Document:

Exhibit 10.20

 

DEERE &
COMPANY

 

 

NONEMPLOYEE
DIRECTOR DEFERRED COMPENSATION PLAN

 

 

EFFECTIVE
DATE: 01 JANUARY 1997

 

REVISED:  26 MAY 1999

AMENDED
BY SUPPLEMENT: 30 AUGUST 2006

AMENDED: 29 NOVEMBER 2006

AMENDED AND RESTATED 13 DECEMBER 2007: 
EFFECTIVE 1 JANUARY 2008

 AMENDED: 25 FEBRUARY
2009       EFFECTIVE: 25 FEBRUARY 2009

 

(For special rules applicable to deferrals after 2004

see the supplement beginning on page 12)

 

67

 

DEERE &
COMPANY

 

NONEMPLOYEE
DIRECTOR DEFERRED COMPENSATION PLAN

 

I.              Purpose

 

The purposes of the Deere &
Company Nonemployee Director Deferred Compensation Plan (“Plan”) are to attract
and retain highly qualified individuals to serve as Directors of Deere &
Company (“Company”) and to relate Nonemployee Directors’ interests more closely
to the Company’s performance and its shareholders’ interests.

 

II.            Eligibility

 

Each member of the Board
of Directors (“Board”) of the Company who is not an employee of the Company or
any of its subsidiaries (“Nonemployee Director”) is eligible to participate in
the Plan.

 

III.           Definitions

 

(a)           Committee.   The
Nominating Committee of the Board or any successor committee of the Board.

 

(b)           Common Stock.   The publicly
traded $1 par value common stock of the Company or any successor.

 

(c)           Compensation.   Amounts
payable for services as a Nonemployee Director, excluding reimbursed expenses.

 

(d)           Deferred Account.   The
bookkeeping account maintained for each participating Nonemployee Director
which will be credited with Deferred Amounts pursuant to the terms hereof.

 

(e)           Deferred Amounts.   All amounts
credited to a Nonemployee Director’s Deferred Account pursuant to the Plan.

 

(f)            Elective Deferrals.   Compensation
voluntarily deferred by a Nonemployee Director under the Plan after 31 December 1996
(other than Lump-Sum Deferral defined below).

 

(g)           Lump-Sum Deferral.   A one-time
lump-sum amount for each Nonemployee Director serving on 31 December 1996,
which amount is deferred under the Plan as described in Section V, below,
as a result of the termination of the John Deere Pension Benefit Plan for
Directors (“Retirement Plan”).

 

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68

 

(h)           Participant.   A
Nonemployee Director for whom a Lump-Sum Deferral occurs on the Effective Date,
or who elects to participate in the Plan.

 

(i)            Pre-1997 Elective Deferrals.  
Compensation deferred by a Nonemployee Director prior to 1 January 1997
under the predecessor Directors’ Deferred Compensation Plan approved 30 January 1973,
as amended from time to time.

 

(j)            Secretary.  The Secretary
of the Company.

 

IV.           Effective Date

 

The effective date of the
Plan is 1 January 1997 (“Effective Date”).

 

V.            Lump-Sum Deferral

 

As of the Effective Date,
the Retirement Plan will be eliminated and the present value of the life
annuity offered under the Retirement Plan for each Nonemployee Director who is
both a participant in the Retirement Plan and a member of the Board on the
Effective Date will be deposited into the Deferred Account of such Nonemployee
Director.  The present value will be
determined by using a discount factor which shall be the rate for 10-year
treasury stripped bonds in effect as of 31 December 1996 and by using the
1984 Unisex Pension Mortality tables published in the Pension Benefit Guaranty
Corporation Regulation 2619, Appendix A.

 

VI.           Elective Deferral

 

(a)           Participants may elect to defer a part or all of their
annual Compensation by making an irrevocable deferral election in writing on a
form provided by the Company and delivered to the Company not later than the
Company may direct.  Elective Deferrals
will become effective on the first day of the following calendar quarter, at
which time they become irrevocable. 
Notwithstanding the preceding sentence, any person who first becomes a
Nonemployee Director during a calendar quarter, may elect, before his or her
term begins, to defer a part or all of his or her compensation that would
otherwise be payable to him or her during the remainder of such calendar quarter
and each succeeding calendar quarter until such election is modified or
terminated as provided herein.  A
Participant may discontinue deferrals, or may change his or her investment
choices, for future quarters by providing a written election delivered to the
Company not later than the Company may direct. 
These changes will become effective on the first day of the following
calendar quarter.

 

(b)           If the amount of a Participant’s Compensation is
changed, the deferral percentage and investment alternative elections shall
continue to be 

 

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69

 

applied to the new
Compensation amount after the change.

 

VII.         Deferred Account

 

(a)           The Company shall establish a separate Deferred
Account for each Participant.

 

(b)           Pre-1997 Elective Deferrals and the interest earned
thereon shall be credited to the Deferred Account and will continue to be
invested in the interest-bearing investment alternative described below.

 

(c)           Two investment alternatives will be available, as of
the Effective Date: an interest-bearing alternative and an equity alternative
denominated in units of Deere Common Stock. 
Additional investment alternatives may be added by subsequent amendment
of the Plan.

 

(d)           At the time of Elective Deferral, Participants may
direct their deferrals into either investment alternative, or a combination of
the two, in increments of 5%.

 

(e)           Deferred amounts credited into the interest-bearing
investment alternative will be credited with interest at the end of each
calendar quarter at the interest rate identified in the U.S. Federal Reserve
Statistical Release, “bank prime loan” rate for the second month of each
calendar quarter, plus 2%. Deferred amounts credited into the interest-bearing
alternative after December 31, 2009, will be credited with interest at the
end of each calendar quarter at an at-market rate equal to the at-market rate
used for the employee Deere & Company Voluntary Deferred Compensation
Plan.

 

(f)            Deferred Amounts credited into the equity alternative
shall be expressed and credited to each Participant’s Deferred Account in units
(“Units”) determined as hereinafter provided. 
As of each date on which Deferred Amounts are credited into the equity
investment alternative, the Company shall credit to such Deferred Account a
number of Units and fractional Units, rounded to three decimal places,
determined by dividing such Deferred Amounts by the Unit Value (as defined
below) of one share of Common Stock.  The
“Unit Value” of one share of Common Stock shall be the closing price of the
Common Stock on the New York Stock Exchange on the date on which Deferred
Amounts are credited to the Deferred Account or a payment is to be valued under
Section VIII (b) below, as the case may be; or if there were no sales
on that day, then Unit Value shall be the closing price on the New York Stock
Exchange Composite Tape on the most recent preceding day on which there were
sales.  The Lump-Sum Deferral shall be
credited as of the Effective Date.

 

(g)           When dividends are paid with respect to the Company’s
Common Stock, 

 

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70

 

the Company shall
calculate the amount which would have been payable on the Units in each
Participant’s Deferred Account on each dividend record date as if each Unit
represented one issued and outstanding share of the Company’s Common
Stock.  The applicable number of Units
and fractional Units equal to the amount of such dividends (based on the Unit
Value of one share of the Company’s Common Stock on the dividend payment date)
shall be credited to each Participant’s Deferred Account.  In the event of any capital stock adjustment
to the Company’s Common Stock or other similar event, the number of Units or
fractional Units credited to Deferred Accounts shall be adjusted to
appropriately reflect such event.

 

(h)           Participants credited with Units hereunder shall not
have any voting rights in respect thereof.

 

VIII.        Payment of Benefits

 

(a)           The value of a Participant’s Deferred Account shall be
payable solely in cash, either in (i) a lump sum, or (ii) in up to
ten equal annual installments, in accordance with an election made by the
Participant by written notice delivered to the Company prior to the calendar
year in which payments are to be made or commence.  Such payment or payments shall be made or
commence, as the case may be, on the first business day of the calendar year
following the year of the termination of service as Director.

 

(b)           Any lump sum payment shall be valued as of the end of
the most recent calendar month prior to the payment date.  The amount of each installment payment shall
be determined by dividing the aggregate value credited to the Participant’s
Deferred Account (as of the end of the most recent calendar month prior to the
payment date) by the remaining number of unpaid installments; provided,
however, that the Committee may, in its absolute discretion, approve any other
method of determining the amount of each installment payment in order to
achieve approximately equal installment payments over the installment period.

 

(c)           The Company shall have the right to deduct from all
payments under this Plan the amount necessary to satisfy any Federal, state, or
local withholding tax requirements.

 

(d)           The Committee, at its sole discretion, may alter the
timing or manner of payment of Deferred Amounts in the event that the
Participant establishes, to the satisfaction of the Board, severe financial
hardship.  In such event, the Committee
may:

 

(1)           provide that all or a portion of the amount previously
deferred by the Participant shall be paid immediately in a lump-sum cash 

 

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71

 

payment;

 

(2)           provide that all or a portion of the installments
payable over a period of time shall be paid immediately in a lump sum; or

 

(3)           provide for such other installment payment schedules
as it deems appropriate under the circumstances.

 

It is expressly provided
that the amount distributed shall not be in excess of that amount which is necessary
for the Participant to meet the financial hardship.  Severe financial hardship will be deemed to
have occurred in the event of the Participant’s impending bankruptcy, the long
and serious illness of Participant or a dependent, other events of similar
magnitude, or the invalidation of a deferral election by the Internal Revenue
Service.  The Committee’s decision in
passing on the severe financial hardship of the Participant and the manner in
which, if at all, the payment of Deferred Amounts shall be altered or modified
shall be final, conclusive and not subject to appeal.

 

IX.           Death of Participant

 

(a)           In the event of the death of a Participant, any
amounts remaining in the Deferred Account will be paid to the Participant’s
designated beneficiary in accordance with the distribution choices (e.g., lump
sum or installments) elected by the Participant.  These payments will commence on the first
business day of the calendar year following the Participant’s death.  Amounts unpaid after the death of both the
Participant and the designated beneficiary will be paid in a lump sum to the
executor or administrator of the estate of the last of them to die.  In the event that a Participant had not
properly filed a beneficiary designation with the Company prior to his or her
death or, in the event a beneficiary predeceases the Participant, any unpaid
deferrals will be paid in a lump sum to the Participant’s estate.

 

(b)           No beneficiary hereunder shall have any right to
assign, alienate, pledge, hypothecate, anticipate, or in any way create a lien
upon any part of this Plan, nor shall the interest of any beneficiary or any
distributions due or accruing to such beneficiary be liable in any way for the
debts, defaults, or obligations of such beneficiary, whether such obligations
arise out of contract or tort.

 

X.            Change of Control

 

The following
acceleration and valuation provisions shall apply in the event of a “Change of
Control” or “Potential Change of Control,” as defined in this Section X.

 

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72

 

(a)           In the event that:

 

(i)            a “Change of Control” as defined in paragraph (b) of
this Section X occurs; or

 

(ii)           a “Potential Change of Control” as defined in
paragraph (c) of this Section X occurs and the Committee or the Board
determines that the provisions of this paragraph (a) should be invoked;

 

then, unless otherwise
determined by the Committee or the Board in writing prior to the occurrence of
such Change of Control, the value of all Units credited to a Participant’s
Deferred Account shall be converted to cash based on the “Change of Control
Price” (as defined in paragraph X(d)) and the aggregate amount credited to the
Participant’s Deferred Account under the Plan shall be paid in one lump-sum
payment as soon as practicable following the date the Change of Control or
Potential Change of Control occurs, but in no event more than 90 days after
such date.

 

(b)           For purposes of paragraph (a) of this Section X,
a “Change of Control” means a change in control of a nature that would be
required to be reported in response to Schedule 14A of Regulation 14A
promulgated under the Securities Exchange Act of 1934 (“Exchange Act”) whether
or not the Company is then subject to such reporting requirement, provided
that, without limitation, such a Change of Control shall be deemed to have
occurred if:

 

(i)            any “person” (as defined in Sections 13(d) and 14(d) of
the Exchange Act), other than a Participant in the Plan or group of
Participants in the Plan, is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under
the Exchange Act), directly or indirectly, of securities of the Company
representing 30% or more of the combined voting power of the Company’s then
outstanding securities;

 

(ii)           during any period of two consecutive years, there
shall cease to be a majority of the Board comprised as follows: individuals who
at the beginning of such period constitute the Board and any new director(s) whose
election by the Board or nomination for election by the Company’s stockholders
was approved by a vote of at least of the directors then still in office who
either were directors at the beginning of the period or whose election or
nomination for election was previously so approved;

 

(iii)          the shareholders of the Company approve a merger or 

 

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73

 

consolidation of the
Company with any other company, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) at least 80% of
the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such merger of consolidation; or

 

(iv)          the shareholders of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets.

 

(c)           For purposes of paragraph (a) of this Section X,
a “Potential Change of Control” means the happening of any of the following:

 

(i)            the entering into an agreement by the Company (other
than with a Participant in the Plan or group of Participants in the Plan), the
consummation of which would result in a Change of Control of the Company as
defined in paragraph (b) of this Section X; or

 

(ii)           the acquisition of beneficial ownership, directly or
indirectly, by any entity, person or group (other than a Participant or group
of Participants, the Company or a majority owned subsidiary of the Company, or
any of the Company’s employee benefit plans including its trustee) of
securities of the Company representing 5% 
or more of the combined voting power of the Company’s outstanding
securities and the adoption by the Board of a resolution to the effect that a
Potential Change of Control of the Company has occurred for purposes of the
Plan.

 

(d)           For purposes of this Section X, “Change of
Control Price” means the highest price per share of the Common Stock paid in
any transaction reported on the New York Stock Exchange Composite Tape, or
offered in any transaction related to a Potential or actual Change of Control
of the Company at:

 

(i)            the date the Change of Control occurs;

 

(ii)           the date the Potential Change of Control is determined
to have occurred; or

 

(iii)          such other date as the Committee may determine before
the Change of Control occurs, or before or at the time the Potential Change of
Control is determined to have occurred or the

 

Revised Dec 2009

 

74

 

Committee or the Board
determines that the provisions of paragraph X(a) shall be invoked, or at
any time selected by the Committee during the 60 day period preceding such
date.

 

(e)           Notwithstanding anything to the contrary in the Plan,
in the event of a Change of Control (i) the Plan may not be amended to
reduce the formulas contained in paragraph VII(e) which determine the rate
at which amounts equivalent to interest accrue with respect to cash amounts credited
to a Participant’s Deferred Account, including cash amounts attributable to the
conversion of Units in a Participant’s Deferred Account pursuant to paragraph
X(a), and (ii) the successor Plan Administrator referred to in paragraph
XI(d) shall determine the rates under the interest formulas contained in
paragraph VII(e).

 

XI.           Miscellaneous

 

(a)           The right of a Participant to receive any amount
credited to the Participant’s Deferred Account shall not be transferable or
assignable by the Participant, in whole or in part, either directly or by
operation of law or otherwise, including, but not by way of limitation,
execution, levy, garnishment, attachment, pledge, bankruptcy, or in any other
manner, and no right or interest established herein shall be liable for, or
subject to, any obligation or liability of the Participant, except by will or
by the laws of descent and distribution. 
To the extent that any person acquires a right to receive any amount
credited to a Participant’s Deferred Account hereunder, such right shall be no
greater than that of an unsecured general creditor of the Company.  Except as expressly provided herein, any
person having an interest in any amount credited to a Participant’s Deferred
Account under the Plan shall not be entitled to payment until the date the
amount is due and payable.  No person
shall be entitled to anticipate any payment by assignment, alienation, sale,
pledge, encumbrance or transfer in any form or manner prior to actual or
constructive receipt thereof.

 

(b)           The amounts credited to the Deferred Account shall
constitute an unsecured claim against the general funds of the Company.  The Company shall not be required to reserve
or otherwise set aside funds or shares of Common Stock for the payment of its
obligations hereunder.  The Plan is
unfunded, and the Company will make Plan benefit payments solely from the
general assets of the Company as benefit payments come due from time to time.

 

(c)           Except as herein provided, this Plan shall be binding
upon the parties hereto, their designated beneficiaries, heirs, executors,
administrators, successors (including but not limited to successors resulting
from any corporate merger, purchase, consolidation or otherwise of all or

 

Revised Dec 2009

 

75

 

substantially all of the
business or assets of the Company) or assigns.

 

(d)           In the event of a Change in Control, the Committee
shall interpret the Plan and make all determinations, construe any ambiguity,
supply any omission, and reconcile any inconsistency, deemed necessary or
desirable for the Plan’s implementation. 
The determination of the Committee shall be conclusive.  The Committee may obtain such advice or
assistance as it deems appropriate from persons not serving on the Committee.  The Secretary or other appropriate officer of
the Company shall, in the event of any Change in Control, name as successor
Plan Administrator any person or entity (including, without limitation, a bank
or trust company).  Following a Change in
Control, the successor Plan Administrator shall interpret the Plan and make all
determinations deemed necessary or desirable for the Plan’s
implementation.  The determination of the
successor Plan Administrator shall be conclusive.  The Company shall provide the successor Plan
Administrator with such records and information as are necessary for the proper
administration of the Plan.  The
successor Plan Administrator shall rely on such records and other information
as the successor Plan Administrator shall in its judgment deem necessary or
appropriate in determining the eligibility of a Participant and the amount
payable to a Participant under the Plan.

 

(e)           The Board, upon recommendation of the Committee, may
at any time amend or terminate the Plan provided that no amendment or
termination shall impair the rights of a Participant with respect to amounts
then credited to the Participant’s Deferred Account, except with his or her
consent.

 

(f)            Each Participant will receive a quarterly statement
indicating the amounts credited to the Participant’s Deferred Account as of the
end of the preceding calendar quarter.

 

(g)           If adjustments are made to outstanding shares of
Common Stock as a result of stock dividends, stock splits, recapitalizations,
reorganizations, mergers, consolidations and other changes in the corporate
structure of the Company affecting the Common Stock, an appropriate adjustment
shall also be made in the number and type of Units credited to the Participant’s
Deferred Account to prevent dilution or enlargement of rights. The Committee’s
or Board’s determination as to what adjustments shall be made, and the extent
thereof, shall be final.

 

(h)           This Plan and all elections hereunder shall be
construed in accordance with and governed by the laws of the State of Illinois.

 

(i)            Except where otherwise indicated by the context, any
term used herein connoting gender also shall include both the masculine and
feminine; the 

 

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76

 

plural shall include the
singular, and the singular shall include the plural.

 

(j)            In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

 

(k)           Nothing in the Plan shall be deemed to create any
obligation on the part of the Board to nominate any Nonemployee Director for
reelection by the Company’s shareholders, or rights to any benefits not
specifically provided by the Plan.

 

(l)            The crediting of Units and the payment of cash under
the Plan shall be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies as may be required.

 

(m)          The Company may impose such other restrictions on any
Units credited pursuant to the Plan as it may deem advisable including, without
limitation, restrictions intended to achieve compliance with the Securities Act
of 1933, as amended, Section 16 of the Securities Exchange Act of 1934, as
amended, with the requirements of any stock exchange upon which Common Stock is
listed, and with any blue sky or other securities laws applicable to such
Units.

 

(n)           With respect to any Participants subject to Section 16
of the Securities Exchange Act, transactions under the Plan are intended to
comply with all applicable conditions of Rule 16b-3 or its
successors.  To the extent any provision
of the Plan or action by the Board fails to so comply, it shall be deemed null
and void to the extent permitted by law and deemed advisable by the Board.

 

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77

 

SUPPLEMENT
TO

DEERE &
COMPANY

NONEMPLOYEE
DIRECTOR DEFERRED COMPENSATION PLAN

APPLICABLE
TO AMOUNTS DEFERRED AFTER DECEMBER 31, 2004

 

The following provisions will apply only to amounts
deferred under the Plan after December 31, 2004 and not to amounts deferred
under the Plan that were both earned and vested before January 1, 2005.
Amounts deferred under the Plan prior to January 1, 2005 will be subject
to the terms of the Plan without regard to this supplement. Except to the
extent amended hereby, the terms of the Plan shall continue to apply to amounts
deferred pursuant to the Plan.

 

1.     The following definitions are added to Section III (Definitions).

 

(a)           Change in Control Event.  A change in
ownership, a change in effective control, or a change in the ownership of a
substantial portion of the assets of the Company within the meaning of the
default rules under Section 409A.

 

(l)            Section 409A.  Section 409A
of the Internal Revenue Code and the regulations and other guidance thereunder.

 

(m)          Separation
from Service.  With respect to a Participant, a separation
from service as a director or independent contractor within the meaning of the
default rules of Section 409A.

 

(n)           Unforeseeable Emergency.  A severe
financial hardship to the Participant resulting from (i) an illness or
accident of the Participant or his spouse, dependent (within the meaning of Section 152
of the Internal Revenue Code, but without giving effect to Section 152(b)(1),
(b)(2) and (d)(1)(B) (“Dependent”)) or beneficiary, (ii) the
loss of the Participant’s property due to casualty (including the need to
rebuild a home following damage to a home not otherwise covered by insurance,
for example, not as a result of a natural disaster), (iii) the imminent
foreclosure of or eviction from the Participant’s primary residence, (iv) the
need to pay for medical expenses, including non-refundable deductibles, as well
as for the costs of prescription drug medication, (v) the need to pay for
the funeral expenses of a spouse, Dependent or beneficiary, or (vi) other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant. 
The purchase of a primary residence and the payment of college tuition
shall not constitute Unforeseeable Emergencies.

 

2.     Subsections (a) through (j) of Section III (Definitions) are renumbered as
subsections (b) through (k).

 

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78

 

3.     Section VI(a) (Elective
Deferral) is
restated in its entirety as follows:

 

(a)           Participants may elect to defer a part or all of their
annual Compensation by making an irrevocable deferral election in writing on a
form provided by the Company and delivered to the Company not later than the
last day of the calendar year preceding the calendar year in which the
deferrals are to commence, at which time the deferral election becomes
irrevocable.  Notwithstanding the
preceding sentence, any person who first becomes a Nonemployee Director during
a calendar year, may elect, before or within 30 days after his or her term
begins, to defer a part or all of his or her compensation that would otherwise
be payable to him or her during the remainder of such calendar year and each
succeeding calendar year until such election is modified or terminated as
provided herein, except that no such election shall be available to a
Nonemployee Director if prior to becoming eligible to participate in the Plan,
the Nonemployee Director was eligible to participate in any other arrangement
of the Company or its subsidiaries or affiliates that is an “elective account
balance” plan (as such term is defined for purposes of Section 409A) for
directors or independent contractors, other than a separation pay
arrangement.  A Participant may
discontinue or modify deferrals, or may change his or her investment choices,
for future calendar years by providing an irrevocable written election
delivered to the Company not later than the close of the calendar year
preceding the calendar year in which the changes are to commence.  These changes will become effective on the
first day of the following calendar year.

 

4.     Section VIII (Payment of
Benefits) is
restated in its entirety as follows:

 

(a)           The value of a Participant’s Deferred Account
attributable to amounts deferred in respect of any calendar year (including
related investment returns) shall be payable solely in cash, either in (i) a
lump sum, or (ii) in up to ten equal annual installments, in accordance
with an election made by the Participant by written notice delivered to the
Company prior to the calendar year for which the services to the Company are
rendered.  Such payment or payments shall
be made or commence, as the case may be, on the first business day of the
calendar year following the year of the Participant’s Separation from Service.

 

(b)           Notwithstanding anything else herein to the contrary,
to the extent that a Participant is a “specified employee” within the meaning
of Section 409A(a)(2)(B)(i) of the Internal Revenue Code, as
determined under the Company’s established methodology for determining
specified employees, on the date on which the Participant incurs a Separation
from Service, no distribution upon Separation from Service (including upon
retirement or other termination) may be made before the first business day of
the first calendar quarter that begins at least six (6) months after such
Participant’s date of

 

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79

 

Separation from Service,
or, if earlier, the date of the Participant’s death, and any distribution that
would be made but for application of this provision shall instead be aggregated
with, and paid together with, the first distribution scheduled to be made after
the end of such delay period (or, if earlier, the date of the Participant’s
death).

 

(c)           Any lump sum payment shall be valued as of the end of
the most recent calendar month prior to the payment date.  The amount of each installment payment shall
be determined by dividing the aggregate value credited to the Participant’s Deferred
Account (as of the end of the most recent calendar month prior to the payment
date) by the remaining number of unpaid installments.

 

(d)           The Company shall have the right to deduct from all
payments under this Plan the amount necessary to satisfy any Federal, state, or
local withholding tax requirements.

 

(e)           The Committee, at its sole discretion, may alter the
timing or manner of payment of Deferred Amounts in the event that the
Participant establishes, to the satisfaction of the Board, that there has
occurred an Unforeseeable Emergency.  In
such event, the Committee may:

 

(i)            provide that all or a portion of the amount previously
deferred by the Participant shall be paid immediately in a lump-sum cash
payment; or

 

(ii)           provide that all or a portion of the installments
payable over a period of time shall be paid immediately in a lump sum.

 

It is expressly provided
that, as determined under regulations of the Secretary of the United States
Treasury, the amount distributed shall not be in excess of that amount which is
reasonably necessary to satisfy the Unforeseeable Emergency (which may include
amounts necessary to pay taxes reasonably anticipated as a result of such
distribution(s)), after taking into account the extent to which such hardship
is or may be relieved through reimbursement or compensation by insurance or
otherwise, or by liquidation of the Participant’s assets to the extent
liquidation of such assets would not cause severe financial hardship, or by
cessation of deferrals under the Plan. 
If a Participant requests and receives a distribution on account of
Unforeseeable Emergency, the Participant’s deferrals under the Plan shall cease
and his election under the Plan shall be canceled.  Any new deferral election following
cancellation of a prior deferral election due to Unforeseeable Emergency shall
be subject to the timing requirements of Section VI and Section 409A.

 

The Committee’s decision
in passing on the occurrence of an 

 

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80

 

Unforeseeable Emergency
for the Participant and the manner in which, if at all, the payment of Deferred
Amounts shall be altered or modified shall be final, conclusive and not subject
to appeal.

 

(f)            Notwithstanding anything to the contrary herein, this
Plan does not permit the acceleration of the time or schedule of any
distribution under the Plan, except as would not result in the imposition on
any person of additional taxes, penalties or interest under Section 409A.

 

5.     Subsection (a) of Section IX
(Death of Participant) is restated in its entirety as
follows:

 

(a)       In the event of the death of a Participant, any
amounts remaining in the Deferred Account will be paid to the Participant’s
designated beneficiary in a single lump sum on the first business day of the
calendar year following the Participant’s death.  In the event that a Participant had not
properly filed a beneficiary designation with the Company prior to his or her
death, or if the beneficiary dies prior to the payment date set forth in the preceding
sentence, the balance of the Participant’s Deferred Account will be paid to his
or her estate on such payment date.

 

6.     Section X (Change in Control) is restated in its entirety as follows:

 

The following
acceleration and valuation provisions shall apply in the event of a Change in
Control Event.

 

(a)       In the event that a Change in Control Event occurs,
then the value of all Units credited to a Participant’s Deferred Account shall
be converted to cash, determined by multiplying the number of Units credited to
the Participant’s Deferred Account on the date of the Change in Control Event
by the “Change in Control Price” (as defined in paragraph X(b)), and the
aggregate amount credited to the Participant’s Deferred Account under the Plan
shall be paid in one lump-sum payment as soon as practicable following the date
the Change in Control Event occurs, but in no event more than 90 days after
such date.

 

(b)       For purposes of this Section X, “Change in
Control Price” means the closing selling price of a share of Common Stock on
the date the Change in Control Event occurs, or if there are no sales on the
date the Change in Control Event occurs, the closing selling price of a share
of Common Stock on the trading day immediately preceding the date the Change in
Control Event occurs, in either case as reported on the composite tape for
securities listed on the NYSE, or such other national securities exchange as
may be designated by the Committee.

 

Revised Dec 2009

 

81

 

(c)       Notwithstanding anything to the contrary in the Plan,
in the event of a Change in Control Event (i) the Plan may not be amended
to reduce the formulas contained in paragraph VII(e), which determine the rate
at which amounts equivalent to interest accrue with respect to cash amounts
credited to a Participant’s Deferred Account, including cash amounts
attributable to the conversion of Units in a Participant’s Deferred Account pursuant
to paragraph X(a), and (ii) the successor Plan Administrator referred to
in paragraph XI(d) shall determine the rates under the interest formulas
contained in paragraph VII(e).

 

7.     Subsection XI(b) (Miscellaneous) is amended by adding the following after
the initial  sentence thereof:

 

“No Participant or
beneficiary shall have any interest whatsoever in any specific asset of the
Company.

 

8.     Subsection XI(d) (Miscellaneous) is amended by replacing each occurrence
of the term “Change in Control” with “Change in Control Event”.

 

9.     Subsection XI(e) (Miscellaneous) is amended by adding thereto:

 

“If the Plan is
terminated, the balance of the Participant’s Deferred Account shall be paid in
accordance with normal time and form of payment specified hereunder, provided
that the Committee, in its discretion and in full and complete settlement of
the Company’s obligations under this Plan, may cause the Company to distribute
the full amount of a Participant’s Deferred Account to the Participant in a
single lump sum to the extent that such distribution may be effected in a
manner that will not result in the imposition on any person of additional
taxes, penalties or interest under Section 409A.

 

Notwithstanding any
provision in this Plan to the contrary, the Board, the Committee or the Vice
President of Human Resources of the Company shall have the unilateral right to
amend or modify the Plan to the extent the Board, the Committee or the Vice
President of Human Resources of the Company deems such action to be necessary
or advisable to avoid the imposition on any person of adverse or unintended tax
consequences under Section 409A, including recognition of income in
respect of any benefits under this Plan before such benefits are paid or the
imposition of additional taxes, penalties or interest.  Any determinations made by the Board, the Committee
or the Vice President of Human Resources of the Company in this regard shall be
final, conclusive and binding on all persons.”

 

Revised Dec 2009

 

82Exhibit 10.1

 

BUCKEYE PARTNERS, L.P.

UNIT DEFERRAL AND INCENTIVE PLAN

 

Effective December 16, 2009

 

 

BUCKEYE PARTNERS, L.P.

UNIT DEFERRAL AND INCENTIVE PLAN

 

ARTICLE I

ESTABLISHMENT AND PURPOSE

 

Buckeye Partners, L.P., a Delaware limited
partnership, hereby establishes the Buckeye Partners, L.P. Unit Deferral and
Incentive Plan, effective as of December 16, 2009.  The Plan is intended to provide a select
group of management and highly compensated employees of the Company and its
Affiliates with the opportunity to exchange annual bonus compensation for
Deferral and Matching Units that are all subject to a substantial, additional
vesting requirement.  The purposes of the
Plan are to attract and retain selected officers and key employees of the
Company and its Affiliates and to enable such individuals to acquire or
increase ownership interests in the Partnership.  The Plan is intended to provide benefits that
are excluded from the definition of “deferred compensation” under Code section
409A pursuant to the exclusion for certain short-term deferral amounts
applicable thereunder.  Capitalized
terms, unless otherwise defined herein, shall have the meanings provided in Article II.

 

ARTICLE II

DEFINITIONS

 

Whenever used in this Plan, the following terms will
have the respective meanings set forth below, unless the context clearly
indicates otherwise:

 

“Administrator”
shall mean the Committee.

 

“Affiliate” will have the meaning ascribed to such term in Rule 12b-2
of the General Rules under the Exchange Act.  Notwithstanding the foregoing, Buckeye Pipe
Line Services Company shall be considered an Affiliate of the Company and any
reference to an Affiliate in this Plan shall include an Affiliate of the
Company or the Partnership, as applicable.

 

“Annual Bonus” shall mean any amounts payable to the Participant
under the Buckeye Partners, L.P. Annual Incentive Compensation Plan or any
similar incentive plan.

 

“Beneficiary” or “Beneficiaries” means the beneficiary or beneficiaries
last designated in writing by a Participant in accordance with procedures
established by the Administrator to receive distributions under the Plan
following the Participant’s death.

 

“Board” means the Company’s Board of Directors as constituted
from time to time.

 

“Cause” shall mean, except to the extent specified otherwise
by the Administrator, a finding by the Administrator that the Participant (i) has
materially breached his or her employment, severance or service contract with
the Company, Partnership or Affiliate, (ii) has engaged in disloyalty to
the Company, Partnership or Affiliate, including, without limitation, 

 

1

 

fraud, embezzlement, theft, commission of a felony or proven
dishonesty, (iii) has disclosed trade secrets or confidential information
of the Company, Partnership or Affiliate to persons not entitled to receive
such information, or (iv) has breached any written non-competition,
non-solicitation, invention assignment or confidentiality agreement between the
Participant and the Company, Partnership or Affiliate.

 

“Change of Control”
shall mean the occurrence of one or more of the following transactions:

 

(a)                                  the sale or disposal by the Partnership
of all or substantially all of its assets; or

 

(b)                                 the merger or consolidation of the Partnership
with or into another partnership, corporation, or other entity, other than a
merger or consolidation in which the Unit holders immediately prior to such
transaction retain at least a fifty percent (50%) equity interest in the
surviving entity; or

 

(c)                                  the occurrence of one or more of the
following events:

 

(i)                                the Company ceases to be the sole general
partner of the Partnership;

 

(ii)                             Buckeye GP
Holdings L.P. ceases
to own and control, directly or indirectly, 100% of the outstanding equity
interests of the Company;

 

(iii)                          MainLine Management LLC ceases to be the
sole general partner of Buckeye GP Holdings L.P.; or

 

(iv)                         BGH GP Holdings, LLC ceases to own and
control, directly or indirectly, 100% of the outstanding equity interests of
MainLine Management LLC;

 

provided, however, that none of the events described in
this clause (c) shall constitute a Change of Control if, following such
event, either ArcLight Capital Partners, LLC and its affiliates (“ArcLight”) or
Kelso & Company and its affiliates (“Kelso”) possess, or both ArcLight
and Kelso collectively possess, directly or indirectly, the power to direct or
cause the direction of the management and policies of the Partnership, whether
through the ownership of voting securities, by contract, or otherwise; or

 

(d)                                 the failure of ArcLight and Kelso
collectively to possess, directly or indirectly, the power to direct or cause
the direction of the management and policies of the Partnership, whether
through the ownership of voting securities, by contract, or otherwise.

 

“Change of Control Period”
shall mean the period commencing on the date of a Change of Control and ending
eighteen (18) calendar months following a Change of Control.

 

“Code” means the
Internal Revenue Code of 1986, as it may be amended from time to time.

 

2

 

“Committee”
means the Compensation Committee of the Board, or such other committee as
determined by the Board.

 

“Company” means
Buckeye GP LLC, a Delaware limited liability company, and any successor
thereto.

 

“Deferral Amount”
or “Deferral” shall mean that portion of a
Participant’s Annual Bonus that is deferred in the form of Deferral Units that
a Participant irrevocably elects to have, and is deferred, for any one Plan
Year.

 

“Deferral Election” shall mean an Eligible Employee’s
election to defer a portion of his or her Annual Bonus in the form of Deferral
Units under the Plan on the form and in the manner prescribed by the
Administrator and required by the terms of the Plan.

 

“Deferral Unit” means a unit of measurement, which is deemed solely
for bookkeeping purposes under this Plan to be equivalent to one Unit.

 

“Disability” or “Disabled” means a Participant becoming disabled within the
meaning of section 22(e)(3) of the Code, a long-term disability as
determined under the long-term disability plan of the Company, the Partnership
or an Affiliate, which is applicable to the Participant, or as otherwise
determined by the Administrator.

 

“Distribution Equivalent
Rights” means an amount determined by multiplying the number of
Deferral Units and Matching Units credited to a Participant’s Unit Account,
subject to adjustment under Section 8.2, by the per-Unit cash
distribution, or the per-Unit fair market value (as determined by the
Administrator) of any distribution in consideration other than cash, paid by
the Partnership on its Units.

 

“Eligible Employee” shall mean any Employee who, for a relevant
Plan Year, has a base salary equal to or in excess of $150,000 (or such other
amount set from time to time by the Administrator) and who is selected by the
Administrator to participate in the Plan in the Administrator’s sole and
absolute discretion.

 

“Employee” means
a regular full-time salaried employee of the Company or an Affiliate who
performs services directly or indirectly for the benefit of the Partnership.

 

“Employer(s)”
shall mean the Company and any Affiliate (now in existence or hereafter formed
or acquired) that have been selected by the Administrator to participate in the
Plan.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Fair Market Value”
of a Unit means the average, rounded to one cent ($0.01), of the highest and
lowest sales prices thereof on the New York Stock Exchange on the day on which
Fair Market Value is being determined, as reported on the Composite Tape for
transactions on the New York Stock Exchange. In the event that there are no
Unit transactions on the New York Stock Exchange on such day, the Fair Market
Value will be determined as of the immediately preceding day on which there
were Unit transactions on that exchange. 
If a Unit is not publicly 

 

3

 

traded or, if publicly traded, is not subject to reported transactions
as set forth above, the Fair Market Value per share shall be as determined by
the Administrator through any reasonable valuation method.

 

“Good Reason”
shall mean the occurrence, without the Participant’s express written consent,
of any of the following events during the Change of Control Period:

 

(a)                                  a substantial adverse change in the
Participant’s duties or responsibilities from those in effect on the date
immediately preceding the first day of the Change of Control Period;

 

(b)                                 a material reduction in Participant’s
annual rate of Base Salary or annual bonus opportunity as in effect immediately
prior to commencement of a Change of Control Period; or

 

(c)                                  requiring Participant to be based at a
location more than 100 miles from the Participant’s primary work location as it
existed on the date immediately preceding the first day of the Change of
Control Period, except for required travel substantially consistent with the
Participant’s present business obligations.

 

Notwithstanding the foregoing, Participant shall not
have Good Reason for termination unless (i) Participant gives written
notice of termination for Good Reason within 30 days after the event giving
rise to Good Reason occurs, (ii) the Company does not cure the action or
failure to act that constitutes the grounds for Good Reason, as set forth in
Participant’s notice of termination, within 30 days after the date on which
Participant gives written notice of termination and (iii) Participant
actually resigns within 60 days following the expiration of the Company’s
30-day cure period.

 

“LTIP” shall
mean the Buckeye Partners, L.P. 2009 Long-Term Incentive Plan, including any
amendments or modifications thereto.

 

“Matching Unit”
means a notional Unit credited to a Participant’s Unit Account that is subject
to service-based vesting restrictions.

 

“Participant” shall mean an Eligible Employee who has commenced
participation in the Plan and whose Unit Account has not been fully
distributed.

 

“Partnership”
means Buckeye Partners, L.P., a Delaware limited partnership or any successor
thereto.

 

“Plan” shall mean the Buckeye Partners, L.P. Unit Deferral
and Incentive Plan set forth herein, in effect as of December 16, 2009, as
amended from time to time.

 

“Plan Year” shall mean a calendar year.

 

“Unit”  means a unit
representing a limited partnership interest in the Partnership.

 

4

 

“Unit Account”
shall mean the unfunded bookkeeping account established and maintained by the
Administrator for each Participant that is credited with Deferral Units and
Matching Units.

 

“Vesting Date” shall mean the date a Participant’s Deferral Units
and Vesting Units become vested in accordance with Section 5.7 of the
Plan.

 

ARTICLE III

ADMINISTRATION

 

The Administrator shall have sole discretionary
responsibility for the operation, interpretation, and administration of the
Plan.  Any action taken on any matter
within the discretion of the Administrator shall be final, conclusive, and
binding on all parties.  In order to
discharge its duties hereunder, the Administrator shall have the power and
authority to remedy any errors, inconsistencies or omissions, to resolve any
ambiguities, to adopt, interpret, alter, amend or revoke rules necessary
to administer the Plan, to delegate its duties and to employ such outside
professionals as may be required for prudent administration of the Plan.  The records of the Administrator with respect
to the Plan shall be conclusive on all Participants, all Beneficiaries, and all
other persons whomsoever.  The
Administrator shall also have the right within the scope of his authority (if a
designee of the Company) to enter into agreements on behalf of the Company
necessary to administer the Plan.  Any
Participant who is acting as Administrator shall not be entitled to vote or act
on any matter relating solely to himself or herself.

 

ARTICLE IV

ELIGIBILITY AND PARTICIPATION

 

4.1.                            Eligibility.  Only Eligible
Employees may become Participants.  Prior
to each Plan Year, each Eligible Employee shall be notified as to eligibility
to defer a portion of his or her Annual Bonus for that Plan Year in the form of
Deferral Units.  For the avoidance of
doubt, eligibility to defer Annual Bonus for one Plan Year shall not imply
eligibility to defer Annual Bonus for a subsequent Plan Year.

 

4.2.                            Participation. 
An Eligible
Employee shall become a Participant by completing an election form and
delivering it to the Company as specified in the Plan.  If the Administrator determines in good faith
that a Participant is no longer an Eligible Employee, the Participant shall
cease active participation in the Plan immediately and the terms of the Plan
shall continue to govern the Participant’s Unit Account until his or her Unit
Account has been paid in full.

 

ARTICLE
V

DEFERRAL UNITS AND MATCHING UNITS

 

5.1.                            Deferral Elections.  Each Plan Year
an Eligible Employee may, in accordance with procedures established by the
Administrator in its sole discretion, elect to defer up to 50% of his or her
Annual Bonus for that Plan Year to the Participant’s Unit Account in the form
of Deferral Units.  Deferral Elections
are effective on a Plan Year basis, and become irrevocable no 

 

5

 

later than the date specified by the Administrator but
in any event before the beginning of the Plan Year that the Employer would
otherwise have paid the Annual Bonus to the Participant but for the Participant’s
Deferral Election.  For the avoidance of
doubt, Deferral Elections generally must be completed on or before December 31
of the Plan Year prior to the scheduled payment date for the Annual Bonus.  For example, a Deferral Election with respect
to an Annual Bonus amount payable for the 2010 Plan Year (otherwise payable in
2011) generally would need to be completed no later than December 31,
2010.   A Participant’s Deferral Election
will become effective only if the forms required by the Administrator have been
properly completed and signed by the Participant, timely delivered to the
Administrator, and accepted by the Administrator.  A Participant who fails to file a Deferral
Election before the required date will be treated as having elected not to
defer any amounts for the Plan Year. 
Deferrals are subject to the vesting and forfeiture conditions of
Sections 5.7 and 5.8.

 

5.2.                            Deferral Limits. 
The Administrator may change the maximum deferral percentage and
establish minimum deferral percentages from time to time in its sole
discretion.  Any such limits shall be
communicated by the Administrator prior to the commencement of any election
period.

 

5.3.                            Deferral Units. 
The Administrator shall credit a Participant’s Unit Account with
Deferral Units equal to the portion of his or her Annual Bonus that the
Participant elected to defer.  The number
of Deferral Units shall be determined by dividing the amount of Annual Bonus
deferred by the Participant to his Unit Account by the Fair Market Value of a
Unit on the date that the Employer would otherwise have paid the Annual Bonus
to the Participant but for the Participant’s Deferral Election or such other
date as determined by the Administrator in accordance with procedures governing
grants under the LTIP.

 

5.4.                            Matching Units. 
An Eligible Employee who elects to defer a portion of his or her Annual
Bonus under the Plan shall be entitled to receive a Matching Unit for each
Deferral Unit that is credited to a Participant’s Unit Account during a Plan
Year.

 

5.5.                            Distribution Equivalent
Rights.  Participants shall be entitled to
Distribution Equivalent Rights with respect to the Deferral Units and Matching
Units allocated to a Participant’s Unit Account as if each such Deferral Unit
and Matching Unit had been a Unit. 
Except as otherwise determined by the Administrator, Distribution
Equivalent Rights shall be paid as soon as practicable following the payment of
a distribution by the Partnership on its Units. 
A Participant will receive the aggregate amount of the Participant’s
Distribution Equivalent Rights in cash or Units as determined by the
Administrator in its discretion.

 

5.6.                            Unit Accounts.

 

(a)                                  Establishment of Unit Account. 
The Administrator will establish a Unit Account for each Participant who
has elected to defer a portion of his or her Annual Bonus in Deferral
Units.  Unit Accounts shall be credited
as appropriate for Deferral Units and Matching Units, and debited for
distributions from the Unit Account.

 

6

 

(b)                                 Timing of Credits. 
The Administrator shall credit Deferrals to the Participant’s Unit
Account not later than the end of the calendar year that the Employer would
otherwise have paid the Annual Bonus to the Participant but for the Participant’s
Deferral Election.  The Administrator
shall credit Matching Units to a Participant’s Unit Account at such times and
in such amounts as the Administrator determines.

 

5.7.                            Vesting. 
Except as otherwise specified by the Administrator in its discretion, a
Participant shall become vested as follows:

 

(a)                                  General. 
A Participant shall become 100% vested in Deferral Units and Matching
Units credited to his or her Unit Account during a Plan Year on the first day
of the Plan Year that is three years after the Plan Year that the Deferral
Units and Matching Units are credited to his or her Unit Account provided that
the Participant is continuously employed by, or continuously provides services
to, the Company, Partnership or Affiliate through that date.  For example, Deferral Units and Matching
Units that are credited to a Participant’s Unit Account in 2010 will vest on January 1,
2013 provided that the Participant is continuously employed by, or continuously
provides services to, the Company, Partnership or Affiliate from the date that
such Deferral Units and Matching Units are credited to his or her Unit Account
until January 1, 2013.

 

(b)                                 Termination without Cause. 
If a Participant’s employment is terminated by the Company, Partnership
or Affiliate without Cause, such Participant’s unvested Deferral Units will
immediately vest in full and unvested Matching Units will vest on a prorated
basis, based on the portion of the vesting period during which the Participant
was employed by the Company, Partnership or Affiliate.  For purposes of determining the number of
Matching Units that become vested pursuant to this section, the vesting period
commences on the January 1 of the Plan Year that the Company would
otherwise have paid the Annual Bonus to the Participant but for the Participant’s
Deferral Election and ends three years later.

 

(c)                                  Disability. 
If a Participant is determined to be Disabled, such Participant’s
unvested Deferral Units and Matching Units will immediately vest in full.

 

(d)                                 Death. 
In the event of the death of a Participant while employed by the
Company, Partnership or Affiliate, such Participant’s unvested Deferral units
and Matching Units will immediately vest in full.

 

(e)                                  Change of Control. 
In the event a Change of Control occurs while the Participant is employed
by, or providing services to the Company, Partnership or Affiliate, and (i) the
Participant is terminated without Cause during the Change of Control Period or (ii) the
Participant resigns for Good Reason during the Change of Control Period, such
Participant’s unvested Deferral Units and Matching Units will immediately vest
in full.

 

5.8.                            Forfeiture.

 

(a)                                  If a Participant’s employment is
terminated for Cause or voluntarily on the part of the Participant, any and all
unvested Deferral Units and Matching Units shall be forfeited 

 

7

 

as of the date the Participant ceases to be employed
by, or provide service to the Company, Partnership or Affiliate.

 

(b)                                 If a Participant’s employment is
terminated without Cause, all unvested Matching Units that do not vest in
accordance with Section 5.7(b) shall be forfeited as of the date the
Participant ceases to be employed by, or provide service to the Company,
Partnership or Affiliate.

 

5.9.                            Distribution. 
Vested Deferral Units and Matching Units shall be distributed to the
Participant (or in the case of a deceased Participant, the Participant’s
Beneficiary) in a single lump sum payment as soon as reasonably practicable
following the Vesting Date and in no event later than the later of the last day
of the calendar year in which the Vesting Date occurs or two and one-half
months following the Vesting Date. 
Vested Deferral Units and Matching Units will be settled in Units
reserved under the LTIP; provided, however, that the Administrator may in its
sole discretion specify prior to an affected Deferral Election that with
respect to particular Participants or Deferral Units settlement will or may be
made by a cash payment in lieu of Units. 
The amount of such cash payment shall equal the most recent Fair Market
Value of a Unit as of the Vesting Date, multiplied by the number of Deferral
Units and Matching Units to be paid in such manner.  Any distribution that complies with this
section shall be deemed for all purposes to comply with the Plan requirements
regarding the time and form of distributions.

 

ARTICLE VI

CLAIMS PROCEDURES

 

6.1.                            Exclusive Procedures.  This article
sets forth the exclusive procedures by which claims under the Plan are to be
made.  No legal action may be brought by
any person claiming entitlement to payment under the Plan until after the
claims procedures set forth herein have been exhausted.

 

6.2.                            Claim.  Any person who
believes that he or she is being denied a benefit to which he or she is
entitled under the Plan (hereafter referred to as a “Claimant”) may file a
written request for such benefit with the Administrator setting forth the basis
for the claim.

 

6.3.                            Determination;
Notification.  Except as provided herein, within sixty (60)
days of receiving the claim, the Administrator shall determine whether to grant
or deny the claim and notify the Claimant in writing of the decision.  If the claim is granted, the Administrator
shall commence payment in accordance with the provisions of Section 5.9.  If the claim is denied, in whole or in part,
the Administrator’s notice to the Claimant shall:

 

(a)                                  explain the specific reasons for the
denial;

 

(b)                                 refer to the specific Plan provisions on
which the denial is based;

 

(c)                                  describe any additional material or information
necessary for the Claimant to perfect the claim (if perfection of the claim is
possible) and an explanation of why such material or information is necessary;
and

 

8

 

(d)                                 explain the steps and time limit for
requesting review of the claim.

 

If the Administrator
determines that an extension of time for processing is required, written notice
of the extension shall be furnished to the Claimant prior to termination of the
original 60-day period.  In no event
shall such extension exceed sixty (60) days from the end of such initial
period.

 

6.4.                            Claim
Review.  A Claimant (or his authorized representative)
shall have sixty (60) days from the date the Administrator’s notice is mailed
in which to file an appeal of the denial of his claim.  Any such appeal must: (a) be in writing;
(b) request review of the Claimant’s claim; (c) set forth each ground
on which the request for review is based and the facts in support thereof; and (d) provide
any other comments the Claimant believes pertinent and helpful to his
application.  The Claimant (or the
Claimant’s duly authorized representative) may (i) request access to, and
copies of, all documents, records, and other information relevant to the claim,
which shall be provided to Claimant free of charge and (ii) submit written
comments or other documents.  Any
Claimant who fails to timely file such a written appeal shall be estopped and
barred from any further challenge to the Administrator’s determination to deny
his claim.

 

6.5.                            Review of
Determination.  The Administrator shall
complete its review and decide the appeal within sixty (60) days after the
written request for review was received by the Administrator (or within
one-hundred twenty (120) days if special circumstances require additional time,
and if written notice of such extension and circumstances is given to the
Claimant within the initial 60-day period). 
In conducting its review, the Administrator may, in its sole discretion,
require the Claimant to submit such additional documents or other evidence as
the Administrator deems necessary or appropriate.  The Administrator’s decision shall be final
and binding on all persons with respect to the Claimant’s appeal.  The Administrator shall notify the Claimant
in writing that the claim has been allowed in full or that the claim has been
denied, in whole or in part, and any denial notice must set forth:

 

(a)                                  Specific reasons for the decision;

 

(b)                                 Specific reference(s) to the
pertinent Plan provisions upon which the decision was based;

 

(c)                                  A statement that Claimant is entitled to
reasonable access to, and copies of, all documents, records or other
information relevant to the claim upon request and free of charge; and

 

(d)                                 Such other matters as the Administrator
deems relevant.

 

6.6.                            Reimbursement of Costs.  If the
Company, an Affiliate, the Plan, a Claimant, or a successor in interest to any
of the foregoing brings legal action to enforce any of the provisions of this
Plan, the prevailing party in such legal action shall be reimbursed by the
other party for the prevailing party’s costs, including, without limitation,
reasonable fees of attorneys, accountants and similar advisors and expert
witnesses.

 

9

 

ARTICLE VII

AMENDMENT AND TERMINATION

 

The Plan may be amended, suspended, or terminated at
any time (in whole or in part) by action of the Board, with or without prior
notice; provided, however, that no such amendment, suspension or termination
shall reduce any Participant’s Unit Account balances without the written
consent of the affected Participant.  In
the event of any suspension or termination of the Plan (or any portion
thereof), Participants’ Unit Accounts shall continue to vest and be distributed
in accordance with the Plan.

 

ARTICLE VIII

MISCELLANEOUS

 

8.1.                            FICA and Other Taxes. To the extent required by the law in
effect at the time benefits are distributed, the Participant’s Employer shall
withhold from any benefits to a Participant any employment or other taxes required
to be withheld by the federal government or any state or local government in
amounts and in a manner to be determined in the sole discretion of the
Employer.

 

8.2.                            Adjustment of Number and
Price of Units, Etc.  If there is any change in the
number or kind of Units outstanding (i) by reason of a Unit distribution,
spinoff, recapitalization, Unit split, or combination or exchange of Units, (ii) by
reason of a merger, reorganization, consolidation or reclassification, or (iii) by
reason of any other extraordinary or unusual event affecting the outstanding
Units as a class without the Company’s receipt of consideration, or if the
value of outstanding Units is substantially reduced as result of a spinoff or
the Company’s payment of any extraordinary distribution, the kind and number of
Units covered by Deferral Units and Matching Units to be issued or issuable
under the LTIP, and the applicable market value of outstanding Deferral Units
and Matching Units shall be required to be equitably adjusted by the Administrator
to reflect any increase or decrease in the number of, or change in the kind or
value of, issued Units to preclude, to the extent practicable, the enlargement
or dilution of rights and benefits under the LTIP and such outstanding Deferral
Units and Matching Units; provided, however, than any fractional Units
resulting from such adjustment shall be eliminated.  Any adjustments determined by the
Administrator shall be final, binding and conclusive.

 

8.3.                            Unsecured General Creditor.  Participants
and their Beneficiaries, heirs, successors and assigns shall have no legal or
equitable rights, interests or claims in any property or assets of an
Employer.  An Employer’s obligation under
the Plan shall be merely that of an unfunded and unsecured promise to pay money
in the future.

 

8.4.                            Unfunded Status of Plan. 
The Plan is intended to constitute an “unfunded” plan.  Benefits payable hereunder shall be payable
out of the general assets of the Company, and no segregation of any assets
whatsoever for such benefits shall be made. 
With respect to any payments not yet made to a Participant, nothing
contained herein shall give any such Participant any rights to assets that are
greater than those of a general creditor of the Company.

 

10

 

8.5.                            Designation of Beneficiary. 
Each Participant may designate a Beneficiary or Beneficiaries (which
Beneficiary may be an entity other than a natural person) to receive any
payments which may be made following the Participant’s death.  Such designation may be changed or canceled
at any time without the consent of any such Beneficiary.  Any such designation, change or cancellation
must be made in a form approved by the Administrator and shall not be effective
unless and until it is filed with the Administrator during the Participant’s
lifetime.  If no Beneficiary has been
named, or the designated Beneficiary or Beneficiaries shall have predeceased
the Participant, the Beneficiary shall be the Participant’s estate.  If a Participant designates more than one
Beneficiary, the interests of such Beneficiaries shall be paid in equal
percentages, unless the Participant has specifically designated otherwise.

 

8.6.                            Nontransferability.  The right of a
Participant, Beneficiary, or other person to any payment under this Plan shall
not be assigned, alienated, transferred, pledged or encumbered.

 

8.7.                            No Rights to Employment. 
This Plan does not confer nor shall it be construed as creating an
express or implied contract of employment between any Participant and the
Company, Partnership, or Affiliate or other party. Nothing in the Plan shall
interfere with or limit in any way the right of the Company, Partnership, or
Affiliate to terminate any Participant’s employment at any time, nor confer
upon any Employee any right to continue in the employment of the Company,
Partnership, or Affiliate.

 

8.8.                            Employer’s Liability.  An Employer’s
liability for the distribution of a Participant’s Unit Account shall be defined
only by the Plan.  An Employer shall have
no obligation to a Participant except as expressly provided in the Plan.

 

8.9.                            Payments to Minors and
Incompetents.  If any person entitled to any payment under
this Plan is, in the judgment of the Administrator, incapable of receiving such
payment because of minority, illness, infirmity or other incapacity, the
Administrator may pay the amount due such person to a duly appointed legal
representative, if there is one, or, if none, to the spouse, children,
dependents, or such other persons with whom the person entitled to payment
resides.  Any such payment shall be a
complete discharge of the liability of the Company, Partnership, Affiliate and
the Plan with respect to such payment.

 

8.10.                     Furnishing Information.  A Participant
or his Beneficiary will cooperate with the Administrator by furnishing any and
all information requested by the Administrator and take such other actions as
may be requested in order to facilitate the administration of the Plan and the
distributions hereunder, including but not limited to taking such physical
examinations as the Administrator may deem necessary.

 

8.11.                     Notice.  Any notice or
filing required or permitted under the Plan shall be sufficient if in writing
and if (a) hand-delivered or sent by telecopy; (b) sent by registered
or certified mail; or (c) sent by nationally-recognized overnight
courier.  Such notice shall be deemed
given as of (i) the date of delivery if hand-delivered or sent by
telecopy; (ii) as of the date shown on the postmark on the receipt for
registration or certification, if delivery is by mail; or (iii) on the
first business day after dispatch, if sent by nationally-recognized overnight
courier.  In the case of the Company,
mailed or couriered notices will be addressed to its corporate 

 

11

 

headquarters, and all notices will be directed to the
attention of its General Counsel.  In the
case of a Participant, mailed or couriered notice to a Participant or
Beneficiary shall be directed to the individual’s last known address in the
Employer’s records.

 

8.12.                     Code Section 409A.  All Plan
benefits are intended to constitute short-term deferrals within the meaning of
Code section 409A and shall be excepted from the applicable requirements of
Code section 409A in accordance with the regulations issued thereunder, and the
Plan shall be maintained, interpreted and administered accordingly.
Notwithstanding the foregoing, to the extent that deferred compensation subject
to the requirements of Code section 409A becomes payable under this Plan, all
provisions of this Plan shall be construed and interpreted to comply with Code
section 409A and applicable regulations thereunder and if necessary, any
provision shall be held null and void to the extent such provision (or part thereof)
fails to comply with Code section 409A or regulations thereunder.  In addition, to the extent that deferred
compensation subject to the requirements of Code section 409A becomes payable
under this Plan to a “specified employee” (within the meaning of Code section
409A) on account of “separation from service” (within the meaning of Code
section 409A), any such payments shall be delayed by six months to the extent
necessary to comply with the requirements of Code section 409A, but not beyond
the death of the Participant.  Nothing
herein shall be construed as a guarantee of any particular tax treatment to a
Participant.

 

8.13.                     Successors.  This Plan
shall be binding upon and inure to the benefit of the Partnership, the Company,
and their successors and assigns and the Participant and his or her heirs,
executors, administrators and legal representatives.

 

8.14.                     Gender and Number.  Except when
otherwise indicated by context, words in the masculine gender shall include the
feminine and neuter genders, the singular shall include the plural, and the
plural shall include the singular.

 

8.15.                     Headings. 
The
headings contained in this Plan are for convenience only and will not control
or affect the meaning or construction of any of the terms or provisions of this
Plan.

 

8.16.                     Invalid or Unenforceable
Provisions.  If any provision of this Plan shall be held
invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provisions hereof and the Administrator may elect in its sole
discretion to construe such invalid or unenforceable provisions in a manner
that conforms to applicable law or as if such provisions, to the extent invalid
or unenforceable, had not been included.

 

8.17.                     Applicable Law.  The Plan shall
be construed and administered in accordance with and governed by the laws of
the State of Delaware, other than its laws respecting choice of law.

 

8.18.                     Entire Agreement.  This Plan
constitutes the entire understanding and agreement with respect to the subject
matter contained herein, and there are no agreements, understandings,
restrictions, representations or warranties among any Participant and the
Partnership, Company or Affiliates other than those set forth or provided for
herein.

 

12

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