Document:

EX-10(R) Restricted Stock Unit Agreement

 

Exhibit 10(r)

TRW Restricted Stock Unit Agreement

TERMS AND CONDITIONS

 

1. General

The Restricted Stock Units issued to you pursuant to this Agreement shall be
subject to the terms and conditions described herein. The Restricted Stock
Units are issued pursuant to the 2000 TRW Long-Term Incentive Plan.

2. Vesting

The Restricted Stock Units will vest in two installments as follows: (i)      
percent of the Restricted Stock Units will vest on the      anniversary of
the date of grant and (ii) the remaining      percent of the Restricted Stock
Units will vest when you reach age      ; provided that, in each case, you have
been continuously employed in active status, providing services to TRW Inc.
(“TRW”), from the date of grant through and including the applicable vesting
date. On the applicable vesting date, the risk of forfeiture of the vested
Restricted Stock Units shall lapse.

Notwithstanding the foregoing, all these Restricted Stock Units will vest
immediately in the event of the termination of your employment in the
following circumstances:

(a)  your death; or

(b)  your disability for a period of more than twelve months (as defined in
the TRW U.S. Long-Term Disability Plan).

These Restricted Stock Units will also vest
immediately upon a change of control of TRW Inc. For purposes of this Agreement, a change in control is defined in resolutions
adopted by the Compensation Committee of the Directors of TRW on February 28,
2002, which, in summary, provide that a change in control is a change occurring
(a) by virtue of certain mergers or consolidations or sale or transfer of
assets by TRW to another corporation or (b) by virtue of the Directors of the
Corporation as of February 28, 2002 and their approved successors (other than a
successor whose initial assumption of office is in connection with an actual or
threatened election contest) ceasing to constitute a majority of the Directors
of TRW or (c) through the acquisition of shares representing 20% or more of the
voting power of TRW or (d) through any other change in control reported in any
filing with the Securities and Exchange Commission; provided, however, that no
change in control is deemed to have occurred by the acquisition of shares, or
any report of such acquisition, by TRW, a subsidiary of TRW or a TRW-sponsored
employee benefit plan. The language of the resolutions controls over this
summary language.

3. Termination of Employment

To the extent the Restricted Stock Units have not vested in accordance with
Section 2 above, the voluntary or involuntary termination of your employment
for any reason (except your death or disability as set forth in Section 2
above) will result in the forfeiture of the unvested Restricted Stock Units.
Upon notice of termination of your employment, all unvested Restricted Stock
Units issued pursuant to this Agreement will be automatically and immediately
forfeited.

Further, if the Directors of TRW find that you intentionally committed an act,
which act is inimical to the interests of TRW or a subsidiary, your unvested
Restricted Stock Units will be automatically forfeited as of the time you
committed such act, as determined by the Directors.

4. Dividends

From and after the date of issuance of the Restricted Stock Units until such
time as the Restricted Stock Units shall be forfeited or shall vest, each in
accordance with the terms of this Agreement, you will be entitled to rights to
dividends on shares of TRW Common Stock (if and as declared and paid). Such
dividends shall be deemed to be reinvested in additional Restricted Stock
Units on the date of payment of such dividend, and shall be accounted for
separately with respect to the two applicable vesting dates. The number of
Restricted Stock Units deemed issued to you on a dividend payment date shall
be calculated as the product of (i) the number of Restricted Stock Units then
issued to you pursuant to this Agreement (including Restricted Stock Units
previously deemed issued pursuant to this Section 4) multiplied by (ii) the
dividend amount per share, divided by the fair market value of a

 

 

share of TRW Common Stock on the date the dividend is paid. For purposes of
this Agreement, the “fair market value” is the average of the high and low
sales prices of a share of TRW Common Stock on the New York Stock Exchange on
the date the dividend is paid, as reported by the New York Stock Exchange (or
if there are no sales on such date, then the closing sale price on such
listing on the nearest date before the date the dividend is paid).

Other than such dividend equivalent and reinvestment rights, the Restricted
Stock Units issued to you pursuant to this Agreement shall not entitle you to
any rights of ownership of shares of TRW Common Stock, including but not
limited to voting rights. Restricted Stock Units deemed issued pursuant to
this Section 4 shall vest or be forfeited on the same date that the applicable
Restricted Stock Units initially issued pursuant to this Agreement vest or are
forfeited. TRW shall provide you with a statement of the number of Restricted
Stock Units issued to you pursuant to this Agreement after any dividend
payment on TRW Common Stock, which shall specify the number of Restricted
Stock Units applicable to each scheduled vesting date.

5. Deferral

You may elect to defer payment of all (but not a portion) of the shares of TRW
Common Stock deliverable pursuant to this Agreement on a particular vesting
date until your retirement or other termination of employment from TRW (as a
result of your death, disability for a period of more than twelve months, or
the voluntary or involuntary termination of your employment for any reason).
To elect such a deferral, the form attached hereto as Exhibit A or B, as
applicable (or such other form as may be approved by the Compensation
Committee of TRW Directors) executed by you (the “Deferral Election”) must be
received by the Secretary of TRW before the third anniversary of the date of
grant or before you reach age      , as the case may be. Any such election will
be irrevocable. In the event you make a Deferral Election, dividends paid on
TRW Common Stock on or after the date of such deferral[through the date of
settlement pursuant to Section 6 shall continue to be deemed to be reinvested
in additional Restricted Stock Units in accordance with the provisions of
Section 4. Such additional Restricted Stock Units will (with respect to
vested Restricted Stock Units) vest immediately upon the applicable dividend
payment date.

6. Settlement

At the time of settlement of vested Restricted Stock Units, you shall be
entitled to receive, provided you have satisfied all tax obligations with
respect to such shares as required by this Agreement, payment in the form of
shares of TRW Common Stock in an amount (rounded down to the nearest whole
share) equal to the number of Restricted Stock Units which have vested
(including pursuant to Section 4 of this Agreement). The shares shall be
registered in your name or your estate or administrator, as the Chairman of
the Compensation Committee of TRW Directors deems appropriate.

The timing of such settlement shall be as follows:

(a)  If you have not made a Deferral Election pursuant to Section 5,
settlement with respect to vested Restricted Stock Units shall occur upon
vesting pursuant to Section 2 of this Agreement, unless such vesting
occurs as a result of your death or your disability for a period of more
than twelve months.

(b)  If your employment terminates a result of your death or your disability
for a period of more than twelve months, settlement shall occur in full
on the last business day in the first full month of January following
such termination of employment, whether or not you have made the Deferral
Election.

(c)  Settlement shall occur in full immediately upon a change of control of
TRW (as such term is used in Section 2), whether or not you have made the
Deferral Election.

(d)  If you have made a Deferral Election, settlement shall occur with
respect to the Restricted Stock Units to which that Deferral Election
applies as follows: (i) In the case of your termination for other than
retirement, settlement shall occur in full on the last business day in
the first full month of January following your termination of employment.
(ii) If your termination is due to your retirement from TRW, the normal
form of payout will be in ten annual installments beginning the last
business day of the first full January following your retirement;
however, you may petition the Chairman of the Compensation Committee of
TRW Directors, at least three months prior to the date of your
retirement, to change such settlement into annual installments from two
to nine years or in a single sum. In the event of your death after
payouts in installments following your retirement have begun pursuant to
this clause (d)(ii), payouts will continue to be made in installments
until paid out completely, except in the event of a change of control of
TRW, in which case final settlement shall occur immediately upon a change
of control.

7. Taxes

TRW may withhold delivery of certificates for the shares of TRW Common Stock,
if any, to be issued pursuant to this Agreement until you make arrangements
satisfactory to TRW to pay any withholding, transfer or other taxes due as a
result of the issuance of such shares. You may elect to pay a portion

 

 

or all of the amount of required withholding taxes in cash or in shares of TRW
Common Stock, either by delivering to TRW previously held shares of TRW Common
Stock or by having shares of TRW Common Stock withheld from the shares issued
upon settlement.

8. Securities Laws

TRW may place appropriate federal and state securities law legends on the
certificates for the shares of TRW Common Stock issued upon settlement, give
stop-transfer instructions to its transfer agents or take any other action to
achieve compliance with applicable federal and state securities laws in
connection with the issuance of the shares of TRW Common Stock pursuant to
this Agreement or your resale of such shares.

9. Transferability

The Restricted Stock Units are not transferable other than by will or the laws
of descent and distribution.

10. Leaves of Absence

If you take a leave of absence for illness, governmental service or other
reasons, and such leave has been specifically approved by the Chairman of the
Compensation Committee of TRW Directors for purposes of this Agreement, then
such leave will not be treated as an interruption of your employment.

11. Adjustments

The Compensation Committee of TRW may make such adjustments in the number or
kind of shares of TRW Common Stock or other securities deemed issued for
dividend reinvestment purposes or deliverable upon settlement as it in its
sole discretion may determine are equitably required to prevent dilution or
enlargement of your rights that would otherwise result from any stock
dividend, stock split, combination of shares, recapitalization or other change
in the capital structure of TRW, merger, consolidation, reorganization,
partial or complete liquidation or other corporate transaction or event having
an effect similar to any of the foregoing.

12. Miscellaneous

By accepting the Restricted Stock Units, you understand and agree to the
following conditions:

(a)  The Restricted Stock Units are subject to all the terms and conditions of
the 2000 TRW Long-Term Incentive Plan. The Compensation Committee of TRW has
authority to interpret and construe any provision of this Agreement and the
2000 TRW Long-Term Incentive Plan, and any such interpretation and
construction shall be binding and conclusive. Any reference in this Agreement
to the Directors of TRW includes the Executive Committee of the Directors.

(b)  The issuance of Restricted Stock Units pursuant to this Agreement does not
create any contractual or other right to receive Restricted Stock Units
(except pursuant to reinvestment of dividend equivalents on TRW Common Stock
pursuant to the terms of this Agreement) or benefits in lieu of Restricted
Stock Units in the future. Any future restricted stock unit grants, including
but not limited to the timing of any grant, number of units and vesting
provisions will be in TRW’s sole discretion.

(c)  Your acceptance of the Restricted Stock Units is completely voluntary and
is not a condition or right of your employment.

(d)  The value of the Restricted Stock Units and any dividend equivalent rights
thereon are not part of normal or expected compensation for purposes of
calculating any severance, resignation, redundancy, end of service payments,
bonuses, long-service awards, social insurance contributions (except where
local law specifically provides otherwise), pension or retirement benefits or
similar payments.

(e)  The Restricted Stock Units may not be assigned, sold, encumbered or in any
way transferred or alienated, except as otherwise explicitly provided in this
Agreement.

(f)  This Agreement is governed by and subject to Ohio law. Interpretation of
this Agreement and your rights thereunder will be governed by provisions of
Ohio law.

(g)  This Agreement and the 2000 TRW Long-Term Incentive Plan pursuant to which
the Restricted Stock Units have been issued to you contain all of the
provisions applicable to the Restricted Stock Units and no other statements,
documents or practices may modify, waive or alter such provisions unless
expressly set forth in writing signed by the Chairman of the Compensation
Committee of TRW Directors and delivered to you.EX-10(S) Def Comp Plan for Non-Employee Directors

 

Exhibit 10(s)

 

 

DEFERRED COMPENSATION PLAN

FOR NON-EMPLOYEE DIRECTORS OF TRW INC.

 

Amended and Restated as of:

February 28, 2002

 

Deferred Compensation Plan

for Non-Employee Directors of TRW Inc.

 

	 
	Table of Contents

	 	 	 	 	 	 	 
					Page
	
	
	
	

	
	
	
	

	
	
	
	

	Section 1.		Effective Date			1	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 2.		Purpose			1	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 3.		Eligibility			1	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 4.		Administration			1	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 5.		Deferral of Compensation			2	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 6.		Effect of Deferral Elections			3	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 7.		Deferred Compensation Account			4	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 8.		Value of Deferred Compensation Accounts			5	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 9.		Distribution of Account			5	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 10.		Acceleration of
Account Distribution Due to Unforeseeable Emergency
			7	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 11.		Death of Eligible Director;
Distribution of Account Balance
			8	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 12.		Acceleration of Account Distribution
Due to Change in Control
			8	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 13.		Eligible Directors’ Rights Unsecured			10	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 14.		Assignability			10	
	
	
	
	

	
	
	
	

	
	
	
	

	Section 15.		Amendment			10	

 

SECTION 1.  Effective Date.

      The effective date of the Deferred Compensation Plan for Non-Employee
Directors of TRW Inc. (the “Plan”) is July 1, 1997 (the “Effective Date”).

SECTION 2.  Purpose.

      The purposes of the Plan are to align a significant portion of Director
compensation with creating and sustaining shareholder value and to attract and
retain a diverse and truly superior Board of Directors. The Plan is intended
to serve as the mechanism that will allow each eligible Director to defer all
or a portion of the compensation otherwise payable to him or her for his or her
services to TRW Inc. (the “Company”).

SECTION 3.   Eligibility.

      Each Director of the Company who is not an employee of the Company or of
one of its subsidiaries shall be eligible to, and shall participate in, the
Plan (the “Eligible Director”). Following the Effective Date of the Plan, (i)
a non-employee Director will be deemed an Eligible Director as of the effective
date of his or her election as a Director of the Company, and (ii) an employee
Director will be deemed an Eligible Director as of the date he or she ceases to
be an employee of the Company or of one of its subsidiaries but continues to be
a Director, in accordance with the provisions of the Directors’ retirement
policy as amended from time to time. Eligibility to receive and defer
compensation pursuant to this Plan will cease upon the earlier of the Eligible
Director’s termination of service as a Director of the Company or upon his or
her death.

SECTION 4.  Administration.

      The Plan shall be administered by a committee (the “Committee”) consisting
of the following three officers of the Company: the Executive Vice President
and Chief

 

Financial Officer, the Executive Vice President and General Counsel,
and the Executive Vice President of Human Resources. The Committee shall have
the power to (i) determine all questions of fact or interpretation regarding
Plan provisions; (ii) adopt rules, regulations and procedures deemed necessary
and appropriate to carry out the Plan’s operation; and (iii) maintain or cause
to be maintained necessary and appropriate records. The Committee’s
determinations on questions of fact or interpretation of Plan provisions will
be binding on all parties.

      The Committee may delegate its authority to carry out specific
responsibilities given to it under the Plan.

SECTION 5.  Deferral of Compensation.

      (a) Automatic Deferral. One-half (50 percent) of the annual retainer,
exclusive of any retainer paid for chairing a Committee of the Directors, (the
“Base Annual Retainer”) otherwise payable by the Company to an Eligible
Director for his or her services to the Company on or after the Effective Date,
will be automatically deferred in equivalent shares of TRW Common Stock (the
“Automatic Deferral”) under the Plan. The shares will be held in trust for the
Eligible Director’s benefit.

      (b) Elective Deferral. In addition to the Automatic Deferral described
above, an Eligible Director may elect to defer all or a portion of the
remaining 50 percent of his or her Base Annual Retainer (the “Elective
Deferral”), expressed either as a dollar amount or as a percentage, and any
retainer that he or she may receive for chairing one of the Committees of the
Directors of the Company (together, the “Available Retainer”), as well as any
additional compensation set for committees, assignments or the performance of
special projects.

      With respect to the initial elections under the Plan for 1997, an Eligible
Director may elect to defer all or any portion of the Available Retainer for
services to

– 2 –

 

be performed on or after the Effective Date, by completing a deferral election
form prescribed by the Secretary of the Company (the “Secretary”) and returning
it to the Secretary with the following effect: (i) on or before June 13, 1997
for effect as of July 1; (ii) on or before July 15, 1997 for effect by August
1; and (iii) on or before July 31, 1997 for effect September 1.

      An Eligible Director who (i) is elected a Director of the Company
following the Effective Date of the Plan or (ii) ceases to be an employee of
the Company or one of its subsidiaries but continues to be a Director may
choose to defer all or any portion of the Available Retainer for his or her
subsequent services to the Company, provided that the prescribed deferral
election form is delivered to the Secretary within 30 days after the effective
date of the Eligible Director’s (i) election as a Director of the Company or
(ii) change in employment status.

      For years subsequent to 1997, an Eligible Director who elects to defer all
or a portion of the Available Retainer must execute the prescribed election
form and deliver it to the Secretary prior to the first day of the calendar
year for which the election is to be effective. If the Director becomes
eligible to participate in the Plan during the calendar year, the prescribed
deferral election form must be delivered to the Secretary within 30 days after
the effective date of the Eligible Director’s (i) election as a Director of the
Company or (ii) change in employment status.

SECTION 6.  Effect of Deferral Elections.

      Deferral elections, expressed either as a dollar amount or as a
percentage, made under this Plan with respect to any calendar year may not be
amended or revoked after the beginning of the calendar year with respect to
compensation to be received for services performed during that calendar year.

– 3 –

 

SECTION 7.  Deferred Compensation Account.

      As of the Effective Date of the Plan, or the effective date of the
Director’s eligibility, as appropriate, the Company shall establish an unfunded
deferred compensation account (the “Account”) for each Eligible Director
consisting of an Automatic Deferral portion and an Elective Deferral portion,
if any.

      (a) Automatic Deferral Portion. The Company will establish a trust
account for the benefit of the Eligible Directors. On the first business day
of each month, the Company will transfer to the trustee of the trust account
one-twelfth (1/12) of the amount of each Eligible Director’s Automatic
Deferral, to be used by the trustee to purchase equivalent shares of TRW Common
Stock that will be held in the trust account. The trustee will participate in
the Company’s Dividend Reinvestment Plan, and all cash dividends will be
reinvested in TRW Common Stock for the Eligible Directors’ benefit.

      (b) Elective Deferral Portion. This portion of the Eligible Director’s
Account will consist of (i) amounts rolled over from the Eligible Director’s
Account under the former Deferred Compensation Plan for Non-Employee Directors
of TRW Inc., if applicable, and (ii) any portion of the Available Retainer that
the Eligible Director elects to defer. These amounts will be held in phantom
accounts and indexed to the performance of one or more investment funds
established under The TRW Employee Stock Ownership and Stock Savings Plan (the
“Stock Savings Plan”).

      Allocation of the Elective Deferral portion of the Eligible Director’s
Account to any of the available investment funds must be made in increments of
1 percent. The Eligible Director’s allocation choices shall be implemented as
soon as practicable, in the sole discretion of the Committee.

– 4 –

 

      Subject to any restrictions imposed by Section 16(b) of the Securities
Exchange Act of 1934, the Eligible Director may, at any time, (i) change his or
her allocation choices with respect to future Elective Deferrals or (ii)
reallocate the hypothetical investment earnings in the existing Elective
Deferral portion of his or her Account. Changes or reallocations so made must
also be in increments of 1 percent.

      The Committee shall have the right to substitute investment fund choices
for the Elective Deferral portion of the Accounts from time to time, without
adversely affecting existing accruals in the Eligible Directors’ Accounts.

      Hypothetical investment earnings shall continue to accrue until the
Eligible Director’s Account is fully distributed.

SECTION 8.  Value of Deferred Compensation Accounts.

      The value of each Eligible Director’s Account shall reflect all amounts
deferred, including gains and losses from the hypothetical investments, and
shall be determined on the last day of each month (the “Valuation Date”). The
value of hypothetical investments in the Stock Savings Plan shall be based upon
the valuation date under the Stock Savings Plan coincident with or immediately
preceding such Valuation Dates.

      The amount in an Eligible Director’s Account as of each Valuation Date
that has not been previously deemed invested shall be deemed invested in a
hypothetical investment on such date, based on the value of the hypothetical
investment on such date.

SECTION 9.  Distribution of Account.

      No distributions may be made from an Eligible Director’s Account, except
as provided in this Section and Sections 11 and 12.

– 5 –

 

      (a) Automatic Deferral Portion. Automatic Deferral amounts and earnings
from the Company’s Dividend Reinvestment Plan credited to an Account shall be
distributed, beginning as soon as practicable, after the Eligible Director
ceases to hold office as a Director of the Company. The distribution shall be
made in whole shares of TRW Common Stock, valued at the fair market value of a
share of TRW Common Stock on the date of distribution. The Eligible Director
shall specify, at the time set forth in Section 5 for making Elective
Deferrals, how distribution is to be made with respect to this portion of his
or her Account:

	 	 	 
	 (1)		
as a single payment, with any fractional shares being paid in
cash; or
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 (2)		
in regular annual installments payable over a period not to
exceed 10 years, with fractional shares paid in cash at the time of
the final installment payment.

      (b) Elective Deferral Portion. Elective Deferral amounts and the relevant
hypothetical investment earnings credited to an Account shall be distributed in
accordance with the instructions given to the Secretary by the Eligible
Director at the time of his or her election to defer all or a portion of the
Available Retainer and may begin as of:

	 	 	 
	 (1)		
the date the Eligible Director ceases to hold office as a
Director of the Company;
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 (2)		
the date the Eligible Director reaches an age at which he or
she may earn unlimited amounts without penalty under the Social
Security Act and the regulations promulgated thereunder; or

– 6 –

 

	 	 	 
	 (3)		
such other date specified by the Eligible Director on the
election form (at least two years from the date deferral of
compensation begins).

Distribution of an Account may be made as a single payment or in regular annual
installments over a period of not more than 10 years.

      All distributions from the Elective Deferral portion of the Account will
be made in cash, denominated and payable in United States dollars, equal to the
amounts deferred and any gains or losses on those amounts, based on the
performance of the investment funds to which the Eligible Director allocated
his or her deferred compensation.

      The Eligible Director may change his or her Elective Deferral distribution
instructions by subsequent written notice to the Secretary, but any such change
will apply only to future deferrals. If an Eligible Director should fail to
give the Secretary instructions as to the type of distribution preferred, his
or her Account will be distributed as a single payment as soon as practicable
following the date on which he or she ceases to hold office as a Director of
the Company.

SECTION 10.  Acceleration of
Account Distribution Due to Unforeseeable Emergency.

      An Eligible Director will be permitted to receive distribution of all or a
part of the Elective Deferral portion of his or her Account if the Committee
determines that an unforeseeable emergency has occurred. An unforeseeable
emergency is one that is caused by an event beyond the Eligible Director’s
control and that would cause severe financial hardship to him or her if the
distribution of all or a part of the Elective Deferral portion of his or her
Account were not approved. Any distribution approved under this provision
shall be limited to the amount deemed necessary to meet the emergency.

– 7 –

 

SECTION 11.  Death
of Eligible Director; Distribution of Account Balance.

      In the event of the death of an Eligible Director before he or she has
received full distribution of his or her Account, the value of the Account
balance remaining to be distributed shall be determined as of the Valuation
Date coincident with or immediately following the Eligible Director’s death.
The Account balance shall, as soon as practicable, be distributed in a single
payment to the beneficiary or beneficiaries designated by the Eligible
Director. In the event that an Eligible Director has failed to name a
beneficiary, his or her Account balance shall be distributed to his or her
estate.

SECTION 12. Acceleration of Account
Distribution Due to Change in Control

         In the event of a change in control of the Company, an Eligible
Director’s Account balance may become subject to immediate
distribution in accordance with the Eligible Director’s election
instructions; provided, however, that the Eligible Director
specifically stipulated on his or her election form that such
accelerated payout be made. For purposes of this Plan, a change in
control, as defined in resolutions adopted by the Compensation
Committee of the Directors of the Company on February 28, 2002, will
be deemed to have occurred if:

	 	(i)	 	The Company or any direct or indirect subsidiary of the
Company is merged or consolidated or reorganized into or with
another corporation or other legal person and as a result of
such merger, consolidation or reorganization the securities
of the Company entitled to vote generally in the election of
Directors (“Voting Stock”) outstanding immediately prior to
such merger, consolidation or reorganization do not continue
to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or
any parent thereof) at least 51% of the combined voting power
of the securities of the Company or such surviving entity or
any parent thereof outstanding immediately after such merger,
consolidation or reorganization;

– 8 –

 

	 
	 	(ii)	 	The Company sells or otherwise transfers all or
substantially all of its assets to any other corporation or
other legal person if less than 51% of the combined voting
power of the then-outstanding Voting Stock of such
corporation or person immediately after such sale or transfer
is held in the aggregate by the holders of Voting Stock of
the Company immediately prior to such sale or transfer;
	 
	 	(iii)	 	There is a report filed on Schedule 13D or Schedule
14D-1 (or any successor schedule, form or report), each as
promulgated pursuant to the Securities Exchange Act of 1934
(the “Exchange Act”), disclosing that any person (as the term
“person” is used in Section 13(d)(3) or Section 14(d)(2) of
the Exchange Act) has acquired beneficial
ownership (as the term “beneficial ownership” is
defined under Rule 13d-3 or any successor rule or
regulation promulgated under the Exchange Act) of
securities representing 20% or more of the
then-outstanding Voting Stock of the Company, other
than pursuant to any acquisition of securities by the
Company or any of its subsidiaries;
	 
	 	(iv)	 	The Company shall file a report or proxy statement with
the Securities and Exchange Commission pursuant to the
Exchange Act disclosing in response to Item 1 of Form 8-K
thereunder or Item 6(e) of Schedule 14A thereunder (or any
successor schedule, form or report or item therein) that a
change in control of the Company has occurred; or
	 
	 	(v)	 	The following individuals cease for any reason to
constitute at least a majority of the number of directors
then serving: individuals who, on February 28, 2002,
constitute the Directors of the Company and any new Director
of the Company (other than a Director of the Company (A)
whose initial assumption of office is in connection with an
actual or threatened election contest, including but not
limited to a consent solicitation, relating to the election
of Directors of the Company and (B) who was nominated as a
Director of the Company by a person other than the Company)
whose appointment, election or nomination for election by the
Company’s shareholders was approved or recommended by a vote
of at least two-thirds of the Directors of the Company then
still in office who were Directors of the Company on February
28, 2002 or whose appointment, election or nomination for
election was previously so approved or recommended.

– 9 –

 

Notwithstanding the foregoing provisions of clauses (iii) and (iv)
above, a Change in Control shall not be deemed to have occurred
solely because (A) the Company, (B) an entity in which the Company
directly or indirectly beneficially owns more than 50% of the voting
securities or (C) any Company-sponsored employee stock ownership plan
or any other employee benefit plan of the Company, or any entity
holding shares of Voting Stock for or pursuant to the terms of any
such plan, either files or becomes obligated to file a report or a
proxy statement under or in response to Schedule 13D, Schedule 14D-1,
Item 1 of Form 8-K or Item 6(e) of Schedule 14A (or any successor
schedule, form or report or item therein) under the Exchange Act,
disclosing beneficial ownership by it of shares of Voting Stock of
the Company, whether in
excess of 20% or otherwise, or because the Company reports that a
change in control of the Company has occurred by reason of such
beneficial ownership by the entities described in clauses (A), (B)
and (C) of this paragraph.

 

SECTION 13.  Eligible
Directors’ Rights Unsecured.

      This Plan is deemed unfunded for tax purposes and is not governed by the
Employee Retirement Income Security Act of 1974. Consequently, for purposes of
this Plan, no assets shall be segregated and placed beyond the reach of the
Company’s general creditors. The right of an Eligible Director to receive
future installments under the provisions of this Plan shall be an unsecured
claim against the general assets of the Company. Accordingly, the Eligible
Directors will have the status of general unsecured creditors of the Company,
and the Plan constitutes a mere promise by the Company to make Account
distributions in the future.

SECTION 14.  Assignability.

      The right of the Eligible Director, or of his or her beneficiary, to
receive distribution of his or her Account pursuant to the provisions of this
Plan are not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment or garnishment by creditors of the
Eligible Director, or of his or her beneficiary, except by will or by the laws
of descent and distribution.

– 10 –

 

SECTION 15.  Amendment.

      This Plan may at any time or from time to time be amended, modified or
terminated by the Directors or the Executive Committee of the Directors of the
Company. No amendment, modification or termination shall adversely affect an
Eligible Director’s Account, without his or her consent.

– 11 –

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