Document:

Exhibit 10.6

 

Exhibit 10.6

Rules of the Benefit Plan

for Senior managers and executives of

CINCINNATI MILACRON

KUNSTSTOFFMASCHINEN EUROPA GMBH

(The German version of the “Rules of benefit Plan” is the legally binding version.)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	I	 	INTRODUCTION	 	 	4	 
	 
	 	 	 	 	 	 	 	 	 	 
	II	 	GENERAL CONDITIONS	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	1.	 	 	Participating Companies
	 	 	5	 
	

	 	 	2.	 	 	Eligible Personnel
	 	 	5	 
	

	 	 	3.	 	 	Membership of the Benefit Plan and
Commencement of Benefit Cover
	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	III	 	BENEFIT CALCULATION BASES	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	4.	 	 	General
	 	 	6	 
	

	 	 	5.	 	 	Pensionable Pay
	 	 	6	 
	

	 	 	6.	 	 	Creditable Contribution Ceiling
	 	 	7	 
	

	 	 	7.	 	 	Creditable Service
	 	 	7	 
	

	 	 	8.	 	 	Employee Contribution
	 	 	8	 
	

	 	 	9.	 	 	Normal Retirement Date
	 	 	8	 
	 
	 	 	 	 	 	 	 	 	 	 
	IV	 	NORMAL RETIREMENT PENSION	 	 	8	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	10.	 	 	Condition
	 	 	8	 
	

	 	 	11.	 	 	Amount
	 	 	8	 
	

	 	 	12.	 	 	Payment
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	V	 	EARLY RETIREMENT PENSION	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	13.	 	 	Condition
	 	 	10	 
	

	 	 	14.	 	 	Amount
	 	 	10	 
	

	 	 	15.	 	 	Payment
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	VI	 	DISABILITY PENSION	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	16.	 	 	Condition
	 	 	11	 
	

	 	 	17.	 	 	Amount
	 	 	12	 
	

	 	 	18.	 	 	Payment
	 	 	12	 

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	VII	 	SPOUSE’S PENSION	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	19.	 	 	Condition
	 	 	13	 
	

	 	 	20.	 	 	Amount
	 	 	13	 
	

	 	 	21.	 	 	Payment
	 	 	14	 
	 
	 	 	 	 	 	 	 	 	 	 
	VIII	 	ORPHAN’S PENSION	 	 	14	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	22.	 	 	Condition
	 	 	14	 
	

	 	 	23.	 	 	Amount
	 	 	14	 
	

	 	 	24.	 	 	Payment
	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	IX	 	PREMATURE TERMINATION OF EMPLOYMENT	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	X	 	FINANCING	 	 	16	 
	 
	 	 	 	 	 	 	 	 	 	 
	XI	 	COSTS	 	 	16	 
	 
	 	 	 	 	 	 	 	 	 	 
	XII	 	GENERAL PROVISIONS	 	 	17	 
	 
	 	 	 	 	 	 	 	 	 	 
	XIII	 	IMPLEMENTATION	 	 	18	 

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I. INTRODUCTION

Dear Employees

In order to ensure that you can maintain a reasonable standard of living after your working life,
we have implemented a Benefit Plan.

In addition to the provisions of the State Scheme, this plan provides benefits in the event of
retirement, disability, both occupational and total, and death. The employee’s loyalty to the
Company will be thus rewarded and the link between the Company and its employees will be
strengthened.

The Company bears all costs associated with this Benefit Plan.

We are convinced that, with the benefits of this Plan, we are able to make an essential
contribution to your benefit cover.

Malterdingen,

CINCINNATI MILACRON KUNSTSTOFFMASCHINEN EUROPA GMBH

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	II	GENERAL CONDITIONS
	 
	1.  	Participating Companies
	 
	1.1  	The benefit plan provides retirement benefits for senior managers and executives of the
following Company:
	 
	   	CINCINNATI MILACRON KUNSTSTOFFMASCHINEN EUROPA GMBH
	 
	1.2  	Under the term “Employee” are included both male and female senior managers and executives,
who have received a pension promise with an entitlement to benefits from this Benefit Plan.
	 
	1.3  	For employees who have not yet received a pension promise, this plan is not binding and
cannot, therefore, be the basis for benefit entitlements.
	 
	1.4  	The pension promise must be given to the employee in writing.
	 
	2.  	Eligible Personnel
	 
	2.1  	A condition for membership of the Benefit Plan is that the employee
	 
		-is a permanent employee of the Company and
	 
		-has been given a pension promise, in accordance with Article 1 above.
	 
	   	Employees with an employment contract specifying retirement at or after age 65 are
considered permanent employees of the Company for purposes of this Benefit Plan.
	 
	2.2  	The Company reserves the right to effect individual pension contracts, the conditions of
which differ from those of this Benefit Plan. Such arrangements have to be made in writing.
	 
	3.  	Membership of the Benefit Plan and Commencement of Benefit Cover
	 
	3.1  	Membership of the Benefit Plan commences on the first of the month following or coinciding
with the fulfilment of the conditions in accordance with Article 2.
	 
	3.2  	Membership of the Benefit Plan is part of the employment contract for all plan members.

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	3.3  	The cover for pension benefits begins on the first of the month following fulfilment of the
conditions for membership of the plan.
	 
	III.  	BENEFIT CALCULATION BASES
	 
	4.  	General
	 
	4.1  	Employee benefits are calculated in accordance with the following conditions.
	 
	4.2  	All pension benefits are based on Pensionable Pay (in accordance with Article 5), Creditable
Contribution Ceiling (in accordance with Article 6) and Creditable Service (in accordance with
Article 7).
	 
	5.  	Pensionable Pay
	 
	5.1  	Pensionable Pay is equal to the average basic monthly income of the employee in the 12 months
immediately preceding the event giving right to benefits, or the date of leaving the Company.
	 
		a) For salary earners, pensionable pay is equal to 12 times the monthly basic salary.
	 
		b) For salary earners, where total salary is not a fixed amount, pensionable pay is equal
to the average basic monthly earnings in the 60 months immediately preceding the event
giving right to benefits or the date of leaving the company. Variable pay is defined as
that pay which is payable under the bonus plan relating to respective members. The maximum
variable pay that will be recognized for pension purposes will be restricted to the 100%
achievement level.
	 
	   	A member who moves from a job with a fixed income to one of variable pay will be subject to
either provision a) or b) above as they apply from time to time.
	 
		c) For employees currently or previously employed on a part-time basis, calculation of
pensionable pay is based on notional full time employment.
	 
	5.2  	All additional and/or fluctuating earnings, gratuities and overtime payment, profit sharing,
anniversary bonuses and child allowances, “Tantieme” or special allowances are not included as
Pensionable Pay.

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	5.3  	Periods of absence from work for which the employee does not receive any income from the
Company are not taken into account in calculation of Pensionable Pay. This rule applies even
if an employee is prevented, by accident or illness, or by periods of special absence e.g.
leave for the bringing up of children, from fulfilling the duties of his employment, provided
that (a) the employment continues, (b) no benefits from this Benefit Plan become payable and
(c) the member resumes work with the Company immediately after his recovery. Pensionable pay
during the last 12 months, during which a full salary is paid, is the determining factor.
	 
	5.4  	Income after the normal retirement date is not taken into consideration as pensionable pay
(in accordance with Article 9).
	 
	6.  	Creditable Contribution Ceiling
	 
	6.1  	For purposes of this Benefit Plan, Creditable Contribution Ceiling is defined as the Social
Security Contribution Ceiling applicable at the incidence of the event giving right to
benefits. In the event of premature termination of employment, the Ceiling used is the one
applicable in the calendar year in question.
	 
	7.  	Creditable Service
	 
	7.1  	Creditable Service is defined as the period of service spent by the employee in the company
until the event giving right to benefits (in accordance with Articles 10, 13, 16, 19, 22, and
25). Periods of continuous service of at least 6 months’ duration, during which there is no
salaried employment relationship between the employee and the Company with the exception of
wartime and military or alternative civilian service and periods of service when the
employment contract is suspended, do not count towards Creditable Service.
	 
	7.2  	Military service, alternative civilian service, maternity leave and child care leave count
towards Creditable Service as long as this is in accordance with current legislation.
	 
	   	Creditable Service will be fully recognised in circumstances where employment is
temporarily interrupted due to illness, temporary lack of work or disability provided that
the employee resumes work immediately after one of the above reasons for absence is no
longer valid.

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	   	Creditable service ends on termination of employment, on death of the employee or on
reaching retirement age. It cannot extend beyond normal retirement age, according to
Article 9.
	 
	7.3  	Periods of service after the Normal Retirement Date (in accordance with Article 9) are not
regarded as Creditable Service.
	 
	7.4  	All completed years and months of service will be included in the determination of
pensionable service.
	 
	7.5  	For employees who had a part-time employment contract with the company either previously or
currently notional creditable service will be used and is determined as follows:
	 
	   	Creditable service, calculated in accordance with Article 7.1 to 7.4, is multiplied by the
ratio of the employee’s working time to that of an employee with a full-time employment
contract.
	 
	8.  	Employee contribution
	 
	   	The member is not required to make contributions to the Benefit Plan.
	 
	9.  	Normal Retirement Date
	 
	   	Normal Retirement Date is the first day of the month following or coinciding with the 65th
birthday.
	 
	IV.  	NORMAL RETIREMENT PENSION
	 
	10.  	Condition
	 
	   	A condition for the payment of the Normal Retirement Pension is that the employee leaves
the service of the Company at the Normal Retirement Date (in accordance with Article 9),
having completed at least 10 years’ creditable service.
	 
	11.  	Amount
	 
	11.1  	The amount of the monthly Normal Retirement Pension is calculated using the following:

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		a) accrued amount (base amount),
	 
		b) the ratio of pensionable pay to the Creditable Contribution Ceiling in the State Scheme,
i.e. the Ceiling applicable at the incidence of the event giving right to pension payments
(personal % rate ),
	 
		c) pensionable service.
	 
	11.2  	The monthly accrued amount (base amount) equals
	 
	   	DM 22.80, for each year of creditable service,
	 
		on condition that pensionable pay is equivalent to the Creditable Contribution Ceiling in
the State Scheme, i.e. the Ceiling applicable at the incidence of the event giving right to
pension payments.
	 
	   	If the amounts are not the same, i.e. the Creditable Contribution Ceiling and pensionable
pay, the accrued amount will be increased or reduced in accordance with the ratio:
pensionable pay and Creditable Contribution Ceiling (individual accrued amount).
	 
	   	Pensionable pay will be used in determination of the individual % rate, as follows:

	 	 	 	 	 	 	 
	 	Parts of Income	Benefit Multiplicator
	 
	

	- below the Creditable	 	 	 	 
	

	- Contribution Ceiling
	1
	 
	

	- above the Creditable	 	 	 	 
	

	- Contribution Ceiling
	4

	11.3  	If the standard procedure for determination of the Creditable Contribution Ceiling (according
to §159 Social Security Act, Book VI) is cancelled or altered, an agreement must be reached
between the parties concerned. In this way, the procedure for determination of the individual
% rate is adjusted in such a way that the original aim of the regulation is achieved.
	 
	11.4  	The amount of the monthly Normal Retirement Pension for an
employee who temporarily received a Disability Pension from this Benefit Plan
in accordance with Article 16 and who resumed his professional duties
with the Company immediately after termination
of the Disability Pension previously being paid

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	   	in accordance with Article 17, may not be less than the last monthly payment of the
Disability Pension.
	 
	12.  	Payment
	 
	12.1  	The Normal Retirement Pension is paid on the last day of every month.
	 
	12.2  	The first pension payment is made in the first month in which the employee does not receive
his normal basic earnings from his preceding employment; the last pension payment is made in
the month in which the employee dies.
	 
	12.3  	The beneficiary for the Normal Retirement Pension is the former employee of the Company.
	 
	V	EARLY RETIREMENT PENSION
	 
	13.  	Condition
	 
	   	A condition for the payment of the Early Retirement Pension is that the employee terminates
service with the Company after at least 10 years and is in receipt of a full pension from
the State Scheme. Employees who have opted out of the State Scheme will be treated in the
same way as those who remained in the State Scheme.
	 
	14.  	Amount
	 
	14.1  	The amount of Early Retirement Pension is calculated according to the same formula as the
Normal Retirement Pension (in accordance with Article 11).
	 
	   	Creditable Service (in accordance with Article 7) is calculated up to the Early Retirement
Date.
	 
	14.2  	The amount of the Early Retirement Pension is calculated from Average Pensionable Pay (in
accordance with Article 5), the Creditable Contribution Ceiling (in accordance with Article 6)
and the Creditable Service attained up to the Early Retirement Date (in accordance with
Article 7).
	 
	14.3  	Due to the longer expected period of payment if the employee opts for early retirement, the
resultant Early Retirement Pension is reduced by 0.5% for each month between the Early
Retirement Date and the 65th birthday.

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	15.  	Payment
	 
	15.1  	The Early Retirement Pension is paid on the last day of every month.
	 
	15.2  	The first pension payment is made in the first month in which the employee does not receive
his normal basic earnings from his preceding employment, the last pension payment is made in
the month in which the employee dies.
	 
	15.3  	The beneficiary for the Early Retirement Pension is the former employee of the Company.
	 
	15.4  	If payment of the State Pension is discontinued or reduced to a partial pension before
attainment of the Normal Retirement Age, payment of the Early Retirement Pension will also
cease.
	 
	VI	DISABILITY PENSION
	 
	16.  	Condition
	 
	16.1  	Disability Pension is payable if an employee leaves the service of the Company due to
disability, whether occupational or total (in accordance with the regulations contained in the
Social Security Act Book VI - Sozialgesetzbuch VI)
	 
	16.2  	Disability, for the purpose of this Benefit Plan, exists if the employee is in receipt of a
full or occupational disability pension from the State Scheme or from a contracting-out
insurance.
	 
	16.3  	Disability pension, for occupational or total disability, is not payable from this Benefit
Plan, if the cause of disability was initiated by the employee or if the disability
(occupational or total) was already present, when the employee commenced service with the
Company.
	 
	16.4  	An employee whose working ability, on commencement of service, was already reduced through
disability but who was not eligible for a disability pension from the State Scheme, qualifies
for a Company disability pension, on condition that the level of working ability, compared to
that on commencement of service, is further reduced by at least 50%.

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	17.  	Amount
	 
	17.1  	The amount of Disability Pension is calculated according to the same formula as for the
Normal Retirement Pension (in accordance with Article 11 ).
	 
	17.2  	Calculation of the Disability Pension is based on Pensionable pay and the Creditable
Contribution Ceiling at the date of disablement and Creditable Service up to the date of
disablement. Service (as yet uncompleted) up to the 65th birthday will also be credited.
	 
	17.3  	Income earned by a beneficiary either from an employment relationship of from regular
business or professional activity before normal retirement age or eligibility for an Early
Retirement Pension, will be deducted from the Company Pension on condition that this income,
together with the State Pension and benefits from this Plan, exceed 70% of Pensionable Pay (in
accordance with Article 5).
	 
	17.4  	If the full/occupational disability is brought about by a third party, any compensation to
which the beneficiary is entitled will be deducted from the Company Pension, on condition that
the amount of the compensation, together with the State Pension and benefits from this Plan
exceed 70% of Pensionable Pay in accordance with Article 5. The employee may decide to
relinquish his compensation claims to the Company.
	 
	18.  	Payment
	 
	18.1  	The Disability Pension is paid in monthly instalments on the last day of every month.
	 
	18.2  	The first pension payment is made in the first month in which the employee does not receive
his normal basic earnings from his preceding employment; the last pension payment is made in
the month (a) when the conditions according to Article 16 are no longer fulfilled, (b) when
the employee dies or (c) when he reaches the Normal Retirement Date (in accordance with
Article 9).
	 
	18.3  	At the Normal Retirement Date (in accordance with Article 9) the Disability Pension is
converted to a Retirement Pension of the same amount; from this point in time the conditions
for the Normal Retirement Pension apply. The Normal Retirement Pension is payable in the first
month following the discontinuance of the Disability Pension.

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	18.4  	The beneficiary for the Disability Pension is the former employee of the Company.
	 
	18.5  	The employee is obliged to inform the Company of any change in the degree of disability.
	 
	18.6  	The Company is entitled to request, at regular intervals, proof from the former employee that
the disability remains unchanged.
	 
	18.7  	The Company is entitled, at any time, to obtain a medical report to confirm the level of
disability. The beneficiary for the Disability Pension is obliged to undergo the medical
examination within the time limit set by the Company. The Company pays all the medical costs
involved.
	 
	VII	SPOUSE’S PENSION
	 
	19.  	Condition
	 
	19.1  	A Spouse’s Pension will be paid on condition that an employee’s marriage took place before
the event giving right to benefits and before the 60th birthday and that the employee was
married at the time of death.
	 
	19.2  	A Spouse’s Pension is not payable if the marriage was concluded after the commencement of
pension payments from this Benefit Plan or if the marriage was already dissolved at the
commencement of pension payments.
	 
	20.  	Amount
	 
	20.1  	The amount of Spouse’s Pension is equal to 60% of the Retirement or Disability Pension which
was being paid from this Benefit Plan immediately prior to the employee’s death.
	 
	20.2  	If neither a Retirement nor a Disability Pension was being paid immediately prior to the
employee’s death, then the Spouse’s Pension amounts to 60% of the Disability Pension (in
accordance with Article 17) which would have been paid if the employee had been disabled (in
accordance with Article 16) at the time of his/her death.
	 
	20.3  	The provisions of Article 17.4 apply accordingly.

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	20.4  	In the event of an age difference, i.e. if the spouse is more than 10 years younger than the
deceased beneficiary, the widow’s or widower’s pension is reduced by 2% for each year or part
of a year, exceeding 10.
	 
	21.  	Payment
	 
	21.1  	The Spouse’s Pension is paid on the last day of every month.
	 
	21.2  	The first payment is made either in the first month in which the surviving spouse does not
receive the normal basic earnings from the preceding employment of her/his deceased husband
or, if a pension was already being paid from the Benefit Plan to the deceased employees in the
first month in which Retirement or Disability Pension from this Benefit Plan is no longer
granted.
	 
	21.3  	The last pension payment is made in the month in which the surviving spouse dies or
remarries. In the event of remarriage, the widow/widower receives a lump sum, equal to 36
monthly pension payments.
	 
	21.4  	The beneficiary for the Spouse’s Pension is the wife or husband of the deceased employee.
	 
	VIII	ORPHAN’S PENSION
	 
	22.  	Condition
	 
	22.1  	A condition for the payment of an Orphan’s Pension is that the employee leaves dependent
children at the time of his/her death.
	 
	22.2  	Dependent children are the employee’s own children and those with an equal legal status.
Illegitimate children are also eligible to receive an Orphan’s Pension if the employee has
custody of the child.
	 
	23.  	Amount
	 
	23.1  	The amount of the Orphan’s Pension for each child is 10% of the Retirement or Disability
Pension that was being paid from this Benefit Plan immediately prior to the employee’s death.
	 
	23.2  	If neither Retirement nor Disability Pension was being paid immediately prior to the
employee’s death, the Orphan’s Pension for each child amounts to 10%

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		of the Disability Pension (in accordance with Article 17) which would have been paid to the
employee if he had been disabled (in accordance with Article 16) at the time of his death.
	 
	23.3  	A Double Orphan’s pension, as calculated in accordance with the above two paragraphs, is paid
to orphans who have lost both parents.
	 
	23.4  	The sum of the spouse’s and orphans’ pensions is limited to 100% of the pension on which
their calculation is based; otherwise the orphans’ pensions are reduced proportionately.
	 
	24.  	Payment
	 
	24.1  	The Orphan’s Pension is paid on the last day of every month.
	 
	24.2  	The first pension payment is made in the first month in which a Spouse’s Pension (in
accordance with Article 21) is also payable or, if no Spouse’s Pension is due, in the first
month in which the Spouse’s Pension would have been paid if a spouse had been entitled to a
Spouse’s Pension (in accordance with Article 19).
	 
	24.3  	The payment of an Orphan’s Pension ceases automatically when the child attains the age of 18.
	 
	24.4  	Orphans’ Pensions are paid beyond the age of 18 provided that the child is pursuing
education, but only while the orphan is eligible to receive a state child allowance.
	 
	IX	PREMATURE TERMINATION OF EMPLOYMENT
	 
	25.  	In accordance with the Company Pension Law (BetrA VG) if an employee of this Benefit Plan
leaves the service of the Company before benefits become due, he retains a vested right to
benefits, provided that he fulfils the conditions in section 1 of the Company Pension Law.
	 
	26.  	The amount of vested Retirement Pension (in accordance with Article 25) is calculated
according to the conditions in section 2 of the Company Pension Law.
	 
	27.  	The amount of other vested benefits, to which the employee is entitled in accordance with
this Benefit Plan, is calculated in the same manner.

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	28.  	Should an employee terminate service before the incidence of an event giving right to
benefits, he/she will be informed by the Company whether or not the conditions for vested
rights have been fulfilled and the amount of retirement pension payable at the Normal
Retirement Date.
	 
	29.  	These provisions according to Articles 25 to 26 represent the minimum requirements and
benefits lain down by the Company Pension Law. Should the Company Pension Law be amended, the
above mentioned Articles will be altered accordingly.
	 
	X	FINANCING
	 
	30.  	The Company gives a “pension promise” to the employees, for which the Company has to form
pension reserves, for the benefits provided by the Benefit Plan.
	 
	31.  	In order to secure the benefits under the “pension promise” the Company can effect
reinsurance contracts.
	 
	   	All benefits from the reinsurance contracts are due exclusively to the Company.
	 
	32.  	If, for health reasons, the full benefits as provided under the Benefit Plan cannot be
insured for an employee, then the benefits are reduced accordingly or cancelled without
substitution.
	 
	   	All provisions of the Benefit Plan then relate to the remaining benefits covered by the
insurance contracts and the “pension promise”.
	 
	33.  	Should the company take out reinsurance policies to finance the benefits from this Plan, the
employee is obliged to provide his approval for the issue of the policy in accordance with §
159 of the Insurance Contract Law. This requires employees to provide all supporting evidence
requested and if necessary their consent to undergo a medical examination.
	 
	XII	COSTS
	 
	34.  	All direct costs for financing the benefits are borne by the Company.
	 
	35.  	Benefits from the Benefit Plan are taxable as income, after taking allowances into
consideration. This tax is payable by the former employee or the other beneficiaries.

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	36.  	Tax due according to Article 35 is deducted by the Company on payment of the benefits. The
pensioner is obliged to submit an income tax card regularly to the Company.
	 
	XII	GENERAL PROVISIONS
	 
	37.  	All benefits from the Benefit Plan are paid out by the Company into a bank account in Germany
specified by the beneficiary.
	 
	38.  	Every three years in accordance with Section 16 of the Company Pension Law, the Company will
review the current pension payments and will make a discretionary decision. The Company must
consider the interests of the pensioners and its own economic situation when making this
decision.
	 
	39.  	Every employee who is entitled to benefits from the Benefit Plan and who is still in the
service of the Company is obliged, without prior request, to inform the Company immediately of
any changes in personal circumstances relevant to the Benefit Plan and to present adequate
proof thereof by means of certificates. If the beneficiary does not fulfil his obligations,
the claim to pension benefits is suspended. As soon as the obligations are fulfilled, back
payment (without interest) will be made at the next payment date.
	 
	40.  	Every beneficiary is obliged to submit a certificate of existence at the request of the
Company or an insurance company.
	 
	41.  	Payment of all benefits which have been financed by the Company can be suspended if these are
pledged, relinquished or used in any other way as collateral or surety for the procurement of
money, capital goods etc., or goods of any description, except where legally prescribed.
	 
	42.  	The Company is entitled to convert vested entitlements and pensions in payment into lump sums
(to the extent that this does not infringe on §3 Company Pension Law).
	 
	   	The amount of the lump sum corresponds to the value of the entitlement/cash value of the
pension and is determined in accordance with the regulations of § 6a Income Tax Law at the
date of the lump sum payment. After deduction of tax etc., the lump sum will be paid out as
a net amount. The Company reserves the right to pay the lump sum in 3 annual installments.
	 
	43.  	Disputes in connection with the Benefit Plan should be resolved by the courts having
jurisdiction for the area in which the Company is located.

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	44.  	The Benefit Plan does not affect any other rights of the employee or the Company relating to
the contract of employment.
	 
	45.  	Should the Company be obliged, due to legal changes, collective agreements or for other
reasons to grant additional benefits, to increase the range of benefit cover or to finance
same, such benefits will be credited in addition to the provisions of this Benefit Plan. There
will be special regulations governing the crediting procedure.
	 
	46.  	A condition for the payment of all benefits is that the beneficiary makes all claims to the
Company. Regardless of this, the Company will act in respect of care and supervision.
	 
	47.  	Current pensions and vested benefits are insured against insolvency, in accordance with legal
provisions, with the Pensions-Sicherungs-Verein, Versicherungsverein a.G. (Mutual Pension
Insolvency Insurance).
	 
	48.  	The Benefit Plan can be administered by an independent firm of actuaries who have full access
to confidential information concerning all employees and beneficiaries. Only data for the
calculation of actuarial reserves (in accordance with Section 6a of the Income Tax Act) will
be transferred.
	 
	   	The actuary is obliged to adhere to the provisions of the Data Protection Act
(Bundesdatenschutzgesetz). All information required for a reinsurance policy to be effected
can be forwarded to the insurance company to the extent as this is necessary for the proper
establishment and implementation of the insurance contract. The insurer is also obliged to
adhere to the provisions of the Data Protection Act (Bundesdatenschutzgesetz).
	 
	XIII	  IMPLEMENTATION
	 
	49.  	The Benefit Plan in its present version comes into effect on 1 January 1996.
	 
	50.  	The Company hopes and expects to be able to maintain the Benefit Plan in the future without
restriction. The Company reserves the right, however, to reduce or suspend benefits if:
	 

	 	 	a) the economic position of the Company has steadily deteriorated to such an extent that
the Company is no longer capable of maintaining the promised benefits, or

18

 

	   	b) the personnel, contributions, benefits or the retirement age laid down by social
security or other legal pension organizations change considerably, or
	 
		c) the legal and in particular the financial handling of the outlay which is being made or
has been made by the Company for the systematic financing of benefits has changed to such
an extent that the Company is no longer capable of maintaining the promised benefit, or
	 
		d) the beneficiary commits offences which have grossly infringed good faith or have led to
immediate dismissal.
	 
	51.  	In addition, the Company reserves the right to reduce or suspend benefits if the governing
criteria for the Benefit Plan have steadily deteriorated to such an extent that the Company is
no longer capable of maintaining the promised benefits, even after objective consideration of
the beneficiary’s interests.
	 
	52.  	The Company reserves the right to amend this Benefit Plan by a contractual agreement.

Malterdingen,

CINCINNATI MILACRON KUNSTSTOFFMASCHINEN EUROPA GMBH

19Exhibit 10.10

 

Exhibit 10.10

MILACRON INC.

EXECUTIVE LIFE INSURANCE PLAN

     1.    Purpose of the Plan. The Milacron Inc. Executive Life Insurance Plan, effective January 1,
2004, is maintained by the Company as an insured welfare plan. The Plan continues the Company’s
long established practice of providing key employees of the Company and its Affiliates with a
flexible insurance benefit as a part of an overall competitive benefits package designed to
attract, retain and motivate highly effective individuals.

     2.    Definitions. Capitalized terms used herein shall have the meanings assigned to such terms
in this Section 2.

     “Affiliate” means any corporation, limited liability company, joint venture, partnership,
unincorporated association or other entity that is affiliated, directly or indirectly, with the
Company and which is designated as such under the Plan by the Personnel and Compensation Committee
from time to time.

     “Base Salary” means a Participant’s annual base wages paid by the Company and/or by any
Affiliate during the calendar year (or such other annual period designated by the Committee). Base
Salary does not include salary adjustments or other payments made because of overseas employment,
payment made from incentive plans, ad hoc bonuses, commission bonus payments, relocation expenses
or any payment made from any employee benefit plan.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and interpretive
rules and regulations thereunder.

     “Committee” means the Benefit Plans Committee of the Company.

     “Company” means Milacron Inc., a Delaware corporation, and any corporation that shall succeed
to its business and adopt the Plan.

     “Disability” means the Participant has become permanently disabled (as determined by the
Committee in good faith) within the meaning of the long-term disability plan of the Company in
effect for, or applicable to, the Participant.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and interpretative rules and regulations thereunder.

     “Insurance Policy” means one or more life insurance contracts issued by the Insurer on the
life of a Participant.

     “Insurer” means the insurance company or companies selected by the Company which issue
insurance on the Participant’s life.

 

 

     “Participant” means (i) a current or former employee of the Company or an Affiliate who had
been a party to a split dollar life insurance arrangement with the Company and who has executed a
termination agreement with respect to such split dollar life insurance arrangement as of the
effective date of this Plan (each of whom shall be referred to as a “Group A Participant”); (ii) an
individual who is first elected to the position of either Chairman, Chief Executive Officer,
President, Chief Operating Officer, Vice President, Treasurer or Controller of the Company (each of
whom shall be referred to as a “Group B Participant”); or (iii) an employee of the Company or an
Affiliate who is a member of a “select group of management or highly compensated employees,” within
the meaning of Sections 201, 301 and 401 of ERISA, and who is selected by the Personnel and
Compensation Committee to participate in the Plan (each of whom shall be referred to as a “Group B
Participant”).

     “Personnel and Compensation Committee” means the Personnel and Compensation Committee of the
duly constituted board of directors of the Company on the applicable date.

     “Plan” means this Milacron Inc. Executive Life Insurance Plan, as amended from time to time.

     “Retirement” means retirement as defined in the Milacron Retirement Plan.

     3.    Participation

     (a)    Group A Participants shall begin participation in this Plan as of the effective date of
this Plan. Group B Participants shall begin participation in this Plan as of the later of (i) the
date they first fall within the definition of a Participant as provided herein; or (ii) November 1,
2004.

     (b)    Unless otherwise determined by the Personnel and Compensation Committee, the participation
in the Plan of a Group A Participant shall cease, and the Company shall have no further obligation
concerning his Insurance Policy, upon the earlier to occur of the following dates: (i) the date
such Group A Participant ceases to be an employee of the Company and its Affiliates for any reason
other than his Retirement or Disability; (ii) the date that the value of the Group A Participant’s
Insurance Policy is such that the policy becomes self sustaining and premium payments are no longer
required to maintain the then current level of coverage; or (iii) the lapse of the Insurance Policy
due to the Group A Participant’s withdrawals from such policy. Unless otherwise determined by the
Personnel and Compensation Committee, the participation in the Plan of a Group B Participant shall
cease, and the Company shall have no further obligation under the Plan with respect to such
Participant, upon the date such Group B Participant ceases to be an employee of the Company and its
Affiliates for any reason.

2

 

     4.    Purchase of Insurance Policy for Group A Participants

     (a)    In accordance with procedures prescribed by the Committee and the Insurer, a Group A
Participant shall apply or shall have applied to the Insurer for the purchase of an Insurance
Policy providing a death benefit equal to the Participant’s Base Salary. Each Group A Participant
shall be named as the owner of each Insurance Policy with respect to which he is named as the
insured, and shall possess the unilateral right to exercise all incidents of ownership with respect
to such Insurance Policy without the consent of the Company.

     (b)    If the Group A Participant’s Base Salary increases at any time after the Group A
Participant applies for an Insurance Policy, the Committee shall approve an increase of the basic
coverage purchased by the Participant subject to the terms and conditions of the Insurance Policy
and any applicable limitations imposed by the Insurer. If the basic coverage under the Insurance
Policy is increased after such an approval, the Company shall pay the corresponding increase in
scheduled premiums in accordance with the terms and conditions of this Plan, subject to any
applicable limitations imposed by the Insurer.

     (c)    Notwithstanding anything contained herein to the contrary, the type and amount of any
death benefit shall be determined solely in accordance with the terms of each separate Insurance
Policy. Nothing contained herein shall be deemed to guarantee the availability, amount or payment
of any death or other form of benefit or right from any such Insurance Policy. Except as may be
expressly provided herein, determination of any right under, benefit in or payment from any such
Insurance Policy shall be determined solely in accordance with the terms and conditions of the
Insurance Policy.

     5.    Term Life Insurance Benefit for Group B Participants. In accordance with procedures
prescribed by the Committee and the Insurer, the Company shall obtain term life insurance coverage
on a Group B Participant’s life providing a death benefit equal to the Participant’s Base Salary.
Such death benefits shall be payable to the beneficiary named by the Group B Participant on a form
provided by the Committee. The benefits provided under this Section 5 shall be in addition to,
rather than in lieu of, any benefits provided to the Participant under the Company’s group term
life insurance plan.

     6.    Premium Payments

     (a)    Subject to Sections 3(b), 8 and 9(f) hereof, the Company shall pay the scheduled premium
payments due and payable under the Insurance Policies for the basic coverage applicable to each
Participant described herein. The Company shall pay an additional amount on behalf of each
Participant (a “Gross-Up Payment”) equal to the estimated applicable federal, state, local and
Medicare taxes payable by the Participant (as determined by the Committee in its sole discretion
exercised in good faith) in connection with such scheduled premium and related Gross-Up Payment and
arising from participation in this Plan.

3

 

     (b)    Each Group A Participant shall be responsible for paying any required premiums due and
payable under his Insurance Policy in excess of the scheduled premium payments described in Section
6(a). A Group A Participant may, in his sole discretion, pay amounts in excess of the required
premiums due and payable under his Insurance Policy, subject to any limitations imposed by the
Insurer. The Group A Participant may, pursuant to procedures prescribed by the Committee, authorize
the Company to make such payments on his behalf using any resources provided by the Company
(including but not limited to withholding from Base Salary).

     7.    Administration

     (a)    The Committee shall be the administrator of the Plan.

     (b)    Any notice or filing required or permitted to be given to the Committee under the Plan
shall be sufficient if it is in writing and hand delivered, or sent by registered or certified
mail, to any member of the Committee or its designate. The notice or filing shall be deemed made
as of the date of delivery, or if delivery is made by mail, as of the date shown on the postmark on
the receipt for registration or certification.

     (c)    Subject to the specific limitations stated in this Plan, the Committee shall have the
following powers, duties, and responsibilities: to carry out the general administration of the
Plan; to cause to be prepared all forms necessary or appropriate for the administration of the
Plan; to keep appropriate books and records; to determine amounts to be distributed to Insurers
under the provisions of the Plan; to determine, consistent with the provisions of this instrument,
all questions of eligibility, rights, and status of Participants under the Plan; to issue, amend,
and rescind rules relating to the administration of the Plan, including a claims procedure, to the
extent those rules are consistent with the provisions of this document; to exercise all other
powers and duties specifically conferred upon the Committee elsewhere in this document; and to
interpret, with discretionary authority, the provisions of this Plan and to resolve, with
discretionary authority, all disputed questions of Plan interpretation and benefit eligibility.

     8.    Amendment and Termination

     (a)    The Company reserves the right to amend the Plan at any time by action of the Personnel
and Compensation Committee, with written notice given to each Participant in the Plan.

     (b)    The Company reserves the right to terminate the Plan, by action of the Personnel and
Compensation Committee, at any time it deems appropriate. Upon termination of the Plan, no further
premiums shall be made by the Company or its Affiliates to the Insurer.

4

 

     9.    Miscellaneous

     (a)    Notwithstanding any other provision of this Plan, this Plan and action taken pursuant to
it shall not be deemed or construed to establish a trust or fiduciary relationship of any kind
between or among the Company, its Affiliates, Participants or any other persons. The Plan is
intended to be unfunded for purposes of the Code and ERISA. The rights of Insurers to receive
payment and of Participants to have payments made on their behalf under the Plan is strictly a
contractual right of payment. This Plan does not grant, nor shall it be deemed to grant Insurers,
Participants or any other person any interest or right to any of the funds, property, or assets of
the Company and its Affiliates other than as an unsecured general creditor of the Company and its
Affiliates.

     (b)    No right or interest under the Plan of any Participant shall, without the written consent
of the Company, be (i) assignable or transferable in any manner, (ii) subject to alienation,
anticipation, sale, pledge, encumbrance, attachment, garnishment or other legal process or (iii) in
any manner liable for or subject to the debts or liabilities of the Participant.

     (c)    Any economic or other benefit to the Participant under this Plan will not be taken into
account in determining any benefits to which the Participant may be entitled under any
profit-sharing, retirement or other benefit or compensation plan maintained by the Company and its
Affiliates, unless provided otherwise in any such plan.

     (d)    Nothing contained in this Plan or any action taken under the Plan shall be construed as a
contract of employment or as giving any Participant any right to be retained in employment with the
Company or its Affiliates. The Company and its Affiliates specifically reserve the right to
terminate any Participant’s employment at any time with or without cause, and with or without
notice or assigning a reason, subject to the terms of any written employment agreement between the
Participant and the Company or its Affiliates.

     (e)    The Company’s or the Committee’s waiver of any Plan provision shall not operate or be
construed as a waiver of any subsequent breach by the Participant.

     (f)    Each Participant shall cooperate with the Company and the Committee by furnishing any and
all information requested by the Company or the Committee in order to facilitate the payment of
benefits under the Plan, and by taking any other relevant action as may be requested by the Company
or the Committee. If any Participant refuses so to cooperate, the Company shall have no further
obligation to the Participant under this Plan.

     (g)    This Plan shall be binding upon and inure to the benefit of the Company and its successors
and assigns.

     (h)    Neither the Committee nor the Company makes any recommendations or warranties, express or
implied, or assumes any responsibility concerning the legal context or other implications or
effects of this Plan or of any Insurance Policy.

5

 

     (i)    The Company and its Affiliates may withhold or cause to be withheld from any amounts
payable under the Plan all federal, state, local and other taxes as shall be legally required.

     (j)    The provisions of this Plan shall be construed and governed in all respects under and by
the internal laws of the State of Ohio, to the extent not preempted by federal law.

     (k)    Words used in the masculine gender shall be construed to include the feminine gender,
where appropriate, and vice versa. Words used in the singular shall be construed to include the
plural, where appropriate, and vice versa. The headings and subheadings in the Plan are inserted
for convenience of reference only and are not to be considered in the construction of any provision
of the Plan.

     (l)    If any provision of the Plan shall be held to be illegal or invalid for any reason, that
provision shall be deemed to be null and void, but the invalidation of that provision shall not
otherwise impair or affect the Plan.

     Milacron Inc. has caused this document to be executed by its duly authorized officer, as of
the 1st day of January, 2004.

	 	 	 	 	 
	 	 	 
	 	By: 	
/s/  M. Bradley Baker	 
	 	 	M. Bradley Baker 	 
	 
	 	Title:  	Vice President Human Resources 	 
	 

6

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