest within sixty (60) days of such determination.

 

Distributions

 

All
distributions out of the Pool will be made by March 15 of the year
following the Company’s receipt. Distributions will be paid to Participants
only to the extent returns are received by the Company, subject to the terms
herein. If no returns are received by the Company on the investments allocated
for a specific RP Year, then no distributions will be made in the following
year.

 

Any returns which the Company may receive
in the form of stock will be retained by the Company until such time as
the Company, in its sole discretion, liquidates the stock. The Participants’
percentage interest in the proceeds realized from the liquidation of such stock
will then be paid to the Participants by March 15 following the year of
liquidation.

 

Payment of any distributions under the Plan may be
postponed, reduced and/or eliminated pursuant to applicable law or regulation
or as otherwise determined by federal and state regulations to which the
Company and its Affiliates are subject, as determined by the Committee.

 

Distributions under the Plan are accrued on a
quarterly basis.

 

Eligibility
for Distributions

 

In order to be entitled to receive
distributions, Participants must be employed by the Company or its Affiliates
on the date distributions are paid to Participants, except as otherwise
provided herein, and have satisfactory performance reviews.

 

A Participant whose performance is
unsatisfactory, as determined by such Participant’s supervisor in his or her
reasonable discretion, forfeits any distributions which the Participant would
otherwise have received by the March 15 following the year of
unsatisfactory performance. If the Participant’s performance improves to
satisfactory or above in a subsequent year, the Participant will again become
eligible to receive distributions under the Plan for such subsequent year or
years, until the expiration of the applicable 10-year term.

 

NO ASSURANCES OF DISTRIBUTIONS

 

No assurances will be made by the Company or
any of its Affiliates to any Participant as to payment of any distributions. No
Participant may have any claim against the Company in the event such
Participant does not receive a distribution because the Company did not realize
any returns from the designated investments and amounts.

 

TERMINATION OF
EMPLOYMENT

 

Except as provided below, Participants must
be employed by the Company on the date the distributions are actually paid for
any RP Year. A Participant who terminates employment with the Company forfeits
his or her interest in the Plan for all RP Years, whether or not accrued. A
transfer of employment between the Company and its Affiliates shall not be
deemed a termination of employment.

 

3

 

Notwithstanding the foregoing, any
Participant:

 

(i)                                     (with
respect to Program participation for the 1998, 1999, 2000 and 2001 RP Years
only) whose employment terminates without cause, as determined by the Committee
in its sole discretion, and who has been: (1) an employee of the Company
or its Affiliates for 7 or more consecutive years, and (2) a Participant
in 5 or more Program plans; or

 

(ii)                                  (with
respect to Program participation for any RP Year) who retires from the Company
or any Affiliate at the age of 55 or over, and whose age at the time of
retirement, plus years of service with the Company or its Affiliates, is equal
to or greater than 60;

 

shall be entitled to continued participation in the Plan for the
applicable RP Year(s), so long as Participant:

 

(i)                                     executes a general
waiver and release, in a form satisfactory to the Company, and

 

(ii)                                  during the initial
three-year period following such termination of employment, to the extent permitted
by applicable law: (1) is bound by, or continues to be bound the Company’s
standard Confidential Information and Invention Assignment Agreement for
Employees (or similar confidentiality agreement), (2) does not compete
with the Company, and (3) does not disparage the Company. (After such
three-year period, Participant is entitled to continued participation without
any limitations.)

 

PRIOR YEAR PLANS

 

Nothing in this Plan shall be construed as
reducing any benefits, or taking away any rights, granted to any Participant
during any RP Year prior to January 1, 2004, unless consented to in
writing by such Participant.

 

WITHHOLDING

 

The Company will withhold from the payment of
any distribution hereunder any amount required to be withheld for taxes.

 

NO RIGHTS TO EMPLOYMENT

 

Nothing in this Plan shall interfere with or
limit in any way the right of the Company or any Affiliate to terminate any
Participant’s employment at any time, nor confer upon any Participant any right
to continue in the employ of the Company or any Affiliate.

 

NO ASSIGNMENT; CERTAIN RIGHTS OF PARTICIPANTS

 

Except as
otherwise required by applicable law, any interest, benefit, payment, claim or
right of any participant under the Plan shall not be sold, transferred,
assigned, pledged, encumbered or hypothecated by any Participant and shall not
be subject in any manner in to any claims of any creditor of any Participant or
beneficiary, and any attempt to take any such action shall be null and void. During
the lifetime of any Participant, payment of a distribution shall only be made
to such Participant. Notwithstanding the foregoing, the Committee may establish
such procedures as it deems necessary for a Participant to designate a
beneficiary to whom any amounts would be payable in the event of any
Participant’s death.

 

4

 

To the extent
a Participant or other person acquires a right to receive a distribution
hereunder, such right shall be no greater than the right of an unsecured
general creditor of the Company or any Affiliate.

 

ARBITRATION

 

Any and all disputes or controversies arising
from or regarding the interpretation, performance, enforcement or termination
of the Plan will be resolved by final and binding arbitration under the
procedures set forth in the Arbitration Procedures and the then existing rules of
practice and procedure of the Judicial Arbitration and Mediation Services, Inc.
(or its successor entity).

 

SUSPENSION, REVISION, AMENDMENT OR
TERMINATION OF THE PLAN

 

The Committee may, from time to time,
suspend, revise, amend or terminate the Plan.

 

GOVERNING LAW

 

The Plan shall be governed by the laws of
California.

 

*    *    *

 

5

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