Document:

hmi10q_08312013ex10.3

HERMAN MILLER, INC. 2011 LONG-TERM INCENTIVE PLAN
EBITDA PERFORMANCE SHARE UNIT AWARD

This certifies that Herman Miller, Inc. (the "Company") has on ____________ (the "Award Date"), granted to                      (the "Participant") an award (the "Award") of ______________ Performance Share Units (the "Target Performance Shares") pursuant to and under the Herman Miller, Inc. 2011 Long-Term Incentive Plan (the "Plan") and subject to the terms set forth in this document. A copy of the Plan Prospectus has been delivered to the Participant and a copy of the Plan is available from the Company on request. The Plan is incorporated into this Award by reference, and in the event of any conflict between the terms of the Plan and this Award, the terms of the Plan will govern.  Any terms not defined herein will have the meaning set forth in the Plan.

1.    Definitions.

(a)    "Actual Performance Shares" means the number of Performance Shares determined in accordance with subsection (b) (c) or (d) of Section 2 and payable to the Participant under Section 3 of this Award.

(b)    "Average Herman Miller Value Added" means the sum of the Company's Value Added for each Year of the Performance Period divided by 3.

(c)    “Average Capital” means the sum of the Company’s capital at the end of each month during a Plan Year divided by 12.

(d)    "Award Agreement" means the terms and conditions of the Award set forth in this agreement. 

(e)    “Capital Charge” means the Company’s Average Capital for the Plan Year multiplied by the Cost of Capital

(f)    "Common Stock" means the Company's $.20 par value per share common stock.

(g)    “Cost of Capital” means the Company’s weighted cost of equity plus its weighted cost of debt, expressed as a percentage, as determined by the Committee in a manner consistent with the Manual.

(h)    "EBITDA" means the Company's earnings calculated before charges for interest, taxes, depreciation and amortization as determined by the Committee in a manner consistent with the Manual. 

(i)“Herman Miller Value Added” means the value added of the Company determined each Plan Year by deducting the Company’s Capital Charge from EBITDA, as determined by the Committee in a manner consistent with the terms of the Manual. 

(j)    "Performance Period" means the period of three (3) consecutive Years beginning with the Year of the Award Date or in the event of a Shortfall, the Alternate Performance Period, if any approved by the Committee or in the event of a Change in Control, the Adjusted Performance Period provided in Section 2(d)(ii).

(k)    "Performance Share" means the right to receive one (1) share of Common Stock subject to certain restrictions and on the terms and conditions contained in this Award and the Plan.

(l)    "Retirement" means retirement under the Company's qualified retirement plans.

(m)    “Target Herman Miller Value Added” means the target amount of Herman Miller Value Added for any Year which is sufficient to entitle the Participant to the target number of Performance Shares under this Award.

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(n)    “Vesting Period” means the period of thirty-six (36) consecutive months after the Award Date, (or the Alternate Performance Period in the event of a Change in Control) or in the event of a Shortfall, the period of sixty (60) consecutive months after the Award Date, if the Committee approves the use of an Alternate Performance Period.

(o)    "Year" means the fiscal year of the Company.

2.    Determination of Actual Performance Shares.  The Actual Performance Shares in which the Participant will be eligible to vest will be as determined under this Section 2.

(a)    Beginning of the Year Determinations. Within 90 days of the beginning of each Year, the Committee will establish the EBITDA, Cost of Capital and the Target Herman Miller Value Added for each Year of the Performance Period. If the Committee determines that vesting of Actual Performance Shares will be based in whole or in part upon the Herman Miller Value Added of any unit or subsidiary, then the Committee will also establish the EBITDA, Cost of Capital and Target Herman Miller Value Added for such units or subsidiaries.

(b)    Year-End Determinations. As of the end of each Year the following determinations will be made consistent with the Manual;
    
(i)    Determination of EBITDA and Capital Charge. Within ninety (90) days of the end of each Year of the Performance Period, the Committee will determine the EBITDA and Capital Charge for the just ended Year.

(ii)       Determination of Herman Miller Value Added. Within ninety (90) days of the end of each Year and at the end of the Performance Period, the Committee will determine the amount of Herman Miller Value Added for each year and the average for any Performance Period. 

(iii)    Calculation of Actual Performance Shares.  The Committee, within ninety (90) days after the end of the Performance Period, will determine the number of Actual Performance Shares in which the Participant will be eligible to vest. Except as provided in Sections (c) (d) or (e) below, the number of Actual Performance Shares which will be eligible to vest will be determined on a linear basis according to the following; 

(A) if the Average Herman Miller Value Added is equal to or greater than $172 million, then 200% of the Target Performance Shares will vest;

(B) if the Average Herman Miller Value Added is equal to $147 million (the Target Herman Miller Value Added) then 100% of the Target Performance Shares will vest; 

(C) If the Average Herman Miller Value Added is equal to $130.4 million the 34% of the Target Performance Shares will Vest, and

(D)  if The Average Herman Miller Value Added is less than $130.4 million then 0% of the Target Performance Shares will vest.

(c)    Shortfall. If the calculation under Section 2(b)(iii) above would result in less than 34% of the number of Target Performance Shares being eligible to vest, then a Shortfall will exist. In the event of a Shortfall, no Actual Performance Shares will vest or be issued unless the Committee authorizes the use of the Alternate Performance Period described in Section d below.

 (d)    Alternate Performance Period in the Event of a Shortfall.  If a Shortfall occurs, the Committee, in its sole discretion, may elect to determine the Target Performance Shares based upon the Alternate Performance Period. If the Committee elects to exercise that discretion, (i) the Alternate Performance Period shall be the ' three (3) consecutive Years beginning with the first day of the Company's 2016 Year and (ii) the Actual Performance Shares shall be equal to 34% of the Target Performance Shares if Average Herman Miller Value Added equals or exceeds 75% of the Target Herman Miller Value Added during the Alternate Performance Period. 

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(e)    Calculation of Actual Performance Shares after a Change in Control.  If a Change in Control occurs, the Committee will determine the Participant's Actual Performance Shares in accordance with Section 2(a), subject to the following:

(i)    The Committee will adjust the EBITDA for the Year in which the Change in Control occurs by multiplying the EBITDA actually achieved for that Year by a fraction, the numerator of which is the number of days in the period beginning of the first day of the Year and ending on the day prior to the effective date of the Change in Control, and the denominator of which is 365.

(ii)  The Performance Period will end (the "Adjusted Performance Period") on the effective date of the Change in Control.  The Committee will determine the Average EBITDA by adding the EBITDA for each Year of the Adjusted Performance Period and dividing the sum by the number of whole or partial Years in the Adjusted Performance Period.

3.    Adjustments to Target Performance Shares.

(a)    In the event that the Participant's employment with the Company or a Subsidiary terminates prior to the end of the Performance Period due to:

(i)  Death;

(ii)  Disability; or

(iii)  Termination of Employment by the Company or a Subsidiary without Cause, 

then the Participant's Target Performance Shares will be adjusted by multiplying the Participant's Target Performance Shares granted in this Award by a fraction, the numerator of which is the number of full calendar months, beginning on the first day of the Year of the Award Date and ending on the date on which the event described in Section 3(a) occurs, and the denominator of which is 36.

(b)    In the event that the Participant's employment with the Company or a Subsidiary terminates prior to the end of the Performance Period due to Retirement, the Participant's Target Performance Shares will be adjusted as follows:

(i)    If the Participant's Retirement occurs during the first Year of the Performance Period, the Participant's Target Performance Shares will be adjusted by multiplying the Participant's Target Performance Shares granted in this Award by a fraction, the numerator of which is the number of full calendar months, beginning on the first day of the Year of the Award Date and ending on the date of the Participant's Retirement, and the denominator of which is 12; and

(ii)    No adjustment to the Participant's Target Performance Shares will be made if the Participant's Retirement occurs during the second or third Year of the Performance Period or during the Alternate Performance Period.

4.    Vesting.

(a)    Except as provided in Section 3 and 10 of this Award Agreement, and subject to the terms and conditions of this Award Agreement and the Plan, (i) the Participant's Actual Performance Shares will vest and become non-forfeitable at the expiration of the Vesting Period, if the Participant remains continuously employed by the Company or a Subsidiary through the last day of the Vesting Period; and (ii) if' Participant ceases to be employed by the Company or a Subsidiary through the last day of the Vesting Period, then Participant's rights to all of the Target Performance Shares granted in this Award will be immediately and irrevocably forfeited.

(b)    Notwithstanding the provisions of Section 4(a) above, the Participant's Actual Performance Shares will vest and become non-forfeitable, except for reasons described in Section 10(b), at the expiration of the 

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Vesting Period, in the event that the Participant's employment with the Company or a Subsidiary terminates prior to the end of the Vesting Period due to any of the following:

(i)    Retirement;

(ii)    Death;

(iii)    Disability; or

(iv)    Termination of Employment by the Company or a Subsidiary without Cause.

(c)    For purposes of this Section 4, a Participant who begins an approved leave of absence from the Company or a Subsidiary after the Award Date and who returns to employment with the Company or a Subsidiary prior to the last day of the Vesting Period or prior to any of the events described in Section 4(b), above, following the leave of absence, will be considered to be continuously employed during the leave of absence.

(d)    Notwithstanding the provisions of Section 4(a), above, the Participant's Actual Performance Shares will vest and become non-forfeitable upon the effective date of a Change in Control.

5.    Rights of the Participant with Respect to Performance Shares.

(a)    No Shareholder Rights.  The Performance Shares granted pursuant to this Award as provided herein are a contingent right to receive Common Stock in the future, are not issued shares of Common Stock and do not and will not entitle Participant to any rights of a shareholder of Common Stock, including the right to vote or receive dividends.  The rights of the Participant with respect to the Performance Shares will remain forfeitable at all times prior to the end of the Performance Period as provided in this Award Agreement and the Plan.  Prior to conversion of Performance Shares into Common Stock, such Performance Shares will represent only an unsecured obligation of the Company.

(b)    Conversion of Performance Shares; Issuance of Common Stock.  No shares of Common Stock will be issued to Participant prior to the date on which the Performance Shares vest and the restrictions with respect to the Performance Shares lapse.  Neither this Section 5(b) nor any action taken pursuant to or in accordance with this Section 5(b) will be construed to create a trust of any kind.  After any Performance Shares vest and any tax withholding obligations related to such Performance Shares have been satisfied pursuant to Section 9, the Company will, within 60 days thereafter, cause to be issued to the Participant or the Participant's legal representatives, beneficiaries or heirs, as the case may be, a stock certificate or book entry representing the number of shares of Common Stock in payment of such vested whole Performance Shares, unless a valid deferral has been made pursuant to Section 8, in which case such distribution will be made within 60 days after the date to which distribution has been deferred.  The value of any fractional Performance Share will be paid in cash at the time certificates are delivered to Participant in payment of the Performance Shares based on the Fair Market Value of a share of Common Stock on the day preceding the date of distribution.

6.    Restriction on Transfer.

(a)    The Performance Shares and any rights under this Award may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of by Participant otherwise than by will or by the laws of descent and distribution, and any such purported sale, assignment, transfer, pledge, hypothecation or other disposition will be void and unenforceable against the Company. In additional, during any Restricted Period no shares of Common Stock issued pursuant to this Award may be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of by Participant.  Notwithstanding the foregoing, Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of Participant and receive any property distributable with respect to the Performance Shares upon the death of Participant.

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(b)    No transfer by will or the applicable laws of descent and distribution of any Performance Shares that vest by reason of Participant's death will be effective to bind the Company unless the Committee will have been furnished with written notice of such transfer and a copy of the will and/or such other evidence as the Committee may deem necessary to establish the validity of the transfer.

7.    Adjustments to Performance Shares for Certain Corporate Transactions.  Adjustments to Performance Shares will be determined in accordance with this Section 7.

(a)    The Committee will make an appropriate and proportionate adjustment to the number of Target Performance Shares granted under this Award if:

(i)    The outstanding shares of Common Stock are increased or decreased, as a result of merger, consolidation, sale of all or substantially all of the assets of the Company, reclassification, stock dividend, stock split, reverse stock split with respect to such shares of Common Stock or other securities, or

(ii)    Additional shares or new or different shares or other securities are distributed with respect to such shares of Common Stock or other securities or exchanged for a different number or kind of shares or other securities through merger, consolidation, sale of all or substantially all of the assets of the Company, reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other distribution with respect to such shares of Common Stock or other securities.

(b)    The Committee may make an appropriate and proportionate adjustment in the number of Target Performance Shares granted under this Award if the outstanding shares of Common Stock are increased or decreased as a result of a recapitalization or reorganization not included within Section 7(a) above.

8.    Deferral of Distribution.  A Participant may elect to defer the conversion of Performance Shares granted under this Award into Common Stock and the issuance of such Common Stock with respect thereto to a time later than that provided under Section 5(b).  The Participant must file such election with the Committee at least 12 months prior to the date provided under Section 5(b) that such Performance Shares are scheduled to be converted into Common Stock and issued to the Participant.  The Participant must specify in the election the date on which the Performance Shares granted under this Award will be converted to Common Stock and issued to Participant.  The date elected must be at least five (5) years later than the date on which the Performance Shares would have been converted to Common Stock and issued to the Participant under Section 5.  

9.    Tax Withholding.

(a)    In order to comply with all applicable federal, state, and local tax withholding laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal, state, and local payroll, withholding, income or other taxes, which are the sole and absolute responsibility of Participant are withheld or collected from Participant.

(b)    In accordance with the terms of the Plan, and such rules as may be adopted by the Committee under the Plan, Participant may elect to satisfy Participant's federal, state, and local tax obligations and the Company's withholding obligation arising from the receipt of, or the lapse of restrictions relating to, the Performance Shares, by any of the following means or by a combination of such means set forth below.  If the Participant fails to notify the Company of his or her election before the sixtieth (60th) day following the last day of the Performance Period, the Company will withhold shares of Common Stock as described in Section (ii), below.  

(i)    Tendering a payment to the Company in the form of cash, check (bank check, certified check or personal check) or money order payable to the Company;

(ii)    Authorizing the Company to withhold from the shares of Common Stock otherwise to be delivered to the Participant a number of such shares having a Fair Market Value as of the date that the amount of the tax to be withheld is to be determined (the "Tax Date) less than or equal to the minimum amount of the Company's withholding tax obligation; or

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(iii)    Delivering to the Company unencumbered shares of Common Stock already owned by Participant having a Fair Market Value, as of the Tax Date, less than or equal to the minimum amount of the Company's withholding tax obligation.  Any shares of Common Stock already owned by Participant referred to in this Section (iii) must have been owned by Participant for no less than six (6) months prior to the date delivered to the Company if such shares of Common Stock were acquired upon the exercise of an Option or upon the vesting of Restricted Stock or other Restricted Stock units.

The Company will not deliver any fractional share of Common Stock but will round the number of shares issued up or down to the nearest number of full shares.  Participant's election must be made on or before the Tax Date.

10.    Miscellaneous.

(a)    Neither this Award nor the Plan confers on Participant any right with respect to the continuance of employment by the Company or any Subsidiary, nor will there be a limitation in any way on the right of the Company or any Subsidiary by which Participant is employed to terminate his or her employment at any time.

(b)    The Participant agrees that, this Award and any Performance Shares and shares of Common Stock issuable pursuant to this Award Agreement shall be subject to forfeiture and adjustment as provided in the "Restatement," "Solicitation of Employees" and "Engaging in Competition" set out below;

(i)Restatement.  In the event of a restatement of the Company's consolidated financial statements for any interim or annual period ("Restatement"), the Committee may determine that the Award exceeds the amount that would have been awarded or received had the Restatement been known at the time of the original Award or at the time of vesting of any Performance Shares. In the event that the Committee makes such a determination, the Company shall have the right: (i) in the instance of a Participant whose misconduct or violation of a Company policy causes such Restatement ("Cause"), to terminate, require forfeiture of, or adjust any Awards made to Participant and to require the repayment of any Actual Performance Shares and any Award or on any Actual Performance Shares, realized within twelve (12) months of the Restatement and; (ii) in the instance where a Participant is an officer subject to Section 16 of the Securities and Exchange Act of 1934, and without regard to whether such Participant caused the Restatement, to adjust any vested or unvested Award made during the period covered by the Restatement to reflect the impact of the Restatement. Both the cause and the amount of adjustment and/or repayment shall be determined by the Committee in its sole discretion and its decision shall be final and binding upon the Participant(s). 

(ii)Solicitation of Employees.  In the event Participant solicits an employee of the Company for employment or other similar relationship with another employer during the Restricted Period, the Committee shall have the discretion to (i) forfeit this Award and/or (ii) forfeit any vested Award for which Actual Performance Shares have not been issued and/or (iii) to require repayment or return of any Actual Performance Shares.  The occurrence of solicitation and amount of repayment shall be determined by the Committee in its sole discretion.

(iii)Engaging in Competition.  In the event Participant or any [Affiliate] of Participant during the Restricted Period, directly or indirectly, either for Participant or for any other person or entity directly or indirectly engages in Competition with the Company anywhere in the world in which the Company then transacts business or solicit or attempt to solicit any person or entity who is or has been either a customer of the Company at any time during the Restricted Period to purchase Competing Products from any person or entity (other than the Company) or  a customer, supplier, licensor, licensee or other business relation of the Company at any time during the Restricted Period to cease doing business with the Company, then the Committee will have the right to (i) terminate this Award (ii) to 

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forfeit any vested Award for which Actual Performance Shares have not been issued and/or (iii) to require repayment or return of any Actual Performance Shares.

(iv)Participant agrees that any violation of Section 10(b)(ii) and/or (iii) would be highly injurious to the Company and would cause irreparable harm to the Company and also  that the territorial, time and scope limitations set forth in Section 10(b)(ii) and (iii), are reasonable and are properly required for the protection of the Company and in the event that any such territorial, time or scope limitation is deemed to be unreasonable, by a court of competent jurisdiction, the Company and Participant agree, to the reduction of any or all of said territorial, time or scope limitations to such an area, period or scope as said court shall deem reasonable under the circumstances.

(v)    The following definitions apply to this Section 10:

"Affiliate" means and includes any person or entity which controls a party, which such party controls or which is under common control with such party.

"Competing Business" means a business which engages or is making plans to engage, in whole or in part, in the manufacturing, marketing, distribution or sale of products which are competitive with any products manufactured, distributed, marketed or sold by the Company during the Restricted Period.

"Competing Products" means products manufactured by a Competing Business.

"Control" means the power, direct or indirect, to direct or cause the direction of the management and policies of a person or entity through voting securities, contract or otherwise.

"Restricted Period" means the period of the Participant's employment with the Company, the balance if any of the Performance Period after the Participant's termination of employment and a period of two consecutive years after the Employee’s termination of employment due to Retirement.

(c)      The Company will not be required to deliver any shares of Common Stock upon vesting of any Performance Shares until the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.

(d)    An original record of this Award Agreement and of the Participant's acceptance and acknowledgment will be held on file by the Company. This Award Agreement and the Participant's acknowledgment may be made either paper or electronic format as specified by the Company. To the extent there is any conflict between the terms contained in this Award Agreement and the terms contained in the original held by the Company, the terms of the original held by the Company will control.
(e)    The Committee shall have full and exclusive discretionary power to make such adjustments and interpretations of this Award and the definition of EBITDA as it may deem necessary and proper. Such adjustments or interpretations shall be binding on the Participant.

11.    Section 409A Compliance.  To the extent applicable, it is intended that this Award Agreement comply with the provisions of Section 409A of the Internal Revenue Code ("Section 409A").  This Award Agreement will be administered and interpreted in a manner consistent with this intent, and any provision that would cause the Award Agreement to fail to satisfy Section 409A will have no force and effect until amended to comply therewith (which amendment may be retroactive to the extent permitted by Section 409A).  If any payments under this Award Agreement constitute nonqualified deferred compensation subject to the requirements of Section 409A and are payable upon a termination of the Participant's employment, then all such payments shall 

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be made only upon a "separation from service" within the meaning of Section 409A, and for purposes of determining the timing of such payments, Participant's termination shall not be considered to occur until he or she has incurred such a separation from service. 

HERMAN MILLER, INC.

By                             

Its                         

ACCEPTANCE AND ACKNOWLEDGEMENT

I accept the Award described herein and in the Plan, acknowledge receipt of a copy of this Award Agreement and the Plan Prospectus, and acknowledge that I have read them carefully and that I fully understand their contents.

PARTICIPANT

Dated                                     

PSU EBITDA 2013 final

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HERMAN MILLER, INC.

OFFICERS' SUPPLEMENTAL RETIREMENT INCOME PLAN 
(Effective March 15, 1983)
(As Amended January 21, 1986 and January 19, 1988

and Restated as of March 15, 1988)

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HERMAN MILLER, INC,

OFFICERS' SUPPLEMENTAL RETIREMENT INCOME PLAN
(Effective March 15, 1983)
(As Amended January 21, 1986 and January 19, 1988
and Restated as of March 15, 1988)

I. Purpose

Herman Miller, Inc. has adopted this Officers’ Supplemental Retirement Income Plan for a select group of officers in order to:

A.  Increase the overall effectiveness of the Company's executive compensation program so as to attract, retain and motivate qualified senior management personnel; and

B.  Provide benefits that are consistent with the particular needs and characteristics of senior management personnel.

II. Definitions

When used herein, the following words shall have the meanings below unless the context clearly indicates otherwise.

A.      Attained Compensation means either of the following:

1.  For officers who first become Participants on or after January 21, 1986, Attained Compensation means the average of the highest annual Total Compensation of such a Participant for any five complete calendar years of Credited Service for which the Participant is directly compensated by the Company out of the last ten complete calendar years of such Credited Service prior to his termination of employment with the Company.

2.  For all other Participants, Attained Compensation means either:

(a) The highest annual Total Compensation of a Participant for one complete calendar year of Credited Service for which the Participant is directly compensated by the Company out of the last three complete calendar years of Credited Service prior to his termination of employment with the Company, or

(b) The amount defined in subparagraph 1 above, whichever the Participant shall elect, 

provided that only Participants who were employed by the Company on January 20, 1986 are entitled to make such election and, provided further, that such election shall be in writing, signed by the Participant, and filed with the Company on or before May 31, 1986. If Participant does not file such an election on or before such date, his or her Attained Compensation shall be as defined in subparagraph (a) above.

B.  Basic Retirement Plan means the Herman Miller, Inc. Retirement Income Plan, as amended from time to time.

C.  Basic Retirement Plan Benefit means the total annual benefit payable or available immediately upon Retirement under the Basic Retirement Plan computed under the provisions of such plan and described as the "Basic Retirement Income," ignoring any adjustment in the benefit for any optional form of payment.

D.  Beneficiary shall have the same meaning as the term does under the Basic Retirement Plan,

E.  Board of Directors or Board means the Board of Directors of Herman Miller, Inc. or of any successor corporation.

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F.  Committee means an Administrative Committee of three or more members who are appointed by the Board of Directors of the Company for the purpose of administering this Plan. A majority of the members of the Committee shall not be eligible to participate in the Plan. At the effective date of this Officers' Supplemental Retirement Income Plan, this committee shall be composed of the same members as the Executive Compensation Committee of the Board of Directors.

G.     Company means Herman Miller Inc. or any successor corporation but does not include any subsidiary companies or any affiliate of Herman Miller, Inc.

H.      Credited Service means years and completed full months of service with the Company defined as "Credited Service" in the Basic Retirement Plan.

I.    Participant means any employee or former employee who meets or has met the eligibility requirements of Article III.

J.    Basic Supplemental Plan Benefit means the annual benefit payable in accordance with this Officers' Supplemental Retirement Income Plan.

K.    Total Compensation means the participant's salary or wages and any other remuneration which constitutes wages subject to tax under Section 310l(a) of the Internal Revenue Code or would be subject to such tax but for (1) the dollar limitations set forth in Section 3121(a)of the Internal Revenue Code; (2)the provisions of Section 40l(k)of the Internal Revenue Code, or (3)  deferral of payment under any nonqualified plan of deferred compensation other than this Officers' Supplemental Retirement Income Plan established by the Company.

L.    Retirement means that    time at and after which a Participant begins to receive benefits payable under the Basic Retirement Plan.

III.    Eligibility to Participate

Each of the following officers of the Company shall be a Participant in the Plan:

(a) Chairman, President, Treasurer and any Vice President who presently has, or hereafter achieves, at least 60 consecutive months of employment in any such officer capacity, and presently has, or hereafter achieves, at least ten years of Credited Service with the Company and who is specifically designated by the Board of Directors as a Participant, and

(b) Each such former officer of the Company who, prior to March 15, 1983, was employed in any such officer capacity for 60 consecutive months of employment and had at least ten years of Credited Service with the Company prior to termination of his employment and who is specifically designated by the Board of Directors as a Participant.

IV.  Plan Benefits

A.     Computation of Basic Supplemental Benefit

The Basic Supplemental Plan Benefit shall be computed by subtracting the Basic Retirement Plan Benefit from an amount determined by applying the following percentage to the Participant's Attained Compensation.  The percentage to be so applied shall be equal to the sum of the following percentages: (1) 2.0% for each year of Credited Service and .167% for each additional month of Credited Service to age 55, (2) 3.0% for each year of Credited Service and .250% for each additional month of Credited Service after attaining age 55 to age 60, and (3)  2.0% for each year of Credited Service and .167% for each additional month of Credited Service after attaining age 60 to age 65; provided, however, that in no event shall the percentage of a Participant's Attained Compensation from which his or her Basic Retirement Plan Benefit is subtracted exceed the percentages  set forth below at the Retirement commencement ages set forth opposite such percentages:

2

	
			
	Commencement of Retirement at Attained Age of
	 
	Maximum Percent of Attained Compensation

	55
	 
	50

	56
	 
	53

	57
	 
	56

	58
	 
	59

	59
	 
	62

	60
	 
	65

	61
	 
	67

	62
	 
	69

	63
	 
	71

	64
	 
	73

	65 or after
	 
	75

B.  Method and Amount of Payment

1.    A Participant’s benefits under the Plan shall commence and shall terminate at the same time and be paid in the same manner as his or her benefits are paid under the Basic Retirement Plan and shall be subject to actuarial reductions relating to the form of payment (but not as to early Retirement) on the same basis as described in the Basic Retirement Plan depending upon the optional form of payment selected by the Participant.

2.  Notwithstanding the foregoing, at the written request of any Participant, the Committee, in its sole and absolute discretion, may determine to pay to a Participant at or after his or her Retirement, as a partial payment of his or her Basic Supplemental Plan Benefit, a lump sum amount in cash equal to one-half the total benefits payable to the Participant under the Plan, actuarially computed, discounted to its present value as of the date of payment, using such actuarial assumptions as are, at that date, employed in computing actuarially equivalent benefits under the Basic Retirement Plan. A Participant's request for such lump sum payment may be made at any time before or after Retirement. Requests made before Retirement shall apply to the total benefits payable to the Participant beginning as of the date of the Participant's Retirement, actuarially computed and discounted as provided above.  Requests made after Retirement shall apply to the total benefits which remain payable to the Participant thereafter, actuarially computed and discounted as provided above.

If the Committee, in its discretion, determines to make the lump sum payment as requested by the Participant, if the Participant is then retired, the payment shall be made by the Company not later than thirty (30) days after the date of the Committee's determination; if the Participant is not then retired, payment shall be made within thirty (30) days after the date of the Participant's Retirement. Each determination by the Committee to make or not to make a lump sum payment requested by a Participant shall be final and binding upon the Participant and the Company, provided that if the Committee, in its discretion, determines not to make the lump sum payment as requested, the Committee, in its discretion, may, but shall not be required to, receive and act on similar requests subsequently made by the Participant to the Committee.

C.  Death Prior to Retirement

In the event a Participant's employment with the Company is terminated by reason of his or her death and such Participant is survived by a spouse to whom he or she is then and has been married for at least 12 months, the surviving spouse of such Participant shall be entitled to a minimum benefit under this Officers' Supplemental Retirement Income Plan equal to $2,000 per month, less the amount of any monthly benefit payable to such surviving spouse under the Basic Retirement Plan (the "Minimum 

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Death Benefit"). The Minimum Death Benefit shall commence when such surviving spouse reaches age 55 and shall continue for his or her lifetime. A surviving spouse entitled to the Minimum Death Benefit shall have the right to elect that such benefit commence before he or she attains age 55, but in that event the Minimum Death Benefit shall be reduced as is necessary, based upon actuarial formulae, in order to reflect the increased number of monthly payments which may be paid as a result of payments commencing before age 55 over the number of monthly payments which may be made, had payments not commenced until age 55.

V.  Forfeitures of Benefits

Notwithstanding any other provision of this Officers' Supplemental Retirement Income Plan, neither a Participant nor his or her spouse nor any other Beneficiary of the Participant shall receive any benefits hereunder if:

A.  The Participant is dismissed from employment with the Company because of his or her personal felonious conduct, unless the Participant acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interest of the Company and had no reasonable cause to believe his or her conduct was unlawful.

B.  The Participant engages in any activity after his or her employment with the Company terminates which is determined by the Committee to be in competition with the Company or any of its subsidiaries, unless (l) prior to engaging in such activity, the Participant obtains the written consent of the Committee, or (2) after the effective date of this Plan a person, corporation, or other entity or affiliated group acquires, whether by purchase, merger, consolidation or otherwise, a majority of the outstanding voting shares of the Company or all or substantially all of the assets of the Company; or

C.   After the effective date of this Plan, the Participant enters into a separate employment contract with the Company or any of its subsidiaries or other affiliates following his or her Retirement date; or

D.  The Participant during his or her Retirement fails, for reasons other than death or physical or mental disability, to be available for consultation at the Company's direction for up to 15 hours per month without additional compensation (excluding reimbursement of approved expenses).

Termination of a Participant's employment with the Company for any reason prior to commencement of his or her Retirement shall not, in and of itself, result in any forfeiture of benefits under this Officers' Supplemental Retirement Plan.

VI.    Administration and Claims

The Committee will decide all questions regarding eligibility for benefits hereunder and the amount of such benefits. All decisions of the Committee will be conclusive and binding on all parties.

VII.     Provision of Benefits

This officers' Supplemental Retirement Income Plan will be unfunded. Benefits will be paid only from the general assets of the Company. A Participant's, spouse's or Beneficiary's rights to benefits hereunder shall be only those of an unsecured, general creditor of the Company.

VIII.  Government Regulations

It is intended that this Officers' Supplemental Retirement Income Plan will comply with all applicable laws and governmental regulations and the Company shall not be obligated to perform an obligation hereunder in any case where, in the opinion of the Company's counsel, such performance would result in violation of any law or regulation.

IX.   Nonassignment

The right to benefits hereunder shall be not assignable and   neither the Participant, nor a spouse, nor any designated Beneficiary shall be entitled to have such payments commuted or made otherwise than in accordance with the provisions of this Officers' Supplemental Retirement Income Plan.

X.   Amendment or Discontinuance

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The Company reserves the right to amend or discontinue this Officer’s Supplemental Retirement Income Plan at any time; provided, however, that no amendment shall operate to deprive any Participant of any right or benefit under this plan. If the company should discontinue this Officer’s Supplemental retirement Income Plan, the total benefit which, but for such discontinuance, would have been paid under the Plan to each person who is at the time of such discontinuance a Participant or who is at the time of such discontinuance receiving or entitled to receive benefits under this Plan shall be actuarially computed and the amounts thus calculated shall be discounted to their present values at the time of such discontinuance using such actuarial assumptions as are, at that date, employed in computing actuarially equivalent benefits under the Basic Retirement Plan. The discounted values thus determined shall be multiplied by two and the resulting amounts shall be immediately payable to the Participant, his or her surviving spouse or other Beneficiary, as the case may be. For purposes of computing future benefits for all non-retired, living Participants, it will be assumed as follows: (1) that all Participants under age 55 would have retired at age 55, without, however, adjusting their actual attained ages, years of Credited Service or Attained Compensation, and that such Participants are entitled to the Basic Retirement Plan Benefit payable on Retirement at age 55 irrespective of any optional form of payment election which may have been made under the Basic Retirement Plan; and (2) that all Participants, who are 55 years of age or older, retired at the time of discontinuance of the Plan at their then attained ages with their then Credited Service and their then Attained Compensation records and are entitled to the Basic Retirement Plan Benefit payable on Retirement at such time irrespective of any optional form of payment election which may have been made under the Basic Retirement Plan. For purposes of computing future benefits with respect to all Participants, surviving spouses or other Beneficiaries, as the case may be, receiving benefits under this Plan immediately prior to the discontinuance of this Plan, the computation shall be made based upon the actual amount and form of payment in effect for each such person.

An amendment to this Officers' Supplemental Retirement Income Plan which excludes any officers of the Company who are not Participants as of the date of such amendment from thereafter becoming Participants shall not be deemed a discontinuance of this Plan.

XI.   Contractual Right to Benefits; Enforcement

This Plan establishes a contract between the Company and each Participant in the Plan and vests in each Participant and each Beneficiary a contractual right to the benefits to which he or she is or may become entitled hereunder. Each Participant and each Beneficiary shall have the right to enforce payment by the Company of any and all benefits to which such Participant or Beneficiary is or may become entitled under this Plan. The Company shall pay or reimburse each Participant or Beneficiary for all legal fees, costs of litigation and other expenses incurred by or on behalf of the Participant or the Beneficiary as a result of the Company's neglect or refusal to pay any benefits to which the Participant or a Beneficiary becomes entitled under this Plan, or as a result of the Company's contesting the validity, enforceability or interpretation of the Plan.

XII.   Effective Date and Termination of Prior Plan

This Plan which became effective as of March 15, 1983, superseded and replaced the Company's Officers' Supplemental Retirement Income Plan dated November 17, 1981. This Plan, as amended on January 21, 1986 and January 19, 1988, was restated in its entirety as of March 15, 1988, as directed by resolution adopted by the Board of Directors of the Company.

Executed this 15th day of March, 1988.

Herman Miller, Inc.

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