Document:

exv10w4

 

Exhibit 10.4

NEWELL RUBBERMAID INC.

2008 DEFERRED COMPENSATION PLAN

     Newell Rubbermaid Inc. hereby establishes, effective as of January 1, 2008 (the “Effective
Date”), the Newell Rubbermaid Inc. 2008 Deferred Compensation Plan on the terms and conditions set
forth. The Plan provides certain eligible employees and directors with the opportunity to defer
portions of their base salary, incentive compensation and director fees and, in conjunction with
the Newell Rubbermaid Supplemental Executive Retirement Plan, receive certain other retirement
benefits, all in accordance with the provisions of the Plan. The Plan is adopted to comply with
the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

     The Plan shall govern deferrals of compensation and retirement benefits earned on and after
the Effective Date. The Plan shall also govern certain deferrals of compensation and retirement
benefits that were previously maintained under the Newell Rubbermaid Inc. 2002 Deferred
Compensation Plan (the “Prior Plan”). Specifically, in order to comply with Section 409A of the
Code, any “amounts deferred” (within the meaning of Section 409A of the Code) in taxable years
beginning on or after January 1, 2005 and credited to either a retirement sub-account or an
in-service sub-account under the Prior Plan, and any earnings thereon, shall be governed by the
terms and conditions of the Plan, and it is intended that such amounts and any earnings thereon be
subject to the application of Section 409A of the Code. Moreover, all amounts credited to a SERP
cash sub-account under the Prior Plan (regardless of when credited), and any earnings thereon,
shall be governed by the terms and conditions of the Plan, and it is intended that such amounts and
any earnings thereon be subject to the application of Section 409A of the Code.

     The Prior Plan will remain in effect and will govern certain deferrals of compensation earned
prior to January 1, 2005. Specifically, any “amounts deferred” (within the meaning of Section 409A
of the Code) in taxable years beginning before January 1, 2005 and credited to either a retirement
sub-account or an in-service sub-account under the Prior Plan, and any earnings thereon, shall
continue to be governed by the terms of the Prior Plan as in effect on October 3, 2004, and it is
intended that such amounts and any earnings thereon be exempt from the application of Section 409A
of the Code. Immediately prior to the Effective Date, the Prior Plan shall be frozen, and neither
the Company, its affiliates nor any individual shall make or permit to be made any additional
contributions or deferrals under the Prior Plan (other than earnings) on or after the Effective
Date. Nothing contained herein is intended to materially enhance a benefit or right existing
under the Prior Plan as of October 3, 2004 or add a new material benefit or right to such Prior
Plan.

ARTICLE I

DEFINITIONS

     For purposes of the Plan, 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 Committee on behalf of each
Participant pursuant to this Plan. The sum of each Participant’s Sub-Accounts, in the aggregate,
shall constitute his Account. The Account and each and every Sub-Account shall be a bookkeeping
entry only and shall be used solely as a device to measure and determine the amounts, if any, to be
paid to a Participant or his Beneficiary under the Plan.

     “Affiliated Group” means (i) the Company, and (ii) all entities with whom the Company would be
considered a single employer under Sections 414(b) and 414(c) of the Code, provided that in
applying Section 1563(a)(1), (2), and (3) for purposes of determining a controlled group of
corporations under Section 414(b) of the Code, the language “at least 50 percent” is used instead
of “at least 80 percent” each place it appears in Section 1563(a)(1), (2), and (3), and in applying
Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or
not incorporated) that are under common control for purposes of Section 414(c), “at least 50
percent” is used instead of “at least 80 percent” each place it appears in that regulation. Such
term shall be interpreted in a manner consistent with the definition of “service recipient”
contained in Section 409A of the Code.

     “Assumed Amounts” has the meaning given to such term in Section 10.1(d).

     “Base Salary” means the annual base rate of cash compensation payable by the Affiliated Group
to a Participant during a calendar year, excluding Incentive Compensation, bonuses, commissions,
severance payments, Company Contributions, qualified plan contributions or benefits, expense
reimbursements, fringe benefits and all other payments, and prior to reduction for any deferrals
under this Plan or any other plan of the Affiliated Groups under Sections 125 or 401(k) of the
Code. For purposes of this Plan, Base Salary payable after the last day of a calendar year solely
for services performed during the final payroll period described in Section 3401(b) of the Code
containing December 31 of such year shall be treated as earned during the subsequent calendar year.

     “Beneficiary” or “Beneficiaries” means the person or persons, including one or more trusts,
designated by a Participant in accordance with the Plan to receive payment of the remaining balance
of the Participant’s Account in the event of the death of the Participant prior to the
Participant’s receipt of the entire vested amount credited to his Account.

     “Beneficiary Designation Form” means the form established from time to time by the Committee
(in a paper or electronic format) that a Participant completes, signs and returns to the Committee
to designate one or more Beneficiaries.

     “Board” means the Board of Directors of the Company.

     “Change in Control” means the occurrence of a “change in the ownership,” a “change in the
effective control” or a “change in the ownership of a substantial portion of the assets” of the
Company within the meaning of Section 409A of the Code.

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

     “Commencement Date” has the meaning given to such term in Section 2.3.

2

 

     “Committee” means the committee appointed to administer the Plan. Unless and until otherwise
specified, the Committee under the Plan shall be the Company’s Benefit Plans Administrative
Committee (or its designee), as established by the Board by resolution dated October 1, 2004.

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

     “Company Contributions” has the meaning given to such term in Section 4.1.

     “Company Contribution Sub-Account” means the bookkeeping Company Contribution Sub-Account
maintained by the Committee on behalf of each Participant pursuant to Section 2.4.

     “Deferral Election” means the Participant’s election on a form approved by the Committee to
defer a portion of his Base Salary, Incentive Compensation or Director Fees in accordance with the
provisions of Article III.

     “Director” means any individual who is a member of the Board and who is not an employee of the
Company or its Affiliated Group.

     “Director Fees” means the annual cash retainer for Board and committee service, special
assignment fees, meeting fees, committee chair or presiding director fees, and other cash amounts
payable to a Participant for service to the Company as a Director.

     “Effective Date” means January 1, 2008.

     “Eligible Employee” has the meaning given to such term in Section 2.1.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Incentive Compensation” means cash compensation payable pursuant to an incentive compensation
or retention plan, including but not limited to an annual or long-term incentive compensation plan,
whether such plan is now in effect or hereafter established by the Affiliated Group, which the
Committee may designate from time to time.

     “In-Service Sub-Account” means each bookkeeping In-Service Sub-Account maintained by the
Committee on behalf of each Participant pursuant to Section 2.4.

     “Matching Credit” means any Company Contribution designated by the Committee as a Matching
Credit in accordance with Section 4.1(b).

     “Newly Eligible Participant” means any Eligible Employee or Director who (i) has a
Commencement Date after January 1, 2008, (ii) as of his Commencement Date, is not eligible to
participate in an “aggregated plan”, and (iii) if he previously participated in the Plan or an
“aggregated plan”, has either (A) received payments of all amounts previously deferred under the
Plan and any “aggregated plan” as of the Commencement Date, and on or before the last

3

 

payment was not eligible to continue participation in the Plan or any “aggregated plan” for
periods after the last payment, or (B) regardless of whether he has received full payment of all
amounts deferred under the Plan or an “aggregated plan”, ceased to be eligible to participate in
the Plan and any “aggregated plan” (other than the accrual of earnings) for a period of at least 24
consecutive months prior to his new Commencement Date. For purposes of this definition, an
“aggregated plan” is any plan that is required to be aggregated with the Plan under Section 409A of
the Code. For purposes of clarity, the portion of the Plan consisting of the right to defer Base
Salary, Incentive Compensation and Director Fees shall be treated as separate and apart from, and
shall not aggregated with, the portion of the Plan consisting of the right to receive credits of
Company Contributions.

     “Participant” means any Eligible Employee or Director who (i) at any time elected to defer the
receipt of Base Salary, Incentive Compensation or Director Fees in accordance with the Plan or
received a credit to his Account pursuant to Section 4.1, and (ii) in conjunction with his
Beneficiary, has not received a complete payment of the vested amount credited to his Account.
Moreover, any individual with respect to whom Assumed Amounts are credited hereunder shall
automatically participate, and be a “Participant,” in the Plan with respect to such Assumed
Amounts.

     “Payment Election” means the Participant’s election on a form approved by the Committee that
sets forth the form of payment of the Company Contribution Account as provided in Section 4.2.

     “Performance-Based Compensation” means that portion of a Participant’s Incentive Compensation
the amount of which, or the entitlement to which, is contingent on the satisfaction of
pre-established organizational or individual performance criteria relating to a Performance Period
of at least twelve (12) consecutive months, and which satisfies the requirements for
“performance-based compensation” under Section 409A of the Code, including the requirement that the
performance criteria be established in writing by not later than (i) ninety (90) days after the
commencement of the period of service to which the criteria relates and (ii) the date the outcome
ceases to be substantially uncertain. Where a portion of an amount of Incentive Compensation would
qualify as Performance-Based Compensation if the portion were the sole amount available under a
designated incentive plan, that portion of the award will not fail to qualify as Performance-Based
Compensation if that portion is designated separately by the Committee on the Deferral Election or
is otherwise separately identifiable under the terms of the designated incentive plan, and the
amount of each portion is determined independently of the other.

     “Performance Period” means, with respect to any Incentive Compensation, the period of time
during which such Incentive Compensation is earned.

     “Plan” means this deferred compensation plan, which shall be known as the Newell Rubbermaid
Inc. 2008 Deferred Compensation Plan.

     “Post-2008 Participant” has the meaning given to such term in Section 4.2(d).

     “Prior Plan” means the Newell Rubbermaid Inc. 2002 Deferred Compensation Plan.

4

 

     “Retirement Savings Credit” means any Company Contribution designated by the Committee as a
Retirement Savings Credit in accordance with Section 4.1(b).

     “Retirement Sub-Account” means the bookkeeping Retirement Sub-Account maintained by the
Committee on behalf of each Participant pursuant to Section 2.4.

     “Separation from Service” means a termination of employment or service with the Affiliated
Group in such a manner as to constitute a “separation from service” as defined under Section 409A
of the Code. Upon a sale or other disposition of the assets of the Company or any member of the
Affiliated Group to an unrelated purchaser, the Committee reserves the right, to the extent
permitted by Section 409A of the Code, to determine whether Participants providing services to the
purchaser after and in connection with the purchase transaction have experienced a Separation from
Service.

     “SERP Cash Account Credit” means any Company Contribution designated by the Committee as a
SERP Cash Account Credit in accordance with Section 4.1(b).

     “Sub-Account” means each bookkeeping In-Service Sub-Account, Retirement Sub-Account and
Company Contribution Sub-Account maintained by the Committee on behalf of each Participant pursuant
to the Plan.

     “Subsequent Payment Election” has the meaning given to such term in Section 6.1(c).

     “Unforeseeable Emergency” means an “unforeseeable emergency” as defined under Section 409A of
the Code.

     “Years of Credited Service” has the meaning provided in the Newell Rubbermaid Supplemental
Executive Retirement Plan, unless otherwise determined by the Committee.

ARTICLE II

ELIGIBILITY; SUB-ACCOUNTS

     2.1. Selection by Committee. Participation in the Plan is limited to (a) those employees of
the Affiliated Group who are (i) expressly selected by the Committee, in its sole discretion, to
participate in the Plan, and (ii) a member of a “select group of management or highly compensated
employees,” within the meaning of Sections 201, 301 and 401 of ERISA (the “Eligible Employees”),
and (b) Directors. In lieu of expressly selecting Eligible Employees for Plan participation, the
Committee may establish eligibility criteria (consistent with the requirements of paragraph (a)(ii)
of this Section) providing for participation of all Eligible Employees who satisfy such criteria.
The Committee may at any time, in its sole discretion, change the eligibility criteria for Eligible
Employees, or determine that one or more Participants will cease to be an Eligible Employee.

     2.2. Enrollment Requirements. As a condition to participation, each selected Eligible
Employee and each Director shall complete, execute and return to the Committee a Deferral Election,
Payment Election (if applicable) and Beneficiary Designation Form no later than the date or dates
specified by the Committee. In addition, the Committee may establish

5

 

from time to time such other enrollment requirements as it determines in its sole discretion
are necessary.

     2.3. Commencement Date

          (a) Each Eligible Employee and each Director shall commence participation on the date
designated by the Committee (the “Commencement Date”). If an Eligible Employee or Director has
not satisfied the applicable enrollment requirements of Section 2.2 within thirty (30) days of his
Commencement Date (or such earlier date as specified by the Committee), such individual’s
Commencement Date shall instead be the first day of the calendar year next following the date that
he or she satisfies such enrollment requirements. An Eligible Employee and Director shall have no
right to defer Base Salary, Director Fees or Incentive Compensation under the Plan prior to his
Commencement Date.

          (b) Any Eligible Employee as of the Effective Date with respect to whom Assumed Amounts are
credited hereunder shall have a Commencement Date of January 1, 2008.

     2.4. Sub-Accounts.

          (a) Establishment. The Committee shall establish and maintain separate Retirement
Sub-Accounts, Company Contribution Sub-Accounts and one or more In-Service Sub-Accounts for each
Participant. The Committee, in its sole discretion, shall specify the maximum number (including
zero) of permitted In-Service Sub-Accounts for each Participant. Amounts credited to a Retirement
Sub-Account and Company Contribution Sub-Account shall commence to be paid to a Participant or his
Beneficiary following the Participant’s Separation from Service as provided in Article VI. Amounts
credited to an In-Service Sub-Account shall commence to be paid in a year specified by the
Participant as provided in Section 3.4(a) and Article VI below.

          (b) Adjustments.

               (i) A Participant’s Retirement Sub-Account and In-Service Sub-Account shall be credited with
deferrals of Base Salary, Incentive Compensation or Director Fees in accordance with Article III.
Base Salary, Incentive Compensation or Director Fees that a Participant elects to defer shall be
treated as if it were set aside in the Retirement Sub-Account or, if applicable, one or more
In-Service Sub-Accounts on the date the Base Salary, Incentive Compensation or Director Fees would
otherwise have been paid to the Participant.

               (ii) A Participant’s Company Contribution Sub-Account shall be credited with Company
Contributions, if any, in accordance with Article IV. Company Contributions shall be treated as if
they were set aside in the Company Contribution Sub-Account on the date specified by the Committee
in its sole discretion.

               (iii) A Participant’s Sub-Accounts shall be credited with gains, losses and earnings as
provided in Article V and shall be debited for any payments made to the Participant as provided in
Article VI.

6

 

     2.5. Termination.

          (a) Deferrals. An individual’s right to defer Base Salary, Incentive Compensation and
Director Fees shall cease with respect to the calendar year (or the Performance Period, as the case
may be) following the calendar year (or the Performance Period, as the case may be) in which he
ceases to be an Eligible Employee or Director, although such individual shall continue to be
subject to all of the terms and conditions of the Plan for as long as he remains a Participant.

          (b) Company Contributions. An individual’s right to receive credits of Company
Contributions shall cease on the date provided by the Committee in its sole discretion.

ARTICLE III

DEFERRAL ELECTIONS

     3.1. New Participants.

          (a) Application. This Section 3.1 applies to each Eligible Employee or Director who
is a Newly Eligible Participant in the portion of the Plan relating to the right to defer Base
Salary, Incentive Compensation and Director Fees and whose Commencement Date occurs after the first
day of a calendar year but prior to September 1 of such calendar year (or such earlier or later
date as specified by the Committee from time to time).

          (b) Deferral Election. An Eligible Employee described in Section 3.1(a) may elect to
defer his Base Salary earned during such calendar year or his Incentive Compensation earned during
a Performance Period that commences in such calendar year, and a Director described in Section
3.1(a) may elect to defer his Director Fees earned during such calendar year, as the case may be,
by filing a Deferral Election with the Committee in accordance with the following rules:

               (i) Timing; Irrevocability. The Deferral Election must be filed with the Committee by, and
shall become irrevocable as of, the thirtieth (30th) day following the Participant’s Commencement
Date (or such earlier date as specified by the Committee on the Deferral Election).

               (ii) Base Salary. The Deferral Election shall only apply to Base Salary earned during such
calendar year beginning with the first payroll period that begins immediately after the date that
the Deferral Election becomes irrevocable in accordance with Section 3.1(b)(i).

               (iii) Incentive Compensation. Where a Deferral Election is made in the first year of
eligibility but after the commencement of a Performance Period, then, except as otherwise provided
in Section 3.2 below, the Deferral Election shall only apply to that portion of Incentive
Compensation earned for such Performance Period equal to the total amount of the Incentive
Compensation earned during such Performance Period multiplied by a fraction, the numerator of which
is the number of days beginning on the day immediately after the date that the Deferral Election
becomes irrevocable in accordance with Section 3.1(b)(i) and ending on the

7

 

last day of the Performance Period, and the denominator of which is the total number of days
in the Performance Period.

               (iv) Director Fees. The Deferral Election shall only apply to Director Fees earned after the
date that the Deferral Election becomes irrevocable in accordance with Section 3.1(b)(i).

     3.2. Annual Deferral Elections. Unless Section 3.1 applies, each Eligible Employee may elect
to defer Base Salary for a calendar year or his Incentive Compensation for a Performance Period,
and each Director may elect to defer Director Fees, as the case may be, by filing a Deferral
Election with the Committee in accordance with the following rules:

          (a) Base Salary. The Deferral Election with respect to Base Salary must be filed with
the Committee by, and shall become irrevocable as of, December 31 (or such earlier date as
specified by the Committee on the Deferral Election) of the calendar year next preceding the
calendar year for which such Base Salary would otherwise be earned.

          (b) Incentive Compensation. The Deferral Election with respect to Incentive
Compensation must be filed with the Committee by, and shall become irrevocable as of, December 31
(or such earlier date as specified by the Committee on the Deferral Election) of the calendar year
next preceding the first day of the Performance Period for which such Incentive Compensation would
otherwise be earned.

          (c) Performance-Based Compensation.

               (i) Notwithstanding anything contained in this Section 3.2 to the contrary, and only to the
extent permitted by the Committee, the Deferral Election with respect to Incentive Compensation
that constitutes Performance-Based Compensation must be filed with the Committee by, and shall
become irrevocable as of, the date that is 6 months before the end of the applicable Performance
Period (or such earlier date as specified by the Committee on the Deferral Election), provided that
in no event may such Deferral Election be made after such Incentive Compensation has become
“readily ascertainable” within the meaning of Section 409A of the Code.

               (ii) In order to make a Deferral Election under this Section 3.2(c), the Participant must
perform services continuously from the later of the beginning of the Performance Period or the date
the performance criteria are established through the date a Deferral Election becomes irrevocable
under this Section 3.2(c).

               (iii) A Deferral Election made under this Section 3.2(c) shall not apply to any portion of the
Performance-Based Compensation that is actually earned by a Participant regardless of satisfaction
of the performance criteria.

               (iv) To the extent permitted by the Committee, an Eligible Employee described in Section
3.1(a) shall be permitted to make a Deferral Election with respect to Performance-Based
Compensation in accordance with this Section 3.2(c) provided that the Eligible Employee satisfies
all of the other requirements of this Section.

8

 

               (d) Director Fees. The Deferral Election with respect to Director Fees must be
filed with the Committee by, and shall become irrevocable as of, December 31 (or such earlier date
as specified by the Committee on the Deferral Election) of the calendar year next preceding the
calendar year for which such Director Fees would otherwise be earned.

     3.3. Amount Deferred. A Participant shall designate on the Deferral Election the portion of
his Base Salary, Incentive Compensation or, if applicable, Director Fees that is to be deferred in
accordance with this Article III. Unless otherwise determined by the Committee, a Participant may
defer (in 1% increments) up to 50% of his Base Salary, up to 100% of his Director Fees and up to
100% of his Incentive Compensation for any Plan Year; provided, however, that the
Participant shall not be permitted to defer less than 1% of each of his Base Salary, Director Fees
or Incentive Compensation during any one calendar year or Performance Period, as the case may be,
and any such attempted deferral shall not be effective.

     3.4. Elections as to Time and Form of Payment

          (a) Time of Payment.

               (i) Allocation to Sub-Accounts. The Deferral Election shall contain the Participant’s
allocation of deferrals of Base Salary, Incentive Compensation and/or Director Fees among a
Retirement Sub-Account and, to the extent permitted by the Committee from time to time, one or more
In-Service Sub-Accounts. A Participant may designate, on the first Deferral Election that he
delivers to the Committee in which deferrals of Base Salary, Incentive Compensation or Director
Fees are credited to an In-Service Sub-Account, the year in which payments will commence to be paid
from that Sub-Account, which year must be at least two years after the year in which such Deferral
Election becomes irrevocable. The year designated on that first Deferral Election will apply to
all amounts credited to that In-Service Sub-Account under the Plan (including with respect to all
subsequent calendar years) unless changed in accordance with the rules of Section 6.1(c). A
Participant shall not be entitled to allocate deferrals of Base Salary, Incentive Compensation
and/or Director Fees to the Company Contribution Sub-Account.

               (ii) Default. To the extent that a Participant does not designate the Sub-Account to which
deferrals of Base Salary, Incentive Compensation or Director Fees shall be credited on a Deferral
Election as provided in this Section 3.4(a) (or such designation does not comply with the terms of
the Plan), such deferrals shall be credited to the Participant’s Retirement Sub-Account. Any
attempt to allocate deferrals of Base Salary or Incentive Compensation to an In-Service Sub-Account
with a payment date that is less than two years after the year in which the Deferral Election
becomes irrevocable shall be void, and such amounts shall instead be credited to the Participant’s
Retirement Sub-Account.

          (b) Form of Payment.

               (i) Retirement Sub-Account. A Participant may elect, on the first Deferral Election that he
delivers to the Committee pursuant to which deferrals of Base Salary, Incentive Compensation or
Director Fees are credited to the Retirement Sub-Account, to receive the Retirement Sub-Account in
cash in a single lump sum or in a number of approximately equal

9

 

annual installments over a specified period not exceeding ten years. The form of payment
designated on that first Deferral Election will apply to all amounts credited to the Retirement
Sub-Account under the Plan (including with respect to all subsequent calendar years) unless changed
in accordance with the rules of Section 6.1(c).

               (ii) In-Service Sub-Account. A Participant may elect, on the first Deferral Election that he
delivers to the Committee in which deferrals of Base Salary, Incentive Compensation or Director
Fees are credited to an In-Service Sub-Account, to receive the In-Service Sub-Account in cash in a
single lump sum or in a number of approximately equal annual installments over a specified period
not exceeding five years. The form of payment designated on that first Deferral Election will
apply to all amounts credited to that In-Service Sub-Account under the Plan (including with respect
to all subsequent calendar years) unless changed in accordance with the rules of Section 6.1(c). A
Participant may choose different forms of payment for each separate In-Service Sub-Account in
accordance with this Section 3.4(b).

     3.5. Duration and Cancellation of Deferral Elections.

          (a) Duration. Once irrevocable, a Deferral Election shall only be effective for the
calendar year or Performance Period with respect to which such election was timely filed with the
Committee. Notwithstanding the preceding sentence, the Committee may provide, in its sole
discretion, that any Deferral Elections shall apply from calendar year to calendar year, or
Performance Period to Performance Period, until terminated or modified prospectively by a
Participant in accordance with the terms of Section 3.2. Such “evergreen” Deferral Elections will
become effective with respect to an item of Base Salary, Incentive Compensation or Director Fees on
the date such election becomes irrevocable under Section 3.2. Except as provided in Section
3.4(b), a Deferral Election, once irrevocable, cannot be cancelled during a calendar year or
Performance Period.

          (b) Cancellation.

               (i) The Committee may, in its sole discretion, cancel a Participant’s Deferral Election where
such cancellation occurs by the later of the end of the Participant’s taxable year or the 15th day
of the third month following the date the Participant incurs a “disability.” For purposes of this
Section 3.5(b)(i), a disability refers to any medically determinable physical or mental impairment
resulting in the Participant’s inability to perform the duties of his or her position or any
substantially similar position, where such impairment can be expected to result in death or can be
expected to last for a continuous period of not less than six months.

               (ii) The Committee may, in its sole discretion, cancel a Participant’s Deferral Election due
to an Unforeseeable Emergency or a hardship distribution pursuant to Treasury Regulation Section
1.401(k)-1(d)(3).

               (iii) If a Participant’s Deferral Election is cancelled with respect to a particular calendar
year or Performance Period in accordance with this Section 3.5(b), he may make a new Deferral
Election for a subsequent calendar year or Performance Period, as the case may be, only in
accordance with Section 3.2.

10

 

     3.6. Vested Interest in Deferrals. Each Participant shall at all times have a fully vested
and nonforfeitable interest in his Retirement Sub-Account and his In-Service Sub-Account balance.

ARTICLE IV

COMPANY CONTRIBUTIONS

     4.1. Company Contributions. For each calendar year, any entity in the Affiliated Group, in
its sole discretion, may, but is not required to, credit any amount it desires to any Participant’s
Company Contribution Sub-Account (“Company Contributions”), subject to the following rules:

          (a) The amount of Company Contributions credited to a Participant may be smaller or larger
than an amount credited to any other Participant, and the amount credited to any Participant for a
year may be zero even though one or more Participants receive a Company Contribution for that year.

          (b) The Committee shall designate at the time a Company Contribution is credited to a
Participant’s Company Contribution Sub-Account whether the credit is a SERP Cash Account Credit, a
Retirement Savings Credit or a Matching Credit for purposes of the vesting provisions of Section
4.3.

          (c) A Participant shall become eligible to receive Matching Credits no earlier than the
calendar year immediately following the calendar year in which the Payment Election becomes
irrevocable as provided in Section 4.2(a).

          (d) Unless provided otherwise by the Committee, a Participant shall not be entitled to receive
a credit to his Company Contribution Sub-Account with respect to a calendar year unless he is
employed by the Affiliated Group on the day that such amount is credited to his Company
Contribution Sub-Account.

          (e) The Committee may not credit Company Contributions to a Participant’s Retirement
Sub-Account or In-Service Sub-Accounts.

     4.2. Payment Elections. Except as otherwise provided in Section 4.2(d), a Participant shall
file a Payment Election for his Company Contribution Sub-Account in accordance with the following
rules:

          (a) Timing; Irrevocability. The Payment Election with respect to the Company Contribution
Sub-Account shall be filed with the Committee by, and shall become irrevocable as of, December 31,
2007 (or such earlier date as specified by the Committee on the Payment Election). Once
irrevocable, and except as provided in Section 10.2, a Payment Election may only be changed in
accordance with Section 6.1(c).

          (b) Form of Payment. The Participant shall designate on the Payment Election whether to
receive the Company Contribution Sub-Account in cash in a single lump sum or in a number of
approximately equal annual installments over a specified period not exceeding ten years. The form
of payment designated on that first Payment Election will apply

11

 

to all amounts credited to the Company Contribution Sub-Account under the Plan (including with
respect to all subsequent calendar years) unless changed in accordance with the rules of Section
6.1(c). Notwithstanding the foregoing, any amounts credited to a Participant’s Company
Contribution Sub-Account pursuant to Section 4.8 of the Newell Rubbermaid Supplemental Executive
Retirement Plan (or its successor), and related earnings, shall be segregated from all other
amounts credited to the Company Contribution Sub-Account for bookkeeping account purposes and shall
be paid in a single lump sum notwithstanding any Payment Election or Subsequent Payment Election to
the contrary.

          (c) Default. To the extent that a Participant does not designate the form of payment of a
Company Contribution Sub-Account on a Payment Election as provided in Section 4.2(b) (or such
designation either does not comply with the terms of the Plan), such Sub-Account shall be paid in
cash in a single lump sum.

          (d) Special rules for Post-2008 Participants. Notwithstanding anything contained in the Plan
to the contrary, or any other plan, policy, practice or program, contract or agreement with the
Company or the Affiliated Group (unless otherwise specifically provided therein in a specific
reference to this Plan), a Participant whose Commencement Date is after December 31, 2008 (a
“Post-2008 Participant”) shall have no right to choose a form of payment for his Company
Contribution Sub-Account. Instead, the Company Contribution Sub-Account of a Post-2008 Participant
shall be paid in cash in a single lump sum.

     4.3. Vesting

          (a) SERP Cash Account Credits.

               (i) Except as provided Sections 4.3(a)(ii) and 4.3(a)(iii), a Participant shall have a vested
interest in any SERP Cash Account Credits (and any related earnings) only if he has six (6) Years
of Credited Service, at which time he shall acquire a ten percent (10%) vested interest therein.
Upon completion of each additional Year of Credited Service, a Participant shall acquire additional
vesting in the SERP Cash Account Credits (and any related earnings) according to the following
schedule:

	 	 	 	 	 
	Years of Credited Service	 	Vested Percentage in the SERP
	 	 	Cash Account Credits
	5 years or less

	 	 	0	%
	6 years but less than 7 years

	 	 	10	%
	7 years but less than 8 years

	 	 	20	%
	8 years but less than 9 years

	 	 	30	%
	9 years but less than 10 years

	 	 	40	%
	10 years but less than 11 years

	 	 	50	%
	11 years but less than 12 years

	 	 	60	%
	12 years but less than 13 years

	 	 	70	%
	13 years but less than 14 years

	 	 	80	%
	14 years but less than 15 years

	 	 	90	%
	15 or more years

	 	 	100	%

12

 

               (ii) A Participant shall become fully vested in his SERP Cash Account Credits (and any related
earnings) if he remains continuously employed by the Affiliated Group until the earliest to occur
of the following events: (i) the Participant’s 60th birthday; (ii) the Participant’s death; (iii)
the Participant’s “disability” (as defined in the long-term disability plan of the Affiliated
Group, as applicable to the Participant, or if no such plan exists, as determined by the
Committee); or (iv) a change in control (as defined in the Newell Rubbermaid Inc. 2003 Stock Plan,
as amended from time to time, or its successor).

               (iii) Subject to the provisions of this Section 4.3(a)(iii), a Participant shall also become
fully vested in his SERP Cash Account Credits (and any related earnings) if he remains continuously
and actively employed by the Affiliated Group until the date on which (i) he is at least age 55 and
(ii) the sum of his whole and fractional years of age and his whole years and fractional years of
“credited service” equals or exceeds 75. The term “credited service” means the amount of time the
Participant spent working for the Affiliated Group (including any predecessor company or business
acquired by the Affiliated Group, provided he was immediately employed by the Affiliated Group), as
determined by the Company. Fractional years of age and credited service shall be determined in
fully completed months, measured as each continuous period of 30 days of age or credited service.
Any Participant that vests in his SERP Cash Account Credits under this Section 4.3(a)(iii) must
comply with the following requirements:

	 	(1)	 	The Participant must execute and deliver to the Company an agreement, in a form
prescribed by the Company, that he or she will not directly or indirectly, individually
or on behalf of any person or entity, solicit or induce, or assist in any manner in the
solicitation or inducement of: (x) employees of the Affiliated Group; (y) customers of
the Affiliated Group to purchase from another person or entity products and services
that compete with those offered and provided by the Affiliated Group; and (z) suppliers
of the Affiliated Group to supply another person or entity providing competitive
products to the exclusion or detriment of the Affiliated Group.
	 
	 	(2)	 	The Participant must execute and deliver to the Company an agreement, in a form
prescribed by the Company, that he or she will not perform the same or substantially
the same job duties on behalf of a business or organization that competes with the
Affiliated Group.
	 
	 	(3)	 	The Participant must execute and deliver to the Company an agreement, in a form
prescribed by the Company, releasing all claims against the Affiliated Group.

Each agreement described in (1), (2) and (3) above must become effective and irrevocable in
accordance with its terms no later than the first business day of the seventh month following the
Participant’s Separation from Service. If the Participant fails to furnish any such agreement, or
if the agreement furnished by the Participant has not become effective and irrevocable by the first
business day of the seventh month after the Participant’s Separation from Service, the Participant
will not be entitled to any payment of the SERP Cash Account Credits that vested as provided in
this Section 4.3(a)(iii).

13

 

No Participant terminated by the Company for “Cause” shall be eligible to receive the SERP Cash
Account Credits that vested as provided in this Section 4.3(a)(iii). The term “Cause” means the
termination of the Participant due to unsatisfactory performance or conduct detrimental to the
Company, as solely determined by the Company.

          (b) Retirement Savings Credits. A Participant shall have a fully vested and
nonforfeitable interest in his Retirement Savings Credits (and any related earnings) if he remains
continuously employed by the Affiliated Group until the earliest to occur of the following: (i)
the date that the Participant has three (3) Years of Credited Service, (ii) the Participant’s
death, (iii) the Participant’s termination of employment due to disability (as defined in the
Newell Rubbermaid 401(k) Savings and Retirement Plan), or (iv) the Participant’s 65th birthday.

          (c) Matching Credits. Each Participant shall at all times have a fully vested and
nonforfeitable interest in his Matching Credits.

          (d) Forfeiture Events for SERP Cash Account Credits. Even if a Participant is vested
in his SERP Cash Account Credits under this Article, he shall cease to be vested, and thereafter
shall not be entitled to payment of any SERP Cash Account Credits (and related earnings), under any
following circumstance:

               (i) At any time because of any act or failure to act on his part which constitutes fraud,
misappropriation, theft or embezzlement of funds of the Company or a member of the Affiliated Group
or an intentional breach of fiduciary duty, including a breach of the Company or the Affiliated
Group’s Code of Business Conduct involving the Company or a member of the Affiliated Group.

               (ii) At any time he engages in competition with, or work for another business entity in
competition with, the Company or a member of the Affiliated Group in the areas that it serves.

               (iii) At any time he makes any unauthorized disclosure of any trade or business secrets or
privileged information acquired during his employment with the Company or any member of the
Affiliated Group.

               (iv) At any time he is convicted of a felony connected with his employment by the Company or
any member of the Affiliated Group.

               (v) At any time he made a material misrepresentation in any form or document provided by him
to or for the benefit of the Company or any member of the Affiliated Group.

In the event a Participant ceases to be vested under this Section, or fails to comply with the
agreements in Section 4.3(a)(iii)(1), (2) or (3), and he has received payment of SERP Cash Account
Credits from the Plan (including a lump sum payment), the Participant (or, if applicable, his
Beneficiary) shall repay to the Company the full amount of the SERP Cash Account Credits previously
received (with interest based on the interest rate(s) under the definition of “Actuarial
Assumptions” contained in the Newell Rubbermaid Supplemental Executive Retirement Plan)

14

 

within 30 days of written demand by the Committee. The foregoing written demand shall contain the
forfeiture event or agreement violated by the Participant, the factual circumstances supporting
such violation and his appeal rights under Section 7.3. Following repayment, the Participant may
appeal the forfeiture of his SERP Cash Account Credits pursuant to Section 7.3.

ARTICLE V

CREDITING OF GAINS, LOSSES AND EARNINGS TO ACCOUNTS

     To the extent provided by the Committee in its sole discretion, each Participant’s Account
will be credited with gains, losses and earnings based on investment directions made by the
Participant in accordance with investment deferral crediting options and procedures established
from time to time by the Committee. The Committee specifically retains the right in its sole
discretion to change the investment deferral crediting options and procedures from time to time.
By electing to defer any amount under the Plan (or by receiving or accepting any benefit under the
Plan), each Participant acknowledges and agrees that the Affiliated Group is not and shall not be
required to make any investment in connection with the Plan, nor is it required to follow the
Participant’s investment directions in any actual investment it may make or acquire in connection
with the Plan or in determining the amount of any actual or contingent liability or obligation of
the Company or any other member of the Affiliated Group thereunder or relating thereto. Any
amounts credited to a Participant’s Account with respect to which a Participant does not provide
investment direction shall be credited with gains, losses and earnings as if such amounts were
invested in an investment option to be selected by the Committee in its sole discretion.

ARTICLE VI

PAYMENTS

     6.1. Date of Payment of Sub-Accounts. Except as otherwise provided in this Article VI, a
Participant’s Sub-Accounts shall commence to be paid as follows:

          (a) Retirement Sub-Account; Company Contribution Sub-Account. The amounts credited to
a Participant’s Retirement Sub-Account and the vested amounts credited to a Participant’s Company
Contribution Sub-Account shall commence to be paid in the calendar year next following the calendar
year of the Participant’s Separation from Service in accordance with the following rules: (i) if
the Separation from Service occurs on or after January 1 of a calendar year but before July 1 of
the year, then payment shall commence on the first business day of January of the calendar year
next following the calendar year in which the Separation from Service occurs; and (ii) if the
Separation from Service occurs on or after July 1 of a calendar year, then payment shall commence
on the first business day of July of the calendar year next following the calendar year in which
the Separation from Service occurs. If a Participant Separates from Service on or after attaining
age 55, then the amounts credited to his Retirement Sub-Account shall be paid in the form of
payment selected by the Participant in accordance with Section 3.4(b) and the vested amounts
credited to the Company Contribution Sub-Account shall be paid in the form of payment selected by
the Participant in accordance with Section 4.2 (or, with respect to Post-2008 Participants, in a
single lump sum as provided in Section 4.2(d)). If a Participant Separates from Service prior to
attaining age 55, then the amounts credited to his Retirement Sub-Account and the vested amounts
credited to his Company Contribution Sub-

15

 

Account shall be paid in a single lump sum. Subject to Section 6.2, the Committee has the
discretion to establish administrative procedures for designating the date within the applicable
calendar year upon which payments shall commence.

          (b) In-Service Sub-Account.

               (i) In general, the vested amounts credited to a Participant’s In-Service Sub-Account shall
commence to be paid in January of the year specified by the Participant for such Sub-Account in
accordance with Section 3.4(a). Each In-Service Sub-Account shall be paid in the form of payment
selected by the Participant with respect to that In-Service Sub-Account in accordance with Section
3.4(b)(ii).

               (ii) If a Participant’s Separation from Service occurs after payment of his In-Service
Sub-Account has commenced, the remaining balance of his In-Service Sub-Account will continue to be
paid to him in accordance with the payment schedule that has already commenced. If, however, a
Participant’s Separation from Service occurs prior to the commencement of one or more In-Service
Sub-Accounts, then amounts credited to such In-Service Sub-Accounts shall immediately be
transferred to the Participant’s Retirement Sub-Account and payment of the transferred amounts
shall thereafter be governed by the terms and conditions applicable to the Retirement Sub-Account,
including, without limitation, Section 6.2.

          (c) Subsequent Payment Elections. A Participant may elect on a form provided by the
Committee to change the time and or form of payment with respect to one or more of his Sub-Accounts
(a “Subsequent Payment Election”). The Subsequent Payment Election shall become irrevocable upon
receipt by the Committee and shall be made in accordance with the following rules:

               (i) In General. The Subsequent Payment Election may not take effect until at least twelve
(12) months after the date on which it is accepted by the Committee. The Subsequent Payment
Election most recently accepted by the Committee and that satisfies the requirements of this
Section 6.1(c) shall govern the payout of the Sub-Accounts notwithstanding anything contained in
Section 6.1(a) or (b) to the contrary.

               (ii) Retirement Sub-Account; Company Contribution Sub-Account. A Participant may make a
one-time election to change the form of payment of his Retirement Sub-Account and a one-time
election to change the form of payment of his Company Contribution Sub-Account to a form otherwise
permitted under the Plan. Except in the event of the death or Unforeseeable Emergency of the
Participant, the payment of such Sub-Account will be delayed until the fifth (5th) anniversary of
the first day of the calendar year within which the Sub-Account would otherwise have been paid
under the Plan if such Subsequent Payment Election had not been made (or, in the case of
installment payments, which are treated as a single payment for purposes of this Section, on the
fifth (5th) anniversary of the first day of the calendar year within which the first installment
payment was scheduled to be made).

               (iii) In-Service Sub-Account. A Participant may make one or more elections to delay the
payment date or change the form of payment of one or more In-Service Sub-Account(s) to a payment
date or form permitted for In-Service Sub-Accounts under the

16

 

Plan. Such Subsequent Payment Election must be filed with the Committee at least twelve (12)
months prior to the first day of the calendar year within which the Sub-Account would otherwise
have been paid under the Plan (or, in the case of installment payments, at least twelve (12) months
from the first day of the calendar year within which the first installment payment was scheduled to
be made). On such Subsequent Payment Election, the Participant must delay the payment date for a
period of at least five (5) years after the first day of the calendar year within which the
Sub-Account would otherwise have been paid under the Plan (or, in the case of installment payments,
at least five (5) years from the first day of the calendar year within which the first installment
payment was scheduled to be made).

               (iv) Acceleration Prohibited. The Committee shall disregard any Subsequent Payment Election
by a Participant to the extent such election would result in an acceleration of the time or
schedule of any payment or amount scheduled to be paid under the Plan within the meaning of Section
409A of the Code.

          (d) Calculation of Installment Payments. In the event that a Sub-Account is paid in
installments: (i) the first installment shall commence on the date specified in Section 6.1
(subject to Section 6.2), and each subsequent installment shall be paid on the commencement
anniversary date until the Sub-Account has been fully paid; (ii) the amount of each installment
shall equal the quotient obtained by dividing the Participant’s vested Sub-Account balance as of
the end of the month immediately preceding the month of such installment payment by the number of
installment payments remaining to be paid at the time of the calculation; and (iii) the amount of
such Sub-Account remaining unpaid shall continue to be credited with gains, losses and earnings as
provided in Article V. By way of example, if the Participant elects to receive payments of a
Sub-Account in equal annual installments over a period of ten (10) years, the first payment shall
equal 1/10 of the vested Sub-Account balance, calculated as described in this Section 6.1(d). The
following year, the payment shall be 1/9 of the vested Sub-Account balance, calculated as described
in this Section 6.1(d). Notwithstanding the foregoing, in the event that a Sub-Account is paid in
installments and the balance of the remaining amounts to be paid in installments falls below
$25,000 (as of the date that the installment payments commence to be paid or on any measurement
date thereafter as set forth in (ii) above), then the remaining installments shall be paid to the
Participant in a single lump sum within 30 days.

     6.2. Mandatory Six-Month Delay. Except as otherwise provided in Sections 6.6(a), 6.6(b) and
6.6(c), in no event may payments from a Retirement Sub-Account or Company Contribution Sub-Account
commence prior to the first business day of the seventh month following the Participant’s
Separation from Service (or if earlier, upon the Participant’s death).

     6.3. Death of Participant.

          (a) Each Participant shall file a Beneficiary Designation Form with the Committee at the time
the Participant files an initial Deferral Election. A Participant’s Beneficiary Designation Form
may be changed at any time prior to his death by the execution and delivery of a new Beneficiary
Designation Form. The Beneficiary Designation Form on file with the Committee that bears the latest
date at the time of the Participant’s death shall govern. If a Participant fails to properly
designate a Beneficiary in accordance with this Section 6.3(a), then his Beneficiary shall be his
estate.

17

 

          (b) In the event of the Participant’s death, the remaining amount of the Participant’s vested
Sub-Accounts shall be paid to the Beneficiary or Beneficiaries designated on a Beneficiary
Designation Form, in accordance with the following rules: (i) if a Participant dies after payment
of a Sub-Account has commenced, the remaining balance of such Sub-Account will continue to be paid
to his Beneficiary or Beneficiaries in accordance with the payment schedule that has already
commenced; and (ii) if a Participant dies before payments from a Sub-Account have commenced, such
Sub-Account will be paid to his Beneficiary or Beneficiaries in accordance with the rules of
Section 6.1.

     6.4. Change in Control. Notwithstanding any Payment Election to the contrary, if a Change in
Control occurs and a Participant incurs a Separation from Service during the period beginning on
the date of the Change in Control and ending on the second anniversary of the Change in Control,
then the remaining amount of the Participant’s vested Account shall be paid to the Participant or
his Beneficiary in a single lump sum on the first business day of the seventh month following the
Participant’s Separation from Service (or if earlier, upon the Participant’s death).

     6.5. Withdrawal Due to Unforeseeable Emergency. A Participant shall have the right to
request, on a form provided by the Committee, an accelerated payment of all or a portion of his
Account in a lump sum if he experiences an Unforeseeable Emergency. The Committee shall have the
sole discretion to determine whether to grant such a request and the amount to be paid pursuant to
such request.

          (a) Determination of Unforeseeable Emergency. Whether a Participant is faced with an
unforeseeable emergency permitting a payment under this Section 6.5 is to be determined based on
the relevant facts and circumstances of each case, but, in any case, a payment on account of an
Unforeseeable Emergency may not be made to the extent that such emergency is or may be relieved
through reimbursement or compensation from insurance or otherwise, by liquidation of the
Participant’s assets, to the extent the liquidation of such assets would not cause severe financial
hardship, or by cessation of deferrals under the Plan. Payments because of an Unforeseeable
Emergency must be limited to the amount reasonably necessary to satisfy the emergency need (which
may include amounts necessary to pay any Federal, state, local, or foreign income taxes or
penalties reasonably anticipated to result from the payment). Determinations of amounts reasonably
necessary to satisfy the emergency need must take into account any additional compensation that is
available if the Plan provides for cancellation of a Deferral Election upon a payment due to an
Unforeseeable Emergency. However, the determination of amounts reasonably necessary to satisfy
the emergency need is not required to take into account any additional compensation that due to the
Unforeseeable Emergency is available under another nonqualified deferred compensation plan but has
not actually been paid, or that is available due to the Unforeseeable Emergency under another plan
that would provide for deferred compensation except due to the application of the effective date
provisions of Section 409A of the Code.

          (b) Payment of Account. Payment shall be made within thirty (30) days following the
determination by the Committee that a withdrawal will be permitted under this Section 6.5, or such
later date as may be required under Section 6.2.

18

 

     6.6. Discretionary Acceleration of Payments. To the extent permitted by Section 409A of the
Code, the Committee may, in its sole discretion, accelerate the time or schedule of a payment under
the Plan as provided in this Section. The provisions of this Section are intended to comply with
the exception to accelerated payments under Treasury Regulation Section 1.409A-3(j) and shall be
interpreted and administered accordingly.

          (a) Domestic Relations Orders. The Committee may, in its sole discretion, accelerate
the time or schedule of a payment under the Plan to an individual other than the Participant as may
be necessary to fulfill a domestic relations order (as defined in Section 414(p)(1)(B) of the
Code).

          (b) Conflicts of Interest. The Committee may, in its sole discretion, provide for the
acceleration of the time or schedule of a payment under the Plan to the extent necessary for any
Federal officer or employee in the executive branch to comply with an ethics agreement with the
Federal government. Additionally, the Committee may, in its sole discretion, provide for the
acceleration of the time or schedule of a payment under the Plan to the extent reasonably necessary
to avoid the violation of an applicable Federal, state, local, or foreign ethics law or conflicts
of interest law (including where such payment is reasonably necessary to permit the Participant to
participate in activities in the normal course of his or her position in which the Participant
would otherwise not be able to participate under an applicable rule).

          (c) Employment Taxes. The Committee may, in its sole discretion, provide for the
acceleration of the time or schedule of a payment under the Plan to pay the Federal Insurance
Contributions Act (FICA) tax imposed under Sections 3101, 3121(a), and 3121(v)(2) of the Code, or
the Railroad Retirement Act (RRTA) tax imposed under Sections 3201, 3211, 3231(e)(1), and
3231(e)(8) of the Code, where applicable, on compensation deferred under the Plan (the FICA or RRTA
amount). Additionally, the Committee may, in its sole discretion, provide for the acceleration of
the time or schedule of a payment, to pay the income tax at source on wages imposed under Section
3401 of the Code or the corresponding withholding provisions of applicable state, local, or foreign
tax laws as a result of the payment of the FICA or RRTA amount, and to pay the additional income
tax at source on wages attributable to the pyramiding Section 3401 of the Code wages and taxes.
However, the total payment under this acceleration provision must not exceed the aggregate of the
FICA or RRTA amount, and the income tax withholding related to such FICA or RRTA amount.

          (d) Limited Cash-Outs. Subject to Section 6.2, the Committee may, in its sole
discretion, require a mandatory lump sum payment of amounts deferred under the Plan that do not
exceed the applicable dollar amount under Section 402(g)(1)(B) of the Code, provided that the
payment results in the termination and liquidation of the entirety of the Participant’s interest
under the Plan, including all agreements, methods, programs, or other arrangements with respect to
which deferrals of compensation are treated as having been deferred under a single nonqualified
deferred compensation plan under Section 409A of the Code.

          (e) Payment Upon Income Inclusion Under Section 409A. Subject to Section 6.2, the
Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a
payment under the Plan at any time the Plan fails to meet the requirements of

19

 

Section 409A of the Code. The payment may not exceed the amount required to be included in
income as a result of the failure to comply with the requirements of Section 409A of the Code.

          (f) Certain Payments to Avoid a Nonallocation Year Under Section 409(p). Subject to
Section 6.2, the Committee may, in its sole discretion, provide for the acceleration of the time or
schedule of a payment under the Plan to prevent the occurrence of a nonallocation year (within the
meaning of Section 409(p)(3) of the Code) in the plan year of an employee stock ownership plan next
following the plan year in which such payment is made, provided that the amount paid may not exceed
125 percent of the minimum amount of payment necessary to avoid the occurrence of a nonallocation
year.

          (g) Payment of State, Local, or Foreign Taxes. Subject to Section 6.2, the Committee
may, in its sole discretion, provide for the acceleration of the time or schedule of a payment
under the Plan to reflect payment of state, local, or foreign tax obligations arising from
participation in the Plan that apply to an amount deferred under the Plan before the amount is paid
or made available to the participant (the state, local, or foreign tax amount). Such payment may
not exceed the amount of such taxes due as a result of participation in the Plan. The payment may
be made in the form of withholding pursuant to provisions of applicable state, local, or foreign
law or by payment directly to the Participant. Additionally, the Committee may, in its sole
discretion, provide for the acceleration of the time or schedule of a payment under the Plan to pay
the income tax at source on wages imposed under Section 3401 of the Code as a result of such
payment and to pay the additional income tax at source on wages imposed under Section 3401 of the
Code attributable to such additional wages and taxes. However, the total payment under this
acceleration provision must not exceed the aggregate of the state, local, and foreign tax amount,
and the income tax withholding related to such state, local, and foreign tax amount.

          (h) Certain Offsets. Subject to Section 6.2, the Committee may, in its sole
discretion, provide for the acceleration of the time or schedule of a payment under the Plan as
satisfaction of a debt of the Participant to the Company (or any entity which would be considered
to be a single employer with the Company under Section 414(b) or Section 414(c) of the Code), where
such debt is incurred in the ordinary course of the service relationship between the Company (or
any entity which would be considered to be a single employer with the Company under Section 414(b)
or Section 414(c) of the Code) and the Participant, the entire amount of reduction in any of the
taxable years of the Company (or any entity which would be considered to be a single employer with
the Company under Section 414(b) or Section 414(c) of the Code) does not exceed $5,000, and the
reduction is made at the same time and in the same amount as the debt otherwise would have been due
and collected from the Participant.

          (i) Bona Fide Disputes as to a Right to a Payment. Subject to Section 6.2, the
Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a
payment under the Plan where such payments occur as part of a settlement between the Participant
and the Company (or any entity which would be considered to be a single employer with the Company
under Section 414(b) or Section 414(c) of the Code) of an arm’s length, bona fide dispute as to the
Participant’s right to the deferred amount.

20

 

          (j) Plan Terminations and Liquidations. Subject to Section 6.2, the Committee may, in
its sole discretion, provide for the acceleration of the time or schedule of a payment under the
Plan as provided in Section 8.2.

          (k) Other Events and Conditions. Subject to Section 6.2, a payment may be accelerated
upon such other events and conditions as the Internal Revenue Service may prescribe in generally
applicable guidance published in the Internal Revenue Bulletin.

Except as otherwise specifically provided in this Plan, including but not limited to Section
3.5(b), Section 6.1(c), this Section 6.6 and Section 8.2, the Committee may not accelerate the time
or schedule of any payment or amount scheduled to be paid under the Plan within the meaning of
Section 409A of the Code.

     6.7. Delay of Payments. To the extent permitted under Section 409A of the Code, the Committee
may, in its sole discretion, delay payment under any of the following circumstances, provided that
the Committee treats all payments to similarly situated Participants on a reasonably consistent
basis:

          (a) Payments Subject to Section 162(m). A payment may be delayed to the extent that
the Committee reasonably anticipates that if the payment were made as scheduled, the Company’s
deduction with respect to such payment would not be permitted due to the application of Section
162(m) of the Code. If a payment is delayed pursuant to this Section 6.7(a), then the payment must
be made either (i) during the Company’s first taxable year in which the Committee reasonably
anticipates, or should reasonably anticipate, that if the payment is made during such year, the
deduction of such payment will not be barred by application of Section 162(m) of the Code, or (ii)
during the period beginning with the first business day of the seventh month following the
Participant’s Separation from Service (the “six month anniversary”) and ending on the later of (x)
the last day of the taxable year of the Company in which the six month anniversary occurs or (y)
the 15th day of the third month following the six month anniversary. Where any scheduled payment
to a specific Participant in a Company’s taxable year is delayed in accordance with this paragraph,
all scheduled payments to that Participant that could be delayed in accordance with this paragraph
must also be delayed. The Committee may not provide the Participant an election with respect to
the timing of the payment under this Section 6.7(a). For purposes of this Section 6.7(a), the term
Company includes any entity which would be considered to be a single employer with the Company
under Section 414(b) or Section 414(c) of the Code.

          (b) Federal Securities Laws or Other Applicable Law. A Payment may be delayed where
the Committee reasonably anticipates that the making of the payment will violate federal securities
laws or other applicable law; provided that the delayed payment is made at the earliest date at
which the Committee reasonably anticipates that the making of the payment will not cause such
violation. For purposes of the preceding sentence, the making of a payment that would cause
inclusion in gross income or the application of any penalty provision or other provision of the
Code is not treated as a violation of applicable law.

21

 

          (c) Other Events and Conditions. A payment may be delayed upon such other events and
conditions as the Internal Revenue Service may prescribe in generally applicable guidance published
in the Internal Revenue Bulletin.

     6.8. Actual Date of Payment. To the extent permitted by Section 409A of the Code, the
Committee may delay payment in the event that it is not administratively possible to make payment
on the date (or within the periods) specified in this Article VI, or the making of the payment
would jeopardize the ability of the Company (or any entity which would be considered to be a single
employer with the Company under Section 414(b) or Section 414(c) of the Code) to continue as a
going concern. Notwithstanding the foregoing, payment must be made no later than the latest
possible date permitted under Section 409A of the Code.

     6.9. Discharge of Obligations. The payment to a Participant or his Beneficiary of a his
Sub-Account in a single lump sum or the number of installments elected by the Participant pursuant
to this Article VI shall discharge all obligations of the Affiliated Group to such Participant or
Beneficiary under the Plan with respect to that Sub-Account.

ARTICLE VII

ADMINISTRATION

     7.1. General. The Company, through the Committee, shall be responsible for the general
administration of the Plan and for carrying out the provisions hereof. In general, the Committee
shall have the full power, discretion and authority to carry out the provisions of the Plan; in
particular, the Committee shall have full discretion to (a) interpret all provisions of the Plan,
(b) resolve all questions relating to eligibility for participation in the Plan and the amount in
the Account of any Participant and all questions pertaining to claims for benefits and procedures
for claim review, (c) resolve all other questions arising under the Plan, including any factual
questions and questions of construction, (d) determine all claims for benefits, and (e) 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 Committee hereunder shall be final, conclusive, and binding on
all persons, including the Company, its shareholders, the other members of the Affiliated Group,
employees, Participants, and their estates and Beneficiaries.

     7.2. Compliance with Section 409A of the Code.

          (a) 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 paid or
made available to Participants or Beneficiaries. This Plan shall be construed, administered, and
governed in a manner that effects such intent, and the Committee shall not take any action that
would be inconsistent with such intent.

          (b) Although the Committee shall use its best efforts to avoid the imposition of taxation,
interest and penalties under Section 409A of the Code, the tax treatment of deferrals under this
Plan is not warranted or guaranteed. Neither the Company, the other members of the Affiliated
Group, the Board, nor the Committee (nor its designee) shall be held liable for any

22

 

taxes, interest, penalties or other monetary amounts owed by any Participant, Beneficiary or
other taxpayer as a result of the Plan.

          (c) 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. 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 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.

     7.3. Claims Procedure.

          (a) Any Participant or Beneficiary (a “Claimant”) who believes that he is entitled to a
benefit under the Plan which he has not received may submit a claim to the Committee. Claims for
benefits under this Plan shall be made in writing, signed by the Claimant or his authorized
representative, and must specify the basis of the Claimant’s complaint and the facts upon which he
relies in making such claim. A claim shall be deemed filed when received by the Committee.

          (b) In the event a claim for benefits is wholly or partially denied by the Committee, the
Committee shall notify the Claimant in writing of the denial of the claim within a reasonable
period of time, but not later than ninety (90) days after receipt of the claim, unless special
circumstances require an extension of time for processing, in which case the ninety (90) day period
may be extended to 180 days. The Committee shall notify the Claimant in writing of any such
extension. A notice of denial shall be written in a manner reasonably calculated to be understood
by the Claimant, and shall contain (a) the specific reason or reasons for denial of the claim; (b)
a specific reference to the pertinent Plan provisions upon which the denial is based; (c) a
description of any additional material or information necessary for the Claimant to perfect the
claim, together with an explanation of why such material or information is necessary; and (d) an
explanation of the Plan’s review procedure.

          (c) Within sixty (60) days of the receipt by the Claimant of the written notice of denial of
the claim, the Claimant may appeal by filing with the Committee a written request for a full and
fair review of the denial of the Claimant’s claim for benefits. Appeal requests under this Plan
shall be made in writing, signed by the Claimant or his authorized representative, and must specify
the basis of the Claimant’s complaint and the facts upon which he relies in making such appeal. An
appeal request shall be deemed filed when received by the Committee.

          (d) The Committee shall render a decision on the claim appeal promptly, but not later than
sixty (60) days after the receipt of the Claimant’s request for review, unless special
circumstances (such as the need to hold a hearing, if necessary), require an extension of time for
processing, in which case the sixty (60) day period may be extended to 120 days. The Committee
shall notify the Claimant in writing of any such extension. The decision upon review shall be
written in a manner reasonably calculated to be understood by the Claimant, and shall contain (a)
the specific reason or reasons for denial of the claim; (b) a specific reference to the pertinent
Plan provisions upon which the denial is based; (c) a statement that the Claimant shall

23

 

be provided, upon request and free of charge, reasonable access to, and copies of, all
documents, records, and other information relevant to the claim for benefits; and (d) a statement
of the Claimant’s right to bring an action under Section 502(a) of ERISA, if the adverse benefit
determination is sustained on appeal.

          (e) No lawsuit by a Claimant may be filed prior to exhausting the Plan’s administrative appeal
process. Any lawsuit must be filed no later than the earlier of one year after the Claimant’s
claim for benefit was denied or the date the cause of action first arose.

ARTICLE VIII

AMENDMENT AND TERMINATION

     8.1. Amendment. The Company reserves the right to amend, terminate or freeze the Plan, in
whole or in part, at any time by action of the Board. Moreover, the Committee may amend the Plan
at any time in its sole discretion to ensure that the Plan complies with the requirements of
Section 409A of the Code or other applicable law; provided, however, that such
amendments, in the aggregate, may not materially increase the benefit costs of the Plan to the
Company. In no event shall any such action by the Board or Committee adversely affect any
Participant or Beneficiary who has an Account (to the extent vested), or result in any change in
the timing or manner of payment of the amount of any Account (except as otherwise permitted under
the Plan), without the consent of the Participant or Beneficiary, unless the Board or the
Committee, as the case may be, determines in good faith that such action is necessary to ensure
compliance with Section 409A of the Code. To the extent permitted by Section 409A of the Code, the
Committee may, in its sole discretion, modify the rules applicable to Deferral Elections, Payment
Elections and Subsequent Payment Elections to the extent necessary to satisfy the requirements of
the Uniformed Service Employment and Reemployment Rights Act of 1994, as amended, 38 U.S.C.
4301-4334.

     8.2. Payments Upon Termination of Plan. In the event that the Plan is terminated, the vested
amounts allocated to a Participant’s Sub-Accounts shall be distributed to the Participant or his
Beneficiary on the dates on which the Participant or his Beneficiary would otherwise receive
payments hereunder without regard to the termination of the Plan. Notwithstanding the preceding
sentence, and to the extent permitted under Section 409A of the Code, the Company, by action taken
by its Board or its designee, may terminate the Plan and accelerate the payment of the vested
Account subject to the following conditions and Section 6.2:

          (a) Company’s Discretion. The termination does not occur “proximate to a downturn in
the financial health” of the Company (within the meaning of Treasury Regulation Section
1.409A-3(j)(4)(ix)), and all other arrangements required to be aggregated with the Plan under
Section 409A of the Code are also terminated and liquidated. In such event, the entire vested
Account shall be paid at the time and pursuant to the schedule specified by the Committee, so long
as all payments are required to be made no earlier than twelve (12) months, and no later than
twenty-four (24) months, after the date the Board or its designee irrevocably approves the
termination of the Plan. Notwithstanding the foregoing, any payment that would otherwise be paid
pursuant to the terms of the Plan prior to the twelve (12) month anniversary of the date that the
Board or its designee irrevocably approves the termination shall continue to be

24

 

paid in accordance with the terms of the Plan. If the Plan is terminated pursuant to this
Section 8.2(a), the Company shall be prohibited from adopting a new plan or arrangement that would
be aggregated with this Plan under Section 409A of the Code within three (3) years following the
date that the Board or its designee irrevocably approves the termination and liquidation of the
Plan.

          (b) Change in Control. The termination occurs pursuant to an irrevocable action of
the Board or its designee that is taken within the thirty (30) days preceding or the twelve (12)
months following a Change in Control, and all other plans sponsored by the Company (determined
immediately after the Change in Control) that are required to be aggregated with this Plan under
Section 409A of the Code are also terminated with respect to each participant therein who
experienced the Change in Control (“Change in Control Participant”). In such event, the vested
Account of each Participant under the Plan and each Change in Control Participant under all
aggregated plans shall be paid at the time and pursuant to the schedule specified by the Committee,
so long as all payments are required to be made no later than twelve (12) months after the date
that the Board or its designee irrevocably approves the termination.

          (c) Dissolution; Bankruptcy Court Order. The termination occurs within twelve (12)
months after a corporate dissolution taxed under Section 331 of the Code, or with the approval of a
bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A). In such event, the vested Account of each
Participant shall be paid at the time and pursuant to the schedule specified by the Committee, so
long as all payments are required to be made by the latest of: (A) the end of the calendar year in
which the Plan termination occurs, (B) the first calendar year in which the amount is no longer
subject to a substantial risk of forfeiture, or (C) the first calendar year in which payment is
administratively practicable.

          (d) Transition Relief. The termination occurs during calendar year 2008 pursuant to
the terms and conditions of the transition relief set forth in Notice 2007-86 and the applicable
proposed and final Treasury Regulations issued under Section 409A of the Code. In such event, the
vested Account of each Participant shall be paid at the time and pursuant to the schedule specified
by the Committee, subject to the following rules: (i) any payment that would otherwise be paid
during 2008 pursuant to the terms of the Plan shall be paid in accordance with such terms, and (ii)
any payment that would otherwise be paid after 2009 pursuant to the terms of the Plan shall not be
accelerated into 2008.

          (e) Other Events. The termination occurs upon such other events and conditions as the
Internal Revenue Service may prescribe in generally applicable guidance published in the Internal
Revenue Bulletin.

The provisions of paragraphs (a), (b), (c) and (e) of this Section 8.2 are intended to comply with
the exception to accelerated payments under Treasury Regulation Section 1.409A-3(j)(4)(ix) and
shall be interpreted and administered accordingly. The term “Company” as used in paragraphs (a)
and (b) of this Section 8.2 shall include the Company and any entity which would be considered to
be a single employer with the Company under Code Sections 414(b) or Section 414(c).

25

 

ARTICLE IX

MISCELLANEOUS

     9.1. Non-alienation of Deferred Compensation. Except as permitted by the Plan, 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 and subject to
Section 6.6(a), the Committee shall honor a judgment, order or decree from a state domestic
relations court which requires the payment of part or all of a Participant’s or Beneficiary’s
interest under this Plan to an “alternate payee” as defined in Section 414(p) of the Code.

     9.2. Participation by Employees of Affiliated Group Members. Any member of the Affiliated
Group may, by action of its board of directors or equivalent governing body and with the consent of
the Company’s Board of Directors, adopt the Plan; provided that the Company’s Board of Directors
may waive the requirement that such board of directors or equivalent governing body effect such
adoption. By its adoption of or participation in the Plan, the adopting member of the Affiliated
Group shall be deemed to appoint the Company its exclusive agent to exercise on its behalf all of
the power and authority conferred by the Plan upon the Company and accept the delegation to the
Committee of all the power and authority conferred upon it by the Plan. The authority of the
Company to act as such agent shall continue until the Plan is terminated as to the participating
affiliate. An Eligible Employee who is employed by a member of the Affiliated Group and who elects
to participate in the Plan shall participate on the same basis as an Eligible Employee of the
Company. The Account of a Participant employed by a participating member of the Affiliated Group
shall be paid in accordance with the Plan solely by such member to the extent attributable to Base
Salary, Incentive Compensation or Director Fees that would have been paid by such participating
member in the absence of deferral pursuant to the Plan, unless the Board otherwise determines that
the Company shall be the obligor.

     9.3. Interest of Participant.

          (a) The obligation of the Company and any other participating member of the Affiliated Group
under the Plan to make payment of amounts reflected in an Account merely constitutes the unsecured
promise of the Company (or, if applicable, the participating members of the Affiliated Group) to
make payments from their general assets and no Participant or Beneficiary shall have any interest
in, or a lien or prior claim upon, any property of the Affiliated Group. Nothing in the Plan shall
be construed as guaranteeing future employment to Eligible Employees. It is the intention of the
Affiliated Group that the Plan be unfunded for tax purposes and for purposes of Title I of ERISA.
The Company may create a trust to hold funds to be used in payment of its and the Affiliated
Group’s obligations under the Plan, and may fund such trust; provided, however, that any funds
contained therein shall remain liable for the claims of the general creditors of the Company and
the other participating members of the Affiliated Group.

26

 

          (b) In the event that, in the sole discretion of the Committee, the Company and/or the other
members of the Affiliated Group purchases an insurance policy or policies insuring the life of any
Participant (or any other property) to allow the Company and/or the other members of the Affiliated
Group to recover the cost of providing the benefits, in whole or in part, hereunder, neither the
Participants nor their Beneficiaries or other distributees shall have nor acquire any rights
whatsoever therein or in the proceeds therefrom. The Company and/or the other members of the
Affiliated Group shall be the sole owner and beneficiary of any such policy or policies and, as
such, shall possess and may exercise all incidents of ownership therein. A Participant’s
participation in the underwriting or other steps necessary to acquire such policy or policies may
be required by the Company and, if required, shall not be a suggestion of any beneficial interest
in such policy or policies to such Participant or any other person.

     9.4. Claims of Other Persons. The provisions of the Plan shall in no event be construed as
giving any other person, firm or corporation any legal or equitable right as against the Affiliated
Group or the officers, employees or directors of the Affiliated Group, except any such rights as
are specifically provided for in the Plan or are hereafter created in accordance with the terms and
provisions of the Plan.

     9.5. Severability. The invalidity and unenforceability of any particular provision of the
Plan shall not affect any other provision hereof, and the Plan shall be construed in all respects
as if such invalid or unenforceable provision were omitted.

     9.6. 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.

     9.7. Relationship to Other Plans. The Plan is intended to serve the purposes of and to be
consistent with any incentive compensation plan approved by the Committee for purposes of the Plan.

     9.8. Successors. The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the
business and/or assets of the Company expressly to assume this Plan. 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.

     9.9. Withholding of Taxes. Subject to Section 6.6, to the extent required by the law in
effect at the time payments are made, the Affiliated Group may withhold or cause to be withheld
from any amounts deferred or payable under the Plan all federal, state, local and other taxes as
shall be legally required. The Affiliated Group shall have the right in its sole discretion to (i)
require a Participant to pay or provide for payment of the amount of any taxes that the Affiliated
Group may be required to withhold with respect to amounts that the Company credits to a
Participant’s Account or (ii) deduct from any amount of salary, bonus, incentive compensation or
other payment otherwise payable in cash to the Participant the amount of any

27

 

taxes that the Company may be required to withhold with respect to amounts that the Company
credits to a Participant’s Account.

     9.10. Electronic or Other Media. Notwithstanding any other provision of the Plan to the
contrary, including any provision that requires the use of a written instrument, the Committee may
establish procedures for the use of electronic or other media in communications and transactions
between the Plan or the Committee and Participants and Beneficiaries. Electronic or other media
may include, but are not limited to, e-mail, the Internet, intranet systems and automated
telephonic response systems.

     9.11. Headings; Interpretation. 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.

     9.12. Participants Deemed to Accept Plan. By accepting any benefit under the Plan, each
Participant and each person claiming under or through any such Participant shall be conclusively
deemed to have indicated his acceptance and ratification of, and consent to, all of the terms and
conditions of the Plan and any action taken under the Plan by the Board, the Committee or the
Company or the other members of the Affiliated Group, in any case in accordance with the terms and
conditions of the Plan.

ARTICLE X

PRIOR PLAN AND TRANSITION RULES

     10.1. Prior Plan.

          (a) Any “amounts deferred” (within the meaning of Section 409A of the Code) in taxable years
beginning before January 1, 2005 and credited to either a retirement sub-account or an in-service
sub-account under the Prior Plan, and any earnings thereon, shall be governed by the terms of the
Prior Plan as in effect on October 3, 2004, and it is intended that such amounts and any earnings
thereon be exempt from the application of Section 409A of the Code. Immediately prior to the
Effective Date, the Prior Plan shall be frozen, and neither the Company, its Affiliated Group nor
any individual shall make or permit to be made any additional contributions or deferrals under the
Prior Plan (other than earnings) on or after the Effective Date. Nothing contained herein is
intended to materially enhance a benefit or right existing under the Prior Plan as of October 3,
2004 or add a new material benefit or right to such Prior Plan.

          (b) Any “amounts deferred” (within the meaning of Section 409A of the Code) in taxable years
beginning on or after January 1, 2005 and credited to either a retirement sub-account or an
in-service sub-account under the Prior Plan, and any earnings thereon, shall be governed by the
terms and conditions of the Plan, and it is intended that such amounts and any earnings thereon be
subject to the application of Section 409A of the Code.

          (c) Any amounts credited to a SERP cash sub-account under the Prior Plan (regardless of when
credited), and any earnings thereon, shall be governed by the terms and conditions of the Plan and
considered SERP Cash Account credits for purposes of the vesting

28

 

provisions of Section 4.3. It is intended that such amounts and any earnings thereon be
subject to the application of Section 409A of the Code.

          (d) The amounts described in Sections 10.1(b) and (c) shall be the Assumed Amounts. The
Committee shall transfer all of the Assumed Amounts from the Prior Plan to this Plan and credit
those amounts to the appropriate Sub-Accounts under this Plan, as selected by the Committee in its
sole discretion, on or before December 31, 2007. As a result of such transfer and crediting, all
of the Company’s obligations and Participant’s rights with respect to the Assumed Amounts under the
Prior Plan shall automatically be extinguished and become obligations and rights under this Plan
without further action.

     10.2. Transition Relief for Payment Elections. A Participant designated by the Committee may,
no later than a date specified by the Committee (provided that such date occurs no later than
December 31, 2008) elect on a form provided by the Committee to (i) change the date of payment of
his Sub-Accounts to a date otherwise permitted for that Sub-Account under the Plan; or (ii) change
the form of payment of his Sub-Accounts to a form of payment otherwise permitted for that
Sub-Account under the Plan, without complying with the special timing requirements of Section
6.1(c). The Committee may also take any action that it deems necessary, in its sole discretion,
to amend prior Payment Elections of a Participant, without the Participant’s consent, to conform
such elections to the terms of this Plan. A Participant designated by the Committee may, no later
than a date specified by the Committee (provided that such date occurs no later than December 31,
2008) elect on a form provided by the Committee to defer any Incentive Compensation designated by
the Committee in its sole discretion without complying with the special timing requirements for
Deferral Elections under Article III. Any change or election described in this Section 10.2 shall
be subject to such terms and conditions as the Committee may specify in its sole discretion. This
Section 10.2 is intended to comply with the requirements of Notice 2007-86 and the applicable
proposed and final Treasury Regulations issued under Section 409A of the Code and shall be
interpreted in a manner consistent with such intent.

EXECUTED on this 21st day of December, 2007

	 	 	 	 	 
	 	NEWELL RUBBERMAID INC.

 	 
	 	By:  	/s/ Jim Sweet
 	 
	 	 	Jim Sweet, Executive Vice President
—  	 
	 	 	Human Resources (CHRO) 	 
	 

29exv10w7

 

Exhibit 10.7

Final

NEWELL RUBBERMAID

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Traditional SERP Benefit

Effective January 1, 2008

 

 

NEWELL RUBBERMAID

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Traditional SERP Benefit

(Effective January 1, 2008)

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	INTRODUCTION & HISTORY	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE I	 	NAME, PURPOSE, LEGAL STATUS
	 	 	3	 
	ARTICLE II	 	GENERAL DEFINITIONS
	 	 	4	 
	ARTICLE III	 	PARTICIPATION
	 	 	7	 
	ARTICLE IV	 	SERP FORMULA
	 	 	8	 
	ARTICLE V	 	VESTING
	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VI	 	RETIREMENT BENEFIT (President or Above)
	 	 	14	 
	ARTICLE VII	 	RETIREMENT BENEFIT (Vice President)
	 	 	16	 
	ARTICLE VIII	 	PRERETIREMENT DEATH BENEFIT (President or Above)
	 	 	19	 
	ARTICLE IX	 	PRERETIREMENT DEATH BENEFIT (Vice President)
	 	 	21	 
	ARTICLE X	 	SPECIAL PROVISIONS
	 	 	23	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE XI	 	ADMINISTRATION AND FINANCING
	 	 	28	 
	ARTICLE XII	 	AMENDMENT AND TERMINATION
	 	 	31	 
	ARTICLE XIII	 	MISCELLANEOUS
	 	 	33	 
	ARTICLE XIV	 	2004 PLAN
	 	 	35	 

-i-

 

NEWELL RUBBERMAID

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Traditional SERP Benefit

(Effective January 1, 2008)

INTRODUCTION & HISTORY

The Plan

Effective January 1, 1982, Newell Operating Company (the “Company”) originally established the
Supplemental Retirement Plan for Key Executives (the “1982 Plan”), which was established to provide
supplemental retirement benefits for an eligible Vice President or an eligible President or Above,
and was subsequently amended and restated several times thereafter.

Effective January 1, 2004, the Company renamed the 1982 Plan as the Newell Rubbermaid Supplemental
Executive Retirement Plan (the “2004 Plan”) and its benefit as the “Traditional SERP Benefit” and
adopted the Newell Rubbermaid Retirement Choice Program (described below).

Effective January 1, 2007, the Company amended the 2004 Plan to (i) suspend participation of future
executives in the 2004 Plan and (ii) modify the determination of a Participant’s bonus for purposes
of the SERP benefit formula.

Effective January 1, 2008, the Company hereby amends and restates the 2004 Plan to incorporate
changes required by Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and
the final regulations thereunder (described below), as provided in the plan hereunder (the “Plan”).

Newell Rubbermaid Retirement Choice Program (2004)

Effective January 1, 2004, the Company adopted the Newell Rubbermaid Retirement Choice Program (the
“Program”) regarding the Traditional SERP Benefit under the 2004 Plan and established the SERP Cash
Account benefit under the Newell Rubbermaid Inc. 2002 Deferred Compensation Plan (the “2002
Deferred Compensation Plan”).

Under the Program, each existing Vice President (a corporate non-Executive Vice President of Newell
Rubbermaid Inc., and a subsidiary Vice President, as designated by the Company) participating in
the 1982 Plan as of December 31, 2003 made a one-time, irrevocable election to (i) remain in the
2004 Plan for the Traditional SERP Benefit or (ii) cease participation in the Traditional SERP
Benefit and participate in the new SERP Cash Account benefit under the 2002 Deferred Compensation
Plan. If the Vice President elected to participate in the SERP Cash Account, the equivalent lump
sum amount of his benefit under the 1982 Plan was transferred to his SERP Cash Account under the
2002 Deferred Compensation Plan (and he therefore ceased to have any benefit under the 2004 Plan).

Further, each existing President or Above (the Chief Executive Officer and an Executive Vice
President or Senior Vice President of Newell Rubbermaid Inc., and a Division President, as
designated by the Company) participating in the 1982 Plan as of December 31, 2003 (i) remained in
the 2004 Plan for the Traditional SERP Benefit and (ii) began participation in the SERP Cash
Account. His opening balance under the SERP Cash Account was equal to the equivalent lump sum
amount of his benefit under the 1982 Plan (with such SERP Cash Account used as an offset of the
Traditional SERP Benefit).

-1-

 

Thereafter, a President or Above who became eligible for the 2004 Plan as a President or Above on
or after January 1, 2004 (including therefore any previous or future Vice President promoted to
President or Above) participated in both the (i) 2004 Plan for the Traditional SERP Benefit (but
with a 50% SERP formula, except that a Vice President who elected to remain in the Traditional SERP
Benefit continued to participate in the 67% SERP formula) and (ii) 2002 Deferred Compensation Plan
for the SERP Cash Account benefit, with prospective benefits as provided thereunder.

The Traditional SERP Benefit of each President or Above under the 2004 Plan is offset by any
amounts in his SERP Cash Account. The Vice Presidents who elected to remain in the 2004 Plan for
the Traditional SERP Benefit do not participate in the SERP Cash Account benefit under the 2002
Deferred Compensation Plan.

Section 409A Compliance (2008)

Effective January 1, 2008, the 2004 Plan is hereby amended and restated to comply with Section 409A
of the Code and, in connection therewith, the Traditional SERP Benefit for a (i) President or Above
will be paid in a lump sum payment or installments at the same time and form of payment as his SERP
Cash Account and (ii) Vice President will be paid independently of the Newell Rubbermaid Pension
Plan.

-2-

 

ARTICLE I

NAME, PURPOSE, LEGAL STATUS

	1.1	 	Name. The Plan hereunder shall be known as the Newell Rubbermaid Supplemental
Executive Retirement Plan (the “Plan”), providing the Traditional SERP Benefit thereunder
effective January 1, 2008.
	 
	1.2	 	Purpose. The purpose of the Plan and its Traditional SERP Benefit is to provide
supplemental retirement and death benefits for an eligible Vice President or President or
Above who had become a participant of the 2004 Plan before January 1, 2007.
	 
	1.3	 	Plan. Effective January 1, 2008, the Plan shall apply to each Covered Executive.
The Plan shall supersede the 2004 Plan for each Covered Executive and, therefore, shall
exclusively govern the vesting, entitlement, calculation and payment of the benefit of a
Covered Executive under the Plan and 2004 Plan.
	 
	1.4	 	2004 Plan. Effective January 1, 2008, the 2004 Plan shall continue to apply to each
participant or beneficiary of the 2004 Plan who is not a Covered Executive. The 2004 Plan,
therefore, shall govern the benefits payable to a Grandfathered Participant and Interim
Participant, as such terms are defined in Article XIV, except that (i) the 2004 Plan shall be
considered amended as provided in Article XIV for each Interim Participant to comply with
Section 409A of the Code for the period from January 1, 2005 through December 31, 2007 and as
otherwise provided in Article XIV and (ii) the Plan shall apply regarding the reemployment of
any Interim Participant.
	 
	1.5	 	ERISA Status. The Company intends the Plan to be an unfunded deferred compensation
plan for a select group of management or highly compensated employees, within the meaning of
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.
	 
	1.6	 	Code Section 409A. The Company intends the Plan to comply with Section 409A of the
Code, but does not warrant or guarantee compliance therewith, in accordance with Section 10.9.

-3-

 

ARTICLE II

GENERAL DEFINITIONS

	2.1	 	“Actuarial Assumptions” means the interest rate and mortality assumptions as defined
in (i) Section 6.5, for a President or Above or (ii) Section 7.8, for a Vice President.
	 
	2.2	 	“Affiliate” means each entity with whom the Company would be considered a single
employer under Sections 414(b) and 414(c) of the Code, provided that in applying Section
1563(a)(1), (2), and (3) for purposes of determining a controlled group of corporations under
Section 414(b) of the Code, the language “at least 50 percent” is used instead of “at least 80
percent” each place it appears in Section 1563(a)(1), (2), and (3), and in applying Treasury
Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not
incorporated) that are under common control for purposes of Section 414(c), “at least 50
percent” is used instead of “at least 80 percent” each place it appears in that regulation.
Such term shall be interpreted in a manner consistent with the definition of “service
recipient” contained in Section 409A of the Code.
	 
	2.3	 	“Affiliated Group” means (i) the Company and (ii) all Affiliates.
	 
	2.4	 	“Board” means the Board of Directors of the Company.
	 
	2.5	 	“Change in Control” means the occurrence of a “change in the ownership,” a “change in
the effective control” or a “change in the ownership of a substantial portion of the assets”
of the Company or an Affiliate within the meaning of Section 409A of the Code.
	 
	2.6	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	2.7	 	“Commencement Effective Date” refers to the effective date of commencement of the
SERP retirement benefit under Article VII of a Participant who is a Vice President and means
the first day of the month after the later of (i) the age elected by him for the commencement
of his retirement benefit under Section 7.10 or (ii) his Separation from Service.
	 
	2.8	 	“Committee” means the Newell Rubbermaid Benefit Plans Administrative Committee, or
its designee.
	 
	2.9	 	“Company” means Newell Operating Company, a Delaware corporation, and its successors,
including, without limitation, the surviving corporation resulting from any merger or
consolidation of Newell Operating Company with any other corporation, limited liability
company, joint venture, partnership or other entity or entities.
	 
	2.10	 	“Covered Executive” means each individual who was a participant of the 2004 Plan and
(i) had not Separated from Service by December 31, 2007 and continues to be eligible for the
Plan as determined by the Committee or (ii) was employed by the Company or an Affiliate on or
after January 1, 2005, had Separated from Service by December 31, 2007, was vested under the
2004 Plan and had not commenced benefits under the 2004 Plan by December 31, 2007.
	 
	2.11	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
	 
	2.12	 	“Early Retirement Date” of a Participant who is a Vice President means the first day
of the month coincident with or next following the date he has both (i) reached his
60th birthday and (ii) been credited with at least 15 Years of Early Retirement
Service.

-4-

 

	2.13	 	“New High Level Executive” means a Participant who had first became eligible (or
reeligible) for the 2004 Plan as a President or Above on or after January 1, 2004 and before
January 1, 2007. A New High Level Executive, therefore, may have included any Vice President
promoted to President or Above, including a Vice President who elected under the Newell
Rubbermaid Retirement Choice Program effective January 1, 2004 to (i) continue to participate
in the 2004 Plan for the Traditional SERP Benefit or (ii) participate in the SERP Cash
Account.
	 
	2.14	 	“1982 Plan” means the Newell Rubbermaid Supplemental Retirement Plan for Key
Executives, as in effect prior to January 1, 2004.
	 
	2.15	 	“Normal Retirement Date” of a Participant means the first day of the month coincident
with or next following the later of his (i) 65th birthday or (ii) Separation from Service.
	 
	2.16	 	“Participant” means each Covered Executive who becomes a Participant in the Plan
under Section 3.1 and continues to be a Participant under Section 3.3.
	 
	2.17	 	“Participating Affiliate” means Newell Rubbermaid Inc. or an Affiliate which adopts
the Plan with the consent of the Company.
	 
	2.18	 	“Pension Plan” means the Newell Rubbermaid Pension Plan.
	 
	2.19	 	“Plan” or “SERP” means the Newell Rubbermaid Supplemental Executive
Retirement Plan, as provided in the plan hereunder and as the successor to the 2004 Plan
effective January 1, 2008.
	 
	2.20	 	“Plan Year” means the calendar year.
	 
	2.21	 	“Preretirement Date” means the first day of the month coincident with or next
following the date of a Participant’s death (regardless, in the case of a Vice President, of
whether he has reached his Early Retirement Date).
	 
	2.22	 	“President or Above” means the Chief Executive Officer and an Executive Vice
President or Senior Vice President of Newell Rubbermaid Inc., and a Division President of the
Affiliated Group, as designated by the Company.
	 
	2.23	 	“SERP Cash Account” means the Company Contribution Sub-Account maintained for a
Participant under the 2008 Deferred Compensation Plan.
	 
	2.24	 	“SERP Accrued Monthly Benefit” means the benefit amount of a Participant determined
under Section 4.1 (as the amount payable as of his Normal Retirement Date, as provided
thereunder), calculated as of his Separation from Service (or, if earlier, date of death),
except as otherwise provided by the Plan.
	 
	2.25	 	“SERP Transfer Date” refers to the effective date of the calculation and transfer of
the SERP retirement benefit under Article VI or preretirement death benefit under Article VIII
of a Participant who is a President or Above to the 2008 Deferred Compensation Plan and means
the January 1st immediately following his (i) Separation from Service, with respect to his
SERP retirement benefit under Article VI or (ii) death, with respect to his SERP preretirement
death benefit under Article VIII.
	 
	2.26	 	“Separation from Service” (or any derivation thereof) means a termination of
employment or service with the Affiliated Group in such a manner as to constitute a
“separation from service” as

-5-

 

	 	 	defined under Section 409A of the Code. Upon a sale or other disposition of the assets of
the Company or any Affiliate to an unrelated purchaser, the Committee reserves the right, to
the extent permitted by Section 409A of the Code, to determine whether Participants
providing services to the purchaser after and in connection with the purchase transaction
have experienced a Separation from Service.

	2.27	 	“Traditional SERP Benefit” means the benefit provided in the Plan hereunder,
effective January 1, 2008.
	 
	2.28	 	“2002 Deferred Compensation Plan” means the Newell Rubbermaid Inc. 2002 Deferred
Compensation Plan.
	 
	2.29	 	“2004 Plan” means the Newell Rubbermaid Supplemental Executive Retirement Plan, as in
effect from January 1, 2004 through December 31, 2007.
	 
	2.30	 	“2008 Deferred Compensation Plan” means the Newell Rubbermaid Inc. 2008 Deferred
Compensation Plan, which succeeded the 2002 Deferred Compensation Plan and pays benefits
originally accrued thereunder.
	 
	2.31	 	“Vice President” means a corporate non-Executive Vice President of Newell Rubbermaid
Inc., and a Vice President of the Affiliated Group, as designated by the Company.
	 
	2.32	 	“Years of Credited Service” of a Participant means his years as defined in Section
4.3, unless otherwise determined by the Committee or provided under the terms of his
employment agreement with the Company or an Affiliate.
	 
	2.33	 	“Years of Early Retirement Service” of a Participant who is a Vice President means
his years of vesting service under the Pension Plan, unless otherwise determined by the
Committee or provided under the terms of his employment agreement with the Company or an
Affiliate.

-6-

 

ARTICLE III

PARTICIPATION

	3.1	 	Covered Executive. Effective as of January 1, 2008, each Covered Executive shall
become a Participant in the Plan. No further individual shall become a Participant in the
Plan (or otherwise re-participate therein). (Effective January 1, 2007, the 2004 Plan
suspended the participation of any new executive, or re-participation of any previous
participant, in the 2004 Plan.)
	 
	3.2	 	Payment Elections. A Participant shall make the following elections regarding the
time and form of payment of his benefit under the Plan (as applicable):

	 	(a)	 	President or Above. A Participant who is a President or Above as of
December 31, 2007 shall make an election regarding the form of payment of his SERP Cash
Account under the 2008 Deferred Compensation Plan, which election will govern the form
of payment of his SERP retirement benefit under Article VI.
	 
	 	(b)	 	Vice President. A Participant who is a Vice President as of December
31, 2007 shall make an election under Section 7.10 to specify an age under his
Commencement Effective Date for the payment of his SERP retirement benefit under
Article VII.

	 	 	Each Participant shall make the foregoing elections at such times prescribed by the
Committee therefor, provided each election and the time and manner of such elections comply
with Section 409A of the Code.
	 
	3.3	 	Continued Participation. A Participant’s active participation in the Plan shall be
suspended upon his employment status change under Section 4.7 or Separation from Service.
Further, a Participant shall cease to be a Participant upon his non-vested Separation from
Service under Section 5.3 or the complete transfer or payment of his benefit under the Plan.
Thereafter, in any foregoing case, the Participant shall not reparticipate in the Plan under
any circumstances, including upon his reemployment with the Affiliated Group.

-7-

 

ARTICLE IV

SERP FORMULA

	4.1	 	SERP Accrued Monthly Benefit. A Participant’s “SERP Accrued Monthly Benefit” means
the following monthly amount, payable as of his Normal Retirement Date:

	 	(a)	 	Gross Benefit: 67% times his Final Average Monthly Pay (under Section 4.2),
times his Years of Credited Service (under Section 4.3) up to 25 divided by 25;
	 
	 	(b)	 	less his Pension Plan Benefit (under Section 4.4); and
	 
	 	(c)	 	less his Social Security Benefit (under Section 4.5),
	 
	 	(d)	 	Equals his SERP Accrued Monthly Benefit (but not below zero).

	 	 	However, in the case of a Participant who is a New High Level Executive (other than a Vice
President under the 2004 Plan who elected under the Newell Rubbermaid Retirement Choice
Program effective January 1, 2004 to continue to participate in the 2004 Plan for the
Traditional SERP Benefit), “50%” shall be substituted for “67%” in the foregoing formula.
	 
	4.2	 	Final Average Monthly Pay. For purposes of this Article, a Participant’s “Final
Average Monthly Pay” is the sum of his Annual Compensation (as defined herein) during the five
consecutive calendar years in which his Annual Compensation was the highest, divided by 60
months. If the Participant has not been employed with the Company and Participating
Affiliates for five full calendar years, his Final Average Monthly Pay is the monthly average
of his Annual Compensation while employed with the Company and Participating Affiliates. For
purposes of this Section:

	 	(a)	 	Annual Compensation. A Participant’s “Annual Compensation” is his base
salary and bonus from the Company and Participating Affiliates paid during a calendar
year (including any years prior to his participation in the Plan or 2004 Plan). The
Participant’s Annual Compensation, therefore, is not reduced by any elective
contributions from his base salary or bonus made under the Newell Rubbermaid 401(k)
Savings and Retirement Plan, 2008 Deferred Compensation Plan, 2002 Deferred
Compensation Plan or any Code Section 125 plan maintained by the Company or a
Participating Affiliate.
	 
	 	(b)	 	Cash Bonus Plan. For purposes of subsection (a), a Participant’s
“bonus” is the actual amount of a bonus paid to him under a cash bonus plan or program
of the Company or a Participating Affiliate. However, effective for a Participant
whose initial employment date with the Company or a Participating Affiliate precedes
January 1, 2006 and with respect to a bonus paid to him in any year beginning on or
after January 1, 2007, his “bonus” shall be the amount of the bonus which would have
been paid to him in such year if the bonus formula in effect for calendar year 2005
with respect to his current job classification under the Newell Rubbermaid Inc.
Management Cash Bonus Plan or such other cash bonus plan or program of the Company or
Participating Affiliate which was or would be applicable to him (for purposes of this
Section, a “Cash Bonus Plan”) was applied to determine the bonus paid to him in such
year, as determined by the Company.
	 
	 	(c)	 	Transition Stock Awards. Notwithstanding subsection (a), a
Participant’s “base salary and bonus” in any event shall not include restricted stock
awards made in 2005 and 2006 under the Newell Rubbermaid Inc. Long-Term Incentive Plan
in connection with the reduction of his target bonus opportunity under a Cash Bonus
Plan.

-8-

 

	4.3	 	Years of Credited Service. For purposes of this Article and the Plan, a
Participant’s “Years of Credited Service” are his whole and fractional years of continuous
service which begin and end on the following dates:

	 	(a)	 	Begins. A Participant’s Years of Credited Service begin on his
“credited service date,” i.e., the date of his initial employment as an
employee with the Company or an Affiliate, but starting no sooner than the date any
such Affiliate is owned by the Company or an Affiliate. The Participant’s credited
service date, therefore, may precede the date of his participation in the 2004 Plan or
promotion to Vice President or President or Above.
	 
	 	(b)	 	Ends. A Participant’s Years of Credited Service end on the date of his
Separation from Service (or, if earlier, the suspension of his participation in the
Plan under Section 3.3).

	 	 	A Participant shall receive a (i) whole year for each 365 days of continuous service (or,
for leap years, 366 days) and (ii) fractional year equal to his days of continuous service
divided by 365 days (or, for leap years, 366 days).
	 
	4.4	 	Pension Plan Benefit. For purposes of this Article, a Participant’s “Pension Plan
Benefit” means his following monthly amount under the Pension Plan, determined using the
benefit formula(s) in effect under the Pension Plan as of December 31, 2004, and as applicable
or would be applicable to the Participant if the Pension Plan had not suspended future benefit
accruals and new participants effective December 31, 2004 (as such benefit formula(s) are
incorporated herein by reference), based on his marital status on his (i) SERP Transfer Date,
for a President or Above or (ii) Commencement Effective Date, for a Vice President; as
follows:

	 	(a)	 	Married Participant. If the Participant is married (and has been
married to the same spouse for the one year period ending on his SERP Transfer Date or
Commencement Effective Date, as applicable), the Pension Plan Benefit is the monthly
amount from the Pension Plan payable as of his Normal Retirement Date in a qualified
joint and 50% survivor annuity with his spouse as the beneficiary under the Pension
Plan (and without regard to the amount, if any, actually being paid as of his Normal
Retirement Date).
	 
	 	(b)	 	Single Participant. If the Participant is not so married under
subsection (a), the Pension Plan Benefit is the monthly amount from the Pension Plan
payable as of his Normal Retirement Date in a single life annuity under the Pension
Plan (and without regard to the amount, if any, actually being paid as of his Normal
Retirement Date).

	 	 	A Participant’s Pension Plan Benefit, therefore, (i) includes the benefit he would have
received from the Pension Plan had the Pension Plan not been frozen or suspended for new
participants effective December 31, 2004 and (ii) is determined without regard to his vested
status under the Pension Plan. Further, a Participant’s Pension Plan Benefit, to the extent
applicable, shall be based on the actuarial assumptions under the Pension Plan as in effect
on December 31, 2007 (regardless if subsequently changed).
	 
	4.5	 	Social Security Benefit. For purposes of this Article, a Participant’s “Social
Security Benefit” means the monthly amount of his primary Social Security benefit payable as
of his Normal Retirement Date, based on his service and earnings under the Social Security Act
as of his Separation from Service, projected with level earnings thereunder based on his most
recent compensation with the Company and Participating Affiliates and assuming no increases in
the Taxable Wage Base under the Social Security Act. A Participant’s Social Security Benefit,

-9-

 

	 	 	therefore, is determined without regard to the actual amount of his monthly Social Security
benefit as of his Normal Retirement Date.

	4.6	 	SERP Cash Account. A Participant’s SERP Accrued Monthly Benefit shall be offset in
the manner provided under Article VI or VIII or as otherwise provided under the Plan for the
amount of his SERP Cash Account (if any), determined without regard to his vested status in
the SERP Cash Account. Further, the foregoing reduction for the Participant’s SERP Cash
Account shall apply to his entire SERP Cash Account, including, therefore, the portion thereof
attributable to (i) in the case of a New High Level Executive who was a Vice President that
elected to join the SERP Cash Account effective January 1, 2004, his benefit under the 2004
Plan transferred as an equivalent lump sum amount to the SERP Cash Account or (ii) in the case
of a President or Above, the opening balance under the SERP Cash Account equal to his benefit
under the 2004 Plan as an equivalent lump sum amount.
	 
	4.7	 	Suspension Upon Employment Status Change. Upon a Participant’s employment status
change while remaining employed with the Affiliated Group (other than his promotion from a
Vice President to a President or Above under Section 4.8), including but not limited to his
(i) transfer from a President or Above or Vice President to a lesser status, (ii) transfer to
a non-Participating Affiliate or (iii) cessation of eligibility for the Plan, in each
foregoing case as determined by the Company, he shall cease to accrue further increases to his
SERP Accrued Monthly Benefit and the amount thereof shall be calculated as if he Separated
from Service on the date of his employment status change, but his vested status and the
payment of his benefit under the Plan will be subject to the remaining provisions of the Plan
(including, in the case of a President or Above, the offset for his SERP Cash Account).
Further, the Participant shall continue to be credited with (i) Years of Credited Service to
determine his vested status for involuntary termination purposes under Section 5.1(b) and (ii)
Years of Early Retirement Service for purposes of his Early Retirement Date (as applicable
only to a Vice President).
	 
	4.8	 	Promotion to President or Above. If, after January 1, 2008, a Participant who is a
Vice President is promoted to a President or Above, his SERP Accrued Monthly Benefit as of his
SERP Transfer Date shall be reduced by his SERP Accrued Monthly Benefit calculated as of the
date of his promotion to President or Above (his “Vice President Accrued Benefit”) to reach
his remaining SERP Accrued Monthly Benefit (his “President Accrued Benefit”). The
Participant’s (i) Vice President Accrued Benefit shall be paid to him under the terms of
Article VII or IX (as applicable), substituting his Vice President Accrued Benefit for his
SERP Accrued Monthly Benefit thereunder and (ii) President Accrued Benefit (less his SERP Cash
Account) shall be transferred to the 2008 Deferred Compensation Plan pursuant to the terms of
Article VI or VIII (as applicable), by substituting his President Accrued Benefit for his SERP
Accrued Monthly Benefit thereunder, but the SERP Lump Sum Amount under Article VI or VIII (as
applicable) shall be paid solely in a lump sum payment (notwithstanding any contrary provision
of the 2008 Deferred Compensation Plan).

-10-

 

ARTICLE V

VESTING

	5.1	 	Vesting Requirements. A Participant shall become “vested” in his Traditional SERP
Benefit under any following circumstance:

	 	(a)	 	Employment At Age 60. He is employed as an employee on or after his
60th birthday with the Company or any Affiliate (regardless of his Years of
Credited Service).
	 
	 	(b)	 	Involuntary Termination With 15 Years. He (i) is involuntarily
terminated from employment with all members of the Affiliated Group before his
60th birthday and (ii) has at least 15 Years of Credited Service; subject to
Section 5.6.
	 
	 	(c)	 	Rule of 75 Vesting. He qualifies for “rule of 75” vesting under
Section 5.2.
	 
	 	(d)	 	Change In Control. Upon a change in control (as defined in the Newell
Rubbermaid Inc. 2003 Stock Plan, as amended from time to time).
	 
	 	(e)	 	Employee of Sold Business. He (i) has been credited with at least 15
Years of Credited Service, (ii) is employed with a member or division of the Affiliated
Group on the date of the sale of such member or division to an independent person and
(iii) continues employment with the member or division immediately following
thereafter.
	 
	 	(f)	 	Death During Employment. He dies before his Separation from Service
(regardless of the number of his Years of Credited Service).
	 
	 	(g)	 	Employment Agreement. If and as provided under the terms of his
employment agreement with the Company or an Affiliate, including upon termination
following a change in control as provided thereunder.
	 
	 	(h)	 	Committee Discretion. Under such other circumstances as determined by
the Committee in its sole and absolute discretion.

	 	 	Once vested, the Participant shall be entitled to a retirement benefit from the Plan under
Article VI or VII (as applicable) or a preretirement death benefit under Article VIII or IX
(as applicable). Notwithstanding any provision of the Plan, a Participant must be vested
under this Section in order for he or his spouse or beneficiary to be entitled to receive
benefits from the Plan.
	 
	5.2	 	Rule of 75 Vesting. Subject to the requirements set forth below, a Participant shall
become fully vested in his Traditional SERP Benefit if, as of the date of his retirement with
the Affiliated Group without Cause, as determined by Newell Rubbermaid Inc. (in this Section,
Company), (i) he is at least age 55, (ii) he has at least five years of credited service (as
defined herein) and (iii) the sum of his whole and fractional years of age and credited
service equals or exceeds 75.
	 
	 	 	For purposes of this Section, the term “credited service” means his period of employment
with the Affiliated Group (including any predecessor company or business acquired by the
Affiliated Group, provided he was immediately employed by the Affiliated Group), as defined
by the Company. Age and credited service shall be determined in fully completed years and
months, with each month being measured as a continuous period of 30 days. The term “Cause”
means the

-11-

 

	 	 	Participant’s unsatisfactory performance or conduct detrimental to the Affiliated Group, as
solely determined by the Company.

	 	 	As a condition to becoming vested under this Section, a Participant must execute and deliver
to the Company an agreement, in the form prescribed by the Company, an in accordance with
procedures established by the Company, that he will not solicit employees, customers or
suppliers of the Affiliated Group, or compete with the Affiliated Group, and that he
releases all claims against the Affiliated Group. The foregoing agreement must become
effective and irrevocable in accordance with its terms no later than the first business day
of the seventh month following the Participant’s Separation from Service. If he fails to
furnish any such agreement, or if the agreement furnished by him has not become effective
and irrevocable by the first business day of the seventh month after his Separation from
Service, he will not be entitled to the payment of his Traditional SERP Benefit that would
become vested under this Section.
	 
	5.3	 	Non-Vested Separation From Service. If a Participant Separates from Service with the
Affiliated Group before becoming vested under this Article, his benefit under the Plan shall
be immediately forfeited. If he is ever reemployed with the Affiliated Group, his benefit
under the Plan (or under the 2004 Plan or 1982 Plan) will not be reinstated thereunder.
	 
	5.4	 	Forfeiture Events. Even if a Participant is vested under this Article, he shall
cease to be vested, and thereafter not be entitled to any benefit from the Plan (regardless of
whether it commenced, was paid or transferred from the Plan), under any following
circumstance:

	 	(a)	 	At any time because of any act or failure to act on his part which constitutes
fraud, misappropriation, theft or embezzlement of funds of the Company or an Affiliate
or an intentional breach of fiduciary duty, including a breach of the Company or
Affiliate’s Code of Business Conduct involving the Company or an Affiliate.
	 
	 	(b)	 	At any time he engages in competition with, or work for another business entity
in competition with, the Company or an Affiliate in the areas that it serves.
	 
	 	(c)	 	At any time he makes any unauthorized disclosure of any trade or business
secrets or privileged information acquired during his employment with the Company or an
Affiliate.
	 
	 	(d)	 	At any time he is convicted of a felony connected with his employment by the
Company or an Affiliate.
	 
	 	(e)	 	At any time he makes a material misrepresentation in any form or document
provided by him to or for the benefit of the Company or an Affiliate.

	5.5	 	Repayment of Benefits. In the event a Participant ceases to be vested under Section
5.4, or fails to comply with the agreement required under Section 5.2, and he has received
benefits from the Plan or the 2008 Deferred Compensation Plan (including a lump sum payment),
the Participant (or, if applicable, his estate or beneficiary) shall repay to the Company the
full amount of the Plan benefits (with interest based on the interest rate(s) under the
definition of Actuarial Assumptions under Section 7.8 for the year(s) benefits were made to
the Participant) within 30 days of written demand by the Committee. The foregoing written
demand shall contain the forfeiture event or agreement violated by the Participant, the
factual circumstances supporting such violation and his appeal rights under Section 11.2.
Following repayment, the Participant may appeal the forfeiture of his Plan benefit pursuant to
Section 11.2.

-12-

 

	5.6	 	Release For Involuntary Termination. The payment of any benefit under the SERP to a
Participant who becomes vested in such benefit pursuant to Section 5.1(b) before attaining age
60, and before his date of death, is conditioned upon the prior execution by such Participant
of a release, in a form satisfactory to the Company, whereby the Participant fully releases
the Company, all of its Affiliates, the Committee and all of their respective officers,
employees, directors and agents, from any and all rights and claims that such Participant, or
his heirs, representatives, successors and assigns, may at any time have with respect to the
receipt of benefits under the SERP. The release must become effective and irrevocable in
accordance with its terms no later than the first business day of the seventh month following
the Participant’s Separation from Service. If he fails to furnish the release, or if the
release furnished by him has not become effective and irrevocable by the first business day of
the seventh month after his Separation from Service, then he will not be entitled to any
payment under the Plan.

-13-

 

ARTICLE VI

RETIREMENT BENEFIT

(President or Above)

	6.1	 	Retirement Benefit. If a Participant is a President or Above, is vested under
Article V and incurs a Separation from Service (in this Article, a “Participant”), he shall be
entitled to a “retirement benefit” from the Plan payable to him at the same time and form of
payment as the Participant’s SERP Cash Account under the 2008 Deferred Compensation Plan.
	 
	6.2	 	Transfer To 2008 Plan. To effect the payment under Section 6.1, the Participant’s
SERP Lump Sum Amount (under Section 6.3) shall be credited to his SERP Cash Account under the
2008 Deferred Compensation Plan effective as of his SERP Transfer Date. The payment or
commencement of the Participant’s retirement benefit from the 2008 Deferred Compensation Plan
shall be subject to the terms and conditions of the 2008 Deferred Compensation Plan.
	 
	6.3	 	SERP Lump Sum Amount. For purposes of this Article, a Participant’s “SERP Lump Sum
Amount” shall equal the following amount as of his SERP Transfer Date:

	 	(a)	 	The actuarial present value of his SERP Accrued Monthly Benefit payable in his
Normal Annuity Form (under Section 6.4), using the Actuarial Assumptions in effect for
the calendar year of his Separation from Service, and calculated as a “deferred
annuity” (i.e., as the actuarial present value of the foregoing benefit
commencing as of his Normal Retirement Date, then discounted to the SERP Transfer
Date); and
	 
	 	(b)	 	less the amount of his SERP Cash Account as of the SERP Transfer Date,
	 
	 	(c)	 	Equals his SERP Lump Sum Amount (but not below zero).

	 	 	However, if the Participant’s SERP Transfer Date is on or after his Normal Retirement Date,
the actuarial present value of the benefit under subsection (a) shall be calculated as an
“immediate annuity” (i.e., as the actuarial present value of the benefit commencing
as of the Normal Retirement Date), with an increase for interest from the Normal Retirement
Date to the SERP Transfer Date using the interest rate from the Actuarial Assumptions in
effect for the calendar year of his Separation from Service.
	 
	6.4	 	Normal Annuity Form. For purposes of this Article, a Participant’s “Normal Annuity
Form” is based on his marital status as of his SERP Transfer Date:

	 	(a)	 	Married Participant. If the Participant is married (and has been
married to the same spouse for the one year period ending on his SERP Transfer Date),
his Normal Annuity Form is a qualified joint and 50% survivor annuity with his spouse.
	 
	 	(b)	 	Single Participant. If the Participant is not so married under
subsection (a), his Normal Annuity Form is a single life annuity.

	6.5	 	Actuarial Assumptions. For purposes of this Article and the Plan, the “Actuarial
Assumptions” for a President or Above means the following assumptions:

	 	(a)	 	The interest rate assumption in effect for the calendar year specified by the
Plan for financial statement reporting purposes in the Form 10-K of Newell Rubbermaid
Inc. under Financial Accounting Standards Board (FASB) Statement 87 for the calendar
year,

-14-

 

	 	 	 	using the methodology for the determination of such interest rate as in effect
therefor as of December 31, 2007.

	 	(b)	 	The mortality assumption in effect for the calendar year specified by the Plan
for financial statement reporting purposes in the Form 10-K of Newell Rubbermaid Inc.
under Financial Accounting Standards Board (FASB) Statement 87 for the calendar year,
using the methodology for the determination of such mortality assumption as in effect
therefor as of December 31, 2007; provided, however, that the (i) mortality table shall
be blended 50%/50% for males and females and (ii) mortality assumption shall be applied
without any reduction for death before a Participant’s Normal Retirement Date.

	6.6	 	Preretirement Death Benefit. Notwithstanding the provisions of this Article, if the
Participant dies before his SERP Transfer Date, the Plan shall not pay a retirement benefit
under this Article to any person with respect to his benefit under the Plan. Instead, the
Participant shall be eligible for a preretirement death benefit from the Plan under Article
VIII.

-15-

 

ARTICLE VII

RETIREMENT BENEFIT

(Vice President)

	7.1	 	Retirement Benefit. If a Participant is a Vice President, is vested under Article V
and incurs a Separation from Service (in this Article, a “Participant”), he shall be entitled
to a “retirement benefit” from the Plan payable to him under the terms of this Article.
	 
	7.2	 	Payment. A Participant’s retirement benefit shall (i) commence monthly to him as of
his Commencement Date (under Section 7.3), with payments beginning within 90 days thereof,
(ii) equal his Benefit Amount (under Section 7.4) and (iii) be paid in his Normal Annuity Form
(under Section 7.5) or an Alternative Annuity Form (under Section 7.6).
	 
	7.3	 	Commencement Date. For purposes of this Article and the Plan, a Participant’s
“Commencement Date” means the later of the following dates:

	 	(a)	 	His Commencement Effective Date; or
	 
	 	(b)	 	The first day of the month after the six-month anniversary of his Separation
from Service.

	 	 	Notwithstanding Section 7.2, if a Participant’s retirement benefit payments commence as a
result of subsection (b) hereof, the first monthly payment of his Benefit Amount also shall
include any monthly payments (without interest) that would have been made had his retirement
benefit commenced on his Commencement Effective Date.
	 
	7.4	 	Benefit Amount. For purposes of this Article, a Participant’s “Benefit Amount” shall
equal his SERP Accrued Monthly Benefit. However, if his Commencement Effective Date precedes
his Normal Retirement Date, his SERP Accrued Monthly Benefit shall be reduced by .5% for each
month (or 6% per year) for which his Commencement Effective Date precedes his Normal
Retirement Date.
	 
	7.5	 	Normal Annuity Form. For purposes of this Article, a Participant’s “Normal Annuity
Form” is based on his marital status as of his Commencement Effective Date, as follows:

	 	(a)	 	Married Participant. If the Participant is married (and has been
married to the same spouse for the one year period ending on his Commencement Effective
Date), his Benefit Amount is payable in a qualified joint and 50% survivor annuity with
his spouse.
	 
	 	(b)	 	Single Participant. If the Participant is not so married under
subsection (a), his Benefit Amount is payable in a single life annuity.

	 	 	Accordingly, if the Participant elects to receive his retirement benefit in his foregoing
“married” or “single” Normal Annuity Form, the amount of his retirement benefit payments
under Section 7.2 shall equal his exact Benefit Amount.
	 
	7.6	 	Alternative Annuity Form. In lieu of his Normal Annuity Form, a Participant may
elect at any time before his Commencement Date to receive his retirement benefit in an
“Alternative Annuity Form” which, for purposes of this Article, shall include the following
annuity forms:

	 	(a)	 	A single life annuity.
	 
	 	(b)	 	A joint and 50% survivor annuity.

-16-

 

	 	(c)	 	A joint and 100% survivor annuity.
	 
	 	(d)	 	A single life and 10 year certain annuity.

	 	 	If the Participant elects an Alternative Annuity Form, the Benefit Amount of his retirement
benefit under Section 7.2 shall be the actuarial equivalent amount, using the Actuarial
Assumptions (under Section 7.8) in effect for the Plan Year of his Commencement Effective
Date, of his Benefit Amount payable in his “married” or “single” Normal Annuity Form.
	 
	7.7	 	Spousal Consent. The Participant may receive or elect his Normal Annuity Form or an
Alternative Annuity Form, and designate his spouse or any other person as his survivor
beneficiary under such Annuity Form, provided his spouse as of his Commencement Effective Date
(if he has been married to the same spouse for the one year period ending on his Commencement
Effective Date) consents to such Annuity Form and beneficiary designation within the time
prescribed by the Committee prior to his Commencement Date.
	 
	7.8	 	Actuarial Assumptions. For purposes of this Article and the Plan, the “Actuarial
Assumptions” for a Vice President means the following assumptions:

	 	(a)	 	The published interest rate under Section 430(h)(2)(C)(iii) (known as the third
segment rate) of the Code as in effect for the Plan Year specified under the Plan,
based on the fourth applicable month which precedes the Plan Year.
	 
	 	(b)	 	The published mortality table under Section 430(h)(3) of the Code, blended
50%/50% for males and females, as in effect for the Plan Year specified under the Plan,
applied without any reduction for death before a Participant’s Normal Retirement Date.

	 	 	The foregoing interest rate and mortality table shall be applied without regard to any
transition provisions under Section 430(h) of the Code.
	 
	7.9	 	Preretirement Death Benefit. Notwithstanding the provisions of this Article, if the
Participant dies before his Commencement Date, the Plan shall not pay a retirement benefit
under this Article to any person with respect to his benefit under the Plan. Instead, the
Participant shall be eligible for a preretirement death benefit from the Plan under Article
IX.
	 
	7.10	 	Transition Relief for Time of Payment Election. A Participant shall, no later than a
date specified by the Committee (provided that such date occurs no later than December 31,
2008) on a form provided by the Committee, elect an age in years and months between age 60 and
65 for his Commencement Effective Date. If a Participant does not make the foregoing election
in accordance with the terms of this Section, or if he makes such election but the Committee
determines that at the time of his election he will not have been credited with at least 15
Years of Early Retirement Service as of the designated age, then he shall be deemed to have
elected age 65. The Committee may also take any action that it deems necessary, in its sole
discretion, to amend any such election of a Participant, without his consent, to conform the
election to the terms of the Plan. This Section is intended to comply with IRS Notice
2007-86, any subsequent notice or guidance, and the applicable proposed and final Treasury
Regulations issued under Section 409A of the Code and shall be interpreted in a manner
consistent with such intent.
	 
	7.11	 	Subsequent Deferral Election. Notwithstanding Section 7.10, a Participant who elects
his 60th birthday in his Commencement Effective Date under Section 7.10 (and currently has, or
will then at age 60 have, at least 15 Years of Early Retirement Service) may make a one-time,
irrevocable “subsequent deferral election” to change his age election under his Commencement
Effective

-17-

 

	 	 	Date to his 65th birthday, provided he makes such election under rules prescribed by the
Committee at least 12 months before his 60th birthday. The Committee shall disregard any
subsequent deferral election by a Participant to the extent such election would result in an
acceleration of the time or schedule of any payment or amount scheduled to be paid under the
Plan within the meaning of Section 409A of the Code.

	7.12	 	Reemployment. If a Participant is receiving annuity payments under this Article (or
if any participant is receiving annuity payments under the 2004 Plan or 1982 Plan) and he is
subsequently reemployed by the Affiliated Group, the annuity payments shall continue to be
paid at the same time and form as in effect before his reemployment.

-18-

 

ARTICLE VIII

PRERETIREMENT DEATH BENEFIT

(President or Above)

	8.1	 	Preretirement Death Benefit. If a Participant is a President or Above, is vested
under Article V and dies before his SERP Transfer Date (in this Article, a “Participant”), his
beneficiary under the 2008 Deferred Compensation Plan shall be entitled to a “preretirement
death benefit” from the Plan payable to the beneficiary at the same time and form of payment
as the Participant’s SERP Cash Account under the 2008 Deferred Compensation Plan.
	 
	8.2	 	Transfer To 2008 Plan. To effect the payment under Section 8.1, the Participant’s
SERP Lump Sum Amount (under Section 8.3) shall be credited to his SERP Cash Account under the
2008 Deferred Compensation Plan effective as of his SERP Transfer Date.
	 
	8.3	 	SERP Lump Sum Amount. For purposes of this Article, a Participant’s “SERP Lump Sum
Amount” shall equal the following amount as of his SERP Transfer Date:

	 	(a)	 	The actuarial present value of his applicable SERP Death Benefit (under Section
8.4), using the Actuarial Assumptions in effect for the calendar year of the
Participant’s death, and calculated as an “immediate annuity” (i.e., as the
actuarial present value of the foregoing benefit commencing as of his Preretirement
Date), with an increase for interest from the Preretirement Date to the SERP Transfer
Date using the interest rate from the Actuarial Assumptions in effect for the calendar
year of his death; and
	 
	 	(b)	 	less the amount of his SERP Cash Account as of the SERP Transfer Date,
	 
	 	(c)	 	Equals his SERP Lump Sum Amount (but not below zero).

	8.4	 	SERP Death Benefit. For purposes of this Article, a Participant’s “SERP Death
Benefit” means whichever of the following benefit amounts would produce a higher lump sum
value under Section 8.3(a) (as applicable):

	 	(a)	 	Adjusted SERP Accrued Monthly Benefit. The Participant’s Adjusted SERP
Accrued Monthly Benefit (under Section 8.5), without any reduction for commencement
before his Normal Retirement Date, and payable commencing on his Preretirement Date and
ending with the month of his 65th birthday (or, if later, the 15th anniversary of his
death).
	 
	 	(b)	 	Spouse 50% Survivor Benefit. If the Participant has a surviving spouse
(and has been married to the same spouse for the one year period ending on the date of
his death), his spouse’s 50% survivor benefit amount of his “married” Normal Annuity
Form under Section 6.4(a), without any reduction for commencement before his Normal
Retirement Date, and payable commencing on his Preretirement Date and for only 15
years.

	8.5	 	Adjusted SERP Accrued Monthly Benefit. For purposes of this Article, a Participant’s
“Adjusted SERP Accrued Monthly Benefit” means the amount of his SERP Accrued Monthly Benefit,
except as follows:

	 	(a)	 	Gross Benefit. In Section 4.1(a), (i) 33.5% shall be substituted for
67% and 25% for 50% and (ii) no proration shall apply for less than 25 Years of
Credited Service.
	 
	 	(b)	 	Pension Plan Benefit. In Section 4.1(b), the offset for the Pension
Plan Benefit shall equal the surviving spouse’s death benefit(s) under the Pension
Plan, expressed as a

-19-

 

	 	 	 	single life annuity for the life of the surviving spouse commencing on the
Participant’s Normal Retirement Date (including, if necessary, after any actuarial
conversion using applicable actuarial assumptions under the Pension Plan as in
effect as of December 31, 2007). The foregoing surviving spouse’s death benefit
shall be based on (i) the Participant’s surviving spouse (if he has been married to
the same spouse for the one year period ending on the date of his death) or, if the
Participant is not so married, a spouse having the same age and (ii) the benefit to
which the Participant would have been entitled had the Pension Plan not been frozen
for future benefit accruals and suspended for new participants effective December
31, 2004.

	 	(c)	 	Social Security Benefit. In Section 4.1(c), no offset will apply for
the Participant’s Social Security Benefit.

	8.6	 	2008 Plan. Consistent with the provisions of this Article, if a Participant dies on
or after his SERP Transfer Date, the Participant’s SERP retirement benefit under Article VI
will have been transferred to the 2008 Deferred Compensation Plan and no preretirement death
benefit will be payable from the Plan. In this case, the Plan will pay the death benefit
applicable to the Participant’s SERP Cash Account under the terms of the 2008 Deferred
Compensation Plan.

-20-

 

ARTICLE IX

PRERETIREMENT DEATH BENEFIT

(Vice President)

	9.1	 	Preretirement Death Benefit. If a Participant is a Vice President, is vested under
Article V and dies before his Commencement Date (under Section 7.3) (in this Article, a
“Participant”), his surviving spouse, if married to him for at least the one year period
ending on the date of his death (in this Article, the “Spouse”), or his Dependent Children
(under Section 9.7) or Surviving Children (under Section 9.8), shall be entitled to a
“preretirement death benefit” from the Plan payable under the terms of this Article. If the
Participant dies without a Spouse, Dependent Children or Surviving Children, his preretirement
death benefit is not paid to any person.
	 
	9.2	 	Payment. A Participant’s preretirement death benefit shall (i) commence monthly to
the Spouse (or, if applicable, to the Participant’s Surviving Children under Section 9.6) as
of the Participant’s Preretirement Date, with payments beginning within 90 days thereof, (ii)
equal his Benefit Amount (under Section 9.3) and (iii) be paid for 15 years.
	 
	9.3	 	Benefit Amount. For purposes of this Article, a Participant’s “Benefit Amount” shall
equal the greater of the following amounts:

	 	(a)	 	Adjusted SERP Accrued Monthly Benefit. The Participant’s Adjusted SERP
Accrued Monthly Benefit (as calculated for him under Section 8.5 as if he were a
President or Above), without reduction for commencement before his Normal Retirement
Date.
	 
	 	(b)	 	Spouse 50% Survivor Benefit. If the Participant has a Spouse, the 50%
survivor benefit the Spouse would receive if the Participant received his SERP
retirement benefit under Article VII in his “married” Normal Annuity Form under Section
7.5(a) commencing on his Normal Retirement Date, without reduction for commencement
before his Normal Retirement Date.

	9.4	 	Remarriage of Spouse. If at the remarriage of the Spouse the Participant has
Dependent Children, any remaining benefit payments under Section 9.2 being paid to his Spouse
shall continue to be paid instead to his Dependent Children (in equal shares) for as long as
they are Dependent Children. When the Participant’s Dependent Children are no longer
Dependent Children, any remaining benefit payments under Section 9.2 shall resume to his
remarried Spouse.
	 
	9.5	 	Death of Spouse. If at the death of the Spouse the Participant has Surviving
Children, any remaining benefit payments under Section 9.2 being paid to his Spouse (or his
Dependent Children under Section 9.4) shall continue to be paid instead to his Surviving
Children (in equal shares), per stirpes.
	 
	9.6	 	Death Without Spouse. If the Participant dies without a Spouse but with Surviving
Children, the preretirement death benefit under Section 9.2 shall be paid to the Participant’s
Surviving Children (in equal shares), per stirpes.
	 
	9.7	 	Dependent Children. For purposes of this Article, a Participant’s “Dependent
Children” means his unmarried children under (i) age 18 or (ii) age 22, if a full-time student
at an elementary or secondary school, a vocational or professional school or an accredited
college or university as an undergraduate or graduate student.

-21-

 

	9.8	 	Surviving Children. For purposes of this Article, a Participant’s “Surviving
Children” means his living children on the date of his death. If a Participant’s child has
predeceased the Participant with issue, the predeceased child shall be considered a Surviving
Child.
	 
	9.9	 	Retirement Benefit. Consistent with the provisions of this Article, if a Participant
dies on or after his Commencement Date (under Section 7.3), no preretirement death benefit
will be payable from the Plan. In this case, the Plan will pay the death benefit applicable
to the Participant’s SERP retirement benefit under Article VII.

-22-

 

ARTICLE X

SPECIAL PROVISIONS

	10.1	 	Disability During Employment. If a Participant becomes disabled or unable to work
due to injury or sickness while an employee with the Affiliated Group, his participation in
the Plan shall not be suspended until the date of his Separation from Service and, thereafter,
he shall cease to accrue further increases to his SERP Accrued Monthly Benefit, and his SERP
Accrued Monthly Benefit shall be calculated as of the date of his Separation from Service.
The Participant’s vested status and the payment of his benefit under the Plan will be subject
to the remaining provisions of the Plan (including, in the case of a President or Above, the
offset for his SERP Cash Account). However, if approved by the Committee, while the
Participant is receiving salary continuation benefits, he shall continue to be credited with
(i) Years of Credited Service to determine his vested status for involuntary termination
purposes under the SERP under Section 5.1(b) and (ii) Years of Early Retirement Service for
purposes of his Early Retirement Date (as applicable only to a Vice President).
	 
	10.2	 	Leaves of Absence, Severance Pay. A Participant’s annual compensation and Years of
Credited Service shall include leaves of absence authorized by the Company and such other
periods of employment as determined by the Committee. However, the Participant’s annual
compensation and Years of Credited Service shall not include any period following his
Separation from Service during which he receives severance pay.
	 
	10.3	 	Actuarial Assumptions. The Company may amend the Plan to change the Actuarial
Assumptions, subject to applicable law and the requirements of Section 409A of the Code. A
Participant or any beneficiary shall not be entitled to any grandfathering of benefits in the
event of any change in Actuarial Assumptions, subject to applicable law and the requirements
of Section 409A of the Code. For purposes of actuarially equivalent Alternative Annuity Forms
under Section 7.6, at any given time the same Actuarial Assumptions and methods must be used
in valuing each Alternative Annuity Form in determining whether the payments are actuarially
equivalent and such Actuarial Assumptions and methods must be reasonable. The foregoing
requirement applies over the entire term of the Participant’s participation in the Plan, such
that the Alternative Annuity Form’s payments must be actuarially equivalent at all times. The
same Actuarial Assumptions and methods need not be used over the term of a Participant’s
participation in the Plan. Accordingly, the Company may amend the Plan to change the
Actuarial Assumptions and methods used to determine the payments under the Alternative Annuity
Forms, provided that all of the Actuarial Assumptions and methods are reasonable.
	 
	10.4	 	Discretionary Acceleration of Payments. The provisions of the 2008 Deferred
Compensation Plan shall govern the discretionary acceleration of payments for a Participant
who is a President or Above. For a Participant who is a Vice President, to the extent
permitted by Section 409A of the Code, the Committee may, in its sole discretion, accelerate
the time or schedule of a payment under the Plan as provided in this Section. The provisions
of this Section are intended to comply with the exception to accelerated payments under
Treasury Regulation Section 1.409A-3(j) and shall be interpreted and administered accordingly.

	 	(a)	 	Domestic Relations Orders. The Committee may, in its sole discretion,
accelerate the time or schedule of a payment under the Plan to an individual other than
the Participant as may be necessary to fulfill a domestic relations order (as defined
in Section 414(p)(1)(B) of the Code).

-23-

 

	 	(b)	 	Conflicts of Interest. The Committee may, in its sole discretion,
provide for the acceleration of the time or schedule of a payment under the Plan to the
extent necessary for any Federal officer or employee in the executive branch to comply
with an ethics agreement with the Federal government. Additionally, the Committee may,
in its sole discretion, provide for the acceleration of the time or schedule of a
payment under the Plan to the extent reasonably necessary to avoid the violation of an
applicable Federal, state, local, or foreign ethics law or conflicts of interest law
(including where such payment is reasonably necessary to permit the Participant to
participate in activities in the normal course of his position in which the Participant
would otherwise not be able to participate under an applicable rule).
	 
	 	(c)	 	Employment Taxes. The Committee may, in its sole discretion, provide
for the acceleration of the time or schedule of a payment under the Plan to pay the
Federal Insurance Contributions Act (FICA) tax imposed under Sections 3101, 3121(a),
and 3121(v)(2) of the Code, or the Railroad Retirement Act (RRTA) tax imposed under
Sections 3201, 3211, 3231(e)(1), and 3231(e)(8) of the Code, where applicable, on
compensation deferred under the plan (the FICA or RRTA amount). Additionally, the
Committee may, in its sole discretion, provide for the acceleration of the time or
schedule of a payment, to pay the income tax at source on wages imposed under Section
3401 of the Code or the corresponding withholding provisions of applicable state,
local, or foreign tax laws as a result of the payment of the FICA or RRTA amount, and
to pay the additional income tax at source on wages attributable to the pyramiding
Section 3401 of the Code wages and taxes. However, the total payment under this
acceleration provision must not exceed the aggregate of the FICA or RRTA amount, and
the income tax withholding related to such FICA or RRTA amount.
	 
	 	(d)	 	Limited Cash-Outs. Subject to the mandatory six month delay provisions
of the Plan following a Participant’s Separation from Service, the Committee may, in
its sole discretion, require a mandatory lump sum payment of amounts deferred under the
Plan that do not exceed the applicable dollar amount under Section 402(g)(1)(B) of the
Code, provided that the payment results in the termination and liquidation of the
entirety of the Participant’s interest under the Plan, including all agreements,
methods, programs, or other arrangements with respect to which deferrals of
compensation are treated as having been deferred under a single nonqualified deferred
compensation plan under Section 409A of the Code.
	 
	 	(e)	 	Payment Upon Income Inclusion Under Section 409A. Subject to the
mandatory six month delay provisions of the Plan following a Participant’s Separation
from Service, the Committee may, in its sole discretion, provide for the acceleration
of the time or schedule of a payment under the Plan at any time the plan fails to meet
the requirements of Section 409A of the Code. The payment may not exceed the amount
required to be included in income as a result of the failure to comply with the
requirements of Section 409A of the Code.
	 
	 	(f)	 	Certain Payments to Avoid a Nonallocation Year Under Section 409(p).
Subject to the mandatory six month delay provisions of the Plan following a
Participant’s Separation from Service, the Committee may, in its sole discretion,
provide for the acceleration of the time or schedule of a payment under the Plan to
prevent the occurrence of a nonallocation year (within the meaning of Section 409(p)(3)
of the Code) in the plan year of an employee stock ownership plan next following the
plan year in which such payment

-24-

 

	 	 	 	is made, provided that the amount paid may not exceed 125 percent of the minimum
amount of payment necessary to avoid the occurrence of a nonallocation year.

	 	(g)	 	Payment of State, Local, or Foreign Taxes. Subject to the mandatory
six month delay provisions of the Plan following a Participant’s Separation from
Service, the Committee may, in its sole discretion, provide for the acceleration of the
time or schedule of a payment under the Plan to reflect payment of state, local, or
foreign tax obligations arising from participation in the Plan that apply to an amount
deferred under the Plan before the amount is paid or made available to the participant
(the state, local, or foreign tax amount). Such payment may not exceed the amount of
such taxes due as a result of participation in the Plan. The payment may be made in
the form of withholding pursuant to provisions of applicable state, local, or foreign
law or by payment directly to the Participant. Additionally, the Committee may, in its
sole discretion, provide for the acceleration of the time or schedule of a payment
under the Plan to pay the income tax at source on wages imposed under Section 3401 of
the Code as a result of such payment and to pay the additional income tax at source on
wages imposed under Section 3401 of the Code attributable to such additional wages and
taxes. However, the total payment under this acceleration provision must not exceed
the aggregate of the state, local, and foreign tax amount, and the income tax
withholding related to such state, local, and foreign tax amount.
	 
	 	(h)	 	Certain Offsets. Subject to the mandatory six month delay provisions
of the Plan following a Participant’s Separation from Service, the Committee may, in
its sole discretion, provide for the acceleration of the time or schedule of a payment
under the Plan as satisfaction of a debt of the Participant to the Company (or any
entity which would be considered to be a single employer with the Company under Section
414(b) or Section 414(c) of the Code), where such debt is incurred in the ordinary
course of the service relationship between the Company (or any entity which would be
considered to be a single employer with the Company under Section 414(b) or Section
414(c) of the Code) and the Participant, the entire amount of reduction in any of the
service recipient’s (as defined in Section 409A of the Code) taxable years does not
exceed $5,000, and the reduction is made at the same time and in the same amount as the
debt otherwise would have been due and collected from the Participant.
	 
	 	(i)	 	Bona Fide Disputes As To A Right To A Payment. Subject to the
mandatory six month delay provisions of the Plan following a Participant’s Separation
from Service, the Committee may, in its sole discretion, provide for the acceleration
of the time or schedule of a payment under the Plan where such payments occur as part
of a settlement between the Participant and the Company (or any entity which would be
considered to be a single employer with the Company under Section 414(b) or Section
414(c) of the Code) of an arm’s length, bona fide dispute as to the Participant’s right
to the deferred amount.
	 
	 	(j)	 	Plan Terminations and Liquidations. Subject to the mandatory six month
delay provisions of the Plan following a Participant’s Separation from Service, the
Committee may, in its sole discretion, provide for the acceleration of the time or
schedule of a payment under the Plan as provided in Section 12.2.
	 
	 	(k)	 	Other Events and Conditions. Subject to the mandatory six month delay
provisions of the Plan following a Participant’s Separation from Service, a payment may
be accelerated upon such other events and conditions as the Internal Revenue Service
may prescribe in generally applicable guidance published in the Internal Revenue
Bulletin.

-25-

 

	 	 	Except as otherwise specifically provided in the Plan, the Committee may not accelerate the
time or schedule of any payment or amount scheduled to be paid under the Plan within the
meaning of Section 409A of the Code.
	 
	10.5	 	Delay of Payments. The provisions of the 2008 Deferred Compensation Plan shall
govern the delay of payments for a Participant who is a President or Above. For a Participant
who is a Vice President, to the extent permitted under Section 409A of the Code, the Committee
may, in its sole discretion, delay payment under any of the following circumstances, provided
that the Committee treats all payments to similarly situated Participants on a reasonably
consistent basis:

	 	(a)	 	Payments Subject To Section 162(m). A payment may be delayed to the
extent that the Committee reasonably anticipates that if the payment were made as
scheduled, the Company’s deduction with respect to such payment would not be permitted
due to the application of Section 162(m) of the Code. If a payment is delayed pursuant
to this Section, then the payment must be made either (i) during the Company’s first
taxable year in which the Committee reasonably anticipates, or should reasonably
anticipate, that if the payment is made during such year, the deduction of such payment
will not be barred by application of Section 162(m) of the Code, or (ii) during the
period beginning with the first business day of the seventh month following the
Participant’s Separation from Service (the “six month anniversary”) and ending on the
later of (I) the last day of the taxable year of the Company in which the six month
anniversary occurs or (II) the 15th day of the third month following the six month
anniversary. Where any scheduled payment to a specific Participant in a Company’s
taxable year is delayed in accordance with this paragraph, all scheduled payments to
that Participant that could be delayed in accordance with this paragraph must also be
delayed. The Committee may not provide the Participant an election with respect to the
timing of the payment under this Section. For purposes of this Section, the term
Company includes any entity which would be considered to be a single employer with the
Company under Section 414(b) or Section 414(c) of the Code.
	 
	 	(b)	 	Federal Securities Laws or Other Applicable Law. A Payment may be
delayed where the Committee reasonably anticipates that the making of the payment will
violate federal securities laws or other applicable law; provided that the delayed
payment is made at the earliest date at which the Committee reasonably anticipates that
the making of the payment will not cause such violation. For purposes of the preceding
sentence, the making of a payment that would cause inclusion in gross income or the
application of any penalty provision or other provision of the Code is not treated as a
violation of applicable law.
	 
	 	(c)	 	Other Events and Conditions. A payment may be delayed upon such other
events and conditions as the Internal Revenue Service may prescribe in generally
applicable guidance published in the Internal Revenue Bulletin.

	10.6	 	Actual Date of Payment. The provisions of the 2008 Deferred Compensation Plan shall
govern the actual date of payment for a Participant who is a President or Above. For a
Participant who is a Vice President, to the extent permitted by Section 409A of the Code, the
Committee may delay payment in the event that it is not administratively possible to make
payment on the date (or within the periods) specified in the Plan, or the making of the
payment would jeopardize the ability of the Company (or any entity which would be considered
to be a single employer with the Company under Section 414(b) or Section 414(c) of the Code)
to continue as a going concern.

-26-

 

	 	 	Notwithstanding the foregoing, payment must be made no later than the latest possible date
permitted under Section 409A of the Code.

	10.7	 	Discharge of Obligations. The payment to a Participant who is a Vice President or
his beneficiary of his entire benefit under the Plan, or the transfer of the entire Plan
benefit of a Participant who is a President or Above to the 2008 Deferred Compensation Plan,
shall discharge all obligations of the Affiliated Group to such Participant or beneficiary
under the Plan with respect to that Plan benefit.
	 
	10.8	 	USERRA. To the extent permitted by Section 409A of the Code, the Committee may, in
its sole discretion, modify the rules applicable to payment elections and subsequent deferral
elections to the extent necessary to satisfy the requirements of the Uniformed Service
Employment and Reemployment Rights Act of 1994, as amended, 38 U.S.C. 4301-4334.
	 
	10.9	 	Compliance with Section 409A of the Code. 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 paid or made available to Participants or
beneficiaries. The Plan shall be construed, administered, and governed in a manner that
effects such intent, and the Committee shall not take any action that would be inconsistent
with such intent.
	 
	 	 	Although the Committee shall use its best efforts to avoid the imposition of taxation,
interest and penalties under Section 409A of the Code, the tax treatment of deferrals under
the Plan is not warranted or guaranteed. Neither the Company, an Affiliate, the Board, nor
the Committee (nor any of its designees) shall be held liable for any taxes, interest,
penalties or other monetary amounts owed by any Participant, beneficiary or other taxpayer
as a result of the Plan.
	 
	 	 	Any reference in the 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. For
purposes of the Plan, the phrase “permitted by Section 409A of the Code,” or words or
phrases of similar import, means that the event or circumstance shall only be permitted to
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.

-27-

 

ARTICLE XI

ADMINISTRATION AND FINANCING

	11.1	 	Plan Administration. The SERP is administered by the Committee. The Committee is
responsible for the administration of the SERP and may also delegate certain administrative
functions to other persons. The Committee possesses the sole and absolute discretionary
authority to interpret and construe the provisions of the SERP, as well as to make all
determinations under the SERP, such as eligibility, benefits, service credit and
distributions. The Committee’s interpretations and determinations are conclusive on all
interested parties.
	 
	11.2	 	Claims Procedures. Any Participant or beneficiary (a “Claimant”) who believes that
he is entitled to a benefit under the Plan which he has not received may submit a claim to the
Committee. Claims for benefits under the Plan shall be made in writing, signed by the
Claimant or his authorized representative, and must specify the basis of the Claimant’s
complaint and the facts upon which he relies in making such claim. A claim shall be deemed
filed when received by the Committee.
	 
	 	 	In the event a claim for benefits is wholly or partially denied by the Committee, the
Committee shall notify the Claimant in writing of the denial of the claim within a
reasonable period of time, but not later than ninety (90) days after receipt of the claim,
unless special circumstances require an extension of time for processing, in which case the
ninety (90) day period may be extended to 180 days. The Committee shall notify the Claimant
in writing of any such extension. A notice of denial shall be written in a manner
reasonably calculated to be understood by the Claimant, and shall contain (i) the specific
reason or reasons for denial of the claim, (ii) a specific reference to the pertinent Plan
provisions upon which the denial is based, (iii) a description of any additional material or
information necessary for the Claimant to perfect the claim, together with an explanation of
why such material or information is necessary and (iv) an explanation of the Plan’s review
procedure.
	 
	 	 	Within sixty (60) days of the receipt by the Claimant of the written notice of denial of the
claim, the Claimant may appeal by filing with the Committee a written request for a full and
fair review of the denial of the Claimant’s claim for benefits. Appeal requests under the
Plan shall be made in writing, signed by the Claimant or his authorized representative, and
must specify the basis of the Claimant’s complaint and the facts upon which he relies in
making such appeal. An appeal request shall be deemed filed when received by the Committee.
	 
	 	 	The Committee shall render a decision on the claim appeal promptly, but not later than sixty
(60) days after the receipt of the Claimant’s request for review, unless special
circumstances (such as the need to hold a hearing, if necessary), require an extension of
time for processing, in which case the sixty (60) day period may be extended to 120 days.
The Committee shall notify the Claimant in writing of any such extension. The decision upon
review shall be written in a manner reasonably calculated to be understood by the Claimant,
and shall contain (i) the specific reason or reasons for denial of the claim, (ii) a
specific reference to the pertinent Plan provisions upon which the denial is based, (iii) a
statement that the Claimant shall be provided, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other information relevant to the
claim for benefits and (iv) a statement of the Claimant’s right to bring an action under
Section 502(a) of ERISA, if the adverse benefit determination is sustained on appeal.

-28-

 

	 	 	No lawsuit by a Claimant may be filed prior to exhausting the Plan’s administrative appeal
process. Any lawsuit must be filed no later than the earlier of one year after the
Claimant’s claim for benefit was denied or the date the cause of action first arose.

	11.3	 	Committee Authority. The Committee shall have the authority to make, amend,
interpret, and enforce all appropriate rules and regulations for the administration of the
SERP and decide or resolve any and all questions including interpretations of the SERP, as
provided under Section 11.1. A majority vote of the Committee members shall control any
decision. Members of the Committee may be Participants under the SERP.
	 
	11.4	 	Agents. The Committee may, from time to time, employ other agents and delegate to
them such administrative duties as it sees fit, and may from time to time consult with counsel
who may be counsel to the Company or Committee.
	 
	11.5	 	Binding Effect of Decisions. The decision or action of the Committee in respect of
any question arising out of or in connection with the administration, interpretation and
application of the Plan and the rules and regulations promulgated hereunder shall be final and
conclusive and binding upon all persons having any interest in the Plan.
	 
	11.6	 	Indemnity of Committee. The Company and each Participating Affiliate shall indemnify
and hold harmless the members of the Committee against any and all claims, loss, damage,
expense or liability arising from any action or failure to act with respect to the Plan on
account of such member’s service on the Committee, except in the case of gross negligence or
willful misconduct.
	 
	11.7	 	Plan Financing. The Company and the Participating Affiliates are responsible for
providing retirement benefits. All benefits payable under the Plan are paid from the general
assets of a Participant’s employer, whether the Company or a Participating Affiliate, and
shall be a general unsecured claim of the employer. A trust, which is considered part of his
employer’s general assets, may be established to pay benefits for the Traditional SERP Benefit
pursuant to Section 11.11. In the event of a change in control (as defined in the Newell
Rubbermaid Inc. 2003 Stock Plan, as amended from time to time), assets in the trust shall be
used to pay his benefit. If the Participant’s employer, whether the Company or a
Participating Affiliate, therefore, ever experiences bankruptcy or insolvency, he shall be an
unsecured creditor thereof. The Participant’s claim against the employer’s assets shall be
considered together with its other unsecured general creditors.
	 
	11.8	 	Unfunded Plan. The SERP is an unfunded plan maintained primarily to provide deferred
compensation benefits for a select group of “management or highly compensated employees”
within the meaning of Sections 201, 301, and 401 of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), and therefore is exempt from the provisions of Parts 2, 3
and 4 of Title I of ERISA. Accordingly, the Company or Participating Affiliate may terminate
the SERP and make no further benefit payments, or remove certain employees as Participants if
it is determined by the United States Department of Labor, a court of competent jurisdiction,
or an opinion of counsel that the SERP constitutes an employee pension benefit plan within the
meaning of Section 3(2) of ERISA (as currently in effect or hereafter amended) which is not so
exempt, subject to the requirements of Section 409A of the Code.
	 
	11.9	 	Company Obligation. The obligation to make benefit payments to any Participant under
the SERP shall be an obligation solely of the Company or a Participating Affiliate with
respect to the benefit receivable from the Company or a Participating Affiliate and shall not
be an obligation of another company.

-29-

 

	11.10	 	Unsecured General Creditor. A Participant and his beneficiaries shall have no legal
or equitable rights, interest or claims in any property or assets of the Company or a
Participating Affiliate, nor shall they be beneficiaries of, or have any rights, claims or
interests in, any life insurance policies, annuity contracts or the proceeds therefrom owned
or which may be acquired by the Company or a Participating Affiliate. Such policies or other
assets shall not be held for the benefit of Participants and their beneficiaries, or held in
any way as collateral security for the fulfilling of the obligations of the Company or a
Participating Affiliate under the SERP. Any and all of the assets of the Company and a
Participating Affiliate shall be, and remain, the general, unpledged, unrestricted assets
thereof. The Company and Participating Affiliate’s obligations under the SERP shall be that
of an unfunded and unsecured promise to pay money in the future.
	 
	11.11	 	Trust Fund. The Company or a Participating Affiliate shall be responsible for the
payment of all benefits provided under the SERP regarding a Participant employed by the
Company or Participating Affiliate. At its discretion, the Company may establish one or more
trusts, with such trustees as the Company may approve, for the purpose of providing for the
payment of such benefits. Such trust or trusts may be irrevocable, but the assets thereof
shall be subject to the claims of the Company or Participating Affiliate’s creditors. To the
extent any benefits provided under the SERP are actually paid from any such trust, the Company
or Participating Affiliate shall have no further obligation with respect thereto, but to the
extent not so paid, such benefits shall remain the obligation of, and shall be paid by, the
Company or Participating Affiliate.

-30-

 

ARTICLE XII

AMENDMENT AND TERMINATION

	12.1	 	Amendment. The plan sponsor of the Plan is the Company, which has the right to
terminate or amend the provisions of the Plan for any reason and at any time, including the
reduction of accrued benefits and optional forms of payment under the Plan. Any amendment may
provide different benefits or amounts of benefits from those set forth hereunder. However,
the termination or amendment of the Plan shall not violate applicable law or the requirements
of Section 409A of the Code.
	 
	12.2	 	Payments Upon Termination of Plan. In the event that the Plan is terminated, the
vested benefits of a Participant shall be paid to the Participant or his beneficiary on the
dates on which the Participant or his beneficiary would otherwise receive payments hereunder
(or, if applicable, under the 2008 Deferred Compensation Plan) without regard to the
termination of the Plan. Notwithstanding the preceding sentence, and subject to the mandatory
six month delay provisions of the Plan following a Participant’s Separation from Service:

	 	(a)	 	Liquidation; Bankruptcy. The Board shall have the authority, in its
sole discretion, to terminate the Plan and pay each Participant’s entire vested benefit
to the Participant or, if applicable, his beneficiary within twelve (12) months of a
corporate dissolution taxed under Section 331 of the Code or with the approval of a
bankruptcy court pursuant to 11 U.S.C. 503(b)(1)(A), provided that the amounts are
included in the Participant’s gross income in the latest of the following years (or, if
earlier, the taxable year in which the amount is actually or constructively received):
(i) the calendar year in which the Plan termination and liquidation occurs; (ii) the
first calendar year in which the amount is no longer subject to a substantial risk of
forfeiture as defined under Section 409A of the Code; or (iii) the first calendar year
in which the payment is administratively practicable.
	 
	 	(b)	 	Change in Control. The Board shall have the authority, in its sole
discretion, to terminate the Plan and pay each Participant’s entire vested benefit to
the Participant or, if applicable, his beneficiary pursuant to an irrevocable action
taken by the Board within the 30 days preceding or the 12 months following a Change in
Control, provided that this subsection will only apply if all agreements, methods,
programs, and other arrangements sponsored by the Company (or any entity which would be
considered to be a single employer with the Company under Section 414(b) or Section
414(c) of the Code) immediately after the time of the Change in Control event with
respect to which deferrals of compensation are treated as having been deferred under a
single plan under Section 409A of the Code are terminated and paid with respect to each
Participant that experienced the Change in Control event, so that under the terms of
the termination and payment all such Participants are required to receive all amounts
of compensation deferred under the terminated agreements, methods, programs, and other
arrangements within 12 months of the date the Company (or any entity which would be
considered to be a single employer with the Company under Section 414(b) or Section
414(c) of the Code) irrevocably takes all necessary action to terminate and liquidate
the agreements, methods, programs, and other arrangements.
	 
	 	(c)	 	Discretionary Terminations. The Board shall have the authority, in its
sole discretion, to terminate the Plan and pay each Participant’s entire vested benefit
to the Participant or, if applicable, his beneficiary, provided that: (i) the
termination and liquidation does not

-31-

 

	 	 	 	occur proximate to a downturn in the financial health of the Company (or any entity
which would be considered to be a single employer with the Company under Section
414(b) or Section 414(c) of the Code); (ii) the Company (or any entity which would
be considered to be a single employer with the Company under Section 414(b) or
Section 414(c) of the Code) terminates and liquidates all agreements, methods,
programs, and other arrangements sponsored by the Company (or any entity which would
be considered to be a single employer with the Company under Section 414(b) or
Section 414(c) of the Code) that would be aggregated with any terminated and
liquidated agreements, methods, programs, and other arrangements under Section 409A
of the Code if the same Participant had deferrals of compensation under all of the
agreements, methods, programs, and other arrangements that are terminated and
liquidated; (iii) no payments in liquidation of the Plan are made within 12 months
of the date the Board takes all necessary action to irrevocably terminate and
liquidate the Plan other than payments that would be payable under the terms of the
Plan if the action to terminate and liquidate the Plan had not occurred; (iv) all
payments are made within 24 months of the date the Board takes all necessary action
to irrevocably terminate and liquidate the Plan; and (v) the Company (or any entity
which would be considered to be a single employer with the Company under Section
414(b) or Section 414(c) of the Code) does not adopt a new plan that would be
aggregated with any terminated and liquidated plan under Section 409A of the Code if
the same Participant participated in both plans, at any time within three years
following the date the Board takes all necessary action to irrevocably terminate and
liquidate the Plan.

	 	(d)	 	Other Events. The Board shall have the authority, in its sole
discretion, to terminate the Plan and pay each Participant’s entire vested benefit to
the Participant or, if applicable, his beneficiary upon such other events and
conditions as the Internal Revenue Service may prescribe in generally applicable
guidance published in the Internal Revenue Bulletin.

-32-

 

ARTICLE XIII

MISCELLANEOUS

	13.1	 	Nonalienation of Deferred Compensation. Except as permitted by the Plan, 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 and subject to Section 10.4(a), the Committee may honor a judgment, order or decree from
a state domestic relations court which requires the payment of part or all of a Participant’s
or beneficiary’s interest under the Plan to an “alternate payee” as defined in Section 414(p)
of the Code.
	 
	13.2	 	Protective Provisions. A Participant will cooperate with the Company by furnishing
any and all information requested by the Company, in order to facilitate the payment of
benefits hereunder and by taking such physical examinations as the Company may deem necessary
and taking such other action as may be requested by the Company.
	 
	13.3	 	Gender and Number. Whenever any words are used herein in the masculine, they shall
be construed as though they were used in the feminine and the neuter in all cases where they
would so apply; and, wherever any words are used herein in the singular or in the plural, they
shall be construed as though they were used in the plural or the singular, as the case may be,
in all cases where they would so apply.
	 
	13.4	 	Captions. The captions of the articles, sections and paragraphs of the SERP are for
convenience only and shall not control or affect the meaning or construction of any of its
provisions.
	 
	13.5	 	Governing Law. The provisions of the SERP shall be construed and interpreted
according to the laws of the State of Delaware, except to the extent preempted by ERISA.
	 
	13.6	 	Validity. In case any provision of the SERP shall be held illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts hereof and the SERP
shall be construed and enforced as if such illegal and invalid provision had never been
inserted herein.
	 
	13.7	 	Notice. Any notice or filing required or permitted to be given to the Committee
under the SERP shall be sufficient if in writing and hand delivered, or sent by registered or
certified mail to any member of the Committee or the Secretary of the Company. Such notice
shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the
date shown on the postmark on the receipt for registration or certification. Mailed notice to
the Committee shall be directed to the Company’s address. Mailed notice to a Participant,
eligible spouse, surviving spouse or beneficiary shall be directed to the individual’s last
known address in the Company’s records.
	 
	13.8	 	Successors. The provisions of the SERP shall bind and inure to the benefit of the
Company and its successors and assigns. The term successors as used herein shall include any
corporate or other business entity which shall, whether by merger, consolidation, purchase or
otherwise, acquire all or substantially all of the business and assets of the Company or a
Participating Affiliate, and successors of any such corporation or other business entity.

-33-

 

	13.9	 	Withholding. The Company shall withhold from payments made hereunder to any
Participant or beneficiary any taxes required to be withheld from such payments under federal,
state or local law.
	 
	13.10	 	Payment to Guardian. If a SERP benefit is payable to a minor or a person declared
incompetent or to a person incapable of handling the disposition of property, the Committee
may direct payment of such SERP benefit to the guardian, legal representative or person having
the care and custody of such minor, incompetent or person. The Committee may require proof of
incompetency, minority, incapacity or guardianship as it may deem appropriate prior to
distribution of the SERP benefit. Such distribution shall completely discharge the Company
and Participating Affiliate from all liability with respect to such benefit.
	 
	13.11	 	Miscellaneous Employment. The establishment of the SERP does not give a Participant
the legal right to be continued as an employee. The Company or any Affiliate may terminate a
Participant’s employment whenever, in its judgment, it becomes necessary to do so, subject to
the applicable terms of an employment agreement. Further, a Participant’s eligibility or his
right to benefits under the SERP should not be interpreted as any guarantee of employment.
	 
	13.12	 	Reclassification. In the event that any lawsuit or any settlement thereof or any
claim, or if any governmental agency, court or other governing body, requires the Company to
reclassify the employment status of any individual who is excluded from participation under
the SERP, such reclassified individual nevertheless shall not be considered an eligible
employee or otherwise eligible for the SERP and, therefore, shall not be entitled to accrue
benefits under the SERP as a result thereof.

-34-

 

ARTICLE XIV

2004 PLAN

	14.1	 	Grandfathered Participant. The 2004 Plan as in existence on October 3, 2004 shall
exclusively govern the benefits payable to any participant of the 2004 Plan who was vested as
of December 31, 2004, ceased to be an employee of the Affiliated Group prior to January 1,
2005 and otherwise accrued no further benefit under the 2004 Plan after December 31, 2004 (a
“Grandfathered Participant”). A Grandfathered Participant, therefore, includes an individual
who was in pay status under the 2004 Plan as of December 31, 2004 or who ceased to be an
employee of the Affiliated Group prior to January 1, 2005 and who was entitled to a vested
benefit under the 2004 Plan (even if the benefit had not begun by December 31, 2004). The
2004 Plan as in existence on October 3, 2004 has not been modified with respect to any
Grandfathered Participant. Accordingly, pursuant to the foregoing, the 2004 Plan as in
existence on October 3, 2004 shall continue to apply by its terms to each Grandfathered
Participant, without regard to any provision of Section 409A of the Code.
	 
	14.2	 	Interim Participant. The 2004 Plan as amended after October 3, 2004 (under which
benefits commenced at the same time as the Pension Plan) shall govern the benefits payable to
each participant of the 2004 Plan who was an employee of the Affiliated Group at any time on
or after January 1, 2005 but not on and after January 1, 2008 and had commenced receipt of
benefits by December 31, 2007 (an “Interim Participant”). An Interim Participant, therefore,
includes an individual who ceased to be an employee of the Affiliated Group prior to January
1, 2008 and commenced his benefit under the 2004 Plan. Accordingly, pursuant to the
foregoing, the 2004 Plan shall apply to each Interim Participant and the Plan hereunder shall
not apply to the benefit of the Interim Participant, except as provided by Section 14.3 and
under the provisions of the Plan regarding the reemployment of any Interim Participant.
Further, the benefit of an Interim Participant being paid under the 2004 Plan shall be fixed
and not change, except as permitted under Section 409A of the Code.
	 
	14.3	 	2004 Plan, Retroactive Section 409A Amendment. The Company’s adoption of the Plan
hereunder shall be considered an amendment to the 2004 Plan as in effect on January 1, 2005,
to be effective as of January 1, 2005, to comply with Section 409A of the Code with respect to
any Participant of the Plan hereunder who was a participant of the 2004 Plan and an employee
of the Affiliated Group at any time on or after January 1, 2005 and, therefore, including an
Interim Participant (together, a “2004 Plan Participant”).
	 
	 	 	The foregoing amendment to the 2004 Plan regarding a 2004 Plan Participant shall include
compliance with Section 409A of the Code in the manner provided under Section 10.9 and any
other Section of the Plan which refers to Section 409A of the Code which was in effect under
Section 409A of the Code during the period through December 31, 2007, subject to the
application of any transition relief available under Section 409A of the Code.
	 
	 	 	The foregoing amendment to the 2004 Plan to effect compliance with Section 409A of the Code,
as applicable solely to a 2004 Plan Participant, therefore, shall not include a
Grandfathered Participant. The 2004 Plan as in existence on October 3, 2004 shall not be
considered amended to comply with Section 409A of the Code for any Grandfathered Participant
and, therefore, the provisions of such 2004 Plan shall hereafter continue to apply to each
Grandfathered Participant in the manner provided under Section 14.1.

-35-

 

     IN WITNESS WHEREOF, Newell Operating Company has caused this instrument to be executed by its
duly authorized officer on this 25th day of February, 2008.

	 	 	 	 	 
	 	NEWELL OPERATING COMPANY

 	 
	 	By:  	/s/ James M. Sweet
 	 
	 	 	James M. Sweet, Executive Vice
President — 	 
	 	 	Human Resources (CHRO) 	 
	 

-36-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]