Document:

exv10w1

Exhibit 10.1

AMENDMENT NO. 1

TO

AMENDED AND RESTATED FACTORING AND FINANCING AGREEMENT

     AMENDMENT NO. 1 TO AMENDED AND RESTATED FACTORING AND FINANCING AGREEMENT (this
“Amendment”) is entered into as of November 5, 2009 by and among CYNTHIA STEFFE
ACQUISITION, LLC, a New York limited liability company (“CS Acquisition”), S.L. DANIELLE
ACQUISITION, LLC, a New York limited liability company (“Danielle Acquisition”), BERNARD
CHAUS, INC., a New York corporation (“Chaus” and together with CS Acquisition and Danielle
Acquisition, individually, a “Company” and collectively, the “Companies”) and THE CIT
GROUP/COMMERCIAL SERVICES, INC. (“Lender”).

BACKGROUND

     The Companies and Lender are parties to an Amended and Restated Factoring and Financing
Agreement dated as of September 10, 2009 (as amended, modified, restated or supplemented from time
to time, the “Financing Agreement”) pursuant to which Lender provides financial
accommodations to the Companies.

     The Companies have requested that Lender amend the Financing Agreement as hereinafter provided
and Lender is willing to do so on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of any Revolving Loans or other grants of credit heretofore
or hereafter made to or for the account of the Companies by Lender, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

     1. Definitions. All capitalized terms not otherwise defined herein shall have the
meanings given to them in the Financing Agreement.

     2. Amendments to Financing Agreement. Subject to satisfaction of the conditions
precedent set forth in Section 3 below, the Financing Agreement is hereby amended as follows:

          (a) The definition of the term “Total Liabilities” set forth in Section 1 of the Financing
Agreement is hereby amended and restated in its entirety to read as follows:

Total Liabilities shall mean total liabilities determined in accordance with GAAP, on a
basis consistent with the latest audited consolidated financial statements of any Company and
its Subsidiaries, minus (i) the unamortized portion of the $4,000,000 supply premium
paid to the Borrowing Agent by China Ting Group Holdings Limited pursuant to that Exclusive
Supply Agreement dated July 24, 2009, as set forth on the balance sheet as current or long term
deferred income and (ii) the unrestricted cash on deposit in banks, as set forth on the balance
sheet as cash.

     3. Condition of Effectiveness. This Amendment shall become effective upon
satisfaction of each of the following conditions precedent (the date upon which all such conditions
precedent shall be satisfied, the “Effective Date”):

 

 

          (a) Lender shall have received four (4) copies of this Amendment, executed by the Companies
and acknowledged by the Guarantors.

     4. Representations and Warranties. The Companies hereby represent and warrant as
follows:

          (a) This Amendment and the Financing Agreement, as amended hereby, constitute legal, valid and
binding obligations of the Companies and are enforceable against each Company in accordance with
their respective terms.

          (b) Upon the Effective Date, the Companies hereby reaffirm all covenants, representations and
warranties made in the Financing Agreement to the extent the same are not amended hereby and agree
that all such covenants, representations and warranties shall be deemed to have been remade as of
the Effective Date.

          (c) No Event of Default or Default has occurred and is continuing or would exist after giving
effect to this Amendment.

          (d) The Companies have no defense, counterclaim or offset with respect to the Financing
Agreement.

     5. Effect on the Financing Agreement.

          (a) Upon the effectiveness of Section 2 hereof, each reference in the Financing
Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean
and be a reference to the Financing Agreement as amended hereby.

          (b) Except as specifically amended herein, the Financing Agreement, and all other documents,
instruments and agreements executed and/or delivered in connection therewith, shall remain in full
force and effect, and are hereby ratified and confirmed.

          (c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver
of any right, power or remedy of Lender, nor constitute a waiver of any provision of the Financing
Agreement, or any other documents, instruments or agreements executed and/or delivered under or in
connection therewith.

     6. Effect and Construction of Agreement. Except as expressly provided herein, the
Loan Documents shall remain in full force and effect in accordance with their respective terms, and
this Amendment shall not be construed to:

          (a) impair the validity, perfection or priority of any Lien securing the Obligations; or

          (b) waive or impair any rights, powers or remedies of Lender under, or constitute a waiver of,
any provision of the Loan Documents.

2

 

     7. Presumptions. The Companies acknowledge that they have consulted with and have
been advised by counsel and such other experts and advisors as they have deemed necessary in
connection with the negotiation, execution and delivery of this Amendment and has participated in
the drafting hereof. Therefore, this Amendment shall be construed without regard to any
presumption or rule requiring that it be construed against any one party causing this Agreement or
any part hereof to be drafted.

     8. Entire Agreement. This Amendment sets forth the entire agreement among the parties
hereto with respect to the subject matter hereof. The Companies have not relied on any agreements,
representations, or warranties of Lender, except as specifically set forth herein. Any promises,
representations, warranties or guarantees not herein contained and hereinafter made shall have no
force and effect unless in writing, signed by each party hereto. The Companies acknowledge that
they are not relying upon oral representations or statements inconsistent with the terms and
provisions of this Amendment.

     9. Further Assurances. The Companies shall execute such other and further documents
and instruments as Lender may reasonably request to implement the provisions of this Amendment and
to perfect and protect the liens and security interests created by or agreed upon in the Loan
Documents.

     10. Benefit of Agreement. This Amendment shall be binding upon, inure to the benefit
of and be enforceable by the parties hereto and their respective permitted successors and assigns.
No other person or entity shall be entitled to claim any right or benefit hereunder, including,
without limitation, any third-party beneficiary of this Amendment.

     11. Severability. The provisions of this Amendment are intended to be severable. If
any provisions of this Amendment shall be held invalid or unenforceable in whole or in part in any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such
invalidity or enforceability without in any manner affecting the validity or enforceability of such
provision in any other jurisdiction or the remaining provisions of this Amendment in any
jurisdiction.

     12. Governing Law, Jurisdiction, Venue. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York applied to contracts to be performed
wholly within the State of New York. Any judicial proceeding brought by or against any Company
with respect to this Amendment or any related agreement may be brought in any court of competent
jurisdiction in the State of New York, County of New York, United States of America, and, by
execution and delivery of this Amendment, each Company accepts for itself and in connection with
its properties, generally and unconditionally, the non-exclusive jurisdiction of the aforesaid
courts, and irrevocably agrees to be bound by any judgment rendered thereby in connection with this
Amendment. Nothing herein shall affect the right to serve process in any manner permitted by law
or shall limit the right of Lender to bring proceedings against any Company in the courts of any
other jurisdiction. Each Company waives any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or
based upon forum non conveniens. Any judicial proceeding by any Company against Lender involving,
directly or indirectly, any matter or claim in any way arising out of, related to or connected with
this Amendment or any related

3

 

agreement, shall be brought only in a federal or state court located in the State of New York,
County of New York.

     13. Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS
AMENDMENT, THE LOAN DOCUMENTS OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS
OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AMENDMENT, THE LOAN DOCUMENTS OR ANY
OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE
TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND EACH PARTY HEREBY CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT
ANY PARTY TO THIS AMENDMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY. IN ADDITION, EACH COMPANY WAIVES THE RIGHT TO CLAIM OR RECOVER IN ANY SUCH SUIT,
ACTION OR PROCEEDING ANY DAMAGES OTHER THAN OR IN ADDITION TO ACTUAL DAMAGES.

     14. Counterparts; Facsimile. This Amendment may be executed by the parties hereto in
one or more counterparts, each of which shall be deemed an original and all of which when taken
together shall constitute one and the same agreement. Any signature delivered by a party by
facsimile or “pdf” transmission shall be deemed to be an original signature hereto.

     15. Survival. All representations, warranties, covenants, agreements, undertakings,
waivers and releases of the Companies contained herein shall survive the termination of the
Financing Agreement and payment in full of the Obligations under the Loan Documents.

     16. Amendment. No amendment, modification, rescission, waiver or release of any
provision of this Amendment shall be effective unless the same shall be in writing and signed by
the Companies and Lender. This Amendment shall constitute a Loan Document.

     17. Headings. Section headings in this Amendment are included herein for convenience
of reference only and shall not constitute a part of this Amendment for any other purpose.

[Signature page follows this page]

4

 

     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first written
above.

	 	 	 	 	 
	 	THE CIT GROUP/COMMERCIAL SERVICES 

INC., as Lender

 	 
	 	By:  	/s/ Geoffrey Goldstein
 	 
	 	 	Name:  	Geoffrey Goldstein 	 
	 	 	Title:  	Vice President 	 
	 
	 	BERNARD CHAUS, INC.

 	 
	 	By:  	/s/ Barton Heminover
 	 
	 	 	Name:  	Barton Heminover 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	CYNTHIA STEFFE ACQUISITION, LLC

 	 
	 	By:  	/s/ Barton Heminover
 	 
	 	 	Name:  	Barton Heminover 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	S.L. DANIELLE ACQUISITION, LLC

 	 
	 	By:  	/s/ Barton Heminover
 	 
	 	 	Name:  	Barton Heminover 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Signature Page to Amendment No. 1 to the A&R Factoring and Financing Agreement

 

 

GUARANTOR ACKNOWLEDGEMENT

Each of the undersigned hereby acknowledges and agrees that, notwithstanding the execution of the
foregoing Amendment No. 1 to Amended and Restated Factoring and Financing Agreement, the
consummation of the amendments and transactions contemplated thereby, (i) all of the terms and
conditions, representations and covenants contained in the undersigned’s respective Guaranties and
Security Agreements are and shall remain in full force and effect in accordance with their
respective terms and (ii) the security interests and liens theretofore granted, pledged and/or
assigned under the Security Agreement as security for the Obligations shall not be impaired,
limited or affected in any manner whatsoever by reason of Amendment No. 1 to Amended and Restated
Factoring and Financing Agreement.

	 	 	 	 	 
	 	BERNARD CHAUS INTERNATIONAL (HONG

KONG), INC.

 	 
	 	By:  	/s/ Barton Heminover
 	 
	 	 	Name:  	Barton Heminover 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	BERNARD CHAUS INTERNATIONAL 

(KOREA), INC

 	 
	 	By:  	/s/ Barton Heminover
 	 
	 	 	Name:  	Barton Heminover 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	BERNARD CHAUS INTERNATIONAL 

(TAIWAN), INC

 	 
	 	By:  	/s/ Barton Heminover
 	 
	 	 	Name:  	Barton Heminover 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Signature Page to the Acknowledgement to Amendment No. 1 to the A&R Factoring and Financing Agreementexv4w1

Exhibit 4.1

FORD MOTOR COMPANY

BENEFIT EQUALIZATION PLAN

(Amended and Restated Effective as of December 31, 2008)

Section 1. Purpose.

The purpose of this Plan is to preserve certain benefits of employees under the Company’s tax
qualified General Retirement Plan, Ford Retirement Plan and Savings and Stock Investment Plan for
Salaried Employees by providing appropriate Equalization Benefits under this Plan in place of
benefits which cannot be provided under such tax qualified plans because of limitations imposed by
Section 415 and Section 401(a)(17) of the Internal Revenue Code of 1986, as amended, as well as
base salary amounts deferred to the Ford Motor Company Deferred Compensation Plan.

Section 2. Definitions.

As used in this Plan, the following terms shall have the following meanings, respectively:

          2.01 “BEP Salary Reductions” shall mean that portion of salary at the basic salary rate which
would have been credited to an Eligible Employee’s account before January 1, 1985 pursuant to a
salary reduction agreement under the SSIP but which, by reason of Code Section 415, exceeds salary
reduction contributions that can be made by the Company on an Eligible Employee’s behalf under the
Tax-Efficient Savings Program of the SSIP.

          2.02 “Code” shall mean the Internal Revenue Code of 1986, as amended.

          2.03 “Committee” shall mean the Compensation Committee of the Board of Directors of Ford Motor
Company.

          2.04 “Company” shall mean Ford Motor Company and such of the subsidiaries of Ford Motor
Company as, with the consent of Ford Motor Company, shall have adopted this Plan.

          2.05 “DCP” shall mean the Ford Motor Company Deferred Compensation Plan.

          2.06 “Designated Third Party Administrator” shall be Fidelity Institutional Retirement
Services Company or a successor vendor who the Company shall employ to act as record keeper to
maintain Eligible Employee subaccounts and process notional investment elections.

          2.07 “Eligible Employee” shall mean a salaried employee of the Company whose benefits under
the GRP, FRP and/or SSIP are limited as a result of the application of the limitations imposed by
Code Sections 415 and/or 401(a)(17) or due to base salary deferrals under the DCP.

          2.08 “Eligible Surviving Spouse” shall mean an Eligible Employee’s spouse, as defined by the
Federal Defense of Marriage Act of 1996, to whom the Eligible Employee has been married for at
least one year prior to the Eligible Employee’s date of death.

          2.09 “Equalization Benefits” shall mean FRP Equalization Benefits, Periodic GRP Equalization
Benefits and/or SSIP Equalization Benefits.

          2.10 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

          2.11 “ESAP” shall mean the Ford Motor Company Executive Separation Allowance Plan, as amended
from time to time.

          2.12 “FERCO SRP” shall mean the Ford Electronics and Refrigeration Corporation Salaried
Retirement Plan.

 

 

          2.13 “FRP” shall mean the Ford Retirement Plan, as amended from time to time.

          2.14 “FRP Equalization Benefit” shall mean the benefit provided pursuant to Section 3.03.

          2.15 “GRP” shall mean the Ford Motor Company General Retirement Plan, as amended from time to
time.

          2.16 “Limitations” shall mean the limitations on benefits and/or contributions imposed on
qualified plans by Code Sections 415 and 401(a)(17).

          2.17 “Periodic GRP Equalization Benefit” shall mean the benefit provided pursuant to Section
3.01.

          2.18 “Plan” shall mean this Ford Motor Company Benefit Equalization Plan, as amended from time
to time.

          2.19 “Plan Administrator” shall mean such person or persons to whom the Committee shall
delegate authority to administer the Plan.

          2.20 “SSIP” shall mean the Ford Motor Company Savings and Stock Investment Plan for Salaried
Eligible Employees, as amended from time to time.

          2.21 “SSIP Equalization Benefit” shall mean the benefit provided pursuant to Section 3.02.

          2.22 “Separation From Service” shall occur upon an Eligible Employee’s death, retirement or
other termination from employment with the Company.

          2.23 “Specified Employee” shall mean an Eligible Employee who is a “Key Employee” as defined
in Code Section 416(i)(1)(A)(i), (ii) or (iii), applied in accordance with the regulations
thereunder and disregarding Subsection 416(i)(5). A Specified Employee shall be identified as of
December 31st of each calendar year and such identification shall apply to any Specified Employee
who shall incur a Separation From Service in the 12-month period commencing April 1st of the
immediately succeeding calendar year. An Eligible Employee who is determined to be a Specified
Employee shall remain a Specified Employee throughout such 12-month period regardless of whether
the Eligible Employee meets the definition of “Specified Employee” on the date the Eligible
Employee incurs a Separation From Service. This provision is effective for Specified Employees who
incur a Separation From Service on or after January 1, 2005. For purposes of determining Specified
Employees, the definition of compensation under Treasury Regulation Section 1.415(c)-2(d)(3) shall
be used, applied without the use of any of the special timing rules provided in Treasury Regulation
Section 1.415(c)-2(e) or the special rule in Treasury Regulation Section 1.415(c)-2(g)(5)(i), but
applied with the use of the special rule in Treasury Regulation Section 1.415(c)-2(g)(5)(ii).

          2.24 “Subsidiary” shall mean, as applied with respect to any person or legal entity specified,
(i) a person or legal entity with a majority of the voting stock of which is owned or controlled,
directly or indirectly, by the person or legal entity specified or (ii) any other type of business
organization in which the person or legal entity specified owns or controls, directly or
indirectly, a majority interest.

          2.25 “Totally and Permanently Disabled” shall mean an Eligible Employee who:

	 	(a)	 	is not engaged in regular employment or occupation for remuneration or profit
(including employment with the Company and/or its Subsidiaries, but excluding
employment or occupation which the Plan Administrator determines to be for purposes of
rehabilitation);
	 
	 	(b)	 	is determined by the Plan Administrator, on the basis of medical evidence, to
be totally disabled by bodily injury or disease so as to be prevented thereby from
engaging in any regular occupation with the Company, where such disability has been
continuous for at
least 5 months, and where the Plan Administrator determines such disability will be
permanent and continuous during the remainder of such Eligible Employee’s life; and

 

 

	 	(c)	 	has earned at least 10 years of credited service under the GRP.

Section 3. Equalization of Benefits.

          3.01 GRP Equalization Benefits.

	 	(a)	 	A Periodic GRP Equalization Benefit shall be provided to any Eligible Employee (i)
whose GRP benefit is subject to the Limitations or delayed pursuant to provisions set
forth in (b)(iii), and (ii) who, at the time of Separation From Service, has earned at
least 5 years of credited service under the GRP (or, if age 65 or older, has earned at
least 1 year of credited service under the GRP).
	 
	 	(b)	 	The Periodic GRP Equalization Benefit:

	 	(i)	 	Shall be equal in amount to the difference between the GRP benefit
the Eligible Employee would receive if the Eligible Employee commenced GRP
benefits upon Separation From Service and the corresponding benefit that would be
payable under the GRP without regard to the Limitations. For purposes of
determining such amount, the Eligible Employee shall be treated as if he or she
elected to receive his or her GRP benefit in the form of the qualified joint and
survivor annuity benefit under the GRP if married, or the single life annuity
form of benefit under the GRP if unmarried (including, a divorced or widowed
Eligible Employee). The amount of any Periodic GRP Equalization Benefit payable
to an Eligible Employee whose benefit under the ESAP is not offset or reduced by
the amount of any GRP benefit payable to such Eligible Employee prior to age 65
shall be increased upon the Eligible Employee’s attainment of age 65 to reflect
an unreduced normal retirement benefit under the GRP. In determining the amount
of the Periodic GRP Equalization Benefit, the Eligible Employee’s salary shall be
the Eligible Employee’s salary (as that term is defined in the GRP) plus BEP
Salary Reductions for periods before January 1, 1985 which are credited under
this Plan pursuant to Section 3.02(a)(ii)(C) below, but the Eligible Employee
shall not make contributions hereunder based on such BEP Salary Reductions.
	 
	 	(ii)	 	Shall be paid monthly by the Company to an Eligible Employee who
has had a Separation From Service and, for distributions commencing on and after
January 1, 2005, shall be paid commencing on the first day of the month following
the earliest of the following dates:

(A) the first date on or after Separation From Service on which such
Eligible Employee attains age 55, if the Separation From Service occurs
prior to the date on which the Eligible Employee earns 30 years of
credited service under the GRP;

(B) the date of Separation From Service, if the Separation From Service
occurs on or after the date on which the Eligible Employee earned 30
years of credited service under the GRP; or

(C) the date on which such Eligible Employee is determined to be Totally
and Permanently Disabled.

	 	(iii)	 	Notwithstanding any other provision of the Plan to the contrary,
if a Specified Employee incurs a Separation From Service, other than as a result
of such Specified Employee’s death, payment of any Periodic GRP Equalization
Benefit, shall not commence (or be paid) earlier than the first day of the
seventh month following Separation From Service. Any Periodic GRP Equalization
Benefit payments to which a Specified Employee otherwise would have been entitled
during the first six months following such Specified Employee’s Separation From
Service shall be accumulated and paid in a lump sum payment on or after the first
day of the seventh month following such Separation From Service. The payment
delayed under this Section shall not bear interest.

 

 

	 	(c)	 	Upon an Eligible Employee’s death, the Eligible Employee’s Eligible Surviving
Spouse will receive a monthly benefit under the Plan in an amount equal to the difference
between any GRP benefit the Eligible Surviving Spouse receives and the corresponding
benefit that would be payable to the Eligible Surviving Spouse under the GRP without
regard to the Limitations. Payment of any such Eligible Surviving Spouse benefit shall
commence as soon as administratively practicable following the Eligible Employee’s death,
but in no event after the later of: (i) the December 31st immediately
following the Eligible Employee’s death, or (ii) the 15th day of the third
month immediately following the Eligible Employee’s death. Any such Eligible Surviving
Spouse benefit shall cease upon the death of the Eligible Surviving Spouse.
	 
	 	(d)	 	GRP Equalization Benefits commencing on or before December 31, 2004, shall be made
in accordance with the terms and conditions of the Plan in effect at the time of such
commencement. GRP Equalization Benefits commencing on and after January 1, 2005 shall be
made as periodic payments pursuant to Section 3.01(b).

          3.02 Savings and Stock Investment Plan Equalization Benefits.

	 	(a)	 	Pre-1985 Subaccount.
	 
	 	 	 	The provisions of this Subsection 3.02(a) shall apply in determining that part of an
Eligible Employee’s SSIP Equalization Benefit subaccount based on periods of service
until December 31, 1984.

	 	(i)	 	For an Eligible Employee who made the election regarding payroll
deductions provided in this Subsection, or who elected to have credited under
this Plan BEP Salary Reductions, a SSIP Equalization Benefit shall be provided
with respect to any class or classes of the SSIP before January 1, 1985 with
respect to which Company or Eligible Employee contributions were subject to the
Limitations.
	 
	 	(ii)	 	If at any time during a plan year ending before January 1, 1985 it
appeared that contributions by or on behalf of an Eligible Employee (including
any related Company matching contributions) to the SSIP would be subject to the
Limitations, such Eligible Employee may have elected to have the Company retain
in its general funds and have credited for purposes of computing the Eligible
Employee’s subaccount of the SSIP Equalization Benefit under this Subsection
3.02(a):

	 	(A)	 	by payroll deduction authorization under this Plan
that portion of the amount the Eligible Employee had elected to contribute
as employee regular savings contributions to the SSIP for such pay period
(by a payroll deduction authorization in effect for such pay period under
the SSIP) which, when added to all other actual and projected Annual
Additions as defined under the SSIP during such plan year, exceeded the
Limitations.
	 
	 	(B)	 	that portion of regular savings and related earnings
which have been returned to the Eligible Employee pursuant to the SSIP,
and
	 
	 	(C)	 	the Eligible Employee’s BEP Salary Reductions.

	 	(iii)	 	There has been established for each Eligible Employee a subaccount
for periods of participation under this Subsection 3.02(a) under the SSIP
Equalization Benefit Account. This subaccount shall be equal to the amounts
retained by the Company pursuant to Subsection 3.02(a)(ii), adjusted on the basis
of investment performance and the Eligible Employee’s election as to investment
of funds under the SSIP and transfer of the value of employee and Company
contributions under
the SSIP as though contributions and credits to the Eligible Employee’s account
hereunder had been so invested, less any withdrawals pursuant to Subsection
3.02(a)(iv); provided, however, that an election by a Company officer of
investment 

 

 

	 	 	 	in Company common stock shall not apply under this Plan with respect
to contributions pursuant to Subsection 3.02(a)(ii) (other than related Company
matching contributions) which were made or credited hereunder by or on behalf
of such Company officer; and the officer will be required to make any other
investment election permitted under the SSIP with respect to such amounts.
	 
	 	(iv)	 	An Eligible Employee may not withdraw any amounts in excess of the
Eligible Employee’s regular savings contributions under this Plan and may not
borrow against the subaccount of the Eligible Employee’s SSIP Equalization
Benefit.
	 
	 	(v)	 	The SSIP Equalization Benefit under this Subsection 3.02(a) shall
be equal to the amount at the time of distribution credited to the Eligible
Employee’s subaccount of the SSIP Benefit Equalization Account as determined
under Subsection 3.02(a)(iii).

	 	(b)	 	Post-1984 Subaccount.
	 
	 	 	 	The provisions of this Subsection 3.02(b) shall apply in determining an Eligible
Employee’s SSIP Equalization Benefit subaccount based on periods of service beginning
on or after January 1, 1985.

	 	(i)	 	If at any time during a plan year beginning on or after January
1, 1985 contributions by or on behalf of an Eligible Employee and related
Company matching contributions to the SSIP are subject to the Limitations, there
shall be credited for purposes of computing the Eligible Employee’s SSIP
Equalization Benefit under this Subsection 3.02(b) an amount equal to the
Company matching contributions which would have been made under the SSIP based
upon the Eligible Employee’s SSIP elections, except that such Company matching
contributions cannot be made because of the Limitations. For plan years
beginning on or after January 1, 2005, if the amount credited as an Eligible
Employee’s SSIP Equalization Benefit for a plan year increases or decreases as a
result of a change in the Eligible Employee’s SSIP deferral elections for such
plan year, such increase or decrease in the SSIP Equalization Benefit shall be
adjusted to the extent necessary to prevent such increase or decrease, when
aggregated with all SSIP Equalization Benefits credited for such plan year, from
exceeding the amount of Company matching contributions that would have been
contributed to the SSIP had the Limitations not applied.
	 
	 	(ii)	 	If at any time during a plan year an Eligible Employee elects to
defer base salary amounts to the DCP, there shall be credited for purposes of
computing the Eligible Employee’s SSIP Equalization Benefit under this
Subsection 3.02(b) an amount equal to the Company matching contributions that
would have been contributed to the SSIP had the Eligible Employee not made base
salary deferrals to the DCP.
	 
	 	(iii)	 	For periods on or after October 1, 1995 until May 31, 2007, any
Company matching contributions credited for purposes of computing an Eligible
Employee’s SSIP Equalization Benefit shall be credited in the form of units in
the Ford Stock Fund rather than shares of Ford common stock. For periods on or
after June 1, 2007, any Company matching contributions so credited shall be
credited in the form of cash.
	 
	 	(iv)	 	There shall be established for each Eligible Employee a
subaccount for periods of participation under this Subsection 3.02(b) under the
SSIP Equalization Benefit Account. For periods prior to May 1, 1996, this
subaccount shall be equal to the amounts credited by the Company pursuant to
Subsection 3.02(b)(i), adjusted on the basis of investment performance and any
election by the Eligible Employee to
transfer the value of matured Company matching contributions under the SSIP, as
though credits to the Eligible Employee’s account hereunder had been so
invested. For periods May 1, 1996 and after, this subaccount shall be equal to
the 

 

 

	 	 	 	amounts credited by the Company pursuant to Subsection 3.02(b)(i), and
adjusted on the basis of investment performance attributable to any separate
investment election made by an Eligible Employee (other than a Company officer)
on or after May 1, 1996. The investment options for managing the subaccount
shall be identical to the investment options specified in the SSIP, although
they will have separate fund codes. Any BEP credits earned will be based on
the investment options available under the SSIP. The Designated Third Party
Administrator will maintain the accounts and process the elections and
otherwise be the record keeper with respect to this subaccount. Company
officers with this subaccount are not eligible to reallocate or transfer
credits under the subaccount from the Ford Stock Fund to other investment
options, or from other investment options to the Ford Stock Fund.
	 
	 	(v)	 	An Eligible Employee may not withdraw any amounts credited under
this Subsection 3.02(b) and may not borrow against this subaccount of the
Eligible Employee’s SSIP Equalization Benefit. This subaccount will not accept
rollovers from other plans.
	 
	 	(vi)	 	The SSIP Equalization Benefit under this Subsection 3.02(b) shall
be equal to the amount at the time of distribution credited to the Eligible
Employee’s subaccount of the SSIP Benefit Equalization Account as determined
under Subsection 3.02(b)(ii).
	 
	 	(vii)	 	In the event of death of an Eligible Employee with an SSIP
Benefit Equalization subaccount, the balance of the subaccount shall be payable
to the same beneficiary as the Eligible Employee has designated under the SSIP,
unless the Eligible Employee makes a separate designation under this Plan
pursuant to the rules established by the Committee.

	 	(c)	 	Payment of SSIP Equalization Benefit.
	 
	 	 	 	The SSIP Equalization Benefit:

	 	(i)	 	Shall be paid in a lump sum cash payment by the Company to the
Eligible Employee or, if the Eligible Employee is deceased, to the Eligible
Employee’s beneficiary under the SSIP, and shall be made as soon as practicable
after the earlier of the Eligible Employee’s Separation From Service or death,
but in no event shall such payment be made after the later of (i) the December
31st following the Eligible Employee’s Separation From Service or
death, or (ii) the 15th day of the third month following the Eligible
Employee’s Separation From Service or death. In the event of an Eligible
Employee’s death, the balance of the Eligible Employee’s SSIP Equalization
Benefit book entry account, if any, shall be payable to the same beneficiary as
the Eligible Employee’s beneficiary under the SSIP, unless the Eligible Employee
makes a separate designation under this Plan pursuant to the rules established by
the Committee.
	 
	 	(ii)	 	Notwithstanding any other provision of the Plan to the contrary, if
a Specified Employee incurs a Separation From Service, other than as a result of
death, payment of the amount credited to such Specified Employee’s SSIP
Equalization Benefit subaccount, accrued or vested after December 31, 2004, shall
be paid no earlier than the first day of the seventh month following such
Separation From Service. A Specified Employee who is subject to a six-month
distribution delay pursuant to this Subsection 3.02(c)(ii) will be permitted to
continue to manage the investment elections applicable to such Specified
Employee’s subaccount during the six-month distribution delay.
	 
	 	(iii)	 	The SSIP Equalization Benefit under this Subsection 3.02(c) shall
be equal to the amount credited to the Eligible Employee’s book entry account at
the time of distribution, as determined under Subsection 3.03(a) or (b), as
applicable.

 

 

          3.03 Ford Retirement Plan (FRP) Equalization Benefits

	 	(a)	 	FRP Subaccount.
	 
	 	 	 	The provisions of this Subsection 3.03(a) shall apply in determining an Eligible Employee’s FRP
Equalization Benefit for periods of service beginning on or after January 1, 2004.

	 	(i)	 	The Company shall establish a book entry account for each Eligible Employee for
purposes of computing the Eligible Employee’s FRP Equalization Benefit under this Section
3.03. The Eligible Employee’s FRP Equalization Benefit under this Subsection 3.03(a)
shall be equal to the amount(s) credited to the book entry account at the time of
distribution.
	 
	 	(ii)	 	If, at any time during a plan year beginning on or after January 1, 2004,
contributions made to the FRP on behalf of an Eligible Employee are limited due to the
application of the Limitations, there shall be credited to the book entry account
established for the Eligible Employee pursuant to this Subsection 3.03(a) an amount equal
to the amount of Company contributions that would have been made under the FRP on behalf
of the Eligible Employee but for the application of the Limitations.
	 
	 	(iii)	 	Each Eligible Employee’s book entry account also will be credited or debited with
amounts determined based on investment options selected by the Eligible Employee under
this Subsection 3.03(a)(iii). The investment options available for selection under this
Subsection 3.03(a)(iii) shall be identical to the investment options available under the
FRP, but will have separate fund codes. Each Eligible Employee shall select which
investment options are to be used in determining the Eligible Employee’s FRP Equalization
Benefit. In the absence of an investment selection by an Eligible Employee, the Eligible
Employee’s book entry account will be credited or debited with amounts based on the
appropriate target date — retirement fund offered under the FRP as identified by the
Company for the Eligible Employee. The Designated Third Party Administrator will maintain
a record of each book entry account, process investment selections, and otherwise be the
record keeper of the book entry accounts. Investment options selected under this Section
3.03 shall be used solely for purposes of determining an Eligible Employee’s FRP
Equalization Benefit. An Eligible Employee’s FRP Equalization Benefit will be based on
the value of the Eligible Employee’s book entry account as if the amounts in the book
entry account had been invested in actual investments selected by the Eligible Employee;
however, no such investments shall be made on behalf of the Eligible Employee. Eligible
Employees shall not have voting rights or any other ownership rights with respect to any
investment options selected as the measuring mechanism for book entry accounts established
under this Section 3.03.
	 
	 	(iv)	 	Eligible Employees may not withdraw or borrow against amounts credited to any book
account under this Subsection 3.03(a). Book entry accounts will not accept rollovers from
other plans.

	 	(b)	 	Payment of FRP Equalization Benefit.
	 
	 	 	 	The FRP Equalization Benefit:

	 	(i)	 	Shall be paid in a lump sum cash payment by the Company to the Eligible Employee or,
if the Eligible Employee is deceased, to the Eligible Employee’s beneficiary under the
FRP, and shall be made as soon as practicable after the earlier of the Eligible Employee’s
Separation From Service or death, but in no event shall such payment be made after the
later of (i) the December 31st following the Eligible Employee’s Separation
From Service or death, or (ii) the 15th day of the third month following the
Eligible Employee’s Separation From Service or death. In the event of an Eligible
Employee’s death, the balance of the Eligible Employee’s FRP Equalization Benefit book
entry account, if any, shall be payable to
the same beneficiary as the Eligible Employee designated under the FRP, unless the
Eligible Employee makes a separate designation under this Plan pursuant to the rules
established by the Committee.

 

 

	 	(ii)	 	Notwithstanding any other provision of the Plan to the contrary, if a Specified
Employee incurs a Separation From Service, other than as a result of death, payment of any
amount credited to the Specified Employee’s FRP Equalization Benefit book entry account,
accrued or vested after December 31, 2004, shall not be made earlier than the first day of
the seventh month following Separation From Service. A Specified Employee who is subject
to a six-month distribution delay pursuant to this Subsection 3.02(c)(ii) will be
permitted to continue to manage the investment elections applicable to such Specified
Employee’s book entry account during the six-month distribution delay.
	 
	 	(iii)	 	The FRP Equalization Benefit under this Subsection 3.03(b) shall be equal to the
amount credited to the Eligible Employee’s book entry account at the time of distribution,
as determined under Subsection 3.03(a).

Section 4. Equalization Benefits Not Funded.

The Company’s obligations under this Plan shall not be funded and Equalization Benefits under this
Plan shall be payable only out of the general funds of the Company.

Section 5. No Contract of Employment.

The Plan is an expression of the Company’s present policy with respect to Eligible Employees; it is
not a part of any contract of employment. No Eligible Employee, Eligible Surviving Spouse, or any
other person shall have any legal or other right to any benefit under this Plan.

Section 6. Amendment, Termination, Etc.

The Board of Directors of the Company shall have the right at any time to amend, modify,
discontinue or terminate this Plan in whole or in part; provided, however, that no such action
shall deprive any person of an Equalization Benefit under this Plan if payment of such Equalization
Benefit shall have commenced prior to the date of such action by the Board of Directors; provided,
further, however, that no distribution of benefits shall occur upon termination of this Plan unless
applicable requirements of Code Section 409A have been met. Notwithstanding anything contained in
this Section to the contrary, Equalization Benefits payable under this Plan remain subject to the
claims of the Company’s general creditors at all times.

Section 7. Administration and Interpretation of the Plan.

Full authority to administer and interpret this Plan shall be vested in the Committee. The
Committee is authorized from time to time to establish such rules and regulations as it may deem
appropriate for the proper administration of the Plan, and to make such determinations under, and
such interpretations of, and to take such steps in connection with, the Plan as it may deem
necessary or advisable. Each determination, interpretation, or other action by the Committee shall
be in its sole discretion and shall be final, binding and conclusive for all purposes and upon all
persons. The Committee may act, in its sole discretion, to delegate administrative and
interpretative authority under this Section to the Plan Administrator.

In the event that an Article, Section or paragraph of the Code, Treasury Regulations, GRP, FRP or
SSIP concerning the Limitations is renumbered, such renumbered Article, Section or paragraph shall
apply to applicable references herein,.

Section 8. Local Payment Authorities

The Vice President and Treasurer and the Assistant Treasurer (or, in the event of a change in
title, their functional equivalent) may act individually to delegate authority to administrative
personnel to make benefit payments to employees in accordance with plan provisions.

 

 

Section 9. Deductions

The Company may deduct from any Benefit Equalization payment to an Eligible Employee, or such
Eligible Employee’s Eligible Surviving Spouse, any and all amounts owing to it by such Eligible
Employee for any reason, and all taxes required by law or government regulation to be deducted or
withheld.

Section 10. Visteon Corporation.

The following shall be applicable to employees of Ford who were transferred to Visteon Corporation
on April 1, 2000 (“U.S. Visteon Employees”) and who ceased active participation in the Plan as of
June 30, 2000 after Visteon Corporation was spun-off from Ford, June 28, 2000.

	 	(a)	 	Group I and Group II Employees
	 
	 	 	 	For purposes of this paragraph, a “Group I Employee” shall mean a U.S. Visteon
Employee who as of July 1, 2000 was eligible for immediate normal or regular early
retirement under the provisions of the GRP as in effect on July 1, 2000. A “Group II
Employee” shall mean a U.S. Visteon Employee who (i) was not a Group I Employee; (ii)
had as of July 1, 2000 a combination of age and continuous service that equals or
exceeds sixty (60) points (partial months disregarded); and (iii) could become
eligible for normal or regular early retirement under the provisions of the GRP as in
effect on July 1, 2000 within the period after July 1, 2000 equal to the employee’s
Ford service as of July 1, 2000. A Group I or Group II Employee shall retain
eligibility to receive a GRP Equalization Benefit and/or a SSIP Equalization Benefit
and shall receive such benefits as are applicable under the terms of the Plan in
effect on the retirement date, based on meeting eligibility criteria as of July 1,
2000 with respect to GRP or SSIP participation prior to July 1, 2000 and upon
incurring a Separation From Service from Visteon, or from the Company for Group I or
II Employees who return to Company employment pursuant to the Visteon Salaried
Employee Transition Agreement dated as of October 1, 2005 and any subsequent
amendments thereto.
	 
	 	(b)	 	Group III Employees.
	 
	 	 	 	For purposes of this paragraph, a “Group III Employee” shall mean a U.S. Visteon
Employee who participated in the GRP prior to July 1, 2000 other than a Group I or
Group II Employees. The Plan shall have no liability for a GRP Equalization Benefit
and/or a SSIP Equalization Benefit payable to Group III Employees who were otherwise
eligible hereunder with respect to GRP or SSIP participation prior to
July 1, 2000 on or after July 1, 2000.

Section 11. Code Section 409A.

	(a)	 	With respect to Equalization Benefits, the Company reserves the right to take such action, on
a uniform basis, as the Company deems necessary or desirable to ensure compliance with Code
Section 409A, and applicable additional regulatory guidance thereunder, or to achieve the
goals of the Plan without having adverse tax consequences under this Plan for any employee or
beneficiary.

	(b)	 	In no event shall any transfer of liabilities to or from this Plan result in an impermissible
acceleration or deferral of Equalization Benefits under Code Section 409A. In the event such a
transfer would cause an impermissible acceleration or deferral under Code Section 409A, such
transfer shall not occur.

	(c)	 	In no event will application of any eligibility requirements under this Plan cause an
impermissible acceleration or deferral of any Plan benefits under Code Section 409A.

	(d)	 	In the event an Eligible Employee is reemployed following a Separation From Service,
distribution of any Equalization Benefit shall not cease upon such Eligible Employee’s
reemployment.

 

 

	(e)	 	After receipt of any Equalization Benefits, the obligations of the Company with respect to
such Equalization Benefits shall be satisfied and no Eligible Employee, Eligible Surviving
Spouse, or other beneficiary shall have any further claims against the Plan or the Company
with respect to Equalization Benefits.

Section 12. Claim for Benefits

	(a)	 	Denial of a Claim
	 
	 	 	A claim for benefits under the Plan shall be submitted in writing to the Plan Administrator.
If a claim for benefits or participation is denied in whole or in part by the Plan
Administrator, the employee will receive written notification within a reasonable period
from the date the claim for benefits or participation is received. Such notice shall be
deemed given upon mailing, full postage prepaid in the United States mail or on the date
sent electronically to the employee. If the Plan Administrator determines that an extensive
period of time for processing is required, written notice shall be furnished to the employee
as soon as practical.
	 
	(b)	 	Review of Denial of the Claim to the Committee
	 
	 	 	In the event that the Plan Administrator denies a claim for benefits or participation, the
employee may request a review by filing a written appeal to the Committee within sixty (60)
days of receipt of the written notification of denial. The appeal will be considered at the
Committee’s next scheduled meeting. Under special circumstances, an extension of time for
processing may be required in which case a decision shall be rendered as soon as practical.
In the event such an extension is needed, written notice shall be provided to the employee.
	 
	(c)	 	Decision of the Committee
	 
	 	 	The decision on review of the appeal shall be in writing. Such notice shall be deemed given
upon mailing, full postage prepaid in the United States mail or on the date sent
electronically to the employee. Decisions of the Committee are final and conclusive and are
only subject to the arbitrary and capricious standard of judicial review.
	 
	(d)	 	Limitations Period
	 
	 	 	No legal action for benefits under the Plan may be brought against the Plan until after the
claims and appeal procedures have been exhausted. Legal actions under the Plan for benefits
must be brought no later than two (2) years after the claim arises. No other action may be
brought against the Plan more than six (6) months after the claim arises.

Section 13. Special BEP Equalization Benefit.

Effective as of November 1, 2001, certain named Company officers specified on Appendix A shall
receive an additional monthly benefit under the Plan in an amount equal to the monthly benefit the
officer would have received under the GRP had the officer participated in the GRP on a contributory
basis throughout all years of service with the Company for which such officers did not receive a
base salary. Upon the death of any such Company officer, such officer’s Eligible Surviving Spouse
will receive the monthly benefit provided by this Section until such Eligible Surviving Spouse’s
death. Any monthly benefit paid pursuant to this Section shall be paid in accordance with the
payment timing provisions provided in Subsections 3.01(b)(ii), (b)(iii) and (c).

Section 14. FERCO Equalization Benefits.

Effective as of December 31, 1999, former salaried employees of the Company, excluding any former
salaried employees of the Company who transferred to Visteon Corporation as part of its spin-off
from the Company in June 2000, who participated in the FERCO SRP and whose benefits under the
FERCO SRP were limited as a result of the application of the Limitations shall be eligible to
receive FERCO Equalization Benefits pursuant to the terms of Appendix B.

 

 

Appendix A

Special BEP Equalization Benefit

Company Officers

William Clay Ford, Jr.

Carl E. Reichardt

 

 

Appendix B

FERCO Equalization Benefits

Except as otherwise provided in this Appendix, all terms and provisions of the Ford Motor Company
Benefit Equalization Plan shall apply to any FERCO Equalization Benefit provided pursuant to this
Appendix.

Section 1. Definitions. The terms used in this Appendix shall have the same meaning as those in
the Plan, except as follows:

          1.01 “Eligible Employee” shall mean a former salaried employee of FERCO, excluding any former
salaried employee of FERCO who transferred to Visteon Corporation as part of its spin-off from the
Company in June 2000, whose benefits under the FERCO SRP were limited as a result of the
application of the Limitations.

          1.02 “FERCO” shall mean the Ford Electronics and Refrigeration Corporation.

          1.03 “FERCO Equalization Benefit” shall mean any of the benefits described in this Appendix.

          1.04 “PBGC” shall mean the Pension Benefit Guaranty Corporation.

Section 2. FERCO Equalization Benefits. A FERCO Equalization Benefit shall be provided as follows
to any Eligible Employee whose FERCO SRP benefit was subject to the Limitations:

          2.01 Amount of Benefit. The amount of any FERCO Equalization Benefit payable pursuant to
this Subsection shall be equal in amount to the difference between the FERCO SRP benefit the
Eligible Employee would have received if the Eligible Employee commenced FERCO SRP benefits upon
Separation From Service and the corresponding benefit that would have been payable under the FERCO
SRP without regard to the Limitations. For purposes of determining such amount, the Eligible
Employee shall be treated as if he or she elected to receive his or her FERCO SRP benefit in the
form of the qualified joint and survivor annuity benefit under the FERCO SRP if married, or the
single life annuity form of benefit under the FERCO SRP if unmarried (including Eligible Employees
who are widowed or divorced). The amount of any Equalization Benefit payable to an Eligible
Employee whose benefit under the ESAP is not offset or reduced by the amount of any FERCO SRP
benefit payable to such Eligible Employee prior to age 65 shall be increased upon the Eligible
Employee’s attainment of age 65 to reflect an unreduced normal retirement benefit under the FERCO
SRP. In determining the amount of the Equalization Benefit, the Eligible Employee’s salary shall
be the Eligible Employee’s salary as defined in the FERCO SRP.

          2.02 Payment of FERCO Benefit. FERCO Equalization Benefits shall be payable in accordance
with Subsections 3.01(b)(ii) and (iii), 3.01(c), and 3.01(d).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]