Document:

EX-10.1

Exhibit 10.1

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (the “Agreement”) is made as of                      by and between
Milacron Inc., a Delaware corporation (the “Company”), and                     , a director and/or
officer of the Company (“Indemnitee”).

RECITALS

     WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company.

     WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining liability
insurance for the Company’s directors and officers, the significant and continual increases in the
cost of such insurance and the general trend of insurance companies to reduce the scope of coverage
of such insurance.

     WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting directors and officers to expensive litigation risks at the same
time as the availability and scope of coverage of liability insurance provide increasing challenges
for the Company.

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that the increased
difficulty in attracting and retaining highly qualified persons such as Indemnitee is detrimental
to the best interests of the Company’s stockholders and that the Company should act to assure such
persons that there will be increased certainty of such protection in the future.

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, Indemnitee on the terms and conditions
set forth herein.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     Section 1. Services to the Company. Indemnitee agrees to begin or to continue to
serve as a director or officer of the Company. Indemnitee may at any time and for any reason resign
from such position (subject to any other contractual obligation or any obligation imposed by
operation of law), in which event the Company shall have no obligation under this Agreement to
continue Indemnitee in such position. This Agreement shall not be deemed an employment contract
between Indemnitee and the Company (or any of its subsidiaries or any other entity of which
Indemnitee is or was serving in any capacity at the request of the Company). The foregoing
notwithstanding, this Agreement shall continue in force after Indemnitee has ceased to serve as a
director or officer of the Company.

     Section 2. Right to Indemnification. The Company shall to the fullest extent
permitted by applicable law as then in effect indemnify Indemnitee, if Indemnitee is or was
involved in any manner (including, without limitation, as a party or a witness) or is threatened to
be made so involved in any threatened, pending or completed investigation, claim, action, suit or
proceeding,

 

 

whether civil, criminal, administrative or investigative (including, without limitation, any
action, suit or proceeding brought by or in the right of the Company to procure a judgment in its
favor) (a “Proceeding”) by reason of the fact that Indemnitee is or was a director, officer,
employee or agent of the Company, or is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other
enterprise (including, without limitation, any employee benefit plan), against all expenses
(including attorneys’ fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by such person in connection with such Proceeding; provided, however, that,
except as provided in Section 5(d), the foregoing shall not apply to any part of a Proceeding that
was commenced by Indemnitee prior to a Change in Control (as hereinafter defined). Such
indemnification shall be a contract right. Subject to the applicable provisions of Section 5(a)
hereof, Indemnitee shall also have the right to receive from the Company payment of any expenses
incurred by Indemnitee in connection with any such Proceeding in advance of the final disposition
of such Proceeding, consistent with the provisions of applicable law as then in effect. All
references in this Agreement to the “applicable law as then in effect” refer to such law as it
exists as of the date of this Agreement or as such law may hereafter be amended (but, in the case
of such amendment, only to the extent that such amendment permits the Company to provide broader
indemnification or advancement rights than such law permitted the Company to provide prior to such
amendment).

     Section 3. Insurance, Contracts and Funding. The Company may purchase and maintain
insurance to protect itself and Indemnitee against any expenses, judgments, fines and amounts paid
in settlement as specified in this Agreement or incurred by any such person in connection with any
Proceeding referred to in this Agreement, to the fullest extent permitted by applicable law as then
in effect. The Company may enter into contracts with Indemnitee in furtherance of the provisions of
this Agreement and may create a trust fund, grant a security interest or use other means
(including, without limitation, a letter of credit) to ensure the payment of such amounts as may be
necessary to effect indemnification as provided in this Agreement.

     Section 4. Indemnification; Not Exclusive Right. The right of indemnification and
advancement of expenses provided in this Agreement shall not be exclusive of any other rights to
which Indemnitee may otherwise be entitled. The provisions of this Agreement shall inure to the
benefit of the heirs and legal representatives of Indemnitee and shall be applicable to Proceedings
commenced or continuing after the execution of this Agreement by the parties hereto, whether
arising from acts or omissions occurring before or after such execution.

     Section 5. Advancement of Expenses; Procedures; Presumptions and Effect of Certain
Proceedings; Remedies. The following procedures, presumptions and remedies shall apply with
respect to advancement of expenses and the right to indemnification under this Agreement:

     (a) Advancement of Expenses. All reasonable expenses incurred by or on behalf of Indemnitee
in connection with, and prior to the final disposition of, any Proceeding shall be advanced to
Indemnitee by the Company within 20 calendar days after the receipt by the Company of a statement
or statements from Indemnitee requesting such advance or advances from time to time, whether such
statement or statements are received prior to or after final disposition of such Proceeding.
Indemnitee shall include with such statement or statements evidence of the expenses incurred by
Indemnitee and, if required by law at the time of such advance, shall include or be accompanied by
an undertaking by or on behalf of Indemnitee to repay the amounts advanced if it

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should ultimately be determined that Indemnitee is not entitled to be indemnified against such
expenses pursuant to this Agreement.

     (b) Procedure for Determination of Entitlement to Indemnification.

          (i) To obtain indemnification under this Agreement, Indemnitee shall submit to the Secretary
of the Company a written request therefor. If the Company intends to determine whether Indemnitee
is entitled to indemnification pursuant to this Agreement, the Company shall deliver to Indemnitee
written notice of such intent (such notification, an “Election Notice”) within 15 calendar days of
the Secretary’s receipt of Indemnitee’s written request for indemnification. If the Company
delivers an Election Notice in accordance with the preceding sentence, the determination of
Indemnitee’s entitlement to indemnification shall be made not later than 90 calendar days after the
later of receipt by the Company of the written request for indemnification or final disposition of
the Proceeding. The Secretary of the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board of Directors in writing that Indemnitee has requested
indemnification.

          (ii) If the Company has delivered to Indemnitee an Election Notice within the 15-day period
set forth in Section 5(b)(i), Indemnitee’s entitlement to indemnification under this Agreement
shall be determined in one of the following ways: (A) by a majority vote of the Disinterested
Directors (as hereinafter defined), even though less than a quorum; (B) by a committee of such
Disinterested Directors designated by a majority vote of the Disinterested Directors, even though
less than a quorum; (C) by a written opinion of Independent Counsel (as hereinafter defined)
selected by a majority of the Disinterested Directors; or (D) by the stockholders of the Company
(but only if a majority of the Disinterested Directors presents the issue of entitlement to
indemnification to the stockholders for their determination). Promptly following the Company’s
receipt of a written request for indemnification, a majority of the Disinterested Directors shall
decide who shall determine the issue of entitlement to indemnification, and the Company shall
promptly notify Indemnitee of such decision. Notwithstanding the preceding sentences of this
Section 5(b)(ii), Indemnitee’s entitlement to indemnification shall be determined by Independent
Counsel if (1) Indemnitee demands a determination by Independent Counsel in the written request for
indemnification required by Section 5(b)(i) and identifies in such written request the person or
persons who Indemnitee wishes to select as Independent Counsel and (2) such written request for
indemnification is delivered to the Company following a Change in Control.

          (iii) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel, the Independent Counsel selected by a majority of the Disinterested Directors
or Indemnitee (as applicable) shall be Independent Counsel to which the Indemnitee or a majority of
the Disinterested Directors (as applicable) does not reasonably object; provided that such
objection must be delivered promptly following such selection.

     (c) Presumptions and Effect of Certain Proceedings. Except as otherwise expressly provided
in this Agreement, Indemnitee shall be presumed to be entitled to indemnification under this
Agreement upon submission of a request for indemnification in accordance with Section 5(b)(i), and
thereafter the Company shall have the burden of proof to overcome that presumption in reaching a
contrary determination. The termination of any Proceeding described in Section 2, or of any claim,
issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo
contendere or its equivalent, shall not, of itself, adversely affect the right of Indemnitee to

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indemnification or create a presumption that Indemnitee did not act in good faith and in a manner
which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company
or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that
his conduct was unlawful.

     (d) Remedies of Indemnitee.

          (i) In the event that a determination is made pursuant to Section 5(b) that Indemnitee is not
entitled to indemnification under this Agreement, or in the event no determination is made within
the 90-day period specified in Section 5(b)(i), or in the event the Company does not deliver an
Election Notice to Indemnitee within the 15-day period set forth in Section 5(b)(i), (A) Indemnitee
shall be entitled to seek an adjudication of his entitlement to such indemnification either, at
Indemnitee’s sole option, in the Court of Chancery of the State of Delaware or any other court of
competent jurisdiction or an arbitration to be conducted by a single arbitrator pursuant to the
rules of the American Arbitration Association; (B) any such judicial proceeding or arbitration
shall be de novo and Indemnitee shall not be prejudiced by reason of an adverse determination that
Indemnitee is not entitled to indemnification; and (C) in any such judicial proceeding or
arbitration the Company shall have the burden of proving that Indemnitee is not entitled to
indemnification under this Agreement. In any suit brought by Indemnitee to enforce a right to
indemnification hereunder it shall be a defense that Indemnitee has not met any applicable standard
for indemnification set forth in applicable law.

          (ii) If a determination shall have been made, pursuant to Section 5(b), that Indemnitee is
entitled to indemnification, the Company shall be obligated to pay the amounts constituting such
indemnification within five days after such determination has been made and shall be conclusively
bound by such determination unless (A) Indemnitee misrepresented or failed to disclose a material
fact in making the request for indemnification or in submitting information to the Company to aid
it in such determination or (B) such indemnification is prohibited by law. In the event that
advancement of expenses is not timely made pursuant to Section 5(a) or payment of indemnification
is not made within five calendar days after a determination of entitlement to indemnification has
been made pursuant to Section 5(b), Indemnitee shall be entitled to seek judicial enforcement of
the Company’s obligation to pay to Indemnitee such advancement of expenses or indemnification.
Notwithstanding the foregoing, the Company may bring an action, in the Court of Chancery of the
Sate of Delaware or any other court of competent jurisdiction, contesting the right of Indemnitee
to receive indemnification hereunder due to the occurrence of an event described in subclause (A)
or (B) of this clause (ii) (a “Disqualifying Event”); provided, however, that in any such action
the Company shall have the burden of proving the occurrence of such Disqualifying Event.

          (iii) The Company shall be precluded from asserting in any judicial proceeding or arbitration
commenced pursuant to this Section 5(d) that the procedures and presumptions of this Agreement are
not valid, binding and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement.

          (iv) In the event that Indemnitee, pursuant to this Section 5(d), seeks a judicial
adjudication of or an award in arbitration to enforce his rights under, or to recover damages for
breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be
indemnified by the Company against, any expenses actually and reasonably incurred by Indemnitee if
Indemnitee prevails in such judicial adjudication or arbitration. If it shall be determined in
such

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judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the
indemnification or advancement of expenses sought, the expenses incurred by Indemnitee in
connection with such judicial adjudication or arbitration shall be prorated accordingly.

     (e) Definitions. For purposes of this Section 5:

          (i) “Change in Control” means a change in control of the Company of a nature that would be
required to be reported in response to Item 6(e) (or any successor provision) of Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934 (the “Act”), whether or not
the Company is then subject to such reporting requirement; provided that, without limitation, such
a change in control shall be deemed to have occurred if (A) any “person” (as such term is used in
Sections 13(d) and 14(d) of the Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3
under the Act), directly or indirectly, of securities of the Company representing 50% or more of
the combined voting power of the Company’s then outstanding securities without the prior approval
of at least two-thirds of the members of the Board of Directors in office immediately prior to such
acquisition; (B) the Company is a party to any merger or consolidation in which the Company is not
the continuing or surviving corporation or pursuant to which shares of the Company’s Common Stock
would be converted into cash, securities or other property, other than a merger of the Company in
which the holders of the Company’s Common Stock immediately prior to the merger have the same
proportionate ownership of common stock of the surviving corporation immediately after the merger;
(C) there is a sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, the assets of the Company, or a liquidation or
dissolution of the Company; or (D) during any period of two consecutive years, individuals who at
the beginning of such period constituted the Board of Directors (including for this purpose any new
director whose election or nomination for election by the Company’s stockholders or appointment by
Company directors was approved by a vote of at least two-thirds of the directors then still in
office who were either directors at the beginning of such period or who were previously so approved
by such two-thirds vote) cease for any reason to constitute at least a majority of the Board of
Directors.

          (ii) “Disinterested Director” means a director of the Company who is not or was not a party
to the Proceeding in respect of which indemnification is sought by Indemnitee.

          (iii) “Independent Counsel” means a law firm or a member of a law firm that neither presently
is, nor in the past five years has been, retained to represent (a) the Company or Indemnitee in any
matter material to either such party or (b) any other party to the Proceeding giving rise to a
claim for indemnification under this Agreement. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing under the law of the State of Delaware, would have a conflict
of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of
Independent Counsel and to fully indemnify such counsel against any and all expenses, claims,
liabilities and damages arising out of or relating to the Agreement or such Independent Counsel’s
engagement pursuant hereto.

     Section 6. Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including, without limitation,
all

5

 

portions of any section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way
be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, all portions of any section of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid,
illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the
provision held invalid, illegal or unenforceable.

     Section 7. Enforcement.

     (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby to induce Indemnitee to begin or to continue to serve
as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying
upon this Agreement in serving as a director or officer of the Company.

     (b) This Agreement constitutes the entire agreement between the parties hereto with respect
to the subject matter hereof and supersedes all prior agreements and understandings, oral, written
and implied, between the parties hereto with respect to the subject matter hereof; provided,
however, that this Agreement is a supplement to and in furtherance of the Charter, By-Laws and
applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any
rights of Indemnitee thereunder.

     Section 8. Amendment and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions of this Agreement nor shall any waiver constitute a continuing waiver.

     Section 9. Applicable Law. This Agreement and the legal relations among the parties
shall be governed by, and construed and enforced in accordance with, the laws of the State of
Delaware, without regard to its conflict of laws rules.

     Section 10. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforceability is sought need be produced to evidence the existence of this
Agreement.

     Section 11. Notices. All notices, requests, demands and other communications
required or permitted hereunder shall be in writing and shall be deemed to have been duly given
when delivered by hand or when mailed by certified mail, return receipt requested, with postage
prepaid:

     A. If to Indemnitee to:

________________________

________________________

________________________

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or to such other person or address as Indemnitee shall furnish to the Company in writing pursuant
to the above.

     B. If to the Company to:

Milacron Inc.

2090 Florence Avenue

Cincinnati, Ohio 45206

Attention: Secretary

or to such other person or address as the Company shall furnish to Indemnitee in writing pursuant
to the above.

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year
first above written.

	 	 	 	 	 
	 	MILACRON INC. (“Company”)

 	 
	 	By:  	 	 
	 	 	Name:  	Ronald D. Brown 	 
	 	 	Title:  	Chairman, President and Chief
Executive Officer 	 
	 

	 	 	 	 	 
	 

	 	INDEMNITEE
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 

7EX-10.2

Exhibit 10.2

MILACRON INC.

DIRECTOR DEFERRED COMPENSATION PLAN

As Amended April 1, 2008

     Milacron Inc. (the “Company”) hereby establishes, effective as of May 4, 2005, the Milacron
Inc. Director Deferred Compensation Plan (the “Plan”) on the terms and conditions hereinafter set
forth. Such Plan provides certain members of the Company’s Board of Directors the opportunity to
receive deferred compensation in accordance with the provisions of the Plan.

     1. Definitions. For the purposes hereof, the following words and phrases shall have
the meanings set forth below, unless their context clearly requires a different meaning:

     “Account” means the bookkeeping account maintained by the Company on behalf of each
Participant as provided herein. The sum of each Participant’s Deferral Sub-Account and Restricted
Sub-Account, in the aggregate, shall constitute his Account.

     “Beneficiary” means the Participant’s estate.

     “Board” means the board of directors of the Company.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Company” means Milacron Inc. and its successors, including, without limitation, the surviving
corporation resulting from any merger or consolidation of Milacron Inc. with any other corporation,
limited liability company, joint venture, partnership or other entity or entities.

     “Common Stock” means the common stock of the Company or any security into which such Common
Stock may be changed by reason of any transaction or event of the type referred to in Section 5
hereof.

     “Deferral Sub-Account” means the bookkeeping sub-account maintained by the Company on behalf
of each Participant pursuant to Section 2 hereof.

     “Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations
thereunder, as such law, rules and regulations may be amended from time to time.

     “Fair Market Value per Share” means, as of any particular date, (i) the closing sale price per
share of Common Stock as reported on the principal exchange on which Common Stock of the Company is
then trading, if any, or if there are no sales on such day, on the next preceding trading day
during which a sale occurred, or (ii) if clause (i) does not apply, the fair market value of a
share of Common Stock as determined by the Board.

     “Participant” means any member of the Board who is not an employee of the Company or any of
its subsidiaries or affiliates and, during the term of the Director Fee Agreement by and between
Bayside Capital, Inc. (together with its affiliates “Bayside”) and the Company, any member of the
Board who is not an employee or affiliate of Bayside.

     “Plan” means this Milacron Inc. Director Deferred Compensation Plan.

 

 

Exhibit 10.2

     “Restricted Sub-Account” means the bookkeeping sub-account maintained by the Company on behalf
of each Participant pursuant to Section 2 hereof.

     2. Accounts. The Company shall establish a Deferral Sub-Account and Restricted
Sub-Account for each Participant. The Balance in each such sub-account shall reflect the shares of
Common Stock, if any, credited by the Company under Section 3 hereof, and adjustments thereto,
including dividend equivalents, in accordance with Section 5 hereof. The Company may, in its sole
discretion, establish and name such additional sub-accounts as may be appropriate or necessary to
facilitate proper recordkeeping, provided that the terms of such additional sub-accounts are
consistent with the Plan.

     3. Credits of Common Stock

     (a) On May 4, 2005, each Participant serving on the Board as of the preceding day shall
receive a credit to his Deferral Sub-Account of a number of shares of Common Stock equal to (i)
$10,000 divided by (ii) the Fair Market Value per Share as of January 1, 2005. Each Participant
joining the Board during 2005 but after May 3 shall receive, on the fifth business day after such
Participant becomes a member of the Board, a number of credits to his Deferral Sub-Account
calculated in accordance with the prior sentence, but prorated for the amount of the calendar year
2005 during which the Participant is expected to be a member of the Board. On January 5, 2006, and
on each January 5th thereafter (unless such day is not a business day, in which event on the next
succeeding business day), each Participant serving on the Board as of such date shall receive a
credit to his Deferral Sub-Account of a number of shares of Common Stock equal to (i) $10,000
divided by (ii) the Fair Market Value per Share as of the immediately preceding January 1. Each
Participant joining the Board after January 1 of 2006 or after the first day of any subsequent
calendar year shall receive, on the fifth business day after such Participant becomes a member of
the Board, a number of credits to his Deferral Sub-Account calculated in accordance with the prior
sentence, but prorated for the amount of such calendar year during which the Participant is
expected to be a member of the Board.

     (b) The Company may from time to time, in its discretion, credit shares of Common Stock to the
Restricted Sub-Account of one or more Participants. The amount of such credits, if any, shall be
determined by the Board in its sole discretion.

     4. Vesting. Credits to a Participant’s Deferral Sub-Account shall vest daily in equal
increments during the period beginning on January 1 of the calendar year in which such credits are
made pursuant to Section 3 and ending on December 31 of such year. Notwithstanding the previous
sentence, for those Participants joining the Board after January 1 of a given calendar year, daily
vesting shall begin the day the Participant joins the Board, and for those Participants who cease
to be members of the Board prior to December 31 of a given calendar year, daily vesting shall end
on the date the Participant ceases to be a member of the Board. Thus, if a Participant joins the
Board after January 1 or ceases to be a member of the Board prior to December 31 of a given year,
the amount payable from Participant’s Deferral Sub-Account during such calendar year shall be
prorated for the number of days during the calendar year in which the Participant served as a
member of the Board. Credits, if any, to a Participant’s Restricted Sub-Account shall be subject to
such vesting schedule as may be determined by the Board at the time such credits are approved.

 

 

Exhibit 10.2

     5. Adjustments. The amount credited to the Accounts in accordance with Section 3
hereof, plus dividend equivalents thereon, shall be deemed to be invested at all times in shares of
Common Stock, in accordance with procedures established from time to time by the Board.
Notwithstanding the preceding sentence, the Company is not and shall not be required to make any
investment in shares of Common Stock in connection with this Plan. The Board may make or provide
for such adjustments in the number of shares of Common Stock credited to the Accounts as the Board,
in its sole discretion exercised in good faith, may determine is equitably required in order to
prevent dilution or enlargement of a Participant’s rights that otherwise would result from (i) any
stock dividend, stock split, combination of shares, recapitalization, or other change in the
capital structure of the Company, (ii) any merger, consolidation, spin-off, split-off, spin-out,
split-up, reorganization, partial or complete liquidation, or other distribution of assets or
issuance of rights or warrants to purchase securities, or (iii) any other corporate transaction or
event having an effect similar to any of the foregoing. In the event of any such transaction or
event, the Board, in its sole discretion exercised in good faith, may provide, in substitution for
the shares of Common Stock credited to the Accounts, such alternative consideration as it may
determine to be equitable in the circumstances.

     6. Distribution of Accounts

     (a) The vested amounts then-credited to a Participant’s Deferral Sub-Account and Restricted
Sub-Account shall be distributed to him or his Beneficiary within 20 days following the date on
which the Participant ceases to be a member of the Board. Such distribution shall discharge all
obligations of the Company (and any affiliates) to the Participant or Beneficiary under this Plan
with respect to such sub-accounts. Notwithstanding the preceding sentence, the Board may, at the
time that an amount is credited to a Participant’s Restricted Sub-Account, provide that such amount
shall be distributed to him or his Beneficiary within 20 days following the date on which such
amount becomes vested.

     (b) Amounts distributed from a Deferral Sub-Account or Restricted Sub-Account shall be paid be
in cash, provided, however, the Company may, in its sole discretion, and subject to Section 14
hereof, permit Participants to elect to receive such distributions in shares of Common Stock. To
the extent permitted by the Company, a Participant may elect, on a form provided by the Company, to
receive distributions from his Deferral Sub-Account or Restricted Sub-Account in shares of Common
Stock or a combination of cash or shares. Notice of the election to receive a distribution in the
form of Common Stock shall be delivered to the Secretary of the Company no less than 10 days prior
to the distribution. Amounts distributed in cash shall be calculated based on the Fair Market
Value per Share as of the date of the event that gave rise to the distribution. Any shares of
Common Stock distributed under the Plan may be shares of original issuance, treasury shares or a
combination of the foregoing. The Company shall not be required to issue any fractional shares of
Common Stock pursuant to this Plan and may provide for the elimination of fractions. Any
distribution shall be made in a single lump sum.

     (c) Notwithstanding anything in this Section 6 to the contrary, (i) the date on which a
Participant ceases to be a member of the Board shall be deemed to have not occurred for purposes of
this Plan unless such cessation constitutes a “separation from service” within the meaning of
Section 409A of the Code, and (ii) if a Participant is a “specified employee” within the meaning of
Section 409A of the Code, then any distribution on account of his separation

 

 

Exhibit 10.2

from service may not commence before the date that is 6 months after the date of such
separation from service (or, if earlier, the date of death).

     7. Administration

     (a) This Plan shall be administered by the Board, which may from time to time delegate all or
any part of its authority under this Plan to a committee of the Board (or subcommittee thereof),
consisting of not less than two directors appointed by the Board, each of whom shall be a
“non-employee director” as defined in Rule 16b-3 of the Exchange Act. To the extent of any such
delegation, references in this Plan to the Board shall be deemed to be references to any such
committee or subcommittee. A majority of the committee (or subcommittee) shall constitute a quorum,
and the action of the members of the committee (or subcommittee) present at any meeting at which a
quorum is present, or acts unanimously approved in writing, shall be the acts of the committee (or
subcommittee).

     (b) The Board shall have all such powers as may be necessary to carry out the provisions of
the Plan, including the power to (i) resolve all questions pertaining to claims for benefits and
procedures for claim review, (ii) resolve all other questions arising under the Plan, including any
factual questions and questions of construction, and (iii) take such further action as the Company
shall deem advisable in the administration of the Plan. The actions taken and the decisions made by
the Board hereunder shall be final and binding upon all interested parties.

     (c) Notwithstanding any other provision herein, it is intended that the Plan comply with the
provisions of Section 409A of the Code, so as to prevent the inclusion in gross income of any
amounts deferred hereunder in a taxable year that is prior to the taxable year or years in which
such amounts would otherwise actually be distributed or made available to Participants or
Beneficiaries. This Plan shall be construed, administered, and governed in a manner that effects
such intent, and the Board shall not take any action that would be inconsistent with such intent.
Any provisions that would cause any amount deferred or payable under the Plan to be includible in
the gross income of any Participant or Beneficiary under Section 409A(a)(1) of the Code shall have
no force and effect unless and until amended to cause such amount to not be so includible (which
amendment may be retroactive to the extent permitted by Section 409A of the Code and may be made by
the Board without the consent of the Participant or Beneficiary).

     8. Interest of Participants. The obligation of the Company under the Plan to make
payment of amounts reflected in an Account merely constitutes the unsecured promise of the Company
to make payments from its general assets and no Participant or Beneficiary shall have any interest
in, or a lien or prior claim upon, any property of the Company. This Plan shall not confer upon any
Participant any right with respect to continuance of service with the Company or any affiliate, nor
shall it interfere in any way with any right the Company or any affiliate would otherwise have to
terminate such Participant’s service at any time.

     9. Nonassignment of Benefits. No right or interest under the Plan of any Participant
or Beneficiary shall, without the written consent of the Company, be (i) assignable or transferable
in any manner, (ii) subject to alienation, anticipation, sale, pledge, encumbrance, attachment,
garnishment or other legal process or (iii) in any manner liable for or subject to the debts or
liabilities of the Participant or Beneficiary. Notwithstanding the foregoing, to the extent
permitted by Section 409A of the Code, the Board shall honor a judgment, order or decree from

 

 

Exhibit 10.2

a state domestic relations court which requires the payment of part or all of a Participants’
or Beneficiary’s interest under this Plan to an “alternate payee” as defined in Section 414(p) of
the Code.

     10. Amendment and Termination. The Company reserves the right to amend or terminate
the Plan at any time by action of the Board, except that no such action shall reduce the Account
balance of any Participant or his Beneficiary who has an Account, without the consent of the
Participant or Beneficiary. Notwithstanding the foregoing, in the event that the Plan is
terminated, the vested amounts allocated to a Participant’s Account shall be distributed to the
Participant or his Beneficiary on the dates on which the Participant or his Beneficiary would
otherwise receive benefits hereunder without regard to the termination of the Plan;
provided, however, that to the extent permitted by Section 409A of the Code, the
Board may direct that the Participant or his Beneficiary receive an immediate lump sum payment
equal to the vested amount credited to his Account.

     11. Governing Law. Except to the extent preempted by federal law, the provisions of
the Plan shall be governed and construed in accordance with the laws of the State of Delaware.

     12. Successors. This Plan shall be binding upon and inure to the benefit of the
Company and any successor of or to the Company, including without limitation any persons acquiring
directly or indirectly all or substantially all of the business and/or assets of the Company
whether by sale, merger, consolidation, reorganization or otherwise (and such successor shall
thereafter be deemed the “Company” for the purposes of this Plan), and the heirs, beneficiaries,
executors and administrators of each Participant.

     13. No Funding Required. The Company may create a trust to hold funds to be used in
payment of its obligations under the Plan, and may fund such trust; provided,
however, that any funds contained therein shall remain liable for the claims of the
Company’s general creditors.

     14. Compliance with Law. The Company shall make reasonable efforts to comply with all
applicable federal and state securities laws in connection with the Plan; provided,
however, notwithstanding any other provision of this Plan, the Company shall not be
obligated to issue any Common Stock pursuant to this Plan if the issuance thereof would result in a
violation of any such law, in which case the Company shall satisfy its obligations under Section 6
hereof in cash and not shares of Common Stock.

     15. Headings; Interpretation

     (a) Headings in this Plan are inserted for convenience of reference only and are not to be
considered in the construction of the provisions hereof. Unless the context clearly requires
otherwise, the masculine pronoun wherever used herein shall be construed to include the feminine
pronoun.

     (b) Any reference in this Plan to Section 409A of the Code will also include any proposed,
temporary or final regulations, or any other guidance, promulgated with respect to such Section
409A by the U.S. Department of Treasury or the Internal Revenue Service.

     (c) For purposes of the Plan, the phrase “permitted by Section 409A of the Code,” or words or
phrases of similar import, shall mean that the event or circumstance shall only be permitted to

 

 

Exhibit 10.2

the extent it would not cause an amount deferred or payable under the Plan to be includible in
the gross income of a Participant or Beneficiary under Section 409A(a)(1) of the Code.

[END OF DOCUMENT]

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