Exhibit 10.4
QRS NON-QUALIFIED DEFERRED
COMPENSATION PLAN
TABLE OF CONTENTS
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Page
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Article 1.
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Introduction
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2
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Article 2.
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Definitions
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3
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Article 3.
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Plan
Specifications
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6
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Article 4.
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Distributions
and Loans
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8
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Article 5.
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Plan
Investment
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9
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Article 6.
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Beneficiary
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10
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Article 7.
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Vesting and
Forfeitures
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11
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Article 8.
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Benefits
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12
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Article 9.
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Administration
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13
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Article 10.
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Miscellaneous
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14
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ARTICLE 1. - INTRODUCTION
Whereas, the Employer wishes to establish a
supplementary employee retirement plan to provide deferred
compensation for a select group of highly compensated employees as
chosen by the Employer effective December 1, 1997, and
Whereas, the Employer, who has determined
pursuant to the laws of the Employer’s state, may establish
such a Plan;
Whereas, the Employer wishes to provide that the
Plan to be established under this Agreement shall be called the QRS
Non-Qualified Deferred Compensation Plan, and
Whereas, the Employer wishes to provide under
the Plan for the payment of vested accrued benefits to the
Participants and their beneficiary or beneficiaries, and
Whereas, the Employer wishes to provide under
the Plan that the Employer shall pay the entire cost of vested
accrued benefits from its general assets and. set aside
contributions by the Employer to meet its obligations under the
Plan, and
Whereas, the Employer intends that the assets of
the Plan and Trust shall at all times be subject to the claims of
the general creditors of the Employer,
Now therefore, the Employer does hereby
establish the Plan as follows, and does also hereby agree that the
Plan shall be structured, held and disposed of as
follows:
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ARTICLE 2. - DEFINITIONS
“Age” means age as of the
Participant’s last birthday.
“Beneficiary” means the beneficiary
or beneficiaries designated by the Participant in the Enrollment
Agreement who are to receive any distributions payable upon the
death of the Participant.
“Board” means the Employer’s
Board of Directors.
“Compensation” means the amount
payable to an Eligible Employee, for services rendered to the
Employer, such as wages, salary, overtime, commissions, amounts
payable pursuant to written contracts, bonuses and other
remuneration that is reportable to the Federal Government for the
purpose of withholding Federal income taxes, or which would be
reportable if it were not deferred by the Eligible Employee under
this Plan.
“Computation Period” means the
l2-consecutive month period ending on the last day of the Plan
Year.
“Deferred Compensation” means the
amount of Compensation that the Participant elects to defer under
the Enrollment Agreement and that the Participant and the Employer
mutually agree shall be deferred in accordance with the Plan and/or
the amount of any contributions made by the Employer on behalf of
the Participant.
“Disability” A Participant suffers a
Disability when, due to sickness or accidental injury, the
Participant is unable to perform, for wage or profit, the material
and substantial duties of the Participant’s own occupation at
the time of Disability. A Participant will only be considered to
have suffered a Disability while under the regular care of a doctor
and not working at any job for wage or profit. The Employer shall
have the exclusive right of determining, with the assistance of a
competent physician, whether a Participant has suffered
Disability.
“Effective Date” means December 1,
1997.
“Eligible Employee” means a member
who is considered to be (i) a highly compensated employee for
purposes of the 401(k) Plan where such term is defined under
section 414(q) of the Internal Revenue Code of 1986, and (ii) part
of a select group of management or highly compensated individuals
as described in section 201(2) of ERISA who performs services for
the Employer as an employee and who has been chosen by the
Employer, in his sole discretion, to be eligible to participate in
the Plan.
“Employer” means QRS Corporation or
any successor thereto, and any other Affiliated Employer which
adopts this plan.
“Employment or Re-employment Commencement
Date” means the date on which the Eligible Employee first
performs an Hour of Service for the Employer.
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“Enrollment Agreement” means the
agreement entered into by a Participant which specifies the amount
of Deferred Compensation, the Participant’s Beneficiary and
the Participant’s election of form of payment on Termination
of Employment.
“Entry Date” January 1
st
, April 1
st
, July 1
st
or October 1
st
.
“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.
“Hardship Withdrawal” A withdrawal
is on account of hardship if it is due to an unforeseen emergency
which creates a hardship and which occurs during employment and
prior to the Participant’s retirement and commencement of
benefits. An unforeseen emergency is defined as (1) a severe
financial hardship to the Participant, or (2) loss of the
Participant’s or beneficiary’s property due to
casualty, or (3) other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of
the Participant or beneficiary.
Payment may not be made to the extent that such
hardship is or may be relieved (1) through reimbursement or
compensation by insurance or otherwise, (2) by liquidation of the
Participant’s assets to the extent the liquidation of these
assets would not itself cause severe financial hardship or (3),
cessation of deferrals under the Plan.
“Hour of Service” is each hour for
which an employee is paid or entitled to payment for the
performance of duties for the Employer during the Plan Year or
other applicable 12 consecutive month period under the Plan. The
employee is paid or entitled to payment for the performance of
duties and during a period of time during which no duties are
performed for reasons including, but not limited to, vacation,
holiday, illness, incapacity, disability, layoff, jury duty,
military duty or leave of absence.
Hours of Service shall be determined on the
basis of weeks worked. An Employee will be credited with forty-five
(45) Hours of Service if such employee would be credited with at
least one (1) Hour of Service during the week.
“Normal Retirement Age” means the
later of Age 65.
“Participant” shall mean any
Eligible Employee selected by the Employer who has elected to
participate in the Plan by entering into an Enrollment
Agreement.
“Participant’s Account” shall
mean the separate record of each Participant’s salary
deferral contributions, matching contributions and any earnings or
loss credited thereto.
“Plan” QRS Non-Qualified Deferred
Compensation Plan effective December 1, 1997.
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“Plan Year” The first Plan Year will
be a short plan year from December 1, 1997 through December 31,
1997. All subsequent plan years will be the 12 consecutive month
period beginning on each subsequent January 1
st
, a Plan Anniversary,
and ending on the next following December 31
st
.
“Service” means employment with the
Employer including leaves of absence authorized by the Employer
(such as a temporary absence authorized by the Employer because of
vacation, sickness, injury, disability, layoff, or jury duty) and
service in the armed forces of the United States, commencing while
he is an employee, provided that he returns to the employment of
the Employer as an employee at the end of such authorized absence,
or within the applicable period specified in the Military Selective
Service Act of 1967, and amendments thereto, after release from
such service with the armed forces.
Moreover, in calculating the number of a
Participant’s Years of Credited Service and length of
participation in this Plan for all purposes hereunder, such period
of absence or service with the armed forces subsequent to becoming
a Participant hereunder, will be counted. However, no Contributions
will be made to the Plan during such periods of absence or service
with the armed forces.
“Termination of Service” shall mean
severance of the Participant’s services for the Employer for
any reason, including retirement.
“the 40l(k) Plan” is the QRS 4O1(k)
Plan.
“Top Hat Plan” is a non-qualified
deferred compensation plan for a select group of management or
highly compensated employees.
“Trust” shall mean the Trust
Agreement between the Employer and the Trustees.
“Trustees” means the Trustees named
in the Trust and their duly appointed and acting successor
Trustee(s) which shall be appointed by the corporation and may
consist of one or more persons.
“Year of Service”
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(a)
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An Employee
shall be considered to have rendered a Year of Service if he
completes at least 1,000 Hours of Service during the applicable
Computation Period.
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(b)
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If an
Employee’s Service is terminated and if at any time he
subsequently resumes his employment wit
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