Document:

<PAGE>
                                                                    Exhibit 10.4

                                ROCK-TENN COMPANY

                      SUPPLEMENTAL RETIREMENT SAVINGS PLAN

                                                            AMENDED AND RESTATED
                                                       EFFECTIVE JANUARY 1, 2006

<PAGE>

                                ROCK-TENN COMPANY
                      SUPPLEMENTAL RETIREMENT SAVINGS PLAN

     Effective as of the 1st day of January, 2006, Rock-Tenn Company (the
"Controlling Company") hereby amends and restates the Rock-Tenn Company
Supplemental Retirement Savings Plan (the "Plan").

                             BACKGROUND AND PURPOSE

          A. Background. The Plan was initially adopted effective as of May 15,
2003. Effective January 1, 2006, the Plan, as set forth in this document, is
intended and should be construed as a restatement and continuation of the Plan
as previously in effect.

          B. Goal. The Controlling Company desires (i) to provide its designated
key management employees (and those of its affiliated companies that participate
in the Plan) with an opportunity to defer the receipt and income taxation of a
portion of such employees' annual base salary and other designated payments, and
(ii) to provide certain of such employees with additional deferred compensation
as the Controlling Company and/or certain other participating companies may
determine.

          C. Purpose. The purpose of the Plan document is to set forth the terms
and conditions pursuant to which these deferrals and contributions may be made
and to describe the nature and extent of the employees' rights to such amounts.

          D. Type of Plan. The Plan constitutes an unfunded, nonqualified
deferred compensation plan that benefits certain designated employees who are
within a select group of key management or highly compensated employees. Except
with regard to amounts that were earned and vested prior to January 1, 2005, it
is intended that this Plan comply with the requirements of Section 409A of the
Internal Revenue Code 1986, as amended.

                             STATEMENT OF AGREEMENT

          To amend and restate the Plan with the purposes and goals as
hereinabove described, the Controlling Company hereby sets forth the terms and
provisions of the Plan as follows:

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
ARTICLE I DEFINITIONS....................................................      1
   1.1    Account........................................................      1
   1.2    Administrative Committee.......................................      1
   1.3    Beneficiary....................................................      1
   1.4    Board..........................................................      1
   1.5    Code...........................................................      1
   1.6    Compensation...................................................      1
   1.7    Compensation Committee.........................................      1
   1.8    Controlled Group...............................................      1
   1.9    Controlling Company............................................      1
   1.10   Deferral Contributions.........................................      1
   1.11   Deferral Election..............................................      2
   1.12   Effective Date.................................................      2
   1.13   Eligible Employee..............................................      2
   1.14   ERISA..........................................................      2
   1.15   Financial Hardship.............................................      2
   1.16   Investment Election............................................      3
   1.17   Investment Funds...............................................      3
   1.18   Key Employee...................................................      3
   1.19   Nonpayment Period..............................................      3
   1.20   Participant....................................................      4
   1.21   Participating Company..........................................      4
   1.22   Plan...........................................................      4
   1.23   Plan Year......................................................      4
   1.24   RTS Controlled Group...........................................      4
   1.25   Surviving Spouse...............................................      4
   1.26   Trust or Trust Agreement.......................................      4
   1.27   Trustee........................................................      4
   1.28   Trust Fund.....................................................      4
   1.29   Valuation Date.................................................      4

ARTICLE II ELIGIBILITY AND PARTICIPATION.................................      5
   2.1    Eligibility....................................................      5
   2.2    Procedure for Admission........................................      5
   2.3    Cessation of Eligibility.......................................      5
       (a)   Cessation of Eligible Status................................      5
       (b)   Inactive Participant Status.................................      5

ARTICLE III PARTICIPANTS' ACCOUNTS; DEFERRALS AND CREDITING..............      6
   3.1    Participants' Accounts.........................................      6
       (a)   Establishment of Accounts...................................      6
       (b)   Nature of Contributions and Accounts........................      6
       (c)   Several Liabilities.........................................      6
       (d)   General Creditors...........................................      6
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                         <C>
   3.2    Deferral Contributions.........................................      6
   3.3    Procedure for Elections........................................      7
       (a)   Effective Date..............................................      7
       (b)   Term........................................................      7
       (c)   Amount......................................................      7
       (d)   Revocation..................................................      7
       (e)   Crediting of Deferred Compensation..........................      8
   3.4    Debiting of Distributions......................................      8
   3.5    Crediting of Earnings..........................................      8
   3.6    Vesting........................................................      8
   3.7    Notice to Participants of Account Balances.....................      8
   3.8    Good Faith Valuation Binding...................................      8
   3.9    Errors and Omissions in Accounts...............................      9

ARTICLE IV INVESTMENT FUNDS..............................................     10
   4.1    Selection by Administrative Committee..........................     10
   4.2    Participant Direction of Deemed Investments....................     10
       (a)   Nature of Participant Direction.............................     10
       (b)   Participant Elections.......................................     10
       (c)   Administrative Committee Discretion.........................     10

ARTICLE V PAYMENT OF ACCOUNT BALANCES....................................     11
   5.1    Benefit Payments Upon Termination of Service for Reasons
          Other Than Death...............................................     11
       (a)   General Rule Concerning Benefit Payments....................     11
       (b)   Timing of Distribution......................................     11
   5.2    Form of Distribution...........................................     12
       (a)   Single-Sum Payment..........................................     12
       (b)   Quarterly Installments......................................     12
       (c)   Changing Form of Distribution...............................     12
   5.3    Death Benefits.................................................     12
   5.4    Hardship Distributions.........................................     13
   5.5    Beneficiary Designation........................................     13
       (a)   General.....................................................     13
       (b)   No Designation or Designee Dead or Missing..................     13
   5.6    Taxes..........................................................     14
   5.7    Offset of Benefit by Amounts Owed to the Controlling Company...     14

ARTICLE VI CLAIMS........................................................     15
   6.1    Rights.........................................................     15
   6.2    Initial Claim..................................................     15
   6.3    Appeal.........................................................     15
   6.4    Satisfaction of Claims.........................................     16

ARTICLE VII SOURCE OF FUNDS; TRUST.......................................     17
   7.1    Source of Funds................................................     17
   7.2    Trust..........................................................     17
       (a)   Establishment...............................................     17
       (b)   Distributions...............................................     17
       (c)   Status of the Trust.........................................     17
   7.3    Controlling Company Guaranty...................................     17
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                         <C>
       (a)   Obligation Parameters.......................................     17
       (b)   Limit on Controlling Company's Obligation...................     18
       (c)   Nature of Obligation........................................     18
   7.4    Plan Expenses..................................................     18

ARTICLE VIII ADMINISTRATIVE COMMITTEE....................................     19
   8.1    Action.........................................................     19
   8.2    Rights and Duties..............................................     19
   8.3    Compensation, Indemnity and Liability..........................     20

ARTICLE IX AMENDMENT AND TERMINATION.....................................     21
   9.1    Amendments.....................................................     21
   9.2    Termination of Plan............................................     21

ARTICLE X MISCELLANEOUS..................................................     23
   10.1   Taxation.......................................................     23
   10.2   No Employment Contract.........................................     23
   10.3   Headings.......................................................     23
   10.4   Gender and Number..............................................     23
   10.5   Assignment of Benefits.........................................     23
   10.6   Legally Incompetent............................................     24
   10.7   Governing Law..................................................     24

EXHIBIT A PARTICIPATING COMPANIES........................................    A-1
EXHIBIT B SENIOR EXECUTIVE SUBPLAN.......................................    B-1
</TABLE>

                                      iii

<PAGE>

                                    ARTICLE I
                                   DEFINITIONS

          For purposes of the Plan, the following terms, when used with an
initial capital letter, will have the meaning set forth below unless a different
meaning plainly is required by the context.

     1.1 Account means, with respect to a Participant or Beneficiary, the total
dollar amount or value evidenced by the last balance posted and actually
credited in accordance with the terms of the Plan to the account record
established for such Participant or Beneficiary.

     1.2 Administrative Committee means the committee appointed by the
Compensation Committee to administer the Plan, as provided in Article VIII;
provided, if for any period of time the Compensation Committee has not
specifically appointed any individuals to serve as members of the Administrative
Committee with respect to all or any portion of the Plan, the members of the
Compensation Committee shall serve as the Administrative Committee with respect
to the Plan or such portion of the Plan during such period.

     1.3 Beneficiary means, with respect to a Participant, the person(s)
designated or identified in accordance with Section 5.5 to receive any death
benefits that may be payable under the Plan upon the death of the Participant.

     1.4 Board means the Board of Directors of the Controlling Company.

     1.5 Code means the Internal Revenue Code of 1986, as amended.

     1.6 Compensation means, except as otherwise provided on an exhibit to the
Plan, with respect to an employee for a Plan Year, such employee's base pay for
such Plan Year as determined by the Administrative Committee, including any
portion of such base pay that is deferred under the Plan or under a Code Section
401(k) plan or Code Section 125 plan maintained by a Participating Company but
excluding any portion of such base pay that is paid or made available to the
employee during the Plan Year while he is not an active Participant.

     1.7 Compensation Committee means the Compensation Committee of the Board.

     1.8 Controlled Group means all of the companies that are either (i) members
of the same controlled group of corporations [within the meaning of Code Section
414(b)] or (ii) under common control [within the meaning of Code Section 414(c)]
with the Controlling Company.

     1.9 Controlling Company means Rock-Tenn Company.

     1.10 Deferral Contributions mean, for each Plan Year, that portion of a
Participant's Compensation deferred under the Plan pursuant to Section 3.2.

                                        1

<PAGE>

     1.11 Deferral Election means, except as otherwise provided on an exhibit to
the Plan, a written, electronic or other form of election pursuant to which a
Participant may elect to defer under the Plan a portion of his Compensation.

     1.12 Effective Date means January 1, 2006, the date that this restatement
of the Plan generally will be effective. The Plan was initially effective as of
May 15, 2003.

     1.13 Eligible Employee means, for a Plan Year or portion of a Plan Year, a
member of a select group of highly compensated or key management employees who
is selected by the Administrative Committee or the Compensation Committee, on
either an individual or group basis, as eligible to participate in the Plan. In
general, the Administrative Committee will determine, based on annualized data
for a portion of one Plan Year, (i) which employees of members of the Controlled
Group will be highly compensated employees under Code Section 414(q) for the
next Plan Year and (ii) which of the employees who are so determined to be
highly compensated employees will be eligible to make Deferral Contributions
and, therefore, actively participate in the Plan for such next Plan Year. In
addition, the Compensation Committee may designate any other key management or
highly compensated employees as eligible to actively participate in the Plan or
any portion thereof for a Plan Year or any portion thereof.

     1.14 ERISA means the Employee Retirement Income Security Act of 1974,
as amended.

     1.15 Financial Hardship means a severe financial hardship to the
Participant resulting from a sudden and unexpected illness or accident of the
Participant or of the Participant's dependent [as defined in Code Section
152(a)], loss of the Participant's property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant. Financial Hardship will be determined by
the Administrative Committee on the basis of the facts of each case, including
information supplied by the Participant in accordance with uniform guidelines
prescribed from time to time by the Administrative Committee; provided, the
Participant will be deemed not to have a Financial Hardship to the extent that
such hardship 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 assets would not itself cause severe financial hardship; or

          (c) By cessation of deferrals under the Plan.

Examples of what are not considered to be unforeseeable emergencies include the
need to send a Participant's child to college or the desire to purchase a home.
Notwithstanding anything in the foregoing to the contrary, Financial Hardships
shall be limited to circumstances constituting "unforeseeable emergencies" under
Code Section 409A.

                                        2

<PAGE>

     1.16 Investment Election means an election, made in such form as the
Administrative Committee may direct, pursuant to which a Participant may elect
the Investment Funds in which the amounts credited to his Account will be deemed
to be invested.

     1.17 Investment Funds mean the investment funds selected from time to time
by the Administrative Committee for purposes of determining the rate of return
on amounts deemed invested pursuant to the terms of the Plan.

     1.18 Key Employee means an employee defined in Code Section 416(i) and the
regulations promulgated thereunder [without regard to Code Section 416(i)(5)].
Generally, a Key Employee for a Plan Year means an employee, former employee or
deceased employee who, at any time during the 12-month period ending on the
September 30 immediately preceding the first day of such Plan Year, was either:

          (a) An officer of a member of the Controlled Group having combined
annual Compensation from all members of the Controlled Group greater than
$130,000 [or such other amount as is applicable for the Plan Year under Code
Section 416(i)(1)(A)(i)]; provided, no more than 50 employees (or, if lesser,
the greater of 10 percent of all employees of a member of the Controlled Group
or 3) shall be treated as officers of a member of the Controlled Group;

          (b) A 5-percent owner [or constructive owner within the meaning of
Code Section 318, as modified by Code Section 416(i)(1)(B)(iii)] of a member of
the Controlled Group; or

          (c) A 1-percent owner (or constructive owner within the meaning of
Code Section 318, as modified by Code Section 416(i)(1)(B)(iii) and the
regulations promulgated thereunder) of a member of the Controlled Group having a
combined annual Compensation from all members of the Controlled Group of more
than $150,000.

Notwithstanding anything herein to the contrary, for purposes of determining
whether an employee is a Key Employee, "Compensation" means (i) all amounts that
are wages within the meaning of Code Section 3401(a) and all other payments of
compensation to such employee by a member of the Controlled Group (in the course
of the member's trade or business) for which the member of the Controlled Group
is required to furnish the employee a written statement under Code Sections
6041(d), 6051(a)(3) and 6052 (i.e., all amounts reportable by the member of the
Controlled Group on IRS Form W-2); provided, such amounts shall be determined
without regard to any rules that limit the remuneration included in wages based
on the nature or location of employment or the services performed [such as the
exception for agricultural labor in Code Section 3401(a)(2)]; plus (ii) any
elective deferral [as defined in Code Section 402(g)(3)], and any amount which
is contributed or deferred by a member of the Controlled Group at the election
of the employee and which is not includible in the gross income of the employee
by reason of Code Section 125, 457 or 132(f)(4), including any amounts not
available to an employee in cash in lieu of group health coverage because the
employee is unable to certify that he has other health coverage.

     1.19 Nonpayment Period has the meaning set forth in Section 7.3(a).

                                        3

<PAGE>

     1.20 Participant means any person who has been admitted to, and has not
been removed from, participation in the Plan pursuant to the provisions of
Article II.

     1.21 Participating Company means all members of the Controlled Group that
have employees who are Participants (whether active or inactive) in the Plan.
The Administrative Committee may specify such Participating Companies on Exhibit
A hereto.

     1.22 Plan means the Rock-Tenn Company Supplemental Retirement Savings Plan,
as contained herein and all amendments hereto. For tax purposes and purposes of
Title I of ERISA, the Plan is intended to be an unfunded, nonqualified deferred
compensation plan covering certain designated employees who are within a select
group of key management or highly compensated employees.

     1.23 Plan Year means the 12-consecutive-month period ending on December 31
of each year.

     1.24 RTS Controlled Group means RTS Packaging, LLC and all of the companies
that are either (i) members of the same controlled group of corporations [within
the meaning of Code Section 414(b)] or (ii) under common control [within the
meaning of Code Section 414(c)] with RTS Packaging, LLC.

     1.25 Surviving Spouse means, with respect to a Participant, the person who
is treated as married to such Participant under the laws of the state in which
the Participant resides. The determination of a Participant's Surviving Spouse
will be made as of the date of such Participant's death.

     1.26 Trust or Trust Agreement means the separate agreement or agreements
between the Controlling Company and the Trustee governing the Trust Fund, and
all amendments thereto.

     1.27 Trustee means the party or parties so designated from time to time
pursuant to the terms of the Trust Agreement.

     1.28 Trust Fund means the total amount of cash and other property held by
the Trustee (or any nominee thereof) at any time under the Trust Agreement.

     1.29 Valuation Date means each day of the Plan Year on which the Plan's
recordkeeper and the Trustee are each open to the public for business, or such
other date(s) determined by the Administrative Committee in its sole discretion.

                                        4

<PAGE>

                                   ARTICLE II
                          ELIGIBILITY AND PARTICIPATION

     2.1 Eligibility.

          Except as otherwise provided on an exhibit to the Plan, each
individual who is an Eligible Employee as of the first day of a Plan Year will
be eligible to participate in the Plan for the entire Plan Year. Such
individual's participation will become effective as of the first day of such
Plan Year (assuming he satisfies the procedures for admission described below).

     2.2 Procedure for Admission.

          Each Eligible Employee will become a Participant by completing such
forms and providing such data in a timely manner, as are required by the
Administrative Committee as a precondition of participation in the Plan. Such
forms and data may include, without limitation, a Deferral Election, the
Eligible Employee's acceptance of the terms and conditions of the Plan, and the
designation of a Beneficiary or Beneficiaries to receive any death benefits
payable hereunder.

     2.3 Cessation of Eligibility.

          (a) Cessation of Eligible Status. An employee will cease active
participation in the Plan if, as of any day during a Plan Year, he separates
from service with all members of the Controlled Group, in which case his
deferrals under the Plan will cease.

          (b) Inactive Participant Status. Even if his active participation in
the Plan ends, an employee will remain an inactive Participant in the Plan until
the earlier of (i) the date the full amount of his vested Account (if any) is
distributed from the Plan, or (ii) the date he again becomes an Eligible
Employee and recommences active participation in the Plan. During the period of
time that an employee is an inactive Participant in the Plan, his Account will
continue to be credited with earnings and/or losses as provided for in Section
3.5.

                                        5

<PAGE>

                                   ARTICLE III
                 PARTICIPANTS' ACCOUNTS; DEFERRALS AND CREDITING

     3.1 Participants' Accounts.

          (a) Establishment of Accounts. The Administrative Committee will
establish and maintain an Account on behalf of each Participant. To the extent
provided herein, each Account will be credited with (i) Deferral Contributions,
and (ii) earnings attributable to such Deferral Contributions, and will be
debited by (A) losses attributable to such Deferral Contributions, and (B) the
amount of all distributions. Each Account of a Participant will be maintained
until the vested value thereof has been distributed to or on behalf of such
Participant or his Beneficiary or Beneficiaries.

          (b) Nature of Contributions and Accounts. The amounts credited to a
Participant's Account will be represented solely by bookkeeping entries. Except
as provided in Article VII, no monies or other assets will actually be set aside
for such Participant, and all payments to a Participant or Beneficiary under the
Plan will be made from the general assets of the Participating Companies.

          (c) Several Liabilities. Each Participating Company will be severally
(and not jointly) liable for the payment of benefits under the Plan in an amount
equal to all undistributed Deferral Contributions withheld from Participant's
Compensation paid or payable by each such Participating Company, as adjusted for
earnings and/or losses pursuant to Section 3.5. The Administrative Committee
will allocate the total liability to pay benefits under the Plan among the
Participating Companies pursuant to this formula, and the Administrative
Committee's determination will be final and binding.

          (d) General Creditors. Any assets which may be acquired by a
Participating Company in anticipation of its obligations under the Plan will be
part of the general assets of such Participating Company. A Participating
Company's obligation to pay benefits under the Plan constitutes a mere promise
of such Participating Company to pay such benefits, and a Participant or
Beneficiary will have and maintain no more rights than those of an unsecured,
general creditor of such Participating Company.

     3.2 Deferral Contributions.

          Except as provided on a exhibit to the Plan, each Eligible Employee
who is or becomes eligible to participate in the Plan for a Plan Year may elect
to have Deferral Contributions made on his behalf for such Plan Year by
completing and delivering to the Administrative Committee (or its designee) a
Deferral Election setting forth the terms of his election. Subject to the terms
and conditions set forth below, a Deferral Election will provide for the
reduction of an Eligible Employee's Compensation in each regular paycheck
payable during the Plan Year for which the Deferral Election is in effect.

                                        6

<PAGE>

     3.3 Procedure for Elections. Except as otherwise provided on an exhibit to
the Plan and subject to any modifications, additions or exceptions that the
Administrative Committee, in its sole discretion, deems necessary, appropriate
or helpful, the following terms will apply to Deferral Elections:

          (a) Effective Date. A Participant's Deferral Election with respect to
his Compensation for any Plan Year will be effective for the first regular
paycheck that (i) is paid after the date the Deferral Election is submitted and
becomes effective and (ii) relates to a payroll period ending no earlier than
the last day of the immediately preceding Plan Year. To be effective, a
Participant's Deferral Election must be made before the first day of the Plan
Year for which Deferral Contributions will be made or at such earlier time as
the Administrative Committee may prescribe. If an Eligible Employee fails to
submit a Deferral Election in a timely manner, he will be deemed to have elected
not to participate in the Plan for that Plan Year.

          (b) Term. A Participant's Deferral Election will remain in effect only
for the Plan Year for which it is effective and will terminate on the earliest
of (i) the date the Participant ceases to be an active Participant, (ii) the
date the Participant's Deferral Election is revoked (as provided in subsection
(d) hereof), or (iii) the date on which is made the last payment of Compensation
relating to a payroll period ending prior to the last day of the Plan Year for
which the Deferral Election is effective. If a Participant is transferred from
the employment of one Participating Company to the employment of another
Participating Company, his Deferral Election with the first Participating
Company will remain in effect and will apply to his Compensation from the second
Participating Company until the earlier of those events set forth in the
preceding sentence.

          (c) Amount. A Participant may elect to defer his Compensation payable
in each regular paycheck in 1 percent increments, up to a maximum of 75 percent
of his Compensation; provided, no Participant shall be permitted to defer more
than $9,300 of his Compensation in any Plan Year; and, provided, further, the
Administrative Committee may establish other maximum percentages and or amounts
from time to time.

          (d) Revocation.

               (i) Automatic Revocation. If (i) a Participant receives a
     hardship distribution from any Code Section 401(k) plan maintain by a
     member of the Controlled Group, and (ii) the terms of such Code Section
     401(k) plan provide for the suspension of elective contributions, such
     Participant's Deferral Election shall automatically be revoked and such
     Participant shall be prohibited from making Deferral Contributions for the
     period during which elective contributions are suspended under the terms of
     such Code Section 401(k) plan. A Participant whose Deferral Election is
     revoked may enter into a new Deferral Election with respect to his
     Compensation for any subsequent Plan Year by making such Deferral Election
     in accordance this Section and Section 3.2; provided, such Deferral
     Election shall become effective no earlier than the end of the suspension
     period provided under the terms of the applicable Code Section 401(k) plan.

                                        7

<PAGE>

               (ii) Voluntary Revocation. A Participant who has suffered a
     Financial Hardship during a Plan Year may revoke his Deferral Election for
     such Plan Year by delivering an application for revocation to the
     Administrative Committee, and such revocation will be effective as soon as
     practicable after the date of the Administrative Committee's decision, made
     in its sole discretion, that the Participant has suffered a Financial
     Hardship. A Participant who revokes his Deferral Election may enter into a
     new Deferral Election with respect to his Compensation for any subsequent
     Plan Year by making such Deferral Election in accordance this Section and
     Section 3.2.

          (e) Crediting of Deferred Compensation. For each Plan Year that a
Participant has a Deferral Election in effect, the Administrative Committee will
credit the amount of such Participant's Deferral Contributions to his Account
on, or as soon as practicable after, the Valuation Date on which such amount
would have been paid to him but for his election hereunder.

     3.4 Debiting of Distributions.

          As of each Valuation Date, the Administrative Committee will debit
each Participant's Account for any amount distributed from such Account since
the immediately preceding Valuation Date.

     3.5 Crediting of Earnings.

          As of each Valuation Date, the Administrative Committee will credit to
each Participant's Account the amount of earnings and/or losses applicable
thereto for the period since the immediately preceding Valuation Date, based on
the amount of the Participant's Account that was deemed invested in each
Investment Fund.

     3.6 Vesting.

          A Participant will at all times be fully vested in his Deferral
Contributions, as adjusted for earnings and/or losses pursuant to Section 3.5.

     3.7 Notice to Participants of Account Balances.

          At least once for each Plan Year, the Administrative Committee will
cause a written statement of a Participant's Account balance to be distributed
to the Participant.

     3.8 Good Faith Valuation Binding.

          In determining the value of the Accounts, the Administrative Committee
will exercise its best judgment, and all such determinations of value (in the
absence of bad faith) will be binding upon all Participants and their
Beneficiaries.

                                        8

<PAGE>

     3.9 Errors and Omissions in Accounts.

          If an error or omission is discovered in the Account of a Participant
or in the amount of a Participant's deferrals, the Administrative Committee, in
its sole discretion, will cause appropriate, equitable adjustments to be made as
soon as administratively practicable following the discovery of such error or
omission.

                                        9

<PAGE>

                                   ARTICLE IV
                                INVESTMENT FUNDS

     4.1 Selection by Administrative Committee.

          From time to time, the Administrative Committee will select two or
more Investment Funds for purposes of determining the rate of return on amounts
deemed invested in accordance with the terms of the Plan. The Administrative
Committee may change, add or remove Investment Funds on a prospective basis at
any time(s) and in any manner it deems appropriate.

     4.2 Participant Direction of Deemed Investments.

          Each Participant generally may direct the manner in which his Account
will be deemed invested in and among the Investment Funds; provided, such
investment directions will be made in accordance with the following terms:

          (a) Nature of Participant Direction. The selection of Investment Funds
by a Participant will be for the sole purpose of determining the rate of return
to be credited to his Account, and will not be treated or interpreted in any
manner whatsoever as a requirement or direction to actually invest assets in any
Investment Fund or any other investment media. The Plan, as an unfunded,
nonqualified deferred compensation plan, at no time will have any actual
investment of assets relative to the benefits or Accounts hereunder.

          (b) Participant Elections. Each Participant may make an Investment
Election prescribing the percentage of his Account and/or future contributions
that will be deemed invested in each Investment Fund and may modify such
Investment Elections with respect to his existing Account and/or future
contributions as of any Valuation Date; provided, any such modification will be
effective after the Administrative Committee (or its designee) has a reasonable
opportunity to process such modification pursuant to such procedures as the
Administrative Committee may determine from time to time.

          (c) Administrative Committee Discretion. The Administrative Committee
will have complete discretion to adopt and revise procedures to be followed in
making such Investment Elections. Such procedures may include, but are not
limited to, the process of making elections, the permitted frequency of making
elections, the incremental size of elections, the deadline for making elections,
the effective date of such elections and whether and the extent to which to
charge any Participant's Account an administrative fee for making such
Investment Elections. Any procedures adopted by the Administrative Committee
that are inconsistent with the deadlines or procedures specified in this Section
will supersede such provisions of this Section without the necessity of a Plan
amendment.

                                       10

<PAGE>

                                    ARTICLE V
                           PAYMENT OF ACCOUNT BALANCES

     5.1 Benefit Payments Upon Termination of Service for Reasons Other Than
Death.

          (a) General Rule Concerning Benefit Payments. In accordance with the
terms of subsection (b) hereof, if a Participant separates from service with the
Controlling Company, all other members of the Controlled Group and all members
of the RTS Controlled Group for any reason other than death, he (or his
Beneficiary or Beneficiaries, if he dies after such termination of employment
but before distribution of his Account) will be entitled to receive or begin
receiving a distribution of the total of: (i) the entire vested amount credited
to his Account, determined as of the Valuation Date on which such distribution
is processed; plus (ii) the vested amount of Deferral Contributions made since
such Valuation Date. For purposes of this subsection (a), the "Valuation Date on
which such distribution is processed" refers to the Valuation Date established
for such purpose by administrative practice, even if actual payment is made or
commenced at a later date due to delays in valuation, administration or any
other procedure. For all purposes under the Plan, the term "separation from
service" shall have the meaning determined under Code Section 409A and shall
include a Participating Company ceasing to be a member of the Controlled Group
to the extent permitted under Code Section 409A.

          (b) Timing of Distribution.

               (i) General Rule. Except as provided in subsection (b)(ii) or
     (b)(iii) hereof, the distribution of the vested benefit payable to a
     Participant under this Section will be made or commenced as soon as
     administratively feasible after the date the Participant separates from
     service with the Controlling Company, all other members of the Controlled
     Group and all members of the RTS Controlled Group for any reason other than
     death.

               (ii) Distributions to Key Employees. Notwithstanding subsection
     (b)(i) hereof, the distribution of the vested benefit payable under this
     Section to a Participant who is a Key Employee will be made or commenced as
     soon as administratively feasible after the earlier of (i) the 6-month
     anniversary of the date the Participant separates from service with the
     Controlling Company, all other members of the Controlled Group and all
     members of the RTS Controlled Group for any reason other than death, or
     (ii) the date of the Participant's death.

               (iii) Distributions Following Change to Form of Distribution.
     Notwithstanding subsection (b)(i) hereof, the distribution of the vested
     benefit payable under this Section to a Participant who has changed his
     initially elected form of distribution pursuant to Section 5.2(c) hereof
     will be made or commenced as soon as administratively feasible after the
     5-year anniversary of the date the Participant separates from service with
     the Controlling Company, all other members of the Controlled Group and all
     members of the RTS Controlled Group for any reason other than death.

                                       11

<PAGE>

     5.2 Form of Distribution.

          (a) Single-Sum Payment. Except as provided in subsection (b) hereof,
the benefit payable to a Participant under Section 5.1 will be distributed in
the form of a single-sum payment in cash.

          (b) Quarterly Installments. A Participant may elect, at the time he
makes his initial Deferral Election, to have the benefit payable to him under
Section 5.1 paid in the form of quarterly installment payments in cash. The
following terms and conditions will apply to quarterly installment payments made
under the Plan:

               (i) The quarterly installment payments will be made in
     substantially equal installments over a period of not less than 3 years and
     not more than 10 years (adjusted for earnings and/or losses between
     payments in the manner described in Section 3.5). The initial value of the
     obligation for the quarterly installment payments will be equal to the
     amount of the Participant's Account balance calculated in accordance with
     the terms of Section 5.1(a).

               (ii) If the amount of the first such quarterly installment
     payment is less than $100, the benefit payable to the Participant under
     Section 5.1 will be distributed in the form of a single-sum payment in cash
     without regard to the Participant's election of quarterly installment
     payments.

               (iii) If a Participant dies after payment of his benefit from the
     Plan has begun but before his entire benefit has been distributed, the
     remaining amount of his Account balance will be distributed to the
     Participant's designated Beneficiary or Beneficiaries in the form of a
     single-sum payment in cash.

          (c) Changing Form of Distribution. After the time a Participant makes
his initial Deferral Election, he may make one (and no more than one) change to
the form in which the benefit payable to him under Section 5.1 will be
distributed to another form otherwise available under subsection (a) or (b)
hereof; provided, such change will not be effective if the Participant separates
from service with all members of the Controlled Group and all members of the RTS
Controlled Group within 12 months of the date his change is made; and, provided
further, the date on which his distribution will be made or commenced will be
delayed in accordance with Section 5.1(b)(iii).

     5.3 Death Benefits.

          If a Participant dies before payment of his benefit from the Plan is
made or commenced, the Beneficiary or Beneficiaries designated by such
Participant in his latest beneficiary designation form filed with the
Administrative Committee will be entitled to receive a distribution of the total
of (i) the entire vested amount credited to such Participant's Account,
determined as of the Valuation Date on which such distribution is processed;
plus (ii) the vested amount of any Deferral Contributions made since such
Valuation Date. For purposes of this

                                       12

<PAGE>

Section, the "Valuation Date on which such distribution is processed" refers to
the Valuation Date established for such purpose by administrative practice, even
if actual payment is made or commenced at a later date due to delays in
valuation, administration or any other procedure. The benefit will be
distributed to such Beneficiary or Beneficiaries as soon as administratively
feasible after the date of the Participant's death (without regard to whether
the Participant was a Key Employee) in the form of a single-sum payment in cash.

     5.4 Hardship Distributions.

          Upon receipt of an application for an in-service hardship distribution
and the Administrative Committee's decision, made in its sole discretion, that a
Participant has suffered a Financial Hardship, such Participant will be entitled
to receive an in-service distribution. Such distribution will be paid in a
single-sum payment in cash as soon as administratively feasible after the
Administrative Committee determines that the Participant has incurred a
Financial Hardship. The amount of such single-sum payment will be limited to the
amount of the Participant's vested Account that the Administrative Committee
determines is reasonably necessary to meet the Participant's requirements
resulting from the Financial Hardship. The amount of such distribution will
reduce the Participant's Account balance as provided in Section 3.4.
Notwithstanding anything in this Section to the contrary, all hardship
distributions shall be subject to the requirements applicable to distributions
on account of unforeseeable emergency under Code Section 409A.

     5.5 Beneficiary Designation.

          (a) General. Participants will designate and from time to time may
redesignate their Beneficiaries in such form and manner as the Administrative
Committee may determine.

          (b) No Designation or Designee Dead or Missing. In the event that:

               (i) a Participant dies without designating a Beneficiary;

               (ii) the Beneficiary designated by a Participant is not surviving
     when a payment is to be made to such person under the Plan, and no
     contingent Beneficiary has been designated; or

               (iii) the Beneficiary designated by a Participant cannot be
     located by the Administrative Committee within 1 year from the date
     benefits are to be paid to such person;

then, in any of such events, the Beneficiary of such Participant with respect to
any benefits that remain payable under the Plan will be the Participant's
Surviving Spouse, if any, and if not, the estate of the Participant.

                                       13

<PAGE>

     5.6 Taxes.

          If the whole or any part of any Participant's or Beneficiary's benefit
hereunder becomes subject to any estate, inheritance, income, employment or
other tax which a Participating Company is required to pay or withhold, the
Participating Company will have the full power and authority to withhold and pay
such tax out of any monies or other property in its hand for the account of the
Participant or Beneficiary whose interests hereunder are so affected (including,
without limitation, by reducing and offsetting the Participant's or
Beneficiary's Account balance). Prior to making any payment, the Participating
Company may require such releases or other documents from any lawful taxing
authority as it deems necessary.

     5.7 Offset of Benefit by Amounts Owed to the Controlling Company.

          Notwithstanding anything in the Plan to the contrary, the
Administrative Committee may, in its sole discretion, offset any payment or
payments of benefit to a Participant under the Plan by any amount owed by such
Participant to the Controlling Company or any member of the Controlled Group.

                                       14

<PAGE>

                                   ARTICLE VI
                                     CLAIMS

     6.1 Rights.

          All Plan benefit will be paid in accordance with Article V, but, if a
Participant or Beneficiary has any grievance, complaint or claim concerning any
aspect of the operation or administration of the Plan, including but not limited
to claims for benefits (collectively referred to herein as "claim" or "claims"),
the Participant or Beneficiary shall submit the claim in accordance with the
procedures set forth in this Article VI. All such claims must be submitted
within the "applicable limitations period." The "applicable limitations period"
shall be 2 years, beginning on (i) in the case of any single-sum payment, the
date on which the payment was made, (ii) in the case of a periodic payment, the
date of the first in the series of payments, or (iii) for all other claims, the
date on which the action complained of occurred. Additionally, upon denial of an
appeal pursuant to Section 6.3, a Participant or Beneficiary shall have 90 days
within which to bring suit against the Plan for any claim related to such denied
appeal; any such suit initiated after such 90-day period shall be precluded.

     6.2 Initial Claim.

          Claims for benefits under the Plan may be filed with the
Administrative Committee on forms or in such other written documents, as the
Administrative Committee may prescribe. The Administrative Committee will
furnish to the claimant written notice of the disposition of a claim within 90
days after the application therefor is filed; provided, if special circumstances
require an extension of time for processing the claim, the Administrative
Committee will furnish written notice of the extension to the claimant prior to
the end of the initial 90-day period, and such extension will not exceed one
additional, consecutive 90-day period. In the event the claim is denied, the
notice of the disposition of the claim will provide the specific reasons for the
denial, citations of the pertinent provisions of the Plan, and, where
appropriate, an explanation as to how the claimant can perfect the claim and/or
submit the claim for review.

     6.3 Appeal.

          Any Participant or Beneficiary who has been denied a benefit will be
entitled, upon request to the Administrative Committee, to appeal the denial of
his claim. The claimant (or his duly authorized representative) may review
pertinent documents related to the Plan in the Administrative Committee's
possession in order to prepare the appeal. The request for review, together with
a written statement of the claimant's position, must be filed with the
Administrative Committee no later than 60 days after receipt of the written
notification of denial of a claim provided for in Section 6.2. The
Administrative Committee's decision will be made within 60 days following the
filing of the request for review and will be communicated in writing to the
claimant; provided, if special circumstances require an extension of time for
processing the appeal, the Administrative Committee will furnish written notice
to the claimant prior to the end of the initial 60-day period, and such an
extension will not exceed one additional 60-day period.

                                       15

<PAGE>

If unfavorable, the notice of the decision will explain the reasons for denial
and indicate the provisions of the Plan or other documents used to arrive at the
decision.

     6.4 Satisfaction of Claims.

          Any payment to a Participant or Beneficiary will to the extent thereof
be in full satisfaction of all claims hereunder against the Administrative
Committee and the Participating Companies, any of whom may require such
Participant or Beneficiary, as a condition to such payment, to execute a receipt
and release therefor in such form as determined by the Administrative Committee
or the Participating Companies. If receipt and release is required but the
Participant or Beneficiary (as applicable) does not provide such receipt and
release in a timely enough manner to permit a timely distribution in accordance
with the general timing of distribution provisions in the Plan, the payment of
any affected distribution may be delayed until the Administrative Committee or
the Participating Companies receive a proper receipt and release.

                                       16

<PAGE>

                                   ARTICLE VII
                             SOURCE OF FUNDS; TRUST

     7.1 Source of Funds.

          Except as provided in this Section and Section 7.2 (relating to the
Trust), each Participating Company will provide the benefits described in the
Plan from its general assets. However, to the extent that funds in such Trust
allocable to the benefits payable under the Plan are sufficient, the Trust
assets may be used to pay benefits under the Plan. If such Trust assets are not
sufficient to pay all benefits due under the Plan, then the appropriate
Participating Company will have the obligation, and the Participant or
Beneficiary, who is due such benefits, will look to such Participating Company
to provide such benefits.

     7.2 Trust.

          (a) Establishment. To the extent determined by the Controlling
Company, the Participating Companies will transfer to the Trustee the funds
necessary to fund benefits accrued hereunder to be held and administered by the
Trustee pursuant to the terms of the Trust Agreement. Except as otherwise
provided in the Trust Agreement, each transfer into the Trust Fund will be
irrevocable as long as a Participating Company has any liability or obligations
under the Plan to pay benefits, such that the Trust property is in no way
subject to use by the Participating Company; provided, it is the intent of the
Controlling Company that the assets held by the Trust are and will remain at all
times subject to the claims of the general creditors of the Participating
Companies.

          (b) Distributions. Pursuant to the Trust Agreement, the Trustee will
make payments to Plan Participants and Beneficiaries in accordance with a
payment schedule provided by a Participating Company. The Participating Company
will make provisions for the reporting and withholding of any federal, state or
local taxes that may be required to be withheld with respect to the payment of
benefits pursuant to the terms of the Plan and will pay amounts withheld to the
appropriate taxing authorities or determine that such amounts have been
reported, withheld and paid by the Participating Company.

          (c) Status of the Trust. No Participant or Beneficiary will have any
interest in the assets held by the Trust or in the general assets of the
Participating Companies other than as a general, unsecured creditor.
Accordingly, a Participating Company will not grant a security interest in the
assets held by the Trust in favor of the Participants, Beneficiaries or any
creditor.

     7.3 Controlling Company Guaranty.

          (a) Obligation Parameters. During any period in which any
Participating Company is insolvent or in bankruptcy or for any reason whatsoever
does not have sufficient, available, liquid assets to fully satisfy its
obligations under the Plan due and payable by such Participating Company (a
"Nonpayment Period"), the Controlling Company, in the capacity of guarantor,
will have the unconditional obligation to pay all of such Participating
Company's Plan

                                       17

<PAGE>

benefit obligations to the Participants of such Participating Company. During
any Nonpayment Period with respect to a Participating Company, a Participant of
such Participating Company shall not be obligated or required before enforcing
this Section against the Controlling Company (i) to pursue any right or remedy
he may have against such Participating Company or to commence any suit or other
proceeding against such Participating Company in any court or other tribunal;
(ii) to make any claim in a liquidation or bankruptcy of such Participating
Company; or (iii) to wait more than 30 days after making an initial demand of
such Participating Company under the normal claims procedures set forth under
the Plan.

          (b) Limit on Controlling Company's Obligation. Notwithstanding
anything herein to the contrary, in the event that the Controlling Company or
any of its affiliates ceases to own, directly or indirectly, in the aggregate,
all of the ownership interest in a Participating Company, all obligations under
the Plan applicable to such Participating Company shall be fixed as of the date
of such cessation, and any such obligations of such Participating Company
accruing after such date shall be expressly excluded from this Section.

          (c) Nature of Obligation. Any assets which may be acquired by the
Controlling Company in anticipation of its obligations under this Section shall
be part of the general assets of the Controlling Company. The Controlling
Company's obligation under this Section constitutes a mere promise to pay
certain obligations under the Plan, and a Participant shall be and remain no
more than an unsecured, general creditor of the Controlling Company.

     7.4 Plan Expenses.

          At the direction of the Administrative Committee, expenses incurred
with respect to administering the Plan and Trust shall be charged against
earnings and/or Participants' Account (on a per capita basis, in proportion to
the value of such Accounts or on any other basis) to the extent such costs are
not paid by the Participating Companies. The Administrative Committee may
provide for any expenses specifically attributable to transactions involving an
Account to be charged against such Account.

                                       18

<PAGE>

                                  ARTICLE VIII
                            ADMINISTRATIVE COMMITTEE

     8.1 Action.

          Action of the Administrative Committee may be taken with or without a
meeting of committee members; provided, action will be taken only upon the vote
or other affirmative expression of a majority of the committee members qualified
to vote with respect to such action. If a member of the committee is a
Participant or Beneficiary, he will not participate in any decision which solely
affects his own benefit under the Plan. For purposes of administering the Plan,
the Administrative Committee will choose a secretary who will keep minutes of
the committee's proceedings and all records and documents pertaining to the
administration of the Plan. The secretary may execute any certificate or any
other written direction on behalf of the Administrative Committee.

     8.2 Rights and Duties.

          The Administrative Committee will administer the Plan and will have
all powers necessary to accomplish that purpose, including (but not limited to)
the following:

          (a) To construe, interpret and administer the Plan;

          (b) To make determinations required by the Plan, and to maintain
records regarding Participants' and Beneficiaries' benefits hereunder;

          (c) To compute and certify to the Participating Companies the amount
and kinds of benefits payable to Participants and Beneficiaries, and to
determine the time and manner in which such benefits are to be paid;

          (d) To authorize all disbursements by the Participating Companies
pursuant to the Plan;

          (e) To maintain all the necessary records of the administration of the
Plan;

          (f) To make and publish such rules for the regulation of the Plan as
are not inconsistent with the terms hereof;

          (g) To delegate to other individuals or entities from time to time the
performance of any of its duties or responsibilities hereunder, and, to the
extent the Administrative Committee makes any such delegations, any use of the
term "Administrative Committee" in the Plan that relates to such area of
delegation shall be interpreted to refer to and include such other individuals
or entities; and

          (h) To hire agents, accountants, actuaries, consultants and legal
counsel to assist in operating and administering the Plan.

                                       19

<PAGE>

The Administrative Committee will have the exclusive right to construe and
interpret the Plan, to decide all questions of eligibility for benefits and to
determine the amount of such benefits, and its decisions on such matters will be
final and conclusive on all parties.

     8.3 Compensation, Indemnity and Liability.

          The Administrative Committee and its members will serve as such
without bond and without compensation for services hereunder. All expenses of
the Administrative Committee will be paid by the Participating Companies. No
member of the committee will be liable for any act or omission of any other
member of the committee, nor for any act or omission on his own part, excepting
his own willful misconduct. The Participating Companies will indemnify and hold
harmless the Administrative Committee and each member thereof against any and
all expenses and liabilities, including reasonable legal fees and expenses,
arising out of his membership on the committee, excepting only expenses and
liabilities arising out of his own willful misconduct.

                                       20

<PAGE>

                                   ARTICLE IX
                            AMENDMENT AND TERMINATION

     9.1 Amendments.

          The Administrative Committee will have the right, in its sole
discretion, to amend the Plan in whole or in part at any time and from time to
time; provided, any amendment that may (i) result in significantly increased
expenses under the Plan or (ii) materially alter the design of the Plan must be
approved by the Compensation Committee. Any amendment will be in writing and
executed by a duly authorized member of the Administrative Committee. An
amendment to the Plan may modify its terms in any respect whatsoever, and may
include, without limitation, a permanent or temporary freezing of the Plan such
that the Plan will remain in effect with respect to existing Account balances
without permitting any new contributions; provided, no such action may reduce
the amount already credited to a Participant's Account without the affected
Participant's written consent. All Participants and Beneficiaries will be bound
by such amendment.

     9.2 Termination of Plan.

          The Controlling Company reserves the right to discontinue and
terminate the Plan at any time, for any reason. Any action to terminate the Plan
will be taken by the Board or the Compensation Committee in the form of a
written Plan amendment executed by a duly authorized officer of the Controlling
Company. If the Plan is terminated, each Participant will become 100 percent
vested in his Account which will be distributed in a single-sum payment in cash
as soon as practicable after the date the Plan is terminated. The amount of any
such distribution will be determined as of the Valuation Date such termination
distribution is to be processed. Such termination will be binding on all
Participants and Beneficiaries. Notwithstanding anything in the foregoing to the
contrary, a Participant's Account shall be distributed upon Plan termination
only if one or more of the following are satisfied:

          (a) The Plan is terminated within 12 months of a corporate dissolution
taxed under Code Section 331, or with the approval of a bankruptcy court
pursuant to 11 U.S.C. Section 503(b)(1)(A), provided that the amounts deferred
under the Plan are included in Participants' gross incomes in the latest of:

               (i) The calendar year in which the Plan termination occurs;

               (ii) The calendar year in which the amount is no longer subject
     to a substantial risk of forfeiture; or

               (iii) The first calendar year in which the payment is
     administratively practicable.

          (b) The Plan is terminated within the 30 days preceding or the 12
months following a change in control event (as defined under Code Section 409A).
For purposes of this

                                       21

<PAGE>

subsection (b), the Plan will be treated as terminated only if all substantially
similar arrangements sponsored by any member of the Controlled Group are
terminated, so that all Participants and all participants under substantially
similar arrangements are required to receive all amounts of compensation
deferred under the terminated arrangements within 12 months of the date of
termination of the arrangements.

          (c) Each of the following are satisfied:

          (1) All arrangements sponsored by any member of the Controlled Group
that would be aggregated with the Plan under Code Section 409A if the same
service provider participated in all of the arrangements are terminated;

          (2) No payments other than payments that would be payable under the
terms of the arrangements if the termination had not occurred are made within 12
months of the termination of the arrangements;

          (3) All payments are made within 24 months of the termination of the
arrangements; and

          (4) No member of the Controlled Group adopts a new arrangement that
would be aggregated with any terminated arrangement under Code Section 409A if
the same service provider participated in both arrangements, at any time within
5 years following the date of termination of the arrangements.

          (d) The Plan is terminated in connection with such other events or
under such other conditions as the Commissioner of the Internal Revenue Service
may prescribe in generally applicable guidance published in the Internal Revenue
Bulletin.

                                       22

<PAGE>

                                    ARTICLE X
                                  MISCELLANEOUS

     10.1 Taxation.

          It is the intention of the Controlling Companies that the benefits
payable hereunder will not be deductible by the Participating Companies nor
taxable for federal income tax purposes to Participants or Beneficiaries until
such benefits are paid by the Participating Companies, or the Trust, as the case
may be, to such Participants or Beneficiaries. Without limiting the foregoing,
it is intended that the Plan meet the requirements of Code Section 409A (other
than with respect to amounts that were earned and vested prior to January 1,
2005), and the Administrative Committee shall use its reasonable best efforts to
interpret and administer the Plan in accordance with such requirements. Each
Participant will be taxed for purposes of the Federal Insurance Contributions
Act ("FICA") as of the later of (i) the date that contributions are credited to
the Participant's Account, or (ii) the date that such amounts become vested.
When such benefits are paid hereunder, it is the intention of the Participating
Companies that they will be deductible by the Participating Companies under Code
Section 162.

     10.2 No Employment Contract.

          Nothing herein contained is intended to be nor will be construed as
constituting a contract or other arrangement between a Participating Company and
any Participant to the effect that the Participant will be employed by the
Participating Company for any specific period of time.

     10.3 Headings.

          The headings of the various articles and sections in the Plan are
solely for convenience and will not be relied upon in construing any provisions
hereof. Any reference to a section refers to a section of the Plan unless
specified otherwise.

     10.4 Gender and Number.

          Use of any gender in the Plan will be deemed to include all genders
when appropriate, and use of the singular number will be deemed to include the
plural when appropriate, and vice versa in each instance.

     10.5 Assignment of Benefits.

          The right of a Participant or Beneficiary to receive payments under
the Plan may not be anticipated, alienated, sold, assigned, transferred,
pledged, encumbered, attached or garnished by creditors of such Participant or
Beneficiary, except by will or by the laws of descent and distribution and then
only to the extent permitted under the terms of the Plan.

                                       23

<PAGE>

     10.6 Legally Incompetent.

          The Administrative Committee, in its sole discretion, may direct that
payment to be made to an incompetent or disabled person, whether because of
minority or mental or physical disability, be made instead to the guardian of
such person or to the person having custody of such person, without further
liability on the part of a Participating Company for the amount of such payment
to the person on whose account such payment is made.

     10.7 Governing Law.

          The Plan will be construed, administered and governed in all respects
in accordance with applicable federal law (including ERISA) and, to the extent
not preempted by federal law, in accordance with the laws of the State of
Georgia. If any provisions of this instrument are held by a court of competent
jurisdiction to be invalid or unenforceable, the remaining provisions hereof
will continue to be fully effective.

     IN WITNESS WHEREOF, the Controlling Company has caused the Plan to be
executed by its duly authorized officer on the 14th day of December, 2005.

                                        ROCK-TENN COMPANY

                                        By: /s/ Steven C. Voorhees
                                            ------------------------------------
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                       24

<PAGE>

                                ROCK-TENN COMPANY
                      SUPPLEMENTAL RETIREMENT SAVINGS PLAN

                                    EXHIBIT A

                             PARTICIPATING COMPANIES

<TABLE>
<CAPTION>
Company Names                  Effective Date
-------------                  ---------------
<S>                            <C>
Rock-Tenn Converting Company   May 15, 2003
PCPC, Inc.                     May 15, 2003
Rock-Tenn Services Inc.        January 1, 2005
</TABLE>

                                       A-1

<PAGE>

                                ROCK-TENN COMPANY
                      SUPPLEMENTAL RETIREMENT SAVINGS PLAN

                                    EXHIBIT B

                            SENIOR EXECUTIVE SUBPLAN

          Notwithstanding anything in the Plan to the contrary, the following
provisions will apply with respect to those Participants whom the Compensation
Committee has designated as eligible for the Senior Executive Subplan (as
defined in Section B-1.11 below).

          B-I Definitions.

          For purposes of the Senior Executive Subplan, the following terms,
when used with an initial capital letter, will have the meaning set forth below
unless a different meaning plainly is required by the context.

     B-1.1 Base Salary means, with respect to an employee for a Plan Year, such
employee's base pay for such Plan Year as determined by the Administrative
Committee, including any portion of such base pay that is deferred under the
Plan or under a Code Section 401(k) plan or Code Section 125 plan maintained by
a Participating Company but excluding any portion of such base pay that is paid
or made available to the employee during the Plan Year either (i) while he is
not an active Participant or (ii) prior to the first regular paycheck in such
Plan Year from which no amount (other than catch-up contributions) is, or could
be, withheld and contributed to the 401(k) Plan on account of whichever of the
following first occurs: (A) such Participant's 401(k) elective contributions
reach the Code Section 402(g) maximum deferral limit for such Plan Year, or (B)
such Participant reaches the Code Section 401(a)(17) maximum compensation limit.

     B-1.2 Base Salary Deferral Contributions mean, for each Plan Year, the
portion of a Participant's Deferral Contributions attributable to his Base
Salary Deferral Election for such Plan Year.

     B-1.3 Base Salary Deferral Election means a written, electronic or other
form of election pursuant to which a Participant may elect to defer under the
Plan a portion of his Base Salary.

     B-1.4 Bonus Deferral Contributions mean, for each Plan Year, the portion of
a Participant's Deferral Contributions attributable to his Bonus Deferral
Election for such Plan Year.

     B-1.5 Bonus Deferral Election means a written, electronic or other form of
election pursuant to which a Participant may elect to defer under the Plan all
or a portion of his Bonus Payments.

                                       B-1

<PAGE>

     B-1.6 Bonus Payments mean, with respect to an employee for a Plan Year, any
amount paid to an employee under the Controlling Company's Key Employee
Incentive Plan or Annual Executive Bonus Program, including any portion of such
amount that is deferred under the Plan or under a Code Section 401(k) plan or
Code Section 125 plan maintained by a Participating Company but excluding any
portion of such amount that is paid or made available to the employee during the
Plan Year while he is not an active Participant.

     B-1.7 Compensation means, for a Participant for any Plan Year, the total of
such Participant's Base Salary and his Bonus Payments for such Plan Year.

     B-1.8 Deferral Election means a Participant's Base Salary Deferral Election
and/or Bonus Deferral Election, as applicable.

     B-1.9 401(k) Plan means the Rock-Tenn Company 401(k) Retirement Savings
Plan for Salaried and Non-Union Hourly Employees.

     B-1.10 Matching Contributions mean the amount (if any) credited to a
Participant's Account pursuant to Section B-IV. Matching Contributions will be
credited to Participant Accounts as Deferral Contributions are credited to such
Accounts pursuant to Section 3.1(a). In addition to the payments for which each
Participating Company is liable pursuant to Section 3.1(c), each Participating
Company will also be severally (and not jointly) liable for the payment of
benefits under the Plan attributable to undistributed Matching Contributions
credited for the period a Participant was employed by such Participating
Company, as adjusted for earnings and/or losses pursuant to Section 3.5.

     B-1.11 Senior Executive Subplan means the Plan as modified by this Exhibit
B as it applies to Participants who are designated as eligible for the Senior
Executive Subplan by the Compensation Committee; provided, all Participants who
had been designated by the Compensation Committee on or before November 11,
2005, as eligible for the Plan shall be deemed to have been designated as
eligible for the Senior Executive Subplan.

          B-II Interim Plan Year Participation.

          Notwithstanding anything in Article II to the contrary, each
individual who (i) becomes an Eligible Employee under the Senior Executive
Subplan during a Plan Year and (ii) who had not previously been eligible to
participate in, or covered under, any plan, arrangement or program of any member
of the Controlled Group that would be required to be aggregated with the Plan
under Code Section 409A, will be eligible to participate in the Senior Executive
Subplan for a portion of such Plan Year. Such individual's participation will
become effective as soon as administratively practicable after he satisfies the
procedures for admission described in Section 2.2; provided, such procedures are
satisfied within 30 days of the date he first became an Eligible Employee.

                                       B-2

<PAGE>

          B-III Deferrals.

     B-3.1 Deferral Contributions. Each Eligible Employee who is or becomes
eligible to participate in the Senior Executive Subplan for all or any portion
of a Plan Year may elect to have Deferral Contributions made on his behalf for
such Plan Year by completing and delivering to the Administrative Committee (or
its designee) a Base Salary Deferral Election and/or a Bonus Deferral Election
setting forth the terms of his election; provided, the Administrative Committee
may allow or require separate or combined deferral elections for the elections
set forth below.

          (a) Base Salary Deferral Election. Subject to the terms and conditions
set forth below, a Base Salary Deferral Election will provide for the reduction
of a Participant's Base Salary in each regular paycheck payable during the Plan
Year for which the Base Salary Deferral Election is in effect, beginning with
the first such regular paycheck for such Plan Year from which no amount (other
than catch-up contributions) is, or could be, withheld and contributed to the
401(k) Plan on account of whichever of the following first occurs: (i) such
Participant's 401(k) elective contributions reach the Code Section 402(g)
maximum deferral limit for such Plan Year, or (ii) such Participant reaches the
Code Section 401(a)(17) maximum compensation limit.

          (b) Bonus Deferral Election. Subject to the terms and conditions set
forth below, a Bonus Deferral Election will provide for the reduction of an
Eligible Employee's Bonus Payment payable during the Plan Year for which the
Bonus Deferral Election is in effect.

     B-3.2 Procedure for Elections. Subject to any modifications, additions or
exceptions that the Administrative Committee, in its sole discretion, deems
necessary, appropriate or helpful, the following terms will apply to Base Salary
Deferral Elections and Bonus Deferral Elections:

          (a) Effective Date.

               (i) Initial Base Salary Deferral Election. A Participant's
     initial Base Salary Deferral Election with respect to his Base Salary for
     any Plan Year will be effective for the first regular paycheck (A) which
     relates to a payroll period ending no earlier than the last day of the
     immediately preceding Plan Year and (B) from which no amount is withheld
     and contributed to the 401(k) Plan paid after the date the Base Salary
     Deferral Election is submitted and becomes effective. To be effective, a
     Participant's initial Base Salary Deferral Election must be made before the
     first day of the Plan Year for which Base Salary Deferral Contributions
     will be made, or, if later and if the Participant has never previously
     participated in, or been covered under, any plan, arrangement or program of
     any member of the Controlled Group that would be required to be aggregated
     with the Plan under Code Section 409A, within 30 days after the date on
     which his participation first becomes effective pursuant to Section B-II,
     or at such earlier time as the Administrative Committee may prescribe. If
     an Eligible Employee

                                       B-3

<PAGE>

     fails to submit a Base Salary Deferral Election in a timely manner, he will
     be deemed to have elected not to participate in the Plan for that Plan Year
     with respect to his Base Salary.

               (ii) Subsequent Base Salary Deferral Election. A Participant's
     subsequent Base Salary Deferral Election must be made on or before the last
     day of the Plan Year immediately preceding the Plan Year for which he
     desires to participate and in which the Base Salary to be deferred is paid
     or at such earlier time as the Administrative Committee may prescribe.

          (b) Term. A Participant's Base Salary Deferral Election will remain in
effect only for the Plan Year for which it is effective and will terminate on
the earliest of (i) the date the Participant ceases to be an active Participant,
(ii) the date the Participant's Base Salary Deferral Election is revoked [as
provided in Section 3.3(d)], or (iii) the date on which is made the last payment
of Compensation relating to a payroll period ending prior to the last day of the
Plan Year for which the Deferral Election is effective. If a Participant is
transferred from the employment of one Participating Company to the employment
of another Participating Company, his Base Salary Deferral Election with the
first Participating Company will remain in effect and will apply to his Base
Salary from the second Participating Company until the earliest of those events
set forth in the preceding sentence.

          (c) Amount. A Participant may elect to defer his Base Salary payable
in each regular paycheck (beginning with the first regular paycheck from which
no amount is withheld and contributed to the 401(k) Plan) in 1 percent
increments, up to a maximum of 6 percent (or such other maximum percentage
and/or amount, if any, established by the Administrative Committee from time to
time).

          (d) Impact on 401(k) Plan Elections. To the extent necessary to comply
with the requirements of Code Section 409A, a Participant who makes a Base
Salary Deferral Election for a Plan Year will not be permitted to modify or
revoke his deferral election under the 401(k) Plan for such Plan Year; provided,
unless otherwise necessary to comply with the requirements of Code Section 409A,
such Participant will be permitted to modify or revoke a separate deferral
election under the 401(k) Plan that applies only to catch-up contributions.

          (e) Bonus Deferral Elections. A Participant may complete and deliver
to the Administrative Committee a Bonus Deferral Election with respect to a
Bonus Payment payable during a Plan Year. The terms of such Bonus Deferral
Election will be determined by reference to the foregoing provisions of this
Section; provided, to be effective, the Bonus Deferral Election must be made by
the latest of the dates described in subsections (e)(i), (e)(ii) and (e)(iii)
hereof, whichever are applicable, or at such earlier time as the Administrative
Committee may prescribe.

               (i) Performance-Based Compensation. If the Bonus Payment
     constitutes performance-based compensation under Code Section 409A, the

                                       B-4

<PAGE>

     Bonus Deferral Election may be made on any date that is at least 6 months
     prior to the end of the fiscal year to which the Bonus Payment relates;
     provided, the Bonus Payment is not both substantially certain to be paid
     and readily ascertainable on such date; and, provided further, the
     Participant has been continuously employed by a member of the Controlled
     Group from the beginning of such fiscal year (or, if later, the date on
     which the performance criteria for the Bonus Payment are established in
     writing).

               (ii) Initial Year of Participation. If the Participant becomes
     eligible to participate in the Senior Executive Subplan for a portion of
     the Plan Year pursuant to Section B-II after the date on which the
     performance criteria for the Bonus Payment are established in writing, the
     Bonus Deferral Election must be made within 30 days after the date on which
     his participation becomes effective; provided, such Bonus Deferral Election
     will only apply to a portion of the applicable Bonus Payment. Such portion
     shall equal the Participant's Bonus Payment multiplied by the ratio of (A)
     the number of days remaining in the fiscal year to which the Bonus Payment
     relates when the Participant makes his Bonus Deferral Election, divided by
     (B) the number of days remaining in such fiscal year when the Participant
     first became eligible for such Bonus Payment.

               (iii) Default Rule. If subsections (e)(i) and (e)(ii) are
     inapplicable, the Bonus Deferral Election must be made prior to the first
     day of the Plan Year during which begins the fiscal year to which the Bonus
     Payment relates.

          B-IV Matching Contributions.

          The Administrative Committee will credit to the Account of any
Eligible Employee who is eligible for the Senior Executive Subplan a Matching
Contribution equal to 50% of the amount of each such Eligible Participant's
Deferral Contributions for that Plan Year to the extent such Deferral
Contributions do not exceed 6% of such Eligible Participant's Compensation for
such Plan Year. Such Matching Contributions shall vest in accordance with the
vesting schedule applicable to matching contributions under the 401(k) Plan and
shall be credited with earnings and/or losses in accordance with Section 3.5.

          B-V Payment of Account Balances.

     B-5.1 Amount of Distributions. Notwithstanding anything in Section 5.1(a)
to the contrary, if a Participant who is eligible for the Senior Executive
Subplan separates from service with the Controlling Company, all other members
of the Controlled Group and all members of the RTS Controlled Group for any
reason other than death, he (or his Beneficiary or Beneficiaries, if he dies
after such termination of employment but before distribution of his Account)
will be entitled to receive or begin receiving a distribution of the total of:
(i) the entire vested amount credited to his Account, determined as of the
Valuation Date on which such distribution is processed; plus (ii) the vested
amount of Deferral and Matching Contributions made since such Valuation Date. In
addition,

                                       B-5

<PAGE>

notwithstanding anything in Section 5.3 to the contrary, if a Participant who is
eligible for the Senior Executive Subplan dies before payment of his benefit
from the Plan is made or commenced, the Beneficiary or Beneficiaries designated
by such Participant in his latest beneficiary designation form filed with the
Administrative Committee will be entitled to receive a distribution of the total
of (i) the entire vested amount credited to such Participant's Account,
determined as of the Valuation Date on which such distribution is processed;
plus (ii) the vested amount of any Deferral and Matching Contributions made
since such Valuation Date.

     B-5.2 Separate Distribution Election for Senior Executive Subplan Benefits.

          (a) In General. A Participant who becomes eligible for the Senior
Executive Subplan after being otherwise eligible to participate in the Plan may
elect, at the time he makes his initial Deferral Election under the Senior
Executive Subplan, to have the portion of his Plan benefit relating to his
participation in the Senior Executive Subplan distributed in quarterly
installments pursuant to Section 5.2(b), without regard to whether he has made
such an election with respect to the remainder of his Plan benefit.

          (b) Separate Changes. A Participant described in subsection (a) hereof
may make a one-time change to the form in which the portion of his Plan benefit
relating to his participation in the Senior Executive Subplan will be
distributed pursuant to Section 5.2(c), without regard to whether he has made
such a change with respect to the portion of his Plan benefit that does not
relate to his participation in the Senior Executive Subplan. Likewise, such a
Participant may make a one-time change to the form in which the portion of his
Plan benefit not relating to his participation in the Senior Executive Subplan
will be distributed pursuant to Section 5.2(c), without regard to whether he has
made such a change with respect to the portion of his Plan benefit that relates
to his participation in the Senior Executive Subplan; provided, the Participant
has not made such a change prior to the beginning of his participation in the
Senior Executive Subplan.

          (c) Separate Application of the 5-year Delay. If a Participant
described in subsection (a) hereof makes a change to the form in which the
portion of his Plan benefit relating to his participation in the Senior
Executive Subplan will be distributed pursuant to Section 5.2(c) and subsection
(b) hereof, the distribution of the portion of his Plan benefit relating to his
participation in the Senior Executive Subplan (but not the portion relating to
his participation outside of the Senior Executive Subplan) will be delayed in
accordance with Sections 5.1(b)(iii) and 5.2(c). Likewise, if such a Participant
makes a change to the form in which the portion of his Plan benefit not relating
to his participation in the Senior Executive Subplan will be distributed
pursuant to Section 5.2(c) and subsection (b) hereof, the distribution of the
portion of his Plan benefit relating to his participation outside of the Senior
Executive Subplan (but not the portion relating to his participation in the
Senior Executive Subplan) will be delayed in accordance with Sections
5.1(b)(iii) and 5.2(c).

     B-5.3 Distributions of Pre-2005 Amounts. Any distribution pursuant to
Section 5.1 of an amount that relates to a Participant's vested Account balance
as of December

                                       B-6
<PAGE>

31, 2004, as adjusted for earnings and/or losses pursuant to Section 3.5, will
be made in accordance with the timing rules of Section 5.1(b)(i) and will not be
delayed pursuant to Section 5.1(b)(ii) or 5.1(b)(iii) without regard to whether
the Participant is a Key Employee or has changed his initially elected form of
distribution pursuant to Section 5.2(c).

                                       B-7EX-10.1

 

GUARANTY

(Secured Loan)

     THIS GUARANTY (Secured Loan) (this “Guaranty”) is made as of December 28, 2005, by MEDCATH
CORPORATION, a Delaware corporation (“Guarantor”) in favor of HCPI MORTGAGE CORP., a Delaware
corporation (“Lender”).

R E C I T A L S

     A. Pursuant to the terms of that certain Loan Agreement of even date herewith, by and between
Harlingen Medical Center, Limited Partnership, a North Carolina limited partnership (“Borrower”),
as borrower, and Lender, as lender (the “Loan Agreement”), Borrower and Lender have agreed to the
terms and conditions of the Loan (as defined in the Loan Agreement). Those terms used herein with
their initial letter capitalized shall have the meanings given them in the Loan Agreement, unless
otherwise defined herein.

     B. The Loan is evidenced by the Note and secured by certain other Loan Documents. The Loan
Documents include this Guaranty.

     THEREFORE, to induce Lender to enter into the Loan Agreement and to consummate the
transactions contemplated thereby, and in consideration thereof, Guarantor unconditionally
guarantees and agrees as follows:

     1. Guaranty. Guarantor hereby unconditionally and irrevocably guarantees, subject to
the limitations set forth in Paragraph 18 hereof, to Lender:

     (a) Full and timely payment when due (whether at maturity, by acceleration, or
otherwise) of up to Ten Million Dollars ($10,000,000.00) of the indebtedness of Borrower now
or hereafter existing under the Loan Documents (or any of them), whether for principal,
interest, penalties, expenses, costs, and fees, including, without limitation, reasonable
attorneys’ fees, court costs, inspection fees, accounting costs, investigation expenses, and
other reasonable related costs and expenses incurred by, or on behalf of, Lender, together
with all renewals, extensions, modifications, rearrangements, and restatements of such
indebtedness.

     2. Rights of Lender. Guarantor authorizes Lender, without giving notice to Guarantor
or obtaining Guarantor’s consent and without affecting the liability of Guarantor hereunder, from
time to time to: (a) renew or extend all or any portion of Borrower’s or any other person’s
obligations due under the Note or any of the other Loan Documents; (b) declare all sums owing to
Lender under the Note and any of the other Loan Documents due and payable upon the occurrence of a
default or event of default under the Loan Documents; (c) make changes in the dates specified for
payments of any sums payable in periodic installments under the Note or any of the other Loan
Documents, and accept or deny, in Lender’s sole discretion, partial payments on or performance of
the Note; (d) otherwise modify the terms of any of the Loan Documents, except
for (i) increases in the principal amount of the Note in excess of the Loan Amount as a result
of additional advances made directly to Borrower, (ii) changes in the manner by which

 

 

interest rates, fees or charges are calculated under the Note or any of the other Loan Documents (Guarantor
acknowledges that, if the Note or any of the other Loan Documents so provides, said interest rates,
fees and charges may vary from time to time), or (iii) accelerate the maturity date of the Note
where no default or event of default has occurred under the Loan Documents; (e) take and hold
additional security for the performance of Borrower’s or any other person’s obligations under the
Note and the other Loan Documents and abandon, fail to perfect, exchange, enforce, waive or release
any such additional or existing security; (f) apply such additional or existing security for the
Note and direct the order or manner of sale thereof as Lender in its sole discretion may determine;
(g) release, substitute or add any one or more endorsers of the Note or guarantors of Borrower’s or
any other person’s obligations under the Note or any of the other Loan Documents; (h) apply
payments received by Lender from Borrower or any other person to any obligations of Borrower or
such other person under the Note and the other Loan Documents, in such order as Lender shall
determine, in its sole discretion, whether or not any such obligations are covered by this
Guaranty; (i) consent, in the sole discretion of Lender, to the merger, consolidation,
restructuring, dissolution or other change in the structure of Borrower or any other person; and
(j) assign this Guaranty in whole or in part.

     3. Guarantor’s General Waivers. Guarantor waives: (a) any defense now existing or
hereafter arising based upon any legal disability or other defense of Borrower, Guarantor or any
other guarantor or other person, or by reason of the cessation or limitation of the liability of
Borrower, Guarantor or any other guarantor or other person from any cause other than full payment
and performance of all obligations due under the Note or any of the other Loan Documents; (b) any
defense based upon any lack of authority of the officers, directors, partners or agents acting or
purporting to act on behalf of Borrower or any other person, or any defect in the formation of
Borrower or any other person; (c) the unenforceability or invalidity of any security or guaranty or
the lack of perfection or continuing perfection, or failure of priority of any security for the
obligations guarantied hereunder; (d) any defense based upon Lender’s election of any remedy
against Guarantor, Borrower or any other person; (e) any defense based upon Lender’s failure to
disclose to Guarantor any information concerning Borrower’s or any other person’s financial
condition or any other circumstances bearing on Borrower’s or any other person’s ability to pay and
perform all obligations due under the Note or any of the other Loan Documents; (f) any failure by
Lender to give notice to Borrower, Guarantor or any other person of the sale or other disposition
of security held for the Note, and any defect in notice given by Lender in connection with any such
sale or disposition of security held for the Note; (g) any failure of Lender to comply with
applicable laws in connection with the sale or disposition of security held for the Note,
including, without limitation, any failure by Lender to conduct a commercially reasonable sale or
other disposition of such security; (h) any defense based upon any statute or rule of law which
provides that the obligation of a surety must be neither larger in amount nor in any other respects
more burdensome than that of a principal, or that reduces a surety’s or guarantor’s obligations in
proportion to the principal’s obligation; (i) any use of cash collateral under Section 363 of the
Federal Bankruptcy Code; (j) any defense based upon Lender’s election, in any proceeding instituted
under the Federal Bankruptcy Code, of the application of Section 1111(b)(2) of the Federal
Bankruptcy Code or any successor statute; (k) any defense based upon
any borrowing or any grant of a security interest under Section 364 of the Federal Bankruptcy
Code; (l) prior to payment in full of all of the Obligations, any right of

2

 

subrogation, any right
to enforce any remedy which Lender may have against Borrower or any other person and any right to
participate in, or benefit from, any security now or hereafter held by Lender for the obligations
due under the Note or any of the other Loan Documents; (m) presentment, demand, protest and notice
of any kind, including, without limitation, notice of acceptance of this Guaranty and of the
existence, creation or incurring of new or additional guaranteed obligations and notice of intent
to accelerate and of acceleration of the indebtedness under the Note; (n) the benefit of any
statute of limitations affecting the liability of Borrower or any other person, enforcement of the
Note or any other Loan Documents, the liability of Guarantor hereunder or the enforcement hereof;
and (o) any failure of Lender to pursue, or delay in pursuing, any other remedy in Lender’s power.
Guarantor agrees that the payment and performance of all obligations due under the Note or any of
the other Loan Documents or any part thereof or other act which tolls any statute of limitations
applicable to the Note or the other Loan Documents shall similarly operate to toll the statute of
limitations applicable to Guarantor’s liability hereunder. Without limiting the generality of the
foregoing or any other provision hereof, Guarantor hereby expressly waives the provisions of: (a)
Sections 34.02 and 34.03 of the Texas Business and Commerce Code; (b) Section 17.001 of the Texas
Civil Practice and Remedies Code; (c) Rule 31 of the Texas Rules of Civil Procedure, (d) comparable
provisions of the laws of any other jurisdiction, and (e) all other suretyship defenses to the
extent such laws are applicable to this Guaranty or the agreements, covenants, or obligations of
Guarantor hereunder.

     4. Waiver of Rights of Subrogation. Notwithstanding anything to the contrary
contained herein or in any other document to which Guarantor is a party, until all obligations
under this Guaranty are fully paid and performed, Guarantor hereby expressly waives with respect to
Borrower and any other person (including any surety) any and all rights at law or in equity to
subrogation, to reimbursement, to exoneration, to contribution, to setoff or to any other rights
that could accrue to a surety against a principal, to a guarantor against a maker or obligor, to an
accommodation party against the party accommodated, or to a holder or transferee against a maker,
and which Guarantor may have or hereafter acquire against Borrower or any other person in
connection with or as a result of Guarantor’s execution, delivery and/or performance of this
Guaranty or any other document to which Guarantor is a party. Guarantor agrees that Guarantor
shall not have or assert any such rights against Borrower or any other person (including any
surety), either directly or as an attempted setoff to any action commenced against Guarantor by
Borrower or any other person (whether as borrower or in any other capacity) or by Lender.
Guarantor hereby acknowledges and agrees that this waiver is intended to benefit Lender and shall
not limit or otherwise affect Guarantor’s liability hereunder, under any other document to which
Guarantor is a party, or the enforceability hereof or thereof.

     5. Guarantor’s Warranties and Covenants. Guarantor warrants and acknowledges that:
(a) Lender would not enter into the Loan Agreement and consummate the transactions contemplated
thereby but for this Guaranty; (b) Guarantor has read and understands the Loan Agreement, the Note
and the other Loan Documents; (c) there are no conditions precedent to the effectiveness of this
Guaranty and this Guaranty shall be in full force and effect and binding on Guarantor as of the
date hereof, regardless of whether Lender obtains other collateral or any guaranties from others or
takes any other action not contemplated by Guarantor; (d) Guarantor
has established adequate means of obtaining from sources other than Lender, on a continuing
basis, financial and other information pertaining to Borrower’s financial condition, and the status

3

 

of Borrower’s payment and performance of all obligations due under the Note and the other Loan
Documents, and Guarantor agrees to keep adequately informed from such means of any facts, events or
circumstances which might in any way affect Guarantor’s risks hereunder, and Lender has made no
representation to Guarantor as to any such matters; (e) the most recent financial statements of
Guarantor delivered to Lender are true and correct in all material respects, have been prepared in
accordance with generally accepted accounting principles consistently applied (or other principles
disclosed in writing and acceptable to Lender) and fairly present, in all material respects, the
financial condition of Guarantor as of the respective dates thereof, and no material adverse change
has occurred in the financial condition of Guarantor since the respective dates thereof; and (f)
Guarantor has not and shall not, without the prior written consent of Lender, sell, lease, assign,
encumber, hypothecate, transfer or otherwise dispose of all or substantially all of Guarantor’s
assets, or any interest therein, without Lender’s prior written consent, which consent may be given
or withheld in Lender’s sole discretion, unless either Guarantor or a successor entity remains
liable under the Guaranty.

     6. Subordination. Except as otherwise agreed between Guarantor and Lender, until all
the obligations under this Guaranty are fully paid and performed, Guarantor hereby subordinates all
present and future indebtedness owing by Borrower to Guarantor to the obligations at any time owing
by Borrower to Lender under the Note and the other Loan Documents. Guarantor agrees to make no
claim for such indebtedness until all obligations of Borrower and any other person under the Note
and any of the other Loan Documents and all other direct and indirect obligations of Guarantor to
Lender have been fully discharged.

     7. Bankruptcy of Borrower or Any Other Person; Reinstatement and Revival. In any
bankruptcy or other proceeding in which the filing of claims is required by law, Guarantor shall
file, on or before the date which is twenty (20) days prior to the expiration of the prescribed
statutory period for filing of claims, all claims which Guarantor may have against Borrower or any
other person relating to any indebtedness of Borrower to Guarantor and shall assign to Lender all
rights of Guarantor thereunder. If Guarantor does not timely file any such claim, Lender, as
attorney-in-fact for Guarantor, is hereby authorized to do so in the name of Guarantor or, in
Lender’s discretion, to assign the claim to a nominee and to cause a proof of claim to be filed in
the name of Lender’s nominee. The foregoing power of attorney is coupled with an interest and
cannot be revoked. Lender or its nominee shall have the right, in its reasonable discretion, to
accept or reject any plan proposed in such proceeding and to take any other action which a party
filing a claim is entitled to do. In all such cases, whether in administration, bankruptcy or
otherwise, the person or persons authorized to pay such claim shall pay to Lender the amount
payable on such claim and, to the full extent necessary for that purpose, Guarantor hereby assigns
to Lender all of Guarantor’s rights to any such payments or distributions; provided,
however, Guarantor’s obligations hereunder shall not be satisfied except to the extent that
Lender receives cash by reason of any such payment or distribution. If Lender receives anything
hereunder other than cash, the same shall be held as collateral for amounts due under this
Guaranty. The liability of Guarantor hereunder shall be reinstated and revived, and the rights of
Lender shall continue, with respect to any amount at any time paid by Borrower or any other person
on account of the Note or any of the other Loan Documents, which Lender shall be required to
restore or return
upon the bankruptcy, insolvency or reorganization of Borrower or any other person or for any
other reason, all as though such amount had not been paid.

4

 

     8. Disclosure of Information. Lender shall have the right at any time to sell,
assign, transfer, negotiate or, so long as Lender continues to be the “lead lender”, grant
participations of at least $5 million each in, all or any part of the Loan, the Note and/or the
other Loan Documents, including, without limitation, this Guaranty, and Guarantor acknowledges and
agrees that, in connection with any such action by Lender, Lender may forward to each actual or
prospective assignee, transferee or participant all documents and information in Lender’s
possession, relating to this Guaranty or to Guarantor, whether such documents and information were
furnished by Borrower or Guarantor to Lender or otherwise, provided that such parties have executed
confidentiality agreements in form reasonably acceptable to Guarantor.

     9. Additional, Independent and Unsecured Obligations. This is a guaranty of payment
and not of collection and the obligations of Guarantor hereunder shall be in addition to and shall
not limit or in any way affect the obligations of Guarantor under any other existing or future
guaranties unless said other guaranties are expressly modified or revoked in writing. This
Guaranty is independent of the obligations of Borrower and any other person under the Note and the
other Loan Documents. Lender may bring a separate action to enforce the provisions hereof against
Guarantor without taking action against Borrower or any other person or joining Borrower or any
other person as a party to such action, and without first or concurrently proceeding against any
security held by Lender. This Guaranty is secured and shall be deemed to be secured by any
security instrument which recites that it secures this Guaranty.

     10. Attorneys’ Fees; Enforcement. Notwithstanding anything contained herein to the
contrary, if any attorney is engaged by Lender to enforce or defend any provision of this Guaranty
or any of the other Loan Documents, or as a consequence of any default or event of default under
this Guaranty or any of the other Loan Documents, with or without the filing of any legal action or
proceeding, then Guarantor shall immediately pay on demand all Attorneys’ Fees and Costs, as
defined below, incurred by Lender in connection therewith, together with interest thereon from the
date of such demand until paid, at the rate of interest then applicable to the principal owing
under the Note. As used in this Guaranty, “Attorneys’ Fees and Costs” shall mean all the
reasonable fees and expenses of counsel to Lender incurred after a Default, which may include,
without limitation, costs incurred for printing, photostating, duplicating, facsimile
transmissions, record searches, appraisals, air freight charges, discovery, investigation and other
expenses, and fees billed for law clerks, paralegals, experts and witnesses, accountants, and
others not admitted to the bar but performing services under the supervision of or on behalf of an
attorney. The term “Attorneys’ Fees and Costs” shall also include, without limitation, all such
reasonable fees and expenses incurred with respect to legal actions, appeals, arbitrations, and
bankruptcy proceedings, whether or not any action or proceeding is brought with respect to the
matter for which said fees and expenses were incurred.

     11. Effect of Waivers. Guarantor warrants and agrees that each of the waivers set
forth in this Guaranty are made with Guarantor’s full knowledge of their significance and
consequences, and that under the circumstances the waivers are reasonable. If any of said waivers
shall hereafter be determined by a court of competent jurisdiction to be contrary to any applicable
law or against public policy, such waivers shall be effective only to the maximum extent
permitted by law.

5

 

     12. Rules of Construction. The word “Borrower” as used herein shall include the named
Borrower and any other person at any time assuming or otherwise becoming primarily liable for all
or any part of the obligations of the named Borrower under the Note or any of the other Loan
Documents. The term “person” as used herein shall include any individual, company, trust or other
legal entity of any kind whatsoever. If this Guaranty is executed by more than one person, the
term “Guarantor” shall include all such persons. When the context and construction so require, all
words used in the singular herein shall be deemed to have been used in the plural and vice versa.
All headings appearing in this Guaranty are for convenience only and shall be disregarded in
construing this Guaranty. Any capitalized term not defined in this Guaranty shall have the meaning
given to such term in the Loan Agreement or the other Loan Documents.

     13. Governing Law. This Guaranty shall be governed by, and construed in accordance
with, the laws of the State of Texas, except to the extent preempted by Federal laws. Guarantor
and all persons and entities in any manner obligated to Lender under this Guaranty consent to the
jurisdiction of any Federal or State Court within the State of Texas, and also consent to service
of process by any means authorized by Texas or Federal law.

     14. No Third Party Beneficiaries. This Guaranty is solely for the benefit of Lender
and its successors and assigns, and is not intended to nor shall it be deemed to be for the benefit
of any third party, including, without limitation, Borrower.

     15. Amendments. Neither this Guaranty nor any provision hereof may be amended,
modified, waived, discharged or terminated except by an instrument in writing duly signed by or on
behalf of Lender and Guarantor.

     16. Miscellaneous. The provisions of this Guaranty shall bind and benefit the heirs,
executors, administrators, legal representatives, successors and assigns of Guarantor and Lender.
The liability of all persons and entities who are in any manner obligated hereunder shall be joint
and several. If any provision of this Guaranty shall be determined by a court of competent
jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed from
this Guaranty and the remaining parts shall remain in full force as though the invalid, illegal or
unenforceable portion had never been part of this Guaranty.

     17. Waiver of Right to Trial by Jury. GUARANTOR ACKNOWLEDGES THAT IT HAS HAD THE
ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT TO ITS RIGHTS TO TRIAL BY JURY UNDER THE CONSTITUTIONS
OF THE UNITED STATES AND THE STATE OF TEXAS. GUARANTOR HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL
BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (1) ARISING UNDER THIS GUARANTY OR ANY
OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR (2) IN ANY
WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF LENDER AND GUARANTOR WITH RESPECT TO
THIS GUARANTY OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND

6

 

GUARANTOR HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT LENDER MAY FILE A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF GUARANTOR TO THE WAIVER OF ITS RIGHT
TO TRIAL BY JURY.

     Guarantor’s Initials:                                         

     18. Limitation of Liability.

     (a) Notwithstanding anything contained in this Guaranty to the contrary, this Guaranty
shall be released upon the occurrence of both of following: (i) Borrower’s LTM EBITDA
exceeds Ten Million Five Hundred Thousand Dollars ($10,500,000.00) for two consecutive
fiscal quarters and (ii) Ten Million Dollars ($10,000,000) or more of the VBHS Notes have
converted to equity and such VBHS Notes have been released.

     (b) In addition to the Guarantor’s liability for principal, as set forth above,
Guarantor shall also at all times remain liable for all fees, costs and other obligations
under this Guaranty without limit and for all interest on the principal amount guaranteed
hereunder (exclusive of interest payments satisfied by advances under the Loan and added to
the principal amount of the Loan as described in the Loan Agreement, which amounts will be
governed by the limitations set forth in subparagraphs (a) through (c) above). Any payments
received or recovery realized by Lender may, except to the extent paid by Guarantor on the
indebtedness for which Guarantor is liable under this Guaranty, be applied in Lender’s sole
discretion to indebtedness of Borrower to Lender other than the portion of the indebtedness
for which Guarantor is liable under this Guaranty.

     19. Texas Statutory Waiver Provision. To the maximum extent permitted by applicable
law, the Guarantor hereby waives all rights, remedies, claims and defenses based upon or related to
Sections 51.003, 51.004 and 51.005 of the Texas Property Code to the extent the same pertains or
may pertain to any enforcement of this Guaranty.

     20. SPECIFIC NOTICE. IT IS EXPRESSLY AGREED AND UNDERSTOOD THAT THIS GUARANTY
INCLUDES INDEMNIFICATION PROVISIONS WHICH, IN CERTAIN CIRCUMSTANCES, COULD INCLUDE AN
INDEMNIFICATION BY THE GUARANTOR OF LENDER FROM CLAIMS OR LOSSES ARISING AS A RESULT OF LENDER’S
OWN NEGLIGENCE.

     21. Additional Provisions. Such additional terms, covenants and conditions as may be
set forth on any exhibit executed by Guarantor and attached hereto which recites that it is an
exhibit to this Guaranty are incorporated herein by this reference.

[Remainder of Page Intentionally Left Blank – Signature Follows]

7

 

     IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first written above.

	 	 	 	 	 	 	 
	 	 	GUARANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	MEDCATH CORPORATION,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James A. Parker	 	 
	 

	 	Name:
	 	 

James A. Parker
	 	 
	 

	 	Title:
	 	Vice President	 	 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]