Document:

exhibit1017.htm

    EXHIBIT
10.17

      

      

      

      

      

      

      WEST
PHARMACEUTICAL SERVICES, INC.

      SUPPLEMENTAL
EMPLOYEES’ RETIREMENT PLAN

      

      

      (Amended
and Restated Effective January 1, 2008, except as otherwise noted herein or
required by applicable law)

       

      

       

       

      

      

      

      

      

      

      

      

      
        

      

      
        PLAN
DOCUMENT

      

      
        

      

      

      
        
          
            K:\EDGAR\2009\10K\Exhibit
10.17 - SERP Restatement.doc

          

           

        

        
           

          
            

          

        

        
           

        

      

      WEST
PHARMACEUTICAL SERVICES, INC.

      SUPPLEMENTAL EMPLOYEES’
RETIREMENT PLAN

      

      This is
the West Pharmaceutical Services, Inc. Supplemental Employees’ Retirement Plan
(the “SERP”) adopted by
West Pharmaceutical Services, Inc. (the “Company”) on behalf of itself
and its subsidiaries to provide benefits in excess of those provided under the
West Pharmaceutical Services, Inc.  Employees’ Retirement Plan (the
“Qualified Retirement
Plan”) to certain eligible salaried employees of the Company and its
subsidiaries.    Hourly employees are not eligible to
participate in the SERP.

      

      

      1.           Effective
Date; Code Section 409A.  The SERP was originally effective as
of January 1, 1987 as the West Company, Incorporated Supplemental Employees
Retirement Plan, it is hereby amended, restated and renamed effective as of
January 1, 2008, except as otherwise required by applicable law, including
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).    The
SERP is intended to satisfy Code Section 409A and all of the official guidance
promulgated thereunder.  To the extent a provision in the SERP is
inconsistent with Code Section 409A, such provisions shall be deemed amended to
comply with Code Section 409A, to avoid the application of the penalty tax and
interest provided thereunder.

      

      2.           Eligibility.

      

      (a)           Effectiveness.  No
benefit under the SERP shall be payable to any salaried employee of the Company
or a subsidiary (an “Employee”)  unless
that Employee is credited with service under the SERP after December 31,
1986.

      

      (b)           Pre-2009
Eligibility.  On or before December 31, 2008, an Employee who
is a participant in the Qualified Retirement Plan shall only become a
participant (a “Participant”) in the SERP if
his or her accrued benefit under the Qualified Retirement Plan (“Accrued Benefit”) is less that
it would be if the Qualified Retirement Plan were not subject to: (i) the limit
imposed by section 401 (a) (17) of the Code or any successor provision of law on
the amount of annual compensation of each Qualified Retirement Plan participant
that may be taken into account, (ii) the limit imposed by section 415 of the
Code or any successor provision of law on the amount of annual benefits that may
be accrued.  The limits described in (a) and (b) shall be referred to
hereinafter, collectively, as the “Code Limits”), or (iii) made a
deferral under the Company’s Nonqualified Deferred Compensation Plan for
Designated Employees (or any successor nonqualified defined contribution plan)
(the “Nonqualified Deferred
Compensation Plan”).

      

      (c)           Eligibility in 2009 and
Beyond.  On and after January 1, 2009, an Employee shall only
be eligible to participate in the SERP if:

      

      (i)           Such
Employee was eligible in accordance with Section 2(b) of the SERP as of December
31, 2008, or

      

      (ii)           Such
Employee is salaried and either (A) an executive officer of the Company, or (B)
designated by the Company’s Vice President of Human Resources as participating
in the SERP and approved by the Compensation Committee (the “Committee”) of the Company’s
Board of Directors (the “Board”).

      
        
          
          

        

        
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      (d)           Notwithstanding
the foregoing, the Company’s Vice President of Human Resources may upon written
designation, with approval by the Committee, remove an Employee from prospective
participation in the SERP at any time.

      

      3.           SERP
Retirement Benefits; Vesting. 

      

      (a)           Restatement of the Qualified
Plan.  Effective January 1, 2007, the Qualified Retirement Plan
was amended to provide for a “Cash Balance Benefit”, as
defined in the Qualified Retirement Plan, for service on or after January 1,
2007.  The benefit accrued on and before December 31, 2006 is a
participant’s “Frozen
Benefit” as defined in the Qualified Retirement
Plan.   Each of those terms is used in the SERP, and is defined
as provided in the Qualified Retirement Plan.  The benefits provided
under the SERP were simultaneously modified to provide for an additional benefit
under the SERP on the same terms as those provided under the provisions of the
amended Qualified Retirement Plan.  Except as provided in the SERP or
as required by Code Section 409A, the Cash Balance Benefit and Frozen Benefit
shall be payable in accordance with the timing and method of distribution
provisions provided in the Qualified Retirement Plan.

      

      (b)           Frozen
Benefit.  The monthly normal retirement benefit calculated
under the SERP at a Participant’s attainment of age 65 shall be equal to the
benefit that would have been paid under the Qualified Retirement Plan if the
amount of the monthly benefit under the Qualified Retirement Plan as in effect
when the Participant attained age 65 (assuming payment in the form of a single
life annuity with no period certain) was calculated (i) by taking into account
compensation a Participant elected to defer (such amount not to include any
matching contributions paid by or due from the Company) under the Nonqualified
Deferred Compensation Plan, for purposes of determining his Average Annual
Earnings, and (ii) without taking the Code Limits into account, reduced by the
offset provided in Section 4.

      

      (c)           Cash Balance
Benefit.  The monthly normal retirement benefit calculated
under the SERP at a Participant’s attainment of age 65 shall be equal to the
benefit that would have been paid under the Qualified Retirement Plan if the
amount of the monthly benefit under the Qualified Retirement Plan as in effect
when the Participant attained age 65 (assuming payment in the form of a single
life annuity with no period certain) was calculated by crediting the
Participant’s Cash Balance Account under the Qualified Retirement Plan with a
“Pay Credit” (as defined
in the Qualified Retirement Plan) inclusive of (i) the amount such Participant
elected to defer (such amount not to include any matching contributions paid by
or due from the Company) under the Nonqualified Deferred Compensation
Plan  and (ii) amounts in excess of the Code Limits into account,
reduced by the offset provided in Section 4.

      

      (d)           Total
Benefit.  Subject to the offset in Section 4, a Participant’s
benefit under the SERP shall be sum of his Frozen Benefit calculated under
Section 3(b) and his Cash Balance Benefit calculated under Section
3(c).

      

      4.           Offset
for Qualified Retirement Plan Benefits.  The monthly benefit
payable under the SERP shall be the amount calculated under Section 3 reduced by
an offset for benefits payable under the Qualified Retirement Plan or any other
defined benefit pension plan maintained by the Company or any other employer
treated with the Company as a single employer under sections 414 (b), 414(c) or
414(m) of the Code (an “Affiliated
Plan”).  In calculating the offsets, the Code Limits shall be
applied, and both in applying such Code Limits and in otherwise calculating the
offsets, it shall be assumed that all benefits under a the Qualified Retirement
Plan or any other relevant plan will be paid in the form of a single life
annuity with no period certain.

      
        
          
          

        

        
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      5.           Service
and Vesting.

      

      (a)           Service
Credit.  An Employee’s credit for periods of service under the
SERP for all purposes (inclusive of vesting, eligibility and benefit accrual)
shall be co-extensive with his credit for the same types of periods of service
under the Qualified Retirement Plan and any Affiliated Plan unless the Committee
determines that additional credit for periods of service with a prior employer
or for any other reason should be granted under the SERP.

      

      (b)           Vesting.  A
Participant’s Frozen Benefit and Cash Balance benefit shall become vested, if at
all, in accordance with the applicable vesting schedules in the Qualified
Retirement Plan.

      

      6.           Grandfathering
of Benefits.

      

      (a)           Grandfathered Benefit
Definition and Accounting.  Benefits accrued and vested under
the SERP on and before December 31, 2004 (“Grandfathered Benefits”) shall
be separately accounted for under the SERP, and, to the extent required to
preserve grandfathered status under Code Section 409A administered consistent
with the SERP as in effect on December 31, 2004.  A Participant’s
Grandfathered Benefits shall be comprised solely of his or her Frozen Benefit
accrued through December 31, 2004.

      

      (b)           Non-Grandfathered Benefit
Definition and Accounting.  Benefits accrued and vested under
the SERP on and after January 1, 2005 (“Non-Grandfathered Benefits”)
shall also be separately accounted for under the SERP, and, to the extent
required to comply with Code Section 409A and avoid the application of the
penalty tax and interest thereunder administered consistent with Code Section
409A.  A Participant’s Non-Grandfathered Benefit shall be comprised of
any Frozen Benefit accrual that is earned and vested between January 1, 2005 and
December 31, 2007 and his or her entire Cash Balance Benefit.

      

      7.           Grandfathered
Benefits Retirement Provisions.  This Section 7 applies solely
to Grandfathered Benefits as described in Section 6(a).  Section 8
shall apply to Non-Grandfathered Benefits.

      

      (a)           Early
Retirement.

      

      (i)           With
respect to a Participant’s Grandfathered Benefit only, a Participant may elect
early retirement after attaining age 55, and before attaining age 65, provided
he has been credited with at least ten years of service as required in the
Qualified Retirement Plan.

      

      (ii)           The
early retirement benefit under the SERP shall be calculated in the same manner
as the normal retirement benefit under Sections 3 and 4 above, taking into
account only service and compensation to the Employee’s early retirement date,
and the benefit formula in effect on such date.

      

      (iii)           Any
portion of a participant’s Grandfathered Benefits payable upon retirement prior
to attaining age 65 shall be reduced in accordance with the table of early
retirement factors contained in the Qualified Retirement Plan as in effect at
the time of the Participant’s retirement.

      
        
          
          

        

        
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      (b)           Late
Retirement.  The Grandfathered Benefit payable to a Participant
retiring after age 65 shall be calculated in the same manner as the normal
retirement benefit under Sections 3 and 4 above, taking into account service and
compensation to the Participant’s late retirement date, and the benefit formula
in effect under the Qualified Retirement Plan on such date.

      

      (c)           Vested-Terminated
Benefit.

      

      (i)           Subject
to Section 12 regarding disability benefits, the Grandfathered Benefit payable
to a Participant who is vested in his Accrued Benefit under the Qualified
Retirement Plan and who terminates employment with the Company and its
subsidiaries other than for early, normal or late retirement (a “Vested-Terminated
Participant”) shall be calculated in the same manner as the normal
retirement benefit, taking into account service and compensation to the
Participant’s date of severance from service, and the benefit formula in effect
on such date.

      

      (ii)           Any
Grandfathered Benefit payable to a Vested-Terminated Participant before such
Participant’s attainment of age 65 shall be reduced 5% for each year by which
the benefit commencement date precedes his or her attainment of age
65.

      

      8.           Non-Grandfathered
Benefit Retirement Provisions.  This Section 8 applies only to
Non-Grandfathered Benefits as described in Section 6(b).  Section 7
shall apply to Grandfathered Benefits.

      

      (a)           Early Retirement;
Termination Benefit.

      

      (i)           With
respect to a Participant’s Non-Grandfathered Frozen Benefit only, a Participant
who terminates employment will be required to receive a distribution six months
following termination under Section 14 of the SERP.  Such
Participant’s Non-Grandfathered Frozen Benefit shall be calculated, in the same
manner as the normal retirement benefit under Section 3 and 4 above, taking into
account only service and compensation to the Employee’s termination date, and
the benefit formula in effect on such date.

      

      (ii)           Subject
to Section 7(a)(iii), any portion of a participant’s Non-Grandfathered Frozen
Benefit payable upon retirement prior to attaining age 65 shall be reduced in
accordance with the table of early retirement factors contained in the Qualified
Retirement Plan as in effect at the time of the Participant’s retirement but
only if such Participant has reached age 55 and accrued ten years of
service.

      

      (iii)           If
such Participant has not reached age 55 and accrued ten years of service at the
time of his or her termination of employment, Section 7(c) and not this Section
7(a) shall apply.

      

      (iv)           A
Participant’s Non-Grandfathered Cash Balance Benefit shall be calculated as
described in Sections 3 and 4 above, and, shall, consistent with the Qualified
Retirement Plan, not be reduced for commencement prior to normal retirement age
under the Qualified Retirement Plan.

      

      (b)           Late
Retirement.

      

      (i)           The
Non-Grandfathered Benefit (Frozen Benefit and Cash Balance Benefit, as
applicable), payable to a Participant retiring after age 65 shall be calculated
in the same manner as the normal retirement benefit under Sections 3 and 4
above, taking into account service and compensation to the Participant’s late
retirement date, and the benefit formula in effect under the Qualified
Retirement Plan on such date.

      
        
          
          

        

        
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      (ii)           A
Participant’s Non-Grandfathered Cash Balance Benefit shall be calculated as
described in Sections 3 and 4 above.  Because a participant must
receive a distribution under the SERP six month following
termination  in accordance with Section 14, such Participant’s
Non-Grandfathered Cash Balance Benefit will only be adjusted in a manner
consistent with the Qualified Retirement Plan for the period between such
Participant’s termination date and the date distribution of such Benefit is made
under the SERP.

      

      (c)           Vested-Terminated
Benefit.

      

      (i)           Subject
to Section 12 regarding disability benefits, the Non-Grandfathered Frozen
Benefit only payable to a Participant who is a Vested-Terminated Participant
shall be calculated in the same manner as the normal retirement benefit under
Sections 3 and 4, taking into account service and compensation to the
Participant’s date of severance from service, and the benefit formula in effect
on such date.

      

      (ii)           Any
Non-Grandfathered Frozen Benefit payable to a Vested-Terminated Participant
before such Participant’s attainment of age 65 shall be reduced 5% for each year
by which the benefit commencement date precedes his or her attainment of age
65.

      

      (iii)           A
Participant’s Non-Grandfathered Cash Balance Benefit shall be calculated as
described in Sections 3 and 4 above.  Because a Participant must
receive a distribution under the SERP six month following
termination  in accordance with Section 14, such Participant’s
Non-Grandfathered Cash Balance Benefit will only be adjusted in a manner
consistent with the Qualified Retirement Plan for the period between such
Participant’s termination date and the date distribution of such Benefit is made
under the SERP.

      

      12.           Disability
Benefit.  Consistent with
the Qualified Retirement Plan, no Benefit is payable under the SERP solely due
to a Participant incurring a “Total and Permanent
Disability”  (as defined in the Qualified Retirement
Plan).  A Participant’s Frozen Benefit and Cash Balance Benefit are
increased during his or her period of Total and Permanent Disability as
described in the Qualified Retirement Plan and in the same manner as the normal
retirement benefit, taking into account service and compensation to the
Participant’s date of termination of employment, and the benefit formula in
effect on such termination.

      

      13.           Form and
Timing of Grandfathered Benefits Payable under the SERP. This Section 13 solely
governs Grandfathered Benefits.  Non-Grandfathered Benefits are
subject to Section 14.

      

      (a)           Normal
Form.  Subject to the permitted lump sum election under Section
13(b) below, the Grandfathered Benefit payable to a Participant shall be paid in
the same form and at the same time or times that benefits are paid to the
Participant under the Qualified Retirement Plan.  The actuarial
factors and assumptions to be used to convert the benefits payable hereunder
from a single life annuity with no period certain to any other form of benefit
shall be those set forth in the Qualified Retirement Plan.

      

      (b)           Special Lump Sum
Election.  A Participant may elect, by written notice delivered
to the Committee no later than September 30 of the calendar year preceding the
calendar year in which the Participant’s Grandfathered Benefit under the
Qualified Retirement Plan is to begin, to receive his or her Grandfathered
Benefit payable under the SERP in a single cash lump sum, payable at the same
time that benefits begin to be paid to that Participant under the Qualified
Retirement Plan.  The actuarial factors and assumptions to be used to
convert the Grandfathered Benefits payable hereunder from a single life annuity
with no period certain shall be those set forth in the Qualified Retirement
Plan, except that the value of lump sum distributions made on or after July 1,
1995 shall be determined using the annual rate of interest on 30- year Treasury
securities for the August preceding the year of distribution and the mortality
table prescribed by the Internal Revenue Service pursuant to Section
417(e)(3)(A)(ii)(I) of the Code.

      
        
          
          

        

        
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      14.           Form and
Timing of Non-Grandfathered Benefits Payable under the SERP.   This
Section 14 solely governs Non-Grandfathered Benefits.  Grandfathered
Benefits are subject to Section 13.

      

      (a)           Timing and Form of
Payment.  The Non-Grandfathered Benefit (including both the
applicable portion of a Participant’s Frozen Benefit and his or her entire Cash
Balance Benefit) shall be payable to a Participant under the SERP solely in a
cash lump sum during the month following the month that contains that date that
is six months following a Participant’s termination of
employment.  This cash lump sum shall be paid even if a Participant is
re-hired following his termination of employment, but only to the extent
permitted by Section 409A of the Code.

      

      (b)           Cash Balance Benefit Lump
Sum.  A Participant’s Cash Balance Benefit shall be credited
with Interest Credits (as defined in the Qualified Retirement Plan) during this
six month period.  The Cash Balance Benefit shall be calculated in a
manner consistent with the provisions applicable to the “Termination Benefit” payable
under the Qualified Retirement Plan.

      

      (c)           Lump Sum for Applicable Portion of a
Participant’s Frozen Benefit.  With respect to the applicable
portion of a Participant’s Frozen Benefit, the actuarial factors and assumptions
to be used to convert the Non-Grandfathered Benefits payable hereunder from a
single life annuity with no period certain shall be those set forth in the
Qualified Retirement Plan, except that the value of lump sum distributions made
on or after July 1, 1995 shall be determined using the annual rate of interest
on 30- year Treasury securities for the August preceding the year of
distribution and the mortality table prescribed by the Internal Revenue Service
pursuant to Section 417(e)(3)(A)(ii)(I) of the Code.

      

      15.           Death
Benefit Before Commencement of Retirement Income Benefit.

      

      (a)           Amount of Frozen
Benefit.  Following the death of a Participant before benefits
under the SERP have commenced, the Participant’s surviving spouse or, if the
Participant dies before benefits under the SERP have commenced leaving a “dependent spouse” or “orphan children” (as such
terms are defined in the Qualified Retirement Plan), such spouse or orphan
children shall be entitled to a death benefit with respect to a Participant’s
Frozen Benefit (inclusive of both Grandfathered Benefit and Non-Grandfathered
Benefit portions) equal to the excess, if any, of (i) the Frozen Benefit death
benefit that would be payable under the Qualified Retirement Plan and any
Affiliated Plan if such Plans were not subject to the Code Limits and was
calculated using amounts deferred under the Company’s over (b) the Frozen
Benefit death benefit that is actually payable under the Qualified Retirement
Plan and any Affiliated Plan.

      
        
          
          

        

        
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      (b)           Amount Cash Balance
Benefit.  Following the death of a Participant before benefits
under the SERP have commenced, the Participant’s beneficiary shall be entitled
to a death benefit with respect to a Participant’s Cash Balance Benefit equal to
the excess, if any, of (i) the Cash Balance Benefit death benefit that would be
payable under the Qualified Retirement Plan and any Affiliated Plan if such
Plans were not subject to the Code Limits and was calculated using amounts
deferred under the Company’s over (b) the Cash Balance Benefit death benefit
that is actually payable under the Qualified Retirement Plan and any Affiliated
Plan.

      

      (c)           Timing of Payment of
Grandfathered Benefit.  The Grandfathered Benefit death benefit
payments shall be made in the same form, at the same time, and for the same
duration as the death benefits payable under the Qualified Retirement
Plan.

      

      (d)           Timing of Payment of
Non-Grandfathered Benefit.  The Non-Grandfathered death benefit
(inclusive of the applicable portion of the Participant’s Frozen Benefit)
payment shall be made in a cash lump sum during the month following the month a
Participant’s death.

      

      (e)           Exclusive Pre-Retirement
Death Benefits.  No other death benefits shall be payable under
the SERP following the death of a Participant before benefits under the SERP
have commenced.

      

      16.           Death
Benefit After Commencement of Retirement Income Benefit. Upon a
Participant’s death after benefits under the SERP have commenced, the
Participant’s beneficiary (as determined in accordance with the Qualified
Retirement Plan) shall be entitled to the death benefit, if any, payable
following the Participant’s death under the form of benefit in which the benefit
was being paid to the participant before his death.  This Section 16
shall not apply to a Participant’s Non-Grandfathered benefits, which are solely
payable in a single, cash lump sum.

      

      17.           Unsecured
Obligation of the Company.  The
Company’s obligations under the SERP shall be the general unsecured obligations
of the Company.  The Company shall be under no obligation to establish
any separate fund, purchase any annuity contract, or in any other way make
special provision or specifically earmark any funds for the payment of any
amounts called for under the SERP, nor shall the SERP or any actions taken under
or pursuant to the SERP be construed to create a trust of any kind, or a
fiduciary relationship between the Company and any Participant, his or her
designated beneficiary, executors or administrators, or any other person or
entity.  If the Company chooses to establish such a fund or purchase
such an annuity contract or make any other arrangement to provide for the
payment of any amounts called for under the SERP, such fund contract or
arrangement shall remain part of the general assets of the Company, and no
person claiming benefits under the SERP shall have any right, title, or interest
in or to any such fund, contract or arrangement.

       

      18.           Administration.  The
SERP will be administered by the Committee.

       

      (a) The Committee shall be the named
fiduciary for purposes of the claims procedure pursuant to Section 19 and shall
have authority to act to the full extent of its absolute discretion
to:

       

      (ii) interpret the SERP;

       

      (iii) resolve and determine all disputes or
questions arising under the SERP subject to the provisions of Section 19,
including the power to determine the rights of Participants and their
beneficiaries, and their respective benefits, and to remedy any ambiguities,
inconsistencies or omissions in the SERP;

       

      
        
          
          

        

        
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      (iv) create and revise rules and procedures
for the administration of the SERP and prescribe such forms as may be required
for Participants to make elections under, and otherwise participate in, the
SERP; and

       

      (v) take any other actions and make any
other determinations as it may deem necessary and proper for the administration
of the SERP.

       

      (b) Any expenses incurred in the
administration of the SERP will be paid by the Company or the
Employer.

       

      (c) Except as the Committee may otherwise
determine (and subject to the claims procedure set forth in Section 19), all
decisions and determinations by the Committee shall be final and binding upon
all Participants and their designated beneficiaries.

       

      (d) Neither the Secretary nor any member of
the Committee shall participate in any matter involving any questions relating
solely to his or her own participation or benefits under the
SERP.  The Committee shall be entitled to rely conclusively upon, and
shall be fully protected in any action or omission taken by it in good faith
reliance upon the advice or opinion of any persons, firms or agents retained by
it, including but not limited to accountants, actuaries, counsel and other
specialists. Nothing in the SERP shall preclude the Company from indemnifying
the Secretary or members of the Committee for all actions under the SERP, or
from purchasing liability insurance to protect such persons with respect to the
SERP.

       

      19.           Claims
Procedure.  The Company  shall administer a claims
procedure as follows:

       

      (a)          Initial
Claim.  A Participant or his or her beneficiary who believes
that he or she is entitled to benefits under the SERP (the “Claimant”), or the Claimant’s
authorized representative acting on behalf of such Claimant, must make a claim
for those benefits by submitting a written notification of his or her claim of
right to such benefits.  Such notification must be on the form and in
accordance with the procedures established by the Company.  No benefit
shall be paid under the SERP until a proper claim for benefits has been
submitted.

       

      (b)           Procedure for
Review.  The Committee shall establish administrative processes
and safeguards to ensure that all claims for benefits are reviewed in accordance
with the SERP document and that, where appropriate, Plan provisions have been
applied consistently to similarly situated Claimants.  Any
notification to a Claimant required hereunder may be provided in writing or by
electronic media, provided that any electronic notification shall comply with
the applicable standards imposed under 29 C.F.R. §2520.104b-1(c).

       

      (c)           Claim Denial
Procedure.  If a claim is wholly or partially denied, the
Committee shall notify the Claimant within a reasonable period of time, but not
later than 90 days after receipt of the claim, unless the Committee determines
that special circumstances require an extension of time for processing the
claim.  If the Committee determines that an extension of time for
processing is required, written notice of the extension shall be furnished to
the Claimant prior to the termination of the initial 90-day
period.  In no event shall such extension exceed a period of 180 days
from receipt of the claim.  The extension notice shall indicate: (i)
the special circumstances necessitating the extension and (ii) the date by which
the Committee expects to render a benefit determination.  A benefit
denial notice shall be written in a manner calculated to be understood by the
Claimant and shall set forth:  (i) the specific reason or reasons
for the denial, (ii) the specific reference to the SERP provisions on which
the denial is based, (iii) a description of any additional material or
information necessary for the Claimant to perfect the claim, with reasons
therefor, and (iv) the procedure for reviewing the denial of the claim and the time limits
applicable to such procedures, including a statement of the Claimant’s right to
bring a legal action under section 502(a) of Employee Retirement Income Security
Act of 1974, as amended (“ERISA”) following an adverse
benefit determination on review.  

       

      
        
          
          

        

        
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      (d)           Appeal
Procedure.  In the case of an adverse benefit determination,
the Claimant or his
or her representative shall have the opportunity to appeal to the Committee for
review thereof by requesting such review in writing to the Board within 60 days
of receipt of notification of the denial.  Failure to submit a proper
application for appeal within such 60 day period will cause such claim to be
permanently denied.  The Claimant or his or her
representative shall be provided, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant
to the claim.  A document, record or other information shall be deemed
“relevant” to a claim in accordance with 29 C.F.R.
§2560.503-1(m)(8).  The Claimant or his or her representative shall
also be provided the opportunity to submit written comments, documents, records
and other information relating to the claim for benefits.  The Board
shall review the appeal taking into account all comments, documents, records and
other information submitted by the Claimant or his or her representative
relating to the claim, without regard to whether such information was submitted
or considered in the initial benefit determination.

       

      (e)           Decision on
Appeal.  The Board shall notify a Claimant of its decision on
appeal within a reasonable period of time, but not later than 60 days after
receipt of the Claimant’s request for review, unless the Committee determines
that special circumstances require an extension of time for processing the
appeal.  If the Committee determines that an extension of time for
processing is required, written notice of the extension shall be furnished to
the Claimant prior to the termination of the initial 60-day
period.  In no event shall such extension exceed a period of 60 days
from the end of the initial period.  The extension notice shall
indicate: (i) the special circumstances necessitating the extension and (ii) the
date by which the Committee expects to render a benefit
determination.  An adverse benefit decision on appeal shall be written
in a manner calculated to be understood by the Claimant and shall set
forth:  (i) the specific reason or reasons for the adverse
determination, (ii) the specific reference to the SERP provisions on which
the denial is based, (iii) 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 relevant to the Claimant’s claim (the
relevance of a document, record or other information will be determined in
accordance with 29 C.F.R. §2560-1(m)(8)) and (iv) a statement of the
Claimant’s right to bring a legal action under section 502(a) of
ERISA.

       

      (f)           Litigation.  In
order to operate and administer the claims procedure in a timely and efficient
manner, any Claimant whose appeal with respect to a claim for benefits has been
denied, and who wants to commence a legal action with respect to such claim,
must commence such action in a court of competent jurisdiction within
90 days of receipt of notification of such denial.  Failure to
file such action by the prescribed time will forever bar the commencement of
such action.

       

      (g)           Disputes; Enforcement of
Rights.  All reasonable legal and other fees and expenses
incurred by the Claimant in connection with any disputed claim regarding any
right or benefit provided for in the SERP shall be paid by the Company, to the
extent permitted by law, provided that the Claimant prevails on the merits of
his or her claim in material part as the result of litigation, arbitration or
settlement.

       

      20.           Delay in
Distributions.  Notwithstanding anything in the SERP to the
contrary, distributions under the SERP may be delayed, to the extent permitted
by Code Section 409A if either (a) the ability of the Company to remain a going
concerned is jeopardized, or (b) such delay is necessary to comply with
applicable law.

       

      21.           Top Hat
and Non-Qualified Status.  The SERP is intended to be a top-hat
plan within the meaning of ERISA.  The SERP is an unfunded plan for
purposes of ERISA and the Code and is not qualified under section 401(a) of the
Code.

       

      22.           Withholding
of Taxes.  The rights of a Participant (and his or her
beneficiaries) to payments under the SERP shall be subject to the Company’s
obligations at any time to withhold from such payments any income or other tax
on such payments.

       

      23.           Assignability.  No
portion of a Participant’s benefits under the SERP may be assigned or
transferred in any manner, nor shall any of the those SERP benefits be subject
to anticipation, voluntary alienation or involuntary alienation.

       

      24.           Amendment
and Termination.  The Company
reserves the right to amend or terminate the SERP at any time by action of the
Board, but shall not reduce the benefits accrued under the SERP by any
Participant up to the date of such actions.

      

      
        
          
             

            

          

           

        

        
          9exhibit1018.htm

                                                                                                          EXHIBIT
10.18

    

    

    WEST
PHARMACEUTICAL SERVICES, INC.

    

    

    NON-QUALIFIED
DEFERRED COMPENSATION PLAN

    FOR
DESIGNATED EMPLOYEES

    

    

    

    (Amended
and Restated Effective January 1, 2008, except as otherwise noted herein or
required by applicable law)

     

    

    

    

    

    

    

    

    

    
      

    

    
      PLAN
DOCUMENT

    

    
      

    

    

    

    

    

    
      
        
          K:\EDGAR\2009\10K\Exhibit
10.18 - Employees NQDC Plan Restatement.DOC

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    THE
WEST PHARMACEUTICAL SERVICES, INC.

    NON-QUALIFIED
DEFERRED COMPENSATION

    PLAN FOR DESIGNATED
EMPLOYEES

     

    (Amended
and Restated Effective January 1, 2008)

     

    West
Pharmaceutical Services, Inc. (the “Company”) hereby adopts this
West Pharmaceutical Services, Inc. Non-Qualified Deferred Compensation Plan For
Designated Employees (the “Plan”), as amended, restated
and renamed effective January 1, 2008, except as otherwise noted herein, to
permit eligible employees of the Company to defer receipt of a specified portion
of their cash and equity-based compensation:

     

    1.           Eligible
Employees.  Employees of the Company or its subsidiaries are
eligible to make the elections set forth in this Plan after they have completed
three months of continuous service if they are: (a) employed in the United
States by the Company and are expected to earn an annual Base Salary (as defined
below) of $150,000 or more, as determined in the sole discretion of the
Compensation Committee, or (b) any other employee of the Company or its
subsidiaries who is designated by the Compensation Committee as eligible to
participate in the Plan (each an “Eligible Employee”).  An
Eligible Employee who at any time makes a valid deferral election under the Plan
is a “Participant.’

     

    2.           Deferrable
Compensation.  An Eligible Employee may separately elect, in
the form and manner determined by the Committee, to defer cash or stock
compensation as follows:

     

    (a) any whole percentage of his or her
annual aggregate base salary paid by the Company for services rendered exclusive
of any additional allowances, payments or non-cash benefits (“Base Salary”);

     

    (b)            any
whole percentage of his or her annual bonus (“Bonus”) earned and payable
under the Management Incentive Plan (“Annual Incentive Plan”), or
any successor plan thereto, whether payable in cash or stock issued under the
2004 Stock-Based Compensation Plan (the “2004 Stock Plan”), the 2007
Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”), and/or
any successor plan(s) or;

     

    (c)            effective
June 1, 2007, any whole number of shares of deferred stock (including
Performance-Vesting Restricted Stock and Performance-Vesting Stock Units, as
applicable) (“PV Stock”)
awarded under the Company’s Long-Term Incentive Plan (the “LTIP”), 2004 Stock Plan, the
2007 Omnibus Plan, and/or any successor plan(s) thereto, to the extent such PV
Stock is earned under the applicable plan.

     

    3. Elections to
Defer.

     

    (a) Base
Salary.  An Eligible Employee who wants to defer payment of any
portion of his or her Base Salary in any calendar year must notify the Company’s
Secretary in writing on or before December 31 of the prior year, stating the
amount of his or her Base Salary to be deferred.  This election
becomes irrevocable on December 31 of such prior year.

     

    (b) Bonus
Elections.

     

    (i)           An
Eligible Employee who wants to defer payment of any portion of his or her Bonus
in any calendar year shall notify the Company’s Secretary in writing on or
before June 30 of the year prior to the year the Bonus would otherwise be
paid.  The election must state the amount of a Participant’s Bonus
Stock which is to be deferred, and the election is irrevocable as of such June
30.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (ii)           A
Participant who has elected to defer any portion of his or her Bonus, shall be
permitted at the time of his or her election to designate that a portion of such
Bonus will be deemed to be invested in common stock of the Company (“Common Stock”) and ultimately
distributable in Common Stock in accordance with Section
7(c)(iii).  The portion of the Participant’s Bonus so designated will
be referred to as “Deferred
Bonus Stock.”  The portion of the Participant’s Bonus deferred
hereunder that is not-so-designated shall be referred to as the “Deferred Cash
Bonus.”

     

    (c)            PV
Stock.  An Eligible Employee who wants to defer payment of any
portion of his or her PV Stock in any calendar year must notify the Company’s
Secretary in writing on or before June 30 of the final (or, as applicable, only)
year of any performance-based vesting period applicable to such PV Stock,
stating the amount of his or her PV Stock which shall be
deferred.  This election is irrevocable on such June 30.

     

    (d)            Special Rules for
New-Hires.

     

    (i)            Base
Salary.  Notwithstanding Section 3(a) above, if an Eligible
Employee is hired by the Company during a calendar year, such Participant may
elect to participate in the Plan by notifying the Company’s Secretary in writing
before the first day of the payroll period that commences following the Eligible
Employees completion of three months of continuous service for the Company or
its subsidiaries.  An election so made shall be irrevocable on the
first day of the applicable payroll period.

     

    (ii)            Bonuses and PV
Stock.  Section 3(c) shall not apply to elections to defer
Bonuses or PV Stock in the year a Participant is hired.  A newly-hired
employee is not eligible to defer Bonuses or PV Stock until the calendar year
following the calendar year in which such Participant is hired.

     

    (a)            Revocation for Unforeseeable
Emergency or Disability.  If a Participant has an Unforeseeable
Emergency as described in Section 7(d) or incurs a Disability as defined in
Section 409A, then such Participant may make a request in writing to the
Compensation Committee or its delegate to suspend any elections to make any
deferrals to the Plan during the year such Unforeseeable Emergency or Disability
is incurred.  Upon approval by the Compensation Committee or its
delegate, such contributions shall cease immediately.

     

    4. Matching
Contributions.

     

    (a) Base
Salary.  For years prior to 2007, the Company will contribute
to the Plan an amount equal to 50% of the first 6% of Base Salary that a
Participant elects to defer.  Matching contributions under this
Section 4(a) (“Pre-2007 Salary Matching
Contributions”) shall not be made for deferrals of Base Salary in excess
of 6% or any portion of a Bonus or PV Stock deferred by a
Participant.

     

    (b) Deferred Incentive
Shares.  The Company shall make a matching contribution (“Deferred Incentive Shares”) equal to
25% of the aggregate fair market value of the Deferred Bonus Stock that a
Participant elects to defer.  Fair market value shall be measured as
of the date such Deferred Bonus Stock would otherwise be paid to such
Participant.

     

    (c) 401(k) Plan
True-up.  Effective for calendar years beginning on or after
January 1, 2007,

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     (i)         With respect to any
Participant who earns Base Salary in excess of Section 401(a)(17) of the
Internal Revenue Code of 1986, as amended (the “Code”), except as provided in
Sections 4(c)(ii), the Company will make matching contributions (“Post-2007 Salary Matching
Contributions”) equal to 100% of the Participant’s Base Salary deferred
and remaining to such Participant’s Account plus amounts deferred under the West
Pharmaceutical Services, Inc. 401(k) Plan (the “401(k) Plan”), if applicable,
up to 3% of such Participant’s total annual Base Salary and 50% of the
Participant’s Base Salary deferred in excess of 3%, but no greater than 5%, of
such Participant’s total annual Base Salary deferred.  Such matching
contributions shall be calculated without regard to Section 401(a)(17) of the
Code.  The amount of matching contributions made for the Participant
with respect to a calendar year (including a “true up” contributions) under the
401(k) Plan (or in accordance with Section 8 hereof), if any, shall be deducted
from the Post-2007 Salary Matching Contributions made
hereunder.  Post-2007 Salary Matching Contributions under this Section
4(c) shall not be made for deferrals of Base Salary in excess of 5% of a
Participant’s total annual Base Salary.

     

    (ii)         Notwithstanding
Section 4(c)(i), a Participant may elect to opt out of being credited with any
Post-2007 Salary Matching

    Contributions,
and, such Participant will only be credited with matching contributions under
the 401(k) Plan, if applicable.

     

    5. Investment of Deferred
Compensation Accounts.

     

    (a) The Company shall establish separate
bookkeeping accounts (each part of a Participant’s “Account”) as set forth in this
Section 5.  Such Accounts will be maintained on the books of the
Company and will be used solely to calculate the amount payable to each
Participant and shall not constitute separate funds of
assets.  Amounts will be credited to such Accounts as of the date such
amounts would have been distributed or paid to a Participant but for an election
to defer such amounts hereunder.  If a Bonus or share of Deferred PV
Stock is not earned under the Annual Incentive Plan or the LTIP, or any
successor plan(s) thereto, as applicable, no amount shall be credited to a
Participant’s Accounts.

     

    (b)            A
Participant’s Base Salary deferred pursuant to Section 3(a) plus his or her
Deferred Cash Bonus shall be allocated to his or her “Cash Deferral Account” as of
the last day of the payroll period to which it
relates.  Notwithstanding the foregoing, a Participant’s Cash Deferral
Account shall be debited, by any amounts contributed to the 401(k) Plan pursuant
to Section 8 hereof.

     

    (c)            Pre-2007
Salary Matching Contributions made pursuant to Section 4(a) on or before March
31, 2000 shall be allocated to a Participant’s “Participant-Directed Matching
Contribution Account” as of the last day of
the payroll period to which they relate.

     

    (d)            Pre-2007
Salary Matching Contributions made pursuant to Section 4(a) on or after April 1,
2001 and all Post-2007 Matching Contributions shall be allocated to a
Participant’s “Stock-Invested
Matching Contribution Account” as of the last day of the payroll period
to which they relate or, with respect to Post-2007 Matching Contributions, the
date the amount of such Post-2007 Matching Contributions is determined in the
next following calendar year.  Collectively, amounts credited to a
Participant’s Stock-Invested Matching Contribution Account and his or her
Participant-Directed Matching Contribution Account, shall be referred to as his
or her “Matching Contribution
Account.”

     

    (e)            Deferred
Bonus Stock, Deferred PV Stock, and Deferred Incentive Shares will be allocated
to a separate “Deferred Stock
Account” and subject to the rules of Section 7(c)(iii).

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (f) Investment of Cash Deferral
Account and Participant-Directed Matching Contribution
Account.

     

    (i) Each Participant shall direct the
deemed investment of his or her Cash Deferral Account and Participant-Directed
Matching Contribution Account among the investment funds offered under the Plan
(“Investment Funds”) by
complying with administrative procedures established by the Compensation
Committee.  A Participant’s election shall specify the whole
percentage of his or her Cash Deferral Account and Participant-Directed Matching
Contribution Account deemed to be invested in an Investment Fund.  A
Participant’s election shall remain in effect until a new election is
made.  A Participant may change an election of Investment Funds or
transfer existing Account balances among Investment Funds once per month by
complying with the administrative procedures established by the Compensation
Committee.  The Compensation Committee shall establish procedures to
review the investment elections made by a Participant and shall retain the
authority to override any investment election if it determines, in its sole
discretion, that such an override is in the Company’s best
interests.  In addition, any discretionary investments in or
divestments of amounts deemed invested in Company Stock shall be subject to the
Company’s Securities Trading Policy.

     

    (ii) Investment
Funds.  The Company shall make available to each Participant
literature summarizing the investment characteristics of each Investment
Fund.

     

    (iii) Valuation of Participant
Accounts.  Any increase or decrease in the fair market value of
an Investment Fund shall be computed and credited to or deducted from the Cash
Deferral Account or Participant-Directed Matching Contribution Account, as
applicable, of all Participants who are deemed to have invested in the
Investment Fund in accordance with policies and procedures established by the
Compensation Committee.

     

    (g) Investment of Stock-Invested
Matching Contribution Account.

     

    (i) The Stock-Invested Matching
Contribution Account of each Participant shall be deemed to be invested in
Common Stock.  Except as set forth herein, a Participant shall not be
able to direct or invest amounts in his or her Stock-Invested Matching
Contribution Account.  Notwithstanding the foregoing, effective
January 1, 2008, a Participant who has been credited with three years of
service, may direct the investment of his Stock-Invested Matching Contribution
Account among the other Investment Funds offered under the Plan, and also may
choose to re-invest any portion of their Stock-Invested Matching Contribution
Account in Common Stock after previously investing it in the other available
Investment Funds.

     

    (ii) Any increase or decrease in the fair
market value of the common stock of the Company shall be computed and credited
to or deducted from the Stock-Invested Matching Contribution Accounts of all of
the Participants who are invested in the common stock of the Company in
accordance with policies and procedures established by the Compensation
Committee.

     

    (h) Investment of Deferred Stock
Account.

     

               (i)  The
Deferred Stock Account of each Participant shall be deemed to be invested in
Common Stock.  A Participant shall not have the ability to direct or
invest amounts in his or her Deferred Stock Account.

     

    (ii)  Any
increase or decrease in the fair market value of the common stock of the Company
shall be computed and credited to or deducted from the Deferred Stock Accounts
of all of the Participants who are invested in the common stock of the Company
in accordance with policies and procedures established by the Compensation
Committee.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (i) Indemnity.  By
electing to make contributions to this Plan,  each Participant hereby
recognizes and agrees that the Company and any other individual responsible for
administering the Plan (including the Company’s Secretary or any trustee
responsible for holding assets under the Plan) are in no way responsible for the
investment performance of the Participant’s Accounts.

     

    (j) Dividends on Company
Stock.  Any dividends paid on that portion of a Participant’s
Account that is deemed invested in Company Stock shall be treated as earnings
hereunder, and, shall, in the manner determined by the Committee be credited to
a Participant’s Account and remain deemed invested in Company Stock and shall be
distributed in Company Stock.  With respect to Deferred PV Stock, such
amount shall be credited with dividends at the target level in a manner similar
to that provided under the terms of the LTIP.

     

    6. Vesting.

     

    (a) Cash Deferrals and Post-2007
Salary Matching Contributions.  A Participant shall always be
100% vested in his or her Cash Deferral Account and Post-2007 Salary Matching
Contributions made pursuant to Section 4(c) on or after January 1,
2007.

     

    (b) Pre-2007 Salary Matching
Contributions.  A Participant shall be 40% vested in Pre-2007
Salary Matching Contributions made on his or her behalf under Section 4
after two years of employment with the Company or any of its subsidiaries (prior
to such two-year period, no portion of the Pre-2007 Salary Matching
Contributions shall be vested).  A Participant’s vested interest in
Pre-2007 Salary Matching Contributions will increase by 20% per year of
employment, so that he or she is 100% vested after five years of employment with
the Company or any of its subsidiaries.  A “year of employment” will
be credited to a Participant for each 12 month period, beginning on his or her
date of hire by the Company or any of its subsidiaries (and each anniversary
thereof), during which he or she is continuously employed by the Company or any
of its subsidiaries, as determined in the Company’s sole
discretion.

     

    (c) Bonus Stock and Deferred PV
Stock.  Any Bonus Stock deferred under Section 3(b) and any
Deferred PV Stock deferred under Section 2(c) shall be immediately 100%
vested.

     

    (d) Deferred Incentive
Shares.

     

    (i)            Subject
to Sections 6(d)(ii) through 6(d)(v), all Incentive Shares credited to a
Participant’s Account will vest on the fourth anniversary of the date that the
Bonus Stock with respect to which such Incentive Share relates (“Underlying Stock”) was granted
to a Participant.

     

    (ii)            If
a Participant receives a distribution with respect to any share of Underlying
Stock prior to the fourth anniversary of the grant date of the Underlying Stock
in accordance with Section 7(a)(iv), the Incentive Shares that relates to such
Underlying Stock will be immediately forfeited by such Participant.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (iii)            If
a participant sells, assigns, exchanges, pledges, hypothecates or otherwise
encumbers any of the Underlying Stock, the Incentive Shares that relate to such
Underlying Stock will be immediately forfeited by such Participant.

     

    (iv)            If,
as determined by the Committee in its sole and absolute discretion, a
Participant terminates employment with the Company due to death, disability or
retirement under a qualified pension plan maintained by the Company
(collectively referred to as a “Qualified Termination”), then
the following percentage of Incentive Shares shall vest and all unvested shares
shall be immediately forfeited:

     

    (A)            25%
if at least one but less than two years has elapsed since the grant date of the
Underlying Stock.

     

    (B) 50% if at least two but less than three
years has elapsed since the grant date of the Underlying Stock.

     

    (C) 75% if at least three but less than
four years has elapsed since the grant date of the Underlying
Stock.

     

    (v)            If,
as determined by the Committee in its sole and absolute discretion, a
Participant’s service with the Company terminates for any reason other than a
Qualified Termination, all unvested Incentive Shares shall immediately be
forfeited.

     

    (e) (i)           Notwithstanding
anything in this Plan to the contrary, a Participant shall immediately be 100%
vested in matching contributions made pursuant to Section 4 after a Change
in Control, as defined below.

     

    (ii)           A
“Change in Control”
shall mean a change in control of a nature that would be required to be reported
in response to Item 1 of the Current Report on Form 9-K as in effect on April
28,1998, pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934,
as amended (the “Act”),
provided that, without limitation, a Change in Control shall be deemed to have
occurred if:

     

    (A) any “Person” (as such term is used
in sections 13(d) and 14(d) of the Act), other than:

     

    (1) the Company,

     

    (2) any Person who on the date hereof is a
director or Participant of the Company, or

     

    (3) a trustee or fiduciary holding
securities under an employee benefit plan of the Company,

     

    (B) is or becomes the “beneficial owner,”
(as defined in Rule 13d-3 under the Act), directly or indirectly, of securities
of the Company representing more than 50% of the combined voting power of the
Company’s then outstanding securities; or

     

    (C) during any period of two consecutive
years during the term of this Plan, individuals who at the beginning of such
period constitute the board of directors of the Company (the “Board”) cease for any reason
to constitute at least a majority thereof, unless the election of each director
who was not a director at the beginning of such period has been approved in
advance by directors representing at least two-thirds of the directors then in
office who were directors at the beginning of the period; or

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (D) the shareholders of the Company
approve:

     

    (1) a plan of complete liquidation of the
Company; or

     

    (2) an agreement for the sale or
disposition of all or substantially all of the Company’s assets; or

     

    (3)  a merger, consolidation, or
reorganization of the Company with or involving any other corporation, other than a merger,
consolidation, or reorganization that would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity), at least fifty percent (50%) of the combined voting power
of the voting securities of the Company (or the surviving entity, or an entity
which as a result of such transaction owns the Company or all or substantially
all of the Company’s assets either directly or through one or more subsidiaries)
outstanding immediately after such merger, consolidation, or
reorganization.

     

    7. Distribution of Deferred
Compensation.

     

    (a) Distributions of Certain
Amounts Following Fifth Anniversary.  For allocations to a
Participant’s Cash Deferral Account and the vested portion of a Participant’s
Deferred Stock Account only, during each calendar year, unless a Participant
elects otherwise in accordance with Section 7(b), the amount contributed to each
Account for each plan year plus any earnings and losses, shall be distributed on
the first to occur of:

     

    (i)            The
first normal payroll date on or after the January 15 that occurs following the
fifth anniversary of the end of year such amounts would have been paid to the
Participant absent his or her deferral hereunder; or,

     

    (ii) The first normal payroll date on or
after the date which is six months following the Participant’s termination of
employment.

     

    (b)            Election to Receive Certain
Amounts at a Different Time.  Notwithstanding Section 7(a), a
Participant may elects in writing as described in this Section 7(b) only to have
amounts that would be distributed in accordance with Section 7(a) distributed at
a different time.

     

    (i)            With
respect to amounts described in Section 7(a) that were earned and vested on or
before December 31, 2004 (“Grandfathered Amounts”), the
election must be made in writing by December 31 of the year which is two years’
prior to the date the Grandfathered Amounts would otherwise be distributed under
the Plan.  A Participant may elect to receive his or her Grandfathered
Amounts on either: (A) a subsequent date that is at least 24 months later than
the date the amounts would otherwise be distributed hereunder, or (B)
termination of employment.  A Participant is permitted to make
subsequent deferrals under this Section 7(b)(i) provided that such subsequent
elections satisfy the requirements in the previous
sentence.  Notwithstanding any election under this Section 7(b),
Grandfathered Amounts will be distributed by the end of the month following the
Participant’s termination of employment if it occurs earlier.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (ii) With respect to amounts described in
Section 7(a) that were earned and vested on or after January 1, 2005 (“Non-Grandfathered Amounts”),
the election must be made in writing by the later of (A) the date his or her
election becomes irrevocable as described in Section 3, or (B) December 31,
2008.  A
Participant may elect to receive his or her Non-Grandfathered Amounts on either:
(A) a subsequent date that is at least 24 months later than the date the amounts
would otherwise be distributed hereunder, or (B) termination of
employment.  A Participant is not permitted to make
subsequent deferrals under this Section 7(b)(ii).  Notwithstanding any
election under this Section 7(b)(ii), Non-Grandfathered Amounts will be
distributed on the date that is six months following the Participant’s
termination of employment if it occurs earlier.

     

    (c)            Distributions of Matching
Contributions.  Allocations of Grandfathered and
Non-Grandfathered Amounts to a Participant’s Participant-Directed Matching
Contribution Account and Stock-Invested Matching Contribution Account are
distributable only following the termination of a Participant’s employment with
the Company and all of its subsidiaries for any reason, including retirement,
death.  Distributions of Grandfathered Amounts shall be made by the
end of the month following the month of the Participant’s termination of
employment, and distributions of Non-Grandfathered Amounts shall be made on the
date that is six months following the Participant’s termination of
employment.

     

    (d)            Distributions in the Event
of an Unforeseeable Emergency. Notwithstanding anything
herein to the contrary, a Participant may elect
to receive a distribution from his Cash Deferral Account and the vested portion
of a Participant’s Deferred Stock Account in the event of an Unforeseeable
Emergency.  An Unforeseeable Emergency shall be defined in accordance
with Section 409A(a)(2)(B)(ii) of the Code.  The distributed amount
may not exceed the amount necessary to eliminate the Unforeseeable Emergency
plus pay any applicable taxes.  To apply for an Unforeseeable
Emergency distribution, a Participant must submit a written application to the
Company’s Secretary indicating (A) the nature of the Unforeseeable
Emergency, (B) the amount the Participant needs to alleviate the Unforeseeable
Emergency, and (C) the Account from which a distribution, if approved, shall be
made.  The determination of whether an Unforeseeable Emergency exists
shall be made in accordance with the claims procedures in Section
12.  Amounts allocated to a Participant’s Participant-Directed
Matching Contribution Account, Stock-Invested Matching Contribution Account and
the unvested portion of a Participant’s Deferred Stock Account shall not be
available for distribution under this Section 7(d).

     

    (e) Valuing Accounts for
Distributions,  The value of each of the Accounts of a
Participant shall be determined as of the effective date of a distribution from
the Plan (the “Valuation
Date”).  The value of the Accounts will be adjusted on the
Valuation Date to reflect earnings, losses, dividends, stock splits, and
previous withdrawals.  The relevant portion of each of the Accounts,
as applicable, shall then be distributed in accordance with this Section
7.

     

    (f) Method of
Distribution,

     

        (i)         Subject to Sections
7(g) and 8, and unless elected otherwise under Section 7(f)(ii), all
distributions from the Plan shall be made in a cash lump sum.

     

    (ii)         For amounts payable
upon termination of employment pursuant to any other sub-section of this Section
7, a Participant may elect to receive the distribution in five substantially
equal annual installments in accordance with this Section 7(f)(ii).

     

    (A)            With
respect to Grandfathered Amounts, such election must be made by December 31 of
the year before the year of a Participant’s termination of employment. This
election shall continue in effect until changed by the Participant, provided
that any such change shall be effective only if the Participant submits
appropriate instructions, in accordance with administrative procedures
established by the Company, on or before December 31 of the year prior to the
year in which the Participant becomes entitled to a distribution.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (B)            With
respect to Non-Grandfathered Amounts, such election must be made by the later of
(i) the date the Participant makes his or her first deferral election under the
Plan, or (ii) December 31, 2008.  This election is
irrevocable.

     

    (C) If installment distributions are
elected, the first installment shall be paid on or as soon as practicable
following the January 15 immediately following the Participant’s termination
from employment, and the others on or as soon as practicable following January
15 of the second, third, fourth and fifth years following such
termination.  The Participant shall continue to direct the investment
of any amount remaining in his or her Cash Deferral Account and
Participant-Directed Matching Contribution Account and the second to fifth
installments shall be adjusted to take into account any earnings, losses, stock
splits or dividends.

     

    (g)   Form of
Distributions.  Regardless of the method of distribution
required or elected under Section 7(f):

     

    (ii)            Distributions
from a Participant’s Cash Deferral Account, and either Matching Contribution
Account shall be made in cash, unless elected otherwise under Section
7(g)(iii).

     

    (iii)            Distributions
of Bonus Stock and amounts allocated to a Participant’s Deferred Stock Account
must be made in the form of whole shares of Common Stock in accordance with this
Section.  No partial shares of Common Stock shall be distributed, and
cash equal to the fair market value of such fractional Common Stock shall be
distributed in lieu thereof.

     

    (iv)            A
Participant may elect to receive all or a portion of his or her distribution
from his or her Base Salary Deferral Account or either Matching Contribution
Account in Common Stock; provided that such election to receive Common Stock in
lieu of cash shall be effective only if the Participant submits appropriate
instructions, in accordance with administrative procedures established by the
Company, on or before December 31 of the year prior to the year in which
the  Participant becomes entitled to a distribution.

     

    (v)            Any
Common Stock distributable from this Plan in accordance with this Section 7(g)
shall be made under and pursuant to the 2004 Stock Plan, or, as applicable, the
2007 Omnibus Plan or any successor plan(s) thereto as determined by the
Compensation Committee.

     

    (h) Treatment of Unvested
Portion of Participant’s Account.  Incentive Shares that are
not vested at the time a Participant terminates employment shall be forfeited
and may be used by the Company as determined in its sole
discretion.

     

    (i) Small-Benefit Cash
Out.  To the extent permitted by Section 409A of the Code,
notwithstanding any other provision of this Plan to the contrary, if a
Participant’s entire Account Balance (plus any amounts that would be aggregated
with the Account Balance under Code Section 409A) is less than the amount
specified in Section 402(g)(1)(B) of the Code when such Participant terminates
employment, his or her entire Account Balance will be paid in a single, cash
lump sum six months following termination of employment.

     

    
      
        
        

      

      
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    8.            Transfers of Certain Amounts
to the 401(k) Plan.  With respect to any Participant who is
eligible for the 401(k) Plan,

     

    (a)            The
Company shall distribute from such Participant’s Base Salary deferred hereunder
(but not Cash Bonuses), the maximum pre-tax amount that may be contributed to
the 401(k) Plan by such Participant for such deferral year, and shall contribute
such amount to the 401(k) Plan on behalf of such Participant in accordance with
the limitations imposed by the Code.  Such amount shall not include
any earnings on the Base Salary Deferrals, but shall be adjusted for any
losses.

     

    (b)            The
Company shall contribute, from such Participant’s Post-2007 Matching
Contributions an amount equal to the maximum amount such Participant could have
been credited with matching contributions under the 401(k) Plan.  Such
amount shall not include any earnings on the Base Salary Deferrals, but shall be
adjusted for any losses.

     

    (c)            The
Company shall contribute both such amounts to the 401(k) Plan as soon as
practicable after the calendar year to which the election relates, but not later
than March 15 of the following calendar year.

     

    9.            Distributions on
Death; Designation of
Beneficiary.  Notwithstanding anything in the Plan to the
contrary, if a Participant dies prior to receiving the entire balance of his or
her Accounts, any balance remaining in his or her Accounts shall be paid in a
cash lump sum only to the Participant’s designated beneficiary as soon as
practicable after such Participant’s death, or if the Participant has not
designated a beneficiary in writing to the Company’s Secretary, to such
Participant’s  estate.  Any designation of beneficiary may
be revoked or modified at any time by the Participant or his or her authorized
designee.

     

    10. Unsecured Obligation of the
Company.  The Company’s obligations to establish and maintain
Accounts for each Participant and to make payments of deferred compensation to
him or her under this Plan shall be the general unsecured obligations of the
Company.  The Company shall be under no obligation to establish any
separate fund, purchase any annuity contract, or in any other way make special
provision or specifically earmark any funds for the payment of any amounts
called for under this Plan, nor shall this Plan or any actions taken under or
pursuant to this Plan be construed to create a trust of any kind, or a fiduciary
relationship between the Company and any Participant, his or her designated
beneficiary, executors or administrators, or any other person or
entity.  If the Company chooses to establish such a fund or purchase
such an annuity contract or make any other arrangement to provide for the
payment of any amounts called for under this Plan, such fund contract or
arrangement shall remain part of the general assets of the Company, and no
person claiming benefits under this Plan shall have any right, title, or
interest in or to any such fund, contract or arrangement.

     

    11. Administration. The
Plan will be administered by the Compensation Committee.

     

    (a) The Compensation Committee shall be the
named fiduciary for purposes of the claims procedure pursuant to Section 12 and
shall have authority to act to the full extent of its absolute discretion
to:

     

    (ii)                
interpret
the Plan;

     

    (iii)    resolve
and determine all disputes or questions arising under the Plan subject to the
provisions of Section 11, including the power to determine the rights of
Participants and their beneficiaries (designated under Section 8), and their
respective benefits, and to remedy any ambiguities, inconsistencies or omissions
in the Plan;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv) create and revise rules and procedures
for the administration of the Plan and prescribe such forms as may be required
for Participants to make elections under, and otherwise participate in, the
Plan; and

     

    (v) take any other actions and make any
other determinations as it may deem necessary and proper for the administration
of the Plan.

     

    (b) Any expenses incurred in the
administration of the Plan will be paid by the Company or the
Employer.

     

    (c) Except as the Compensation Committee
may otherwise determine (and subject to the claims procedure set forth in
Section 12), all decisions and determinations by the Compensation Committee
shall be final and binding upon all Participants and their designated
beneficiaries.

     

    (d) Neither the Secretary nor any member of
the Compensation Committee shall participate in any matter involving any
questions relating solely to his or her own participation or benefits under the
Plan. The Compensation Committee shall be entitled to rely conclusively upon,
and shall be fully protected in any action or omission taken by it in good faith
reliance upon the advice or opinion of any persons, firms or agents retained by
it, including but not limited to accountants, actuaries, counsel and other
specialists. Nothing in this Plan shall preclude the Company from indemnifying
the Secretary or members of the Compensation Committee for all actions under
this Plan, or from purchasing liability insurance to protect such persons with
respect to the Plan.

     

    (e) With respect to Company Stock, in the
event of any (a) stock split, reverse stock split, or stock dividend, or (b)
extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, combination, exchange of shares, liquidation, spin-off, split-up
or other similar change in corporate structure or capitalization or similar
event, the number and kinds of shares payable hereunder shall be adjusted by the
Company.  The determinations and adjustments made by the Committee
under this Section shall be conclusive.

     

    12.            Claims
Procedure.  The Company  shall administer a claims
procedure as follows:

     

    (a) Initial
Claim.  A Participant or his or her beneficiary who believes
that he or she is entitled to benefits under the Plan (the “Claimant”), or the Claimant’s
authorized representative acting on behalf of such Claimant, must make a claim
for those benefits by submitting a written notification of his or her claim of
right to such benefits.  Such notification must be on the form and in
accordance with the procedures established by the Company.  No benefit
shall be paid under the Plan until a proper claim for benefits has been
submitted.

     

    (b) Procedure for
Review.  The Compensation Committee shall establish
administrative processes and safeguards to ensure that all claims for benefits
are reviewed in accordance with the Plan document and that, where appropriate,
Plan provisions have been applied consistently to similarly situated
Claimants.  Any notification to a Claimant required hereunder may be
provided in writing or by electronic media, provided that any electronic
notification shall comply with the applicable standards imposed under 29 C.F.R.
§2520.104b-1(c).

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (c) Claim Denial
Procedure.  If a claim is wholly or partially denied, the
Compensation Committee shall notify the Claimant within a reasonable period of
time, but not later than 90 days after receipt of the claim, unless the
Compensation Committee determines that special circumstances require an
extension of time for processing the claim.  If the Compensation
Committee determines that an extension of time for processing is required,
written notice of the extension shall be furnished to the Claimant prior to the
termination of the initial 90-day period.  In no event shall such
extension exceed a period of 180 days from receipt of the claim.  The
extension notice shall indicate: (i) the special circumstances necessitating the
extension and (ii) the date by which the Compensation Committee expects to
render a benefit determination.  A benefit denial notice shall be
written in a manner calculated to be understood by the Claimant and shall set
forth:  (i) the specific reason or reasons for the denial,
(ii) the specific reference to the Plan provisions on which the denial is
based, (iii) a description of any additional material or information necessary
for the Claimant to perfect the claim, with reasons therefor, and (iv) the
procedure for reviewing the denial of the claim and the time limits
applicable to such procedures, including a statement of the Claimant’s right to
bring a legal action under section 502(a) of Employee Retirement Income Security
Act of 1974, as amended (“ERISA”) following an adverse
benefit determination on review.

     

    (d) Appeal
Procedure.  In the case of an adverse benefit determination,
the Claimant or his
or her representative shall have the opportunity to appeal to the Compensation
Committee for review thereof by requesting such review in writing to the Board
within 60 days of receipt of notification of the denial.  Failure to
submit a proper application for appeal within such 60 day period will cause such
claim to be permanently denied.  The Claimant or his or her
representative shall be provided, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant
to the claim.  A document, record or other information shall be deemed
“relevant” to a claim in accordance with 29 C.F.R.
§2560.503-1(m)(8).  The Claimant or his or her representative shall
also be provided the opportunity to submit written comments, documents, records
and other information relating to the claim for benefits.  The Board
shall review the appeal taking into account all comments, documents, records and
other information submitted by the Claimant or his or her representative
relating to the claim, without regard to whether such information was submitted
or considered in the initial benefit determination.

     

    (e) Decision on
Appeal.  The Board shall notify a Claimant of its decision on
appeal within a reasonable period of time, but not later than 60 days after
receipt of the Claimant’s request for review, unless the Compensation Committee
determines that special circumstances require an extension of time for
processing the appeal.  If the Compensation Committee determines that
an extension of time for processing is required, written notice of the extension
shall be furnished to the Claimant prior to the termination of the initial
60-day period.  In no event shall such extension exceed a period of 60
days from the end of the initial period.  The extension notice shall
indicate: (i) the special circumstances necessitating the extension and (ii) the
date by which the Compensation Committee expects to render a benefit
determination.  An adverse benefit decision on appeal shall be written
in a manner calculated to be understood by the Claimant and shall set
forth:  (i) the specific reason or reasons for the adverse
determination, (ii) the specific reference to the Plan provisions on which
the denial is based, (iii) 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 relevant to the Claimant’s claim (the
relevance of a document, record or other information will be determined in
accordance with 29 C.F.R. §2560-1(m)(8)) and (iv) a statement of the
Claimant’s right to bring a legal action under section 502(a) of
ERISA.

     

    (f) Litigation.  In
order to operate and administer the claims procedure in a timely and efficient
manner, any Claimant whose appeal with respect to a claim for benefits has been
denied, and who wants to commence a legal action with respect to such claim,
must commence such action in a court of competent jurisdiction within
90 days of receipt of notification of such denial.  Failure to
file such action by the prescribed time will forever bar the commencement of
such action.

     

    (g) Disputes; Enforcement of
Rights.  All reasonable legal and other fees and expenses
incurred by the Claimant in connection with any disputed claim regarding any
right or benefit provided for in this Plan shall be paid by the Company, to the
extent permitted by law, provided that the Claimant prevails on the merits of
his or her claim in material part as the result of litigation, arbitration or
settlement.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    13. Delay.  Notwithstanding
anything in the Plan to the contrary, to the extent permitted by Section 409A of
the Code, distributions to Participants shall be delayed if (a) the ability of
the Company to remain a going concern is jeopardized, (b) it is necessary to
comply with applicable law, or (c) prior to a Change in Control only, to the
extent necessary to ensure deduction under Section 162(m) of the
Code.

     

    14.                
Acceleration to Pay
Employment Taxes.  To the extent permitted by Section 409A of
the Code, distributions under the Plan may be accelerated to the extent required
to pay employment taxes, as permitted by the Compensation
Committee.

     

    15. Top Hat and Non-Qualified
Status.  This Plan is intended to be a top-hat plan within the
meaning of ERISA.  The Plan is an unfunded plan for purposes of ERISA
and the Code and is not qualified under section 401(a) of the Code.

     

    16. Withholding of
Taxes.  The rights of a Participant (and his or her
beneficiaries) to payments under this Plan shall be subject to the Company’s
obligations at any time to withhold from such payments any income or other tax
on such payments.

     

    17. Assignability.  No
portion of a Participant’s Account(s) may be assigned or transferred in any
manner, nor shall any of the Accounts be subject to anticipation, voluntary
alienation or involuntary alienation.

     

    18. Amendments and
Termination.  This Plan may be amended by a the Compensation
Committee of the Board.  This Plan may be terminated at any time by
the Board.  No amendment or termination may adversely affect a
Participant’s Accounts existing on the date such amendment or termination is
made, nor any election previously made under the Plan as to deferrals for the
calendar year in which the amendment or termination occurs.

     

    19. Effective Date; Section
409A.  The Plan was originally effective with respect to a
Participant’s  Bonus Stock or Cash Compensation earned after August
30, 1994.  This restatement is effective with respect to a
Participant’s deferrals made on or after January 1, 2008, except to the extent
required by Section 409A, when such changes shall be effective as of the date
required by Section 409A (generally, January 1, 2005).  The Plan is
intended to satisfy Code Section 409A and all of the official guidance
promulgated thereunder.  To the extent a provision in the Plan is
inconsistent with Code Section 409A, such provisions shall be deemed amended to
comply with Code Section 409A, to avoid the application of the penalty tax and
interest provided thereunder.

     

    
      
        
           

        

         

      

      
        12

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