| **EXHIBIT 10.29** | **PROJECT#3**
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**Rockof Ages Canada Inc.**

 

 

 

 

 

 

 

 

 

 

 

 

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**SupplementalRetirement Plan for the President (DL)**

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**Planeffective date: January 1, 2007**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**November 21, 2007**

 

**Table of contents**

                                  

                                  1.         Plan summary

                                   2.         Introduction

                                   3.         Definitions

                                   4.         Eligibility

                                   5.         Contributions

                                   6.         Retirementdate

                                   7.         Valueof the Plan

                                   8.         Targetdefined benefit pension

                                   9.         Retirementbenefit

                                   10.       Terminationof employment benefit

                                   11.       Deathbenefit

                                   12.       Temporaryabsences

                                   13.       Terminationfor cause

                                   14.       Fundingof the Plan

                                   15.       Futureof the Plan; Termination or Modification

                                   16.       Generalprovisions

   
                               

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**                        1.         Plan Summary**

 

Sponsor (Company)

Rock of Ages Canada Inc.

Participant

Donald Labonté, President

Born on September 8, 1961

Employment date: May 12, 1980

Date of entry: January 1, 2007

Company fiscal year end

December 31

Plan effective date

January 1, 2007

Normal retirement age

65

Basic Plan

The defined contribution plan registered  with Revenue Canada under the number 584708

Employer

Rock of Ages Canada Inc.

Initial contribution

113 503,53 $

Plan type

Defined benefit plan (target)

Plan name

Supplemental Retirement Plan for the  President (DL)
 
 

 

 

 

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**2.         Introduction**Thissupplemental retirement plan (the "Plan") has been established by aresolution of the Board of Directors of Rock of Ages Canada Inc. (the"Company" or "Employer") adopted on November 21, 2007. The effective date of the Plan is January 1, 2007.The purpose ofthe Plan is to provide benefits on termination of employment, death orretirement for the Participant over and above the benefits the Participant willbecome entitled to under the Company's defined contribution employee pensionplan referred to as the "Basic Plan" in the Plan summary. Such benefitsare in respect of the years the Participant has been in the service of theEmployer. **3.         Definitions**The followingwords and expressions will be given the meaning defined in this article and inthe summary of the Plan unless it is obvious from the context that they areused with their common meaning.3.01     Actuariallyequivalent
Defined benefitsfor which the commuted values are equal.
3.02      Actuary
A fellow of the Canadian Institute of Actuariesdesignated by the Employer.
3.03     Benefitdate
The date thebenefits are required to be calculated under the Plan.
3.04     Bestaverage salary
The average ofthe Participant's annual salaries for the best 3 consecutive years.
3.05     CommutedvalueThe lump sumequivalent to the defined benefits provided under the Plan, using the actuarialbases prescribed by the Canadian Institute of Actuaries, applicable at the timethe lump sum is calculated.3.06     Custodian
The financialinstitution chosen by the Employer to manage the assets of the trust fund, reportto the authorities and pay the benefits.

 

 
 
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3.07     EmployerThe Company whose name is given in the      summary and who employs the Participant. The Employer is responsible for      all the aspects of the administration of the Plan.
3.08     Normal retirement date

The first day of the monthfollowing normal retirement age specified in the Plan Summary.

3.09     Salary
The normalremuneration paid by the Employer to the Participant. The salary does notinclude bonuses or any kind of remuneration in excess of the normal remuneration.
3.10     Spouse

Same meaning asgiven by the Basic Plan.

3.11     Trustagreement

An agreemententered into between the Employer and the custodian concerning the investmentof the trust fund and other duties of the custodian.

3.12     Trustfund

A fund createdand maintained for the purpose of funding and paying the benefits provided bythe Plan.

3.13     Yearsof credited service
Years ofcredited service are all the years the Participant has been in the service ofthe Employer from his most recent date of employment. Years of service cease toaccrue on termination of employment, death or on retirement. Periods oftemporary absence without remuneration are not included in the years ofcredited service.
**4.         Eligibility**

Only the personreferred to in the Plan Summary as the Participant is eligible to join thispension Plan.

**5.         Contributions**

5.01     Employeecontributions

No contributionsare required or allowed by the Participant.
 
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5.02     Employerinitial contribution
The Employerwill pay before one year from the effective date, in respect of servicesrendered by the Participant between his employment date and his date of entryin the Plan an initial contribution in the amount stated in the Plan Summary. 5.03     Employercurrent service contribution Commencing onthe effective date of the Plan and continuing each year until the Participant'stermination of employment, death or retirement, the Employer will pay inrespect of the service rendered during the year a contribution in the amount ofthe excess, if any, of 13 % of the Participant's salary over the Employer'srequired normal contribution for the year to the Basic Plan. 
The Employer'scurrent service contributions are paid annually prior to the end of the year.
 
5.04     Employeradditional contributions
 If the Employerdecides that it is appropriate to do so, it will have the Plan valued by anactuary to determine by how much the projected benefit at normal retirementwill be off from the target defined benefit pension. Based on the results ofthe valuation report, the Employer may, at its sole discretion, make additionalcontributions without exceeding the contributions recommended by the actuary'sreport. Additional contributions by the Employer are completely voluntary andthe Employer shall not be obligated to make any such additional contributions. 
**6.         Retirementdate**
 
6.01     Normalretirement date
 
The normalretirement date is the first day of the month following the normal retirementage specified in the Plan Summary.
 
6.02     Earlyretirement date
 
The Participantmay retire within 10 years preceding his normal retirement date.
 
6.03     Postponedretirement date
 
The Participantmay postpone his retirement if he remains in the service of the Employer beyondhis normal retirement date.
 His retirementdate will then be the first day of the month following the date he leaves theservice of the Employer. The postponed retirement date may not be later thanDecember 1 of the year the Participant reaches age 71. 
 

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**7.         Valueof the Plan**

 The value of thePlan is equal to the sum of all contributions including, if applicable,Employer additional contributions made to the Plan from the effective date tothe benefit date together with any investment earnings on the assets of thePlan, less any expenses paid by the Plan if any and less any amount paid underthe installment option. The value of the Plan includes any tax refundable byRevenue Canada. **8.         Targetdefined benefit pension** 
The targetdefined benefit pension on any given benefit date is a pension the amount ofwhich is calculated as follows:
 
2 % times the best average salary times the number of years ofcredited service.
 
The type ofpension for the defined benefit pension is as follows:
 Level (notindexed). Joint and last survivor, reducing to 60 % after the Participant'sdeath and not before the end of the guaranteed period. Guaranteed period of atleast 10 years. 
The targetdefined benefit pension is actuarially reduced on early retirement if thebenefit date is within 10 years of the normal retirement date.
 
The targetdefined benefit pension includes the pension which is actuarially equivalent tothe value of the amount in the Basic Plan.
 **9.         Retirementbenefit** On early, normalor postponed retirement, the Participant is entitled to receive a lump sum equalto the value of the Plan or, if he finds it more convenient he may elect theinstallment option. If theParticipant elects the installment option, instead of paying the value of thePlan in a lump sum, the Plan will pay each year, for a period of 5 years, apercentage of the value of the Plan as follows: 
                                             Year

                                                            1                       20 %

                                                            2                       25 %

                                                            3                   331/3%

                                                            4                       50 %

                                                            5                      100%
 The firstinstallment will be payable within one month from the date of retirement andthe following installments will be payable each year on the anniversary of thefirst installment. 
If theParticipant dies prior to the end of the installments, the value of the Planwill become payable to the Participant's beneficiary in a lump sum.

                  

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**10.       Terminationof employment benefit**
 If theParticipant ceases to be employed by the Employer for a reason other thandeath, before becoming eligible to an early retirement, he is entitled toreceive a lump sum equal to the value of the Plan. **11.       Deathbenefit** 
On death of the Participantprior to his retirement, a death benefit equal to the value of the Plan becomespayable to his beneficiary.
 
**12.       Temporaryabsences**
 If theParticipant is absent from work, with remuneration, the contributions to thePlan continue. If the Participant is absent from work without remuneration thecontributions to the Plan cease and if after 24 months of such absence theParticipant does not return to work he is deemed to have terminated employmentand the benefits on termination of employment become payable. 
**13.       Terminationfor cause**
 Notwithstandingthe other provisions of this Plan, if the Participant ceases to be employed bythe Employer and if the termination is at the request of the Employer and isdue to gross negligence, wilful misconduct, improper behaviour for the functionoccupied or serious professional fault, no benefits will be payable from thePlan on such termination of employment. 
**14.       Fundingof the Plan**
 
14.01   RCA
 
The Plan isfunded as a retirement compensation arrangement as defined in article 248 ofthe Canadian Income Tax Act.
 14.02   Expenses Expenses formanaging the assets of the Plan and custodian expenses are paid out of theassets of the Plan. Initial set up expenses are paid by the Employer. Otherexpenses, if any, are paid out of the assets of the Plan unless the Employer,at its sole discretion, elects to pay them. 
14.03   Managementof the trust fund
 
The investmentof assets is done by the custodian according to the instructions provided bythe Employer.
 
 
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14.04   Appointmentof the Actuary
 
The Employer mayappoint an Actuary for the Plan. The role of the Actuary would normally be asfollows:
 
•     value the defined benefit aspects of the Plan and report on the level offunding; 
•     determine the required contributions to reach the target;
 
•     for the defined contribution aspects of the Plan, project the income of theParticipant at retirement and report on the success of the Plan in attaining itsobjectives and in meeting the reasonableness criteria of Revenue Canada;
 
•     periodically analyse the performance of the assets of the Plan;
 
•     update the rules of the Plan if necessary;
 
•    provide illustrations to the Participant.
 **15.       Futureof the Plan; Termination or Modification**
It is theintention of the Employer to maintain this Plan in force indefinitely while theParticipant is in the service of Employer. Provided, however, the Employerreserves the right at all times and in its sole discretion to terminate thePlan or to modify it in whole or in part.  Such termination or modification maynot reduce the benefits accumulated under the Plan prior to the date of suchtermination or modification without the prior written consent of theParticipant.  This provision does not supersede or modify in any respect theEmployer's right to terminate the Plan and the benefits payable hereunder forcause as provided in section 13 hereof.

**16.       Generalprovisions**

16.01   Applicablelaw

This Plan is tobe interpreted in accordance with the laws of the province of Quebec.

16.02   Conflictingprovisions

Any provision ofthe Trust agreement not compatible with the provisions contained in thisdocument is void.

16.03   Proofof age

The Participantmust submit evidence of age for himself and for any other person the pensionpayments are conditional on the survival of.

 

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16.04   Noguarantee of employment
 This Plan maynot be interpreted as conferring to the Participant any guarantee of employmentwith the Employer and it may not be used in any way by the Employer toterminate the employment of the Participant. 
16.05   Limitationof financial responsibility of the Employer
 
The assets inthe trust fund are not assets of the Employer and the responsibility of theEmployer is limited to the payment of the contributions as they become due.
 
16.06   Currency
 
All amountspayable to the Plan or by the Plan are payable in the Canadian legal currency.
 16.07   Assignmentor alienation 
Unless otherwisestated in the law, the following cannot be assigned or alienated:
 
            1.         thevalue of the Plan;

            2.         anyamount refunded or benefit paid under the Plan.
 
The rights of aperson under the Plan cannot be assigned, charged, anticipated, given assecurity or surrendered.
 
16.08   Paymentof benefits
 The Participantmay name a beneficiary to receive the benefits payable by the Plan after hisdeath. The nomination of a beneficiary must be done in writing. It must besigned by the Participant and by a witness and filed with of Employer. 
The benefitspayable by the Plan while the Participant is alive are payable to theParticipant. The benefits payable by the Plan after the Participant's death arepayable to the beneficiary named by the Participant prior to his death or inthe absence of a named beneficiary they are payable to the Participant'sestate.
 IN WITNESS WHEREOF, this      Supplemental Retirement Plan for the President (DL) has been executed by      the Employer as of the effective date hereof. EMPLOYER: 
ROCKOF AGES CANADA, INC.
______________________By:/s/  Kurt M. Swenson          WitnessKurt M.      Swenson, Chairman & CEO
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The undersignedParticipant has carefully reviewed this Plan and understands and accepts itsterms as written:
   PARTICIPANT  _____________________________                          /s/  Donald Labonte                                 WitnessDonald Labonte
                                                                                  

 

 

 

 

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