Document:

Prepared by MERRILL CORPORATION

Amended

and Restated*

Through

8/8/2001

 

DEFERRED

COMPENSATION PLAN OF

 

ALBANY

INTERNATIONAL CORP.

 

 

1. 

Purpose

 

The purpose of this Plan

(“Plan”) is to enable directors and certain employees of Albany International

Corp. (the “Company”) to defer the receipt of compensation that they otherwise

would have received currently in cash, and to receive the deferred amount, plus

interest thereon, at a time which they choose when they make the original

deferral election or subsequently as permitted by the Plan.  The Plan is intended to be an unfunded plan

maintained by the Company primarily for the purpose of providing deferred

compensation to a select group of management or highly compensated employees

within the meaning of Sections 201, 301 and 401 of the Employee Retirement

Income Security Act of 1974, as amended (“ERISA”), and shall be interpreted in

a manner consistent with such intent. 

As used herein, the term “Albany Group” shall mean the Company and all

corporations which are, at the time, subsidiaries of the Company.

 

2. 

Effective Date

 

The Plan shall be

effective from and after January 1, 1990, until terminated as provided herein.

 

3. 

Eligibility

 

All directors and all

employees of the Company who are in the management incentive compensation group

and other employees, who with respect to any year are approved for

participation by the Compensation and Stock Option Committee (the “Committee”)

of the Board of Directors of the Company (“eligible employees”) will be

eligible to participate in the Plan.

 

4. 

Compensation Covered by the Plan

 

The compensation covered

by the Plan (“covered compensation”) will be any regular or bonus compensation

payable to a director or an eligible employee by the Company.

 

*

Reflects amendments dated November 7, 1997, May 25, 2001, June 15, 2001 and

August 8, 2001.

 

5. 

Election to Defer

 

Each director and

eligible employee may, in lieu of receiving current covered compensation, elect

to defer:

 

(a)           any designated percentage of his/her

covered compensation; or

 

(b)           any designated dollar amount of

his/her covered compensation.

 

Notwithstanding any

other provisions of this Plan, no director or eligible employee may elect to

defer any covered compensation under this Plan which, if not deferred, would be

received by such director or eligible employee after December 31, 1995.

 

6. 

Investment of Deferred Covered Compensation

 

(a)     As used herein, the term “Moody’s Rate” for

any calendar month shall mean a rate equal to one-twelfth (1/12) of the average

of the monthly composite yields on Moody’s Seasoned Corporate Bond Yield Index

for the immediately preceding calendar year, as published by Moody’s Investors

Service, Inc. in Moody’s Bond Record (or any successor thereto), or, if such

monthly yield is no longer published, a substantially similar average selected

by the Committee in its sole discretion. 

As used herein, the term “Additional Rate” shall mean such additional

monthly rate as the Committee, in its sole discretion, shall from time to time

determine.  The Additional Rate as of

January 1, 1990 shall be zero (0.0) percentage points and, effective from and

after January 1, 1996 and until changed by the Committee, shall be one-quarter

of one (0.25) percentage point.  The

Committee, in its sole discretion, may change the Additional Rate at any time; provided

that at no time shall the Additional Rate be less than zero (0.0) percentage

points.

 

(b)     The Company will establish a bookkeeping

account (each, an “Account”) for each director and eligible employee who has

elected to defer the receipt of covered compensation under Section 5 (each, a

“participant”).  As of the last day of

each month, the Company shall credit such participant’s Account with the amount

of covered compensation that, but for such election, would have been paid to

him or her during that month.  As of the

last day of each month, each Account of each participant will be credited with

interest on the balance credited to such Account at the beginning of that

month, calculated at a rate equal to the Moody’s Rate for such month plus the

Additional Rate, except as otherwise provided in Sections 6(c), 6(d), 6(e) and

6(f) below.  The undistributed balance

of the Account of a participant shall, from and after the date such participant

is to commence to receive distributions thereof, bear interest for each month

at a rate equal to the Moody’s Rate for such month plus the Additional Rate

applicable to such Account, except as otherwise provided in Section 6(e) below.

 

(c)     The balance credited to the Account of a

participant who initially elects to receive such balance pursuant to an

election under Section 7(a)(1)(A) shall earn interest at the Moody’s Rate,

except as otherwise provided in Section 6(d) below.

 

(d)     (1)  If

a participant elects pursuant to Section 7(c) to redefer receipt of the balance

credited to his/her Account to a later date certain pursuant to Section

7(a)(1)(A), interest on such balance shall continue to accrue at the Moody’s

Rate.

 

(2)      If a participant elects pursuant to

Section 7(c) to change his/her election from a date certain under Section

7(a)(1)(A) to a time permitted under Section 7(a)(1)(B), interest on the

balance of such Account shall accrue interest from the date certain specified

in the participant’s original deferral election until the date such participant

receives such balance at a rate equal to the Moody’s Rate from time to time

plus the Additional Rate in effect at the time the request becomes effective

(subject to Sections 6(e) and 6(f) below). 

Until such date certain specified in the participant’s original deferral

election, such participant’s Account shall continue to accrue interest at the

Moody’s Rate.

 

(e)    (1)     If

a participant’s service as an employee of the Albany Group or as a director of

the Company is terminated either (A)by the Albany Group for cause, as

determined by the Committee in its sole discretion, or (B) voluntarily by such

employee or director prior to the earlier to occur of (i) his/her attainment of

age 55 with at least ten (10) years of service with the Albany Group or (ii)

attainment of age 60, then such participant’s Account shall be deemed to have

earned interest for the five (5) years immediately preceding the date on which

all, or the first installment, of the balance of such Account is received by

such participant at the Moody’s Rate, and such Account shall be recalculated to

take into account such interest accrual at the Moody’s Rate.  In addition, after such date any

undistributed balance in such participant’s Account shall also bear interest at

the Moody’s Rate.

 

(2)      The service of a participant who has

elected to receive the balance credited to his/her Account upon the later of

his/her termination of service as a director of the Company or his/her

termination of service as an employee of the Albany Group shall not be deemed “terminated”

pursuant to Section 6(e)(1)(B) above if such participant continues to serve as

either a director of the Company or an employee of the Albany Group.

 

(f)      In the case of an early distribution

pursuant to Section 8(b), the portion of the participant’s Account so

distributed shall be deemed to have earned interest at the Moody’s Rate from

the date of the initial deferral until the time of such early distribution, and

such Account shall be recalculated to take into account such interest accrual

at the Moody’s Rate.

 

7. 

Distribution of Deferred Compensation

 

(a)     At the time a participant makes his/her

first election to defer pursuant to Section 5, he/she shall also make an

election pursuant to this Section 7, as to the time and manner in which the

balance credited to his/her Account shall be distributed.  Such election shall be irrevocable, except

as provided in this Section 7 or in Section 8 hereof.

 

(1)      A participant shall be entitled to elect

to receive, or to commence receiving, the balance credited to his/her Account:

 

(A)

     on a date certain set by him/her; or

 

(B)       on the occurrence of his/her termination

of service as an employee of the Albany Group or as a director of the Company.

 

Notwithstanding

such election, a participant shall have the balance credited to his/her Account

automatically distributed to him/her (or his/her designated beneficiary or

beneficiaries), in the manner provided pursuant to Section 7(a)(2) but subject

to the further provisions of this Section 7, upon the occurrence of his/her

death or disability (as defined in the Company’s Pension Plus Plan, as amended

from time to time).

 

(2)      A participant shall be entitled to elect

to receive such balances in one of the following ways:

 

(A)      in

a single lump sum in an amount equal to his/her Account balance;

 

(B)       in

approximately equal monthly installments over a period of not more than thirty

(30) years elected by the participant;

 

(C)       in

a single lump sum equal to a percentage, elected by the participant, of the

aggregate amount of the participant’s Account balance on the date payments are

to commence, followed by (ii) payment of approximately equal monthly

installments over a period of not more than thirty (30) years elected by the

participant; or

 

 (D)      (i)

in approximately equal monthly installments over a period of not more than (28)

years elected by the participant, followed, within thirty (30) days of the

final installment, by (ii) payment of a single lump sum equal to a percentage,

elected by the participant, of the amount of the participant’s Account balance

on the date payments are to commence.

 

Calculation

of monthly installments pursuant to clauses (B), (C) and (D) above shall be

made by the Company using such reasonable annuity payment calculation methods

as the Company shall determine from time to time.

 

(b)     A

participant may at any time elect to change his/her election under Section

7(a)(2) to any other election permitted under Section 7(a)(2).  Such an election shall be made in a written

instrument filed with the Committee, and no more than three such changes of

election may be made by any participant. 

Unless the Committee, in its sole and absolute discretion, shall

determine otherwise, no such change of election shall be effective if the

termination of service that constitutes the triggering event for distribution

to such participant has already occurred, or occurs within one (1) year of the

date of such change of election; unless the termination of service is

the result of the death or disability of a participant who, at the time such

election was made, did not in good faith expect to die or become disabled

within the next year.

 

(c)     A

participant who has elected to receive the balances credited to his/her

Accounts pursuant to Section 7(a)(1)(A) may, at any time prior to two years

before the date certain specified in such election, change such date certain to

a later date certain or to an event specified in Section 7(a)(1)(B).  Such a change shall be made in a written

instrument filed with the Committee. 

Not more than one such change shall be made by any participant.

 

(d)     Subject

to the provisions contained in this Section 7 and in Section 8, all

distributions of the balance credited to a participant’s Account shall be made,

or shall commence, either on the date certain elected by the participant for

such distribution or within thirty (30) days after any other triggering event

under Section 7(a).  The Company may, in

its sole and absolute discretion, delay, for a period of up to one (1) year,

any payment to the extent that such payment would result in compensation to the

participant that is not deductible for federal income tax purposes (whether by

reason of Section 162(m) of the Internal Revenue Code of 1986 or

otherwise).  Interest shall accrue on

such delayed distributions at the same respective interest rates as were being

applied to the balance in the participant’s Account immediately prior to the

Company’s decision to delay such payment.

 

(e)     A participant may at any time designate a

beneficiary or beneficiaries who shall receive, following the death of the

participant, payments of the balances credited to his/her Account.  Such designation may be made in the initial

election filed pursuant to Section 7(a), and may also be made or changed by the

participant, at any time, by a written instrument filed with the Committee or

by the participant’s will.  The

beneficiary or beneficiaries so named shall receive payment of such balances

either (i) in the manner last elected by the participant pursuant to this

Section 7, or (ii) if elected by the participant in such instrument or will, a

lump sum.

 

8. 

Early Distributions

 

(a)     In the event of hardship, a participant, or

a beneficiary of a deceased participant designated in accordance with clause

(e) of Section 7, may, by a written instrument filed with the Committee,

request an immediate distribution of all or a portion of the balances credited

to the participant’s Account.  For

purposes of this Section 8(a), a distribution is on account of hardship only if

the distribution is made:

 

(1)      on account of an immediate and heavy

financial need of such participant or beneficiary, occasioned by an

unanticipated emergency caused by events beyond his/her control that would

result in severe financial hardship if the distribution were not permitted;

 

(2)      in an amount required to satisfy such

financial need; and

 

(3)      in circumstances in which the need cannot

be satisfied from other resources that are reasonably available to the

participant or beneficiary, such as through reimbursement or compensation by

insurance or otherwise, by reasonable liquidation of his/her assets (to the

extent such liquidation would not itself cause an immediate and heavy financial

need), by cessation of further deferrals under the Plan, or by other permitted

distributions or nontaxable (at the time of the loan) loans from other plans

maintained by the Albany Group, or by borrowing from commercial sources on

reasonable commercial terms.

 

          The

Committee shall determine whether the requested distribution satisfies the

requirements of this Section 8(a) on the basis of all relevant facts and

circumstances.  Any distribution of less

than 100% of the balance credited to the Account of a participant pursuant to

this Section 8(a) shall be deemed to be a distribution of the earliest compensation

which would have been paid had it not been deferred.

 

(b)     The

Committee may, upon the written request of any participant, or any beneficiary

of a deceased participant designated in accordance with clause (e) of Section

7, distribute to such participant or beneficiary all or a portion of the

balances credited to his/her Account prior to the time when he/she would

otherwise have been entitled to such distribution if the Committee determines,

in its sole and absolute discretion, that such earlier distribution is

warranted for good reasons and as a result of extraordinary circumstances.  Any distribution of less than 100% of the

balance credited to the Account of a participant pursuant to this Section 8(b)

shall be deemed to be a distribution of the earliest compensation which would

have been paid had it not been deferred.

 

(c)     (1)     Upon the request of any participant,

including a participant no longer serving as an employee of the Albany Group or

as a director of the Company, or any beneficiary of a deceased participant

designated in accordance with clause (e) of Section 7, a distribution of a

portion or the entire balance credited to the Account of a participant shall be

made at any time or times prior to the time at which he or she would have been

entitled to receive, or to commence receiving, such balance in accordance with

an election pursuant to Section 7 hereof; provided that there shall be withheld

from each such distribution an amount equal to ten percent (10%) of the amount

requested to be distributed.  Such

participant or beneficiary shall forever forfeit, relinquish and waive any

right to receive any such withheld amounts, or any earnings thereon.

 

(2)     Upon

the request of any participant who at the time is serving as an employee of the

Albany Group or a director of the Company and has not made known to the Company

any present intention to terminate such service during the three years

following such request, a distribution of a portion or the entire balance

credited to the Account of a participant shall be made at any time or times

prior to the time at which he or she would have been entitled to receive such

amount in accordance with an election pursuant to Section 7 hereof; provided

that (i) there shall be withheld from each such distribution an amount equal to

five percent (5%) of the amount requested to be distributed, and (ii) such

participant thereafter shall be precluded from deferring any subsequent

compensation (including any compensation payable after such distribution that

would have been deferred pursuant to a deferral election made prior to the

distribution) under this Plan or any other deferred compensation plan of the

Company during the period of three years following the date of each such

distribution.  In the event that such

participant’s service as an employee of the Albany Group or as a director of

the Company is terminated by the Albany Group for cause, as determined by the

Committee in its sole discretion, or voluntarily by such participant, in either

case during any such three year period, the participant shall forever forfeit,

relinquish and waive any right to receive the amount withheld from the

withdrawal that triggered such period and any earnings thereon.  Any amount so withheld shall otherwise be

distributed to such participant upon termination of his or her service during

such period for any other reason, or upon expiration of such three-year period.

 

(3)     Any

distribution of less than 100% of the balances credited to the Account of a

participant pursuant to this Section 8(c) shall be deemed to be a distribution

of the earliest compensation which would have been paid had it not been

deferred.

 

9. 

Manner of Election

 

Prior to January 1 of

each year, beginning with 1990, each director and eligible employee shall be

entitled to file an instrument with the Committee exercising his/her election

under Section 5 of the Plan.  Such

election shall be irrevocable with respect to the year following its date of

filing.  If a director or eligible

employee does not file such an instrument under the plan, his/her covered

compensation shall be paid to him or her in cash on a non-deferred basis.  An election once filed shall continue in

effect with respect to subsequent years unless revoked or amended by an

instrument in writing filed with the Committee by the director or eligible

employee.  Any such revocation or

amendment shall be effective as of January 1 of the year next following the

filing thereof.  Notwithstanding any

other provisions of this Plan, no director or eligible employee may elect to

defer any covered compensation under this Plan which, if not deferred, would be

received by such director or eligible employee after December 31, 1995.

 

10. 

Administration of Plan

 

The Plan shall be

administered by the Compensation and Stock Option Committee of the Board of

Directors of the Company.  The Committee

shall interpret the Plan and make all decisions with respect to the rights of

directors and eligible employees hereunder; provided, however,

that no member of the Committee shall act on any matter in which such member

has a particular or special interest. 

The forms to be used for making elections pursuant to Section 5 as well

as initial elections under Section 7(a) are attached hereto as Exhibits A and

B, respectively.

 

11. 

Funding

 

This Plan shall be

unfunded.  Amounts payable hereunder

shall be paid from the general assets of the Company.  The Company may establish a trust pursuant to a trust agreement

and make contributions thereto for the purpose of assisting the Company in

meeting its obligations in respect of benefits payable under the Plan.  Any such trust agreement shall contain

procedures to the following effect:

 

(a)     In the event of the insolvency of the

Company, the trust fund will be available to pay the claims of any creditor of

the Company to whom a distribution may be made in accordance with state and

federal bankruptcy laws.  The Company

shall be deemed to be “insolvent” if the Company is subject to a pending

proceeding as a debtor under the federal Bankruptcy Code (or any successor

federal statute) or any state bankruptcy code. 

In the event the Company becomes insolvent, the Board of Directors and

chief executive officer of the Company shall notify the trustee of that event

as soon as practicable.  Upon receipt of

such notice, or if the trustee receives other written allegation of the

Company's insolvency, the trustee shall cease making payments of benefits from

the trust fund, shall hold the trust fund for the benefit of the Company's

creditors, and shall take such steps as are necessary to determine within

thirty (30) days whether the Company is insolvent.  In the case of the trustee's actual knowledge of or other

determination of the Company's insolvency, the trustee will deliver assets of

the trust fund to satisfy claims of the Company's creditors as directed by a

court of competent jurisdiction;

 

(b)     The trustee shall resume payment of

benefits under the trust agreement only after the trustee has determined that

the Company is not insolvent (or is no longer insolvent, if the trustee had

previously determined the Company to be insolvent) or upon receipt of an order

of a court of competent jurisdiction requiring such payment.  If the trustee discontinues payment of

benefits pursuant to paragraph (a) of this Section 11 and subsequently resumes

such payment, the first payment on account of a participant following such

discontinuance shall include an aggregate amount equal to the difference

between the payments which would have been made on account of such participant

under the trust agreement and the aggregate payments actually made on account

of such participant by the Company during any such period of discontinuance,

plus interest on such amount at a rate equivalent to the net rate of return

earned by the trust fund during the period of such discontinuance.

 

12. 

Reports to Participants

 

The Committee shall

provide to each participant a report twice a year, as of each June 30 and

December 31, detailing the status of that participant’s Account.

 

13. 

Amendment or Termination

 

This Plan may be amended

or terminated at any time by the Board of Directors of the Company or by the

Committee.  Upon termination of the

Plan, the Committee may distribute to each participant the balance credited to

his/her Account at the time of such termination in the form of a lump sum or

otherwise as it determines in its sole discretion.  The Company shall notify each participant and each beneficiary

currently entitled to benefits under the Plan of termination of the Plan within

ninety (90) days after such termination; provided that the failure to

give such notice shall not affect the Company’s rights hereunder.

 

14. 

Non-Assignability

 

Interests in covered compensation

deferred or in a participant’s Account shall not be assignable or transferable

or subject to attachment, garnishment, levy, execution or other legal or

equitable process, except by will or the laws of descent and distribution.

 

15. 

Plan Not a Contract of Employment

 

This Plan is not a

contract of employment, and the terms of employment of any employee of the

Albany Group shall not be affected in any way by the Plan or related

instruments except as specifically provided in the Plan or such related

instruments.  The establishment of the

Plan shall not be construed as conferring any legal rights upon any employee

for a continuation of employment, nor shall it interfere with the right of the

Albany Group to discharge any employee and to treat him or her without regard

to the effect which such treatment might have upon him or her as a participant.  Each participant and all persons who may

have or claim any right by reason of his/her participation shall be bound by

the terms of the Plan and all agreements entered into pursuant thereto.

 

16. 

Construction

 

(a)     The Plan is intended to qualify as an unfunded

plan maintained primarily for the purpose of providing deferred compensation

for a select group of management or highly compensated employees as referred to

in Section 201(2) of ERISA, and its terms shall be interpreted accordingly.  Otherwise, the laws of the State of New York

shall control the interpretation and performance of the terms of the Plan.

 

(b)     If any provision of the Plan, or the

application of any such provision to any person or circumstances, shall be

invalid under any federal or state law, neither the application of such

provision to persons or circumstances other than those as to which such

provision is invalid nor any other provisions of the Plan shall be affected

thereby.

 

Exhibit

A

 

DEFERRED

COMPENSATION PLAN OF

 

ALBANY

INTERNATIONAL CORP.

 

Election

as to Amount of Compensation to be Deferred

 

The undersigned, [a

director] [an eligible employee] under the Deferred Compensation Plan of Albany

International Corp., hereby elects as follows pursuant to Section 5 of such

Plan:

 

Please withhold from my

current covered compensation the following:

 

(check one only)

 

a. 

___% of my regular compensation and ___% of my bonus compensation.

 

b. 

___% of my covered compensation.

 

The foregoing shall be

effective for the calendar year commencing January 1, ____ and shall remain in

effect until revoked or amended by me, which revocation or amendment shall be

effective on the January 1 thereafter.

 

 

Executed this _____ day of ____________,

____.

 

 

__________________________________

Signature

 

Exhibit

B

 

DEFERRED

COMPENSATION PLAN OF

 

ALBANY

INTERNATIONAL CORP.

 

Election

as to Time and Manner in which Deferred Compensation shall be Distributed

 

The undersigned, [a

director] [an eligible employee] under the Deferred Compensation Plan of Albany

International Corp., hereby elects as follows, pursuant to Section 7 of such

Plan:

 

1. 

Time of Distribution

 

The value of my deferred

compensation shall be distributed to me, or such distribution shall commence:

 

(check one only)

 

a. 

_____ on ____________ ____ ____

Month           Day   Year

 

b.

_____ upon my termination of service as an employee of the Albany Group

(whether or not I am then a director of the Company).

 

c.

_____ upon the later of my termination of service as a director of the Company

or as an employee of the Albany Group.

 

My Deferred Compensation

Account will be distributed in the event of death, disability or termination.

 

2. 

Manner of Distribution

 

Distribution shall be

made as follows:

 

(check one only)

 

a.   _____ in a lump sum

 

b.     _____ in approximately equal monthly

installments over ___ years (not to exceed 30)

 

c.     _____ in a lump sum equal to ___% of my

Account balance on the date distribution commences, followed by approximately

equal monthly installments over ___ years (not to exceed 30)

 

d.     _____ in approximately equal installments

over ___ years (not to exceed 28), followed by a lump sum equal to ___% of my

Account balance on the date distribution commences.

 

3. 

Designation of Beneficiary

Upon my death, the

following person(s) shall be entitled to receive the value of deferred

compensation owing to me:

 

	

  Name

  	

   

  	

  Address

  	

   

  	

  Relationship

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  

 

This

deferred compensation shall be paid to these persons

_____ in the manner

otherwise payable to me

_____ in a lump sum

I understand that the

foregoing elections under paragraphs 1 and 3 above are irrevocable, except as

provided in Sections 7 or Section 8 of the Plan.

 

 

Executed this _____ day of ____________,

____.

 

 

__________________________________

SignaturePrepared by MERRILL CORPORATION

Amended and Restated*

Through 8/8/2001

 

ALBANY INTERNATIONAL CORP.

CENTENNIAL DEFERRED COMPENSATION PLAN

 

1.  Purpose

 

The purpose of

this Plan (“Plan”) is to enable directors and certain employees of Albany

International Corp. (the “Company”) and its subsidiaries to defer the receipt

of compensation that they otherwise would have received currently in cash, and

to receive the deferred amount, plus interest thereon, at a time which they

choose when they make the original deferral election or subsequently as

permitted by the Plan.  The Plan is

intended to be an unfunded plan maintained by the Company primarily for the

purpose of providing deferred compensation to a select group of management or

highly compensated employees within the meaning of Sections 201, 301 and 401 of

the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and

shall be interpreted in a manner consistent with such intent.  As used herein, the term “Albany Group”

shall mean the Company and all corporations which are, at the time,

subsidiaries of the Company.

 

2.  Effective Date

 

The Plan shall

be effective from and after July 1, 1995, until terminated as provided herein.

 

3.  Eligibility

 

The persons

eligible to participate in the Plan are (a) all employees of the Company who

are in the top management incentive compensation group and any other employees

of the Company or any other member of the Albany Group who, with respect to any

year, are approved for participation by the Compensation and Stock Option

Committee (the “Committee”) of the Board of Directors of the Company

(collectively, the “eligible employees”) and (b) all directors of the Company.

 

4.  Compensation Covered by the Plan

 

The

compensation covered by the Plan (“covered compensation”) will be (a) any

base salary, bonus or other cash compensation payable to an eligible employee

by the Company or any other member of the Albany Group and (b) any

directors’ fees payable in cash to a director by the Company.

 

*

Reflects amendments dated November 7, 1997, May 25, 2001, June 15, 2001 and

August 8, 2001.

 

5.  Election to Defer

 

Each director

and eligible employee may, in lieu of receiving current covered compensation,

elect to defer:

 

(a)           any designated percentage of his/her

covered compensation; or

 

(b)           any designated dollar amount of

his/her covered compensation.

 

6.  Investment of Deferred Covered Compensation

 

(a)     As used herein, the term

“Moody’s Rate” for any calendar month shall mean a rate equal to one-twelfth

(1/12) of the average of the monthly composite yields on Moody’s Seasoned

Corporate Bond Yield Index for the immediately preceding calendar year, as

published by Moody’s Investors Service, Inc. in Moody’s Bond Record (or any

successor thereto), or, if such monthly yield is no longer published, a

substantially similar average selected by the Committee in its sole

discretion.  As used herein, the term

“Additional Rate” shall mean such additional monthly rate as the Committee, in

its sole discretion, shall from time to time determine.  The Additional Rate at the effective date of

the Plan and until changed by the Committee shall be one-quarter of one (0.25)

percentage point.  The Committee, in its

sole discretion, may change the Additional Rate at any time; provided

that at no time shall the Additional Rate be less than zero (0.0) percentage

points.  Such new Additional Rate shall

apply to amounts deferred pursuant to an election received by the Company on or

after the date on which the change is adopted and announced by the

Committee.  The amount in each existing

Account (as described below) of a participant on the effective date of such

change, and any amounts credited thereafter pursuant to an election received

prior to the date on which such change is adopted and announced by the

Committee, shall continue to earn interest at the Moody’s Rate in effect from

time to time plus the Additional Rate in effect at the time the election

relating to such Account was made.

 

(b)     The Company will establish

a bookkeeping account or accounts (each, an “Account”) for each director and

eligible employee who has elected to defer the receipt of covered compensation

under Section 5 (each, a “participant”). 

Each participant shall have a separate Account for each calendar year

(or, in the case of 1995, the remainder thereof) for which such participant

shall have filed an election to defer covered compensation.  As of the last day of each month in any

year, the Company, with respect to each participant who has properly elected to

defer covered compensation for that year, shall credit such participant’s

Account for that year with the amount of covered compensation that, but for

such election, would have been paid to him/her during that month.  As of the last day of each month, each

Account of each participant will be credited with interest on the balance

credited to such Account at the beginning of that month, calculated at a rate

equal to the Moody’s Rate for such month plus the Additional Rate applicable to

such Account, except as otherwise provided in Sections 6(c), 6(d), 6(e) and 6(f)

below.  The undistributed balance of

each Account of a participant shall, from and after the date such participant

is to commence to receive distributions thereof, bear interest for each month

at a rate equal to the Moody’s Rate for such month plus the Additional Rate

applicable to such Account, except as otherwise provided in Section 6(e)

below.  All distributions of the

balances credited to a participant’s Accounts made in the form of installment

payments pursuant to Section 7(a)(3) shall be deemed to be made pro rata from

each of the participant’s Accounts.

 

(c)     The balance credited to all Accounts of a

participant who initially elects to receive such balance pursuant to an

election under Section 7(a)(1)(A) shall earn interest at the Moody’s Rate, except

as otherwise provided in Section 6(d) below.

 

(d)     (1)     If

a participant elects pursuant to Section 7(c) to redefer receipt of the

balances credited to his/her Accounts to a later date certain pursuant to

Section 7(a)(1)(A), interest on such balances shall continue to accrue at the

Moody’s Rate.

 

(2)      If

a participant elects pursuant to Section 7(c) to change his/her election from a

date certain under Section 7(a)(1)(A) to a time permitted by Section 7(a)(1)(B)

or 7(a)(1)(C), interest on the balance of each Account established prior to the

date certain specified in the participant’s original deferral election shall

accrue interest from such date certain until the date such participant receives

such balance at a rate equal to the Moody’s Rate from time to time plus the

Additional Rate in effect at the time the request becomes effective (subject to

Sections 6(e) and 6(f) below).  Until

such date certain specified in the participant’s original deferral election,

such participant’s Accounts shall continue to accrue interest at the Moody’s

Rate.  Each Account of a participant

established after the date certain specified in the participant’s original

deferral election shall accrue interest at a rate equal to the Moody’s Rate

from time to time plus the Additional Rate in effect at the time the election

relating to such Account is made (subject to Sections 6(e) and 6(f) below).

 

(e)     (1)     If

a participant’s service as an employee of the Albany Group or as a   director of the Company is terminated either

(A) by the Albany Group for cause, as determined by the Committee in its sole

discretion, or (B) voluntarily by such employee or director prior to the

earlier to occur of (i) attainment of age 55 with at least ten (10) years of

service with the Albany Group or (ii) attainment of age 60, then all of such

participant’s Accounts shall be deemed to have earned interest for the five (5)

years immediately preceding the date on which all, or the first installment, of

the balances of such Accounts (treating all Accounts of the participant as a

single Account for this purpose) is received by such participant at the Moody’s

Rate, and such Accounts shall be recalculated to take into account such

interest accrual at the Moody’s Rate. 

In addition, after such date any undistributed balances in such

participant’s Accounts shall also bear interest at the Moody’s Rate.

 

(2)      The service of a participant who has

elected to receive the balances credited to his/her Accounts at the time set

forth in Section 7(a)(1)(C) below shall not be deemed “terminated” pursuant to

Section 6(e)(1)(B) above if such participant continues to serve as either a

director of the Company or an employee of the Albany Group.

 

(f)      In the case of an early

distribution pursuant to Section 8(b), the portion of any participant Account

so distributed shall be deemed to have earned interest at the Moody’s Rate from

the date of the initial deferral until the time of such early distribution, and

such Account shall be recalculated to take into account such interest accrual

at the Moody’s Rate.

 

7.  Distribution of Deferred Compensation

 

(a)     At the time a participant

makes his/her first election to defer pursuant to Section 5, he/she shall also

make an election, pursuant to this Section 7, as to the time and manner in

which the balances credited to all of his/her Accounts (including those

established for subsequent years) shall be distributed.  Such election shall be irrevocable, except

as provided in this Section 7 or in Section 8 hereof.

 

(1)      A

participant shall be entitled to elect to receive, or to commence receiving,

the balances credited to his/her Accounts:

 

(A)      upon

the earlier of (i) a date certain specified by him/her at the time he/she makes

an election to defer or (ii) the later of his/her termination of service as a

director of the Company or as an employee of the Albany Group;

 

(B)       upon

his/her termination of service as an employee of the Albany Group (whether or

not such participant is then a director of the Company); or

 

(C)       upon

the later of his/her termination of service as a director of the Company or

his/her termination of service as an employee of the Albany Group.

 

For purposes of this Section 7(a)(1), “termination of service” shall

include any termination resulting from “death” or “disability” of the

participant, as such terms are defined in the Company’s Pension Plus Plan, as

amended from time to time).

 

(2)     A

participant who has elected to receive the balances credited to his/her

Accounts as set forth in Section 7(a)(1)(A) above shall receive such balances

in the form of a single lump sum.

 

(3)     A

participant who has elected to receive, or to commence receiving, the balances

credited to his/her Accounts at the time set forth in Section 7(a)(1)(B) or

7(a)(1)(C) shall be entitled to elect to receive such balances in one of the

following ways:

 

(A)      in a single lump sum in

an amount equal to the aggregate amount of all of the participant’s Account

balances;

 

(B)

      in approximately equal monthly

installments over a period of not more than thirty (30) years elected by the

participant;

 

(C)       (i) in a single lump sum equal to a

percentage, elected by the participant, of the aggregate amount of all of the

participant’s Account balances on the date payments are to commence, followed

by (ii) payment of approximately equal monthly installments over a period of

not more than thirty (30) years elected by the participant; or

 

(D)      (i) in approximately equal monthly

installments over a period of not more than (28) years elected by the

participant, followed, within thirty (30) days of the final installment, by

(ii) payment of a single lump sum equal to a percentage, elected by the

participant, of the aggregate amount of all of the participant’s Account

balances on the date payments are to commence.

 

Calculation of monthly installments pursuant to clauses (B), (C) and

(D) above shall be made by the Company using such reasonable annuity payment

calculation methods as the Company shall determine from time to time.

 

(b)     A

participant who has elected to receive the balances credited to his/her

Accounts pursuant to clause (B) or clause (C) of Section 7(a)(1) may at any

time elect to change his/her election under Section 7(a)(3) to any other

election permitted under Section 7(a)(3). 

Such election shall be made in a written instrument filed with the

Committee.  Not more than three such

changes of election may be made by any participant.  Unless the Committee, in its sole and absolute discretion, shall

determine otherwise, no such change of election shall be effective if the

termination of service that constitutes the triggering event for distribution

to such participant has already occurred, or occurs within one (1) year of the

date of such change of election; unless the termination of service is

the result of the death or disability of a participant who, at the time such

election was made, did not in good faith expect to die or become disabled

within the next year.

 

(c)     A participant who has

elected to receive the balances credited to his/her Accounts pursuant to

Section 7(a)(1)(A) may, at any time prior to two years before the date certain

specified in such election, change such date certain to a later date certain or

to an event permitted by Section 7(a)(1)(B) or 7(a)(1)(C).  Such a change shall be made in a written

instrument filed with the Committee. 

Not more than one such change shall be made by any participant.

 

(d)     Subject to the provisions contained in this

Section 7(d) and in Sections 7(c) and 8, all distributions of the balances

credited to a participant’s Accounts shall be made, or shall commence, either

on the date certain elected by the participant for such distribution or within

thirty (30) days after any other triggering event under Section 7(a).  The Company may, in its sole and absolute

discretion, delay, for a period of up to one (1) year, any payment to the

extent that such payment would result in compensation to the participant that

is not deductible for federal income tax purposes (whether by reason of Section

162(m) of the Internal Revenue Code of 1986 or otherwise).  Interest shall accrue on such delayed

distributions at the same respective interest rates as were being applied to

the balances in the participant’s Accounts immediately prior to the Company’s

decision to delay such payment.

 

(e)     A participant may at any

time designate a beneficiary or beneficiaries who shall receive, following the

death of the participant, payments of the balances credited to his/her

Accounts.  Such designation may be made

in the initial election filed pursuant to Section 7(a), and may also be made or

changed by the participant, at any time, by a written instrument filed with the

Committee or by the participant’s will. 

The beneficiary or beneficiaries so named shall be entitled to receive

payment of such balances either (i) in the manner last elected by the

participant pursuant to this Section 7, or (ii) if elected by the participant

in such an instrument or will, in a lump sum.

 

8.  Early Distributions

 

(a)     In the event of hardship,

any participant, or any beneficiary of a deceased participant designated in

accordance with clause (e) of Section 7, may, by a written instrument filed

with the Committee, request an immediate distribution of all or a portion of

the balances credited to the participant’s Accounts.  For purposes of this Section 8(a), a distribution is on account

of hardship only if the distribution is made:

 

(1)      on

account of an immediate and heavy financial need of such participant or

beneficiary, occasioned by an unanticipated emergency caused by events beyond

his/her control that would result in severe financial hardship if the

distribution             were not

permitted;

 

(2)      in

an amount required to satisfy such financial need; and

 

(3)      in

circumstances in which the need cannot be satisfied from other resources that

are reasonably available to the participant or beneficiary, such as through

reimbursement or compensation by insurance or otherwise, by reasonable

liquidation of his/her assets (to the extent such liquidation would not itself

cause an immediate and heavy financial need), by cessation of further deferrals

under the Plan, or by other permitted distributions or nontaxable (at the time

of the loan) loans from other plans maintained by the Albany Group, or by

borrowing from commercial sources on reasonable commercial terms.

 

The Committee shall determine whether the

requested distribution satisfies the requirements of this Section 8(a) on the

basis of all relevant facts and circumstances. 

Any distribution of less than 100% of the balances credited to all

existing Accounts of a participant pursuant to this Section 8(a) shall be

deemed to be a distribution of the earliest compensation which would have been

paid had it not been deferred.

 

(b)     The

Committee may, upon the written request of any participant, or any beneficiary

of a deceased participant designated in accordance with clause (e) of Section

7, distribute to such participant or beneficiary all or a portion of the

balances credited to his/her Accounts prior to the time when he/she would

otherwise have been entitled to such distribution if the Committee determines,

in its sole and absolute discretion, that such earlier distribution is

warranted for good reasons and as a result of extraordinary circumstances.  Any distribution of less than 100% of the

balances credited to all existing Accounts of a participant pursuant to this

Section 8(b) shall be deemed to be a distribution of the earliest compensation

which would have been paid had it not been deferred.

 

(c)     (1)     Upon the request of any participant,

including a participant no longer serving as an employee of the Albany Group or

as a director of the Company, or any beneficiary of a deceased participant

designated in accordance with clause (e) of Section 7, a distribution of a

portion or the entire balance credited to any Account of a participant shall be

made at any time or times prior to the time at which he/she would have been

entitled to receive such amount in accordance with an election pursuant to

Section 7 hereof; provided that there shall be withheld from each such

distribution an amount equal to ten percent (10%) of the amount requested to be

distributed.  Such participant or

beneficiary shall forever forfeit, relinquish and waive any right to receive

any such withheld amounts, or any interest thereon.

 

(2)     Upon the request of any participant who at

the time is serving as an employee of the Albany Group or a director of the

Company and has not made known to the Company any present intention to

terminate such service during the three years following such request, a

distribution of a portion or the entire balance credited to any Account of a

participant shall be made at any time or times prior to the time at which

he/she would have been entitled to receive such amount in accordance with an

election pursuant to Section 7 hereof; provided that (i) there shall be

withheld from each such distribution an amount equal to five percent (5%) of

the amount requested to be distributed, and (ii) such participant thereafter

shall be precluded from deferring any subsequent covered compensation (including

any compensation payable after such distribution that would have been deferred

pursuant to a deferral election made prior to the distribution) under this Plan

or any other deferred compensation plan of the Company during the period of

three years following the date of each such distribution.  In the event that such participant’s service

as an employee of the Albany Group or as a director of the Company is

terminated by the Albany Group for cause, as determined by the Committee in its

sole discretion, or voluntarily by such participant, in either case during any

such three year period, the participant shall forever forfeit, relinquish and

waive any right to receive the amount withheld from the withdrawal that

triggered such period and any earnings thereon.  Any amount so withheld shall otherwise be distributed to such

participant upon termination of his or her service during such period for any

other reason, or upon expiration of such three-year period.  Interest on any such withheld amount shall

continue to accrue in the manner described in Section 6 above until expiration

of such three-year period or until it is forfeited.

 

(3)     Any distribution of less than 100% of the

balances credited to all existing Accounts of a participant pursuant to this

Section 8(c) shall be deemed to be a distribution of the earliest compensation

which would have been paid had it not been deferred.

 

9.  Manner of Election

 

No earlier

than November 1 and no later than December 15 of the year immediately prior to

the year in which such covered compensation would otherwise be earned and paid,

each director and eligible employee shall be entitled to file instruments with

the Committee exercising his/her elections under Section 5 and, in the case of

the director’s or eligible employee’s initial election under the Plan, Section

7(a) of the Plan.  Each election under

Section 5 shall be applicable only to covered compensation earned and otherwise

payable in the immediately subsequent year. 

Notwithstanding the foregoing, (a) in the year in which the Plan is

first implemented, directors and eligible employees shall be entitled to file

such instruments to defer covered compensation for services to be performed

during such year and subsequent to such elections not later than thirty (30)

days after the date the Plan becomes effective and (b) in the first year in

which a director or eligible employee becomes eligible to participate in the

Plan, such director or eligible employee shall be entitled to file such

instruments to defer covered compensation for services to be performed during

such year and subsequent to such elections within thirty (30) days after the

date he/she first becomes eligible. 

Each election under Section 5 shall be irrevocable; provided that a

participant may revoke an election at any time with respect to any covered

compensation payable subsequent to the last day of the calendar month during

which such revocation is made.

 

10.  Administration of Plan

 

The Plan shall

be administered by the Compensation and Stock Option Committee of the Board of

Directors of the Company.  The Committee

shall interpret the Plan and make all decisions with respect to the rights of

directors and eligible employees hereunder; provided, however,

that no member of the Committee shall act on any matter in which such member

has a particular or special interest. 

The forms to be used for making elections pursuant to Section 5 as well

as initial elections pursuant to Section 7 are attached hereto as Exhibits A

and B, respectively.

 

11.  Funding

 

This Plan shall

be unfunded.  Amounts payable hereunder

shall be paid from the general assets of the Company. The Company may establish

a trust pursuant to a trust agreement and make contributions thereto for the

purpose of assisting the Company in meeting its obligations in respect of

benefits payable under the Plan.  Any

such trust agreement shall contain procedures to the following effect:

 

(a)     In the event of the

insolvency of the Company, the trust fund will be available to pay the claims

of any creditor of the Company to whom a distribution may be made in accordance

with state and federal bankruptcy laws. 

The Company shall be deemed to be "insolvent" if the Company

is subject to a pending proceeding as a debtor under the federal Bankruptcy

Code (or any successor federal statute) or any state bankruptcy code.  In the event the Company becomes insolvent,

the Board of Directors and chief executive officer of the Company shall notify

the trustee of that event as soon as practicable.  Upon receipt of such notice, or if the trustee receives other

written allegation of the Company's insolvency, the trustee shall cease making

payments of benefits from the trust fund, shall hold the trust fund for the

benefit of the Company's creditors, and shall take such steps as are necessary

to determine within thirty (30) days whether the Company is insolvent.  In the case of the trustee's actual

knowledge of or other determination of the Company's insolvency, the trustee

will deliver assets of the trust fund to satisfy claims of the Company's

creditors as directed by a court of competent jurisdiction;

 

(b)     The trustee shall resume

payment of benefits under the trust agreement only after the trustee has

determined that the Company is not insolvent (or is no longer insolvent, if the

trustee had previously determined the Company to be insolvent) or upon receipt

of an order of a court of competent jurisdiction requiring such payment.  If the trustee discontinues payment of

benefits pursuant to paragraph (a) of this Section 11 and subsequently resumes

such payment, the first payment on account of a participant following such

discontinuance shall include an aggregate amount equal to the difference

between the payments which would have been made on account of such participant

under the trust agreement and the aggregate payments actually made on account

of such participant by the Company during any such period of discontinuance,

plus interest on such amount at a rate equivalent to the net rate of return

earned by the trust fund during the period of such discontinuance.

 

12.  Reports to Participants

 

The Committee

shall provide to each participant a report twice a year, as of each June 30 and

December 31, detailing the status of that participant’s Accounts.

 

13.  Amendment or Termination

 

This Plan may

be amended or terminated at any time by the Board of Directors of the Company

or by the Committee; provided, however, that no amendment may

reduce the interest rate on any covered compensation deferred pursuant to an

election made prior to the date on which such amendment is adopted and

announced by the Committee, whether or not credited to a participant’s Account

prior to the effective date of such amendment. 

Upon termination of the Plan, the Committee may distribute to each

participant the balances credited to his/her Accounts at the time of such

termination in the form of a lump sum or otherwise as it determines in its sole

discretion.  The Company shall notify

each participant and each beneficiary currently entitled to benefits under the

Plan of termination of the Plan within ninety (90) days after such termination;

provided that the failure to give such notice shall not affect the

Company’s rights hereunder.

 

14.  Non-Assignability

 

Interests in

covered compensation deferred or in a participant’s Accounts shall not be

assignable or transferable or subject to attachment, garnishment, levy,

execution or other legal or equitable process, except by will or the laws of

descent and distribution.

 

15.  Plan Not a Contract of Employment

 

This Plan is

not a contract of employment, and the terms of employment of any employee of

the Albany Group shall not be affected in any way by the Plan or related

instruments except as specifically provided in the Plan or such related

instruments.  The establishment of the

Plan shall not be construed as conferring any legal rights upon any employee

for a continuation of employment, nor shall it interfere with the right of the

Albany Group to discharge any employee and to treat him/her without regard to

the effect which such treatment might have upon him/her as a participant.  Each participant and all persons who may

have or claim any right by reason of his/her participation shall be bound by

the terms of the Plan and all agreements entered into pursuant thereto.

 

16.  Construction

 

(a)     The Plan is intended to

qualify as an unfunded plan maintained primarily for the purpose of providing

deferred compensation for a select group of management or highly compensated

employees as referred to in Section 201(2) of ERISA, and its terms shall be

interpreted accordingly.  Otherwise, the

laws of the State of New York shall control the interpretation and performance

of the terms of the Plan.

 

(b)     If any provision of the

Plan, or the application of any such provision to any person or circumstances,

shall be invalid under any federal or state law, neither the application of

such provision to persons or circumstances other than those as to which such

provision is invalid nor any other provisions of the Plan shall be affected

thereby.

 

Exhibit A

 

ALBANY INTERNATIONAL CORP.

 

CENTENNIAL DEFERRED COMPENSATION PLAN

 

Election as to Amount of Covered Compensation

to be Deferred

The undersigned, [a director] [and] [an eligible employee] under the

Centennial Deferred Compensation Plan (the “Plan”) of Albany International

Corp. (the “Company”), hereby elects as follows pursuant to Section 5 of such

Plan:

Please

withhold from my covered compensation payable in __________ the following:

(YEAR)

(check one only)

 

(a)  ___% of my base salary per month,  ___% of my annual bonus compensation and ___% of any other cash

compensation.

 

(b)  $____ per month out of my base salary, $____ out of my annual

bonus compensation and $____ out of any other cash compensation.

 

(check one only)

 

(a)  ___% of my directors’ fees.

 

(b)  $____ out of my directors’ fees.

 

The foregoing

election shall be effective for the calendar year commencing January 1, ____

and ending December 31 of such year. 

The foregoing election is subject to the terms and conditions of the

Plan, which are incorporated herein by reference.

 

By executing

this election, I acknowledge that:

 

(a)           I have received (i)

a copy of the Plan, (ii) the most recent Annual Report of the Company

containing the Company’s audited financial statements for the most recently

ended fiscal year of the Company and (iii) such other financial information

regarding the Company as I deem necessary in connection with my execution of

this election and my participation in the Plan; and

 

(b)           I understand that my

rights under the Plan are as a general creditor of the Company and that no

funds of the Company will be set aside, in a trust or otherwise, for the

payment of benefits owing to me under the Plan.

 

I

understand that any covered compensation which I defer pursuant to this

election will not be included as “Compensation” for purposes of

determining the percentage of my Compensation that I may have elected to

contribute or to have contributed to my account in the Company’s Prosperity

Plus 401(k) Plan, and that such non-inclusion may reduce the contributions to

such account and may reduce the amount of matching contributions and

profit-sharing contributions (if any) for which I may be eligible under the

Company’s Prosperity Plus 401(k) Plan and Prosperity Plus Employee Stock

Ownership Plan.

 

I also understand that, with respect to any

retirements occurring after November 15, 2000, salary and bonus compensation

that has been deferred by an employee will no longer be excluded for purposes

of determining such employee’s benefits under the Company’s Pension Plus and

Supplemental Executive Retirement plans. 

My decision to defer will not, therefore, have any adverse effect on my

benefits under those plans.

 

I further understand that any covered

compensation which I defer pursuant to this election may nevertheless be

subject to certain employment taxes on a current basis, such as taxes under the

Federal Insurance Contributions (Social Security) Act.

 

 

Executed this _____ day of

____________, ____.

 

 

__________________________________

Signature

 

Employees

of the Albany Group who work outside the United States should consult with

their personal tax adviser regarding the effect of participation in the Plan on

their particular circumstances

 

Exhibit B

 

ALBANY INTERNATIONAL CORP.

 

CENTENNIAL DEFERRED COMPENSATION PLAN

 

Election as to Time and Manner in which Deferred Compensation shall be

Distributed

 

The

undersigned, [a director] [and][an eligible employee] under the Centennial

Deferred Compensation Plan (the “Plan”) of Albany International Corp. (the

“Company”), hereby elects as follows, pursuant to Section 7(a) of such Plan:

 

1.  Time of Distribution

 

The balances

credited to my Accounts (as defined in the Plan) shall be distributed to me, or

such distribution shall commence:

 

(check one only)

 

(a)  _____ on the earlier of _______________ [Month/Day/Year]

or my termination of service as a director of the Company or as an employee of

the Company and its subsidiaries (collectively, the “Albany Group”).

 

(b)  _____ upon my termination of service as an employee of the Albany

Group (whether or not I am then a director of the Company).

 

(c)  _____ upon the later of my termination of service as a director

of the Company or as an employee of the Albany Group.

 

“Termination

of service” shall include any termination of service resulting from my death or

disability (as defined in the Company’s Pension Plus Plan, as amended from time

to time).

 

2.  Manner of Distribution

 

Distribution

shall be made as follows (if option (a) is checked in paragraph 1 above, only

option (a) may be checked below):

 

(check one only)

 

(a)  _____ in a lump sum

 

(b)   _____ in approximately equal monthly

installments over __ years (not to exceed 30)

 

(c)    _____

in a lump sum equal to ___% of my aggregate Account balances on the date

distribution commences, followed by approximately equal monthly installments

over ___ years (not to exceed 30).

 

(d)   in

approximately equal monthly installments over ___ years (not to exceed 28),

followed by a lump sum equal to ___% of my aggregate Account balances on the

date distribution commences.

 

3.  Designation of

Beneficiaries

 

Upon my death,

the following person(s) shall be entitled to receive the balances credited to

my Accounts:

 

	

  Name

  	

   

  	

   

  	

  Address

  	

   

  	

   

  	

  Relationship

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  

 

I understand

that the foregoing elections under paragraphs 1 and 2 above are irrevocable,

except as provided in Sections 7 and 8 of the Plan, and apply to all covered

compensation the receipt of which I may elect to defer in the future pursuant

to the Plan.  The foregoing elections

are subject to the terms and conditions of the Plan, which are incorporated

herein by reference.

 

 

Executed this _____ day of

____________, ____.

 

 

_______________________________________

Signature

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