Document:

exhibit10n.htm

    Exhibit 10(n)

       

      INVACARE
        CORPORATION

       

      DEFERRED
        COMPENSATION PLUS PLAN

       

      (Effective
        January 1, 2005)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INVACARE
        CORPORATION

      DEFERRED
        COMPENSATION PLUS PLAN

      (Effective
        January 1, 2005)

       

      

       

      Table
        of Contents

      

        
          	 	 	
                  Page

                
	
                  ARTICLE
                    I. INTRODUCTION

                	
                  1

                
	
                  1.2.

                	
                  Name
                    of Plan.

                	
                  1

                
	
                  1.3.

                	
                  Purposes
                    of Plan.

                	
                  1

                
	
                  1.4.

                	
                  Top
                    Hat Pension Benefit Plan.

                	
                  1

                
	
                  1.5.

                	
                  Plan
                    Unfunded.

                	
                  1

                
	
                  1.6.

                	
                  Effective
                    Date and Restatement Date.

                	
                  1

                
	
                  1.7.

                	
                  Administration.

                	
                  1

                
	
                  ARTICLE
                    II. DEFINITIONS AND CONSTRUCTION

                	
                  2

                
	
                  2.1.

                	
                  Definitions.

                	
                  2

                
	
                  2.2.

                	
                  Number
                    and Gender.

                	
                  5

                
	
                  2.3.

                	
                  Headings.

                	
                  6

                
	
                  ARTICLE
                    III. PARTICIPATION AND ELIGIBILITY

                	
                  7

                
	
                  3.1.

                	
                  Participation.

                	
                  7

                
	
                  3.2.

                	
                  Commencement
                    of Participation.

                	
                  7

                
	
                  3.3.

                	
                  Cessation
                    of Active Participation.

                	
                  7

                
	
                  ARTICLE
                    IV. CONTRIBUTIONS AND VESTING

                	
                  8

                
	
                  4.1.

                	
                  Deferrals
                    by Participants.

                	
                  8

                
	
                  4.2.

                	
                  Effective
                    Date of Participation and Deferral Election Form.

                	
                  8

                
	
                  4.3.

                	
                  Modification
                    or Revocation of Election by Participant.

                	
                  9

                
	
                  4.4.

                	
                  Matching
                    Contributions.

                	
                  9

                
	
                  4.5.

                	
                  Make
                    Whole Contributions.

                	
                  9

                
	
                  4.6.

                	
                  Discretionary
                    Contributions.

                	
                  9

                
	
                  4.7.

                	
                  Suspension
                    of Contributions.

                	
                  9

                
	
                  4.8.

                	
                  Transfer
                    of Contributions to 401(k) Plan.

                	
                  9

                
	
                  4.9.

                	
                  Vesting.

                	
                  10

                
	
                  ARTICLE
                    V. ACCOUNTS

                	
                  11

                
	
                  5.1.

                	
                  Establishment
                    of Bookkeeping Accounts.

                	
                  11

                
	
                  5.2.

                	
                  Subaccounts.

                	
                  11

                
	
                  5.3.

                	
                  Earnings
                    Elections.

                	
                  11

                
	
                  5.4.

                	
                  Hypothetical
                    Accounts and Creditor Status of Participants.

                	
                  12

                
	
                  5.5.

                	
                  Investments.

                	
                  12

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        INVACARE
          CORPORATION

        DEFERRED
          COMPENSATION PLUS PLAN

        (Effective
          January 1, 2005)

         

        

         

        Table
          of Contents

        

          
            	 	 	
                    Page

                  
	
                    ARTICLE
                      VI. PAYMENT OF ACCOUNT

                  	
                    13

                  
	
                    6.1.

                  	
                    Timing
                      of Distribution of Accounts.

                  	
                    13

                  
	
                    6.2.

                  	
                    Adjustment
                      for Investment Gains and Losses Upon a Distribution.

                  	
                    13

                  
	
                    6.3.

                  	
                    Form
                      of Payment.

                  	
                    13

                  
	
                    6.4.

                  	
                    Change
                      in Date or Form of Distribution.

                  	
                    14

                  
	
                    6.5.

                  	
                    Protective
                      Distributions.

                  	
                    14

                  
	
                    6.6.

                  	
                    Designation
                      of Beneficiaries.

                  	
                    14

                  
	
                    6.7.

                  	
                    Change
                      of Beneficiary Designation.

                  	
                    15

                  
	
                    6.8.

                  	
                    Change
                      in Marital Status.

                  	
                    15

                  
	
                    6.9.

                  	
                    No
                      Beneficiary Designation.

                  	
                    15

                  
	
                    6.10.

                  	
                    Unclaimed
                      Benefits.

                  	
                    16

                  
	
                    6.11.

                  	
                    Withdrawals
                      for Unforeseeable Emergency.

                  	
                    16

                  
	
                    6.12.

                  	
                    Withholding.

                  	
                    16

                  
	
                    ARTICLE
                      VII. ADMINISTRATION

                  	
                    17

                  
	
                    7.1.

                  	
                    Committee.

                  	
                    17

                  
	
                    7.2.

                  	
                    General
                      Powers of Administration.

                  	
                    17

                  
	
                    7.3.

                  	
                    Indemnification
                      of Committee.

                  	
                    18

                  
	
                    ARTICLE
                      VIII. DETERMINATION OF BENEFITS, CLAIMS PROCEDURE AND
                      ADMINISTRATION

                  	
                    19

                  
	
                    8.1.

                  	
                    Claims.

                  	
                    19

                  
	
                    8.2.

                  	
                    Claim
                      Decision.

                  	
                    19

                  
	
                    8.3.

                  	
                    Request
                      for Review of a Denied Claim.

                  	
                    20

                  
	
                    8.4.

                  	
                    Review
                      of Decision.

                  	
                    20

                  
	
                    8.5.

                  	
                    Discretionary
                      Authority.

                  	
                    21

                  
	
                    ARTICLE
                      IX. AMENDMENT AND TERMINATION

                  	
                    22

                  
	
                    9.1.

                  	
                    Power
                      to Amend or Terminate.

                  	
                    22

                  
	
                    9.2.

                  	
                    Distribution
                      Upon Plan Termination.

                  	
                    22

                  
	
                    9.3.

                  	
                    Protective
                      Amendments Due to Change in Law.

                  	
                    22

                  
	
                    ARTICLE
                      X. MISCELLANEOUS

                  	
                    24

                  
	
                    10.1.

                  	
                    Plan
                      Not a Contract of Employment.

                  	
                    24

                  
	
                    10.2.

                  	
                    Non-Assignability
                      of Benefits.

                  	
                    24

                  
	
                    10.3.

                  	
                    Severability.

                  	
                    24

                  
	
                    10.4.

                  	
                    Governing
                      Laws.

                  	
                    24

                  
	
                    10.5.

                  	
                    Binding
                      Effect.

                  	
                    24

                  
	
                    10.6.

                  	
                    Entire
                      Agreement.

                  	
                    24

                  
	
                    10.7.

                  	
                    No
                      Guaranty of Tax Consequences.

                  	
                    25

                  

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

      

      INVACARE
        CORPORATION

      DEFERRED
        COMPENSATION PLUS PLAN

      (Effective
        January 1, 2005)

       

      ARTICLE
        I.

       

      INTRODUCTION

       

      1.2.           
        Name of Plan.

       

      Invacare
        Corporation (the “Company”) hereby adopts the Invacare Corporation Deferred
        Compensation Plus Plan (the “Plan”).

       

      1.3.           
        Purposes of Plan.

       

      The
        purposes of the Plan are to provide deferred compensation for a select group
        of
        management or highly compensated Employees of the Company and to provide
        eligible Employees the opportunity to maximize their elective contributions
        to
        the Invacare Retirement Savings Plan (the “401(k) Plan”) notwithstanding certain
        limitations in the Code.

       

      1.4.           
        “Top Hat” Pension Benefit Plan.

       

      The
        Plan is an “employee pension
        benefit plan” within the meaning of ERISA Section 3(2). The Plan is maintained,
        however, for a select group of management or highly compensated employees
        and,
        therefore, is exempt from Parts 2, 3 and 4 of Title 1 of ERISA. The Plan
        is not
        intended to qualify under Code Section 401(a).

       

      1.5.           
        Plan Unfunded.

       

      The
        Plan
        is unfunded. All benefits will be paid from the general assets of the Company,
        which will continue to be subject to the claims of the Company’s creditors. No
        amounts will be set aside for the benefit of Plan Participants or their
        Beneficiaries.

       

      1.6.           
        Effective Date and Restatement Date.

       

      The
        Plan
        is effective as of the Effective Date.

       

      1.7.           
        Administration.

       

      The
        Plan
        shall be administered by the Committee or its delegates, as set forth in
        Section
        7.1.

       

      ARTICLE
        II.

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      DEFINITIONS
        AND CONSTRUCTION

       

      2.1.           
        Definitions.

       

      For
        purposes of the Plan, the following words and phrases shall have the respective
        meanings set forth below, unless their context clearly requires a different
        meaning:

       

      (a)           
        “Account” means the bookkeeping account or accounts maintained by the Company to
        reflect the Participant’s Base Salary Deferrals, Bonus Deferrals, Matching
        Contributions, Discretionary Contributions, Profit Sharing Contributions
        and IQC
        Contributions, together with all earnings, gains and losses
        thereon.  Accounts shall be further denominated as Retirement Accounts
        or In-Service Distribution Accounts.

       

      (b)           
        “Base Salary” means the base rate of cash compensation, including commissions,
        paid by the Company to or for the benefit of a Participant for services rendered
        or labor performed while a Participant, including base pay a Participant
        could
        have received in cash in lieu of (A) deferrals pursuant to Section 4.1 and
        (B)
        contributions made on his behalf to any qualified plan maintained by the
        Company
        or to any cafeteria plan under Section 125 of the Code maintained by the
        Company.

       

      (c)           
        “Base Salary Deferral” means the amount of a Participant’s Base Salary which the
        Participant elects to have withheld on a pre-tax basis and credited to his
        Account pursuant to Section 4.1.

       

      (d)           
        “Beneficiary” means the person or persons designated by the Participant in
        accordance with Section 6.6 or, in the absence of an effective designation,
        the
        person or entity described in Section 6.9.

       

      (e)           
        “Board” means the Board of Directors of the Company.

       

      (f)           
        “Bonus Compensation” means the amount awarded to a Participant for a Plan Year
        under any bonus arrangement maintained by the Company.

       

      (g)           
        “Bonus Deferral” means the amount of a Participant’s Bonus Compensation which
        the Participant elects to have withheld on a pre-tax basis and credited to
        his
        Account pursuant to Section 4.1.

       

      (h)           
        “Change In Control” means the happening of any of the following
        events:

       

      
        	
                 

              	
                (i)

              	
                Any
                  person or entity (other than any employee benefit plan or employee
                  stock
                  ownership plan of Invacare Corporation, or any person or entity
                  organized,
                  appointed, or established by Invacare Corporation, for or pursuant
                  to the
                  terms of any such plan), alone or together with any of its Affiliates
                  or
                  Associates, becomes the Beneficial Owner of thirty percent (30%)
                  or more
                  of the total outstanding voting power of

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                Invacare
                  Corporation, as reflected by the power to vote in connection with
                  the
                  election of directors, or commences or publicly announces an intent
                  to
                  commence a tender offer or exchange offer the consummation of which
                  would
                  result in the Person becoming the Beneficial Owner of thirty percent
                  (30%)
                  or more of the total outstanding voting power of Invacare Corporation
                  as
                  reflected by the power to vote in connection with the election
                  of
                  directors. For purposes of this Section 2.1(h)(i), the terms “Affiliates,”
                  “Associates,” and “Beneficial Owner” will have the meanings given them in
                  the Rights Agreement, dated as of April 2, 1991, between Invacare
                  Corporation and National City Bank, as Rights Agent, as amended
                  from time
                  to time. 

              

      

       

      
        	
                 

              	
                (ii)

              	
                At
                  any time during a period of twenty-four (24) consecutive months,
                  individuals who were directors at the beginning of the period no
                  longer
                  constitute a majority of the members of the Board, unless the election,
                  or
                  the nomination for election by the Invacare Corporation’s shareholders, of
                  each director who was not a director at the beginning of the period
                  is
                  approved by at least a majority of the directors who are in office
                  at the
                  time of the election or nomination and were either directors at
                  the
                  beginning of the period or are continuing directors.
                  

              

      

       

      
        	
                 

              	
                (iii)

              	
                A
                  record date is established for determining shareholders entitled
                  to vote
                  upon: 

              

      

       

      
        	
                 

              	
                (A)

              	
                A
                  merger or consolidation of the Invacare Corporation with another
                  corporation (which is not an affiliate of Invacare Corporation)
                  in which
                  Invacare Corporation is not the surviving or continuing company
                  or in
                  which all or part of the outstanding common shares are to be converted
                  into or exchanged for cash, securities, or other property;
                  

              

      

       

      
        	
                 

              	
                (B)

              	
                a
                  sale or other disposition of all or substantially all of the assets
                  of
                  Invacare Corporation; or 

              

      

       

      
        	
                 

              	
                (C)

              	
                the
                  dissolution or liquidation (but not partial liquidation) of Invacare
                  Corporation. 

              

      

       

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

       

      (j)           
        “Committee” means the administrative committee named to administer the Plan
        pursuant to Section 7.1.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (k)           
        “Company” means Invacare Corporation and any successor thereto.

       

      (l)           
        “Deferral Period” means the period of time for which a Participant elects to
        defer receipt of the Base Salary Deferrals and Bonus Deferrals credited to
        such
        Participant’s Account.

       

      (m)           
        “Directors” means the Board of Directors of the Company.

       

      (n)           
        “Disability” means that a Participant (i) is unable to engage in any substantial
        gainful activity by reason of any medically determinable physical or mental
        impairment which can be expected to result in death or can be expected to
        last
        for a continuous period of not less than 12 months, or (ii) is, by reason
        of any
        medically determinable physical or mental impairment which can be expected
        to
        result in death or can be expected to last for a continuous period of not
        less
        than 12 months, receiving income replacement benefits for a period of not
        less
        than 3 months under an accident and health plan covering employees of the
        Company.

       

      (o)           
        “Discretionary Contribution” means the Company’s contribution, if any, made
        pursuant to Section 4.6.

       

      (p)           
        “Effective Date” means January 1, 2005, except where a different date is
        specifically set forth.

       

      (q)           
        “Employee” means any common-law employee of the Company.

       

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

       

      (s)           
        “401(k) Plan” means the Invacare Retirement Savings Plan, as in effect on
        January 1, 2005, and as amended from time to time thereafter.

       

      (t)           
        “In-Service Distribution Accounts” means an Account(s) to which a Participant’s
        Base Salary Deferrals and Bonus Deferrals are credited pursuant to the terms
        of
        the Plan and the election of a Participant.  Each of a Participant’s
        In-Service Distribution Accounts is distributable in a future calendar year
        which is not less than two (2) years following the deferral of compensation
        into
        the Plan and which is selected by the Participant pursuant to Section 4.2
        hereof.  A Participant may have up to two (2) In-Service Distribution
        Accounts under the Plan at any one time.

       

      (u)           
        “Contribution” or “IQC” means the amount, if any, of non-elective non-matching
        contribution made by the Company under the 401(k) Plan for a Plan
        Year.

       

      (v)           
        “Make Whole IQC Contribution” means a contribution equal to the Invacare
        Quarterly Contribution that would have been made to the 401(k) Plan for a
        Participant but for the limitation on compensation contained in Code Section
        401(a)(17).

       

      (w)           
        “Matching Contribution” means the amount, as determined by the Company on an
        annual basis, that would be credited to the Participant’s Base Salary
        Deferrals

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      and
        Bonus
        Deferrals if such deferrals had been deferred by the Participant into the
        401(k)
        Plan, and which is credited by the Company to the Retirement Account of each
        Participant based on such Participant’s Base Salary and Bonus
        Deferrals.

       

      (x)           
        “Participant” means each Employee who has been selected for participation in the
        Plan and who has become a Participant pursuant to Article III.

       

      (y)           
        “Participation and Deferral Election Form” means the written agreement pursuant
        to which the Participant elects the amount of his Base Salary and/or his
        Bonus
        Compensation to be deferred pursuant to the Plan, the Account to which such
        deferrals are to be credited, the Deferral Period, if applicable, the deemed
        investment of amounts deferred and the time and form of payment of such amounts
        and such other matters as the Committee shall determine from time to
        time.

       

      (z)           
        “Plan” means the Invacare Corporation Deferred Compensation Plus Plan, as in
        effect on the Effective Date, and as amended from time to time
        hereafter.

       

      (aa)           
        “Plan Year” means the twelve-consecutive month period commencing January 1 of
        each year ending on the following December 31.

       

      (bb)           
        “Profit Sharing Contribution” means the amount credited to a Participant’s
        Account under the Invacare Corporation 401(k) Benefit Equalization Plus Plan
        prior to December 31, 2004 and which is transferred to the Participant’s
        Retirement Account under this Plan on or after the Effective Date.

       

      (cc)           
        “Retirement” means a Participant’s termination of employment after either (I)
        the attainment of age fifty-five (55) and completion of ten (10) or more
        Years
        of Service, or (II) the attainment of age sixty-five (65).

       

      (dd)           
        “Retirement Account” means an Account to which Base Salary Deferrals and Bonus
        Deferrals are credited pursuant to the terms of the Plan and the election
        of a
        Participant.  A Participant’s Retirement Account shall also be
        credited with any Matching Contributions, Make Whole IQC Contributions, Profit
        Sharing Contributions and Discretionary Contributions creditable to a
        Participant under the terms of the Plan.  A Participant’s Retirement
        Account is generally payable upon his Retirement.

       

      (ee)           
        “Valuation Date” means each business day and each special valuation date
        designated by the Committee.

       

      (ff)           
        “Years of Service” shall have the same meaning as in the 401(k)
        Plan.

       

      2.2.           
        Number and Gender.

       

      Wherever
        appropriate herein, words used in the singular shall be considered to include
        the plural and words used in the plural shall be considered to include the
        singular. The masculine gender, where appearing in the Plan, shall be deemed
        to
        include the feminine gender.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2.3.           
        Headings.

       

      The
        headings of Articles and Sections herein are included solely for convenience,
        and if there is any conflict between such headings and the rest of the Plan,
        the
        text shall control.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        III.

       

      PARTICIPATION
        AND ELIGIBILITY

       

      3.1.           
        Participation.

       

      Participants
        in the Plan are those Employees who are (a) subject to the income tax laws
        of
        the United States, (b) members of a select group of highly compensated or
        management Employees of the Company, and (c) selected by the Committee or
        its
        delegates, in its sole discretion, as Participants. The Committee shall notify
        each Participant of his selection as a Participant.  An Employee who
        satisfies the eligibility requirements set forth in subsections (a) and (b)
        shall remain eligible to continue participation in the Plan for each Plan
        Year
        following his selection by the Committee as a Participant.

       

      3.2.           
        Commencement of
        Participation.

       

      Except
        as
        provided in the following sentence, an Employee shall become a Participant
        effective as of the first day of the Plan Year following the date on which
        his
        Participation and Deferral Election Form becomes effective. A newly hired
        Employee who completes a Participation and Deferral Election Form within
        30 days
        of the date on which he is selected by the Committee to be eligible to
        participate shall become a Participant as of the date on which his Participation
        and Deferral Election Form becomes effective under Section 4.2.

       

      3.3.           
        Cessation of Active Participation.

       

      Notwithstanding
        any provision herein to the contrary, an individual who has become a Participant
        in the Plan shall cease to be a Participant hereunder effective as of any
        date
        designated by the Committee.  Any such Committee action shall be
        communicated to such Participant prior to the effective date of such
        action.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        IV.

       

      CONTRIBUTIONS
        AND VESTING

       

      4.1.           
        Deferrals by Participants.

       

      Before
        the first day of each calendar year, a Participant may file with the Committee
        a
        Participation and Deferral Election Form pursuant to which such Participant
        elects to make Base Salary Deferrals.  A Participant must file a
        Participation and Deferral Election form to make Bonus Deferrals at a time
        prescribed by the Committee which time shall be not later than six (6) months
        before the end of the 12 month period over which the services upon which
        the
        Bonus Compensation is based are performed.  A Participant shall be
        entitled to defer a whole percent of his Base Salary or Bonus Compensation,
        subject to a maximum deferral of fifty percent (50%) of Base Salary and one
        hundred percent (100%) of Bonus Compensation.  Deferral elections
        shall be subject to any other rules prescribed by the Committee in its sole
        discretion.

       

      At
        the
        time a Participant completes a Participation and Deferral Election Form,
        he
        shall elect to have his Base Salary Deferrals and Bonus Deferrals credited
        to a
        Retirement Account or a In-Service Distribution Account.  An election
        to have amounts credited to a In-Service Distribution Account shall specify
        the
        calendar year in which payment of such amount shall be made or shall commence
        to
        be made.  In the event a Participant does not elect a Deferral Period
        for any Base Salary Deferrals or Bonus Deferrals for a Plan Year, such
        Participant shall be deemed to have elected to have such amounts credited
        to a
        In-Service Distribution Account with a Deferral Period of five (5)
        years.

       

      Base
        Salary Deferrals will be credited to the Account of each Participant as soon
        as
        practicable following each pay date, if and to the extent that the Participant
        earned such Base Salary as an Employee for such pay date.  Bonus
        Deferrals will be credited to the Account of each Participant not later than
        the
        last day of the month in which such Bonus Compensation otherwise would have
        been
        paid to the Participant in cash, provided that the Participant is an Employee
        at
        the time such Bonus Compensation would have been paid.  A Participant
        whose employment terminates prior to or during the calendar month in which
        his
        Bonus Compensation would have been paid to him in cash will be paid his Bonus
        Deferral in cash.  Such termination of employment shall not affect
        Base Salary Deferrals and Bonus Deferrals previously credited to the Account
        of
        the affected Participant.

       

      4.2.           
        Effective Date of Participation and Deferral Election Form.

       

      Except
        as
        provided below with respect to a new Participant, a Participant’s Participation
        and Deferral Election Form shall become effective on the first day of the
        Plan
        Year to which it relates.  The Participation and Deferral Election
        Form of an Employee who first becomes eligible to participate in the Plan
        during
        a Plan Year shall become effective with respect to services to be performed
        subsequent to the election which shall be made within thirty (30) days after
        the
        date the Employee first becomes eligible to participate in the
        Plan.  If an Employee fails to timely complete a Participation and
        Deferral Election Form, the Employee shall be

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      deemed
        to
        have elected not to make Base Salary Deferrals and/or Bonus Deferrals for
        such
        Plan Year.

       

      4.3.           
        Modification or Revocation of Election by Participant.

       

      A
        Participant may not prospectively change the amount of his Base Salary Deferrals
        or Bonus Deferrals during a Plan Year unless the Committee determines that
        he
        has suffered an unforeseeable emergency as is more fully described in Section
        6.11.  Unless required or permitted by law, under no circumstances may
        a Participant’s Participation and Deferral Election Form be made, modified or
        revoked retroactively.

       

      4.4.           
        Matching
        Contributions.

       

      Each
        Participant who elects to make Base Salary Deferrals and/or Bonus Deferrals
        to
        the Plan and who has completed at least six (6) months of service will receive
        a
        Matching Contribution equal to a certain percentage of the sum of Participant’s
        Base Salary Deferrals and Bonus Deferrals.  The Matching Contribution
        percentage to be contributed to the Plan shall be equal to the matching
        contribution percentage provided under the 401(k) Plan.  Matching
        Contributions will be credited to the Participant’s Retirement Account as of the
        day on which the Base Salary Deferrals and/or Bonus Deferrals to which the
        Matching Contributions relate are credited to the Participant’s
        Account.

       

      4.5.           
        Make Whole IQC
        Contributions.

       

      For
        each
        calendar quarter, the Retirement Account of each eligible Participant shall
        be
        credited with the Make Whole IQC Contribution, if any, to which he is entitled
        under Section 2.1(v).

       

      4.6.           
        Discretionary Contributions.

       

      For
        each
        Plan Year, the Retirement Account of each eligible Participant shall be credited
        with such Discretionary Contribution, if any, as is determined by the Company
        for such Plan Year.

       

      4.7.           
        Suspension of Contributions.

       

      Anything
        contained herein to the contrary notwithstanding, a Participant who receives
        a
        distribution from the Plan due to an unforeseeable emergency shall not be
        eligible to make deferrals hereunder for a six (6) month period after receipt
        of
        such distribution.  If required by the terms of the 401(k) Plan, a
        Participant who receives a hardship distribution under the 401(k) Plan shall
        not
        be eligible to make deferrals under this Plan for a six (6) month period
        after
        receipt of the hardship distribution.

       

      4.8.           
        Transfer of Contributions to 401(k) Plan.

       

      As
        soon
        as practicable following the end of each Plan Year, but in no event later
        than
        March 15 of the Plan Year following the Plan Year for which the Participant
        executed the relevant Participation and Deferral Election Form, the lesser
        of:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (i)           
        the allowable pre-tax contribution which may be made on behalf of the
        Participant to the 401(k) Plan for the Plan Year for which the Participant
        executed the Participation and Deferral Election Form, and

       

      
        	
                 

              	
                (ii)

              	
                the
                  sum of the Base Salary Deferral and the Bonus Deferral for the
                  Plan Year
                  for which the Participant executed the Participation and Deferral
                  Election
                  Form, 

              

      

       

      shall
        be
        paid directly to the Participant as compensation earned in the Plan Year
        for
        which the Participant executed the Participation and Deferral Election Form,
        unless the Participant previously elected (in both the Participation and
        Deferral Election Form and his 401(k) Plan elections) to have such amount
        contributed to the 401(k) Plan as an elective pre-tax contribution.

       

      If
        the
        Participant elected to have such amount contributed to the 401(k) Plan as
        an
        elective pre-tax contribution, such amount together with an amount equal
        to the
        applicable Matching Contributions shall be transferred directly to the
        Participant’s account(s) in the 401(k) Plan and the appropriate Accounts and
        subaccounts of the Participant under the Plan shall be charged
        accordingly.  Notwithstanding the preceding, the Plan shall not make
        distributions to the Participant or the 401(k) Plan in excess of the
        Participant’s Account balance.  Distributions pursuant to this Section
        4.8 may be made in one or more installments in the sole discretion of the
        Committee.

       

      4.9.           
        Vesting.

       

      A
        Participant shall be 100% vested at all times in that portion of his Account
        which is attributable to Base Salary Deferrals and Bonus
        Deferrals.  Matching Contributions, Make Whole IQC Contributions,
        Profit Sharing Contributions and Discretionary Contributions shall vest in
        accordance with the vesting schedule contained in the 401(k)
        Plan.  Notwithstanding the foregoing, if permitted by the Secretary of
        the Treasury in regulations or rulings, all Matching Contributions, Make
        Whole
        IQC Contributions, Profit Sharing Contributions and Discretionary Contributions
        shall be 100% vested immediately upon a Change in Control. Any provisions
        of the
        Plan relating to the distribution of a Participant’s Account shall mean only the
        vested portion of such Account. Since the Plan is unfunded, the portion of
        a
        Participant’s Account which is not vested and therefore not distributed with the
        vested portion of his Account shall remain property of the Company and shall
        not
        be allocated to the Accounts of other Participants or otherwise inure to
        their
        benefit.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        V.

       

      ACCOUNTS

       

      5.1.           
        Establishment of Bookkeeping Accounts.

       

      A
        separate bookkeeping Account or Accounts shall be maintained for each
        Participant. Such Account(s) shall be credited with the Base Salary Deferrals
        and Bonus Deferrals made by the Participant pursuant to Section 4.1, Matching
        Contributions made by the Company pursuant to Section 4.4, Make Whole IQC
        Contributions made pursuant to Section 4.5, Discretionary Contributions made
        pursuant to Section 4.6 and any unvested amounts held under the Invacare
        Corporation 401(k) Plus Benefit Equalization Plan prior to January 1, 2005
        and
        transferred to this Plan, credited (or charged, as the case may be) with
        the
        hypothetical investment results determined pursuant to Section 5.3, and charged
        with distributions made to or with respect to a Participant.

       

      5.2.           
        Subaccounts.

       

      Within
        each Participant’s bookkeeping Account, separate subaccounts shall be maintained
        to the extent necessary or desirable for the administration of the
        Plan.  In particular, separate bookkeeping accounts shall be
        maintained for distributions to be made upon a Participant’s Retirement and for
        distributions to be made upon attainment of the future calendar year
        distribution dates selected by the Participant.

       

      5.3.           
        Earnings Elections.

       

      Amounts
        credited to a Participant’s Account shall be credited or charged with earnings
        and losses based on hypothetical investments elected by the
        Participant.  A Participant may elect different investment allocations
        for new contributions and existing Account balances.  Only whole
        percentages may be elected, the minimum percentage for any allocation is
        1%, and
        the total elections must allocate 100% of all new contributions and 100%
        of all
        existing Account balances.  Investment elections may be changed daily,
        by written direction.  The hypothetical investment alternatives and
        the procedures relating to the election of such investments, other than those
        set forth in this Section 5.3, shall be determined by the Committee from
        time to
        time.  A Participant’s Account shall be adjusted as of each Valuation
        Date to reflect investment gains and losses.

       

      Notwithstanding
        the foregoing provisions of this Section 5.3, if investment in Invacare Stock
        is
        permitted hereunder, the Company in its sole discretion, shall have the
        authority to place such restrictions upon the investment directions of any
        person who is subject to Section 16(b) of the Securities Exchange Act of
        1934 as
        amended (“Insider”) as shall be appropriate to comply with such
        section.  Such restrictions shall include, but shall not be limited to
        the following:  Insiders shall be permitted to submit investment
        directions relating to Invacare Stock only on a “semi-annual date” which is no
        less than six (6) months after the date of the most recent investment direction
        received from such Insider relating to Invacare Stock.  For purposes
        of this Section 5.3, the term “semi-annual date” shall mean a date which is
        within the period that begins the third business day following the date on
        which
        the Company’s first fiscal

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      quarter
        and third fiscal quarter summary statements of sales and earnings shall be
        released and which ends on the twelfth business day following such release
        date.

       

      5.4.           
        Hypothetical Accounts and Creditor Status of Participants.

       

      The
        Accounts established under this Article V shall be hypothetical in nature
        and
        shall be maintained for bookkeeping purposes only, so that Base Salary
        Deferrals, Bonus Deferrals, Matching Contributions, Discretionary Contributions,
        Make Whole IQC Contributions and Profit Sharing Contributions can be credited
        to
        the Participant and so that earnings and losses on such amounts so credited
        can
        be credited (or charged, as the case may be).  Neither the Plan nor
        any of the Accounts (or subaccounts) shall hold any actual funds or
        assets.  The right of any person to receive one or more payments under
        the Plan shall be an unsecured claim against the general assets of the
        Company.  Any liability of the Company to any Participant, former
        Participant, or Beneficiary with respect to a right to payment shall be based
        solely upon contractual obligations created by the Plan.  Neither the
        Company, the Board, nor any other person shall be deemed to be a trustee
        of any
        amounts to be paid under the Plan.  Nothing contained in the Plan, and
        no action taken pursuant to its provisions, shall create or be construed
        to
        create a trust of any kind, or a fiduciary relationship, between the Company
        and
        a Participant, former Participant, Beneficiary, or any other
        person.

       

      5.5.           
        Investments.

       

      The
        Company may, in its sole discretion, acquire insurance policies, annuities
        or
        other financial vehicles for the purpose of providing future assets to the
        Company to meet its anticipated liabilities under the Plan.  Such
        policies, annuities, or other investments, shall at all times be and remain
        unrestricted general property and assets of the Company or property of a
        trust
        established pursuant to this Plan.  Participants and Beneficiaries
        shall have no rights, other than as general creditors, with respect to any
        such
        policies, annuities or other acquired assets.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        VI.

       

      PAYMENT
        OF ACCOUNT

       

      

       

      6.1.           
        Timing of Distribution of Accounts.

       

      Distribution
        of a Participant’s Retirement Account shall be made or shall commence to be made
        as soon as practicable following the Participant’s
        Retirement.  Distribution of a Participant’s In-Service Distribution
        Accounts shall be made or shall commence to be made as soon as practicable
        following the expiration of the Deferral Period selected by the Participant
        for
        such Accounts.  Notwithstanding the foregoing, the Participant’s
        entire Account shall be distributed to him (or his Beneficiary in the event
        of
        his death) as soon as practicable following the earliest to occur of the
        following:

       

      (i)           
        the Participant’s death;

       

      (ii)           
        the Participant’s disability; or

       

      (iii)           
        the Participant’s separation from service.

       

      In
        the
        event of distribution upon separation from service (for reasons other than
        disability, death or Change in Control), actual payment of the Participant’s
        Accounts shall not occur until six (6) months after the date of separation
        from
        service, if the Participant is a “key employee” (as defined under Internal
        Revenue Code Section 416(i) without regard to paragraph (5) thereof), and
        the
        Company’s stock is publicly traded on an established securities market or
        otherwise.

       

      6.2.           
        Adjustment for Investment Gains and Losses Upon a Distribution.

       

      Upon
        a
        distributable event described in Section 6.1, the balance of a Participant’s
        Account shall be determined as of the Valuation Date immediately following
        such
        event.

       

      6.3.           
        Form of Payment.

       

      Except
        as
        provided below, a Participant’s Retirement Account shall be paid in one of the
        following forms as elected by the Participant:

       

      
        	
                 

              	
                (a)

              	
                A
                  lump sum amount which is equal to the applicable Account balance;
                  or
                  

              

      

       

      
        	
                 

              	
                (b)

              	
                Substantially
                  equal annual installments amortized over a period of years not
                  to exceed
                  fifteen (15) years. Gains and losses on the unpaid balance shall
                  continue
                  to be credited or charged to the Account in accordance with the
                  provisions
                  of Section 5.3. The 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                amount
                  of the installments payable may be changed annually to reflect
                  investment
                  results. 

              

      

       

      Except
        as
        provided below, a Participant’s In-Service Distribution Accounts shall be paid
        in one of the following forms as elected by the Participant:

       

      
        	
                 

              	
                (a)

              	
                A
                  lump sum amount which is equal to the applicable Account balance;
                  or
                  

              

      

       

      
        	
                 

              	
                (b)

              	
                Substantially
                  equal annual installments amortized over a period of years not
                  to exceed
                  five (5) years. Gains and losses on the unpaid balance shall continue
                  to
                  be credited or charged to the Account in accordance with the provisions
                  of
                  Section 5.3. The amount of the installments payable may be changed
                  annually to reflect investment results.

              

      

       

      The
        form
        elected by a Participant with respect to his Retirement Account and/or his
        In-Service Distribution Account(s) shall apply to each such entire
        Account.

       

      Notwithstanding
        the form elected, if a Participant incurs a separation from service prior
        to his
        Retirement, disability, or death or if the Participant’s total Account value is
        not more than Ten Thousand Dollars ($10,000) on the last Valuation Date prior
        to
        the commencement of distribution, the benefit shall be paid in a single lump
        sum
        as soon as practicable following his separation from service.

       

      6.4.           
        Change in Date or Form of Distribution.

       

      A
        Participant’s election with respect to the date or form of distribution may be
        revised at the Committee’s sole discretion, provided that the revised election
        does not accelerate the distribution of his Account.  Any revision to
        the date or form of payment shall be made at least 12 months prior to the
        original distribution date and any new payment commencement date must be
        at
        least five (5) years after the original commencement date.

       

      6.5.           
        Protective Distributions.

       

      If
        the
        Administrator determines, in its sole discretion, that a Participant is not,
        or
        may not be, a member of a “select group of management or highly compensated
        employees” within the meaning of Section 201(2), 301(a)(3), 401(a)(1) or
        4021(b)(6) of ERISA, then the Administrator may, in its sole discretion,
        terminate the Participant’s participation in the Plan.  In such event,
        if permitted by law and regulations, the Administrator may distribute all
        amounts credited to the Participant’s Accounts in a single lump sum payment at
        such time as the Administrator shall determine in its sole
        discretion.

       

      6.6.           
        Designation of Beneficiaries.

       

      Each
        Participant shall have the right, at any time, to designate one (1) or more
        persons or an entity as Beneficiary (both primary as well as secondary) to
        whom
        benefits under this Plan shall be paid in the event of a Participant’s death
        prior to complete distribution of the

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Participant’s
        Account. Each Beneficiary designation shall be in a written form prescribed
        by
        the Committee and will be effective only when filed with the Committee during
        the Participant’s lifetime. Designation by a married Participant of a
        Beneficiary other than the Participant’s spouse shall not be effective unless
        the spouse executes a written consent that acknowledges the effect of the
        designation and is witnessed by a notary public, or the consent cannot be
        obtained because the spouse cannot be located.

       

      6.7.           
        Change of Beneficiary Designation.

       

      Except
        as
        provided below, any nonspousal designation of Beneficiary may be changed
        by a
        Participant without the consent of such Beneficiary by the filing of a new
        designation with the Committee. The filing of a new designation shall cancel
        all
        designations previously filed.

       

      6.8.           
        Change in Marital Status.

       

      If
        the
        Participant’s marital status changes after the Participant has designated a
        Beneficiary, the following shall apply:

       

      
        	
                 

              	
                (a)

              	
                If
                  the Participant is married at death but was unmarried when the
                  designation
                  was made, the designation shall be void unless the spouse has consented
                  to
                  it in the manner prescribed above. 

              

      

       

      
        	
                 

              	
                (b)

              	
                If
                  the Participant is unmarried at death but was married when the
                  designation
                  was made: 

              

      

       

      
        	
                 

              	
                (i)

              	
                The
                  designation shall be void if the spouse was named as Beneficiary.
                  The
                  designation shall remain valid if a nonspouse Beneficiary was named.
                  

              

      

       

      
        	
                 

              	
                (ii)

              	
                If
                  the Participant was married when the designation was made and is
                  married
                  to a different spouse at death, the designation shall be void unless
                  the
                  new spouse has consented to it in the manner prescribed above.
                  

              

      

       

      6.9.           
        No Beneficiary Designation.

       

      If
        any
        Participant fails to designate a Beneficiary in the manner provided above,
        or if
        the Beneficiary designated by a deceased Participant dies before the Participant
        or before complete distribution of the Participant’s benefits, the Participant’s
        Beneficiary shall be the person in the first of the following classes in
        which
        there is a survivor:

       

      (a)           
        The Participant’s surviving spouse;

       

      
        	
                 

              	
                (b)

              	
                The
                  Participant’s children in equal shares, except that if any of the children
                  predeceases the Participant but leaves issue surviving, then such
                  issue
                  shall take by right of representation the share the parent would
                  have
                  taken if living; 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                (c)

              	
                The
                  Participant’s parents; 

              

      

       

      (d)           
        The Participant’s estate.

       

      6.10.                      
        Unclaimed Benefits.

       

      In
        the
        case of a benefit payable on behalf of a Participant, if the Committee is
        unable
        to locate the Participant or Beneficiary to whom such benefit is payable,
        such
        benefit may be forfeited to the Company, upon the Committee’s determination.
        Notwithstanding the foregoing, if subsequent to any such forfeiture the
        Participant or Beneficiary to whom such benefit is payable makes a valid
        claim
        for such benefit, such forfeited benefit shall be paid by the Company or
        restored to the Plan by the Company.

       

      6.11.                      
        Withdrawals for Unforeseeable Emergency.

       

      A
        Participant may apply in writing to the Committee for, and the Committee
        may
        permit, a withdrawal of all or any part of a Participant’s Account derived from
        Base Salary and Bonus Deferrals if the Committee, in its sole discretion,
        determines that the Participant has incurred an unforeseeable emergency
        resulting from a sudden and unexpected illness or accident of the Participant
        or
        of a dependent (as defined in section 152(a) of the Code) of the Participant,
        loss of the Participant’s property due to casualty, or other similar
        extraordinary and unforeseeable circumstances arising as a result of events
        beyond the control of the Participant. The amount that may be withdrawn shall
        be
        limited to the amount reasonably necessary to relieve the emergency upon
        which
        the request is based, plus the federal and state taxes due on the withdrawal,
        as
        determined by the Committee. The Committee may require a Participant who
        requests a withdrawal on account of an unforeseeable emergency to submit
        such
        evidence as the Committee, in its sole discretion, deems necessary or
        appropriate to substantiate the circumstances upon which the request is
        based.

       

      6.12.                      
        Withholding.

       

      All
        deferrals and distributions shall be subject to legally required income and
        employment tax withholding.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        VII.

       

      ADMINISTRATION

       

      7.1.           
        Committee.

       

      The
        Plan
        shall be administered by a Committee, which shall include the Senior Vice
        President of Human Resources and the Chief Financial Officer. The Committee
        shall be responsible for the general operation and administration of the
        Plan
        and for carrying out the provisions thereof. The Committee may delegate to
        others certain aspects of the management and operational responsibilities
        of the
        Plan including the employment of advisors and the delegation of ministerial
        duties to qualified individuals, provided that such delegation is in writing.
        No
        member of the Committee who is a Participant shall participate in any matter
        relating to his status as a Participant or his rights or entitlement to benefits
        as a Participant.

       

      7.2.           
        General Powers of Administration.

       

      The
        Committee shall be the Plan Administrator under ERISA.  The
        Administrator will be responsible for the general administration of the Plan
        and
        will have all powers as may be necessary to carry out the provisions of the
        Plan
        and may, from time to time, establish rules for the administration of the
        Plan
        and the transaction of the Plan’s business.  In addition to any
        powers, rights and duties set forth elsewhere in this Plan, it will have
        the
        following powers and duties:

       

      
        	
                 

              	
                (a)

              	
                To
                  enact rules, regulations, and procedures and to prescribe the use
                  of such
                  forms as it deems advisable; 

              

      

       

      
        	
                 

              	
                (b)

              	
                To
                  appoint or employ agents, attorneys, actuaries, accountants, assistants
                  or
                  other persons (who may also be Participants in this Plan or be
                  employed by
                  or represent the Company) at the expense of the Company, as it
                  deems
                  necessary to keep its records or to assist it in taking any other
                  action
                  authorized or required under the Plan;

              

      

       

      
        	
                 

              	
                (c)

              	
                To
                  interpret the Plan, and to resolve ambiguities, inconsistencies
                  and
                  omissions, to determine any question of fact, to determine the
                  right to
                  benefits of, and the amount of benefits, if any, payable to, any
                  person in
                  accordance with the provisions of the Plan and resolve all questions
                  arising under the Plan; 

              

      

       

      
        	
                 

              	
                (d)

              	
                To
                  administer the Plan in accordance with its terms and any rules
                  and
                  regulations it establishes; and 

              

      

       

      
        	
                 

              	
                (e)

              	
                To
                  maintain records concerning the Plan as it deems sufficient to
                  prepare
                  reports, returns and other information required by the Plan or
                  by law; and
                  

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                (f)

              	
                To
                  direct the Company to pay benefits under the Plan, and to give
                  other
                  directions and instructions as may be necessary for the proper
                  administration of the Plan. 

              

      

       

      Any
        decision, interpretation or other action made or taken by the Administrator
        arising out of or in connection with the Plan, will be within the absolute
        discretion of the Administrator, and will be final, binding and conclusive
        on
        the Company, and all Participants and Beneficiaries and their respective
        heirs,
        executors, administrators, successors and assigns.  The
        Administrator’s determinations under the Plan need not be uniform, and may be
        made selectively among Participants, whether or not they are similarly
        situated.

       

      7.3.           
        Indemnification of Committee.

       

      The
        Company shall indemnify the members of the Committee against any and all
        claims,
        losses, damages, expenses, including attorney’s fees, incurred by them, and any
        liability, including any amounts paid in settlement with their approval,
        arising
        from their action or failure to act, except when the same is judicially
        determined to be attributable to their gross negligence or willful
        misconduct.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        VIII.

       

      DETERMINATION
        OF BENEFITS, CLAIMS PROCEDURE AND ADMINISTRATION

       

      8.1.           
        Claims.

       

      A
        Participant, Beneficiary or other person who believes that he or she is being
        denied a benefit to which he or she is entitled (hereinafter referred to
        as
“Claimant”), or his or her duly authorized representative, may file a written
        request for such benefit with the Committee setting forth his or her claim.
        The
        request must be addressed to the Committee at the Company at its then principal
        place of business.

       

      8.2.           
        Claim Decision.

       

      Upon
        receipt of a claim, the Committee shall advise the Claimant that a reply
        will be
        forthcoming within a reasonable period of time, but ordinarily not later
        than
        ninety days, and shall, in fact, deliver such reply within such period. However,
        the Committee may extend the reply period for an additional ninety days for
        reasonable cause. If the reply period will be extended, the Committee shall
        advise the Claimant in writing during the initial 90-day period indicating
        the
        special circumstances requiring an extension and the date by which the Committee
        expects to render the benefit determination.

       

      If
        the
        claim is denied in whole or in part, the Committee will render a written
        opinion, using language calculated to be understood by the Claimant, setting
        forth:

       

      (a)           
        the specific reason or reasons for the denial;

       

      
        	
                 

              	
                (b)

              	
                the
                  specific references to pertinent Plan provisions on which the denial
                  is
                  based; 

              

      

       

      
        	
                 

              	
                (c)

              	
                a
                  description of any additional material or information necessary
                  for the
                  Claimant to perfect the claim and an explanation as to why such
                  material
                  or such information is necessary; 

              

      

       

      
        	
                 

              	
                (d)

              	
                appropriate
                  information as to the steps to be taken if the Claimant wishes
                  to submit
                  the claim for review, including a statement of the Claimant’s right to
                  bring a civil action under Section 502(a) of ERISA following an
                  adverse
                  benefit determination on review; and

              

      

       

      
        	
                 

              	
                (e)

              	
                the
                  time limits for requesting a review of the denial under Section
                  8.3 and
                  for the actual review of the denial under Section 8.4.
                  

              

      

       

      If
        no
        notice is provided, the claim will be deemed denied.  The
        interpretations, determinations and decisions of the Administrator will be
        final
        and binding upon all persons with respect to any right, benefit and privilege
        hereunder, subject to the review procedures set forth in this
        Article.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.3.           
        Request for Review of a Denied Claim.

       

      Within
        sixty days after the receipt by the Claimant of the written opinion described
        above, the Claimant may request in writing that the Senior Vice President
        of
        Human Resources of the Company (“Executive Officer”) review the Committee’s
        prior determination. Such request must be addressed to the Executive Officer
        at
        the Company at its then principal place of business. The Claimant or his
        or her
        duly authorized representative may submit written comments, documents, records
        or other information relating to the denied claim, which information shall
        be
        considered in the review under this Section without regard to whether such
        information was submitted or considered in the initial benefit
        determination.

       

      The
        Claimant or his or her duly authorized representative shall be provided,
        upon
        request and free of charge, reasonable access to, and copies of, all documents,
        records and other information which (i) was relied upon by the Committee
        in
        making its initial claims decision, (ii) was submitted, considered or generated
        in the course of the Committee making its initial claims decision, without
        regard to whether such instrument was actually relied upon by the Committee
        in
        making its decision or (iii) demonstrates compliance by the Committee with
        its
        administrative processes and safeguards designed to ensure and to verify
        that
        benefit claims determinations are made in accordance with governing Plan
        documents and that, where appropriate, the Plan provisions have been applied
        consistently with respect to similarly situated claimants. If the Claimant
        does
        not request a review of the Committee’s determination within such 60-day period,
        he or she shall be barred and estopped from challenging such
        determination.

       

      8.4.           
        Review of Decision.

       

      Within
        a
        reasonable period of time, ordinarily not later than sixty days, after the
        Executive Officer’s receipt of a request for review, it will review the
        Committee’s prior determination. If special circumstances require that the
        sixty-day time period be extended, the Executive Officer will so notify the
        Claimant within the initial 60-day period indicating the special circumstances
        requiring an extension and the date by which the Executive Officer expects
        to
        render its decision on review, which shall be as soon as possible but not
        later
        than 120 days after receipt of the request for review. In the event that
        the
        Executive Officer extends the determination period on review due to a Claimant’s
        failure to submit information necessary to decide a claim, the period for
        making
        the benefit determination on review shall not take into account the period
        beginning on the date on which notification of extension is sent to the Claimant
        and ending on the date on which the Claimant responds to the request for
        additional information.

       

      Benefits
        under the Plan will be paid only if the Executive Officer decides in its
        discretion that the Claimant is entitled to such benefits. The decision of
        the
        Executive Officer shall be final and non-reviewable, unless found to be
        arbitrary and capricious by a court of competent review. Such decision will
        be
        binding upon the Company and the Claimant.

       

      If
        the
        Executive Officer makes an adverse benefit determination on review, the
        Executive Officer will render a written opinion, using language calculated
        to be
        understood by the Claimant, setting forth:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (a)           
        the specific reason or reasons for the denial;

       

      
        	
                 

              	
                (b)

              	
                the
                  specific references to pertinent Plan provisions on which the denial
                  is
                  based; 

              

      

       

      
        	
                 

              	
                (c)

              	
                a
                  statement that the Claimant is entitled to receive, upon request
                  and free
                  of charge, reasonable access to, and copies of, all documents,
                  records and
                  other information which (i) was relied upon by the Executive Officer
                  in
                  making its decision, (ii) was submitted, considered or generated
                  in the
                  course of the Executive Officer making its decision, without regard
                  to
                  whether such instrument was actually relied upon by the Executive
                  Officer
                  in making its decision or (iii) demonstrates compliance by the
                  Executive
                  Officer with its administrative processes and safeguards designed
                  to
                  ensure and to verify that benefit claims determinations are made
                  in
                  accordance with governing Plan documents, and that, where appropriate,
                  the
                  Plan provisions have been applied consistently with respect to
                  similarly
                  situated claimants; and 

              

      

       

      
        	
                 

              	
                (d)

              	
                a
                  statement of the Claimant’s right to bring a civil action under Section
                  502(a) of ERISA following the adverse benefit determination on
                  such
                  review. 

              

      

       

      8.5.           
        Discretionary Authority.

       

      The
        Committee and Executive Officer shall both have discretionary authority to
        determine a Claimant’s entitlement to benefits upon his claim or his request for
        review of a denied claim, respectively.

       

      

       

      ARTICLE
        IX.

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

       

      AMENDMENT
        AND TERMINATION

       

      

       

      9.1.           
        Power to Amend or Terminate.

       

      The
        Company reserves the right, by action of its Board in its sole discretion,
        to
        retroactively or prospectively amend, modify or terminate this Plan at any
        time.

       

      9.2.           
        Distribution Upon Plan Termination.

       

      In
        the
        event that the Plan is terminated and distribution is permitted by law or
        regulation, the balance in a Participant’s Account shall be paid to such
        Participant or his Beneficiary in a lump sum or in equal monthly installments
        over the following period, unless the Committee determines
        otherwise:

       

      Account
        Balance                                                                   
Payout
        Period

       

      $50,000
        or
        less                                                                             
Lump Sum

       

      More
        than $50,000 but less than
        $250,000                                                                                     
3 Years

       

      $250,000
        or
        more                                                                             
5 Years

       

      Gains
        and
        losses shall continue to be credited or charged to the Account in accordance
        with the provisions of Section 5.3. The Company reserves the right to pay
        each
        Account in a lump sum, notwithstanding the above schedule.

       

      9.3.           
        Protective Amendments Due to Change in Law.

       

      
        	
                 

              	
                (a)

              	
                Change
                  in Tax
                  Laws.  Without limiting the generality of the amendment
                  and termination provisions in Section 9.1, the Company may, by
                  action of
                  its Board in its sole discretion, unilaterally amend, modify or
                  terminate
                  the Plan, retroactively or prospectively, to address or reflect
                  changes in
                  the actual or anticipated federal, state or local income or payroll
                  tax
                  consequences (or any other tax consequences) affecting either the
                  Company,
                  or any Participant or Beneficiary, including without limitation,
                  those due
                  to any of the following: 

              

      

       

      
        	
                 

              	
                (i)

              	
                the
                  enactment or amendment of any federal, state or local tax or revenue
                  law;
                  

              

      

       

      
        	
                 

              	
                (ii)

              	
                the
                  promulgation or publication of any regulation, ruling or similar
                  announcement by the Secretary of the Treasury Department, the Internal
                  Revenue Service or any other relevant federal, state or local tax
                  authority; 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                (iii)

              	
                a
                  decision by a court of competent jurisdiction involving a Participant
                  or
                  Beneficiary; 

              

      

       

      
        	
                 

              	
                (iv)

              	
                a
                  closing agreement made under Code Section 7121 that is approved
                  by the
                  Internal Revenue Service and involves a Participant, or any similar
                  agreement involving any state or local tax authority; or
                  

              

      

       

      
        	
                 

              	
                (v)

              	
                any
                  similar type of change or any alteration in the expectations of
                  the
                  Company regarding the income or payroll tax impacts of the Plan.
                  

              

      

       

      Any
        such
        amendment or modification should be consistent, as determined by the Company
        in
        its sole discretion, with the changes in tax consequences and may include
        the
        transfer of unanticipated tax burdens to Participants and
        Beneficiaries.

       

      
        	
                 

              	
                (b)

              	
                Change
                  in Securities
                  Laws.  Without limiting the generality of the amendment
                  and termination provisions in Section 9.3, the Company may, by
                  action of
                  its Board in its sole discretion, unilaterally amend, modify or
                  terminate
                  the Plan, retroactively or prospectively, to address or reflect
                  changes in
                  the securities laws or changes in the expectations of the Company
                  regarding the application of securities laws to the Plan or the
                  Company
                  with regard to the Plan.  Any such amendment, modification or
                  termination should be consistent, as determined by the Company
                  in its sole
                  discretion, with the changes in the actual or anticipated securities
                  law
                  impacts of the Plan and may include limiting the rights of individuals
                  to
                  make deferrals, refunding deferred amounts, distributing Accounts
                  or
                  allowing Participants to rescind deferral elections.
                  

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        X.

       

      MISCELLANEOUS

       

      10.1.                      
        Plan Not a Contract of Employment.

       

      The
        adoption and maintenance of the Plan shall not be or be deemed to be a contract
        between the Company and any person or to be consideration for the employment
        of
        any person. Nothing herein contained shall give or be deemed to give any
        person
        the right to be retained in the employ of the Company or to restrict the
        right
        of the Company to discharge any person at any time; nor shall the Plan give
        or
        be deemed to give the Company the right to require any person to remain in
        the
        employ of the Company or to restrict any person’s right to terminate his
        employment at any time.

       

      10.2.                      
        Non-Assignability of Benefits.

       

      No
        Participant, Beneficiary or distributee of benefits under the Plan shall
        have
        any power or right to transfer, assign, anticipate, hypothecate or otherwise
        encumber any part or all of the amounts payable hereunder, which are expressly
        declared to be unassignable and non-transferable. Any such attempted assignment
        or transfer shall be void. No amount payable hereunder shall, prior to actual
        payment thereof, be subject to seizure by any creditor of any such Participant,
        Beneficiary or other distributee for the payment of any debt, judgment, or
        other
        obligation, by a proceeding at law or in equity, nor transferable by operation
        of law in the event of the bankruptcy, insolvency or death of such Participant,
        Beneficiary or other distributee hereunder.

       

      10.3.                      
        Severability.

       

      If
        any
        provision of this Plan shall be held illegal or invalid for any reason, said
        illegality or invalidity shall not affect the remaining provisions hereof;
        instead, each provision shall be fully severable and the Plan shall be construed
        and enforced as if said illegal or invalid provision had never been included
        herein.

       

      10.4.                      
        Governing Laws.

       

      All
        provisions of the Plan shall be construed in accordance with the internal
        laws
        (but not the choice of laws) of Ohio, except to the extent preempted by federal
        law.

       

      10.5.                      
        Binding Effect.

       

      This
        Plan
        shall be binding on each Participant and his heirs and legal representatives
        and
        on the Company and its successors and assigns.

       

      10.6.                      
        Entire Agreement.

       

      This
        document and any amendments contain all the terms and provisions of the Plan
        and
        shall constitute the entire Plan, any other alleged terms or provisions being
        of
        no effect.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      10.7.                      
        No Guaranty of Tax Consequences.

       

      While
        the
        Company has established, and will maintain, the Plan, the Company makes no
        representation, warranty, commitment, or guaranty concerning the income,
        employment, or other tax consequences of participation in the Plan under
        federal, state, or local law.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Company has caused this Plan to be executed on this
        28th
        day of December, 2004.

       

      

      INVACARE
        CORPORATION

      

      By
/s/
        Gregory C. Thompson

      
 

      And
/s/
        Joseph
        Usaj

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AMENDMENT
        NO.
        1

      TO

      INVACARE
        CORPORATION
        DEFERRED COMPENSATION PLUS PLAN

       

      This
        Amendment No. 1 to the Invacare
        Corporation Deferred Compensation Plus Plan is hereby adopted as of the date
        set
        forth below by Invacare Corporation, an Ohio corporation (the
“Company”).

      WITNESSETH:

       

      WHEREAS,
        effective January 1, 2005, the
        Company established a deferred savings plan known as the Invacare Corporation
        Deferred Compensation Plus Plan (the “Plan”) to provide unfunded deferred
        compensation to certain management and highly compensated employees of the
        Company; and

      WHEREAS,
        also on January 1, 2005,
        Internal Revenue Code Section 409A became effective to impose new requirements
        on deferred compensation, including the requirement that the form of payment
        be
        fixed at the time income is deferred, and the requirement that any later
        election to change that form of payment be subject to restrictions which
        include
        a 12-month notice period and a 5-year postponement of the payment commencement
        date (the “Election Restrictions”); and

      WHEREAS,
        the Plan is permitted to
        provide a “transition election” in 2006 by which the participants can elect, on
        or before December 31, 2006, to change the designated time and form of payment
        of their deferrals without being subject to the Election Restrictions;
        and

      WHEREAS,
        the Company desires to
        provide the Plan participants with such a transition election;
        and

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      WHEREAS,
        the Company desires to make
        certain additional changes to the Plan to allow employees of the Company’s
        affiliates to participate, to modify a participant’s eligibility to make bonus
        deferrals, to modify a participant’s eligibility for the transfer of deferrals
        to the Invacare Retirement Savings Plan, and to clarify certain forfeiture
        and
        contribution suspension provisions applicable to in-service
        withdrawals;  and

      WHEREAS,
        pursuant to Section 9.1 of the
        Plan, the Company has retained the right to make amendments thereto;
        and

      NOW,
        THEREFORE, the Company hereby
        amends the Plan, effective as of the dates indicated below, as
        follows:

      1.           
        Effective January 1, 2006, Section 1.3 of the Plan is amended by the deletion
        of
        said Section and the substitution, in lieu thereof, of a new Section 3.1
        to read
        as follows:

      “1.3.                      
        Purposes of Plan.

       

      The
        purposes of the Plan are to provide
        deferred compensation for a select group of management or highly compensated
        Employees and to provide eligible Employees the opportunity to maximize their
        elective contributions to the Invacare Retirement Savings Plan (the ‘401(k)
        Plan’) notwithstanding certain limitations in the Code.”

      

      2.           
        Effective January 1, 2006, Section 2.1 of the Plan is amended by the deletion
        of
        the paragraph (g) therein, and the substitution, in lieu thereof, of a new
        paragraph (g) to read as follows:

      “(g)           
        ‘Employee’ means any common-law employee of the Company or any person with whom
        the Company would be considered a single employer under Code Section 414(b)
        or
        (c).”

      

      3.           
        Effective January 1, 2006, Section 3.1 of the Plan is amended by the deletion
        of
        said Section and the substitution, in lieu thereof, of a new Section 3.1
        to read
        as follows:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “3.1.                      
        Participation.

      Participants
        in the Plan are those Employees who are (a) subject to the income tax laws
        of
        the United States, (b) members of a select group of highly compensated or
        management Employees, and (c) selected by the Committee or its delegates,
        in its
        sole discretion, as Participants. The Committee shall notify each Participant
        of
        his selection as a Participant.  An Employee who satisfies the
        eligibility requirements set forth in subsections (a) and (b) shall remain
        eligible to continue participation in the Plan for each Plan Year following
        his
        selection by the Committee as a Participant.”

       

      4.           
        Effective January 1, 2007, Section 4.1 of the Plan is amended by the deletion
        of
        the first paragraph therein, and the substitution, in lieu thereof, of a
        new
        paragraph to read as follows:

      “Before
        the first day of each calendar year, a Participant may file with the Committee
        a
        Participation and Deferral Election Form pursuant to which such Participant
        elects to make Base Salary Deferrals.  A Participant must file a
        Participation and Deferral Election form to make Bonus Deferrals at a time
        prescribed by the Committee which time shall be not later than six (6) months
        before the end of the 12 month period over which the services upon which
        the
        Bonus Compensation is based are performed.  A Participant shall be
        entitled to defer a whole percent of his Base Salary or Bonus Compensation,
        subject to a maximum deferral of fifty percent (50%) of Base Salary and one
        hundred percent (100%) of Bonus Compensation.  The prior provisions
        notwithstanding, an Employee who first becomes eligible to participate in
        the
        Plan during a Plan Year shall not be entitled to make Bonus Deferrals until
        the
        first day of the calendar year beginning on or after becoming
        eligible.  Deferral elections shall be subject to any other rules
        prescribed by the Committee in its sole discretion.”

       

      5.           
        Effective January
        1, 2007, Section 4.8 of the Plan is amended by the deletion of the last
        paragraph therein, and the substitution, in lieu thereof, of a new paragraph
        to
        read as follows:

      “If
        the Participant elected to have
        such amount contributed to the 401(k) Plan as an elective pre-tax contribution,
        and the Participant is an Employee on the last day of the Plan Year (or
        terminated during the Plan Year due to death, Disability or Retirement),
        such
        amount together with an amount equal to the applicable Matching Contributions
        shall be transferred directly to the Participant’s account(s) in the 401(k) Plan
        and the appropriate Accounts and subaccounts of the Participant under the
        Plan
        shall be charged accordingly.  If the Participant made such election
        but failed to qualify for such transfer because of a failure to remain an
        Employee on the last day of the Plan Year, such amount shall not be

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      transferred
        but rather shall remain in the Participant’s Account under the
        Plan.  In no event shall the Plan make distributions to the
        Participant or transfers the 401(k) Plan in excess of the Participant’s Account
        balance.  Distributions pursuant to this Section 4.8 may be made in
        one or more installments in the sole discretion of the Committee.”

       

      6.           
        Effective January 1, 2005, a new Section 4.10 is added to the Plan to read
        as
        follows:

      
        	
                 

              	
                “4.10

              	
                Suspension
                  and Forfeiture
                  Following Accelerated Distribution of Grandfathered Deferrals
                     

              

      

       

      A
        Participant who elects to receive an
        accelerated distribution from the Participant’s account under the Benefit
        Equalization Plan shall forfeit the unvested portion of his Account under
        the
        Plan and shall be suspended from making contributions to the Plan for the
        two
        (2) consecutive Plan Years which begin on or after the date of such
        distribution.”

       

      7.           
        Effective December 31, 2006, Section 6.1 of the Plan is amended by the deletion
        of the last paragraph therein, and the substitution, in lieu thereof, of
        a new
        paragraph to read as follows:

      “In
        the event of distribution upon
        separation from service (for reasons other than disability, death or Change
        in
        Control) which occurs at a time that the Company’s stock is publicly traded on
        an established securities market or otherwise, actual payment of the
        Participant’s Accounts shall not occur until six (6) months after the date of
        the separation from service if the Participant is a key employee as defined
        under Code Section 416(i) without regard to paragraph (5) thereof (a ‘Key
        Employee’).  The Committee shall identify those individuals who
        constitute the Key Employees on each December 31 (beginning with December
        31,
        2006) for its use in determining those Participants who shall be considered
        Key
        Employees during the 12-month period beginning on the April 1 following such
        December 31.”

       

      8.           
        Effective November 1, 2006, Section 6.4 of the Plan is amended by the deletion
        of said Section and the substitution, in lieu thereof, of a new Section 6.4
        to
        read as follows:

      “6.4.                      
        Change in Date or Form
        of
        Distribution.

      

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      A
        Participant’s election with respect to the date or form of distribution may be
        revised at the Committee’s sole discretion, provided that the revised election
        does not accelerate the distribution of his Account in a manner prohibited
        under
        Code Section 409A.  Any revision to the date or form of payment shall
        be made at least 12 months prior to the original distribution date and any
        new
        payment commencement date must be at least five (5) years after the original
        commencement date.

       

      The
        prior provisions of this Section
        notwithstanding, pursuant to the relief granted in IRS Notice 2005-1,
        Q&A-19(c) as
        extended in the Proposed Treasury Regulations under Code Section 409A (Section
        XI.C. of the Preambles), a Participant shall be permitted to make a new election
        in 2006 regarding the form of distribution of the Participant’s Account,
        provided that such election is made in writing and filed with the Committee
        no
        later than December 31, 2006.  Such election shall be immediately
        effective; provided,
        however, that such election shall not operate to change the form of
        distribution of amounts that otherwise would be payable in 2006, nor will
        it
        operate to make payable in 2006 amounts that would not otherwise be payable
        in
        that year.”

      

      IN
        WITNESS WHEREOF, the Company, by its
        appropriate officers duly authorized, has caused this Amendment No. 1 to
        be
        executed as of this 28th day of December, 2006.

      
         

        
          	 	INVACARE
                  CORPORATION	 
	 	 	 	 
	
                   

                	
                  By:
                    

                	/s/ Joseph
                  Usaj	 
	 	 	Joseph
                  Usaj	 
	 	 	 	 
	 	 	 	 

        

         

        
          	 	 	 
	 	 	 	 
	
                   

                	
                  And:
                    

                	/s/ Gregory
                  C. Thompson	 
	 	 	Gregory
                  C. Thompsonexhibit10o.htm

    Exhibit 10(o)

    

       

      

       

      

       

      

       

      

       

      

       

      INVACARE
        CORPORATION

       

      DEATH
        BENEFIT ONLY
        PLAN

       

      

       

      

       

      

       

      

       

      

       

      

       

      Effective:  January
        1, 2005

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      DEATH
        BENEFIT ONLY
        PLAN

       

      THIS
        PLAN is adopted by INVACARE
        CORPORATION, an Ohio corporation (hereinafter referred to as the
“Company”);

      WITNESSETH:

       

      WHEREAS,
        certain of the Company’s key
        executives previously have participated in Company-sponsored life insurance
        programs which is being terminated by the Company; and

      

      WHEREAS,
        the Company desires to provide
        all or certain of such key executives with a plan providing only death benefits
        effective as of January 1, 2005, provided that such key executives satisfy
        the
        conditions for participation as determined by the Company in its sole and
        absolute discretion; and

      

      WHEREAS,
        the Board of Directors of the
        Company has approved the establishment of this Plan.

      

      NOW,
        THEREFORE, effective as of January
        1, 2005, the Company hereby adopts the Invacare Corporation Death Benefit
        Only
        Plan, as follows:

      

       

      ARTICLE
        I

       

      DEFINITIONS

       

      1.1            
        Affiliate.  The
        word “affiliate” shall mean any corporation or business organization during any
        period during which it is a member of a controlled group of corporations
        or
        trades or businesses which includes the Company within the meaning of Sections
        414(b) and 414(c) of the Internal Revenue Code.

      

      1.2            
        Beneficiary.  The
        word “beneficiary” shall mean any person who receives or is designated to
        receive payment of a benefit under the terms of this Plan on the death of
        a
        participant.

      

      1.3            
        Bonus
        Plan.  The words “Bonus Plan” shall mean the Management
        Incentive Plan of Invacare Corporation, as in effect on the date hereof and
        as
        it may be amended from time to time hereafter.

      

      1.4           
        Committee.  The
        word “Committee” shall mean chief financial officer, and the Company’s Human
        Resources officer or director.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.5           
        Company.  The
        word “Company” shall mean Invacare Corporation, an Ohio corporation, or any
        successor corporation or other business organization which shall assume the
        obligations of the Company under this Plan as provided herein with respect
        to
        the participants and their beneficiaries.

       

      

      1.6            
        Director.  The
        word “Director” shall mean a member of the Company’s Board of
        Directors.

      

      1.7            
        Earnings.  The
        word “Earnings” shall mean the Participant’s annual base salary in effect on the
        immediately preceding April 1st or on the date of the Termination of Service
        of
        a Participant, if the Termination of Service occurs on April 1st, plus the
        Participant’s Target Bonus.

      

      1.8            
        Effective
        Date.  The words “Effective Date” of this Plan shall mean
        January 1, 2005.

      

      1.9            
        Employee.  The
        word “Employee” shall mean an individual who receives salary for personal
        services rendered to the Company.

      

      1.10            
        Final
        Earnings.  The words “Final Earnings” shall mean the
        Participant’s highest annual Earnings in effect for each of the three years
        ending on his Termination of Service.

      

      1.11            
        Normal Retirement
        Date.  The words “Normal Retirement Date” shall mean the date
        the Participant attains age 65.

      

      1.12            
        Participant.  The
        word “Participant” shall mean any person who becomes a participant in this Plan
        and remains a participant in this Plan in accordance with Article II
        hereof.  A participant shall cease to be a participant upon the
        occurrence of an event described in Section 2.4 hereof.

      

      1.13            
        Plan.  The
        word “Plan” shall mean Invacare Corporation Death Benefit Only Plan as set forth
        herein and as amended from time to time hereafter.

      

      1.14            
        Plan
        Administrator.  The words “Plan Administrator” shall mean the
        Committee.

      

      1.15            
        Target
        Bonus.  The words “Target Bonus” shall mean the annual base
        salary in effect on the immediately preceding April 1st or on the date of
        the
        Termination of Service of a Participant, if Termination of Service occurs
        on
        April 1st, times the Target Bonus percentage in effect on that same date
        under
        the Company’s Bonus Plan.

      

      1.16            
        Termination of
        Service.  The words “Termination of Service” shall mean the
        Participant ceasing employment with the Company for any reason whatsoever
        whether voluntarily or involuntarily, including by reasons of retirement,
        death,
        or disability.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        II

       

      ELIGIBILITY
        AND
        PARTICIPATION

       

      2.1            
        Eligibility to
        Participate.  An Employee shall be qualified to become a
        participant under this Plan at such time as he is designated eligible to
        participate in the Plan by the Committee.  The Committee shall notify
        an eligible Employee in writing of his eligibility and of the actions necessary
        to become a participant hereunder, and shall provide him with the opportunity
        to
        become a participant.  Such Employee shall, within such time as the
        Committee shall determine:

      

      
        	
                 

              	
                (a)

              	
                furnish
                  to the Committee all information requested by it;
                  

              

      

       

      
        	
                 

              	
                (b)

              	
                execute
                  such documents and such instruments as the Committee may require
                  to
                  facilitate the administration of this Plan;

              

      

       

      
        	
                 

              	
                (c)

              	
                agree
                  in such form and manner as the Committee may require to be bound
                  by the
                  terms of this Plan and by the terms of such Amendments as may be
                  made
                  hereto; and 

              

      

       

      
        	
                 

              	
                (d)

              	
                truthfully
                  and fully answer any questions and supply any information which
                  the
                  Committee deems necessary or desirable for the proper administration
                  of
                  this Plan, without any reservations whatsoever.

              

      

       

      2.2            
        Date of
        Participation.  An eligible Employee who shall have timely done
        all acts required of him to become a participant shall become a participant
        on
        or as of such date as shall be specified by the Committee.

      

      2.3            
        Cessation of
        Participation.  A participant shall cease his participation
        under this Plan in the event of the termination of this Plan pursuant to
        Section
        6.1.

      

      2.4           
        Participation
        in Other
        Death Benefit Plans.  By becoming a Participant in this Plan,
        the Participant agrees to limit his coverage under the Group Life Insurance
        Plan, and all other group life insurance plans provided by the Company whether
        currently or in the future to $50,000.  Any Participant in this Plan
        may still participate in any accidental death and dismemberment plan offered
        by
        the Company.

       

      

       

      ARTICLE
        III

       

      DEATH
        BENEFITS

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      3.1           
        Death During
        Employment.  If a Participant’s death occurs while he/she is in
        the employ of the Company and prior to his Normal Retirement Date, his
        beneficiary shall receive a death benefit equal to three (3) times the
        Participant’s Earnings.

       

      

      3.2            
        Post-Termination
        Death
        Benefit.  A death benefit equal to one (1) times Final Earnings
        shall be payable on behalf of a Participant whose death occurs subsequent
        to
        either his Normal Retirement Date or his Termination of Employment.

      

      3.3            
        Beneficiary
        Designation.  A participant shall designate a beneficiary or
        beneficiaries to receive any amount due under this Article III by executing
        a
        written notice thereof to the Committee at any time prior to his death and
        may
        revoke or change the beneficiary designated therein without the consent of
        any
        person previously designated as beneficiary by written notice delivered to
        the
        Committee at any time and from time to time prior to his death.  If a
        participant shall have failed to designate a beneficiary, or if no designated
        beneficiary shall survive him, then such amount shall be paid to his spouse,
        if
        his spouse survives him, or, if his spouse doesn’t survive him, to the executor
        or administrator of his estate for distribution as part of his
        estate.

      

      3.4            
        Restriction on
        Payment.  Notwithstanding anything contained in this Plan to
        the contrary, no payment shall be made to the beneficiaries of a Participant
        under this Plan in the event that, within one year of the date of the
        Participant’s participation in the Plan, the Participant dies by suicide,
        whether sane or insane.

      

       

      ARTICLE
        IV

       

      FINANCING
        OF
        BENEFITS

       

      4.1            
        Funding.  The
        undertakings of the Company herein constitute merely the unsecured promise
        of
        the Company to provide the benefits set forth herein.  No property of
        the Company is or shall, by reason of this Plan, be held in trust for a
        participant, any designated beneficiary or any other person, and neither
        the
        participant nor any designated beneficiary nor any other person shall have,
        by
        reason of this Plan, any rights, title or interest of any kind in or to any
        property of the Company.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        V

       

      ADMINISTRATION

       

      5.1            
        Rights and Duties
        of
        Committee.  The Committee shall be responsible for the general
        administration of this Plan and shall have all such powers as may be necessary
        to carry out the provisions of this Plan and may, from time to time, establish
        rules for the administration of this Plan and the transaction of this Plan’s
        business.  The Committee shall have the following powers and
        duties:

      

      
        	
                 

              	
                (a)

              	
                To
                  enact such rules, regulations, and procedures and to prescribe
                  the use of
                  such forms as it shall deem advisable.

              

      

       

      
        	
                 

              	
                (b)

              	
                To
                  appoint or employ such agents, attorneys, actuaries, and assistants
                  at the
                  expense of the Company, as it may deem necessary to keep its records
                  or to
                  assist it in taking any other action.

              

      

       

      
        	
                 

              	
                (c)

              	
                To
                  interpret this Plan, and to resolve ambiguities, inconsistencies,
                  and
                  omissions, to determine any question of fact, to determine the
                  right to
                  benefits of, and amount of benefits, if any, payable to, any person
                  in
                  accordance with the provisions of this Plan.

              

      

       

      5.2           
        Claims
        Denial.  If any beneficiary or the authorized representative of
        a beneficiary shall file an application for benefits hereunder and such
        application is denied by the Committee, in whole or in part, he shall be
        notified in writing of the specific reason or reasons for such
        denial.  The notice shall also set forth the specific Plan provisions
        upon which the denial is based, an explanation of the provisions of Section
        6.3
        hereof, and any other information deemed necessary or advisable by the
        Committee.

      

      5.3            
        Review of Benefit
        Denial.  Any beneficiary or any authorized representative of a
        beneficiary whose application for benefits hereunder has been denied, in
        whole
        or in part, by the Committee may, upon written notice to the Committee, request
        a review by the Board of Directors of the Company of such denial of his
        application.  Such review may be made by written briefs submitted by
        the applicant and the Committee or at a hearing, or by both, as shall be
        deemed
        necessary by the Committee.  If the applicant requests a hearing, the
        Board of Directors shall appoint from its members an Appeal Examiner to conduct
        such hearing.  Any hearing conducted by an Appeal Examiner shall be
        held in such location as shall be reasonably convenient to the
        applicant.  The date and time of any such hearing shall be designated
        by the Appeal Examiner upon not less than seven (7) days’ notice to the
        applicant and the Committee unless both of them accept shorter
        notice.  The Appeal Examiner shall make every effort to schedule the
        hearing on a day and at a time which is convenient to both the applicant
        and the
        Committee.  If the applicant does not request a hearing, the Board of
        Directors may review the

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      denial
        of
        such benefits or may appoint an Appeal Examiner to review the
        denial.  After the review has been completed, the Board of Directors
        or the Appeal Examiner shall render a decision in writing, a copy of which
        shall
        be sent to both the applicant and the Committee.  In rendering its
        decision, the Board of Directors and the Appeal Examiner shall have full
        power
        and discretion to interpret this Plan, to resolve ambiguities, inconsistencies
        and omissions, to determine any question of fact, to determine the right
        to
        benefits of the applicant in accordance with the provisions of this
        Plan.  Such decision shall set forth the specific reason or reasons
        for the decision and the specific Plan provisions upon which the decision
        is
        based and, if the decision is made by an Appeal Examiner, the rights of the
        applicant or the Committee to request a review by the entire Board of Directors
        of the decision of the Appeal Examiner.  Either the applicant or the
        Committee may request a review of an adverse decision of the Appeal Examiner
        by
        filing a written request with the Board of Directors within thirty (30) days
        after they receive a copy of the Appeal Examiner’s decision.  The
        review of a decision of an Appeal Examiner shall be based solely on the written
        record and shall be conducted in accordance with the procedures of this Section
        6.3.  Except as provided in Section 6.4 hereof, there shall be no
        further appeal from a decision rendered by a quorum of the Board of
        Directors.

      

      5.4            
        Exclusive
        Remedy.  The interpretations, determinations and decisions of
        the Committee, Appeal Examiner and Board of Directors shall, except to the
        extent provided in Section 6.3 hereof and in this Section 6.4, be final and
        binding upon all persons with respect to any right, benefit and privilege
        hereunder.  The review procedures of said Section 6.3 shall be the
        sole and exclusive remedy and shall be in lieu of all actions at law, in
        equity,
        pursuant to arbitration or otherwise.

      

      5.5            
        Limitation of
        Duties.  The Company, Committee, Appeal Examiner, Board of
        Directors, and their respective officers, members, employees and agents shall
        have no duty or responsibility under this Plan other than the duties and
        responsibilities expressly assigned to them herein or delegated to them pursuant
        hereto.  None of them shall have any duty or responsibility with
        respect to the duties or responsibilities assigned or delegated to another
        of
        them.

      

      5.6            
        No Personal
        Liability.  The Committee, Board of Directors, Appeal Examiner,
        and their respective officers, employees, members and agents shall incur
        no
        personal liability of any nature whatsoever in connection with any act done
        or
        omitted to be done in the administration of this Plan.  The Company
        shall indemnify, defend, and hold harmless the Committee, Board of Directors,
        Appeal Examiner, and their respective officers, employees, members and agents,
        for all acts taken or omitted in carrying out their responsibilities under
        the
        terms of this Plan.  The Company shall indemnify such persons for
        expenses of defending an action by a participant, beneficiary, government
        entity, or other persons, including all legal fees and other costs of such
        defense.  The Company will also reimburse such a person for any
        monetary recovery in a successful action against such person in any federal
        or
        state court or arbitration.  In addition, if the claim is settled out
        of court with the concurrence of the Company, the Company shall indemnify
        such
        person for any monetary liability under said settlement.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        VI

       

      AMENDMENT
        AND
        TERMINATION

       

      6.1            
        Power to Amend
        and
        Terminate.  Subject to the provisions of Section 7.2 hereof,
        this Plan may be amended by the Company (by action of the Committee) at any
        time, or from time to time, and may be terminated by the Company (also by
        action
        of the Committee) at any time, but no such amendment or termination
        will:

      

      
        	
                 

              	
                (a)

              	
                deprive
                  any beneficiary of a totally and permanently disabled participant
                  of his
                  right to receive death benefits as provided in Article III hereof,
                  or
                  reduce the amount of such death benefits, without his consent;
                  or
                  

              

      

       

      
        	
                 

              	
                (b)

              	
                deprive
                  any beneficiary of a participant who is a retired Employee of his
                  right to
                  receive death benefits as provided by Article III hereof, or reduce
                  the
                  amount of such death benefits, without his consent.
                  

              

      

      

      Any
        such
        amendment or termination may, however, reduce or eliminate the death benefits
        provided by Article III hereof with respect to any participant (and the
        designated beneficiary of such participant) who is an Employee at the date
        of
        such amendment or termination of this Plan.

      

       

      

       

      ARTICLE
        VII

       

      MISCELLANEOUS

       

      7.1            
        No Guarantee of
        Employment.  Neither anything contained herein, nor any acts
        done in pursuance of this Plan, shall be construed as entitling any participant
        to be retained as an Employee for any period of time nor as obliging the
        Company
        to retain any participant as an Employee for any period of time, nor shall
        any
        participant nor anyone else have any rights whatsoever, legal or equitable,
        against the Company as a result of this Plan except those expressly granted
        to
        him hereunder.

      

      7.2            
        Taxes.  The
        Company shall deduct from each Participant’s compensation all applicable Federal
        or State taxes that may be required by law to be withheld resulting from
        the
        Company’s funding of the benefits payable under the Plan.

      

      7.3            
        Gross-Up Due to
        Taxable Income.  The Company may, in its sole discretion,
        increase the Participant’s compensation in an amount as determined by the
        Company

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      to
        provide additional compensation to the Participant to pay some or all of
        the
        income taxes on the taxable income referred to in Section 7.2
        above.

      

      7.4            
        Construction
        Rules.  Whenever any pronoun is used herein, it shall be
        construed to include the masculine pronoun, the feminine pronoun or the neuter
        pronoun as shall be appropriate.

      

      7.5            
        Governing
        Law.  This Plan shall be construed under and in accordance with
        and governed by the laws of the State of Ohio and the United States of
        America.

      

      7.6            
        Savings
        Clause.  In the event that any provisions or terms of this
        Plan, or any agreement or instrument required by the Committee hereunder,
        is
        determined by any judicial, quasi-judicial or administrative body to be void
        or
        not enforceable for any reason, all other provisions or terms of this Plan
        or
        such agreement or instrument shall remain in full force and effect and shall
        be
        enforceable as if such void or nonenforceable provision or term had never
        been a
        part of this Plan, or such agreement or instrument.

      

      7.7            
        Non-Alienation.  No
        benefits under this Plan shall be subject in any manner to be anticipated,
        alienated, sold, transferred, assigned, pledged, encumbered or charged, and
        any
        attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber
        or
        charge the same shall be void; nor shall any such benefits in any manner
        be
        liable for or subject to the debts, contracts, liabilities, engagements or
        torts
        of the person entitled to such benefits as are herein provided for
        him.

      

      7.8            
        Satisfaction of
        Claims.  Any payment to or for the benefit of any beneficiary,
        in accordance with the provisions of this Plan, shall to the extent thereof
        be
        in full satisfaction of all claims hereunder against this Plan, the Committee
        and the Company, any of whom may require such beneficiary, as a condition
        precedent to such payment, to execute a receipt and release therefor in such
        form as shall be determined by the Committee or the Company, as the case
        may
        be.

      

      7.9            
        Payment to Third
        Party.  If the Committee shall find that any person to whom any
        amount is payable under this Plan is unable to care for his affairs because
        of
        illness or accident, or is a minor, any payment due (unless a prior claim
        therefor shall have been made by a duly appointed guardian, committee or
        other
        legal representative) may be paid to the spouse, a child, a parent, or a
        brother
        or sister, or to any person deemed by the Committee to have incurred expense
        for
        such person otherwise entitled to payment, in such manner and proportions
        as the
        Committee may determine.

      

      7.10            
        Successors and
        Assigns.  The Company’s obligations under this Plan shall be
        binding on the Company’s successors and assigns.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, INVACARE
        CORPORATION, by its duly authorized officers, has caused this Plan to be
        executed as of this 28th day of December, 2004.

      

       

      INVACARE
        CORPORATION

       

      (“Company”)

       

      

      By
/s/
Gregory
C.
        Thompson

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      AMENDMENT
        NO. 1

      TO

      INVACARE
        CORPORATION

      DEATH
        BENEFIT ONLY PLAN

      

      

      This
        Amendment No. 1 is executed as of
        the date set forth below by Invacare Corporation (the “Company”).

      WITNESSETH:

      WHEREAS,
        effective January 1, 2005, the
        Company established the Invacare Corporation Death Benefit Only Plan (the
        “Plan”) for the purpose of providing death benefits to certain key executives of
        the Company; and

      WHEREAS,
        the Company reserved the right
        to amend the Plan pursuant to Section 6.1 thereof; and

      WHEREAS,
        the Company desires to amend
        the Plan in order to provide coverage for executives who are age sixty-three
        (63) and older when they become employees of the Company;

      NOW,
        THEREFORE, pursuant to Section 6.1
        of the Plan, effective as of January 1, 2006, the Company hereby amends Section
        1.11 of the Plan by the deletion of said Section 1.11 in its entirety and
        the
        substitution in lieu thereof of a new Section 1.11 to read as
        follows:

      “1.11                      
        Normal Retirement
        Date.  The words “Normal Retirement Date” shall mean
        (a)  with respect to a Participant whose date of hire with the Company
        occurs prior to his attainment of age 63, the date such Participant attains
        age
        65, and (b) with respect to a Participant whose date of hire with the Company
        occurs after the date such Participant attains age 63, the date such Participant
        attains age 70.”

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, Invacare
        Corporation, by action of the Committee established under the Plan, has caused
        this Amendment No. 1 to be executed as of the 30th day of August,
        2006.

       

      
         

        
          	 	INVACARE
                  CORPORATION	 
	 	 	 	 
	
                   

                	
                  By:
                    

                	/s/ Gregory
                  C. Thompson	 
	 	 	Gregory
                  C. Thompson	 
	 	 	 	 
	 	 	 	 

        

         

        
          	 	 	 
	 	 	 	 
	
                   

                	
                  And:
                    

                	/s/ Joseph
                  S. Usaj	 
	 	 	Joseph
                  S. Usaj	 
	 	 	 	 
	 

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      AMENDMENT
        NO. 2

      TO

      INVACARE
        CORPORATION

      DEATH
        BENEFIT ONLY PLAN

      

      

      This
        Amendment No. 2 is executed as of
        the date set forth below by Invacare Corporation (the “Company”).

      WITNESSETH:

      WHEREAS,
        effective January 1, 2005, the
        Company established the Invacare Corporation Death Benefit Only Plan (the
        “Plan”) for the purpose of providing death benefits to certain key executives of
        the Company; and

      WHEREAS,
        the Company reserved the right
        to amend the Plan pursuant to Section 6.1 thereof; and

      WHEREAS,
        the Company desires to amend
        the Plan in order to revise the benefit for executives who terminate employment
        prior to a Change of Control;

      NOW,
        THEREFORE, pursuant to Section 6.1
        of the Plan, effective as of the dates indicated below, the Company hereby
        amends the Plan as follows:

      1.           
        Effective December 31, 2006, Article I of the Plan is amended by the addition
        of
        a new Section 1.3A to read as follows:

      “1.3A                      
        Change of
        Control. A “Change of Control” shall be deemed to have occurred at the
        first time on which, after December 31, 2006:

       

      There
        is a report filed on Schedule 13D
        or Schedule 14D-1 (or any successor schedule, form, or report), each as adopted
        under the Securities Exchange Act of 1934, as amended, disclosing the
        acquisition, in a transaction or series of transactions, by any person (as
        the
        term “person” is used in Section 13(d) and Section 14(d)(2) of the Securities
        Exchange Act of 1934, as amended), other than A. Malachi Mixon and/or any
        Affiliate of A. Malachi Mixon, of such number of shares of Invacare as entitles
        that person to exercise 30% or more of the voting power of Invacare in the
        election of Directors; or

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      During
        any period of 24 consecutive
        calendar months, individuals who at the beginning of such period constitute
        the
        Directors of Invacare cease for any reason to constitute at least a majority
        of
        the Directors of Invacare unless the election of each new Director of Invacare
        (over such period) was approved or recommended by the vote of at least
        two-thirds of the Directors of Invacare then still in office who were Directors
        of Invacare at the beginning of the period; or

       

      There
        is a merger, consolidation,
        combination (as defined in Section 1701.01(Q), Ohio Revised Code), majority
        share acquisition (as defined in Section 1701.01(R), Ohio Revised Code),
        or
        control share acquisition (as defined in Section 1701.01(Z)(1), Ohio Revised
        Code, or in Invacare’s Articles of Incorporation) involving Invacare and, as a
        result of which, the holders of shares of Invacare prior to the transaction
        become, by reason of the transaction, the holders of such number of shares
        of
        the surviving or acquiring corporation or other entity as entitles them to
        exercise less than fifty percent (50%) of the voting power of the surviving
        or
        acquiring corporation or other entity in the election of Directors;
        or

       

      There
        is a sale, lease, exchange, or
        other transfer (in one transaction or a series of related transactions) of
        all
        or substantially all of the assets of Invacare, but only if the transferee
        of
        the assets in such transaction is not an Affiliate of Invacare; or

       

      The
        shareholders of Invacare approve
        any plan or proposal for the liquidation or dissolution of Invacare, but
        only if
        the transferee of the assets of Invacare in such liquidation or dissolution
        is
        not an Affiliate of Invacare.

       

      If
        an
        event described in any of Clauses (a), (b), (c), (d), and (e) occurs, a Change
        of Control shall be deemed to have occurred for all purposes of this
        Plan.”

       

      2.           
        Effective December 31, 2006, Section 2.3 of the Plan is amended and restated
        in
        its entirety to read as follows:

      “2.3            
        Cessation of
        Participation.  A participant shall cease his participation
        under this Plan in the event of the termination of this Plan pursuant to
        Section
        6.1 or in the event of a Termination of Service prior to a Change of Control
        (other than a Termination of Service that entitles him to benefits under
        Section
        3.2) .”

      

      3.           
        Effective December 31, 2006, Section 3.2 of the Plan is amended and restated
        in
        its entirety to read as follows:

      “3.2           
        Death After
        Termination of Employment or During Employment On or After Normal Retirement
        Date.  A death benefit equal to one (1) times Final Earnings
        shall be payable on behalf of a Participant whose death occurs
        either:

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (a)           
        while the Participant is in the employ of the Company and on or after the
        Participant’s Normal Retirement Date; or

      

      (b)           
        on or after a Termination of Service that occurs at any time on or after
        a
        Change in Control.

      

      For
        purposes of the foregoing, any Termination of Service that is effected before
        and primarily in contemplation of a Change of Control which actually occurs
        after the date of the Termination of Service shall be deemed to be a Termination
        of Service of the participant as of the date of the Change of
        Control.”

       

      4.           
        Effective as of the date of execution of this Amendment, Section 6.1 of the
        Plan
        is amended and restated in its entirety to read as follows:

      "6.1       Power
        to Amend and
        Terminate.  This Plan may be amended or terminated by the
        Company (by action of the Committee) at any time, or from time to time, prior
        to
        a Change of Control, but no such amendment or termination will reduce or
        eliminate the death benefits to which any beneficiary of a deceased participant
        is entitled under the Plan as of the date of such Committee action without
        the
        beneficiary's consent.  Any such amendment or termination may,
        however, reduce or eliminate the death benefits provided under the Plan with
        respect to any participant (and the designated beneficiary of such participant)
        whose death has not occurred as of the date of such Committee
        action.  This Plan may be amended after a Change of Control only with
        regard to participants who provide their written consent."

      

      

      IN
        WITNESS WHEREOF, Invacare
        Corporation, by action of the Committee established under the Plan, has caused
        this Amendment No. 2 to be executed as of the 16th day of April
        2007.

       

      
        	 	INVACARE
                CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
                  

              	/s/ Joseph
                S. Usaj	 
	 	 	Joseph
                S. Usaj	 
	 	 	 	 
	 	 	 	 

      

       

      
        	 	 	 
	 	 	 	 
	
                 

              	
                And:
                  

              	/s/ Gregory
                C. Thompson	 
	 	 	Gregory
                C. Thompson

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