Document:

exv10w28w5

 

Exhibit 10.28.5

AMENDMENT NO. 5

TO

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     This Amendment No. 5 to Amended and Restated Loan and Security Agreement (this
“Amendment”) is entered into this 23 day of February, 2007, by and between Harris Stratex
Networks Operating Corporation, a Delaware corporation fka Stratex Networks, Inc., a Delaware
corporation (“Borrower”), and Silicon Valley Bank (“Bank”). Capitalized terms used herein
without definition shall have the same meanings given them in the Loan Agreement (as defined
below).

Recitals

     A. Borrower and Bank have entered into that certain Amended and Restated Loan and Security
Agreement dated as of January 21, 2004 (as amended, restated, modified and/or supplemented from
time to time, the “Loan Agreement”), pursuant to which Bank agreed to extend and make available to
Borrower certain advances of money.

     B. On January 26, 2007, Stratex Networks, Inc. issued additional shares to Harris Corporation
(“Harris”) in exchange for the assets of Harris’ Microwave Communications Division, creating a
newly formed public company, Harris Stratex Networks, Inc. (“HSTX”), now a majority owned
Subsidiary of Harris. Stratex Networks, Inc. merged with Stratex Merger Corp., changed its name to
Harris Stratex Networks Operating Company, and is now a wholly-owned Subsidiary of HSTX.

     C. Borrower has been advised by Harris that the security interest granted to Bank under the
Loan Agreement contravenes certain negative covenants under Harris’ bank credit facility which
restrict liens, and desires that Bank terminate such security interest and amend the Loan Agreement
upon the terms and conditions more fully set forth herein.

     D. Subject to the representations and warranties of Borrower herein and upon the terms and
conditions set forth in this Amendment, Bank is willing to amend the Loan Agreement as set forth
herein.

Agreement

     NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound,
the parties hereto agree as follows:

     1. Amendments to Loan Agreement.

          1.1 References to “Borrower”. All references in the Loan Agreement to “Borrower” or to
“Stratex Networks, Inc.” shall hereafter mean and refer to Harris Stratex Networks Operating
Corporation.

          1.2 Security Interest. Bank hereby terminates and releases its security interest in the
Collateral, and will take such actions as necessary to terminate financing statements, account
control agreements and other evidences of its lien. To evidence the unsecured nature of the Credit
Extensions, conforming changes shall be made throughout the Loan Agreement. Specifically,

 

 

Sections 4 (Creation of Security Interest) and 5.2 (Collateral) and Exhibit A are hereby
deleted in their entirety and, in each case, replaced by the section heading “Intentionally
Omitted.”)

          1.3 Section 6.2 (Financial Statements, Reports, Certificates). Section 6.2 is hereby amended
to read in its entirety as follows:

          “(a) Borrower will deliver to Bank: (i) within five (5) Business Days of filing, but in no
event later than fifty (50) days after the end of each fiscal quarter in the case of the Form 10-Q
and ninety-five (95) days after the end of each fiscal year in the case of the Form 10-K, copies of
all reports on Forms 10-K and 10-Q filed by HSTX with the Securities and Exchange Commission; (ii)
as soon as available, but no later than thirty (30) days after the end of each month, a cash
holding report in form and substance satisfactory to Bank, and agings of accounts payable and
accounts receivable, international and domestic, sorted by due date; (iii) as soon as available,
but no later than forty-five (45) days after the end of each fiscal year, a one (1) year (prepared
on a quarterly basis) financial projections of Borrower on a Consolidated basis, including a pro
forma balance sheet and statements of income and cash flows and showing projected operating
revenues, expenses and debt service of Borrower on a Consolidated basis; (iv) a prompt report of
any material infringements to its Intellectual Property (collectively, “IP Infringements”); (v) a
prompt report of any legal actions pending or threatened against Borrower or any Subsidiary that
could result in damages or costs to Borrower or any Subsidiary of $2,000,000 or more, or in which
an adverse decision could reasonably be expected to cause a Material Adverse Change (collectively,
“Material Litigation”); and (vi) other financial information Bank reasonably requests.

               (b) Borrower will deliver to Bank with its financial statements delivered pursuant to
subsection (a)(i) above, a Compliance Certificate signed by a Responsible Officer in the form of
Exhibit D.”

          1.4 Section 6.7 (Financial Covenants). The financial covenants contained in Section 6.7 shall
be measured using the Consolidated financial information of HSTX commencing with the fiscal quarter
ending March 31, 2007.

          1.5 Section 6.8 (Further Assurances). Section 6.8 is hereby amended to read in its entirety
as follows:

          “Borrower will execute any further instruments and take further action as Bank reasonably
requests to effect the purposes of this Agreement.”

          1.6 Section 7.5 (Encumbrance). Section 7.5 is hereby amended to read in its entirety as
follows:

          “Create, incur, or allow any Lien on any of its assets or property, or assign or convey any
right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to
do so, except for (a) Permitted Liens, or (b) Transfers of Accounts in the ordinary course of
Borrower’s business in exchange for cash or other unencumbered Property to an entity or entities
regularly engaged in the purchase of such Accounts.”

          1.7 Section 13 (Definitions). The definition of “Material Adverse Change” is amended and
restated in its entirety as follows:

2

 

          “Material Adverse Change” is any of the following: (a) a material adverse change in the
business, operations, or condition (financial or otherwise) of the Borrower, or (b) a material
impairment of the prospect of repayment of any portion of the Obligations.

          1.8 Section 13 (Definitions). A new definition of “HSTX” is added as follows:

          “HSTX” means Harris Stratex Networks, Inc., a Delaware corporation.

          1.9 Compliance Certificate. A new form of Compliance Certificate, attached hereto as
Exhibit A, hereby replaces the existing form attached as Exhibit D to the Loan Agreement.

     2. Borrower’s Representations And Warranties. Borrower represents and warrants that:

               (a) immediately upon giving effect to this Amendment (i) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material respects as of the
date hereof (except to the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date), and (ii) no Event of Default has occurred
and is continuing;

               (b) Borrower has the corporate power and authority to execute and deliver this Amendment and
to perform its obligations under the Loan Agreement, as amended by this Amendment;

               (c) the certificate of incorporation, bylaws and other organizational documents of Borrower
delivered to Bank on the Closing Date remain true, accurate and complete and have not been amended,
supplemented or restated and are and continue to be in full force and effect;

               (d) the execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, have been duly
authorized by all necessary corporate action on the part of Borrower; and

               (e) this Amendment has been duly executed and delivered by the Borrower and is the binding
obligation of Borrower, enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting
creditors’ rights.

     3. Limitation. The amendments set forth in this Amendment shall be limited precisely
as written and shall not be deemed (a) to be a waiver or modification of any other term or
condition of the Loan Agreement or of any other instrument or agreement referred to therein or to
prejudice any right or remedy which Bank may now have or may have in the future under or in
connection with the Loan Agreement or any instrument or agreement referred to therein; or (b) to be
a consent to any future amendment or modification or waiver to any instrument or agreement the
execution and delivery of which is consented to hereby, or to any waiver of any of the provisions

3

 

thereof. Except as expressly amended hereby, the Loan Agreement shall continue in full force
and effect.

     4. Effectiveness. This Amendment shall become effective upon the satisfaction of all
the following conditions precedent:

          4.1 Amendment. Borrower and Bank shall have duly executed and delivered this Amendment to
Bank.

          4.2 Payment of Bank Expenses. Borrower shall have paid all Bank Expenses (including all
reasonable attorneys’ fees and reasonable expenses) incurred and invoiced through the date of this
Amendment.

     5. Counterparts. This Amendment may be signed in any number of counterparts, and by
different parties hereto in separate counterparts, with the same effect as if the signatures to
each such counterpart were upon a single instrument. All counterparts shall be deemed an original
of this Amendment.

     6. Integration. This Amendment and any documents executed in connection herewith or
pursuant hereto contain the entire agreement between the parties with respect to the subject matter
hereof and supersede all prior agreements, understandings, offers and negotiations, oral or
written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any
judicial or arbitration proceeding, if any, involving this Amendment; except that any financing
statements or other agreements or instruments filed by Bank with respect to Borrower shall remain
in full force and effect.

     7. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT GIVING EFFECT TO PRINCIPLES
OF CONFLICT OF LAW.

[Signature page follows.]

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the
date first written above.

	 	 	 	 	 
	     Borrower:       	Harris Stratex Networks Operating Corporation,

a Delaware corporation

 	 
	 	By:  	                              /s/ Sarah A. Dudash
 	 
	 	 	Printed Name:  Sarah A. Dudash 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                        /s/ Carol A. Goudey
 	 
	 	 	Printed Name:  Carol A. Goudey 	 
	 	 	Title:  	Treasurer 	 
	 

	 	 	 	 	 
	     Bank:	Silicon Valley Bank

 	 
	 	By:  	                          /s/ Ray Aguilar
 	 
	 	 	Printed Name:  Ray Aguilar 	 
	 	 	Title:  	Relationship Manager 	 
	 

5

 

Exhibit A

COMPLIANCE CERTIFICATE

	 	 	 	 	 
	TO:

	 	SILICON VALLEY BANK
	Date:
	 

	 	3003 Tasman Drive

Santa Clara, CA 95054	 	 
	 
	 	 	 	 
	FROM:

	 	HARRIS STRATEX NETWORKS OPERATING CORPORATION	 	 

The undersigned Responsible Officer of Harris Stratex Networks Operating Corporation (“Borrower”)
certifies that under the terms and conditions of the Amended and Restated Loan and Security
Agreement dated January 21, 2004, between Borrower and Bank (as amended, the “Agreement”), (i)
Borrower is in complete compliance for the period ending _________ with all required
covenants except as noted below and (ii) all representations and warranties in the Agreement are
true and correct in all material respects on this date. In addition, the undersigned Responsible
Officer certifies that Borrower (x) has complied with Section 6.4 of the Agreement with respect to
payment of taxes of Borrower and its Subsidiaries and (y) does not have any legal actions pending
or threatened against Borrower or any of its Subsidiaries which Borrower has not previously
notified in writing to Bank pursuant to Section 6.2 of the Agreement. Attached are the required
financial reports and calculation of financial covenants supporting the certification. The
undersigned acknowledges that no borrowings may be requested at any time or date of determination
that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is
determined not just at the date this certificate is delivered.

Please indicate compliance status by circling Yes/No under “Complies” or “Occurrences” columns.

	 	 	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies
	A/R and A/P agings

	 	Monthly within 30 days
	 	Yes
	 	No
	Quarterly financial statements + CC

	 	Quarterly within 50 days
	 	Yes
	 	No
	Annual audited financial statements

	 	Annually within 95 days
	 	Yes
	 	No
	With compliance certificate
	 	 	 	 	 	 
	 	 	 	 	Occurrences*
	IP Infringements

	 	Prompt
	 	Yes
	 	No
	Material Litigation

	 	Prompt
	 	Yes
	 	No

1

 

	 	 	 	 	 	 	 	 	 
	Financial Covenant	 	Required	 	Actual	 	Complies
	Minimum Tangible 

Net Worth

(Quarterly)

	 	54,000,000 plus (i)
twenty-five percent
(25%) of net
income, as
determined in
accordance with
GAAP, and (ii)
fifty percent (50%)
of any increases to
net worth due to
Subordinated Debt
or net equity
proceeds from
either public or
public offerings
for such quarter
and all preceding
quarters since
December 31, 2005
(exclusive of
losses).
	 	$______
	 	Yes
	 	No
	 
	Minimum Liquidity 

Ratio (Monthly)

	 	1.25:1.00
	 	___:1.00
	 	Yes
	 	No

	
	*If yes, attached is a summary of the Material Litigation or IP Infringements not previously
disclosed by Borrower.

Sincerely,

Harris Stratex Networks Operating Corporation

	 	 	 
	By:

	 	 

	 	 	 
	Name:

	 	 

	 	 	 
	Title:

	 	 

BANK USE ONLY

	 	 	 
	Received by:

	 	 
	 

	 	AUTHORIZED SIGNER

	 	 	 
	Date:

	 	 

	 	 	 
	Verified:

	 	 
	 

	 	AUTHORIZED SIGNER

	 	 	 
	Date:

	 	 

	 	 	 
	Compliance Status:

	 	Yes          No

2exv10w1

 

Exhibit 10.1

LAMAR DEFERRED COMPENSATION PLAN

(As amended)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	SECTION 1. THE PLAN
	 	 	1	 
	1.1 History of the Plan

	 	 	1	 
	
1.2 Purpose

	 	 	1	 
	

SECTION 2. DEFINITIONS
	 	 	1	 
	2.1 “Account”
	 	 	1	 
	2.2 “Beneficiary”
	 	 	1	 
	2.3 “Board”
	 	 	1	 
	2.4 “Code”
	 	 	1	 
	2.5 “Committee”
	 	 	1	 
	2.6 “Company”
	 	 	2	 
	2.7 “Contributions”
	 	 	2	 
	2.8 “Disability”
	 	 	2	 
	2.9 “Effective Date”
	 	 	2	 
	2.10 “Eligible Employee”
	 	 	2	 
	2.11 “ERISA”
	 	 	2	 
	2.12 “Participant”
	 	 	2	 
	2.13 “Participation Agreement”
	 	 	2	 
	2.14 “Plan Year”
	 	 	2	 
	2.15 “Separation from Service”
	 	 	2	 
	2.16 “Specified Employee”
	 	 	2	 
	2.17 “Trustee”
	 	 	2	 
	SECTION 3. PARTICIPATION
	 	 	3	 
	3.1 Eligibility
	 	 	3	 
	3.2 Election to Participate
	 	 	3	 
	3.3 Termination of Eligibility
	 	 	3	 
	SECTION 4. CONTRIBUTIONS
	 	 	3	 
	4.1 Accounts
	 	 	3	 
	4.2 Investment of Accounts
	 	 	3	 
	SECTION 5. PAYMENT OF ACCOUNT
	 	 	4	 
	5.1 General
	 	 	4	 

-i-

 

TABLE OF CONTENTS
 (continued)

	 	 	 	 	 
	 	 	Page	 
	5.2 Separation from Service
	 	 	4	 
	5.3 Change of Distribution Election
	 	 	4	 
	5.4 Death Benefits
	 	 	5	 
	5.5 Disability
	 	 	5	 
	5.6 Distributions for Payment of Employment Taxes
	 	 	5	 
	5.7 Forfeiture of Benefits
	 	 	6	 
	5.8 Delay of Payments Under Certain Circumstances
	 	 	6	 
	SECTION 6. RIGHTS OF PARTICIPANTS
	 	 	7	 
	6.1 Contractual Obligation
	 	 	7	 
	6.2 Unsecured Interest
	 	 	7	 
	6.3 Company’s Right to Anticipate Plan Obligations
	 	 	7	 
	SECTION 7. ADMINISTRATION
	 	 	7	 
	7.1 Administration
	 	 	7	 
	7.2 Indemnification
	 	 	8	 
	7.3 Expenses
	 	 	8	 
	7.4 Tax Withholding
	 	 	8	 
	7.5 Claims Procedure
	 	 	8	 
	SECTION 8. MISCELLANEOUS
	 	 	10	 
	8.1 Non-Transferability
	 	 	10	 
	8.2 Facility of Payment
	 	 	10	 
	8.3 Nonalienation
	 	 	10	 
	8.4 Discretionary Decisions
	 	 	10	 
	8.5 Rights Against the Company
	 	 	11	 
	8.6 Applicable Law and Construction
	 	 	11	 
	8.7 Illegality of Particular Provision
	 	 	11	 
	SECTION 9. AMENDMENT, MODIFICATION, SUSPENSION OR TERMINATION
	 	 	11	 

-ii-

 

LAMAR DEFERRED COMPENSATION PLAN

SECTION 1. THE PLAN

     1.1 History of the Plan

     Lamar Texas Limited Partnership and its affiliates and subsidiaries established an unfunded
deferred compensation plan for certain eligible employees, known as the “Lamar Texas Limited
Partnership Its Affiliates and Subsidiaries Deferred Compensation Plan.”

     In response to certain enacted legislation known as the “American Jobs Creation Act of 2004,”
the Board of Directors of Lamar Advertising Company hereby amends and restates the Lamar Texas
Limited Partnership and Its Affiliates and Subsidiaries Deferred Compensation Plan as the “Lamar
Deferred Compensation Plan” (hereinafter referred to as the “Plan”), for contributions made on and
after January 1, 2006, for eligible employees.

     1.2 Purpose

     The Plan is intended to provide a select group of management or highly-compensated employees
with additional compensation, payment of which is deferred until a later date. The Plan is
intended to be exempt from the application of the Employee Retirement Income Security Act of 1974,
as amended.

SECTION 2. DEFINITIONS

     Capitalized terms used in the Plan shall have the respective meanings set forth below. As the
context may require, the singular shall include the plural.

     2.1 “Account” shall mean a Participant’s Account to which the Contributions for a Participant
are credited on the books of the Company.

     2.2 “Beneficiary” shall mean the person designated as a beneficiary under Section 5.4,
including any charitable organization (as defined in Section 501(c)(3) of the Code), estate, trust,
or other estate planning entity.

     2.3 “Board” shall mean the Board of Directors of Lamar Advertising Company.

     2.4 “Code” shall mean the Internal Revenue Code of 1986, as amended. All citations to
Sections of the Code are to such Sections as they may from time to time be amended or renumbered.

     2.5 “Committee” shall mean the Compensation Committee of the Board, or such other person or
persons as may be appointed from time to time by the Board to act as the Plan’s Committee.

     2.6 “Company” shall mean Lamar Media Corp. and (except where the context requires otherwise)
its affiliates and subsidiaries which adopt the Plan.

-1-

 

     2.7 “Contributions” shall mean the contributions, if any, made by the Company to the
Participants’ Accounts pursuant to Section 4.1.

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

     2.9 “Effective Date” shall mean January 1, 2006.

     2.10 “Eligible Employee” shall mean an employee who (i) is classified by the Committee as
management or a highly compensated employee, (ii) is employed full-time by the Company, (iii) has
reached his/her thirtieth (30th) birthday, (iv) has completed 10 years of service with the Company,
(v) has reached the status of officer and (vi) is designated as an Eligible Employee by the
Committee. With respect to requirement (iv) in the preceding sentence, years of service with a
predecessor employer will not be counted.

     2.11 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. All
citations to Sections of ERISA are to such Sections as they may from time to time be amended or
renumbered.

     2.12 “Participant” shall mean an Eligible Employee who participates in the Plan pursuant to
Section 3.

     2.13 “Participation Agreement” shall mean a completed agreement between a Participant and the
Company, which shall include any amendments, attachments and appendices thereto, in such form
approved by the Administrator and filed in accordance with Section 3.2.

     2.14 “Plan Year” shall mean the calendar year.

     2.15 “Separation from Service” shall mean a termination of employment from the Company within
the meaning of Section 409A(a)(2)(A)(i) of the Code and the guidance issued pursuant thereto.

     2.16 “Specified Employee” shall mean a key employee (as defined in Section 416(i) of the Code
without regard to paragraph (5) thereof). For purposes of determining a Specified Employee, the
identification date shall be December 31.

     2.17 “Trustee” shall mean T. Rowe Price Trust Company, a Maryland limited purpose trust
company.

-2-

 

SECTION 3. PARTICIPATION

     3.1 Eligibility

     Each Eligible Employee may become a Participant in the Plan. In the event that a Participant
who is an employee of the Company ceases for any reason to be employed in a position which is
included within the definition of Eligible Employee, but the individual remains with the Company as
an employee, then any amounts in such Participant’s Account shall remain subject to the terms of
this Plan until otherwise distributable in accordance with Section 5.

     3.2 Election to Participate

     The Committee, in its sole discretion, may provide such election periods with respect to the
completion of Participation Agreements as it deems appropriate for the administration of the Plan
and which comply with Section 409A of the Code and applicable guidance.

     3.3 Termination of Eligibility

     An individual shall cease to be a Participant as of the date the Participant’s Account is
fully paid-out.

SECTION 4. CONTRIBUTIONS

     4.1 Accounts

     The Company shall establish and maintain an Account for each Participant under the Plan on
whose behalf a Company Contribution is credited to the Participant. For each year, the Company
shall have the option to credit to the appropriate Account the amounts approved by the Committee.
Periodically, each Participant shall be furnished with a statement setting forth the value of the
Participant’s Account.

     4.2 Investment of Accounts

     A Participant may direct the investment of his or her Accounts, subject to the following:

          (a) The Company shall determine the investments which will be made available as investment
options under the Plan from time to time and may but shall not be required to invest the Account in
the manner directed by a Participant.

          (b) All investment directions shall be in accordance with such rules and regulations as the
Company may establish from time to time for this purpose.

          (c) All earnings and losses on the investments held for a Participant’s Account shall be
credited to such Account.

          (d) The Company (or its Trustee) shall at all times retain title to all assets held for the
Accounts, and shall have the voting power with respect to all stock or other securities held for
the Accounts.

-3-

 

          (e) The Accounts shall be valued by the Company (or its Trustee) at fair market value as of
the last day of each calendar quarter and at such other times as may be necessary for the proper
administration of the Plan.

SECTION 5. PAYMENT OF ACCOUNT

     5.1 General

     At the time a Participant executes a Participation Agreement, the Participant shall duly
designate, execute, and file with the Committee (on the Participation Agreement or other
appropriate form designated by the Committee) the method of payment of the Participant’s Account.
Except as otherwise permitted by the Internal Revenue Service or the US Treasury under Section 409A
of the Code, a Participant’s Account shall not be distributed earlier than (i) the Participant’s
Separation from Service from the Company, (ii) the Participant’s death, (iii) the Participant’s
Disability, or (iv) the date necessary to satisfy the Participant’s employment tax obligations on
the Company FICA Amount (as described in Section 5.6). Except as otherwise provided in the Plan,
an election with respect to the method of payment shall be irrevocable.

     5.2 Separation from Service

     Subject to the provisions of this Section 5 regarding payment upon death and Disability, at
the time a Participant first executes a Participation Agreement under Section 3.2, or changes a
distribution election in accordance with Section 5.3, the Participant shall elect one of the
following methods of payment for the amount in the Participant’s Account upon Separation from
Service:

          (a) Lump Sum. The Participant shall receive a single sum cash payment equal to the
amount credited to the Participant’s Account. The amount of the Participant’s Account shall be
paid as soon as practicable but no more than 60 days following the Participant’s Separation from
Service.

          (b) Installments. A Participant may elect to receive distribution of the
Participant’s Account in installments (not more frequently than quarterly) over a period up to 5
years. Payments shall commence as soon as practicable but no more than 60 days following
Separation from Service, and the amount of each installment paid shall equal the balance in the
Participant’s Account, divided by the number of remaining installments.

          (c) Distributions to Specified Employees. Notwithstanding anything to the contrary
provided in this Plan, distributions to Specified Employees upon Separation from Service, other
than distributions due to death, shall not commence until at least 6 months after Separation from
Service. If a Specified Employee elects installments as the method of payment, any installments
payment to which such Specified Employee would otherwise be entitled during the 6-month period
following the date of Separation from Service will be accumulated and paid on the first day of the
seventh month following such Separation from Service. A Participant’s Account shall continue to be
invested pursuant to Section 4.2.

     5.3 Change of Distribution Election

-4-

 

     A Participant may change an election under Section 5.2 to delay payment or change the form of
payment at any time prior to commencement of distribution by duly completing, executing, and filing
with the Committee a new election on an appropriate form designated by the Committee; provided
however, that for any change of election to become effective: (i) such subsequent election may not
take effect until at least 12 months after the date on which the election is made and (ii) in the
case of an election (other than for reason of the Participant’s death or Disability), the first
payment with respect to which such election is made must be deferred for a period of not less than
5 years from the date such payment would otherwise have been made. In the event a Participant has
not made an election under Section 5.2 that is effective upon Separation from Service, then the
Participant shall receive a lump sum distribution under Section 5.2.

     5.4 Death Benefits

     At the time the Participant executes a Participation Agreement and at any time thereafter, the
Participant may designate a Beneficiary (or change a Beneficiary designation) to receive the unpaid
amount under the Participant’s Account in the event of the death of the Participant by duly
completing, executing, and filing with the Committee before the Participant’s death the appropriate
form designated by the Committee. In the event of the death of the Participant prior to Separation
from Service, the unpaid amount shall be paid in a lump sum cash payment to the Participant’s
Beneficiary unless the Participant has directed that payment of the Participant’s Account is to be
made upon the Participant’s death in one of the other methods of payment described in Section 5.2.
Such payment shall be paid as soon as practicable but no more than 60 days following the death of
the Participant. In the event of the death of the Participant on or after Separation from Service,
the unpaid amount shall be paid to the Participant’s Beneficiary in accordance with the method of
payment elected by the Participant for distribution upon Separation of Service unless the
Participant has directed that upon the Participant’s death, payment is to be made in one of the
other methods of payment described in Section 5.2.

     In the event a Participant has failed to make an effective Beneficiary designation in
accordance with this Section or the individual named in an effective Beneficiary election is not
alive at the time of the Participant’s death, then the death benefits payable hereunder shall be
paid to the Participant’s estate as soon as practicable in a lump sum.

     5.5 Disability

     Upon a determination by the Committee that a Participant has incurred a Disability, the
Participant’s Account shall be paid to the Participant in a lump sum payment unless the Participant
has directed that payment of the Participant’s Account be made upon the Participant’s Disability in
one of the other methods of payment described in Section 5.2. Such payment shall be paid as soon
as practicable but no more than 60 days following the Committee’s determination that a Participant
has incurred a Disability.

     5.6 Distributions for Payment of Employment Taxes

     The Committee may permit the acceleration of the time or schedule of a payment to pay the
Federal Insurance Contributions Act (“FICA”) tax imposed on compensation deferred under

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the Plan (the “FICA Amount”). Additionally, the Committee may permit the acceleration of time
or schedule of a payment to pay the income tax at source on wages imposed on the FICA Amount, and
to pay the additional income tax at source on wages attributable to the pyramiding wages and taxes.
However, the total payment under this Section may not exceed the aggregate of the FICA Amount and
the income tax withholding related to such FICA amount.

     5.7 Forfeiture of Benefits

     Notwithstanding anything herein contained to the contrary, no payment of a Participant’s
Account shall be made and all rights under the Participation Agreement of the Participant, his or
her Beneficiary, executors or administrators, or any other person, to receive payments thereof
shall be forfeited if the Participant is discharged for malfeasance or wrongful conduct.

     5.8 Delay of Payments Under Certain Circumstances

     Notwithstanding the provisions of this Section 5, to the extent permitted by Section 409A of
the Code and the regulations thereunder the Company, in its discretion, may delay payment to a date
after the payment date designated in such paragraphs under any of the following circumstances:

          (a) Payments Made As Soon As Practicable After the Specified Date. Payments will be
made as soon as practicable after the date specified in this Section 5 and in any event within the
same calendar year or, if later, by the fifteenth day of the third calendar month following the
date specified in this Section 5.

          (b) Payments that Would Violate a Loan Covenant or Similar Contractual Requirement or
Jeopardize the Ability of the Company to Continue as a Going Concern. Payment will be delayed
where the Committee reasonably anticipates that (i) the making of the payment will violate a term
of a loan agreement or other similar contract to which the Company is a party and such violation
will cause material harm to the Company, or (ii) the making of the payment at the date specified
under the Plan will jeopardize the ability of the Company to continue as a going concern; provided
that the delayed payment is made at the earliest date at which the Committee reasonably anticipates
that the making of the payment will not cause such violation or no longer have such effect, or such
violation will not cause material harm to the Company, and provided that the facts and
circumstances indicate that the Company entered into such loan agreement or other similar contract
for legitimate business reasons and not to avoid the restrictions on deferral elections and
subsequent deferral elections under Section 409A of the Code.

          (c) Payments that Would Violate Federal Securities Laws or Other Applicable Law.
Payment will be delayed where the Committee reasonably anticipates that the making of the payment
will violate federal securities laws or other applicable law; provided that the delayed payment is
made at the earliest date at which the Committee reasonably anticipates that the making of the
payment will not cause such violation.

     5.9 Acceleration Prohibited

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     Notwithstanding anything herein to the contrary, the acceleration of the time or schedule of
any payment due under the Plan is prohibited, except as provided in regulations and administrative
guidance promulgated under Section 409A of the Code.

SECTION 6. RIGHTS OF PARTICIPANTS

     6.1 Contractual Obligation

     All amounts payable in accordance with this Plan shall constitute a general unsecured
obligation of the Company. Such amounts, as well as any administrative costs relating to the Plan,
shall be paid out of the general assets of the Company, to the extent not paid by a grantor trust
established pursuant to Section 6.3. The Committee may decide that a Participant’s Account may be
reduced to reflect allocable administrative expense.

     6.2 Unsecured Interest

     Neither the Company nor the Committee in any way guarantees the investment performance of a
Participant’s Account. No special or separate fund shall be established, and no segregation of
assets shall be made to assure the payment of benefits hereunder. No Participant or Beneficiary
hereunder shall have any right, title, or interest whatsoever in any specific asset of the Company.
Nothing contained in this Plan and no action taken pursuant to its provisions shall create or be
construed to create a trust of any kind, or a fiduciary relationship, between the Company and a
Participant or any other person. To the extent that any person acquires a right to receive
payments under this Plan, such right shall be no greater than the right of any unsecured general
creditor of the Company.

     6.3 Company’s Right to Anticipate Plan Obligations

     The Company may, for administrative reasons, establish a grantor trust for the benefit of
Participants participating in the Plan. The assets of said trust, as well as any insurance
contracts held by such trust, shall be held separate and apart from other Company funds and shall
be used exclusively for the purposes set forth in the Plan and the applicable trust agreement,
subject to the following conditions:

          (a) The creation of said trust shall not cause the Plan to be other than “unfunded” for
purposes of ERISA;

          (b) The Company shall be treated as “grantor” of said trust for purposes of Section 677 of the
Code; and

          (c) Said trust agreement shall provide that its assets may be used to satisfy claims of the
Company’s general creditors in the event of the Company’s insolvency, and the rights of such
general creditors are enforceable by them under federal and state law.

SECTION 7. ADMINISTRATION

     7.1 Administration

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          (a) The Plan shall be administered by the Committee. The Committee may appoint one or more
individuals and delegate such of its powers and duties described herein as it deems desirable to
any such individual, in which case every reference herein made to the Committee shall be deemed to
mean or include the individuals as to matters within the jurisdiction of such delegations. The
Committee is authorized to construe and interpret all provisions of the Plan, to remedy any
inconsistencies or omissions, to resolve any ambiguities, to adopt rules and practices concerning
the administration of the Plan, and to make any determinations and calculations necessary or
appropriate hereunder. The determination of the Committee as to any disputed question arising
under this Plan, including questions of construction and interpretation, shall, in all events, be
final, binding, and conclusive on all persons.

          (b) The Committee may engage the services of accountants, attorneys, actuaries, investment
consultants, and such other professional personnel as are deemed necessary or advisable to assist
them in fulfilling their responsibilities under the Plan. The Committee and their delegates and
assistants will be entitled to act on the basis of all tables, valuations, certificates, opinions,
and reports furnished by such professional personnel.

     7.2 Indemnification

     To the extent permitted by law, all agents and representatives of the Committee shall be
indemnified by the Company and saved harmless against any claims, and the expenses of defending
against such claims, resulting from any action or conduct relating to the administration of the
Plan, except claims arising from gross negligence, willful neglect, or willful misconduct.

     7.3 Expenses

     The cost of payments from this Plan and the expenses of administering the Plan shall be borne
by the Company, except as otherwise may be provided herein.

     7.4 Tax Withholding

     The Company may withhold from any payment that may be obligated under the Plan, or any other
amounts owed by the Company to the Participant or any Beneficiary, any federal, state, local, or
other taxes required by law to be withheld with respect to such payment and such sums as the
Company may reasonably estimate are necessary to cover any other amounts for which the Company may
be legally liable and which may be assessed with regard to such payment.

     7.5 Claims Procedure

          (a) Claims. Claims for benefits under the Plan shall be submitted in writing to the
Committee or its designee.

          (b) Denial of Claim. If any claim for benefits is wholly or partially denied, the
claimant shall be given written or electronic notice within 90 days following the date on which the
Committee receives the claim, which notice shall set forth:

               (i) the specific reason or reasons for the denial;

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

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

               (iv) a description of the Plan’s claim review procedure.

     If special circumstances require an extension of time for processing the claim, written notice
of an extension shall be furnished to the claimant prior to the end of the initial period of 90
days following the date on which the Committee receives the claim. Such an extension may not
exceed a period of 90 days beyond the end of said initial period.

     Special timeframe for disability benefits: If a claimant makes a claim for benefits based on
the claimant’s disability and the claim is wholly or partially denied, the claimant shall be given
written or electronic notice within 45 days following the date on which the Committee receives the
claim. If special circumstances require an extension of time for processing the claim, the
Committee may take up to two consecutive 30-day extensions of time to decide the claim. If the
Committee uses a 30-day extension, the Committee shall notify the claimant in writing before the
beginning of the 30-day extension.

          (c) Claim Review Procedure. The claimant or the claimant’s authorized representative
shall have 60 days after receipt of notification of denial of a claim to request a review of the
denial by making written request to the Committee and may review pertinent documents and submit
issues and comments in writing within such 60-day period.

     Not later than 60 days after receipt of the request for review, the Committee shall render and
furnish to the claimant a written or electronic notice of decision. If the claim is wholly or
partially denied, the notice shall include specific reasons for the decision and shall make
references to specific Plan provisions on which it is based. If special circumstances require an
extension of time for processing, the decision shall be rendered not later than 120 days after
receipt of the request for review, provided that written notice and explanation of the delay are
given to the claimant prior to commencement of the extension. Such decision by the Committee shall
not be subject to further review.

     Special timeframe for disability benefits: If the claim for benefits is based on the
claimant’s disability, the claimant or the claimant’s authorized representative shall have 180 days
after receipt of notification of denial of a claim to request a review of the denial by making
written request to the Committee. Not later than 45 days after receipt of the request for review,
the Committee shall render and furnish to the claimant a written or electronic notice of decision.
If special circumstances require an extension of time for processing, the decision shall be
rendered not later than 90 days after receipt of the request for review, provided that written
notice and explanation of the delay are given to the claimant prior to commencement of the
extension.

          (d) Exhaustion of Remedy. No claimant shall institute any action or proceeding in any
state or federal court of law or equity or before any administrative tribunal or
 

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arbitrator for a claim for benefits under the Plan until the claimant has first exhausted the
procedures set forth in this Section 7.5.

          (e) Committee Discretion. Benefits under this Plan will be paid only if the Committee
decides in its discretion that the Participant or Beneficiary is entitled to them.

SECTION 8. MISCELLANEOUS

     8.1 Non-Transferability

     In no event shall the Company make any payment under this Plan to any assignee or creditor of
a Participant or of a Beneficiary, except as otherwise required by law. Prior to the time of a
payment hereunder, a Participant or a Beneficiary shall have no rights by way of anticipation or
otherwise to assign or otherwise dispose of any interest under this Plan, nor shall rights be
assigned or transferred by operation of law.

     8.2 Facility of Payment

     In the event the Committee determines that any Participant or Beneficiary receiving or
entitled to receive benefits under the Plan is incompetent to care for their affairs and in the
absence of the appointment of a legal guardian of the property of the incompetent, benefit payments
due under the Plan (unless prior claim thereto has been made by a duly qualified guardian,
committee, or other legal representative) may be made to the spouse, parent, brother or sister, or
other person, including a hospital or other institution, deemed by the Committee to have incurred
or to be liable for expenses on behalf of such incompetent. In the absence of the appointment of a
legal guardian of the property of a minor, any minor’s share of benefits payable under the Plan may
be paid to such adult or adults as in the opinion of the Committee have assumed the custody and
principal support of such minor.

     The Committee, however, may require that a legal guardian for the property of any such
incompetent or minor be appointed by a court of competent jurisdiction before authorizing the
payment of benefits in such situation. Benefit payments made under the Plan in accordance with
determinations of the Committee shall be a complete discharge of any obligation arising under the
Plan with respect to such benefit payments.

     8.3 Nonalienation

     No benefits payable under the Plan shall be subject to alienation, sale, transfer, assignment,
pledge, attachment, garnishment, lien, levy, or like encumbrance. No benefit under the Plan shall
in any manner be liable for or subject to the debts or liabilities of any person entitled to
benefits under the Plan.

     8.4 Discretionary Decisions

     All decisions, determinations, or interpretations which the Board, the Committee, the Company,
or any member, officer or employee thereof are authorized to make under the Plan (including the
delegation of any authority hereunder to another party) shall be made in that party’s sole
discretion and shall be final, binding, and conclusive on all interested persons.

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     8.5 Rights Against the Company

     Neither the establishment of the Plan, nor any modification thereof, nor any payments
hereunder shall be construed to give any Participant the right to be retained in the service of the
Company or, in the case of an employee, to interfere with the right of the Company to discharge the
Participant at any time.

     8.6 Applicable Law and Construction

     This Plan shall be governed by, construed and administered in accordance with the applicable
provisions of ERISA, and any other applicable federal law, including Section 409A of the Code, and
to the extent not preempted by federal law this Plan shall be governed by, construed and
administered under the laws of the State of Louisiana other than its laws respecting conflict of
laws. This instrument shall be binding on all successors and assignees of the Company.

     8.7 Illegality of Particular Provision

     The illegality of any particular provision of this document shall not affect the other
provisions, and the document shall be construed in all respects as if such invalid provision were
omitted. If the inclusion of any employee(s) as a Participant under this Plan would cause the Plan
to fail to comply with the requirements of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, or
Section 409A of the Code, then the Plan shall be severed with respect to such employee(s), who
shall be considered to be participating in a separate arrangement.

SECTION 9. AMENDMENT, MODIFICATION, SUSPENSION OR TERMINATION

     The Company may, at any time, in its sole discretion, amend, modify, suspend or terminate the
Plan in whole or in part, except that no such amendment, modification, suspension or termination
shall have any retroactive effect to reduce any amounts allocated to a Participant’s Account. The
authority to amend or modify the Plan shall include the authority to amend the procedure for
amending or modifying the Plan and the authority to amend or modify any related instrument or
agreement. In the event that this Plan is terminated, the distribution of the amounts credited to
a Participant’s Account shall not be accelerated but shall be paid at such time and in such manner
as determined under the terms of the Plan immediately prior to termination as if the Plan had not
been terminated.

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