Document:

exv4w1

 

THE SHARES ISSUABLE UPON VESTING OF THIS AWARD WILL NOT BE RELEASED TO YOU WITHOUT RESTRICTION
UNTIL ALL APPLICABLE MONETARY OBLIGATIONS HAVE BEEN COLLECTED FROM YOU OR HAVE OTHERWISE BEEN
PROVIDED FOR

VIRCO MFG. CORPORATION

RESTRICTED STOCK UNIT AWARD AGREEMENT

TO:      <<Participant>>

     To encourage your continued service as an employee of Virco Mfg. Corporation (the “Company”),
you have been granted this award (the “Award”) of restricted stock units (the “Stock Units”)
pursuant to the Company’s 2007 Stock Incentive Plan (the “Plan”) and subject to the terms and
conditions set forth in this agreement (this “Agreement”). Each Stock Unit represents the right to
receive one Share (as adjusted from time to time pursuant to Section 12 of this Agreement) subject
to the fulfillment of the vesting and other conditions set forth in this Agreement.

     The terms of the Award are as set forth in this Agreement and in the Plan. The Plan is
incorporated into this Agreement by reference, which means that this Agreement is limited by and
subject to the express terms and provisions of the Plan. In the event of a conflict between the
terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.
Capitalized terms that are not defined in this Agreement have the meanings given to them in the
Plan. The most important terms of the Award are summarized as follows:

	 	1.	 	Award Date:                                                             
	 
	 	2.	 	Number of Stock Units Subject to this Award:                     
	 
	 	3.	 	Consideration for this Award: $0.01 per share
	 
	 	4.	 	Vesting Base Date:                                         
	 
	 	5.	 	Vesting Schedule: The Award will vest according to the following schedule:
	 
	 	6.	 	Vesting; Settlement.

     (a) Your rights in and to the Stock Units and Shares subject to the Award shall not be
vested as of the date of grant and shall be forfeitable unless and until otherwise provided
pursuant to the terms of this Agreement. Subject to Sections 7 and 8, the Award
shall become vested in accordance with Section 5 (each a “Vesting Date”). Stock
Units awarded hereunder that have vested and are no longer subject to forfeiture are
referred to herein as “Vested Units.” Stock Units awarded hereunder that are not vested and
remain subject to forfeiture are referred to herein as “Unvested Units.”

 

 

     (b) Each Vested Unit will be settled by the delivery of one Share (subject to
adjustment under Section 12 of this Agreement) to you or, in the event of your death, to
your estate, heir or beneficiary, following the applicable Vesting Date; provided that
you have satisfied all of the tax withholding obligations described in Section 10,
and that you have completed, signed and returned any documents and taken any additional
action that the Company deems appropriate to enable it to accomplish the delivery of the
Shares. The date upon which Shares are to be issued under this Section 6(b) is
referred to as the “Settlement Date.” No fractional shares will be issued under this
Agreement.

     (c) You may not sell, transfer by gift, hypothecate, pledge or otherwise transfer any
Stock Units (whether or not vested) or any Shares subject thereto prior to the date such
Shares are issued to you pursuant to this Agreement. The Company will not be required to
(a) transfer on its books any Shares subject to the Award that have been sold or transferred
in violation of the provisions of this Agreement or (b) treat as the owner of the Stock
Units and/or Shares subject to the Award, or otherwise accord voting, dividend or
liquidation rights to, any transferee to whom such Stock Units and/or Shares have been
transferred in contravention of this Agreement.

     7. Termination of Service.

     (a) General. Except as provided elsewhere in this Section 7, the
Unvested Units of the Award will terminate automatically and be forfeited to the Company
immediately and without further notice upon the termination of your employment with the
Company for any reason

     (b) Death or Disability. Upon termination of your employment with the Company
by reason of your death or Disability (as defined below), all Unvested Units shall vest as
of the date of such termination. For purposes of this Agreement, “Disability” shall mean a
condition under which you are either (a) unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less
than twelve months or (b) is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than twelve months, receiving income replacement benefits for
a period of not less than three months under an accident and health plan.

     8. Effect of Change in Control. Notwithstanding anything herein to the contrary, all Unvested
Units shall vest immediately prior to the occurrence of a Change in Control. For purposes of this
Agreement, the term “Change in Control” shall mean the first to occur of:

     (a) an acquisition (other than directly from the Company after advance approval by a
majority of the Incumbent Board (as defined below)) of Shares or other voting securities of
the Company by any “person” (as the term person is used for purposes of Section 13(d) or
14(d) of the Securities Exchange Act of 1934, as amended

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(the “Exchange Act”)), other than
the Company, any Subsidiary, any employee benefit plan of the Company or any Subsidiary, or
any person in connection with a transaction described in Section 8(c), immediately
after which such person has “beneficial
ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50%
or more of the then outstanding Shares or the combined voting power of the Company’s then
outstanding voting securities;

     (b) the individuals who, as of the Award Date set forth above, are members of the Board
(the “Incumbent Board”), cease for any reason during any 24-month period to constitute at
least a majority of the members of the Board; provided, however, that if the election, or
nomination for election by the Company’s common stockholders, of any new director was
approved by a vote of at least a majority of the Incumbent Board, such new director shall,
for purposes of this Agreement, be considered as a member of the Incumbent Board; or

     (c) the consummation of: (i) a merger, consolidation or reorganization with or into the
Company, unless the stockholders of the Company, immediately before such merger,
consolidation or reorganization, own directly or indirectly immediately following such
merger, consolidation or reorganization, at least 50% of the combined voting power of the
outstanding voting securities of the entity resulting from such merger or consolidation or
reorganization in substantially the same proportion as their ownership of the voting
securities immediately before such merger, consolidation or reorganization; (B) a complete
liquidation or dissolution of the Company; or (C) the sale, lease, transfer or other
disposition of all or substantially all of the assets of the Company to any person (other
than a transfer to a Subsidiary).

     9. Status of Participant. Except as set forth in Section 13, until the Stock Units
are converted to Shares pursuant to Section 6(b), you will have no rights as a stockholder
(including, without limitation, any voting or dividend rights with respect to the Shares).
Following the conversion of the Stock Units to Shares, you will be recorded as a stockholder of the
Company with respect to the Shares subject to the Award and will have voting and dividend rights
with respect to the Shares, unless and until any such Shares are transferred back to the Company.

     10. Consideration and Taxes.

     (a) You are ultimately liable and responsible to pay the Per Share Consideration for
any Shares issuable under the Award and for all taxes owed in connection with the Award.
The Company does not make any representation or undertaking regarding the treatment of any
tax withholding in connection with the grant or vesting of the Award or any subsequent sale
of Shares issuable pursuant to the Award. The Company does not commit and is under no
obligation to structure the Award to reduce or eliminate your tax liability. In addition,
the Company may refuse to transfer or release any Shares to you until you pay the Per Share
Consideration for any Shares issuable under the Award.

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     (b) Prior to any event in connection with the Award (e.g., vesting or payment in
respect of the Award) that the Company determines may result in any domestic or
foreign tax withholding obligation, whether national, federal, state or local,
including any social tax obligation (the “Tax Withholding Obligation”), you are required to
arrange for the satisfaction of the amount of such Tax Withholding Obligation in a manner
acceptable to the Company.

     (i) Unless the Committee provides otherwise, at any time not less than five (5)
business days before any Tax Withholding Obligation arises (e.g., a Settlement
Date), you must notify the Company of your election to pay your Tax Withholding
Obligation by wire transfer, cashier’s check or other means permitted by the
Company. In such case, you will satisfy his or her tax withholding obligation by
paying to the Company on such date as it shall specify an amount that the Company
determines is sufficient to satisfy the expected Tax Withholding Obligation by (i)
wire transfer to such account as the Company may direct, (ii) delivery of a
cashier’s check payable to the Company, Attn: General Counsel, at the Company’s
principal executive offices, or such other address as the Company may from time to
time direct, or (iii) such other means as the Company may establish or permit. You
agree and acknowledge that prior to the date a Tax Withholding Obligation arises, if
any, the Company will be required to estimate the amount of the Tax Withholding
Obligation and accordingly may require the amount paid to the Company under this
Section 10(b)(i) to be more than the minimum amount that may actually be due
and that, if you have not delivered payment of a sufficient amount to the Company to
satisfy the Tax Withholding Obligation (regardless of whether as a result of the
Company underestimating the required payment or your failure to timely make the
required payment), the additional Tax Withholding Obligation amounts shall be
satisfied in the manner specified herein, as the Company shall determine in its sole
discretion.

     (ii) Unless you choose to satisfy the Tax Withholding Obligation, if any, by
some other means in accordance with Section 10(b)(i) above, your acceptance
of this Award constitutes your instruction and authorization to the Company to
withhold, at the time or times when a Tax Withholding Obligation arises, from the
Shares then subject to Vested Units a number of Shares that the Company determines
to be sufficient to satisfy such Tax Withholding Obligation.

     (c) Notwithstanding any other provision of this Agreement to the contrary, any Tax
Withholding Obligation and the Per Share Consideration for any Shares issuable under the
Award shall not be paid by the delivery of a promissory note.

     11. Securities Law Compliance. You understand that the Company is under no obligation to
register for resale the Shares, whether vested or unvested. The Company may impose such
restrictions, conditions or limitations as it determines appropriate as to the timing and manner of
any resales by you or other subsequent transfers by you of any Shares issued

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under this Award,
including without limitation (i) restrictions under an insider trading policy, (ii) restrictions
that may be necessary in the absence of an effective registration statement under the Securities
Act of 1933, as amended, covering the Award and/or the Shares underlying the
Award and (iii) restrictions as to the use of a specified brokerage firm or other agent for
such resales or other transfers. You agree that any resale by you of the Shares issued pursuant to
the Award will comply in all respects with the requirements of all applicable securities laws,
rules and regulations.

     12. Adjustments to Common Stock. If the Common Stock underlying the Stock Units is increased,
decreased or exchanged for or converted into cash, property or a different number or kind of shares
or securities, or if cash, property or shares or securities are distributed in respect of such
outstanding Common Stock, in either case as a result of a reorganization, merger, consolidation,
recapitalization, restructuring, reclassification, dividend (other than a regular, quarterly cash
dividend) or other distribution, stock split, reverse stock split, spin-off or the like, or if
substantially all of the property and assets of the Company are sold, then the Company shall make
appropriate and proportionate adjustments in the number and type of Shares that may be acquired
pursuant to this Award.

     13. Dividend Equivalent Awards. From and after the Award Date and unless and until the Stock
Units are forfeited to the Company, you will be entitled to receive all dividends and other
distributions paid with respect to the Shares subject to this Award. Dividends payable by the
Company to its stockholders in cash shall, with respect to any Shares underlying Stock Units, be
paid in cash on or about the date such dividends are payable to the Company’s other stockholders,
subject to the payment of any tax withholding requirements.

     14. Limitation on Rights; No Right to Future Grants; Extraordinary Item. By
entering into this Agreement and accepting the Award, you acknowledge that: (i) the Plan is
discretionary and may be modified, suspended or terminated by the Company at any time as provided
in the Plan; (ii) the grant of the Award is a one-time benefit and does not create any contractual
or other right to receive future grants of awards or benefits in lieu of awards; (iii) all
determinations with respect to any such future grants, including, but not limited to, the times
when awards will be granted, the number of shares subject to each award, the award price, if any,
and the time or times when each award will be settled, will be at the sole discretion of the
Committee; (iv) your participation in the Plan is voluntary; (v) you will have no entitlement to
compensation or damages as a consequence of your forfeiture of any unvested portion of the Award as
a result of the termination of your employment with the Company for any reason; (vi) the future
value of the Common Stock subject to the Award is unknown and cannot be predicted with certainty,
(vii) neither the Plan, the Award nor the issuance of the Shares confers upon you any right to
continue as an employee of the Company and (viii) the grant of the Award will not be interpreted to
form an employment contract with the Company.

     15. Committee Authority. Any question concerning the interpretation of this Agreement or the
Plan, any adjustments required to be made under this Agreement or the Plan, and any controversy
that may arise under this Agreement or the Plan shall be determined by the Committee in its sole
and absolute discretion. All decisions by the Committee shall be final and binding.

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     16. Application of the Plan. The terms of this Agreement are governed by the terms of the
Plan, as it exists on the date of hereof and as the Plan is amended from time to time. In the
event of any conflict between the provisions of this Agreement and the provisions of the Plan, the
terms of the Plan shall control, except as expressly stated otherwise herein.

     17. Execution of Award Agreement. Please acknowledge your acceptance of the terms
and conditions of the Award by signing the original of this Agreement and returning it to the
Company’s Chief Financial Officer. If you do not sign and return this Agreement, the Company is
not obligated to provide you any benefit hereunder and may refuse to issue shares to you under this
Award.

     18. Vesting Blackout Dates. If a Vesting Date occurs on a date that is the subject of a
Company imposed trading blackout, the Vesting Date shall be delayed until, and shall occur on, the
commencement of the immediately succeeding Company approved trading window.

Page 6

 

	 	 	 	 	 
	 	Very truly yours,

VIRCO MFG. CORPORATION

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

Page 7

 

	 	 	 	 	 

ACCEPTANCE AND ACKNOWLEDGMENT

     I accept and agree to the terms of the Restricted Stock Unit Award described in this Agreement
and in the Plan, acknowledge receipt of a copy of this Agreement, the Plan and the applicable Plan
Summary, and acknowledge that I have read them carefully and that I fully understand their
contents.

Dated:                                         

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Taxpayer I.D. Number	 	 	 	<<Participant>>
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

Page 8exv10w1

 

EXHIBIT 10.1

AMENDED AND RESTATED

STEELCASE INC. MANAGEMENT INCENTIVE PLAN

Preamble

     
This STEELCASE INC. MANAGEMENT INCENTIVE PLAN (“Plan”)
is a program for measuring financial performance in terms of
Economic Value Added (“EVA”), and providing eligible
Employees with incentive compensation based upon EVA results.
The objective of the Plan is to encourage initiative,
resourcefulness, teamwork, motivation, and efficiency on the
part of all Employees that will result in financial success for
both the shareholders and the Employees of the Company. The Plan
provides annual and long-term incentive compensation for
eligible Employees who are in a position to make substantial
contributions toward achievement of the financial performance
goals established pursuant to the Plan.

SECTION 1

ESTABLISHMENT OF PLAN

		
	1.1 	
    Plan Document

     
This instrument, as amended from time to time, constitutes the
governing document of the Plan.

		
	1.2 	
    Effective Dates

     
The initial effective date of the Plan was June 27, 1994
and was amended and restated as of March 1, 2002. The Plan
as hereby further amended and restated is effective as of
February 24, 2007, with respect to any incentive award
established on or after such date; provided,
however, that the grant of any performance-based
compensation with respect to Plan Year 2008 and after, shall be
subject to the approval by stockholders of the Plan at the
annual meeting for the stockholders of the Company held in 2007.

		
	1.3 	
    Incentive Compensation Plan

     
The Plan is an annual and long-term compensation program for
eligible Employees. Because the Plan does not provide welfare
benefits and does not provide for the deferral of compensation
to termination of employment, it is established with the intent
and understanding that it is not an Employee benefit plan within
the meaning of the Employee Retirement Income Security Act of
1974, as amended. To the extent any award under the Plan would
become subject to Section 409A of the Code, such award
shall be granted in compliance with the requirements set forth
in Section 409A of the Code and any regulations or guidance
promulgated thereunder.

SECTION 2

DEFINITIONS

     
The following terms shall have the definition stated, unless the
context requires a different meaning:

		
	2.1 	
    Affiliate

     
“Affiliate” shall have the meaning ascribed to such
term in Rule 12b-2
of the General Rules and Regulations of the Exchange Act.

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	2.2 	
    Beneficial Owner or Beneficial Ownership

     
“Beneficial Owner” or “Beneficial Ownership”
shall have the meaning ascribed to such term in the
Rule 13d-3 of the
General Rules and Regulations of the Exchange Act.

		
	2.3 	
    Beneficiary

     
“Beneficiary” means the individual, trust, or other
entity designated by the Participant to receive any incentive
compensation payable with respect to the Participant under the
Plan after the Participant’s death. A Participant may
designate or change a Beneficiary by filing a signed designation
with the Committee in a form approved by the Committee. A
Participant’s Will is not effective for this purpose.

     
If a designation has not been completed properly and filed with
the Committee or is ineffective for any other reason, the
Beneficiary shall be the Participant’s Surviving Spouse. If
there is no effective designation and the Participant does not
have a Surviving Spouse, the remaining benefits, if any, shall
be paid to the Participant’s estate.

		
	2.4 	
    Board of Directors

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

		
	2.5 	
    Change in Control

     
“Change in Control” of the Company shall be deemed to
have occurred if the event set forth in any one of the following
paragraphs shall have occurred:

			
	 	(a) 	
    any Person (other than any Initial Holder or Permitted
    Transferee) (i) is or becomes the Beneficial Owner,
    directly or indirectly, of securities of the Company
    representing thirty percent (30%) or more of the combined voting
    power of the Company’s then outstanding securities,
    excluding any Person who becomes such a Beneficial Owner in
    connection with a transaction described in clause (i) of
    paragraph (c) below, and (ii) the combined voting
    power of the securities of the Company that are Beneficially
    Owned by such Person exceeds the combined voting power of the
    securities of the Company that are Beneficially Owned by all
    Initial Holders and Permitted Transferees at the time of such
    acquisition by such Person or at any time thereafter; or

			
	 	(b) 	
    the following individuals cease for any reason to constitute a
    majority of the number of Directors then serving: individuals
    who, on the date hereof, constitute the Board and any new
    Director (other than a Director whose initial assumption of
    office is in connection with an actual or threatened election
    contest, including but not limited to a consent solicitation,
    relating to the election of Directors of the Company) whose
    appointment or election by the Board or nomination for election
    by the Company’s shareholders was approved or recommended
    by a vote of at least two-thirds (2/3) of the Directors then
    still in office who either were Directors on the date hereof or
    whose appointment, election or nomination for election was
    previously so approved or recommended; or

			
	 	(c) 	
    there is consummated a merger or consolidation of the Company or
    any direct or indirect subsidiary of the Company with or
    involving any other corporation, other than (i) a merger or
    consolidation which would result in the voting securities of the
    Company outstanding immediately prior thereto continuing to
    represent (either by remaining outstanding or by being converted
    into voting securities of the surviving entity or any parent
    thereto), at least fifty-five percent (55%) of the combined
    voting power of the securities of the Company or such surviving
    entity or any parent thereof outstanding immediately after such
    merger or consolidation, or (ii) a merger or consolidation
    effected to implement a recapitalization of the Company (or
    similar transaction) in which no Person (other than an Initial
    Holder or Permitted Transferee) is or becomes the Beneficial
    Owner, directly or indirectly, of securities

2

 

			
	 		
    of the Company (not including in the securities Beneficially
    Owned by such Person any securities acquired directly from the
    Company or its Affiliates) representing thirty percent (30%) or
    more of the combined voting power of the Company’s then
    outstanding securities; or

			
	 	(d) 	
    the shareholders of the Company approve a plan of complete
    liquidation or dissolution of the Company or there is
    consummated an agreement for the sale or disposition by the
    Company of all or substantially all of the Company’s
    assets, other than a sale or disposition by the Company of all
    or substantially all of the Company’s assets to an entity,
    at least fifty-five percent (55%) of the combined voting power
    of the voting securities of which are owned by shareholders of
    the Company in substantially the same proportions as their
    ownership of the Company immediately prior to such sale.

     
However, in no event shall a Change in Control be deemed to have
occurred, with respect to a Participant, if the Participant is
part of a purchasing group which consummates the Change in
Control transaction. A Participant shall be deemed “part of
a purchasing group” for purposes of the preceding sentence
if the Participant is an equity participant in the purchasing
company or group (except for: (i) passive ownership of less
than three percent (3%) of the stock of the purchasing company;
or (ii) ownership of equity participant in the purchasing
company or group which is otherwise not significant, as
determined prior to the Change in Control by a majority of the
non-employee continuing Directors).

     
Notwithstanding the foregoing, a Change in Control shall not be
deemed to have occurred by virtue of the consummation of any
transaction or series of integrated transactions immediately
following which the record holders of the common stock of the
Company immediately prior to such transaction or series of
transactions continue to have substantially the same
proportionate ownership, directly or indirectly, in an entity
which owns all or substantially all of the assets of the Company
immediately following such transaction or series of transactions.

		
	2.6 	
    Code

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

		
	2.7 	
    Committee

     
“Committee” means the Compensation Committee of the
Board of Directors and shall be comprised entirely of Directors
who are considered “outside directors” under
Section 162(m) of the Code.

		
	2.8 	
    Company

     
“Company” means Steelcase Inc., including all
consolidated subsidiaries, unconsolidated or consolidated
partnerships and joint ventures of Steelcase Inc. and in the
case of determining whether a Change in Control has occurred,
the Company shall mean Steelcase Inc.

		
	2.9 	
    Covered Employee

     
“Covered Employee” shall have the meaning ascribed to
such term in Section 162(m)(3) of the Code.

3

 

		
	2.10 	
    Director

     
“Director” means any individual who is a member of the
Board.

		
	2.11 	
    Exchange Act

     
“Exchange Act” means the Securities and Exchange Act
of 1934, as amended from time to time, or any successor act
thereto.

		
	2.12 	
    EVA

     
“EVA” refers to Economic Value Added and means, with
respect to the entity for which EVA is being determined for a
Fiscal Year, the net income of that entity less a capital charge
representing the economic cost of a reasonable return on net
assets applied in the business of the entity during the Fiscal
Year and plus an acquisition allowance and plus or minus an
accounting adjustment. EVA shall be determined on the basis of
rules, definitions, and accounting principles adopted by the
Committee and modified from time to time by the Committee, as
deemed necessary and reasonable in the sole discretion of the
Committee. EVA for an entity for a Fiscal Year shall be based
upon the financial statements of the entity for the Fiscal Year
as finally determined.

		
	2.13 	
    Employee

     
“Employee” means any individual in the employ of the
Company. Independent contractors, leased Employees, and
self-employed individuals are not included.

		
	2.14 	
    Fiscal Year

     
“Fiscal Year” means the financial reporting and
taxable year of Steelcase Inc.

		
	2.15 	
    Initial Holder

     
“Initial Holder” shall have the meaning set forth in
the Second Restated Articles of Incorporation of the Company.

		
	2.16 	
    Normal Retirement Date

     
“Normal Retirement Date” means the date the
Participant attains age 65, or if earlier, the date the sum
of the Participant’s age and years of continuous service
equals or exceeds 80 (as determined for purposes of other
benefit plans maintained by Steelcase Inc.).

		
	2.17 	
    Participant

     
“Participant” means an Employee designated to
participate in this Plan for a Plan Year pursuant to
Section 4.

		
	2.18 	
    Performance Based Exception

     
“Performance Based Exception” means the performance
based exception from the tax deductibility limitations in Code
Section 162(m).

		
	2.19 	
    Permitted Transferee

     
“Permitted Transferee” shall have the meaning set
forth in the Second Restated Articles of Incorporation of the
Company and include a Permitted Trustee solely in its capacity
as a trustee of a Permitted Trust.

4

 

		
	2.20 	
    Permitted Trust

     
“Permitted Trust” shall have the meaning set forth in
the Second Restated Articles of Incorporation of the Company.

		
	2.21 	
    Permitted Trustee

     
“Permitted Trustee” shall have the meaning set forth
in the Second Restated Articles of Incorporation of the Company.

		
	2.22 	
    Person

     
“Person” shall have the meaning ascribed to such term
in Section 3(a)(9) of the Exchange Act, as modified and
used in Sections 13(d) and 14(d) thereof, including a
“group” as defined in Section 13(d) thereof,
except that such term shall not include (i) the Company or
any of its subsidiaries, (ii) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company
or any of its Affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering of such securities,
or (iv) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company.

		
	2.23 	
    Plan Year

     
“Plan Year” means the Fiscal Year of the Company, as
in effect at the time, or such other twelve month period as the
Committee shall establish.

		
	2.24 	
    Retirement

     
“Retirement” means termination of employment on or
after the Participant’s Normal Retirement Date.

		
	2.25 	
    Surviving Spouse

     
“Surviving Spouse” means the husband or wife of the
Participant at the time of the Participant’s death who
survives the Participant. If the Participant and spouse die
under circumstances that make the order of their deaths
uncertain, it shall be presumed for purposes of this Plan that
the Participant survived the spouse.

		
	2.26 	
    Total Disability

     
“Total Disability” or “Disability” means a
physical or mental condition which totally and presumably
permanently prevents an individual from performing the duties of
his or her employment. The determination of Total Disability
shall be made by the Committee through procedures established
for that purpose and on the basis of reasonable medical
examinations. The cost of any medical examination shall be an
expense of administration of the Plan.

SECTION 3

ADMINISTRATION OF PLAN

		
	3.1 	
    Administration of Plan by Committee

     
The Plan shall be administered by the Committee. The Committee
shall have full discretionary authority in the operation and
administration of the Plan. The Committee shall act by vote or
consent of a majority of its members. To the extent necessary or
appropriate, the Committee will adopt rules, policies, and forms
for the administration, interpretation, and implementation of
the Plan. The Committee may delegate administrative authority
and responsibility from time to time to and among other
committees approved by the Committee and individual Employees of
the Company, but all

5

 

actions taken pursuant to delegated authority and responsibility
shall be subject to review and change by the Committee. With
respect to awards that are intended to meet the Performance
Based Exception and that are made to a Participant who is
expected to be a Covered Employee, such delegation shall not
include any authority or responsibility which would cause the
Participant’s award to fail the Performance Based
Exception. All decisions, determinations, and interpretations of
the Plan by the Committee shall be final and binding on all
parties.

     
A member of the Committee or individual or group to whom
authority is delegated shall not participate in and shall not be
counted as a member, individual or group with respect to any
action of the Committee directly affecting only that member,
individual or group.

		
	3.2 	
    Responsibility; Indemnification

     
A member of the Committee or any other individual or group to
whom authority is delegated shall not be personally responsible
or liable for any act or omission in connection with performance
of powers or duties or the exercise of discretion or judgment in
the administration and implementation of the Plan. The Company
shall hold harmless and indemnify each member of the Committee,
and any other individual or group exercising delegated authority
or responsibility with respect to the Plan, from any and all
liabilities and costs arising from any act or omission related
to the performance of duties or the exercise of discretion and
judgment with respect to the Plan.

SECTION 4

ELIGIBILITY

		
	4.1 	
    Participation

     
An Employee who (a) is not a Covered Employee or
(b) does not directly report to the chief executive officer
of the Company (the “CEO”), shall be a Participant in
the Plan for a Plan Year upon designation as a Participant for
that year by the CEO or the Committee. When deemed appropriate
by the CEO or the Committee, the CEO or the Committee may
designate an effective date for the commencement of
participation by an Employee who is not a Covered Employee or an
Employee who does not directly report to the CEO that is
subsequent to the first day of the Plan Year.

     
A Covered Employee or an Employee who directly reports to the
CEO shall be a Participant in the Plan for a Plan Year upon
designation as a Participant for that year by the Committee.
When deemed appropriate by the Committee, the Committee may
designate an effective date for the commencement of
participation by a Covered Employee or an Employee who directly
reports to the CEO that is subsequent to the first day of the
Plan Year.

     
Designated Participants shall be notified in writing and
provided a written summary and explanation of the Plan.

		
	4.2 	
    Continuing Participation

     
Designation as a Participant for a Plan Year will continue in
effect for each succeeding Plan Year until participation is
terminated by the CEO or the Committee. The CEO or the Committee
may terminate participation by an Employee at any time with or
without cause.

6

 

SECTION 5

MEASUREMENT OF COMPANY PERFORMANCE

		
	5.1 	
    EVA Performance

     
For purposes of the Plan, financial performance of the Company
or any subdivision of the Company shall be measured by EVA. In
general, the Plan shall be administered so that the incentive
compensation provided to a Participant under the Plan for each
Plan Year is based on absolute EVA performance, improved EVA
performance relative to prior EVA performance, or a combination
of these criteria.

		
	5.2 	
    Determination of EVA

     
EVA shall be determined for each Fiscal Year by the Committee.
EVA generally shall be determined by application of accounting
principles consistently applied from year to year. Nevertheless,
the Committee shall have full authority and discretion to modify
the accounting principles and components applied in the
determination of EVA from time to time as the Committee deems
necessary or appropriate. References to EVA for a Plan Year mean
EVA for the Fiscal Year ending closest in time to the last day
of the Plan Year.

     
For most Participants, EVA and EVA performance shall be the EVA
and EVA performance determined for the Company. Nevertheless,
the Committee may determine that EVA and EVA performance
applicable to one or more Participants for a Plan Year shall be
determined with respect to a business unit comprising less than
all of Steelcase Inc., or may be based upon a weighted average
of the separate EVA or EVA performance of more than one business
unit chosen by the Committee from among Steelcase Inc. and
subsidiaries, divisions, and other subdivisions of Steelcase
Inc. If weighted averaging is applied, the Committee will
determine the weighting percentages applicable for each relevant
classification of Participants for the Plan Year, and the
percentages will be published at the time of publication of EVA
performance targets and target incentive percentages.

		
	5.3 	
    EVA and/or EVA Growth Target

     
The EVA and/or EVA growth performance targets for each Plan Year
shall be determined by the Committee and published to
Participants. Notwithstanding the preceding sentence, with
respect to awards designed to qualify for the Performance Based
Exception, the EVA and/or EVA growth performance targets shall
be established at a time (a) prior to ninety (90) days
after the commencement of the Plan Year and (b) when the
achievement of the performance targets are substantially
uncertain.

		
	5.4 	
    Leverage Factor

     
Leverage factors also shall be determined by the Committee and
announced to Participants for each Plan Year. Notwithstanding
the preceding sentence, with respect to awards designed to
qualify for the Performance Based Exception, the leverage
factors shall be established at a time (a) prior to ninety
(90) days after the commencement of the Plan Year and
(b) when the achievement of the performance targets are
substantially uncertain. The leverage factors are (i) the
amount of EVA performance above or below EVA growth performance
targets for the Plan Year that will cause each
Participant’s incentive compensation for the Plan Year to
be double the participant’s target incentive compensation
for the plan year, if positive, or to be zero for the Plan Year,
if negative and (ii) the absolute leverage factor. The
leverage factors for a Plan Year may be the same or different.

		
	5.5 	
    Adjustments

     
Adjustments to EVA and EVA targets may be made when deemed
appropriate by the Committee pursuant to Section 9;
provided, however, with respect to awards designed
to qualify for Performance

7

 

Based Exception, EVA and EVA targets may not be adjusted after
the Committee has approved them for a Plan Year in a manner that
would cause an increase in the amount of resulting incentive
compensation. Nevertheless, the Committee shall have the
authority to make appropriate adjustments to EVA and EVA targets
to reflect the impact of the following extraordinary items not
reflected in such goals: (a) any profit or loss
attributable to acquisitions or dispositions of stock or assets,
(b) any changes in accounting standards that may be
required or permitted by the Financial Accounting Standards
Board or adopted by the Company after the goal is established,
(c) all items of gain, loss or expense for the year related
to restructuring charges for the Company, (d) all items of
gain, loss or expense for the year determined to be
extraordinary or unusual in nature of infrequent in occurrence
or related to the disposal of a segment of a business,
(e) all items of gain, loss or expense for the year related
to discontinued operations that do not qualify as a segment of a
business as defined in APB Opinion No. 30 and S.F.AS
No. 144, and (f) such other items as may be prescribed
by Section 162(m) of the Code and the Treasury Regulations
thereunder as may be in effect from time to time, and any
amendments, revisions or successor provisions and any changes
thereto.

SECTION 6

INCENTIVE COMPENSATION TARGETS

		
	6.1 	
    Target Incentive Compensation

     
The target annual and long-term incentive compensation for each
Participant for each Plan Year shall be an amount that is a
percentage of the Participant’s base pay for the Plan Year.

		
	6.2 	
    Annual and Long-Term Percentages

     
Separate annual and long-term target incentive compensation
percentages shall be determined for each Participant for each
Plan Year; provided, however, that the Committee
may determine that some Participants will be eligible only for
annual incentive compensation or only long-term incentive
compensation for a Plan Year. The annual and long-term target
incentive compensation percentages shall be determined by the
Committee and published to Participants for the Plan Year.

		
	6.3 	
    Maximum Award

			
	 	(a)  	
    The maximum amount that may be paid to any Employee as annual
    incentive compensation with respect to any Plan Year shall be
    $3 million.
	 
	 	(b)  	
    The maximum amount of long-term incentive compensation that may
    be awarded in any Plan Year to any Employee, determined without
    regard to when such compensation is paid to the Employee, shall
    be $4 million (including the value of any portion of such
    award that is not payable in cash, with such value determined by
    the Committee in its discretion).

SECTION 7

DETERMINATION AND PAYMENT OF INCENTIVE AMOUNTS

		
	7.1 	
    Final Plan Year EVA

     
EVA and EVA performance, including any necessary or appropriate
adjustments required or permitted hereunder, shall be determined
as soon as administratively feasible following the availability
of final financial results for the Plan Year. The Committee
shall certify, in writing, the attainment of year end EVA
results and the associated bonus multiple with respect to any
award designed to qualify for the Performance Based Exception.

8

 

		
	7.2 	
    Determination of Incentive Compensation

     
Under rules established by the Committee, the incentive
compensation for each Participant for each Plan Year shall be
calculated by the following steps:

			
	 	(a) 	
    Bonus Multiple. The bonus multiple shall be calculated
    based on (i) the actual level of EVA performance and
    (ii) growth of EVA for a Plan Year. The Committee shall
    determine the relative weight of each component to derive the
    bonus multiple.
	 
	 	(b) 	
    Incentive Compensation. Annual and long-term incentive
    compensation for each Participant for the Plan Year shall be the
    result obtained by multiplying the Participant’s individual
    target annual or long-term incentive percentage for the Plan
    Year by the applicable bonus multiple for the Plan Year and then
    multiplying the resulting percentage by the Participant’s
    base pay for the Plan Year to determine the dollar amount of the
    Participant’s incentive compensation. If a
    Participant’s base pay changes during a Plan Year,
    proportionate annual and long-term incentive compensation shall
    be calculated, under the rules established by the Committee, for
    each period of the Plan Year that each level of base pay was in
    effect. The proportionate incentive compensation for each level
    of base pay shall be calculated by annualizing that level of
    base pay, multiplying by the applicable annual or long-term
    target incentive percentage for that level of base pay and the
    bonus multiple, and then multiplying the resulting amount by a
    fraction, the numerator of which is the number of days during
    the Plan Year that the level of base pay was in effect and the
    denominator of which is the number of days in the Plan Year.
	 
	 	(c) 	
    Maximum. Notwithstanding the foregoing and subject to
    Section 6.3, the Committee may determine the maximum amount
    of annual and long-term incentive compensation for each
    Participant in a Plan Year.

		
	7.3 	
    Payment of Incentive Amounts

			
	 	(a) 	
    Annual Component. The dollar amount of the annual
    incentive compensation for a Plan Year shall be paid to the
    participant as soon as feasible following the completion of the
    incentive compensation calculations for the Plan Year;
    provided, however, that no amount shall be paid
    with respect to any award designed to qualify for the
    Performance Based Exception until the Committee has certified
    the EVA and attainment of EVA performance targets with respect
    to such award in accordance with Section 7.1.
	 
	 	(b) 	
    Long-Term Component. The amount of the long-term
    incentive compensation for a Plan Year that is payable to the
    Participant in cash shall be paid to the Participant, subject to
    the adjustments provided herein, in three annual installments.
    The first installment for a Participant shall be paid after the
    end of the Participant’s second Plan Year of participation
    in the Plan. The long-term incentive amounts payable to the
    Participant shall be credited contingently to a long-term
    incentive compensation recordkeeping account maintained for each
    Participant; provided, however, that no amount
    with respect to an award designed to qualify for the Performance
    Based Exception may be credited to a Participant’s account
    until the Committee has certified the EVA and attainment of EVA
    performance targets with respect to such Participant in
    accordance with Section 7.1. The account shall be credited
    at the end of each succeeding Plan Year with any long-term
    incentive dollar amount earned by the Participant. Within the
    account, a separate record or sub-account shall be maintained
    for each Plan Year for which long-term incentive compensation is
    credited.
	 
	 	(c)  	
    In addition to any applicable long-term incentive dollar amount,
    at the end of the second Plan Year of participation and each
    subsequent Plan Year, each sub-account within the
    Participant’s account shall be adjusted by a hypothetical
    earnings credit or debit. The adjustment shall be equal to the
    percentage of positive or negative change, if any, in the
    shareholder’s equity in the Company, before payment of any
    dividends, for the Fiscal Year

9

 

			
	 		
    ending closest in time to the last day of the Plan Year except
    as adjusted in accordance with Section 5.5.

     
The separate sub-account for each Plan Year for which long-term
incentive compensation is credited shall be independently
adjusted by any applicable earnings credits or debits and paid
as follows:

			
	 	(i) 	
    The sub-account shall be established for and as of the end of
    the Plan Year; and

			
	 	(ii) 	
    As of the end of the second Plan Year (the Plan Year following
    the Plan Year for which the sub-account was established), the
    amount in the sub-account shall be divided into three equal
    parts and each of such parts shall be adjusted by any applicable
    earnings credit or debit for the second Plan Year; and

			
	 	(iii) 	
    As soon as feasible following the end of the second Plan Year,
    one of the three parts of the sub-accounts be paid to the
    Participant; and
	 
	 	(iv) 	
    As of the end of the third Plan Year, the two remaining parts of
    the sub-account shall be adjusted by any applicable earnings
    credit or debit for the third Plan Year; and

			
	 	(v) 	
    As soon as feasible following the end of the third Plan Year,
    one of the two remaining parts shall be paid to the
    Participant; and

			
	 	(vi) 	
    As of the end of the fourth Plan Year, the amount remaining in
    the sub-account shall be adjusted for any earnings credit or
    debit for the fourth Plan Year and the resulting amount shall be
    paid to the Participant as soon as feasible following the end of
    the fourth Plan Year.

     
Pursuant to the foregoing each Participant may be receiving
payments from as many as three different sub-accounts following
the end of a Plan Year.

     
The dollar amount of long-term compensation credited to a
Participant for each Plan Year shall be entirely contingent and
shall be unconditionally earned only when actually paid. In the
event a Participant ceases to be a Participant but continues to
be an Employee, adjustments for any earnings credits or debits
and payments from the Participant’s long-term compensation
account shall continue until the account is exhausted or until
terminated under Section 7.4.

     
The Committee in its discretion may determine that any portion
or all of the long-term incentive compensation that is payable
to a Participant shall be paid in property other than cash
(including without limitation stock options granted under the
Company’s Incentive Compensation Plan). Any portion of the
long-term incentive compensation that is payable to a
Participant in property other than cash shall be paid on such
terms and conditions as determined by the Committee.

		
	7.4 	
    Partial Year Participation, Employment Changes and
    Forfeitures

			
	 	(a) 	
    Partial Year Participation. If an Employee is designated
    to become a Participant in a Plan Year as of a date other than
    the first day of the Plan Year, the Participant’s incentive
    award compensation for the Plan Year shall be determined, under
    rules established and maintained by the Committee for this
    purpose from time to time, on the basis of the
    Participant’s time of participation during the Plan Year.
	 
	 	(b) 	
    Employment Changes. Target incentive percentages and
    incentive awards for a Participant for a Plan Year will be
    prorated under rules established and maintained by the Committee
    for this purpose from time to time, in the event of any change
    in compensation or employment status or location, or any other
    change that would effect the determination for the Plan Year, in
    proportion to the duration of each applicable factor during the
    Plan Year. The balance in the Participant’s long-term
    compensation account as of the end of the Plan Year shall not be
    modified by reason of any change in any applicable factor in a
    subsequent Plan Year.

10

 

			
	 	(c) 	
    Retirement, Death or Disability. If a Participant’s
    employment terminates during a Plan Year by reason of
    Retirement, death, or Total Disability, (i) the annual
    component of the Participant’s incentive compensation
    dollar amount for the Plan Year, if any, shall be prorated, and
    (ii) the long-term component of the Participant’s
    incentive compensation dollar amount for the Plan Year, if any,
    shall be prorated, under rules established and maintained by the
    Committee for such purpose, based on the Participant’s time
    of active employment as a Participant during the Plan Year. The
    balance in the Participant’s long-term incentive
    compensation account as of the end of the Plan Year, after
    appropriate crediting or debiting for the Plan Year, shall be
    paid to the Participant or the Participant’s beneficiary at
    the time long-term incentive compensation payments are made
    under the Plan for each Plan Year until the account is
    exhausted. Notwithstanding the preceding sentence, the Committee
    may determine to accelerate the payment of long-term incentive
    compensation amounts credited to the Participant or Beneficiary
    at the time and in the manner determined in the sole and
    absolute discretion of the Committee; provided, that such
    action would not cause any payment to result in deferred
    compensation that is subject to the additional tax under
    Section 409A of the Code.
	 
	 	(d) 	
    Other Termination of Employment. Except as otherwise
    provided in this subsection (d) or pursuant to
    subsection (e), upon termination of a Participant’s
    employment during a Plan Year for any reason other than
    Retirement, death, or Total Disability, the Participant shall
    not be entitled to the payment of incentive compensation for the
    Plan Year and the balance in the Participant’s long-term
    incentive compensation account shall be forfeited.
    Notwithstanding the preceding sentence, the Committee shall have
    full discretion to determine that any or all of the following:
    payment of a prorated annual component, crediting of the
    Participant’s long-term incentive compensation account, or
    payments from the long-term account until exhausted, may be made
    when termination of the Participant’s employment results
    from job elimination, reduction in work force or other similar
    company initiative, or is encouraged or induced by incentives
    offered by the Company; provided, that such actions would
    not cause any payment to result in deferred compensation that is
    subject to the additional tax under Section 409A of the
    Code.
	 
	 	(e) 	
    Competition. A Participant shall not be entitled to the
    payment of incentive compensation for the Plan Year and the
    balance in the Participant’s long-term incentive
    compensation account shall be forfeited in the event the
    Participant directly or indirectly engages in Competition with
    Steelcase Inc. Competition means directly or indirectly engaging
    in competition with the Company or any subdivision, subsidiary,
    or affiliate of the Company (collectively, the “Company
    Group”) at any time during employment with the Company
    Group or during the three (3) year period following
    termination of employment with the Company Group, without prior
    approval of the Committee. A Plan Participant engages in
    competition if that person participates directly or indirectly
    in the manufacture, design or distribution of any products of
    the same type as those of the Company Group, including, but not
    limited to, office furniture, office systems or architectural
    products, or the providing of any related services, for or on
    behalf of any person or entity other than the Company and its
    authorized dealers, at any location within or without the United
    States of America. It is intended that this definition shall be
    enforced to the fullest extent permitted by law. If any part of
    this definition shall be construed to be invalid or
    unenforceable, in whole or in part, then such definition shall
    be construed in a manner so as to permit its enforceability to
    the fullest extent permitted by law.

			
	 	(f) 	
    Committee Discretion. Pursuant to the powers conferred in
    Section 9, the Committee may make other rules and
    exceptions applicable to participation and employment changes.

			
	 	(g) 	
    Section 409A. Notwithstanding anything to the
    contrary in this Plan, payments made in connection with a
    termination of employment to a Participant (other than by reason
    of death or Total Disability) who is deemed to be a
    “specified employee” under Section 409A(a)(2)(B)

11

 

			
	 		
    of the Code, that would have been made at any time during the
    six-month period immediately following such termination of
    employment, shall not be made prior to the expiration of such
    six-month period.

		
	7.5 	
    Reports

     
From time to time during each Plan Year and as of the end of
each Plan Year, the Committee shall provide to each Participant
information concerning current and cumulative EVA performance,
credits and debits in the account and the balance in the
Participant’s long-term incentive compensation account.

SECTION 8

CHANGE IN CONTROL

		
	8.1 	
    Annual Component

     
Upon a Change in Control, the annual component of the
Participant’s incentive compensation dollar amount for the
Plan Year, if any, shall be prorated at target, based on the
Participant’s time of active employment as a Participant
during the Plan Year through the date of the Change in Control.
The prorated bonus shall be paid as a single lump sum payment to
the Participant as soon as reasonably practicable following the
date of the Change in Control.

		
	8.2 	
    Long-Term Component

			
	 	(a)  	
    Upon a Change in Control, the long-term component of the
    Participant’s incentive compensation for the Plan Year, if
    any, shall be prorated at target, based on the
    Participant’s time of active employment as a Participant
    during the Plan Year through the date of the Change in Control.
    The prorated bonus shall be paid as a single lump sum payment to
    the Participant as soon as reasonably practicable following the
    date of the Change in Control.
	 
	 	(b)  	
    Upon a Change in Control, the balance in the Participant’s
    long-term incentive compensation account as of the date of the
    Change in Control, after appropriate crediting or debiting for
    such period, shall be fully paid to the Participant on an
    accelerated basis as a single lump sum payment as soon as
    reasonably practicable following the date of the Change in
    Control; provided, however, in the event such
    payment would be made during 2007, such; payment shall instead
    be made as soon as reasonably practicable after January 2,
    2008.

		
	8.3 	
    Section 409A

     
Payments made under this Article 8 shall be made only to
the extent that actions taken under this Article 8 would
not cause any payment to result in deferred compensation that is
subject to the additional tax under Section 409A of the
Code.

SECTION 9

COMMITTEE DISCRETION

     
The Committee shall exercise all of its power and duties as the
Committee deems appropriate in its sole and absolute discretion.
All decisions of the Committee shall be final and binding on all
Participants and their respective heirs and representatives. In
the event it is determined, in the judgment and discretion of
the Committee, that any factor applicable in the ultimate
determination of incentive compensation under the Plan for a
Plan Year is not appropriate with respect to one or more
Participants due to unusual events, unforeseen circumstances, or
other factors deemed material and relevant, the applicable
factor or the amount of the resulting incentive compensation may
be adjusted

12

 

or modified in any manner deemed appropriate by the Committee;
provided, however, that with respect to awards
designed to qualify for the Performance Based Exception, no
applicable factor may be adjusted in a manner that would cause
an increase in the amount of resulting incentive compensation
and the resulting incentive compensation may not be increased.

SECTION 10

AMENDMENT AND TERMINATION

		
	10.1 	
    Amendment

     
The Plan may be amended in any manner at any time by action of
the Board of Directors or the Committee. No amendment shall
reduce the amounts credited to the long-term incentive
compensation accounts of Plan Participants as of the end of the
Plan Year preceding the later of the effective date of the
amendment or the date the amendment is adopted.

		
	10.2 	
    Termination

     
The Plan may be suspended at any time by action of the
Committee, pending the next meeting of the Board of Directors of
Steelcase Inc. Any suspension may be approved and ratified and
the Plan may be terminated at any time by action of the Board of
Directors. Neither a suspension nor termination of the Plan
shall reduce or eliminate amounts credited in the long-term
incentive compensation accounts of Participants as of the end of
the Plan Year preceding the later of the effective date of the
suspension or termination or the date of the action to suspend
or terminate.

SECTION 11

GENERAL PROVISIONS

		
	11.1 	
    Benefits Not Guaranteed

     
Neither the establishment and maintenance of the Plan nor
participation in the Plan shall provide any guarantee or other
assurance that incentive compensation will be payable under the
Plan. The success of Steelcase Inc. and its subdivisions and
affiliates, as determined hereunder, and adjusted as provided
herein, and application of the administrative rules and
determinations by the Committee shall determine the extent to
which Participants are entitled to receive incentive
compensation payments and credits hereunder.

		
	11.2 	
    Clawback

     
If the Company’s financial results are materially restated,
the Committee may review the circumstances surrounding the
restatement and determine whether and which Participants will be
required to forfeit the right to receive any future payments
under Section 7 of the Plan and/or repay any prior payments
determined by the Committee to have been inappropriately
received by the Participant. If the Company’s financial
results are restated due to fraud, any Participant who the
Committee determines participated in or is responsible for the
fraud causing the need for the restatement forfeits the right to
receive any future payments under Section 7 of the Plan and
must repay any amounts paid in excess of the amounts that would
have been paid based on the restated financial results. Any
repayments required under this Section 11.2 must be made by
the Participant within ten (10) days following written
demand from the Company. This Section 11.2 applies only to
Participants in the Plan who also participate in the Steelcase
Inc. Executive Severance Plan.

13

 

		
	11.3 	
    No Right to Participate

     
Nothing in this Plan shall be deemed or interpreted to provide a
Participant or any non-participating Employee with any
contractual right to participate in or receive benefits of the
Plan. No designation of an Employee as a Participant for all or
any part of a Plan Year shall create a right to incentive
compensation or other benefits of the Plan for any other Plan
Year.

		
	11.4 	
    No Employment Right

     
Participation in this Plan shall not be construed as
constituting a commitment, guarantee, agreement, or
understanding of any kind that the Company or any subdivision of
the Company will continue to employ an individual, and this Plan
shall not be construed or applied as any type of employment
contract or obligation. Nothing herein shall abridge or diminish
the rights of the Company or the employing subdivision of the
Company to determine the terms and conditions of employment of
any Participant or other employee or to terminate the employment
of any Participant or other Employee with or without cause at
any time.

		
	11.5 	
    No Assignment or Transfer

     
Neither a participant nor any beneficiary or other
representative of a Participant shall have any right to assign,
transfer, attach, or hypothecate any incentive compensation
amount or credit, potential payment, or right to future payments
of any incentive compensation amount or credit, or any other
benefit provided under this Plan. Payment of any amount due or
to become due under this Plan shall not be subject to the claims
of creditors of the Participant or to execution by attachment or
garnishment or any other legal or equitable proceeding or
process.

		
	11.6 	
    Withholding and Payroll Taxes

     
The Company shall deduct from any payment made under this Plan
all amounts required by federal, state, and local tax laws to be
withheld and shall subject any payments made under the Plan to
all applicable payroll taxes and assessments.

11.7 Incompetent Payee

     
If the Committee determined that a person entitled to a payment
hereunder is incompetent, it may cause benefits to be paid to
another person for the use or benefit of the Participant or the
Participant’s beneficiary at the time or times otherwise
payable hereunder, in total discharge of the Plan’s
obligations to the Participant or beneficiary.

		
	11.8 	
    Section 409A

     
It is intended that the Plan and awards issued hereunder will
comply with Section 409A of the Code (and any regulations
and guidelines issued thereunder) to the extent the awards are
subject thereto, and the Plan and such awards shall be
interpreted on a basis consistent with such intent. The Plan and
any award agreements issued thereunder may be amended in any
respect deemed by the Board or the Committee to be necessary in
order to preserve compliance with Section 409A of the Code.

		
	11.9 	
    Governing Law

     
The provisions of the Plan shall be construed and governed under
the laws of the State of Michigan.

		
	11.10 	
    Construction

     
The singular includes the plural, and the plural includes the
singular, and terms connoting gender include both the masculine
and feminine, unless the context clearly indicates the contrary.
Capitalized

14

 

terms, except those at the beginning of a sentence or part of a
heading, have the meaning defined in the Plan.

SECTION 12

EXECUTION

     
IN WITNESS WHEREOF, Steelcase Inc. has caused this Plan,
captioned “Steelcase Inc. Management Incentive Plan,”
as amended and restated effective as of February 24, 2007,
to be executed by its duly authorized officer this 30th day of
April, 2007.

		
	 	
    STEELCASE INC.

			
	 	By: 	
    /s/ Nancy W. Hickey

		
	 	
     

			
	 	Its: 	
    Senior Vice President,

		
	 	
    Chief Administrative Officer and Secretary

15

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