ELECTRO RENT CORPORATION SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Exhibit 10.1

ELECTRO RENT CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

TABLE OF CONTENTS

ELECTRO RENT CORPORATION SUPPLEMENTAL EXECUTIVE

RETIREMENT PLAN

ARTICLE I

PLAN HISTORY AND FEATURES

     Electro Rent Corporation has adopted this Plan for the benefit of certain of its employees. The Plan is effective January 1, 1987.

     The Plan is a non-qualified deferred compensation program which is a “pension benefit plan” subject to the Employee Retirement Income Security Act of 1974. Although benefits under the Plan are unfunded contractual obligations of the Employer, the Employer may transfer money or other property to one or more “rabbi” trusts and direct that benefits under the Plan be paid out of such assets.

     The purpose of the Plan is to provide benefits that cannot be provided under qualified retirement programs of the Employer because of limitations imposed by federal law, including Internal Revenue Code Section 415 limitations on allowable benefits, Code Section 401(k) limitations on cash or deferred plan deferrals, and Code Section 401(a)(4) limitations on the granting of benefits based on non-qualified deferred compensation and on discrimination in contributions or benefits.

ARTICLE II

DEFINITIONS

     The following terms, when capitalized, shall have the meaning specified below unless the context clearly indicates to the contrary.

     2.1 Board of Directors: The Board of Directors of Electro Rent Corporation.

     2.2 Code: The Internal Revenue Code of 1986, as amended from time to time.

     2.3 Deferral: An amount contributed to this Plan by the Employer in lieu of being paid to a Participant as salary or wages. Deferrals shall be made under salary reduction arrangements between each Participant and the Employer. Article IV contains the provisions under which Deferrals may be made. Deferrals may only be withheld from amounts earned after execution of the salary reduction arrangement pursuant to which the Deferral is being made.

     2.4 Employee: An individual who renders services to the Employer as a common law employee or officer ( i.e. , a person whose wages from the Employer are subject to federal income tax withholding). A person rendering services to the Employer purportedly as an independent contractor shall not be treated as an Employee before the Employer has acknowledged that it must withhold federal income taxes from his or her pay.

     2.5 Employer: Electro Rent Corporation and any other company which adopts the Plan, and any successor entity which continues the Plan or such companies collectively. In contexts in which actions are required or permitted to be taken or notice is to be given, the Employer shall mean Electro Rent Corporation or any successor company.

     2.6 Employment: The period during which an individual is an Employee. Employment shall commence on the day the individual first performs services for the Employer as an Employee and shall terminate on the day the Employee resigns, dies, retires or is discharged or permanently laid off.

     2.7 ERISA: The Employee Retirement Income Security Act of 1974.

     2.8 Participant: Any Employee who is included in the Plan pursuant to Article III.

     2.9 Plan: This document and any Trust Agreement.

     2.10 Plan Administrator: Electro Rent Corporation, acting through its chief executive officer or such other person as the Employer shall designate. The Plan Administrator is the Plan’s “named fiduciary” within the meaning of Section 402(a)(2) of ERISA.

     2.11 Trust or Trust Fund: The fund established under one or more Trust Agreements pursuant to the Plan.

     2.12 Trust Agreement: Any agreement between a trustee and the Employer entered into for the purpose of investing and administering the Trust Fund. Each Trust Agreement constitutes a part of this Plan.

ARTICLE III

PARTICIPATION

     3.1 Requirements for Participation

          A person may participate in the Plan if: (1) the Plan Administrator determines that the limitations of Code Sections 415 or 401(k) would preclude the individual from making Deferrals to the maximum amount permitted under the Electro Rent Corporation Employee Stock Ownership and Savings Plan (the “Savings Plan”). In addition, any individuals selected by the Employer may participate in the Plan. A person shall become a Participant on the date he or she is notified by the Plan Administrator in writing that he or she has become a Participant.

     3.2 Termination of Participation

          An individual who has become a Participant shall cease to be a Participant upon termination of Employment.

ARTICLE IV

BENEFITS

     4.1 Supplement to the Savings Plan

          (a) To the extent that a Participant cannot contribute the maximum amount permitted under the Savings Plan because of Code Section 415 or 401(k) limitations applicable to the Savings Plan, the amount that cannot be contributed to the Savings Plan shall automatically be treated as a Deferral under this Plan in accordance with contribution elections which have been made under the Savings Plan, except as otherwise permitted by the Plan Administrator. A Participant may make “catch-up” Deferrals to this Plan retroactive to January 1, 1987 but starting at a later date during 1987. Any Deferral to be made under this Plan shall be deducted from the Participant’s paycheck on the same date the amount would have been deducted under the Savings Plan but for legal limitations, or at such other time as the Plan Administrator specifies, and shall be credited to the Participant’s account in accordance with Section 4.3.

          (b) The Employer makes matching contributions under the Savings Plan. Matching contributions which cannot be provided under the Savings Plan due to Code Section 415 or applicable anti-discrimination requirements shall be provided under this Plan to the extent they are “earned” by the Participant by making contributions to the Savings Plan or Deferrals to this Plan. Employer matching contributions made to this Plan shall be subject to the same vesting provisions as the Savings Plan.

     4.2 Accounts

          Deferrals or Employer matching contributions for a Participant under Section 4.1 shall be credited to a separate unfunded account on the books of the Employer as soon as reasonably possible after such amounts have been ascertained. These accounts shall be credited with interest at a rate to be determined by the Plan Administrator. To the extent an account is funded through the Trust Fund, it shall be credited instead with the approximate actual earnings (or losses) on the portion of the Trust Fund being held for the Participant’s benefit as authorized by the Plan Administrator.

     4.3 Payment of Benefits

          Benefits under this Section shall be paid to the Participant upon termination of Employment. A Participant’s benefit under the Plan shall consist of his or her Account balance as of the date distribution is made or commences. Payment shall be made in a cash lump sum if the Participant’s benefit under the Plan is less than $40,000. For benefits from $40,000 to $200,000, payment shall be made in no more than five annual installments. The amount of each installment shall be calculated as follows; however, no installment shall be less than $20,000 except to the extent that the unpaid account balance is less than $20,000, in which case the installment shall be equal to the entire unpaid account balance: the first installment shall be one-fifth of the total benefit, the second installment shall be one-fourth of the remaining benefit, the third installment, one-third, etc. For benefits exceeding $200,000, payment shall be made in ten annual installments, each payment being one-tenth of the unpaid amount of the benefit. By written agreement between the Plan Administrator and the Participant executed at the time the individual first becomes

a Participant hereunder, the Plan Administrator in its sole discretion may authorize a different form of payment. Payments shall commence as of the first day of the