Document:

exv10w2

 

Exhibit 10.2

AMENDED AND RESTATED MORTGAGE NOTE

     WHEREAS, the undersigned, ELECTRIC CITY CORP., a Delaware corporation, and
GREAT LAKES CONTROLLED ENERGY CORPORATION, a Delaware corporation
(collectively, “Borrowers” individually, a “Borrower”), have executed and
delivered to the order AMERICAN CHARTERED BANK, an Illinois state banking
association (“Bank”), a Mortgage Note dated September 30, 2003, in the original
principal amount of $640,000.00 with a principal balance of $598,000 now
outstanding (the “Prior Note”); and

     WHEREAS, Borrowers have requested and Bank has agreed to amend and restate
the Prior Note in its entirety to extend the Maturity Date and to remove
financial covenants on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Prior Note is hereby amended and restated in its entirety as
follows:

MORTGAGE NOTE

			
	$598,000.00
	 	December 31, 2004

Chicago, Illinois

     FOR VALUE RECEIVED, the undersigned, ELECTRIC CITY CORP., a Delaware
corporation, and GREAT LAKES CONTROLLED ENERGY CORPORATION, a Delaware
corporation (collectively, “Borrowers”) hereby promise to pay to the order of
AMERICAN CHARTERED BANK, an Illinois state banking association (“Bank”), in
immediately available funds, on February 1, 2006, or such earlier maturity date
as provided for herein, the principal sum of $598,000.00 (the “Loan”), as
follows:

ARTICLE I

     1.1 Repayment of Principal and Interest. Borrowers shall jointly and
severally make equal consecutive monthly principal installments of $3,000.00,
plus monthly payments of all accrued and unpaid interest. The monthly
principal and interest payments shall be due on the first day of each month
(commencing January 1, 2005) until February 1, 2006 (“Maturity Date”). A
final payment of all outstanding principal and all accrued and unpaid interest
shall be due and payable on February 1, 2006, unless such maturity date is
accelerated in accordance with the terms hereof.

     1.2 Interest Rate. The outstanding principal balance of this Note shall
bear interest a per annum rate equal to the “Prime Rate” (as hereinafter
defined) plus .50% (“Mortgage Interest Rate”). Interest on the outstanding
principal amount hereunder shall be computed on the basis of the actual number
of days elapsed on the basis of a year of 360 days at the Mortgage Interest
Rate from time to time in effect.

 

 

     As used herein, the term “Prime Rate” shall mean the rate which, at any
time and from time to time, shall be the rate of interest then most recently
announced by the Bank as its prime rate, which is not intended to be the Bank’s
lowest or most favorable rate of interest at any one time. The effective date
of any change in the Prime Rate shall be the date the rate is changed by the
Bank. The Bank shall not be obligated to give notice of any change in the
Prime Rate. Interest on the unpaid principal balance of the Loan shall be
payable, in arrears, beginning on January 1, 2005, and continuing of the last
day of each month thereafter, and on the Maturity Date.

     1.3 Payment and Prepayment. Bank is authorized to debit Borrowers’
accounts with Bank for each monthly payment of interest and principal due
hereunder. Borrowers shall be permitted to make prepayment of the indebtedness
evidenced by this Note, in whole or in part, from time to time as the Borrowers
may desire without penalty or premium.

ARTICLE II

     2.1 Security for Payment; Loan Documents. This Note is secured by a
certain Mortgage, Assignment of Leases and Rents and Security Agreement
securing the property commonly known as 1280 Landmeier Road, Elk Grove Village,
Illinois (the “Mortgage”) and the other “Loan Documents” referred to therein.
Reference is hereby made to the Mortgage, Security Agreements and the other
Loan Documents, which are incorporated herein by this reference as fully and
with the same effect as if set forth herein at length.

     2.2 Event of Default. Borrowers, without notice or demand of any kind,
shall be in default hereunder if:

          (a) any amount payable on this Note or on any other liability or
obligation of the Borrowers to the Bank, howsoever created, arising or
evidenced, and howsoever owned, held or acquired, whether now or hereafter
existing, whether now due or to become due, whether direct or indirect, or
absolute or contingent, and whether several, joint or joint and several,
including, without limitation any guaranty executed by the Borrowers for the
benefit of the Bank (all of which liabilities and obligations, including this
Note, are hereinafter called the “Obligations”) is not paid when due; or

          (b) Borrowers shall otherwise fail to perform any of the promises to be
performed by the Borrowers hereunder or under any other security agreement or
other agreement with the Bank, including, but not limited to the obligations
set forth in Article IV herein and such failure shall continue beyond any grace
period applicable thereto; or

          (c) the Borrowers or any other party liable with respect to the
Obligations, or any guarantor or accommodation endorser or third party pledgor,
shall make any assignment for the benefit of creditors, or there shall be
commenced any bankruptcy, receivership, insolvency, reorganization, dissolution
or liquidation proceedings by or against, or the entry of any judgment, levy,
attachment, garnishment or other process, or the filing of any lien against the
Borrowers or any guarantor, or any other party liable with respect to the
Obligations, or accommodation endorser or third party pledgor for any of the
Obligations, or against any of the Collateral (as defined below) or any of the
collateral under a separate security agreement signed by any one of them; or

- 2 -

 

          (d) there be any deterioration or impairment of any of the Collateral
hereunder or any of the collateral under any security agreement executed by the
Borrowers or any other party liable with respect to the Obligations, or any
guarantor or accommodation endorser or third party pledgor for any of the
Obligations, or any decline or depreciation in the value or market price
thereof (whether actual or reasonably anticipated), which causes said
Collateral or collateral in the sole opinion of the Bank acting in good faith,
to become unsatisfactory as to value or character, or which causes the Bank to
reasonably believe that it is insecure and that the likelihood for repayment of
the Obligations is or will soon be impaired, time being of the essence; or

          (e) if this Note is secured by an additional or separate security
agreement, then, the occurrence of any default thereunder; or

          (f) there is a discontinuance by any guarantor of any guaranty of
Obligations hereunder; or the determination by the Bank that a material adverse
change has occurred in the financial condition of the Borrowers from the
condition set forth in the most recent financial statement of the Borrowers
furnished to the Bank, or from the financial condition of the Borrowers most
recently disclosed to the Bank in any manner; or

          (g) any oral or written warranty, representation, certificate or
statement of the Borrowers to the Bank is untrue in any material respect; or

          (h) the failure to do any act necessary to preserve and maintain the
value and collectability of the Collateral; or

          (i) failure of the Borrowers after request by the Bank to furnish
financial information or to permit inspection by the Bank of the Borrowers’
books and records; or

          (j) any guarantor of this Note or of any of the other Obligations shall
contest the validity of such guaranty.

     2.3 Acceleration of Maturity. At any time after the occurrence of any
Event of Default which is continuing, Bank has the option, without demand or
notice, to declare the unpaid principal of this Note, together with all accrued
interest and other sums evidenced by or secured by the Mortgage or any other of
the Loan Documents, at once due and payable to the extent permitted by law; to
foreclose the Mortgage and the liens or security interests securing the payment
of this Note; and to exercise any and all other rights and remedies available
at law or in equity or under the Mortgage or any of the other Loan Documents.

     2.4 Remedies. No delay on the part of the Bank in exercising any right
under this Note, the Loan Documents or other undertaking securing or affecting
this Note, shall operate as a waiver of such right or any other right under
this Note, nor shall any omission in exercising any right on the part of the
Bank under this Note operate as a waiver of any other right.

     2.5 Default Interest Rate. While any Event of Default exists, interest on
the unpaid principal balance of the Loan from time to time will accrue at an
annual rate (“Default Rate”) equal to the Mortgage Interest Rate plus 3.0%, and
Borrowers shall pay such interest upon demand, or if no

- 3 -

 

such demand is made, then at the times installments of interest and/or
principal are due as provided herein.

     2.6 Costs. Borrowers shall pay all costs and expenses of Bank, including
reasonable attorneys’ fees and costs incurred by the Bank in enforcing this
Note.

ARTICLE III

     3.1 Notices. Any notice, demand, request or other communication which any
party may be required or may desire to give will be deemed to have been given
if made in accordance with the terms of the Mortgage.

     3.2 Governing Law. The validity, enforcement and interpretation of this
Note shall for all purposes be governed by and construed in accordance with the
laws of the State of Illinois, without regard to its conflicts of law
principles, and applicable United States federal law, and is intended to be
performed in accordance with, and only to the extent permitted by, such laws.
Borrowers hereby irrevocably submit generally and unconditionally for Borrowers
and in respect of Borrowers’ property to the jurisdiction of any local court,
or any United States federal court, sitting in Cook County, State of Illinois,
over any suit, action or proceeding arising out of or relating to this Note or
the Loan. Borrowers hereby irrevocably waive, to the fullest extent permitted
by law, any objection that Borrowers may now or hereafter have to the laying of
venue in any such court and any claim that any such court is an inconvenient
forum. Nothing herein shall affect the right of Bank to serve process in any
manner permitted by law or limit the right of Bank to bring proceedings against
Borrowers in any other court or jurisdiction.

     3.3 Waivers. Borrowers and each Obligor waive any and all presentment,
demand, notice of dishonor, protest, and all other notices and demands in
connection with the enforcement of the Bank’s rights hereunder. No default
shall be waived by the Bank except in writing. No delay on the part of the
Bank in the exercise of any right or remedy shall operate as a waiver thereof,
and no single or partial exercise by the Bank of any right of remedy shall
operate as a waiver thereof, and no single or partial exercise by the Bank of
any right or remedy shall preclude other or further exercise thereof, or the
exercise of any other right or remedy. This Note: (i) is valid, binding and
enforceable in accordance with its provisions, and no conditions exist to the
legal effectiveness of this Note; (ii) contains the entire agreement between
the Borrower and the Bank; (iii) taken with the Mortgage and the other Loan
Documents, is the final expression of their intentions; and (iv) supersedes all
negotiations, representations, warranties, commitments, offers, contracts (of
any kind or nature, whether oral or written) prior to or contemporaneous with
the execution hereof. Other than as set forth in the Mortgage and the other
Loan Documents, no prior or contemporaneous representations, warranties,
understanding, offers or agreements of any kind or nature, whether oral or
written, have been made by the Bank or relied upon by the Borrowers in
connection with the execution hereof. No modification, discharge, termination
or waiver of any of the provisions hereof shall be binding upon the Bank,
except as expressly set forth in a writing duly signed and delivered on behalf
of the Bank.

- 4 -

 

     3.4 Construction. The validity and construction of this Note and all
matters pertaining thereto are to be determined and construed according to the
laws of the State of Illinois, without regard to its conflicts of law
principles. The captions and headings of this Note are for convenience only
shall be disregarded in construing it.

     3.5 Business Loan. Borrowers hereby represents that: (a) the proceeds of
the Loan will be used for the purposes specified in 815 ILCS 205/4(1)(a) or (c)
of the Illinois Compiled Statutes, as amended; (b) the Loan constitutes a
“business loan” within the purview of those Sections; and (c) the proceeds of
the Loan will not be used for the purchase of registered equity securities
within the purview of Regulation “U” issued by the Board of Governors of the
Federal Reserve System.

     3.6 Severability. In the event any provision (or any part of any
provision) contained in this Note shall for any reason be finally held by a
court of competent jurisdiction to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision (or remaining part of the affected provision) of this Note; but
this Note shall be construed as if such invalid, illegal or unenforceable
provision (or part thereof) had never been contained herein, but only to the
extent it is invalid, illegal or unenforceable.

     3.7 Usury. Notwithstanding any provisions of this Note or any instrument
securing payment of the indebtedness evidenced by this Note to the contrary, it
is the intent of Bank that Bank shall never be entitled to receive, collect or
apply, as interest on principal of the indebtedness, any amount in excess of
the maximum rate of interest permitted to be charged by applicable law; and if
under any circumstance whatsoever, fulfillment of any provision of this Note,
at the time performance of such provision shall be due, shall involve
transcending the limit of validity prescribed by applicable law, then the
obligation to be fulfilled shall be reduced to the limit of such validity; and
in the event Bank ever receives, collects or applies as interest any such
excess, such amount which would be excess interest will be deemed a permitted
partial prepayment of principal without penalty or premium and treated as such;
and if the principal amount secured hereby is paid in full, any remaining
excess funds shall forthwith be paid to Borrowers. In determining whether or
not interest of any kind payable hereunder, under any specific contingency,
exceeds the highest lawful rate, Borrowers and Bank will, to the maximum extent
permitted under applicable law, (1) characterize any non-principal payment as
an expense, fee or premium rather than as interest and (2) amortize, prorate
and allocate such payment so that the interest on account of such indebtedness
does not exceed the maximum amount permitted by applicable law. Bank shall not
be subject to any penalties provided by any laws for contracting for, charging
or receiving interest in excess of the maximum lawful rate.

     3.8 Successors and Permitted Assigns. This Note shall inure to and bind
(i) Borrowers and Borrowers’ successors and permitted assigns, and (ii) Bank
and Bank’s successors and assigns. Without limitation of the foregoing,
Borrowers expressly acknowledge that Bank may assign and transfer all rights
and interests of the Bank hereunder to an assignee to be identified by Bank,
and acknowledge and agree that, upon execution and delivery of the assignment
in relation thereto, such assignee shall hold all of the rights and interests
of Bank hereunder.

     3.9 Time of Essence. Time shall be of the essence as to each and every
provision of this Note.

- 5 -

 

     3.10 Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW,
BORROWERS AND BANK HEREBY EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY
ACTION, CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING ARISING UNDER OR WITH
RESPECT TO THIS NOTE, OR IN ANY WAY CONNECTED WITH, RELATED TO OR INCIDENTAL TO
THE DEALING OF BORROWERS AND BANK WITH RESPECT TO THIS NOTE, OR THE
TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE. TO THE MAXIMUM
EXTENT PERMITTED BY LAW, BORROWERS AND BANK HEREBY AGREE THAT ANY SUCH ACTION,
CAUSE OF ACTION, CLAIM, DEMAND OR PROCEEDING SHALL BE DECIDED BY A COURT TRIAL
WITHOUT A JURY AND THAT BANK OR BORROWERS MAY FILE AN EXECUTED COPY OF THIS
NOTE WITH ANY COURT OR OTHER TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF
EACH OF BORROWERS AND BANK TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. IT IS
AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF
ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTION OR PROCEEDINGS, INCLUDING CLAIMS
AGAINST PARTIES WHO ARE NOT PARTIES TO THIS NOTE. THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY BORROWERS, AND BORROWERS HEREBY REPRESENTS
THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO
INDUCE THIS WAIVER OF TRIAL BY JURY, THAT THEY HAVE BEEN REPRESENTED IN THE
SIGNING OF THIS NOTE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL
COUNSEL SELECTED BY BORROWERS OF THEIR OWN FREE WILL, AND THAT THEY HAVE HAD
THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

ARTICLE IV

     4.1 Security. As security for the payment of this Note and any and all
other liabilities and Obligations of the Borrowers to the Bank, the Borrowers
do hereby pledge, assign, transfer and deliver to the Bank and does hereby
grant to the Bank a continuing security interest in and to any property of the
Borrowers of any kind or description, tangible or intangible, now or hereafter
assigned, transferred or delivered to or left in or coming into the possession,
control or custody of, or in transit to, the Bank or any agent or bailee for
the Bank, by or for the account of the Borrowers, whether expressly as
collateral security or for any other purpose, including, without limitation,
all property left with the Bank whether held in a general or special account or
for safekeeping or otherwise, all dividends, interest, or other rights in
connection with any securities included in said property left with the Bank
whether held in a general or special account or for safekeeping or otherwise,
all dividends, interest, or other rights in connection with any securities
included in said property coming into the possession of the Bank in any way and
any property covered by a security agreement signed or assigned by the
Borrowers in favor of the Bank, including, but not limited to the cash,
accounts, inventory, negotiable instruments, documents of title, chattel paper,
certificates of deposit, securities, deposit accounts, other cash equivalents
and all other property of whatever description of the Borrowers, or any one of
them, whether now existing or hereafter acquired, and now or hereafter in the
possession or control of or assigned to the Bank, and the products and proceeds
therefrom, including the proceeds of insurance thereon; and the additional
property of the Borrowers, whether no existing or hereafter arising or
acquired, together with any substitutions therefore, accessions thereto, or
products and proceeds therefrom, including the proceeds of

- 6 -

 

insurance thereon, but excluding in all events any personal property of
Electric City Corp. and proceeds as to which a security interest has been
granted by Electric City Corp. in favor of Laurus Master Fund, Ltd. (“Laurus
Collateral”).

     All of the aforesaid property and the products and proceeds therefrom,
including the proceeds of insurance thereon, other than the Laurus Collateral,
are herein collectively called the “Collateral.” The terms used herein to
identify the Collateral shall have the respective meanings assigned to such
terms in the Illinois Uniform Commercial Code, as in effect from time to time.
The cancellation or surrender of this Note, upon payment or otherwise, shall
not affect the right of the Bank to retain the Collateral for any other of the
Obligations.

ARTICLE V

Each Borrower shall maintain all of its operating, cash management, depository,
payment, lock box, remittance and investment accounts with Bank and shall
collectively maintain balances in such accounts as are necessary to compensate
Bank for any service charges on such accounts. Each Borrower shall deposit
into such accounts all amounts necessary to pay any service charges payable to
Bank in the event that sufficient compensating balances are not maintained for
any period immediately following notice from Bank of the amount of such service
charges.

- 7 -

 

     IN WITNESS WHEREOF, Borrowers have caused this Note to be executed and
delivered as of the date first stated above.

	 	 	 	 	 
	 	 	ELECTRIC CITY CORP., a Delaware
corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ Jeffrey Mistarz
	

	 	 	 	

	

	 	Its:
	 	Chief Financial Officer & Treasurer
	 
	 	 	 	 
	 	 	GREAT LAKES CONTROLLED
	 	 	ENERGY CORPORATION, a Delaware

corporation
	 
	 	 	 	 
	

	 	By:
	 	/s/ Jeffrey Mistarz
	

	 	 	 	

	

	 	Its:
	 	Treasurer

- 8 -exv10w1

 

Exhibit 10.1

COMMERCE EXECUTIVE RETIREMENT PLAN

(Amended and Restated Effective January 1, 2005)

	I.	 	Definitions
	 
	 	 	Except as specifically provided herein, all terms used in this Plan shall have the
definitions assigned to them under the Commerce Retirement Plan.
	 
	 	 	“Commerce PIP” shall mean the Commerce Bancshares, Inc. Participating Investment
Plan as in effect on January 1, 2005, and as amended from time to time.
	 
	 	 	“Commerce Retirement Plan” shall mean the Commerce Bancshares, Inc. Restated
Retirement Plan as in effect on January 1, 2005, and as amended from time to time.
	 
	 	 	“Company Contribution Credits” shall mean the amount credited to a Participant’s
Plan Account pursuant to Section B.1 of Part IV of this Plan.
	 
	 	 	“Determination Date” shall mean the last day of each Plan Year, and such other more
frequent dates as the Retirement Committee in its sole discretion shall specify, as of which
a Participant’s Plan Account is determined in accordance with Part IV hereof.
	 
	 	 	“Excess Earnings” shall mean, for a Plan Year, the difference between Plan Earnings
for such Plan Year and the dollar limitation prescribed by Code section 401(a)(17) for such
Plan Year.
	 
	 	 	“OBRA Compensation Limit” shall mean the annual limitation on compensation under
Code section 401(a)(17), effective for Plan Years beginning after 1993, as adjusted for
increases in the cost of living.
	 
	 	 	“Participant” shall mean an Employee who is a participant in the Commerce Retirement
Plan and/or the Commerce PIP, who is an executive of an Employer and who is designated as a
Participant in this Plan by the Chief Executive Officer of the Company. The Chief Executive
Officer may be designated as a Participant by the Board of Directors or the Compensation
Committee of the Board of Directors. Participants are listed on Appendix A.
	 
	 	 	“Plan” shall mean the restated “Commerce Executive Retirement Plan” set out herein,
effective January 1, 2005, and as amended from time to time.
	 
	 	 	“Plan Account” means the bookkeeping account maintained by the Company to reflect
each Participant’s post-2004 benefit under this Plan.
	 
	 	 	“Plan Earnings” shall mean “Earnings” as defined in Section 1.1(k) of the Commerce
Retirement Plan, but determined without regard to the limitation on compensation pursuant to
Code section 401(a)(17), and determined without regard to any election by the Participant to
defer all or part of his bonus or other compensation payable in a Plan Year under a
nonqualified deferred compensation plan maintained by an Employer.

 

 

“TRA Compensation Limit” shall mean the annual limitation on compensation under Code
section 401(a)(17), adjusted for increases in the cost of living, as if the Omnibus Budget
Reconciliation Act of 1993 had not been enacted. The Retirement Committee shall determine
the adjustments for increases in the cost of living for years beginning after 1995 in
accordance with the methods used by the Secretary of the Treasury for determining such
increases prior to 1994; provided that the adjustment for years beginning after 1995 shall
be determined by the Retirement Committee using the Consumer Price Index for the 12-month
period ending on October 31 of the preceding Plan Year.

“Total Earnings” shall mean “Earnings” as defined in Section 1.1(k) of the Commerce
Retirement Plan, but determined by applying the TRA Compensation Limit rather than the OBRA
Compensation Limit for Plan Years beginning after 1993, and determined without regard to any
election by the Participant to defer all or part of his bonus or other compensation payable
in a Plan Year beginning after 1994 under a nonqualified deferred compensation plan
maintained by an Employer.

	II.	 	Plan Benefits

	 	A.	 	Total Benefits: A Participant’s benefit under the Plan shall be equal
to the sum his “Pre-2005 Benefit” and “Post-2004 Benefit” determined in accordance with
Parts III and IV hereof, and shall be paid in the forms and at the times set forth
under said Parts.
	 
	 	B.	 	Vesting; Forfeiture: Except as otherwise provided herein, benefits
under the Plan shall be 100% vested and nonforfeitable upon Participant’s completion of
five Years of Service.
	 
	 	 	 	Notwithstanding the foregoing or any provision of this Plan to the contrary, a
Participant, his surviving spouse, and his beneficiaries shall forfeit all rights to
any benefits not yet paid under this Plan in the event that the Company’s Board of
Directors or the Compensation Committee of the Board of Directors, in their
discretion, determine that:

	 	1.	 	The Participant, without the prior written
consent of the Company, is in violation of the terms of any non-compete
agreement in effect between the Participant and the Employer; or
	 
	 	2.	 	The Participant is discharged from an Employer
for dishonesty or for violating the Company’s written code of ethics,
if any; or
	 
	 	3.	 	The Participant is found, by his own written
admission or by a final court determination, to have committed an
illegal act classified as a felony under, applicable law. Payment of
benefits otherwise due with respect to the Participant under this Plan
shall be suspended during any period while felony charges against the
Participant are pending.

2

 

	 	C.	 	Termination of Participation: The Chief Executive Officer of the
Company may terminate a Participant’s eligibility to participate in this Plan at any
time. The Participant shall be notified in writing of such termination of eligibility
and his name shall be removed from Appendix A. A Participant whose eligibility is
terminated by the Chief Executive Officer shall accrue no additional benefits under
this Plan after the date his eligibility ends, but, except as otherwise provided in
Section B of this Part II, such Participant shall retain his rights to all benefits
earned under this Plan as of the date his eligibility ends.

	III.	 	Pre-2005 Benefits

	 	A.	 	Retirement Benefits: If the Participant terminates employment with an
Employer on or after his completion of five Years of Service, he shall be entitled to a
monthly retirement benefit in the form of an annuity payable for the Participant’s
lifetime, commencing as of his actual retirement date or his Normal Retirement Date,
whichever is later. The amount of the benefit (the “Pre-2005 Benefit”) shall be equal
to 1 minus 2, where:

	 	1.	 	Is the monthly benefit that would be payable to the Participant
in the form of a single life annuity commencing at the later of his actual
retirement date or his Normal Retirement Date under Section 4.0 of the Commerce
Retirement Plan, but calculated as follows:

	 	(a)	 	using the Participant’s Total Earnings, as
defined in Part I above, instead of “Earnings” as defined in Section
1.1(k) of the Commerce Retirement Plan; and
	 
	 	(b)	 	without regard to the last sentence of Section
4.0(a)(i) of the Commerce Retirement Plan or the last sentence of
Section 4.0(a)(ii)(A) of the Commerce Retirement Plan.

	 	2.	 	Is the monthly benefit actually payable to the Participant in
the form of a single life annuity commencing at the later of his actual
retirement date or Normal Retirement Date under the Commerce Retirement Plan.

If payment of the benefit determined under this Section is made in a form of annuity other
than an annuity for the Participant’s lifetime, the monthly benefit payable under this Plan
shall be determined using the Actuarial Equivalent factors specified in Section 1.1(b) of
the Commerce Retirement Plan. If payment begins prior to the Participant’s Normal
Retirement Date, the benefit shall be reduced for early payment as provided under Section
4.3, 4.4, or 4.8(a)(ii), as applicable, of the Commerce Retirement Plan.

	 	B.	 	Time and Form of Payment Retirement Benefits:

	 	1.	 	Payment under this Plan shall begin on the first anniversary of
the date payment begins under the Commerce Retirement Plan.

3

 

	 	2.	 	Payment under this Plan shall be made in the same form of
payment the Participant is receiving under the Commerce Retirement Plan.

	 	(a)	 	If payment under this Plan is to be made in the
form of a monthly benefit, the benefit under this Plan shall be
calculated as if payment had begun at the time payment began under the
Commerce Retirement Plan. On the date payment begins under this Plan,
the Participant shall receive a single sum cash distribution equal to
the sum of the twelve monthly payments that would have been paid under
this Plan had payment begun at the same time payment began under the
Commerce Retirement Plan, plus the monthly payment due under this Plan
on the date payment begins. Thereafter, payments under this Plan shall
be made monthly.
	 
	 	(b)	 	If payment under this Plan is to be made under
the single sum cash distribution option described in Section
4.5(a)(ii)(C) of the Commerce Retirement Plan, the retirement benefit
under the Plan shall be the Actuarial Value of the retirement benefit
under this Plan determined as of the date payment is made under this
Plan.

	 	C.	 	Pre-retirement Death Benefits: If a pre-retirement death benefit is
payable under Section 4.7 of the Commerce Retirement Plan with respect to the
Participant, a pre-retirement death benefit shall also be payable under this Plan. The
pre-retirement death benefit payable under this Plan shall be equal to 1 minus 2,
where:

	 	1.	 	Is the monthly pre-retirement death benefit that would be
payable to the Participant’s Beneficiary under Section 4.7 of the Commerce
Retirement Plan if the Participant’s monthly retirement benefit had been
calculated under Section A.1 of Part II of this Plan as of the date of the
Participant’s death or, if earlier, his termination of employment; and
	 
	 	2.	 	Is the monthly pre-retirement death benefit actually payable to
the Participant’s Beneficiary under Section 4.7 of the Commerce Retirement
Plan.

If payment of the pre-retirement death benefit determined under this Section prior to the
Participant’s Normal Retirement Date, the benefit shall be reduced for early payment as
provided under Section 4.3, 4.4, or 4.8(a)(iv), as applicable, of the Commerce Retirement
Plan.

If the Participant dies before payment of his retirement benefit begins under this Plan and
if no Beneficiary survives him, the pre-retirement death benefit, if any, payable under this
Section shall be paid to the Participant’s estate in a single sum cash distribution.
Payment shall be made within a reasonable period of time following the Participant’s death.
The amount of such distribution shall be equal to 45% of the Actuarial Value of the monthly

4

 

benefit payable at the Participant’s Normal Retirement Date under this Plan as determined
under Section A of Part II.

If the Participant’s Beneficiary survives him but dies before the date payment of the
pre-retirement death benefit begins, no pre-retirement death benefit will be payable under
this Plan.

	 	D.	 	Time and Form of Payment of Pre-Retirement Death Benefits:

	 	1.	 	Payment under this Plan shall begin on the first anniversary of
the date payment begins under the Commerce Retirement Plan.
	 
	 	2.	 	Payment under this Plan shall be made in the same form of
payment the Beneficiary is receiving under the Commerce Retirement Plan.

	 	(a)	 	If payment under this Plan is to be made in the
form of a monthly benefit, the benefit under this Plan shall be
calculated as if payment had begun at the time payment began under the
Commerce Retirement Plan. On the date payment begins under this Plan,
the Beneficiary shall receive a single sum cash distribution equal to
the sum of the twelve monthly payments that would have been paid under
this Plan had payment begun at the same time payment began under the
Commerce Retirement Plan, plus the monthly payment due under this Plan
on the date payment begins. Thereafter, payments shall be made
monthly.
	 
	 	(b)	 	If payment under this Plan is to be made under
the single sum cash distribution option described in Section 4.8(a)(iv)
of the Commerce Retirement Plan, the pre-retirement death benefit under
this Plan shall be the Actuarial Value of the pre-retirement death
benefit under this Plan determined as of the date payment is made under
this Plan.

	IV.	 	Post-2004 Benefits

	 	A.	 	Retirement Benefits: If the Participant terminates employment with an
Employer on or after his completion of five Years of Service, he shall be entitled to a
retirement benefit equal to the amount credited to his Plan Account as of the most
recent Determination Date preceding payment of his benefit (the “Post-2004 Benefit”).
	 
	 	B.	 	Credits to Plan Accounts: As of each Determination Date, the amount
credited to a Participant’s Plan Account shall be the amount credited to his Account as
of the immediately preceding Determination Date, plus any Company Contribution Credits
for the Participant for the period beginning on the day after the immediately preceding
Determination Date and ending on the current Determination Date (the “Determination
Period”), minus any amount that is paid to or on behalf of a Participant during the
Determination Period, plus or minus

5

 

any hypothetical investment gains or losses attributable to such Plan Account for
the Determination Period.

	 	1.	 	Company Contribution Credits: As of the last day of
each Plan Year beginning on and after January 1, 2005, a Participant’s Plan
Account shall be credited with an amount equal to (A x B) + C, where:

A equals the Participant’s Excess Earnings for such Plan Year;

B equals 7%; and

C equals the amount of matching contributions, if any, that were not
credited for the Plan Year to the Participant’s account under the
Commerce PIP due to the limitations on such contributions imposed by
the nondiscrimination test set forth in Code section 401(m).

	 	2.	 	Hypothetical Earnings Credits: As of each
Determination Date, the Retirement Committee shall credit or debit a
Participant’s Plan Account to reflect the investment performance of the
“measurement funds” used to determine the balance of such Account.
	 
	 	 	 	The Retirement Committee, in its sole discretion, shall designate the
measurement funds to be used for purposes of crediting hypothetical earnings
or losses on the amounts credited to each Participant’s Plan Account. The
Retirement Committee may from time to time discontinue, substitute or add a
measurement fund, provided that any such action to discontinue or substitute
any measurement fund may only take effect following reasonable advance
notice of such change to the Participants.
	 
	 	 	 	Each Participant shall elect, from among the measurement fund(s) offered
under the Plan from time to time and in the manner and at the time(s)
designated by and acceptable to the Retirement Committee, the measurement
fund(s) to be used for purposes of determining the hypothetical investment
returns to be credited or debited to his Account. To the extent and in the
manner permitted by the Retirement Committee, a Participant may modify his
measurement fund elections with respect to future contribution credits
and/or his existing Account balance. Such ability of Participants to modify
measurement fund elections may be revoked or amended by the Retirement
Committee at any time. Any election that is made in accordance with the
foregoing shall be effective as of the Determination Date coinciding with or
next following the acceptance of such election by the Retirement Committee
or as of such other date approved by the Retirement Committee. If the
Company provides a Participant with the authority to change the investment
of the Company’s assets, such authority may be revoked at any time.

6

 

The performance of each measurement fund (either positive or negative) will
be determined by the Retirement Committee, in its sole discretion, based on
the investment performance of the selected measurement funds themselves
(except as otherwise provided in this Section). A Participant’s Plan
Account shall be credited or debited, as the case may be, as of each
Determination Date based on the investment performance of each measurement
fund, as determined by the Retirement Committee in its sole discretion, as
though an amount equal to such Participant’s Plan Account had actually been
invested in the applicable measurement fund(s).

Notwithstanding any other provision of this Plan or any notice, statement,
summary or other communication provided to a Participant that may be
interpreted to the contrary, the measurement funds are to be used for
measurement purposes only, and a Participant’s election of any such
measurement fund, the determination of credits and debits to his Account
based on the measurement funds, the Company’s actual ownership of the
measurement funds, and any authority granted by the Company to a Participant
to change the investment of the Company’s assets, if any, may not be
considered or construed in any manner as an actual investment of the Plan
Account in any such measurement fund or to constitute a funding of this
Plan. The Company is not obligated to actually invest in, or to continue an
investment in, any measurement fund or other asset.

	 	C.	 	Time and Form of Payment of Retirement Benefits: The amount credited
to a Participant’s Plan Account shall be paid in a single lump sum at the time
prescribed in a policy adopted by the Retirement Committee but in no event later than
the first anniversary of the date payments begin under the Commerce Retirement Plan.
	 
	 	D.	 	Time and Form of Payment of Pre-Retirement Death Benefits: If a
Participant dies prior to the full payment of his Plan Account, the balance of such
Account shall be paid to his Beneficiary in a single lump sum at the time prescribed in
a policy adopted by the Retirement Committee but in no event later than the first
anniversary of the date payments begin under the Commerce Retirement Plan.

	V.	 	General Provisions

	 	A.	 	Unsecured Right: The right of the Participant, his spouse, his
Beneficiary, his estate, or any other claimant to receive any amount under this Plan
shall be an unsecured claim against the general assets of the Company. No Participant,
spouse, Beneficiary, estate, or other claimant shall have any rights in or against any
specific assets of the Company. The Participant’s benefits under this Plan may not in
any way be encumbered or assigned by the Participant or any other person.
	 
	 	B.	 	Amendment; Termination: This Plan may be amended or terminated at any
time by resolution of the Board of Directors of the Company. However, no

7

 

amendment shall divest the Participant of any benefit which has accrued under this
Plan at the time of the amendment, or of any rights to which the Participant would
have been entitled had the Plan terminated on the date of the amendment. However,
no further benefits shall accrue hereunder after the Plan is terminated.

	 	C.	 	Administration: The Retirement Committee appointed under Section 7.1
of the Commerce Retirement Plan shall administer this Plan. The Retirement Committee
shall have the same powers, rights, discretion and authority with respect to this Plan
granted to it with respect to the Commerce Retirement Plan under Article VII thereof.
In addition, the Retirement Committee shall have the sole and absolute right, power and
discretion to construe and interpret the provisions of this Plan, to decide all
questions of eligibility to participate in the Plan, to determine the amount, manner
and time of payment of any benefits to any Participant or Beneficiary, to determine the
right of any person to a benefit, and to resolve all questions arising in the
administration, interpretation and application of the Plan, including resolving any
ambiguities from such administration, interpretation and application of the plan.
	 
	 	D.	 	Claims: The claims procedures of Section 10.6 of the Commerce
Retirement Plan are incorporated herein by this reference.
	 
	 	E.	 	Governing Law: Any questions arising under the Plan shall be
determined under the laws of the state of Missouri except to the extent preempted by
applicable federal law.
	 
	 	F.	 	No Right to Retention: Nothing in this Plan shall give the Participant
right to be retained in the employment of an Employer or affect the right of an
Employer to dismiss the Participant.
	 
	 	G.	 	Acceleration of Payment: Notwithstanding any provision in this Plan to
the contrary, the Company, in its sole discretion, shall have the right to accelerate
payment of all or any portion of the benefit payable to or on behalf of a Participant
under this Plan without a prepayment premium or penalty.
	 
	 	H.	 	Tax Withholding: The Company shall withhold the amount of any federal,
state or local income tax or other tax required to be withheld by the Company under
applicable law with respect to any amount payable under this Plan.

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]