Document:

Exhibit 10.29

 

 

INTERNATIONAL TRANSMISSION COMPANY

 

EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN

 

 

 

Effective March 1, 2003

 

 

TABLE
OF CONTENTS

 

	
  PREAMBLE

  	
   

  
	
   

  	
   

  
	
  SECTION 1. TITLE,
  PURPOSE AND EFFECTIVE DATE

  	
   

  
	
  1.01.

  	
  Title

  	
   

  
	
  1.02.

  	
  Purpose

  	
   

  
	
  1.03.

  	
  Effective
  Date

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.  DEFINITIONS

  	
   

  
	
  2.01.

  	
  Account

  	
   

  
	
  2.02.

  	
  Affiliate

  	
   

  
	
  2.03.

  	
  Anniversary
  Year

  	
   

  
	
  2.04.

  	
  Annual
  Cash Bonus

  	
   

  
	
  2.05.

  	
  Base
  Salary

  	
   

  
	
  2.06.

  	
  Beneficiary

  	
   

  
	
  2.07.

  	
  Board

  	
   

  
	
  2.08.

  	
  Code

  	
   

  
	
  2.09.

  	
  Committee

  	
   

  
	
  2.10.

  	
  Company

  	
   

  
	
  2.11.

  	
  Company’s
  Accountants

  	
   

  
	
  2.12.

  	
  Company’s
  Actuaries

  	
   

  
	
  2.13.

  	
  Compensation

  	
   

  
	
  2.14.

  	
  Compensation
  Credit

  	
   

  
	
  2.15.

  	
  ERISA

  	
   

  
	
  2.16.

  	
  FICA

  	
   

  
	
  2.17.

  	
  Group

  	
   

  
	
  2.18.

  	
  Investment
  Credit

  	
   

  
	
  2.19.

  	
  ITC

  	
   

  
	
  2.20.

  	
  ITH LP

  	
   

  
	
  2.21.

  	
  Ironhill

  	
   

  
	
  2.22.

  	
  Limited
  Partner Group

  	
   

  
	
  2.23.

  	
  Participant

  	
   

  
	
  2.24.

  	
  Plan

  	
   

  
	
  2.25.

  	
  Plan Year

  	
   

  
	
  2.26.

  	
  Person

  	
   

  
	
  2.27.

  	
  Spouse

  	
   

  
	
  2.28.

  	
  Subsidiary

  	
   

  
	
  2.29.

  	
  Trimaran
  Capital Partners

  	
   

  
	
  2.30.

  	
  Vested
  Account

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.  PARTICIPATION

  	
   

  
	
  3.01.

  	
  Designation
  by Committee

  	
   

  
	
  3.02.

  	
  Effective
  Date of Participation

  	
   

  
	
  3.03.

  	
  Revocation
  of Designation

  	
   

  

 

ii

 

	
  SECTION 4.  ACCOUNTS AND EARNINGS

  	
   

  
	
  4.01.

  	
  Establishment
  of Accounts

  	
   

  
	
  4.02.

  	
  No
  Requirement to Fund

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.  FORM AND TIMING OF PAYMENT

  	
   

  
	
  5.01.

  	
  Distribution
  of Account

  	
   

  
	
  5.02.

  	
  Timing of
  Distributions

  	
   

  
	
  5.03.

  	
  Form of
  Distributions

  	
   

  
	
  5.04.

  	
  Change in
  Distribution Option

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.  VESTING OF BENEFITS

  	
   

  
	
  6.01.

  	
  General

  	
   

  
	
  6.02.

  	
  Rehired
  Participants

  	
   

  
	
  6.03.

  	
  Redesignated
  Participants

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.  SELECTION OF AND PAYMENTS TO A BENEFICIARY

  	
   

  
	
  7.01.

  	
  Beneficiary
  Designation

  	
   

  
	
  7.02.

  	
  Change in
  Beneficiary

  	
   

  
	
  7.03.

  	
  Survivor
  Benefit

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8.  TAX WITHHOLDING

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9.  ADMINISTRATION OF THE PLAN

  	
   

  
	
  9.01.

  	
  Duties
  and Power

  	
   

  
	
  9.02.

  	
  Benefit
  Statements

  	
   

  
	
  9.03.

  	
  Right to
  Accelerate

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10.  AMENDMENT, SUSPENSION AND TERMINATION

  	
   

  
	
  10.01.

  	
  Right to Amend or Terminate

  	
   

  
	
  10.02.

  	
  Right to Suspend

  	
   

  
	
  10.03.

  	
  Partial ERISA Exemption

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11.  MISCELLANEOUS

  	
   

  
	
  11.01.

  	
  Unfunded Plan

  	
   

  
	
  11.02.

  	
  No Right to Continued Employment

  	
   

  
	
  11.03.

  	
  Prohibition Against Alienation

  	
   

  
	
  11.04.

  	
  Savings Clause

  	
   

  
	
  11.05.

  	
  Payment of Benefit of Incompetent

  	
   

  
	
  11.06.

  	
  Spouse’s Interest

  	
   

  
	
  11.07.

  	
  Successors

  	
   

  
	
  11.08.

  	
  Gender, Number and Heading

  	
   

  
	
  11.09.

  	
  Legal Fees and Expenses

  	
   

  
	
  11.10.

  	
  Choice of Law

  	
   

  
	
  11.11.

  	
  Affiliated Employees

  	
   

  
	
  11.12.

  	
  Plan Document

  	
   

  

 

iii

 

	
  SECTION 12.  ARBITRATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13.  CHANGE IN CONTROL PROVISIONS

  	
   

  
	
  13.01.

  	
  General

  	
   

  
	
  13.02.

  	
  Immediate Vesting

  	
   

  
	
  13.03.

  	
  Transfer to Rabbi Trust

  	
   

  
	
  13.04.

  	
  Lump Sum Payments

  	
   

  
	
  13.05.

  	
  Joint and Several Liability

  	
   

  
	
  13.06.

  	
  Dispute Procedures

  	
   

  
	
  13.07.

  	
  Definition of Change in Control

  	
   

  

 

iv

 

PREAMBLE

 

Benefits under
the International Transmission Company Executive Supplemental Retirement Plan (“Plan”)
are available to designated executives and key management employees of ITC
Holdings Corp. (Company) and its Subsidiaries. 
The Company has established this Plan to benefit executives of the
Company and its Subsidiaries in a manner that will be in the best interest of
the Company and its shareholders.

 

SECTION 1.

TITLE, PURPOSE AND EFFECTIVE DATE

 

1.01.                     Title.  The title of this plan shall be the “International
Transmission Company Executive Supplemental Retirement Plan” and shall be
referred to in this document as the “Plan”.

 

1.02.                     Purpose.  The purpose of the Plan is to promote the
success of the Company and its Subsidiaries by providing the ability to attract
and retain talented executives by providing such designated executives with
additional retirement benefits.

 

It is intended
that this Plan provide deferred compensation for a “select group of management
or highly compensated employees” within the meeting of sections 201, 301, and
401 of the Employee Retirement Income Security Act of 1974, as amended
(hereinafter referred to as “ERISA”) and, therefore, to be exempt from the
provisions of Parts 2, 3 and 4 of Title I of ERISA.

 

1.03.                     Effective Date.  The
Plan shall be effective March 1, 2003.

 

SECTION 2.

DEFINITIONS

 

The following
words and terms, as used in this Plan, shall have the meanings set forth below,
unless a clearly different meaning is required by the context in which the word
or phrase is used.

 

1.03.                     “Account” means the hypothetical record or
bookkeeping entry maintained by the Company reflecting each Participant’s
Opening Balance (if any), Compensation Credits, credited earnings, and
distributions under the Plan.  The term “Account”
should not be construed as an actual segregation of assets for the benefit of
any particular Participant.

 

2.02.                     “Affiliate”
means with respect to any Person, any entity directly or indirectly
controlling, controlled by or under common control with such Person.

 

1

 

2.03.                     “Anniversary Year” means the
12-month period of active service beginning with the date an employee is
originally designated a Participant.

 

2.04.                     “Annual Cash Bonus” means the
compensation payable in the Plan Year under the Company’s Annual Incentive
Plan, and any similar annual incentive plan of a Subsidiary, or any successor
plans thereto.

 

2.05.                     “Base Salary” means base salary
payable prior to reduction for any pre-tax deferrals under Code sections 125,
129, or 401(k) and prior to reduction for any payroll deduction for taxes or
any other purpose.  “Base Salary” shall
exclude any bonus, long-term awards, fringe benefit or other form of
remuneration.

 

2.06.                     “Beneficiary” means the person,
persons or entity designated in writing by the Participant, on forms, provided
by the Company, to receive distribution of certain death benefits payable under
the Plan in the event of the Participant’s death.

 

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

 

2.08.                      “Code” means the Internal Revenue
Code of 1986, as amended, and any regulations issued there under. References to
any section or subsection of the Code includes reference to any comparable or
succeeding provisions of any legislation which amends, supplements or replaces
such section or subsection.

 

2.09.                     “Committee” means the Committee
designated by the Board.  The Committee
is responsible for the administration of the plan and may delegate such
administrative responsibilities under this Plan.

 

2.10.                     “Company” means ITC Holdings Corp.
or its successors and assigns.

 

2.11.                     “Company’s Accountants” means the
independent accountant or accountants engaged by the Company, and, if selected
or changed following a Change in Control, approved by the trustee of the trust
established in accordance with Section 13.

 

2.12.                     “Company’s Actuaries” means the
independent actuary or actuaries engaged by the Company and, if selected or
changed following a Change in Control, approved by the trustee of the trust
established in accordance with Section 13.

 

2.13.                     “Compensation” for periods on or
after March 1, 2003, means a Participant’s Base Salary, plus Annual Cash Bonus.

 

2.14.                     “Compensation Credit” means an
amount equal to 9% of the Participant’s Compensation.  Such credit shall be computed and credited to
the Participant’s Account on an annual basis as of the last business day of the
year.  In order to receive a Compensation
Credit for a given year, the Participant must be actively employed by the
Company or a Subsidiary on the last business day of the year.

 

2

 

2.15.                      “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, and any regulations issued
there under.  References to any section
or subsection of ERISA includes any references to any comparable or succeeding
provisions of any legislation that amends, supplements or replaces such section
or subsection.

 

2.16.                     “FICA” means the tax applied under
the Federal Insurance Contributions Act as set forth in Chapter 21, Subtitle C,
of the Code, and any regulations issued there under.

 

2.17.                     “Group” means “group” as such term
is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act
of 1934, as amended.

 

2.18.                     “Investment Credit” means the
hypothetical earnings posted to the Participant’s Account.  The Investment Credit will be equal to 9.5%
per year, compounded monthly.

 

2.19.                     “ITC” means International
Transmission Company or its successors and

 assigns.

 

2.20.                     “ITH LP” means International
Transmission Holdings Limited Partnership, a Michigan limited partnership.

 

2.21.                     “Ironhill” means Ironhill
Transmission LLC, which is the general partner of ITH LP, of which the Company
is a majority owned Subsidiary.

 

2.22.                     “Limited Partner Group” shall mean the KKR
Millennium Fund L.P., KKR Partners III, L.P. and Trimaran Capital Partners,
collectively.

 

2.23.                     “Participant”
means an executive of the Company or a Subsidiary who has been designated by
the Committee as eligible to participate in the Plan.

 

2.24.                     Plan”
means the International Transmission Company Executive Supplemental Retirement
Plan, as described herein and as amended.

 

2.25.                     “Plan
Year” means the period beginning January 1 and ending December 31 of each
year.

 

2.26.                     “Person”
means “person” as such term is used for purposes of Section 13(d) or 14(d) of
the Securities Exchange Act of 1934, as amended.

 

2.27.                        “Spouse”
means an individual who is legally married to a Participant under the laws of
the State in which the Participant resides, on the day immediately preceding the
Participant’s date of death.

 

3

 

2.28.                     “Subsidiary” means any corporation in an
unbroken chain of corporations beginning with the Company if each of the
corporations, or group of commonly controlled corporations, other than the last
corporation in the unbroken chain then owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

 

2.29.                     “Trimaran
Capital Partners” means, collectively, Trimaran Fund II, L.L.C., Trimaran
Parallel Fund II, L.P., Trimaran Capital, L.L.C., CIBC Employee Private Equity
Fund (Trimaran) Partners and CIBC World Markets Ireland Limited.

 

2.30.                     Vested
Account” means the amount that the Participant is entitled to receive upon
termination of service for any reason with the Company or a Subsidiary.  Section 6 governs vesting in a Participant’s
Account therein.

 

SECTION 3.

PARTICIPATION

 

3.01.                     Designation By Committee. 
An employee may only become a Participant by designation by the
Committee.  Such employee must be an
individual who is included within a “select group of management or highly
compensated employees”, within the meaning of Title I of ERISA.

 

3.02.                     Effective Date of Participation. 
An Employee shall become a Participant as of the date he or she is first
designated as a Participant by the Committee.

 

3.03.                     Revocation
of Designation.  A Participant
whose designation is revoked prior to the Participant’s retirement, death,
termination or disability shall not receive any Compensation Credits under the
Plan subsequent to the date of such revocation. 
However, all monies that are deemed to be in the Participant’s Account
as of the date of revocation shall continue to be reflected in the Participant’s
Account, including earnings, gains and losses based on the Participant’s Deemed
Investment elections under section 4.02, until the Participant’s
retirement, death, termination or disability.

 

If a Participant whose designation has been revoked under this section
is subsequently redesignated as a Participant under section 3.01, the
provisions of section 6.03 shall govern.

 

SECTION 4.

ACCOUNTS AND EARNINGS

 

4.01.                     Establishment
of Accounts.  The Committee shall
establish a hypothetical bookkeeping Account for each Participant.  The initial value of a Participant’s Account
shall be zero.  Compensation Credits
shall be credited to a Participant’s Account as of the last business day of the
year.  The Participant’s Account at the
end of the first year will equal the Compensation Credit for that year.  In all

 

4

 

subsequent years, the Account
will equal the Investment Credit on the prior year-end balance in the Account
plus the current years Compensation Credit.

 

4.02                        No
Requirement to Fund.  The Company
shall have sole discretion whether or not to invest any of the Company’s funds
(whether or not in trust) in a manner that reflects the Deemed Investments or
in any other manner.  If and to the
extent the Company chooses to invest in any Deemed Investment, assets acquired
by the Company shall remain the sole property of the Company, subject to the
claims of its general creditors, and shall not be deemed to form part of the
Participant’s Account.  Nothing herein,
however, shall preclude the Company from segregating assets that are intended
to be a source of payment of benefits from the Plan.  The Company shall not be required to fund its
obligations in any manner and shall not be required to invest in any particular
investment, including any Deemed Investment fund.  The Company may, without limitation, purchase
life insurance or any security or other property with respect to any or all of
its obligations under the Plan. 
Participants shall have no right, title or interest in any assets held
by the Company (or any trust) by reason of a Participant’s participation in
this Plan.

 

SECTION 5.

FORM AND TIMING OF PAYMENT

 

5.01.                     Distribution
of Account.  The Company shall
distribute each Participant’s Vested Account in accordance with the Participant’s
distribution election unless the Plan provides otherwise.  The distribution election shall provide for
payment in either (i) annual installments over a period not less than two years
and not more than 15 years, in one year increments, or (ii) a lump sum
distribution.  If no distribution
election is on file with the Company, the Participant’s Vested Account shall be
distributed in a single lump sum.

 

5.02.                     Timing
of Distributions.  A lump sum
distribution of the first annual installment shall be made as of the March 1 of
the plan year following the year of termination of service with the Company or
a Subsidiary.  Subsequent annual
installments shall be made each following March 1 of the installment period.  Section 7.03 shall govern timing of a distribution
due to a Participant’s death.

 

5.03.                     Form
of Distributions.  (a)  Annual Installments.  The distribution to a Participant shall be
paid in cash.  The initial annual
installment distribution shall be determined by dividing the value of the Participant’s
Account, determined as of December 31 of the Plan Year in which the Participant’s
employment terminated by the number of installment payments to be made.  The amount distributed to the Participant
thereafter shall be recalculated each year to reflect changes in the
Participant’s Account through December 31 of such subsequent calendar year and
the remaining number of installment payments to be made.  Earnings and losses based on the Deemed
Investments shall be credited to the Participant’s Account through December 31
of each Plan Year in which the Participant has an Account balance.

 

5

 

(b)  Lump Sum Distribution.  The distribution shall be paid in a single
payment of the entire Account balance.

 

(c)  Distribution of Small
Amounts.  Notwithstanding a
Participant’s distribution election, if a Participant’s Vested Account is less
than or equal to $10,000 as of any December 31, the Participant’s Account shall
be paid in a single lump sum.

 

5.04.                     Change
in Distribution Option.  A
Participant may change the distribution election by submitting a revised
distribution election to the Committee. 
A change in time or manner of any distribution, however, shall be
effective only if the Human Resources Director receives the revised
distribution election while the Company or a Subsidiary actively employs the
Participant.

 

SECTION 6.

VESTING OF BENEFITS

 

6.01.                     General.  A Participant shall vest 20% per Anniversary
Year in his or her Account (“Vesting Service”). 
There is no partial vesting for a portion of an Anniversary Year.  A Participant’s Vested Percentage shall equal
the product of (i) 20% and (ii) the Participant’s number of Anniversary Years
as of the date of his or her termination, retirement, death or disability.  Participants shall receive credit for service
with the DTE Energy Company.

 

6.02.                     Rehired
Participants  (a) Vesting.  If a Participant terminates employment with
the Company or a Subsidiary prior to becoming 100% vested, the Participant’s
Account shall be distributed in accordance with section 5 and the nonvested
portion of the Account shall be forfeited. 
If such Participant is subsequently rehired by the Company or a
Subsidiary and is designated a Participant in accordance with Section 3, any
Account value forfeited upon the prior termination shall not be reinstated.

 

However, if the Participant has not incurred consecutive one-year
Breaks in Service equal to or in excess of (i) 5 years, or (ii) the aggregate
number of years of Vesting Service the Participant had earned before such Break
in Service, the Participant’s Anniversary Date shall be adjusted to take into
consideration such Participant’s prior period of active service during which he
or she was considered to be a Participant in the Plan (“Adjusted Anniversary
Date”).  A new Account shall be
established for such rehired Participant for the purpose of recording
Compensation Credits and Investment Credits beginning after such Participant’s
rehire date reflective of his or her Vested Percentage which shall be
recomputed to include the Participant’s Adjusted Anniversary Date.

 

(b) Pay Status of Prior Benefit. 
If the rehired Participant is receiving annual distributions of his or
her Account as it existed on the date of the Participant’s termination (“Prior
Account”), such Prior Account (i) will remain separate from the Account
established as described in Section 6.02(a), (ii) will retain the Vesting
Percentage applied as of the Participant’s date of termination, and (iii)
payments to the

 

6

 

Participant will continue upon
the Participant’s return to employment with the Company or a Subsidiary.

 

6.03                        Redesignated
Participants.  If a Participant’s
designation as a Participant had been revoked under section 3.03, prior to
becoming 100% vested, the Participant’s Account shall continue to be credited
with earnings, gains and losses based on the deemed investment of the
Account.  If such Participant is
subsequently redesignated as a Participant under section 3.01, such Participant’s
vested status shall be determined based on the Participant’s Anniversary Years
and his Account shall be adjusted to reflect the revised vested percentage.

 

SECTION 7.

SELECTION
OF AND PAYMENTS TO BENEFICIARY

 

7.01.                     Beneficiary
Designation.  A Participant shall
designate a Beneficiary on a form provided by the Human Resources Director or
his or her designee, for the purpose of designating a Beneficiary.  If a Participant has not designated a
Beneficiary, or if a designated Beneficiary is not living or in existence at
the time of a Participant’s death, any death benefits payable under the Plan
shall be paid to the Participant’s Spouse, if then living, and if the
Participant’s Spouse is not then living, to the Participant’s estate.

 

7.02.                     Change
in Beneficiary.  A Participant
may change the designated Beneficiary from time to time by filing a new written
designation with the Human Resources Director, or his or her designee.  Such designation shall be effective upon
receipt by the Human Resources Director or his or her designee.

 

7.03.                     Survivor
Benefit.  If a Participant dies
with an Account balance under this Plan, his Beneficiary shall be entitled to
receive a distribution of the Participant’s Account.  The Beneficiary shall receive a lump sum
equal to the deceased Participant’s Account under the Plan.  The lump sum distribution shall be paid
within ninety (90) days following the Participant’s death.

 

SECTION 8.

TAX WITHHOLDING

 

Benefits
hereunder shall be subject to applicable FICA withholding laws.  Benefit payments hereunder shall be subject
to applicable federal, state, and local tax withholding laws.

 

SECTION 9.

ADMINISTRATION OF THE PLAN

 

9.01.                     Duties
and Power.  The Committee shall
be the “named fiduciary” for the Plan responsible for the general operation and
administration of the Plan and the proper execution of its provisions.  It shall have full discretionary authority to
interpret the Plan and to determine the response to all questions arising from
its provisions.  It shall

 

7

 

maintain all necessary books of
accounts and records.  It shall have the
full discretionary power and authority to establish, interpret, enforce, amend,
and revoke, from time to time, such rules and regulations for the
administration of the Plan and the conduct of its business as it deems
appropriate, including the right to remedy ambiguities, inconsistencies and
omissions.  Any action that the Committee
is required or authorized to take shall be final and binding upon each and
every person who is or may become a Plan Participant or Beneficiary.  The Committee may delegate its authority to
administer the Plan.

 

9.02.                     Benefit
Statements.  The Committee, or
its designee, will provide each Participant with a quarterly statement setting
forth the Participant’s Account balance.

 

9.03.                     Right
to Accelerate.  The Board in its
sole discretion may accelerate all vested benefits upon termination of the
Plan, and pay such benefits in a single lump sum.  If the Internal Revenue Service or the
Committee determines that any amounts in Participants’ Accounts are currently
taxable, the Committee may direct immediate payment of all or some Plan
benefits in a single lump sum or to take any other action it deems
appropriate.  In addition, Participants
terminating employment with an Account Balance of less than $10,000 shall
receive such benefits in a single lump sum regardless of the Participant’s
distribution election.

 

SECTION 10.

AMENDMENT, SUSPENSION AND TERMINATION

 

10.01.              Right
to Amend or Terminate.  The Plan
may be amended, modified, or terminated by the Committee at any time.  Such amendment, modification or termination
may modify or eliminate any benefit hereunder except that such amendment,
modification or termination shall not affect the rights of Participants or
Beneficiaries to the vested portion of a Participant’s Account as of the date
of such amendment or termination.

 

10.02.              Right
to Suspend.  If the Committee
determines that payments under the plan would have a material adverse effect on
the Company’s ability to carry on its business, the Committee may suspend such
payments temporarily for such time as in its sole discretion it deems
advisable, but in no event for a period in excess of one year.  The company shall pay such suspended payments
in a lump sum immediately upon the expiration of the period of suspension.  Such suspended payments shall accrue interest
at a rate of prime plus two percent during the period of suspension.

 

10.03.              Partial
ERISA Exemption.  The Plan is
intended to provide benefits for “a select group of management or highly
compensated employees” within the meaning of sections 201, 301, and 401 of
ERISA, and therefore to be exempt from sections 2, 3 and 4 of Title I of
ERISA.  Accordingly, the Plan shall
terminate and existing Account balances shall be paid in a single lump-sum and
no further benefits, vested or non-vested, shall be paid hereunder in the event
it is determined by a court of competent jurisdiction or by an

 

8

 

opinion of counsel that the
Plan constitutes an employee pension benefit plan within the meaning of section
3(2) of ERISA which is not so exempt.

 

SECTION 11.

MISCELLANEOUS

 

11.01.              Unfunded
Plan.  The Plan shall be unfunded
within the meaning of sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.  All benefits payable under the Plan shall be
paid from the Company’s general assets. 
The Company shall not be required to set aside or hold in trust any
funds for the benefit of a Participant or Beneficiary, each of whom shall have
the status of a general unsecured creditor with respect to the Company’s
obligation to make benefit payments pursuant to the Plan.  Any assets of the Company available to pay
Plan benefits shall be subject to the claims of the Company’s general creditors
and may be used by the Company in its sole discretion for any purpose.  A Participant shall be treated as an
unsecured creditor of the Company for all benefits under the Plan.

 

11.02.              No
Right to Continued Employment. 
Nothing in the Plan shall create or be construed as a contract between
the Company or a Subsidiary and employees for any matter including giving any
person employed by the Company or a Subsidiary the right to be retained in the
Company’s or a Subsidiary’s employ. The Company and each Subsidiary expressly
reserve the right to dismiss any person at any time, with or without cause,
without liability for the effect that such dismissal might have upon him as a
Participant in the Plan or for any other purpose.

 

11.03.              Prohibition
Against Alienation.  Except as
otherwise provided in the Plan, no right or benefit under the Plan shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, or charge, and any attempt to so anticipate, alienate,
sell, transfer, assign, pledge, encumber, or charge the same shall be
void.  No such right or benefit shall be
liable for or subject to the debts, contracts, liabilities, engagements, or torts
of the person entitled to such right or benefit.

 

11.04.              Savings
Clause.  If any provision of this
Plan is held by a court of competent jurisdiction to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision and the remaining provisions hereof shall continue to be construed
and enforced as if the invalid or unenforceable provision had not been
included.

 

11.05.              Payment
of Benefit of Incompetent.  In
the event the Committee finds that a Participant, former Participant or
Beneficiary is unable to care for his affairs because of his minority, illness,
accident, or other reason, any benefits payable hereunder may, unless other
claim has been made therefore by a duly appointed guardian, committee or other
legal representative, be paid to a spouse, child, parent, or other blood
relative or dependent or to any persons found by the Committee to have incurred
expenses for the support and maintenance of such Participant, former
Participant, or

 

9

 

Beneficiary; and any such
payments so made shall be a complete discharge of all liability therefore.

 

11.06.              Spouse’s
Interest.  The interest in the
benefits hereunder of a Spouse who has predeceased the Participant shall
automatically pass to the Participant and shall not be transferable by such
Spouse in any manner including, but not limited to, such Spouse’s will, nor
shall such interest pass under the laws of intestate succession.

 

11.07.              Successors.  In the event of any consolidation, merger,
acquisition or reorganization of the Company, the obligations of the Company
and its Subsidiaries participating under this Plan shall continue and be
binding upon the Company, participating Subsidiaries and its successors.

 

11.08.              Gender,
Number and Heading.  Whenever any
words are used herein in the masculine gender, they shall be construed as
though they were also used in the female gender in all cases where they would
so apply.  Whenever any words used herein
are in the singular form, they shall be construed as though they were also used
in the plural form in all cases where they would so apply.  Headings of sections and subsections as used
herein are inserted solely for convenience and reference and constitute no part
of the Plan.

 

11.09.              Legal
Fees and Expenses.  The Company shall
pay all reasonable legal fees and expenses that the Participant may incur as a
result of the Company contesting the validity, enforceability, or the
Participant’s interpretation of, or determinations under this Plan, other than
tax withholding under section 8.

 

11.10.              Choice
of Law.  This Plan shall be
governed by and construed in accordance with the laws of the State of Michigan,
other than its choice-of-law rules, to the extent not superseded by applicable
federal statutes or regulations.

 

11.11.              Affiliated
Employees.  Transfers of
employment between the Company and its Subsidiaries will be treated as
continuous and uninterrupted service under the Plan.

 

11.12.              Plan
Document.  This Plan document
provides the final and exclusive statement of the terms of the Plan.  Unless otherwise authorized by the Committee
or its delegate, no amendment or modification to this Plan shall be effective
until reduced to writing and adopted pursuant to section 10.01.  This document legally governs the operation
of the Plan, and any claim of right or entitlement under the Plan shall be
determined solely in accordance with its provisions.  To the extent that there are any
inconsistencies between the terms of any related materials and the terms of
this document, the terms of this document shall control and govern the
operation of the Plan.  No other
evidence, whether written or oral, shall be taken into account in determining
the right of a Participant, or Beneficiary, as applicable, to any benefit of
any type under the Plan.

 

10

 

SECTION 12.

ARBITRATION

 

In the event
of any dispute, claim or controversy (hereinafter referred to as a “Grievance”)
between a Participant who is eligible to elect to receive the benefits provided
under this Plan and the Company with respect to the payment of benefits to such
Participant under this Plan, the computation of benefits under this Plan, or
any of the terms and conditions of this Plan, such Grievance shall be resolved
by arbitration in accordance with this Section 12.

 

(a)                                  Arbitration
shall be the sole and exclusive remedy to redress any Grievance.

(b)                                 The
arbitration decision shall be final and binding, and a judgment on the
arbitration award may be entered in any court of competent jurisdiction and
enforcement may be had according to its terms.

(c)                                  The
arbitration shall be conducted by the American Arbitration Association in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association and reasonable expenses of the arbitrators and the American
Arbitration Association shall be borne by the Company.

(d)                                 The
place of the arbitration shall be the offices of the American Arbitration
Association in the Detroit, Michigan metropolitan area.

(e)                                  The
arbitrator(s) shall not have the jurisdiction or authority to change any of the
provisions of this plan by alteration of, addition to, or subtraction from the
terms thereof.  The arbitrator(s) sole
authority shall be to apply any terms and conditions of this Plan.  Since arbitration is the exclusive remedy
with respect to any Grievance, no Participant eligible to receive benefits
provided under this Plan has the right to resort to any federal court, state
court, local court or administrative agency concerning breaches of any terms and
provisions hereunder, and the decision of the arbitrator(s) shall be a complete
defense to any suit, action or proceeding instituted in any federal court,
state court, local court, or administrative agency by such employee or the
Company with respect to any Grievance which is arbitrable as herein set forth.

(f)                                    The
arbitration provisions shall, with respect to any Grievance, survive the
termination of this Plan.

 

SECTION 13.

CHANGE IN CONTROL PROVISIONS

 

13.01.              General.  In the event of a Change in Control, as
defined in Section 13.07, then, notwithstanding any other provision of the
Plan, the provisions of this section 13 shall be applicable and shall supersede
any conflicting provisions of the Plan.

 

13.02.              Immediate
Vesting.  In the case of a Change
in Control, each Participant’s Account shall immediately be 100% vested.

 

11

 

13.03.              Transfer
to Rabbi Trust.  The company
shall establish a trust (the “Rabbi Trust”) that is intended to be an unfunded
arrangement and not affect the status of the Plan as an unfunded arrangement
for purposes of Title I of ERISA. The terms of the Rabbi Trust shall provide
that, within seven (7) days of a Change in Control, assets shall be transferred
to the Rabbi Trust in (a) an amount equal to each Participant’s Account balance
as of the date of the Change in Control, plus (b) an amount deemed necessary to
pay estimated Rabbi Trust administrative expenses for the following five (5)
years, as determined by the Company’s Accountants or the Company’s
Actuaries.  Assets transferred in
accordance with the preceding sentence shall either be (i) in the form of
shares of the Deemed Investments equal to the number of shares of each such
Deemed Investment in which the Participant’s Account is deemed to be invested
for bookkeeping purposes on the date of the Change in Control or (ii) in the
form of in cash, in which case an additional cash transfer shall be made, prior
to the initial investment of cash by the trustee of the Rabbi Trustee in any
Deemed Investment, in an amount sufficient to permit the trustee of the Rabbi
Trust to invest in the number of shares of each Deemed Investment in which the
Participant’s Account was deemed to be invested for bookkeeping purposes on the
date of the Change in Control (as adjusted for any subsequent share splits,
consolidations, etc.)  The Company and/or
a Subsidiary shall make all transfers of assets required by the Rabbi Trust in
a timely manner and shall otherwise abide by the terms of the Rabbi Trust.

 

13.04.              Lump
Sum Payments.  In connections
with a Change in Control or consummation of a transaction constituting a Change
in Control, the President of ITC shall have the absolute discretion to direct
that lump sum payment be made to a Participant up to the total value of such
Participant’s Account if such payment will reduce the amount of any potential
excise tax imposed by Code section 4999.

 

13.05.              Joint
and Several Liability.  Upon and
at all times after a Change in Control, the liability under the Plan of the
Company and each Subsidiary that has adopted the Plan shall be joint and
several so that the Company and each such Subsidiary shall each be liable for
all obligations under the Plan to each employee covered by the Plan, regardless
of the corporation by which such employee is employed.

 

13.06.              Dispute
Procedures.  In the event that,
upon or at any time subsequent to a Change in Control, a disputed claim for
benefits under the Plan is brought by a Participant or beneficiary, the
following additional procedures shall be applicable:

 

(a)                                  Any
amount that is not in dispute shall be paid to the Participant or beneficiary
at the time or times provided therein.

(b)                                 The
Company shall advance to such claimant from time to time such amounts as shall
be required to reimburse the claimant for reasonable legal fees, costs and
expenses incurred by such claimant in seeking a judicial resolution of his or
her claim, including reasonable fees, costs and expenses relating to
arbitration.

 

12

 

13.07.              Definition
of Change in Control.  Change in
Control means (i) the sale of all or substantially all of the assets of the
Company or ITC to an Unaffiliated Person; (ii) a sale resulting in more than
50% of the voting stock of the Company or ITC being held by an Unaffiliated
Person; (iii) a merger, consolidation, recapitalization or reorganization of
the Company or ITC with or into another Unaffiliated Person; if and only if any such event listed in
clauses (i) through (iii) above results in the inability of ITH LP, Ironhill,
the Limited Partner Group, or any member or members of the Limited Partner
Group, to designate or elect a majority of the Board (or the board of directors
of the resulting entity or its parent company). 
For purposes of this definition, the term “Unaffiliated Person”
means any person or group who is not (x) ITH LP, Ironhill, the Limited Partner
Group or any member of the Limited Partner Group, (y) an Affiliate of ITH LP,
Ironhill, the Limited Partner Group or any member of the Limited Partner Group,
or (z) an entity in which ITH LP, Ironhill, the Limited Partner Group, or any
member of the Limited Partner Group holds, directly or indirectly, a majority
of the economic interest in such entity.

 

IN WITNESS WHEREOF, ITC Holdings Corp. has caused this Plan to be
executed as of this          day of
August 2003.

 

 

	
   

  	
  ITC Holdings Corp.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
					

 

13Filed by Automated Filing Services Inc. (604) 609-0244 - SOM Resources Inc. - Exhibit 10.1

PURCHASE AND SALE AGREEMENT 

  

 

 

BETWEEN 

SOM RESOURCES INC. 

AND 

 MULTI METAL MINING CORP. 

 

 

 

 

Dated as of the 10th day of April 2005. 

 PURCHASE AND SALE AGREEMENT 

 THIS AGREEMENT made as of the 10th day of April, 2005

 AMONG: 

SOM RESOURCES INC., a company
  existing under the laws of the State of Nevada and having its head office at
  175 Optimist Park Drive, London, Ontario N6K 4M2 (“Som”) 

 AND: 

MULTI METAL MINING CORP., a
  company existing under the laws of the State of Nevada and having its head office
  at 6075 South Eastern Ave., Suite 1, Las Vegas Nevada, 89119-3146 (the “Vendor”)

WHEREAS: 

	 A.      	 The Vendor holds, directly or indirectly, interests
        in certain mineral exploration claims located in the State of Nevada;
      

	 
	 B.      	 The Vendor wishes to sell and Som wishes to purchase
        a 100% interest in the Property on the terms and conditions contained
        in this Agreement. 

 In consideration of the premises, covenants and agreements
  contained in this Agreement, the parties covenant and agree each with the other
  as follows: 

 1.          INTERPRETATION
  

 1.1         Definitions

 For the purposes of this Agreement and the recitals in and
  Schedule to this Agreement, unless the context otherwise requires, the following
  words and phrases will have the meanings indicated below: 

	 	 (a)      	 “Agreement” means this Agreement including
        the recitals and Schedule hereto, which are incorporated by this reference,
        as amended and supplemented; 

	 
	 	 (b)      	 “Property” means the mineral exploration
        claims located in the State of Nevada, USA and listed in Schedule 1 hereto;
      

	 
	 	 (c)      	 “Purchase Price” means the $3,000,
        US Dollars, purchase price for the Property as contemplated in this Agreement;
      

	 
	 	 (d)      	 “The Vendor” means Multi Metal Mining
        Corp., a company incorporated and existing under the laws of Nevada; 

	 
	 	 (e)      	 “Som” means Som Resources Inc., a company
        incorporated and existing under the laws of Nevada; 

 1.2         Interpretation

 In this Agreement, except as otherwise expressed or provided
  or as the context otherwise requires: 

	 	 (a)      	 the headings and captions are provided for convenience
        only and will not form a part of this Agreement, and will not be used
        to interpret, define or limit the scope, extent or intent of this Agreement
        or any of its provisions; and 

	 
	 	 (b)      	 a reference to time or date is to the local time
        or date in London, Ontario, Canada, unless specifically indicated otherwise;
      

 1.3         Amendment

 No amendment, waiver, termination or variation of the terms,
  conditions, warranties, covenants, agreements and undertakings set out herein
  will be of any force or effect unless the same is reduced to writing duly executed
  by all parties hereto in the same manner and with the same formality as this
  Agreement is executed. 

 1.4         Waiver

 No waiver of any of the provisions of this Agreement will
  constitute a waiver of any other provision (whether or not similar) and no waiver
  will constitute a continuing waiver unless otherwise expressly provided. 

 1.5         Schedules

 The following Schedules are attached hereto and form a part
  hereof: 

	 Schedule  	 Subject  
	  	 
	 1	 Description of Property  
	 2	 Claim Map  

1.6         Currency 

	 All dollar ($) references in this Agreement
        are to United States dollars. 

2.          PURCHASE AND SALE
  

 2.1         Purchase and Sale

 Subject to the terms and conditions of this Agreement and
  based on the representations and warranties contained in this Agreement, Som
  hereby offers to purchase the Property from the Vendor and the Vendor hereby
  agrees to sell the Property to Som. 

 2 

 2.2         Consideration

 In consideration for the sale by the Vendor to Som of the
  Property, Som will pay the Purchase Price for the Property to the Vendor on
  the Closing date. 

 3.          REPRESENTATIONS
  AND WARRANTIES 

 3.1         Representations
  and Warranties of The Vendor 

 The Vendor represents and warrants to and in favour of the
  Som as follows and acknowledges that Som is relying upon such representations
  and warranties in consummating the transactions contemplated by this Agreement:

	 	 (a)      	 This Agreement has been duly executed and delivered
        by the Vendor and constitutes a valid and binding obligation of the Vendor
        in accordance with its terms; 

	 
	 	 (b)      	 Schedules 1 and 2 hereto contain an accurate and
        complete description of the Property; 

	 
	 	 (c)      	 No person has any agreement or option or any right
        or privilege (whether by law, pre-emptive or contractual) capable of becoming
        an agreement or option for the purchase from the Vendor of any interest
        in the Property; 

	 
	 	 (d)      	 The entering into, execution, delivery and performance
        by the Vendor of this Agreement will not violate or contravene or conflict
        with or result in a breach of or default or give rise to any right of
        termination, acceleration, cancellation or modification under any of the
        terms and conditions of any contract, agreement, commitment, arrangement
        or understanding pursuant to which the Vendor holds or has acquired its
        interest in the Property or any other contract, agreement, commitment,
        arrangement, understanding or restriction, written or oral, to which the
        Vendor is a party or by which it is bound; 

	 
	 	 (e)      	 To the best of the knowledge of the Vendor after
        due enquiry, there are no legal conflicts of any nature and no investigations
        or legal or administrative affairs pending against the Vendor in connection
        with the Property or for any other cause and there is no pending or threatened
        decree, decision, sentence, injunction, order or award of any court, arbitral
        tribunal or governmental authority or any action, procedure, arbitration,
        administrative or judicial investigation, actual or threatened, with respect
        to the Vendor or the Property; 

	 
	 	 (f)      	 The Vendor holds all right, title and interest in
        and to the Property, and the Property is free of any lien, claim, pledge,
        privilege, levy, lease, sublease or rights of any person and other than
        government royalties, government work requirements and other conditions
        imposed by a governmental authority; 

 3.2         Representations
  and Warranties of Som 

 Som represents and warrants to and in favour of the Vendor
  as follows and acknowledges that the Vendor are relying upon such representations
  and warranties in consummating the transactions contemplated by this Agreement:

	 	 (a)      	 Som is a corporation duly incorporated and validly
        subsisting and in good standing in the State of Nevada; 

 3

 

	 	 (b)      	 Som has the corporate power and authority to enter
        into this Agreement and to perform its obligations hereunder; 

	 
	 	 (c)      	 The execution and delivery of this Agreement and
        the completion of the transactions contemplated herein will constitute
        a valid and binding obligation of Som enforceable against it in accordance
        with its terms; 

	 
	 	 (d)      	 The entering into, execution, delivery and performance
        by the Som of this Agreement will not violate or contravene or conflict
        with or result in a breach of or default or give rise to any right of
        termination, acceleration, cancellation or modification under any of the
        terms and conditions of any contract, agreement, commitment, arrangement,
        understanding or restriction, written or oral, to which Som is a party
        or by which it is bound or under the constating documents or directors’
        or shareholders’ resolutions of Som; 

 4.          CLOSING
  

 4.1         Time
  and Place of Closing 

 The closing (the “Closing”) of this Agreement
  will take place at the offices of Som at 2:00 p.m. (London, Ontario time) on
  April 10, 2005. 

 4.2         Closing
  Documents 

 At Closing, the parties hereto will table the following documents:

	 	 (a)      	 Documents of The Vendor: The Vendor will
        table for delivery to Som title transfer documents relating to the Property
        in a form acceptable to Som’s legal counsel. 

	 
	 	 (b)      	 Documents of Som. Som will table for delivery
        to the Vendor a certified check, or a check issued from an attorney’s
        trust account for $3,000 made payable to the Vendor or its agents.
      

 5.          TERMINATION
  

 5.1         Mutual
  Termination 

 This Agreement may, prior to Closing, be terminated by the
  parties hereto by mutual agreement in writing notwithstanding anything contained
  herein. 

 6.          GENERAL
  PROVISIONS 

 6.1         Time
  of Essence 

 Time is and will be of the essence of each and every provision
  of this Agreement. 

 4 

 6.2         Finder’s
  Fees and Brokers’ Commission 

 Each of the parties hereto represents to the other that it
  has not incurred any liability for any finders’ fee or brokers’
  commission in connection with the execution of this Agreement or the consummation
  of the transactions contemplated herein. 

 6.3         Expenses

 Tao will be responsible for all fees and expenses in connection
  with the preparation, execution and delivery of this Agreement and the preparation
  and completion of all other agreements, documents, approvals and transactions
  contemplated by this Agreement. 

 6.4         Further
  Assurances 

 Each of the parties hereto will, whether before or after Closing
  and at the expense of Som, execute and deliver all such further documents and
  instruments, give all such further assurances, and do all such acts and things
  as may reasonably be required to carry out the full intent and meaning of this
  Agreement. 

 6.5         Entire
  Agreement 

 This Agreement and the Schedule hereto contain the whole agreement
  among the parties hereto in respect of the subject matter hereof and supersedes
  and replaces all prior negotiations, communications and correspondence between
  the parties hereto. There are no warranties, representations, terms, conditions
  or collateral agreements, express or implied, statutory or otherwise, among
  the Vendor and Som other than as expressly set forth in this Agreement and the
  Schedule hereto. 

 6.6         Enurement

 This Agreement will enure to the benefit of and be binding
  upon each of the parties hereto and their respective successors, liquidators
  and permitted assigns. 

 6.7         Assignment

 No party hereto may assign any of its right, title or interest
  in, to or under this Agreement, nor will any such purported assignment be valid
  amongst the parties hereto, except with the prior written consent of all parties
  hereto, such consent not to be unreasonably withheld. 

 6.8         Governing
  Law 

 This Agreement will be construed and interpreted in accordance
  with the laws of the Province of Ontario, Canada and the laws of Canada applicable
  therein. The parties hereto irrevocably attorn to the jurisdiction of the arbitrators
  and courts of the Province of Ontario, Canada and the venue for any actions
  or arbitrations arising out of this Agreement will be London, Ontario Canada.

 5 

 6.9         Notices 

 All notices, payments, and other required communications (“Notices”)
  to the parties hereto shall be in writing and shall be addressed respectively
  as follows: 

	 	(a)	 If to Som: 
	 	 	 	 
	 	 	 	Som Resources Inc.. 

      175 Optimist Park Drive. London, Ontario N6K 4M2 

      If to the Vendor: 
	 	 	 	 
	 	(b)	 	Multi Metal Mining Corp. 

      6075 South Eastern Ave., Suite 1, 

      Las Vegas Nevada, 89119-3146 

All notices shall be given (i) by personal delivery to the
  party by leaving a copy at the place specified for notice with a receptionist
  or an apparently responsible individual, or (ii) by electronic facsimile communication.
  All notices will be effective and will be deemed delivered (i) if by personal
  delivery, on the date of delivery if delivered during normal business hours
  and, if not delivered during normal business hours, on the next business day
  following delivery, and (ii) if by electronic communication, on the next business
  day following receipt of the electronic communication. A party hereto may change
  its address for notice by notice to the other party. 

 6 

 6.10        Counterparts

 This Agreement, and any certificates or other writing delivered
  in connection herewith, may be executed in any number of counterparts with the
  same effect as if all parties hereto had all signed the same documents, and
  all such counterparts will be construed together and will constitute one and
  the same instrument. The execution of this Agreement and any other writing by
  any party hereto or thereto will not become effective until counterparts hereof
  or thereof, as the case may be, have been executed by all the parties hereto
  or thereto, and executed copies delivered to each party who is a party hereto
  or thereto. Such delivery may be made by facsimile transmission of the execution
  page or pages, hereof or thereof, to each of the other parties by the party
  signing the particular counterpart, provided that forthwith after such facsimile
  transmission, an originally executed execution page or pages is forwarded by
  prepaid express courier to the other party by the party signing the particular
  counterpart. 

 The parties hereto have executed and delivered this Agreement
  as of the date first written above. 

	 SOM RESOURCES INC.  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	Per: 	  	 
	 	 Eric Plexman  	 
	 	 Director, President 	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 MULTI METAL MINING CORP.  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	Per: 	  	 
	 	 Larry Sostad  	 
	 	 President  	 

 7 

Schedule 1 

Description of Property 

	 Claim Name  	 Miniming District  	 Co-ordinates  
	  	 	 
	 Hermosa Prospect  	 Yellow Pine, Clark County, NV  	 35 Degree 48’ 20” N Latitude  
	  	  	 115 Degree 30’ 45” Longitude  

Schedule 2 

 Claim map 

 8

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