Document:

exhibit108amcorrigid2013

                                                      Exhibit 10.8             AMCOR RIGID PLASTICS        DEFERRED COMPENSATION PLAN   (As Amended and Restated Effective as of January 1, 2013)                McDermott Will & Emery LLP                       Chicago 

 

                            TABLE OF CONTENTS                                                                          PAGE   SECTION 1 ................................................................................................................................ 1        Establishment and Purpose ............................................................................................ 1              1.1   Establishment ......................................................................................... 1              1.2   Purpose ...................................................................................................  1   SECTION 2 ................................................................................................................................ 2        Definitions...................................................................................................................... 2              2.1   Account or Accounts .............................................................................. 2              2.2   Affiliate .................................................................................................. 2              2.3   Beneficiary ............................................................................................. 2              2.4   Board of Directors.................................................................................. 2              2.5   Bonus Contributions .............................................................................. 2              2.6   Code ....................................................................................................... 2              2.7   Committee ..............................................................................................  2              2.8   Company ................................................................................................ 3              2.9   Compensation ........................................................................................ 3              2.10  Disability ................................................................................................  3              2.11  Effective Date ........................................................................................ 3              2.12  Eligible Employee .................................................................................. 3              2.13  Employee ............................................................................................... 4              2.14  Employee Contributions ........................................................................ 4              2.15  Employer ................................................................................................  4              2.16  Employer Contributions ......................................................................... 4              2.17  Employer Make-Up Matching Contributions ........................................ 4              2.18  Employer Make-Up Pension Contributions ........................................... 4              2.19  Employer Special Contributions ............................................................ 4              2.20  Employer 10% Target Contributions ..................................................... 4              2.21  ERISA .................................................................................................... 4              2.22  Forfeitures .............................................................................................. 5              2.23  Grandfathered Accounts ........................................................................ 5              2.24  Investment Committee ........................................................................... 5              2.25  Investment Fund..................................................................................... 5              2.26  Participant .............................................................................................. 5              2.27  Pension Plan ........................................................................................... 5              2.28  Plan ........................................................................................................ 5              2.29  Plan Year ................................................................................................ 5              2.30  Salary Deferral Contributions ................................................................ 5              2.31  Savings Plan ........................................................................................... 6              2.32  Savings Plan Employer Discretionary Matching                    Contributions.......................................................................................... 6              2.33  Savings Plan New Employer Matching Contributions .......................... 6              2.34  Savings Plan Retirement Savings Contributions ................................... 6 

 

                            TABLE OF CONTENTS                                    (continued)                                                                         PAGE               2.35  Trust ....................................................................................................... 6              2.36  Trustee.................................................................................................... 6              2.37  409A Accounts ....................................................................................... 6   SECTION 3 ................................................................................................................................ 7        Eligibility and Participation ........................................................................................... 7              3.1   Eligibility ............................................................................................... 7              3.2   Participation ........................................................................................... 7   SECTION 4 ................................................................................................................................ 8        Contributions.................................................................................................................. 8              4.1   Long-Term Incentive Plan Contributions .............................................. 8              4.2   Salary Deferral Contributions ................................................................ 8              4.3   Bonus Contributions .............................................................................. 8              4.4   Employer Make-Up Matching Contributions ........................................ 9              4.5   Employer Make-Up Pension Contributions ........................................... 9              4.6   Employer Special Contributions .......................................................... 10              4.7   Employer 10% Target Contributions ................................................... 10   SECTION 5 .............................................................................................................................. 12        Accounting and Vesting ............................................................................................... 12              5.1   Vesting ................................................................................................. 12              5.2   Termination for Cause or Violation of Non-Compete                    Restrictions .......................................................................................... 13              5.3   Forfeitures ............................................................................................ 13              5.4   Allocation of Employee Contributions and Employer                    Contributions........................................................................................ 13              5.5   Accounts .............................................................................................. 13   SECTION 6 .............................................................................................................................. 15        Funding and Investments ............................................................................................. 15              6.1   Trust Fund ............................................................................................ 15              6.2   Investment Fund Elections ................................................................... 15              6.3   Expenses .............................................................................................. 15   SECTION 7 .............................................................................................................................. 16        Timing and Form of Payment ...................................................................................... 16              7.1   Participant’s Grandfathered Accounts ................................................. 16              7.2   Employee Contributions in 409A Accounts ........................................ 16              7.3   Employer Contributions in 409A Accounts ......................................... 17              7.4   Hardship Distributions ......................................................................... 18              7.5   Payments After Death .......................................................................... 19                                       -ii-

 

                            TABLE OF CONTENTS                                    (continued)                                                                         PAGE               7.6   Payments Upon Disability ................................................................... 19              7.7   Special Distribution Rules for 409A Accounts .................................... 19              7.8   Designation of Beneficiary .................................................................. 20              7.9   Facility of Payment .............................................................................. 20              7.10  Unclaimed Benefits .............................................................................. 20   SECTION 8 .............................................................................................................................. 21        Nature of Interest of Participant ................................................................................... 21   SECTION 9 .............................................................................................................................. 22        Administration ............................................................................................................. 22              9.1   Committee ............................................................................................  22              9.2   Powers of the Administrative and Investment Committees ................. 22              9.3   Withholding ......................................................................................... 22              9.4   Claims Procedures ............................................................................... 23              9.5   Disability Claims Procedures ............................................................... 23              9.6   Liability ................................................................................................  24              9.7   Finality of Committee Determinations ................................................ 25              9.8   Governing Law .................................................................................... 25   SECTION 10 ............................................................................................................................ 26        No Employment Rights................................................................................................ 26   SECTION 11 ............................................................................................................................ 27        Change in Control ........................................................................................................ 27              11.1  Amounts Held in Grandfathered Accounts .......................................... 27              11.2  Amounts Held in 409A Accounts ........................................................ 27   SECTION 12 ............................................................................................................................ 28        Amendment, Suspension, and Termination ................................................................. 28                                        -iii-

 

                            AMCOR RIGID PLASTICS                        DEFERRED COMPENSATION PLAN                    (As Amended and Restated as of January 1, 2013)                                   SECTION 1                             Establishment and Purpose   1.1   Establishment         Schmalbach-Lubeca Plastic Containers USA, Inc. established, for the benefit of  Participants, this unfunded deferred compensation plan, which was originally effective on  September 5, 2000 and was known as the Schmalbach-Lubeca Plastic Containers USA, Inc.  Deferred Compensation Plan.  Following the stock purchase of Schmalbach-Lubeca Plastic  Containers USA, Inc. by Amcor Limited and Twinpack (USA) Inc. on October 24, 2002, the  name of the company was changed to Amcor PET Packaging USA, Inc. and this plan became  known as the Amcor PET Packaging Deferred Compensation Plan.  The Plan was amended  and restated effective as of January 1, 2005 to comply with Section 409A of the Code and to  make various other Plan design changes.  It is the intent of the Company that all contributions  described in Section 4 hereunder and allocated to a Participant’s Accounts in accordance with  Section 5 that are attributable to services performed for the Employer on and after January 1,  2005 will be subject to, and comply with, Section 409A of the Code.  Amounts deferred under  the Plan that are attributable to services performed for the Employer prior to January 1, 2005  will be grandfathered and will be governed by the Plan provisions in effect prior to January 1,  2005.  On March 5, 2010, Amcor PET Packaging USA, Inc. changed its name to Amcor Rigid  Plastics USA, Inc.  On January 1, 2011, the Plan changed its name to the Amcor Rigid  Plastics Deferred Compensation Plan.  The Plan as set forth herein is an amendment and  restatement effective as of January 1, 2013.     1.2   Purpose         The Plan is maintained for the purpose of providing deferred compensation for a select  group of management and highly compensated key employees of the Company.     

 

                                   SECTION 2                                    Definitions         The following words and phrases as used in this Plan have the following meanings:   2.1   Account or Accounts         The term “Account” or “Accounts” means a Participant’s individual accounts  (Grandfathered, 409A or both if applicable) as described in Section 5 of the Plan.   2.2   Affiliate          “Affiliate” means the Company and any affiliated or related corporation that is a  member of a controlled group of corporations (within the meaning of Section 1563(a) of the  Code) that includes the Company or any trade or business (whether or not incorporated)  which is under the common control of the Company (within the meaning of Section 414(b),  (c) or (m) of the Code).   2.3   Beneficiary         The term “Beneficiary” or “Beneficiaries” means the person or persons entitled to  receive the balance credited to a Participant’s Account under the Plan upon the death of the  Participant, as provided in subsection 7.5.   2.4   Board of Directors         The term “Board of Directors” means the Board of Directors of the Company, as from  time to time constituted.   2.5   Bonus Contributions         The term “Bonus Contributions” means the contributions by an Eligible Employee  described in subsection 4.3 of the Plan.    2.6   Code         The term “Code” means the Internal Revenue Code of 1986, as amended, and any  regulations and other guidance issued thereunder.  Reference to a specific section of the Code  shall include such section, any valid regulation promulgated thereunder, and any comparable  provision of any future legislation amending, supplementing or superseding such section.   2.7   Committee         The term “Committee” means the administrative committee appointed to administer  executive employee benefit plans of the Company by resolution of the Company’s Board of  Directors.     -2- 

 

   2.8   Company         The term “Company” means Amcor Rigid Plastics USA, Inc.   2.9   Compensation         The term “Compensation” for purposes of determining Salary Deferral Contributions  means an Employee’s Compensation as defined in the Savings Plan for purposes of all plan  contributions (other than Retirement Savings Contributions), but:  (i) without the limitations  imposed by Section 401(a)(17) of the Code (adjusted for cost of living increases), and (ii)  excluding bonuses, performance incentives, or payments under the Amcor Management  Incentive Plan.  ‘Compensation’ for purposes of determining Employer Contributions shall be  the same as Compensation for purposes of determining Salary Deferral Contributions but  shall include amounts in item (ii) in the prior sentence.  Notwithstanding the foregoing, if the  Employee is transferred to employment with an Affiliate but remains an Eligible Employee  pursuant to subsection 2.12, then the Employee’s Compensation shall include only those  amounts described above that are paid by an Employer after such transfer for purposes of  calculating all contributions under the Plan.  However, if the Employee is transferred to a non- U.S. Affiliate, then the Employee’s Compensation for purposes of Employer Contributions  shall be the Employee’s notional salary and variable pay as determined by the Committee.   2.10  Disability         With respect to a Participant’s Grandfathered Accounts, the term “Disability” means  the Committee’s determination, in its sole discretion, that the Participant has  incurred a  disability.  With respect to a Participant’s 409A Accounts, the term “Disability” means the  Participant by reason of any medically determinable physical or mental impairment, which  can be expected to result in death or can be expected to last for a continuous period of not less  than 12 months, either is unable to engage in any substantial gainful activity or is receiving  income replacement benefits for a period of at least 3 months under an accident and health  plan of an Employer.     2.11  Effective Date         The term “Effective Date” means January 1, 2013.  The term “Original Effective  Date” means September 5, 2000.    2.12  Eligible Employee         The term “Eligible Employee” means a highly compensated employee of an Employer  as described in subsection 3.1 of the Plan; provided that an Eligible Employee includes:  (i)  only individuals who are on an Employer’s U.S. payroll, and (ii) only a member of a select  group of highly compensated employees as defined in sections 201(2), 301(a)(3), and  401(a)(1) of ERISA.  However, an Eligible Employee who is transferred to employment with  an Affiliate either within or outside the United States shall remain an Eligible Employee for  all Plan purposes to the extent so designated by the Committee.     -3- 

 

   2.13  Employee         The term “Employee” means an individual who is employed by one of the Employers  as a common-law employee.   2.14  Employee Contributions         The term “Employee Contributions” means an Eligible Employee’s contributions to  the Plan as described in subsections 4.1 through 4.3.   2.15  Employer         The term “Employer” means the Company, a division of the Company, an Affiliate of  the Company, or a division of a Company Affiliate that adopts the Plan with the permission of  the Company.   2.16  Employer Contributions         The term “Employer Contributions” means Employer Make-Up Matching  Contributions, Employer Make-Up Pension Contributions, Employer Special Contributions,  and Employer 10% Target Contributions as described in subsections 4.4, 4.5, 4.6, and 4.7 of  the Plan.   2.17  Employer Make-Up Matching Contributions         The term “Employer Make-Up Matching Contributions” means the contributions by  the Employer described in subsection 4.4 of the Plan.   2.18  Employer Make-Up Pension Contributions         The term “Employer Make-Up Matching Contributions” means the contributions by  the Employer described in subsection 4.5 of the Plan.   2.19  Employer Special Contributions          The term “Employer Special Contributions” means the contributions by the Employer  described in subsection 4.6 of the Plan.   2.20  Employer 10% Target Contributions          The term “Employer 10% Target Contributions” means the contributions by the  Employer described in subsection 4.7 of the Plan.     2.21  ERISA         The term “ERISA” means the Employee Retirement Income Security Act of 1974, as  amended from time to time.  Reference to a specific section of ERISA shall include such  section, any valid regulation promulgated thereunder, and any comparable provision of any  future legislation amending, supplementing or superseding such section.    -4- 

 

   2.22  Forfeitures         The term “Forfeitures” means the amount by which a Participant’s Employer Make- Up Matching Contributions, Employer Make-Up Pension Contributions, Employer Special  Contributions, and Employer 10% Target Contributions are reduced under subsections 5.1 or  5.2 of the Plan.   2.23  Grandfathered Accounts         The term “Grandfathered Accounts” means Accounts that hold Employee  Contributions, and applicable earnings or losses, that relate to services rendered to an  Employer prior to January 1, 2005.    2.24  Investment Committee         The term “Investment Committee” means the Investment Committee appointed to  manage the investments, assets, and funding of executive retirement plans of the Company by  resolution of the Company’s Board of Directors.   2.25  Investment Fund         The term “Investment Fund” means an investment fund selected by the Investment  Committee under subsection 6.1.   2.26  Participant         The term “Participant” means an Eligible Employee who is participating in the Plan in  accordance with subsection 3.2.  By becoming a Participant, each Participant agrees to be  bound by the provisions of the Plan and the determinations of the Company and the  Committee hereunder.   2.27  Pension Plan         The term “Pension Plan” means the Amcor Rigid Plastics Pension Plan.   2.28  Plan         The term “Plan” means the Amcor Rigid Plastics Deferred Compensation Plan as set  forth herein and as it may be amended from time to time.   2.29  Plan Year         The term “Plan Year” means the calendar year.   2.30  Salary Deferral Contributions         The term “Salary Deferral Contributions” means the contributions by an Eligible  Employee described in subsection 4.2 of the Plan.     -5- 

 

   2.31  Savings Plan         The term “Savings Plan” means the Amcor Rigid Plastics Savings and Investment  Plan.   2.32  Savings Plan Employer Discretionary Matching Contributions         The term “Savings Plan Employer Discretionary Matching Contributions” means the  employer discretionary matching contributions (as defined in the Savings Plan) made under  the Savings Plan on behalf of each Employee eligible for such contribution.   2.33  Savings Plan New Employer Matching Contributions         The term “Savings Plan New Employer Matching Contributions” means the new  employer matching contributions (as defined in the Savings Plan) made under the Savings  Plan on behalf of each Employee eligible for such contribution.   2.34  Savings Plan Retirement Savings Contributions         The term “Savings Plan Retirement Savings Contributions” means the retirement  savings contributions (as defined in the Savings Plan) made under the Savings Plan on behalf  of each Employee eligible for such contribution.   2.35  Trust         The term “Trust” means any trust agreement established between the Company and  the Trustee which implements and forms a part of the Plan.  If plan contributions and benefits  are held and invested in a Trust, then such contributions and benefits are subject to the terms  of the Trust.   2.36  Trustee         The term “Trustee” means the trustee appointed under the Trust from time to time.   2.37  409A Accounts         The term “409A Accounts” means Accounts that hold Employee Contributions and  Employer Contributions, and applicable earnings or losses, that relate to services rendered to  the Employer on and after January 1, 2005.     -6- 

 

                                   SECTION 3                             Eligibility and Participation   3.1   Eligibility         Each Plan Year, the Committee will determine those Employees who are Eligible  Employees.  Eligible Employee generally means an Employee of an Employer whose  annualized base compensation and bonus is expected to exceed the limitations of Section  414(q) of the Code ($105,000, as adjusted from time to time) in the current year and who is  considered part of key management personnel.  An Employee may be an Eligible Employee to  make Employee Contributions, to receive Employer Make-Up Matching Contributions, to  receive Employer Make-Up Pension Contributions, to receive Employer Special  Contributions, or to receive Employer 10% Target Contributions, as the Committee  determines.   3.2   Participation         An Eligible Employee who is selected as eligible to make Employee Contributions to  the Plan shall commence participation in the Plan as of the later of the Eligible Employee’s  designation as an Eligible Employee or the date an Eligible Employee elects to make  Employee Contributions.  An Eligible Employee may elect to make Employee Contributions  to the Plan by filing an election with the Committee in accordance with Section 4.  Once an  Eligible Employee makes an election, the election remains in effect in accordance with  Section 4.         An Eligible Employee who is selected to receive Employer Make-Up Matching  Contributions, Employer Make-Up Pension Contributions,  Employer Special Contributions,  and/or Employer 10% Target Contributions shall commence participation in the Plan as of the  Eligible Employee’s designation as an Eligible Employee.  The fact that a Participant is  eligible to make Employee Contributions or to receive Employer Make-Up Matching  Contributions, Employer Make-Up Pension Contributions, Employer Special Contributions,  and/or Employer 10% Target Contributions (or a certain level of Employer Contributions) in  one Plan Year does not guarantee the Participant the right to make or receive such Employee  Contributions or Employer Contributions (or level of Employer Contributions) in any other  Plan Year.         The Committee may terminate or suspend the participation of any Eligible Employee  at any time.  However, except as provided in subsections 5.1 and 5.2, a Participant’s  suspension or termination from the Plan shall not reduce the Account balances of a  Participant.  An Eligible Employee shall cease to be a Participant when the Eligible  Employee’s employment is terminated with all Employers and their Affiliates and the Eligible  Employee’s vested Account balance is distributed to the Eligible Employee or the Eligible  Employee’s Beneficiaries.     -7- 

 

                                   SECTION 4                                   Contributions   4.1   Long-Term Incentive Plan Contributions         Prior to January 1, 2005, the Employers maintained the Amcor PET Packaging USA,  Inc. Long-Term Incentive Plan (“LTIP”).  An Eligible Employee who received long-term  incentive awards from the LTIP may have elected to defer all or a portion of such awards into  the Plan on or after the Plan’s Original Effective Date.  An Eligible Employee also may have  elected to defer into the Plan, by September 30, 2000, a stock appreciation rights payment  from the LTIP received as a result of a change in control.  Any such long-term incentive or  stock appreciation rights contributions are part of a Participant’s Grandfathered Account.   4.2   Salary Deferral Contributions         The Plan permits Salary Deferral Contributions of between 1% and 50% of an Eligible  Employee’s Compensation.  A newly designated Eligible Employee who is selected as  eligible to make Employee Contributions to the Plan may elect to make Salary Deferral  Contributions by making an election in accordance with the Committee’s procedures within  30 days of such eligibility, which election shall be effective on a prospective basis beginning  with the payroll period that occurs as soon as administratively feasible following completion  of the election.  All other Eligible Employees may elect Salary Deferral Contributions by  making an election in accordance with the Committee’s procedures by the December 15th  prior to the beginning of a Plan Year, which election shall be effective beginning the  following January 1.  All elections are effective for one Plan Year and are irrevocable for a  Plan Year once made.  However, if a Participant receives a hardship distribution under the  Savings Plan, such Participant’s Salary Deferral Contribution election shall automatically be  cancelled for the remainder of the calendar year in which the hardship distribution is received.   Such Participant’s Salary Deferral Contributions shall be suspended automatically for a period  of six months following receipt of the hardship distribution and such Participant may not  resume making Salary Deferral Contributions until the January 1 following the expiration of  the six-month suspension period.   4.3   Bonus Contributions         The Plan permits Bonus Contributions of between 1% and 100% of an Eligible  Employee’s bonus paid from an Employer’s U.S. payroll.  A newly designated Eligible  Employee who is selected as eligible to make Employee Contributions to the Plan may elect  to make Bonus Contributions by making an election in accordance with the Committee’s  procedures within 30 days of such eligibility, which election shall be effective on a  prospective basis beginning with the payroll period that occurs as soon as administratively  feasible following completion of the election.  All other Eligible Employees may elect Bonus  Contributions by making an election in accordance with the Committee’s procedures by  December 15th, which election shall be effective for bonuses earned during any Employer’s  fiscal year that ends after such date, provided that such election is made no later than six  months prior to the end of the service period to which it relates.  If an Eligible Employee is     -8- 

 

   awarded a bonus or incentive pay or an award under the Amcor PET Packaging Management  Incentive Plan, the Eligible Employee may elect to defer all or a portion of such award,  provided that such election is made in the manner prescribed by the Committee.  Such  election will be irrevocable once made.  Beginning on the January 1, 2005, a Participant’s  election to defer all or a portion of a performance-based bonus attributable to services  performed over a period of twelve months or more must be made no later than six months  prior to the end of such 12-month period.   4.4   Employer Make-Up Matching Contributions         Effective as of January 1, 2005, the Employer may, in its sole discretion, make a  contribution each Plan Year to Eligible Employees in the amount necessary to provide such  Participants with the employer matching contributions they will not receive under the Savings  Plan due to:  (i) the limitation of Section 401(a)(17) of the Code, (ii) the limitations of Section  415 of the Code, and (iii) the fact that a Participant’s Employee Contributions into this Plan  are not included as compensation for purposes of determining contributions under the Savings  Plan (“Employer Make-Up Matching Contributions”).  However, to receive Employer Make- Up Matching Contributions in a Plan Year, an Eligible Employee must contribute the  maximum amount allowable by law or the Employer under the Savings Plan.   4.5   Employer Make-Up Pension Contributions         Effective as of January 1, 2005 and prior to January 1, 2012, the Employer may, in its  sole discretion, make a contribution each Plan Year to Eligible Employees in the amount  necessary to provide such Participants with the approximate benefits they will not receive  under the Pension Plan due to:  (i) the limitations of Section 401(a)(17) of the Code, (ii) the  limitations of Section 415 of the Code, and (iii) the fact that a Participant’s Employee  Contributions into this Plan are not included as compensation for purposes of benefit accruals  under the Pension Plan (“Employer Make-Up Pension Contributions”).  The Employer may,  in its sole discretion, choose not to make such a contribution in any Plan Year for some or all  Participants.  The Employer may, in its sole discretion, chose to make a contribution in any  Plan Year for some or all Participants of less than the full amount necessary to make up the  Pension Plan benefits due to items (i) through (iii) above.  The following provisions and  assumptions shall govern the determination of a Participant’s Employer Make-Up Pension  Contributions:         (a)   For purposes of determining the amount of a Participant’s Employer Make-Up              Pension Contributions each Plan Year, the Employer shall assume that the              Participant will terminate employment and begin receiving benefits from the              Pension Plan at the later of age 60 or the Participant’s attainment of five years              of service (as defined in the Pension Plan), which benefits shall be assumed to              be reduced for early commencement unless the Participant has attained age 65              and completed 5 years of service.  If a Participant terminates employment after              age 55 and completion of 5 years of service but prior to age 60, the Participant              will receive a lesser amount of Employer Make-Up Pension Contributions than              if the Participant had remained employed until age 60.  If a Participant who is              eligible for Employer Make-Up Pension Contributions remains employed by    -9- 

 

               an Employer until age 60 and completion of 5 years of service, the Participant              will continue to receive Employer Make-Up Pension Contributions past such              date to account for the Participant’s service after such date.         (b)   For purposes of determining the amount of a Participant’s Employer Make-Up              Pension Contribution each Plan Year, the Employer will base contributions on              Compensation, the GAM 94 mortality table, and assumed Compensation              increases of inflation plus 1.5%, provided that all actuarial assumptions may              vary as the Committee determines advisable.  The Employer will              hypothetically assume that prior Employer Make-Up Pension Contributions on              behalf of such Participant will increase at an earnings rate specified by the              Committee, which as of January 1, 2005 equals the average of the 10-year              Treasury US government securities plus 2%, notwithstanding the fact that the              Participant’s Employer Make-Up Pension Contributions will be invested in the              investment funds selected by the Participant in accordance with subsection 6.2              of the Plan.         (c)   Employer Make-Up Pension Contributions for eligible Participants will be              fully funded by the Employer at the later of:  (i) the Participant’s attainment of              age 60, or (ii) the Participant’s completion of five years of service (as defined              under the Pension Plan).  However, if a Participant continues employment after              age 60, the Committee shall determine the procedures for future funding of              such Participant’s benefit.   4.6   Employer Special Contributions         The Employer may, in its sole discretion, make an additional Employer Special  Contribution in any Plan Year to Eligible Employees in any amount determined by the  Committee.   4.7   Employer 10% Target Contributions         Effective as of January 1, 2008, the Employer may, in its sole discretion, make a  contribution each Plan Year to Eligible Employees to provide such Participant with a  supplemental retirement savings contribution (“Employer 10% Target Contribution”).  A  Participant’s Employer 10% Target Contribution for the Plan Year shall equal 10% of the sum  of the Participant’s Compensation for the Plan Year, reduced by all of the following that are  paid or accrued (or deemed paid or accrued as described below) for the same Plan Year:         (a)   Savings Plan Retirement Savings Contributions;         (b)   Savings Plan New Employer Matching Contributions;         (c)   Savings Plan Employer Discretionary Matching Contributions; and         (d)   the Employer portion of the Social Security tax on the Eligible Employee's              Compensation for the Old-Age, Survivors and Disability Insurance (“OASDI”)     -10- 

 

               program, which amount is currently 6.2% of the Eligible Employee's              Compensation.     For purposes of items (b) and (c), the Participant shall be deemed to have made the maximum  employee contribution under the Savings Plan, and have received the maximum matching  contribution available under the Savings Plan based upon such deemed employee  contribution, regardless of the Participant’s actual contribution rate.      -11- 

 

                                   SECTION 5                              Accounting and Vesting   5.1   Vesting         Except as provided in subsection 5.2, a Participant will fully vest in his Plan Accounts  as follows:         (a)   A Participant will be fully vested at all times in the Participant’s own              Employee Contributions held in the Participant’s Accounts.         (b)   A Participant will fully vest in his Employer Special Contributions in his              Accounts upon completion of five years of service (as defined under the              Pension Plan).         (c)   A Participant will fully vest in his Employer 10% Target Contributions in his              Accounts as follows:               Years of                                        Vested              Service Percentage                            Less than 1                                        0%                 1                                             20%                 2                                             40%                 3                                             60%                 4                                             80%              5 or more                                       100%               Years of service used to determine vesting in Employer 10% Target              Contributions is defined under the Savings Plan.         (d)   A Participant will fully vest in his Employer Make-Up Matching Contributions              and Employer Make-Up Pension Contributions upon the later of:  (i) the              Participant’s attainment of age 55, or (ii) the Participant’s completion of 5              years of service (as defined under the Pension Plan).   In addition, all of a Participant’s Employer Contributions will fully vest upon the Participant’s  death or Disability while actively employed by an Employer.  Even if fully vested, a  Participant will not receive the entire amount of Employer Make-up Pension Contributions  deemed necessary to make up the Participant’s Pension Plan benefit if the Participant  terminates employment prior to age 60.  A Participant who terminates employment other than  by reason of death or Disability prior to vesting in his Employer Contributions shall forfeit  100% of his Employer Contributions.     -12- 

 

   5.2   Termination for Cause or Violation of Non-Compete Restrictions         Notwithstanding any provisions in the Plan to the contrary, any Participant terminated  for cause shall forfeit 100% of the Participant’s Accounts.  A Participant is terminated for  cause when, in the sole discretion of the Committee, such Participant is terminated as a result  of: (i) fraud, misappropriation, or embezzlement of Employer funds or property, or (ii) the  Participant’s intentional and material damage to the property of an Employer or an Affiliate.         In addition, any Participant who works for, counsels, advises, or otherwise assists a  person, entity or business that is a “competing business,” before or after the Participant’s  separation from service (within the meaning of Section 409A of the Code and the regulations,  notices and other guidance thereunder, including death) from an Employer, shall forfeit 100%  of the Participant’s Employer Contributions.  If the Participant has already received a partial  distribution of the Participant’s Employer Contributions when the Participant performs  services for a competing business, or when the Employer learns that the Participant performed  services for a competing business, the Participant shall forfeit 100% of any unpaid portion of  the Participant’s Employer Contributions.  For purposes of the Plan, a “competing business”  is any person’s, firm, corporation, or entity engaged in, or conducting business which is the  same as, or competing with, the business being conducted by the Company as determined in  the Committee’s discretion.     5.3   Forfeitures         All Forfeitures shall be used to reduce Employer Contributions for the current Plan  Year or succeeding Plan Years, or shall be used to pay reasonable administrative expenses of  the Plan.   5.4   Allocation of Employee Contributions and Employer Contributions         The total amount, if any, of Salary Deferral Contributions, Bonus Contributions,  Employer Make-Up Matching Contributions, Employer Make-Up Pension Contributions,  Employer Special Contributions, and Employer 10% Target Contributions for any Plan Year  made on behalf of a Participant will be allocated to the Participant’s Accounts periodically as  determined by the Committee.   5.5   Accounts         The Employer shall establish and maintain one or more Accounts described in  subsection 5.4 in the name of each Participant.  Grandfathered Accounts will remain separate  from 409A Accounts.  Except as otherwise specifically provided herein, Employer  Contributions shall be held in 409A Accounts.  Beginning in 2007, the Plan shall use class- year accounting, and contributions made by or on behalf of each Participant shall be held in  separate subaccounts within the Participant’s 409A Accounts.  Each Participant’s Accounts  will be credited with earnings, losses, distributions and contributions as of each accounting  date established by the Investment Committee.  All amounts which are credited to a  Participant’s Accounts shall be credited solely for purposes of accounting and computation  and shall remain Employer assets subject to the claims of the Employer’s general creditors.  A     -13- 

 

   Participant shall have an interest or right in the Participant’s Accounts only as provided under  the Plan.     -14- 

 

                                   SECTION 6                              Funding and Investments   6.1   Trust Fund         The Trust shall hold all assets of the Plan.  The Trust shall consist of such investments  or funds as the Investment Committee shall determine from time to time.  Pending  investment, reinvestment or distribution of assets, the Trustee may temporarily retain assets of  any Investment Fund in cash, commercial paper, short-term obligations, or common or  collective short-term investment funds.  The Investment Committee may direct the Trustee to  establish or terminate an Investment Fund as it shall from time to time consider appropriate.   6.2   Investment Fund Elections         A Participant may elect to invest all or a portion of the Participant’s Account in one or  more Investment Funds selected by the Investment Committee.  A Participant also may elect  to change or transfer the Participant’s Account balances to one or more other Investment  Funds.  All investment elections shall be made at the time and in the manner prescribed by the  Investment Committee and shall be effective only at the Investment Committee’s discretion  and as prescribed by the Investment Committee.  A Participant will have the opportunity to  make two separate investment elections:  (i) one with respect to the Participant’s Employer  Contributions, and (ii) one with respect to the Participant’s Employee Contributions.     6.3   Expenses         The Investment Committee shall determine whether expenses incurred in  administering the Plan shall be paid from the Trust or by the Employers in such proportions  and allocations as the Investment Committee determines.     -15- 

 

                                   SECTION 7                            Timing and Form of Payment   7.1   Participant’s Grandfathered Accounts         A Participant may elect the timing and form of payment for the Participant’s  Grandfathered Accounts by completing a benefit election form prescribed by the Committee.   A Participant may elect to receive the Participant’s Grandfathered Accounts as of:  (i)  the  Participant’s termination of employment, or (ii) a specified date elected by the Participant.  If  a Participant terminates service from all Employers and their Affiliates prior to retirement, the  Participant will receive a distribution of the Participant’s Grandfathered Account in a lump  sum.  If a Participant requests a distribution prior to service termination, or if a Participant  terminates service due to retirement or Disability, a Participant’s Grandfathered Account may  be distributed in:                (i)   a lump sum, or               (ii)  substantially equal annual installments payable at the Participant’s                    election over a one-year to ten-year period specified by the Participant.         The benefit election form will be valid as to all amounts in a Participant’s  Grandfathered Accounts unless the Participant alters the Participant’s benefit election form,  provided that a Participant must submit a revised benefit election form at least 12 months  prior to a distribution.  If a Participant fails to make a selection among the available forms of  payment, the Participant shall receive payment in a lump sum.  The Committee shall  determine if a Participant’s termination is due to retirement or Disability.     7.2   Employee Contributions in 409A Accounts         Prior to the allocation of Employee Contributions to the Participant’s 409A Accounts,  a Participant must elect the timing and form of payment for such Employee Contributions  from the Participant’s 409A Accounts by completing a distribution election form in  accordance with procedures prescribed by the Committee (the “Initial Election”).  Beginning  with contributions for 2007, a Participant shall make a separate distribution election for each  year of Employee Contributions.  A Participant may elect that the Employee Contributions in  the Participant’s 409A Accounts be distributed upon the earlier of:  (i) the first day of the  seventh month following the Participant’s separation from service (within the meaning of  Section 409A of the Code and the regulations, notices and other guidance thereunder,  including death) from the Employer, or (ii) a specific date elected by the Participant.  The  Employee Contributions in a Participant’s 409A Accounts may be distributed in:               (i)   a lump sum, or               (ii)  substantially equal annual installments payable at the Participant’s                    election over a two-year to ten-year period specified by the Participant.                     For purposes of the Plan, a series of installment payments shall be     -16- 

 

                     treated as a single payment in accordance with the regulations under                    Section 409A of the Code.         The Initial Election will apply to distributions of all Employee Contributions made  prior to January 1, 2007, and applicable earnings or losses, in a Participant’s 409A Accounts  unless the Participant executes another benefit election form (a “Second Election”), subject to  the following provisions:                (i)   a Second Election will not take effect until twelve months after the date                    on which the Second Election is made,                (ii)  the payment date selected on a Second Election must be a date not less                    than five years from the date such payment would otherwise have been                    made under the Initial Election,                (iii) a Second Election must be made at least twelve months prior to the date                    of the first scheduled payment under the Initial Election,               (iv)  a Second Election may not accelerate payment of the Employee                    Contributions in a Participant’s 409A Accounts, and               (v)   a Second Election may only designate distribution payment forms                    described above.   Notwithstanding the foregoing, a Participant shall not be entitled to make a Second Election  with respect to any Employee Contributions made on or after January 1, 2007.  If a Participant  fails to make a selection among the available forms of payment, the Participant shall receive  payment of Employee Contributions in the Participant’s 409A Accounts in a lump sum on the  first day of the seventh month following the Participant’s separation from service.  Beginning  January 1, 2007, Participants may modify their elections for 2005 and 2006 Employee  Contributions in their 409A Accounts with respect to the form and timing of payment of such  contributions, but such modifications are subject to the restrictions applicable to Second  Elections that are described above.   7.3   Employer Contributions in 409A Accounts         Upon being selected by the Committee to receive Employer Contributions, a  Participant will elect the form of payment for the Participant’s Employer Contributions held  in the Participant’s 409A Accounts by completing a distribution election form in accordance  with procedures prescribed by the Committee.  Beginning with 2007 contributions, a  Participant shall make a separate distribution election form for each year of Employer  Contributions.  A Participant’s Employer Contributions held in the Participant’s 409A  Accounts shall be distributed upon the first day of the thirteenth month following Participant’s  separation from service (within the meaning of Section 409A of the Code and the regulations,  notices and other guidance thereunder, including death) from the Employer.  The Employer  Contributions in a Participant’s 409A Accounts may be distributed in:      -17- 

 

               (i)   a lump sum, or                (ii)  substantially equal annual installments payable at the Participant’s                    election over a two-year to ten-year period specified by the Participant.                     For purposes of the Plan, a series of installment payments shall be                    treated as a single payment in accordance with the regulations under                    Section 409A of the Code.     Once such election is made, neither the Participant nor the Employer may change the timing  or form of distribution of a Participant’s Employer Contributions held in the Participant’s  409A Accounts.  If a Participant fails to make a payment election, the Participant shall receive  payment of Employer Contributions in a lump sum.   7.4   Hardship Distributions         A Participant may receive a distribution from the Participant’s vested Accounts for  hardship reasons, provided the Participant has suffered an Unforeseeable Financial  Emergency (as defined below).  The Committee may request such evidence of a hardship as it  deems necessary.  All hardship distributions will be made in a lump sum within 90 days  following the Participant’s hardship request; provided, however, that hardship distributions  shall be paid from 409A Accounts prior to payment from Grandfathered Accounts.  The  following rules shall apply to a hardship distribution:          (a)   An “Unforeseeable Financial Emergency” is a severe financial hardship to the              Participant resulting from: (i) a sudden and unexpected illness or accident of              the Participant or of a dependent of the Participant, (ii) loss of the Participant’s              property due to casualty, or (iii) such other similar extraordinary and              unforeseeable circumstances arising as a result of events beyond the control of              the Participant.         (b)   The amount of hardship distribution on behalf of an Unforeseeable Financial              Emergency will be reduced to the extent that it is or may be relieved:  (i)              through reimbursement or compensation by insurance or otherwise, or (ii) by              liquidation of the Participant’s assets, to the extent the liquidation of such              assets would not itself cause severe financial hardship.         (c)   The determination of whether a Participant has suffered an Unforeseeable              Financial Emergency, and the amount of payment to which the Participant is              entitled, shall be determined by the Committee based on all of the relevant              facts and circumstances.   If a Participant receives a hardship distribution from the Plan, then the Participant’s Employee  Contributions shall be suspended for the remainder of the calendar year in which such  distribution occurred.     -18- 

 

   7.5   Payments After Death         If a Participant dies before receiving the entire balance of the Participant’s Accounts,  the remaining balance in the Participant’s Accounts shall become 100% vested and shall be  paid to the Participant’s Beneficiaries designated in accordance with procedures prescribed by  the Committee.  Payment of the remaining balance of the Participant’s Accounts shall be  made in a single lump sum within 90 days following the date on which the Committee is  notified of the Participant’s death.     7.6   Payments Upon Disability         Notwithstanding a Participant’s elections and any provision of the Plan to the contrary,  all Accounts that have not yet commenced distribution shall automatically be distributed to a  Participant as soon as administratively practicable following the Participant’s Disability as  defined under subsection 2.10.  Upon Disability, a Participant will receive distribution of the  Participant’s Grandfathered Accounts either in:               (i)   a lump sum; or               (ii)  substantially equal annual installments payable at the Participant’s                    election over a two-year to ten-year period specified by the Participant.   If a Participant wishes to make changes to any Disability distribution election form with  respect to the Participant’s Grandfathered Accounts, such changes must comply with the rules  contained in subsection 7.1.  Upon a Participant’s Disability, the Participant’s 409A Accounts  shall be distributed to the Participant in accordance with the forms of payment elected on the  Participant’s distribution election form applicable to each year of contributions.  If a  Participant wishes to make changes to any Disability distribution election form with respect to  the Employee Contributions in the Participant’s 409A Accounts, such changes must comply  with the rules contained in subsection 7.2.    7.7   Special Distribution Rules for 409A Accounts         If the Company or Affiliate’s deduction for payment of all or any portion of to a  Participant’s 409A Accounts would be limited or eliminated by the application of Section  162(m) of the Code, then the Plan will defer payment of such Participant’s 409A Accounts  either (i) to a date in the first year in which the Company or the Committee reasonably  anticipates that such payment will not result in a deduction limitation under Section 162(m)   or (ii) to the year in which the Participant’s separation from employment occurs.  If payment  of all or any portion of the Participant’s 409A Accounts would violate securities or other  applicable laws, or would violate loan covenants or other contractual terms to which the  Company or an Affiliate is a party and such violation would result in material harm to the  Company or an Affiliate, then payment of the Participant’s 409A Accounts will be made in  the first calendar year: (i) in which the Company or Committee reasonably anticipates that the  payment would not violate loan or other similar contractual terms and would not result in  material harm to the Company or an Affiliate, and (ii) in which the payment would not result  in a violation of securities or other applicable laws.  Plan payments intended to pay  employment taxes, or made as a result of income inclusion of an amount of a Participant’s    -19- 

 

   benefit as a result of a failure to satisfy Section 409A of the Code, shall be permitted at the  Company or Committee’s discretion at any time to the extent provided in Treasury  Regulations under Section 409A of the Code and IRS Notice 2005-1, Q&A-15, and any  applicable subsequent guidance.  “Employment taxes” shall include the Federal Income  Contributions Act (FICA) tax imposed under Sections 3101 and 3121(v)(2) of the Code on  compensation deferred under the Plan (the “FICA Amount”), the income tax imposed under  Section 3401 of the Code on the FICA Amount, and any amounts utilized to pay the  additional income tax under Section 3401 of the Code attributable to the pyramiding Section  3401 wages and taxes.  If any applicable payment period begins in one Plan Year and ends in  the following Plan Year, the Participant or the Participant’s Beneficiary (as the case may be)  shall not have the right to designate the year of the payment.   7.8   Designation of Beneficiary         A Participant may, by completing a Beneficiary designation form in accordance with  procedures prescribed by the Committee, designate one or more primary and contingent  Beneficiaries (which may include a trust or an estate) to receive the Participant’s Account  balance following the Participant’s death and may designate the proportions in which such  Beneficiaries receive payments.  A Participant’s Beneficiary designation shall apply to all of  his Accounts under the Plan.  A Participant may change such designations from time to time,  and the last designation filed prior to the Participant’s death shall control.  If no Beneficiary  designation form was filed by the Participant prior to the Participant’s death, the Participant’s  remaining Account balance will be paid to the Participant’s estate.     7.9   Facility of Payment         Any amounts payable under the Plan to a Participant or Beneficiary who is under a  legal disability or who, in the judgment of the Committee, is unable to manage such person’s  affairs, may be paid to the legal representative of such person or may be applied for the  benefit of such person in any manner the Committee shall select.   7.10  Unclaimed Benefits         If a Participant or Beneficiary’s whereabouts are unknown to the Employer, and if the  Participant or the Participant’s Beneficiary fails to claim the Participant’s benefits within two  years following termination of the Participant’s employment, the Committee may elect to  make payment of the Participant or Beneficiary’s vested benefits as if they had died.  If the  Employer is unable to locate the Participant or any Beneficiary within three years following  the Participant’s employment termination, the Participant and all of the Participant’s  designated Beneficiaries shall forfeit all benefits irrevocably.     -20- 

 

                                   SECTION 8                           Nature of Interest of Participant         Participation in this Plan will not create, in favor of any Participant, any right or lien in  or against any of the assets of any Employer, and a Participant’s Account balances shall  remain an unrestricted asset of the Participant’s Employer.  A Participant’s rights to benefits  payable under the Plan are not subject in any manner to anticipation, alienation, sale, transfer,  assignment, pledge, or encumbrance.  All payments hereunder shall be paid in cash from the  general funds of the applicable Employer and no special or separate fund shall be established  and no other segregation of assets shall be made to assure the payment of benefits hereunder.   Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or  be construed to create a trust of any kind, or a fiduciary relationship, between any Employer  and a Participant or any other person, and each Employer’s promise to pay benefits hereunder  shall at all times remain unfunded as to the Participant.     -21- 

 

                                   SECTION 9                                  Administration   9.1   Committee         This Plan will be administered by the Committee.   9.2   Powers of the Administrative and Investment Committees         The Committee’s powers will include, but will not be limited to, the power:         (a)   to interpret, in its sole discretion, the terms and provisions of the Plan and to              determine any and all questions arising under the Plan, including without              limitation, the right to remedy possible ambiguities, inconsistencies, or              omissions by a general rule or particular decision,          (b)   to adopt such rules of procedure and regulations as in its opinion may be              necessary for the proper and efficient administration of the Plan and as are              consistent with the Plan and Trust agreement,            (c)  to enforce the Plan in accordance with the terms of the Plan and the              Trust and in accordance with the rules and regulations the Committee              has adopted,         (d)   to direct the Trustees as respects payments or distributions from the              Trust in accordance with the provisions of the Plan,         (e)   to furnish the Employers with such information as may be required by              them for tax or other purposes in connection with the Plan, and         (f)   to employ agents, attorneys, accountants, actuaries or other persons (who also              may be employed by the Employers) and to allocate or delegate to them such              powers, rights and duties as the Committee may consider necessary or              advisable to properly carry out administration of the Plan, provided that such              allocation or delegation and the acceptance thereof by such agents, attorneys,              accountants, actuaries or other persons, shall be in writing.         The Investment Committee’s powers will include, but will not be limited to, the power  to exercise full authority and control with respect to the appointment of trustees and  investment managers and the investment of Plan assets generally.     9.3   Withholding         The Employers shall have the right to deduct from any payment to be made under the  Plan any federal, state, or local taxes required by law to be withheld.     -22- 

 

   9.4   Retirement Claims Procedures         To the extent that a Participant’s claim relates to a determination with respect to his  Accounts, other than a Disability determination, the Committee will provide the Participant  with notice of the status of his claim for retirement benefits within a reasonable period of time  after a complete claim has been filed, but no later than 90 days after receipt of the  Participant’s benefit claim.  The Committee may request an additional 90 day extension if  special circumstances warrant by notifying the Participant of the extension before the  expiration of the initial 90 day period.  If the Participant has not submitted sufficient  information to the Committee to process the Participant’s retirement benefit claim, the  Participant will be notified of the incomplete claim and given 90 days to submit additional  information.  This will extend the time in which the Committee has to respond to the  Participant’s claim from the date the notice of insufficient information is sent to the  Participant until the date the Participant responds to the request.  If the Participant does not  submit the missing information to the Committee within 90 days of the date of the request, the  claim will be denied.  If the Participant’s benefit claim is denied, the Participant will receive a  notice which will include: (i) the specific reasons for the denial, (ii) reference to the specific  Plan provisions upon which the decision is based, (iii) a description of any additional  information the Participant might be required to provide with an explanation of why it is  needed, (iv) an explanation of the Plan’s claims review and appeal procedures, and (v) a  statement regarding the Participant’s right to bring a civil action under Section 502(a) of  ERISA following a denial on appeal.           The Participant may appeal a denial of a retirement benefit claim by filing a written  request with the Committee within 60 days of receipt of the initial denial notice.  In  connection with the appeal, the Participant may request that the Committee provide, free of  charge, copies of all documents, records, and other information relevant to the claim.  The  Participant may also submit written comments, records, documents, and other information  relevant to the appeal, whether or not such documents were submitted in connection with the  initial claim.  The Committee will conduct a full and fair review of the documents and  evidence submitted and will ordinarily render a decision on the Participant’s benefit claim no  later than 60 days after receipt of the request for review on appeal.  If there are special  circumstances, the decision will be made as soon as possible, but not later than 120 days after  receipt of the request for review on appeal.  If such an extension of time is needed, the  Participant will be notified in writing prior to the end of the first 60 day period.  The  Committee’s final written decision will set forth: (i) the specific reasons for the decision, (ii)  references to the specific Plan provisions on which the decision is based, (iii) a statement that  the Participant is entitled to receive, upon request and free of charge, access to and copies of  all documents, records, and other information relevant to the benefit claim due to Disability,  and (iv) a statement regarding the Participant’s right to bring a civil action under Section  502(a) of ERISA following a denial on appeal.      9.5   Disability Claims Procedures         To the extent that a Participant’s claim relates to a Disability determination with  respect to his Accounts, the Committee will provide the Participant with notice of the status of  his claim for Disability benefits within a reasonable period of time after a complete claim has    -23- 

 

   been filed, but no later than 45 days after receipt of the Participant’s benefit claim.  The  Committee may request an additional 30 day extension if special circumstances warrant by  notifying the Participant of the extension before the expiration of the initial 45 day period.  If  a decision still cannot be made within this 30 day extension period due to circumstances  outside the Committee’s control, the time period may be extended for an additional 30 days,  in which case the Participant will be notified before the expiration of the original 30 day  extension.  If the Participant has not submitted sufficient information to the Committee to  process the Participant’s Disability claim, the Participant will be notified of the incomplete  claim and given 45 days to submit additional information.  This will extend the time in which  the Committee has to respond to the Participant’s claim from the date the notice of  insufficient information is sent to the Participant until the date the Participant responds to the  request.  If the Participant does not submit the missing information to the Committee within  45 days of the date of the request, the claim will be denied.  If the Participant’s benefit claim  is denied, the Participant will receive a notice which will include: (i) the specific reasons for  the denial, (ii) reference to the specific Plan provisions upon which the decision is based, (iii)  a description of any additional information the Participant might be required to provide with  an explanation of why it is needed, (iv) an explanation of the Plan’s claims review and appeal  procedures, and (v) a statement regarding the Participant’s right to bring a civil action under  Section 502(a) of ERISA following a denial on appeal.           The Participant may appeal a denial of a Disability benefit claim by filing a written  request with the Committee within 180 days of receipt of the initial denial notice.  In  connection with the appeal, the Participant may request that the Committee provide, free of  charge, copies of all documents, records, and other information relevant to the claim.  The  Participant may also submit written comments, records, documents, and other information  relevant to the appeal, whether or not such documents were submitted in connection with the  initial claim.  The Committee may consult with medical or vocational experts in connection  with Disability claim.  The Committee will conduct a full and fair review of the documents  and evidence submitted and will ordinarily render a decision on the Participant’s benefit claim  no later than 45 days after receipt of the request for review on appeal.  If there are special  circumstances, the decision will be made as soon as possible, but not later than 90 days after  receipt of the request for review on appeal.  If such an extension of time is needed, the  Participant will be notified in writing prior to the end of the first 45 day period.  The  Committee’s final written decision will set forth: (i) the specific reasons for the decision, (ii)  references to the specific Plan provisions on which the decision is based, (iii) a statement that  the Participant is entitled to receive, upon request and free of charge, access to and copies of  all documents, records, and other information relevant to the benefit claim due to Disability,  and (iv) a statement regarding the Participant’s right to bring a civil action under Section  502(a) of ERISA following a denial on appeal.     9.6   Liability         No member of the Administrative or Investment Committees shall be liable for any act  of commission or omission in connection with the administration of the Plan, except in  circumstances involving bad faith, gross misconduct, or fraud.  Except in such instances, the  Employers shall fully indemnify, defend and hold harmless the Administrative or Investment  Committees members from any and all damages, losses, or costs (including reasonable    -24- 

 

   attorneys’ fees) that occur by reason of, arise out of, or are incidental to the implementation or  administration of the Plan.   9.7   Finality of Committee Determinations         Determinations by the Committee or Investment Committees and any interpretation,  rule, or administrative decision adopted by the Committee or Investment Committees shall be  final and binding for all Plan purposes and upon all interested persons, their heirs, and their  personal representatives.  No action at law or in equity shall be brought to recover benefits  under the Plan until the claim and review processes in this Section have been exercised and  until the Plan benefits requested in such review have been denied in whole or in part.  If any  judicial proceeding is undertaken to appeal the denial of a claim or bring any other action  under ERISA, other than a breach of fiduciary duty claim, the evidence presented shall be  strictly limited to the evidence timely presented to the Committee.   If the Committee denies a  Participant’s appeal in whole or in part, and the Participant subsequently wishes to file a claim  against the Plan, any such legal action must be brought within 120 days of the Committee’s  final decision.  Benefits will be paid only if the Committee decides a Participant or  Beneficiary is entitled to them.   9.8   Governing Law         To the extent this Plan is not preempted by ERISA, the Plan shall be governed by laws  of the State of Delaware.     -25- 

 

                                   SECTION 10                               No Employment Rights         No provisions of the Plan or any action taken by the Company, the Board of Directors,  the Committee, or the Investment Committee shall give any person any right to be retained in  the employ of any Employer, and the right and power of an Employer to dismiss or discharge  any Participant is specifically reserved.     -26- 

 

                                   SECTION 11                                 Change in Control   11.1  Amounts Held in Grandfathered Accounts         In the event that the stock or substantially all the assets of an Employer, its subsidiary,  or one of its divisions is sold, or if a majority of the beneficial ownership of an Employer,  subsidiary, or one of its divisions alters (“Change in Control”), the Grandfathered Accounts of  Participants affected by such sale shall become immediately due and payable unless a  successor of the Employer assumes the liabilities and responsibilities relating to the affected  Participants.    11.2  Amounts Held in 409A Accounts         In the event that there is a change in ownership of the Employer, a change in effective  control of the Employer, or a change in the ownership of a substantial portion of the assets of  the Employer, as defined in Code Section 409A and the regulations thereunder (collectively, a  “Change in Control Event”), the 409A Accounts of Participants affected by such Change in  Control Event shall become 100% vested and shall be immediately due and payable in a lump  sum.      -27- 

 

                                   SECTION 12                      Amendment, Suspension, and Termination         The Board of Directors, by resolution duly adopted, shall have the right to amend,  suspend, or terminate the Plan at any time, provided that the Board may delegate all or a  portion of such rights to the Committees or to any specified person or persons.  No  amendment, modification, or termination shall, without the consent of a Participant, reduce  the Participant’s vested Account balance.  In the event the Plan is terminated, the Committee  shall continue to administer the Plan in accordance with the relevant provisions thereof.                                  * * *         IN WITNESS WHEREOF, the Company has caused this amended and restated Plan to  be executed by a duly authorized member of the Committee as of this ____ day of  _________________, 2013.               AMCOR RIGID PLASTICS USA, INC.                                            EMPLOYEE BENEFITS                                            ADMINISTRATIVE COMMITTEE                                       ______________________________                      DM_US 47411246-1.066066.0017      -28-Document

Exhibit 4.9
Coty Inc.
Description of Securities 
        The rights of our stockholders are governed by Delaware General Corporation Law (“DGCL”), our amended and restated certificate of incorporation, as amended (our “Certificate of Incorporation”), and our amended and restated by-laws (our “By-laws”). 
        The following is a summary of the material terms and provisions of our capital stock and is qualified in its entirety by reference to our Certificate of Incorporation and the amendments thereto and our By-laws , which are incorporated by reference herein and attached as an exhibit to our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, and to the applicable provisions of the DGCL. This summary does not purport to be complete and may not contain all the information that is important to you. 

Authorized Capital Stock
Under our Certificate of Incorporation, our authorized capital stock consists of 1,250,000,000 shares of Class A Common Stock, par value $0.01 per share, and 20,000,000 shares of Preferred Stock, par value $0.01 per share. 
Registered Securities 
Our Class A Common Stock is registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, and is listed on the New York Stock Exchange under the symbol “COTY”.
Class A Common Stock
Dividend Rights
Holders of our Class A Common Stock are entitled to receive dividends, as and when declared by our board of directors (the “Board”), out of our legally available assets, in cash, property, shares of our Class A Common Stock or other securities, after payments of dividends required to be paid on outstanding Preferred Stock, if any.
Voting Rights
Holders of our Class A Common Stock are entitled to one vote per share on all matters submitted to a vote of our stockholders, unless otherwise required by our Certificate of Incorporation or By-laws. At all meetings of the stockholders at which a quorum is present, except as otherwise required by law, the Certificate of Incorporation or the By-laws, any question brought before any meeting of stockholders other than the election of directors, shall be decided by the affirmative vote of the holders of a majority of the votes cast. Elections of directors shall be decided by a plurality of the votes cast.
Stockholder Action by Written Consent
Any action that can be taken at a meeting of the stockholders may be taken by written consent in lieu of the meeting if we receive consents signed by stockholders having the minimum number of votes that would be necessary to approve the action at a meeting at which all shares entitled to vote on the matter were present.
Right to Receive Liquidation Distributions
Upon our liquidation, dissolution or winding up, the assets legally available for distribution to our stockholders will be distributable ratably among the holders of Class A Common Stock, subject to prior satisfaction of all outstanding debts and other liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding Preferred Stock.
Amendment of Certificate of Incorporation and By-laws
Our Board and our stockholders are authorized to adopt, amend or repeal our By-laws. The approval of our Board is required to amend our Certificate of Incorporation. In addition, Section 242(b)(2) of the DGCL requires that holders of our Class A Common Stock vote as a class upon the proposed amendment, if the amendment would increase or decrease the par value of the shares of Class A Common Stock, or alter or change the powers, preferences or special rights of the Class A Common Stock so as to affect them adversely.
No Preemptive or Similar Rights

Shares of our Class A Common Stock are not entitled to preemptive rights and are not convertible into any other shares of our capital stock.
Preferred Stock
We are authorized, subject to the limits imposed by the DGCL, to issue Preferred Stock in one or more series, to establish from time to time the number of shares to be included in each series and to fix the designation, powers, rights, preferences and privileges of the shares of each such series and any of the qualifications, limitations or restrictions thereof. Our Board can also increase or decrease the number of shares of any series, but not below the number of shares of a given series then outstanding, plus the number of shares reserved for issuance upon the exercise or vesting of outstanding securities convertible into the applicable series of Preferred Stock, by the affirmative vote of the holders of a majority of the shares of Coty stock entitled to vote, unless a vote of any other holders is required pursuant to a certificate or certificates of designation establishing a series of Preferred Stock, without any further vote or action by our stockholders.
The rights of holders of Class A Common Stock are subject to, and may be adversely affected by, the rights of the holders of any shares of Preferred Stock that may be issued in the future. Our Board may authorize the issuance of Preferred Stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of Class A Common Stock. The issuance of Preferred Stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a future change in control of the Company and may adversely affect the market price of Class A Common Stock and the voting and other rights of the holders of Class A Common Stock.
Series A Preferred Stock
In fiscal year 2015, we established awards under our Equity and Long-Term Incentive Plan and certain of our executive officers received awards of our Series A Preferred Stock. In April 2015, we filed a Certificate of Designations with the Secretary of State of the State of Delaware, establishing the voting rights, powers, preferences and privileges, and the relative, participating, optional or other rights, and the qualifications, limitations or restrictions thereof, with respect to our Series A Preferred Stock, which various and several voting powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions thereof may be severally set forth in various subscription agreements relating to the issuance and sale of the Series A Preferred Stock (each, a “Series A Subscription Agreement”). Under the terms provided in the various Series A Subscription Agreements, a holder of Series A Preferred Stock may be entitled to exchange any or all vested Series A Preferred Stock prior to varying dates specified in the Series A Subscription Agreements, into, at our sole election, either cash or shares of Class A Common Stock, as calculated and subject to the limitations set forth therein.
Shares of Series A Preferred Stock are not entitled to receive any dividends and have no voting rights, except as required by law. Upon our liquidation, dissolution or winding up, each share of Series A Preferred Stock entitles the holder to receive out of our assets available for distribution to stockholders, after satisfaction of liabilities to creditors and subject to the rights of senior securities, an amount in cash per share equal the then fair market value per share of such Series A Preferred Stock as determined by an independent qualified professional appraisal firm. Such shares will not be entitled to an additional amount after the full liquidation distribution has been paid.
 Series A-1 Preferred Stock
In fiscal year 2019, we granted awards of our Series A-1 Preferred Stock in connection with grants under our Elite stock investment program. In February 2019, we filed a Certificate of Designations with the Secretary of State of the State of Delaware, establishing the voting rights, powers, preferences and privileges, and the relative, participating, optional or other rights, and the qualifications, limitations or restrictions thereof, with respect to our Series A-1 Preferred Stock, which various and several voting powers, preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions thereof is set forth in a subscription agreement relating to the issuance and sale of the Series A-1 Preferred Stock (the “Series A-1 Subscription Agreement”). Under the terms provided in the Series A-1 Subscription Agreement, a holder of Series A-1 Preferred Stock is entitled to exchange any or all vested Series A-1 Preferred Stock prior to varying dates specified in the Series A-1 Subscription Agreement, into, at our sole election, either cash or shares of Class A Common Stock, as calculated and subject to the limitations set forth therein.
Shares of Series A-1 Preferred Stock are not entitled to receive any dividends and have no voting rights, except as required by law. Upon our liquidation, dissolution or winding up, each share of Series A-1 Preferred Stock entitles the holder to receive out of our assets available for distribution to stockholders, after satisfaction of liabilities to creditors and subject to the rights of senior securities, an amount in cash per share equal to $0.10. Such shares will not be entitled to an additional amount after the full liquidation distribution has been paid.

Series B Convertible Preferred Stock

In May 2020, we filed a Certificate of Designations with the Secretary of State of the State of Delaware, establishing the voting rights, powers, preferences and privileges, and the relative, participating, optional or other rights, and the qualifications, limitations or restrictions thereof, with respect to our Series B Convertible Preferred Stock.

Preferential Rights. The Series B Convertible Preferred Stock ranks senior to the shares of Class A Common Stock and the Company’s other outstanding series of preferred stock as of the date of this Annual Report and will rank senior to any other future series of capital stock the terms of which do not expressly provide that such series rank on a parity basis or senior to the Series B Convertible Preferred Stock with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. 

Dissolution. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, the Holders shall be entitled, out of assets legally available therefor, before any distribution or payment out of the assets of the Company may be made to or set aside for the holders of any junior stock, and subject to the rights of the holders of any senior stock or parity stock and the rights of the Company’s existing and future creditors, to receive in full a liquidating distribution in cash and in the amount per share of Series B Convertible Preferred Stock equal to the greater of (i) the sum of (A) the liquidation preference plus (B) the accrued dividends with respect to such share of Series B Convertible Preferred Stock as of the date of such voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company and (ii) the amount such Holders would have received had such Holders, immediately prior to such voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company, converted such shares of Series B Convertible Preferred Stock into Class A Common Stock.

Dividends. Holders of the Series B Convertible Preferred Stock are entitled to a dividend at the rate of 9.0% per annum, accruing daily and payable quarterly in arrears; the dividend rate shall increase by 1.0% on the seven (7) year anniversary of May 26, 2020 and shall increase by an additional 1.0% on each subsequent anniversary up to a maximum of 12.0%. If the Company does not declare and pay a dividend on the Series B Convertible Preferred Stock on any dividend payment date, the dividend rate will increase by 1% per annum until all accrued but unpaid dividends have been paid in full. Dividends will be payable in cash, by increasing the amount of accrued dividends with respect to a share of Series B Convertible Preferred Stock, or any combination thereof, at the sole discretion of the Company. 

Conversion. The Series B Convertible Preferred Stock will be convertible, in whole or in part, at any time at the option of the Holders thereof into shares of Class A Common Stock at an initial conversion price of $6.24 per share of Series B Convertible Preferred Stock and an initial conversion rate of 160.2564 shares of Class A Common Stock per share of Series B Convertible Preferred Stock, subject to certain anti-dilution adjustments set forth in the Certificate of Designations, filed with the Secretary of State of the State of Delaware on May 26, 2020, designating the Series B Convertible Preferred Stock (the “Certificate of Designations”). At any time after the third anniversary of May 26, 2020, if the volume weighted average price of the Class A Common Stock exceeds the then applicable conversion rate, as may be adjusted pursuant to the Certificate of Designations, for at least 20 trading days in any period of 30 consecutive trading days, at the election of the Company, all or any portion of the Series B Convertible Preferred Stock will be convertible into the relevant number of shares of Class A Common Stock. Pursuant to the terms of the Certificate of Designations, unless and until approval of the Company’s stockholders is obtained as contemplated by NYSE listing rule 312.03(d) (the “Stockholder Approval”), no Holder of Series B Convertible Preferred Stock will have the right to acquire shares of Class A Common Stock if and solely to the extent that such conversion would result in such Holder beneficially owning a number of shares of Class A Common Stock that could trigger a change of control under NYSE listing rules (such limitation, the “Ownership Limitation”). The Company has the right to settle any conversion over the Ownership Limitation of a Holder of Series B Convertible Preferred Stock in cash if the Stockholder Approval is not obtained. 

Voting Rights. Holders of the Series B Convertible Preferred Stock will be entitled to a separate class vote with respect to, among other things, amendments to the Company’s organizational documents that have an adverse effect on the Series B Convertible Preferred Stock, authorizations or issuances by the Company of securities that are senior to, or equal in priority with, the Series B Convertible Preferred Stock, increases or decreases in the number of authorized shares of Series B Convertible Preferred Stock and issuances of shares of Series B Convertible Preferred Stock after May 26, 2020. 

Redemption. At any time following the fifth anniversary of May 26, 2020, the Company may redeem some or all of the Series B Convertible Preferred Stock for a per share amount in cash equal to: (i) the sum of (x) 100% of the liquidation preference thereof, plus (y) all accrued and unpaid dividends, multiplied by (ii) (A) 107% if the redemption occurs at any time on or after the fifth anniversary of May 26, 2020 and prior to the sixth anniversary of the Closing Date, (B) 105% if the redemption occurs at any time on or after the sixth anniversary of May 26, 2020 and prior to the seventh anniversary of May 26, 2020, and (C) 100% if the redemption occurs at any time on or after the seventh anniversary of May 26, 2020 (such price, the “Redemption Price”). 

Upon certain change of control events involving the Company, the Holders of the Series B Convertible Preferred Stock may, at such Holder’s election, (i) convert their shares of Series B Convertible Preferred Stock into Class A Common Stock at the then-current conversion price; provided that if such change of control occurs on or before the fifth anniversary of May 26, 2020, the Company will also be required to pay the Holders of the Series B Convertible Preferred Stock a “make-whole” premium or (ii) cause the Company to redeem their shares of Series B Convertible Preferred Stock for an amount in cash equal to (x) if the change of control occurs on or before the fifth anniversary of May 26, 2020, 110% of the sum of the liquidation preference thereof plus any accrued and unpaid dividends and (y) if the change of control occurs on or after the fifth anniversary of May 26, 2020, 100% of the then-current Redemption Price. If no such election is made with respect to any share of Series B Convertible Preferred Stock, such share shall remain outstanding.

Preemptive Rights. Except for the right to participate in any issuance of new equity securities by the Company as set forth in the Series B Investment Agreement, the Holders shall not have any preemptive rights. Pursuant to the Series B Investment Agreement, after May 26, 2020 and so long as the Investors  (as defined in the Series B Investment Agreement) continue to beneficially own at all times shares of Series B Convertible Preferred Stock and/or shares of Class A Common Stock that represent in the aggregate and on an as converted basis, at least 50% of the number of shares of Class A Common Stock beneficially owned by the Investors on an as converted basis, if the Company makes any public or non-public offering of any capital stock of, other equity or voting interests in, or equity-linked securities of, the Company or any securities that are convertible or exchangeable into (or exercisable for) capital stock of, other equity or voting interests in, or equity-linked securities of, the Company, the Investor and each person to which the Investor later transfers any shares of Series B Convertible Preferred Stock or Class A Common Stock issued upon conversion of Series B Convertible Preferred Stock shall be afforded the opportunity to acquire from the Company such [Investor]’s preemptive rights portion of such new securities for the same price as that offered to the other purchasers of such new securities, subject to certain conditions described in the Series B Investment Agreement. 

Series B Investment Agreement

Pursuant to the Series B Investment Agreement, the Company has increased the size of its Board in order to elect two individuals designated by the Investor (the “Designees”) to the Board for a term expiring at the 2020 annual meeting of the Company’s stockholders. For so long as the Investor or its affiliates beneficially own at least 50% of the shares of Series B Convertible Preferred Stock purchased pursuant to the Series B Investment Agreement on an as-converted basis, the Investor will have the right to designate two Designees for election to the Board. After the Investor ceases to own at least 50% of the shares of Series B Convertible Preferred Stock purchased pursuant to the Series B Investment Agreement on an as-converted basis, the Investor will have the right to designate one Designee for election to the Board. The Investor shall no longer be entitled to designate any Designees for election to the Board after the Investor ceases to own at least 20% of the shares of Series B Convertible Preferred Stock purchased in the Issuance on an as-converted basis. 

Additionally, the Investor will be subject to certain standstill restrictions, including that the Investor will be restricted from acquiring additional equity securities of the Company if such acquisition would result in beneficial ownership in excess of 15% of the Company’s issued and outstanding Class A Common Stock, until the later of 90 days after which the Investor has no rights (or has irrevocably waived its rights) to appoint a Designee and the three month anniversary of the Closing Date (as defined in the Investment Agreement). Subject to certain exceptions, the Investor will be restricted from transferring the Series B Convertible Preferred Stock until the three month anniversary of the Closing Date. 

Series B Registration Rights Agreement

On May 26, 2020, the Company entered into a Registration Rights Agreement (the “Registration Rights Agreement”), pursuant to which the Company has agreed to provide to the Investor and each other Holder party thereto from time to time, following a three-month lockup period (the “lock-up period”), certain customary registration rights with respect to each Holder’s shares of the Series B Convertible Preferred Stock and the Class A Common Stock, issued in connection with any future conversion of the Series B Convertible Preferred Stock (together, the “Registrable Securities”) until such Holder’s Registrable Securities have been sold (subject to certain exceptions), or in the case of any shares of Class A Common Stock held by such Holder, all shares of Class A Common Stock held by such Holder, on an as converted basis, constitute less than 1% of the Company’s total outstanding shares of Class A Common Stock and may be sold in a single day pursuant to, and in accordance with, subsection (k) of Rule 144 under the Securities Act.

The Holders also have the right to request up to four underwritten take-downs, equal to at least $75 million per request, off of this prospectus during any 365-day period (subject to certain cut-back priorities) and the Holders have the right to request unlimited non-underwritten take-downs. Additionally, the Registration Rights Agreement grants each Holder customary demand registration rights for a minimum number of Registrable Securities equal to at least $75 million per demand which shall include underwritten offerings (subject to certain cut-back priorities), subject to a cool-off period of at least sixty days after 

effectiveness of the previous demand registration. The Registration Rights Agreement also grants each Holder customary “piggyback” registration rights. If, following the lock-up period, the Company proposes to register any shares of Common Stock, whether or not for its own account, each Holder will be entitled, subject to certain exceptions, to include its Registrable Securities in the registration, subject to certain cut-back priorities. The Registration Rights Agreement permits the Company to postpone the filing or use of a registration statement for a certain period (such period, a “Postponement Period”) if the filing or continued use of the registration statement would, in the good faith judgment of the Board (after consultation with external legal counsel) (i) require the Company to disclose material non-public information that, in the Company’s good faith judgment (after consultation with external legal counsel), the Company has a bona fide business purpose for not disclosing publicly or (ii) materially interfere with any material proposed acquisition, disposition, financing, reorganization, recapitalization or similar transaction involving the Company or any of its subsidiaries then under consideration. There will not be more than one Postponement Period in any 180-day period and no single Postponement Period will exceed 60 days.
Controlled Company Status
As of the date of this Annual Report, the JAB Investors (as defined below) beneficially own approximately 60% of the outstanding shares of Class A Common Stock, which also represents approximately 60% of the voting power of our capital stock. Accordingly, we qualify as a “controlled company” under the NYSE Listed Company Manual rules (the “NYSE Rules”). As a “controlled company,” we are permitted to take advantage of exemptions from certain of the corporate governance requirements under the NYSE Rules, including the requirements that a majority of our Board consist of independent directors, that we have a nominating and corporate governance committee that is composed entirely of independent directors and that we have a compensation committee that is composed entirely of independent directors. As a result, for so long as we are a controlled company, stockholders may not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements under the NYSE Rules. However, the Stockholders Agreement described below contains certain obligations with respect to the independence of our Board and a committee of our Board.
Stockholders Agreement
The Company is party to a stockholders agreement, dated as of March 17, 2019 (the “Stockholders Agreement”), with JAB Holdings B.V., JAB Cosmetics B.V. and Cottage Holdco B.V. (the “JAB Investors”). Pursuant to the Stockholders Agreement, among other things:
•during the three year period following April 30, 2019, the JAB Investors shall not, subject to certain exceptions, effect or enter into any agreement to effect any acquisition of additional shares of capital stock of the Company (including Class A Common Stock, “Company Securities”); provided that, the JAB Investors may acquire Company Securities on an established securities exchange or through privately negotiated transactions that, after giving effect to such acquisition, does not result in an increase in the JAB Investors’ and their affiliates’ collective beneficial ownership percentage of the voting power of the then issued and outstanding Company Securities to an amount greater than the percentage of the voting power of the issued and outstanding Company Securities beneficially owned by the JAB Investors, collectively, as of the consummation of the Offer, plus 9% (meaning a cap of approximately 69% for three years after April 30, 2019);
•during the three year period following April 30, 2019, the JAB Investors shall not, subject to certain exceptions, transfer any Company Securities to any other person or group (other than an affiliate of any of the JAB Investors) that, after giving effect to such transfer, would beneficially own in excess of 20% of the voting power of the Company;
•for so long as the Stockholders Agreement is in effect, the JAB Investors shall not effect or seek to effect, or announce any intention to effect, any “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act unless such transaction is conditioned on both (i) the affirmative approval of a special committee of our Board comprised solely of individuals who are each (1) “independent” under the requirements of Rule 10A-3 under the Exchange Act, and under the rules of the applicable securities exchange on which Company Securities are traded and (2) disinterested as it relates to the JAB Investors and their respective affiliates (any such individual, an “Independent Director”) and who are disinterested and independent under Delaware law as to the matter under consideration, duly obtained in accordance with the applicable provisions of the Company’s organizational documents, applicable law and the rules, regulations and listing standards promulgated by any securities exchange on which Company Securities are traded (“Disinterested Director Approval”) and (ii) the affirmative vote of our stockholders representing at least a majority of the voting power of the Company beneficially owned by stockholders that are not the JAB Investors or their affiliates;
•for so long as the Stockholders Agreement is in effect, material related party transactions involving the JAB Investors or any of their affiliates and the Company will require Disinterested Director Approval; and

•for so long as the Stockholders Agreement is in effect, the JAB Investors and the Company have agreed to take all necessary actions within their control to maintain no fewer than four Independent Directors on our Board and to cause, no later than September 30, 2019, to be elected to our Board two new Independent Directors.
The Stockholders Agreement also provides the JAB Investors with certain customary demand and shelf registration rights with respect to Company Securities and restricts the registration rights we may grant other stockholders after the date thereof. Prior to the entry into the Stockholders Agreement, we granted certain other stockholders customary demand and “piggyback” registration rights.
The Stockholders Agreement will terminate upon the earlier of the mutual consent of the parties to the Stockholders Agreement (including, with respect to the Company, Disinterested Director Approval) or such time as the JAB Investors and their affiliates cease to beneficially own 40% of the voting power of the Company capital stock on a fully diluted basis. The Stockholders Agreement may be amended by the JAB Investors and the Company after receipt of Disinterested Director Approval. Any waiver by the Company of any condition or of any breach of any term, covenant, representation or warranty contained in the Stockholders Agreement also requires Disinterested Director Approval.
Anti-Takeover Effects of Delaware Law, Certificate of Incorporation and By-laws
The following provisions may make a change in control of our business more difficult and could delay, defer or prevent a tender offer or other takeover attempt that a stockholder might consider to be in its best interest, including takeover attempts that might result in the payment of a premium to our stockholders over the market price for their shares. These provisions also may promote the continuity of our management by making it more difficult for a person to remove or change the incumbent members of our Board.
Controlling Stockholder. As of the date of this Annual Report, the JAB Investors beneficially own approximately 60% of the outstanding shares of Class A Common Stock, which also represents approximately 60% of the voting power of our capital stock. This concentrated control could have the effect of discouraging others from initiating a potential merger, takeover or other future change of control transaction that other stockholders may view as beneficial.
Delaware Law. We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, the statute prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date that the person became an interested stockholder, subject to exceptions, unless the business combination is approved by our Board in a prescribed manner or the transaction in which the person became an interested stockholder is approved by our Board and disinterested stockholders in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the stockholder. Generally, an “interested stockholder” is a person who, together with affiliates and associates, owns, or within three years prior, did own, 15% or more of the corporation’s voting stock. These provisions may have the effect of delaying, deferring or preventing a change in control of our business without further action by the stockholders.
Authorized but Unissued Shares; Undesignated Preferred Stock. The authorized but unissued shares of Class A Common Stock will be available for future issuance without stockholder approval. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, acquisitions and employee benefit plans. In addition, our Board may authorize, without stockholder approval, the issuance of undesignated Preferred Stock with voting rights or other rights or preferences designated from time to time by our Board. The existence of authorized but unissued shares of Class A Common Stock or Preferred Stock may enable our Board to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise.
Advance Notice Requirements for Stockholder Proposals and Nominations of Directors. Our By-laws require stockholders seeking to bring business before an annual meeting of stockholders, or to nominate individuals for election as directors at an annual or special meeting of stockholders, to provide timely notice in writing, as specified therein. These provisions regulate our stockholders in bringing matters before the annual meeting of stockholders or making nominations for directors at any meetings of stockholders. These provisions may also discourage or deter a potential acquiror from conducting a solicitation of proxies to elect the potential acquiror’s own slate of directors or otherwise attempting to obtain control of our business.
Special Meetings of Stockholders. Our Certificate of Incorporation and By-laws provide that special meetings of stockholders may be called only by our Chairman, Chief Executive Officer or our Board or by our Secretary at the request of holders of not less than a majority of the combined voting power of Class A Common Stock.

Cumulative Voting. Our Certificate of Incorporation provides that our stockholders are not permitted to cumulate votes in the election of directors.
Series B Convertible Preferred Stock Change in Control Provisions. Upon certain change in control events involving the Company, the Holders thereof will have the right to convert their shares of Series B Convertible Preferred Stock into shares of Class A Common Stock or require the Company to repurchase the Series B Convertible Preferred Stock. See “Series B Convertible Preferred Stock—Redemption” above.
Transfer Agent
The transfer agent and registrar for our Class A Common Stock is Computershare Trust Company, N.A.

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