Document:

Exhibit 10.16.2

 

FIRST AMENDMENT TO THE

DST SYSTEMS, INC.

2005
EQUITY INCENTIVE PLAN

The DST Systems, Inc. 2005 Equity Incentive Plan, as
amended and restated effective May 10, 2005 (the “Plan”), is hereby amended,
effective November 30, 2005, as follows:

I.

Section 2.22(a)(i) is amended to read as follows:

(i) the average of the highest and lowest reported
sales prices on the New York Stock Exchange as reported in a financial
publication of general circulation as selected by the Committee from time to
time;

II.

Section 2.22(a)(ii) is amended by deleting the phrase “as
reported in the appropriate table or listing contained in The Wall Street
Journal” and replacing it with “as reported in a financial publication of
general circulation as selected by the Committee from time to time.”

III.

The last sentence of Section 2.35 is deleted in its
entirety and replaced to read as follows:

Except as provided in Sections 8.1, 9.2 and 10.2, a
Performance Period may be a year or a longer or shorter period.

IV.

Section 8.1 is amended by adding the following
sentence to the end thereof:

If entitlement to Performance Units is conditioned
upon the attainment of Performance Goals in a Performance Period, the
Performance Period will not be less than one year.

V.

Section 10.2 is amended by adding the following
sentence to the end thereof:

In the case of Restricted Stock Units awarded based on
performance in a Performance Period, the Performance Period will not be less
than one year.

 

VI.

The second sentence of Section 13.1 is deleted in
its entirety and replaced to read as follows:

Subject to and consistent with the provisions of the
Plan, Annual Incentive Awards may be granted to any Eligible Person in
accordance with this Section 13.  The
Committee shall from time to time designate the individuals eligible to be
granted an Annual Incentive Award for a Year. 
The Performance Goals for a Year must be established in writing not
later than ninety (90) days after the commencement of the Performance Period
and the outcome must be substantially uncertain at the time the Performance
Goals are established.  Notwithstanding
the preceding sentence, with respect to Covered Employees who are designated as
eligible to be granted an Annual Incentive Award for such Year in accordance
with this Section 13, such designation shall be made not later than ninety (90)
days after the commencement of such Year or, in the case of a Covered Employee
who becomes eligible for an Annual Incentive Award due to being hired or
promoted during the Year, such designation shall not be made after more than
25% of the portion of the Year remaining (after such hiring or promotion) has
elapsed.  The Committee may designate an
Eligible Person as eligible for a full Year or for a period of less than a full
Year.  An Eligible Person who, for any
reason, is designated as eligible to be granted an Annual Incentive Award for a
Year after the Performance Goals for the Year have been set shall only be
eligible to defer a portion of the Annual Incentive Award in accordance with applicable
guidance under Section 409A of the Code. 
The opportunity to be granted an Annual Incentive Award shall be
evidenced by an Award Agreement, which shall contain such terms not
inconsistent with the Plan as the Committee shall determine.

VII.

Section 13.3 is deleted in its entirety and
replaced to read as follows:

Annual Incentive Awards shall be paid as soon as
administratively practicable after the Committee certifies the degree of
attainment of the Performance Goals and determines the amount of the Annual
Incentive Award, but not later than 2 1⁄2 months following the end of the Year to
which the Annual Incentive Award pertains.

VIII.

Section 14.2(d) is amended by deleting the phrase
“Five-Year Anniversary” and replacing it with “Five-Year Anniversary Date.”

1

 

IX.

The first sentence of
Section 14.3 is deleted in its entirety and replaced to read as follows:

Each Eligible Person who
is an employee of the Company or a Designated Subsidiary shall (subject to
Committee approval in the case of a Section 16 Person) be granted a Service
Award as of the Quarter End for the calendar quarter in which each Five-Year
Anniversary Date occurs; provided that
such Eligible Person (a) is an employee of the Company or a Designated
Subsidiary on such Quarter End, or (b) died or had a Termination of
Affiliation on account of disability or Retirement on or after the Eligible
Person’s relevant Five-Year Anniversary Date and such Quarter End.

X.

Section 14.4(a) is deleted in its entirety and
replaced to read as follows:

If an Employee has a Termination of Affiliation and
then becomes reemployed with the Company or a Designated Subsidiary within five
years of such Termination of Affiliation, the Employee’s complete (but not
partial) Years of Service earned prior to such Termination of Affiliation shall
continue to count towards the individual’s Years of Service.  In such case, the individual’s Hire Date (for
purposes of determining the date of the Five-Year Anniversary Date) shall be
deemed to be the date the individual returns to employment with the Company or
a Designated Subsidiary.  No credit shall
be given for any partial or complete Years of Service which occurred prior to a
five (5) year or more break in employment with the Company and its Designated
Subsidiaries.

XI.

Section 14.4(c) is deleted in its entirety and Section
14.4(d) is renumbered as Section 14.4(c).

XII.

The first sentence of Section 14.5(a) is amended to
read as follows:

(a)  Service
Awards granted pursuant to Section 14.3 shall be delivered as soon as
administratively practicable following the applicable Quarter End.

2

 

XIII.

Section 16.1(a)(i) is
amended to add the following to the end thereof after the comma and before the “and”:

or if such amendment, in
the determination of the Board, materially increases benefits accruing to Plan
participants,

 

Executed this 30th day of November, 2005.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  DST SYSTEMS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Kenneth V.
  Hager

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Kenneth V. Hager

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Vice President,
  Chief Financial Officer and Treasurer

  

 

 

3Exhibit 10.17.2

 

FIRST AMENDMENT TO THE

DST SYSTEMS, INC.

2005
NON-EMPLOYEE DIRECTORS’ AWARD PLAN

 

The DST Systems, Inc. 2005 Non-Employee Directors’
Award Plan, effective May 10, 2005 (the “Plan”), is hereby amended, effective
November 30, 2005, as follows:

I.

Section 2.17(a)(i) is deleted in its entirety and
replaced to read as follows:

(i) the average of the highest and lowest reported
sales prices on the New York Stock Exchange as reported in a financial
publication of general circulation as selected by the Committee from time to
time;

II.

Section 2.17(a)(ii) is amended by deleting the phrase “as
reported in the appropriate table or listing contained in The Wall Street
Journal” and replacing it with “as reported in a financial publication of
general circulation as selected by the Committee from time to time.”

III.

Section 10.1(a) is amended to add the following
to the end thereof after the comma:

or if such amendment, in the determination of the
Board, materially increases benefits accruing to Plan participants,

 

                Approved
by the Board of Directors November 30, 2005.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ M. Jeannine
  Strandjord

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  M. Jeannine
  StrandjordExhibit 10.21

 

Exhibit C

 

ESURANCE HOLDINGS, INC. 

SELECT DEFERRED COMPENSATION PLAN

 

ARTICLE I

 

Purpose

 

SECTION 1.01.      Purpose. The purpose of this Plan
is to provide Key Employees with the ability to defer the receipt of certain
types of Compensation. The Plan is also intended to establish a method of
attracting and retaining persons whose abilities, experience and judgment can
contribute to the long-term strategic objectives of the Company.

 

SECTION 1.02.      Unfunded Plan. The Company intends
that the Plan be an unfunded non-qualified deferred compensation plan
maintained primarily for the purpose of providing deferred benefits for a
select group of management or highly compensated service providers of the
Company and its subsidiaries. The Company intends for the Plan to qualify as a “top
hat” plan for purposes of ERISA.

 

ARTICLE II

 

Definitions

 

The following
terms when used in this Plan have the designated meanings unless a different
meaning is clearly required by the context.

 

SECTION 2.01.      “Account” means the
records maintained on the books of the Company to reflect deferrals of
Compensation by a Participant pursuant to Section 3.03.

 

SECTION 2.02.      “Administrator” means the person or
committee designated by the Board as responsible for the day-to-day administration
of the Plan.

 

SECTION 2.03.      “Affiliate” of any Person means any
other Person controlled by, controlling or under common control with such
Person.

 

SECTION 2.04.      “After-Tax” means, with respect to
any amount, (i) such amount multiplied by (ii) 1 minus the highest marginal tax
rate for corporations applicable under the Code.

 

SECTION 2.05.      “Average Deployed Capital” means,
for any period, the average daily amount of capital invested in, loaned to, or
guaranteed on behalf of (including reinsurance capital and sunk costs) the
Esurance Segment by its Affiliates in such period, as determined by the Board. Capital
deployed by Affiliates in the Esurance Segment at June 30, 2005 was $224.6
million, consisting of $49.3 million of equity, $73.4 million of debt and
accrued interest and $101.9 million of reinsurance capital.

 

 

SECTION 2.06.      “Beneficiary” means
the person or persons designated pursuant to Article 5 to receive a benefit
pursuant to Section 4.04(a) in the event of a Participant’s death before
his benefit under this Plan has been paid.

 

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

 

SECTION 2.08.      “Cause” means (i) an act or
omission by the Participant that constitutes a felony, (ii) willful gross
negligence or willful gross misconduct by the Participant in connection with
his employment by the Company or by a subsidiary which causes, or is likely to
cause, material loss or damage or substantial public disgrace or disrepute to
the Company, (iii) the commission of any other act or omission by the
Participant involving dishonesty, disloyalty or fraud with respect to the
Company or any of its subsidiaries, or (iv) the Participant’s substantial and
repeated failure to perform duties as reasonably directed by the Board or
supervisor, as applicable.

 

SECTION 2.09.      A “Change in Control” shall have
occurred when (i) any person or group (within the meaning of sections 13(d) or
14(d)2 of the Securities Exchange Act of 1934, as amended) other than White
Mountains Insurance Group, Ltd  (“WTM”)
or any of its subsidiary or affiliated companies, an underwriter temporarily
holding securities of the Company in connection with a public issuance thereof,
or an employee benefit plan of the Company or its affiliates, shall become the
beneficial owner (within the meaning of rule 13d-3 under the Exchange Act) of
more than 50% of the fair market value or total voting power of the then
outstanding common stock of the  Company,
or (ii) the Company shall have disposed of all or substantially all of the
assets of the Company to any person or group other than WTM or its subsidiary
or affiliated companies, provided, however, that a Change in Control shall not
be deemed to have occurred for purposes of this Plan if a change in the
ownership or effective control of the Company, or in the ownership of a
substantial portion of the assets of the Company, has not occurred for purposes
of Section 409A of the Code.

 

SECTION 2.10.      “Code” means the Internal Revenue
Code of 1986, as amended.

 

SECTION 2.11.      “Company” means Esurance Holdings,
Inc. and any successor thereto.

 

SECTION 2.12.      “Compensation” means (i)
consideration due to Key Employees in connection with their sale of EINC shares
and surrender of EINC options pursuant to the 2005 Restructuring  Plan, and (ii) appreciation on deferred
compensation balances under this Plan.

 

SECTION 2.13.      “Director” means any member of the
Board who is not an employee of the Company or any of its subsidiaries.

 

SECTION 2.14.      “Economic
Net Income” means, for any period, the After-Tax net income (after all
compensation expenses) of the Esurance Segment for such period determined in
accordance with GAAP, adjusted to (i) standardize investment returns at the
ten-year treasury yield plus 100 basis points, and (ii) amortize policy
acquisition expenses over the term of the policy and its expected renewals, in
each case as determined by the Board. As used

 

2

 

in this definition, “compensation expenses”
include (w) salaries and bonuses, (x) cash long term incentive plan awards, (y)
appreciation on all deferred compensation balances regardless of investment
choice and (z) all other compensation expenses.

 

SECTION 2.15.      “Economic
Return” means, for any period, (i) Economic Net Income for such period, plus
(ii) Franchise Value Added for such period.

 

SECTION 2.16.      “EDU Value” means (i) initially
(e.g., with respect to amounts credited to Accounts in connection with the 2005
Restructuring Plan), $1,000.00, and (ii) thereafter as the Board determines periodic
Net EROAC, the product of (A) EDU Value immediately prior to such Valuation
Date, and (B) the sum of (x) one and (y) Net EROAC for the latest period. For
example, if the first periodic Net EROAC determined following the initial
creation of Accounts equals 2.0%, then EDU Value would grow to $1,020.00. If
the next subsequent periodic Net EROAC was determined to equal -0.5%, then EDU
Value be reduced to $1,014.90. Net EROAC is intended as a measure of economic
value added to (or subtracted from) the Esurance Segment during the relevant
period. At any time the Board may, and at least annually the Board will, assess
the appropriateness of using Net EROAC in such capacity and, in its discretion,
the Board may (x) amend the calculation of Net EROAC or any of its components,
or (y) establish an entirely new criteria for determining future EDU Value. These
actions shall be deemed within the Board’s amendment authority under Section
6.11.

 

SECTION 2.17.      “EINC” means Esurance Inc., a
Delaware corporation.

 

SECTION 2.18.      “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.

 

SECTION 2.19.      “Esurance Deferred Unit” or “EDU”
means a phantom unit under this Plan with a value at any time equal to the EDU
Value then in effect.

 

SECTION 2.20.      “Esurance Segment” means the
Company and its subsidiaries on a consolidated basis, together with the assets
and liabilities of other direct or indirect subsidiaries of White Mountains
Insurance Group, Ltd. which are maintained in support of the business of the Company
and its subsidiaries (including, without limitation, quota shared business and
reinsurance). 

 

SECTION 2.21.      “Fiscal Year” means
the calendar year.

 

SECTION 2.22.      “Franchise Value Added” means, for
any period, the product, After-Tax, of (i) the Franchise Value Multiple in
effect for such period, and (ii) the excess of the Esurance Segment’s direct
written premium as of the last day in such period over direct written premium
as of the first day in such period, as determined by the Board.

 

SECTION 2.23.      “Franchise Value Multiple” means,
initially, 0.3, or such other number as is determined by the Board in its sole
discretion following any Reassessment Event.

 

SECTION 2.24.      “Fund” means any investment fund
selected by the Administrator to be offered under the Plan.

 

3

 

SECTION 2.25.      “Key Employee” means any executive
employee, other overtime-exempt employee or consultant of the Company or its
participating subsidiaries who the Administrator, in its sole discretion,
decides is important to the ongoing business objectives of the Esurance
Segment.

 

SECTION 2.26.      “Net EROAC”
initially means, for any period, a fraction (which may be greater than or less
than one), the numerator of which is the Economic Return for such period and
the denominator of which is the Average Deployed Capital for such period.

 

SECTION 2.27.      “Participant” means
a Key Employee who has an Account under this Plan to which amounts stand
credited.

 

SECTION 2.28.      “Person” means an individual, a partnership,
a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization and a
governmental entity or any department, agency or political subdivision thereof.

 

SECTION 2.29.      “Plan” means this “Esurance
Holdings, Inc. Deferred Compensation Plan” as amended from time to time in
accordance with its terms.

 

SECTION 2.30.      “Plan Year” means the calendar
year.

 

SECTION 2.31.      “Reassessment Event” means any
event, transaction, fact or circumstance affecting the business of the Esurance
Segment which the Board in its sole discretion believes justifies a change to
the Franchise Value Multiple.

 

SECTION
2.32.      “Specified
Employee Release Date” has the meaning set forth in Section 4.04(c).

 

SECTION 2.33.      “Termination of Service” means a
Key Employee’s separation from service from any company within the White
Mountains Insurance Group, Ltd. family of companies within the meaning of
Section 409A(a)(2) of the Code for any reason.

 

SECTION 2.34.      “Valuation Date” means the last
business day of each calendar year and any other day that the Administrator
makes a new determination of Account values.

 

SECTION 2.35.      “1999 Option Plan” means the
Esurance Inc. 1999 Stock Plan.

 

SECTION 2.36.      “2001 Option Plan” means the
Esurance Inc. 2001 Stock Plan.

 

SECTION 2.37.      “2005 Restructuring Plan” means the
establishment of balances under this Plan for certain Key Employees in exchange
for their sale of shares of, and surrender of options to acquire, common stock
of Esurance Inc.

 

4

 

ARTICLE III

 

Eligibility and Deferrals

 

SECTION 3.01.      Eligibility. Each Key Employee
designated by the Board as eligible to participate in the Plan shall be
eligible to be a Participant hereunder. The Board has the sole and complete
discretion to determine which Key Employees are eligible to participate and no
Key Employee shall have a right to be designated as a Participant.

 

SECTION 3.02.      Accounts. The
Administrator shall establish an Account for each Key Employee who elects to
defer Compensation pursuant to Section 3.03(a) or with respect to whom the
Board otherwise determines to establish an account balance and the value
determined pursuant to Section 3.05 shall be credited to such Account.

 

SECTION 3.03.      Deferral of Compensation; Permitted
Investments.

 

(a)  Restructuring Plan. Account balances
created in connection with the 2005 Restructuring Plan shall be invested
pursuant to Section 3.05(b). No payment date election shall be permitted with
respect such Account balances.

 

(b)  No Revocation. Such directions and
elections, once executed and filed with the Administrator, cannot be revoked
after the date specified by the Administrator.

 

SECTION 3.04.      Payment Date.

 

(a)           2005 Restructuring Plan. Payments
in respect of the portion of Accounts attributable to initial balances created
in connection with the 2005 Restructuring Plan shall be made according to
Article IV.

 

(b)           Method of Payments.
All amounts becoming payable to a Participant under this Plan shall be paid in
a single payment.

 

SECTION 3.05.      Value of Participants’ Accounts.
The initial Account balances hereunder shall be deemed invested in EDUs as of
the date of the closing of the 2005 Restructuring Plan.

 

(a)           Crediting of Income, Gains and Losses.
As of each Valuation Date, income, gain and loss equivalents (determined as if
the Account is invested in the manner set forth below) attributable to the
period following the next preceding Valuation Date shall be credited to and/or
deducted from the Account.

 

(b)           Investment of Account Balance.
100% of Account balances in the Plan shall at all times prior to distribution
be deemed invested in EDUs.

 

(c)           Default Provision. Notwithstanding subparagraph (b) above, the Board, in its sole discretion,
may determine that all Compensation deferrals shall be deemed to be invested in
a Fund determined by the Board other than EDUs.

 

5

 

(d)           Determinations of
Account Value. From time to time in its discretion but not less than
annually as of December 31, the Board shall determine Account values under the
Plan. At such times the Board shall make a determination of the Net EROAC for
the applicable period ending on such Valuation Date and adjust EDU Value
accordingly. Net EROAC for calendar year 2005 shall be calculated as if the
year commenced on July 1, 2005. Determinations of Net EROAC and EDU
Value by the Board are final and cannot be challenged by Participants.

 

(e)           Payment of
Account Balances.

 

(i)  Subject to
Section 3.05(f), distributions from the Plan triggered by events which occur
within the first three months of any calendar year will be paid based on
Account values as of the immediately preceding year-end Valuation Date. The
date of a distribution pursuant to Section 4.05 shall be considered the “event”
for purposes of this paragraph.

 

(ii)  For distributions
which occur after the end of the third month in any calendar year and to which
Section 3.05(e)(i) does not apply (“Non-standard Distributions”), the Board
will calculate a special Net EROAC for the period commencing with the
immediately preceding annual Valuation Date through the last day of the quarter
immediately preceding the date of Non-standard Distribution and update the
value of such Participant’s Account accordingly for purposes of making such
distribution. Such special determinations will be unique to the Participant for
whom they were made, and do not represent official Valuation Date calculations
for any other Participant or any other purpose.

 

(f)            Reassessment Event. The Board
may in its discretion determine from time to time that an event, transaction,
fact or circumstance affecting the business of the Esurance Segment has
occurred which validates the use of a higher or lower multiple in determining
the “Franchise Value Added” component of Net EROAC. The determination of the
new Franchise Value Multiple and the manner in which Net EROAC will be adjusted
to reflect such new Franchise Value Multiple will be in the Board’s sole
discretion.

 

(g)           Statements. The
Company shall provide an annual statement to each Participant showing such
information as the Board deems appropriate including, without limitation, the
aggregate amount credited to such Participant’s Account as of a reasonably
current date.

 

ARTICLE IV

 

Payment of Benefits

 

SECTION 4.01.      Nonforfeitability. A
Participant’s right to the value of his Account shall be fully vested and
nonforfeitable at all times.

 

SECTION 4.02.      Income; Payment Amount.
Any payment made pursuant to Sections 4.03, 4.04, 4.05 or 4.06 shall
reflect the income, gains and losses calculated in the manner described in
Section 3.05.

 

6

 

SECTION 4.03.      Time of Payment. The
amount credited to the Account of each Participant shall become payable to the
Participant only as provided in Sections 4.04, 4.05 and 4.06.

 

SECTION 4.04.      Termination of Service.
In the event of a Participant’s Termination of Service while amounts stand
credited to his Account, such amounts shall be paid as provided in this
Section 4.04.

 

(a)           Death of Participant.
If the Participant’s Termination of Service is on account of his death, his
Account shall be paid to his Beneficiary as a single payment as soon as
practicable, but not later than thirty days after the Participant’s death.

 

(b)           Other Termination. If
the Participant’s Termination of Service is for a reason other than death, his
Account shall be paid to him as a single payment as soon as practicable, but in
no event later than thirty days after the date on which such Termination of
Service occurs.

 

(c)           Specified Employees. Notwithstanding
anything to the contrary in Section 4.04, to the extent required to comply with
Section 409A of the Code, in the case of any Participant who is deemed a “specified
employee” for purposes of Section 409A of the Code, such Participant’s Account
balance shall not be paid to him prior to the date (the “Specified Employee
Release Date”) that is six months after the date of Termination of Service, and
shall be paid as a single payment as soon as practicable following such
Specified Employee Release Date.

 

SECTION 4.05.      Withdrawal for Emergency Need.

 

(a)  Authorization. To
the extent consistent with Section 409A of the Code, the Board may permit a
Participant who demonstrates an emergency need to withdraw from the Plan an
amount no greater than the amount determined by the Board to be reasonably
necessary to satisfy such emergency need.

 

(b)  Emergency Need. For
purposes of this Section 4.05, an emergency need is a severe financial
hardship of a Participant resulting from (i) a sudden and unexpected
illness of or accident to the Participant or a dependent within the meaning of
Section 152(a) of the Code, (ii) a casualty loss to the Participant’s
property or (iii) other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the Participant’s control. A
need is not an emergency need to the extent that it is relieved by
reimbursement or compensation by insurance or otherwise, or by liquidation of
the Participant’s assets insofar as such liquidation would not cause severe
financial hardship, or by cessation of deferrals under the Plan. The Board
shall determine in its sole discretion whether and to what extent an emergency
need exists.

 

SECTION 4.06.      Change in Control. Unless otherwise
elected by a Participant in accordance with procedures established by the
Administrator, each Participant’s Account shall be distributed in full in a
cash lump sum upon a Change in Control.

 

SECTION 4.07.      Source of Payment. The
Compensation deferred pursuant to this Plan (and the income, gains and losses
credited thereon) shall be a general obligation of

 

7

 

the Company. The claim of a Participant or
Beneficiary to a benefit shall at all times be merely the claim of an unsecured
creditor of the Company. No trust, security, escrow, or similar account need be
established for the purpose of paying benefits hereunder. The Company shall not
be required to purchase, hold or dispose of any investments pursuant to this
Plan; however, if in order to cover its obligations hereunder the Company
elects to purchase any investments the same shall continue for all purposes to
be a part of the general assets and property of the Company, subject to the
claims of its general creditors and no person other than the Company shall by
virtue of the provisions of this Plan have any interest in such assets other
than an interest as a general creditor.

 

SECTION 4.08.      Withholding. All
amounts credited to Participants’ Accounts pursuant to this Plan and all
payments under the Plan shall be subject to any applicable withholding
requirements imposed by any tax (including, without limitation, FICA) or other
law. If any of the taxes referred to above are due at the time of deferral,
instead of at the time of payout, the Participant will be required to pay (by
payroll deduction or check) to the Company the Participant’s share of any such
taxes then due and payable.

 

SECTION 4.09.      Right of Offset. Any
amount payable pursuant to this Plan shall be reduced at the discretion of the
Administrator to take account of any amount due, and not paid, by the
Participant to the Company at the time payment is to be made hereunder.

 

SECTION 4.10.      Payment Denomination. All distributions
under the Plan shall be made in cash.

 

SECTION 4.11.      Defeasance. Subject to Section
4.07, the Board may instruct the Company to defease the Company’s obligations
under the Plan.

 

SECTION 4.12.      Reassessment Event Look-Back Payment.
In the event a Reassessment Event occurs within the twelve months following a
Participant’s Termination of Service due to a termination of the Participant’s
employment or service by the Company or its subsidiaries without Cause, the
Company will make a payment to such Participant (subject to applicable tax
withholding) in an amount which, in the Board’s determination, represents the
additional amount (on a pre-tax basis) which such Participant would have
received in respect of his or her Account if the Board’s adjustment to the
Franchise Value Multiple in the manner applicable to all other Participants had
been in effect at the time the original liquidation value of the Participant’s
Account was determined.

 

ARTICLE V

 

Beneficiaries

 

SECTION 5.01.      Beneficiary Designation.

 

(a)           Designation. A Participant may
from time to time designate, in the manner specified by the Administrator, a
Beneficiary to receive payment pursuant to Section 4.04 in the event of
his death.

 

8

 

(b)           Absence of Beneficiary.
In the event that there is no properly designated Beneficiary living at the
time of a Participant’s death, his benefit hereunder shall be paid to his
estate.

 

SECTION 5.02.      Payment to Incompetent.
If any person entitled to benefits under this Plan shall be a minor or shall be
physically or mentally incompetent in the judgment of the Administrator, such
benefits may be paid in any one or more of the following ways, as the
Administrator in his sole discretion shall determine:

 

(a)           to the legal representatives of such
minor or incompetent person;

 

(b)           directly to such minor or incompetent
person; or

 

(c)           to a parent or guardian of such minor
or incompetent person, to the person with whom such minor or incompetent person
resides, or to a custodian for such minor under the Uniform Gifts to Minors Act
(or similar statute) of any jurisdiction.

 

Payment to any
person in accordance with the foregoing provisions of this Section 5.02
shall to that extent discharge the Company, which shall not be required to see
to the proper application of any such payment.

 

SECTION 5.03.      Doubt as to Right To Payment.
If any doubt exists as to the right of any person to any benefits under this
Plan or the amount or time of payment of such benefits (including, without
limitation, any case of doubt as to identity, or any case in which any notice
has been received from any other person claiming any interest in amounts
payable hereunder, or any case in which a claim from other persons may exist by
reason of community property or similar laws), the Administrator may, in its
discretion, direct that payment of such benefits be deferred until such right
or amount or time is determined, or pay such benefits into a court of competent
jurisdiction in accordance with appropriate rules of law, or direct that
payment be made only upon receipt of a bond or similar indemnification (in such
amount and in such form as is satisfactory to the Administrator).

 

SECTION 5.04.      Spendthrift Clause.
No benefit, distribution or payment under the Plan may be anticipated, assigned
(either at law or in equity), alienated or subject to attachment, garnishment,
levy, execution or other legal or equitable process whether pursuant to a “qualified
domestic relations order” as defined in Section 414(p) of the Code or
otherwise.

 

ARTICLE VI

 

Administration and Reservation of
Rights

 

SECTION 6.01.      Powers of the Board.
The Board shall have the power and discretion to

 

(a)           determine all questions arising in
the interpretation and application of the Plan;

 

9

 

(b)           determine the person or persons to
whom benefits under the Plan shall be paid;

 

(c)           decide any dispute arising hereunder;

 

(d)           correct defects, supply omissions and
reconcile inconsistencies to the extent necessary to effectuate the Plan; and

 

(e)           have all such other powers as may be
necessary to discharge its duties hereunder; provided  that any
determination involving a Participant who is a member of the Board shall be
made by the other members of the Board.

 

SECTION 6.02.      Powers of the Administrator. The
Administrator shall have the power and discretion to

 

(a)           promulgate and enforce such rules,
regulations and procedures as shall be proper for the efficient administration
of the Plan;

 

(b)           determine all questions arising in
the administration of the Plan;

 

(c)           compute the amount of benefits and
other payments which shall be payable to any Participant in accordance with the
provisions of the Plan;

 

(d)           make recommendations to the Board
with respect to proposed amendments to the Plan;

 

(e)           advise the Board regarding the known
future need for funds to be available for distribution;

 

(f)            file all reports with government
agencies, Participants and other parties as may be required by law, whether
such reports are initially the obligation of the Company or the Plan; and

 

(g)           have all such other powers as may be
necessary to discharge its duties hereunder.

 

SECTION 6.03.      Claims Procedure. If
the Board denies any Participant’s or Beneficiary’s claim for benefits under
the Plan:

 

(a)           the Board shall notify such
Participant or Beneficiary of such denial by written notice which shall set
forth the specific reasons for such denial; and

 

(b)           the Participant or Beneficiary shall
be afforded a reasonable opportunity for a full and fair review by the Board of
the decision to deny his claim for Plan benefits.

 

SECTION 6.04.      Consent. By
electing to become a Participant, each Participant shall be deemed conclusively
to (i) have accepted and consented to all terms of the Plan and all actions or
decisions made by the Administrator or the Board with regard to the Plan

 

10

 

and (ii) have agreed that the Company, the
Administrator and the Board (and any person who is employed by, is a member of,
or provides services to or on behalf of, any of the foregoing) shall not have
any liability related to, or be responsible for any claim related to, the
incurrence by the Participant of any tax, interest expense, loss of deferral
benefit, or any other obligation, liability or damage, in each case, arising
under or related to Section 409A of the Code. This Section 6.04 shall apply to,
and be binding upon, the Beneficiaries, distributees and personal
representatives and other successors in interest of each Participant.

 

SECTION 6.05.      Agents and Expenses.
The Administrator or the Board may employ agents and provide for such clerical,
legal, actuarial, accounting, medical, advisory or other services as it deems
necessary to perform its duties under this Plan. The cost of such services and
all other expenses incurred by the Administrator or the Board in connection
with the administration of the Plan shall be paid by the Company.

 

SECTION 6.06.      Allocation of Duties.
The duties, powers and responsibilities reserved to the Board may be allocated
among its members so long as such allocation is pursuant to written procedures
adopted by the Board, in which case no Board member shall have any liability,
with respect to any duties, powers or responsibilities not allocated to him,
for the acts or omissions of any other Board member.

 

SECTION 6.07.      Delegation of Duties.
The Administrator and the Board may delegate any of their respective duties to
employees of the Company or its subsidiaries.

 

SECTION 6.08.      Actions Conclusive.
Any action on matters within the discretion of the Administrator or the Board
shall be final, binding and conclusive.

 

SECTION 6.09.      Records and Reports.
The Administrator and the Board shall maintain adequate records of their
respective actions and proceedings in administering this Plan and shall file
all reports and take all other actions as are deemed appropriate in order to
comply with any Federal or state law. Without limiting the foregoing, upon
request, the Administrator shall provide to the Board the aggregate amounts
deemed invested under the Plan and such other information requested by the
Board.

 

SECTION 6.10.      Liability and Indemnification.
The Administrator and the Board shall perform all duties required of them under
this Plan in a prudent manner. The Administrator and the Board shall not be
responsible in any way for any action or omission of the Company, its
subsidiaries or their employees in the performance of their duties and
obligations as set forth in this Plan. The Administrator and the Board also
shall not be responsible for any act or omission of any of their respective
agents provided that such agents were prudently chosen by the Administrator or
the Board and that the Administrator or the Board relied in good faith upon the
action of such agents.

 

SECTION 6.11.      Right to Amend or Terminate.
The Board may at any time amend the Plan in any respect, retroactively or
otherwise, or terminate the Plan in whole or in part for any other reason
(including, without limitation, following any Change in Control Event within
the meaning of Section 409A of the Code). However, except as permitted pursuant
to the terms of this Plan, no such amendment or termination shall reduce the
amount standing credited

 

11

 

to any Participant’s Account as of the date
of such amendment or termination. Following a termination of the Plan, income,
gains and losses shall continue to be credited to each Account in accordance
with the provisions of this Plan until the time such Accounts are paid out. In
the event that WTM’s beneficial ownership of the Company’s then outstanding
common stock falls below thirty-five percent, the Plans will be terminated and
Account balances will be distributed upon the next occurring event or series of
events that would permit such actions to be taken in compliance with Section
409A of the Code (i.e., without causing Participants to incur penalty taxes as
a result of the distribution).

 

SECTION 6.12.      Usage. Whenever
applicable, the masculine gender, when used in the Plan, includes the feminine
gender, and the singular includes the plural.

 

SECTION 6.13.      Separability. If
any provision of the Plan is held invalid or unenforceable, its invalidity or
unenforceability shall not affect any other provisions of the Plan, and the
Plan shall be construed and enforced as if such provision had not been included
therein.

 

SECTION 6.14.      Captions. The
captions in this document are inserted only as a matter of convenience and for
reference and in no way define, limit, enlarge or describe the scope or intent
of the Plan and shall in no way affect the Plan or the construction of any
provision thereof.

 

SECTION 6.15.      Right of Discharge Reserved.
Nothing contained in this Plan shall be construed as a guarantee or right of
any Participant to be continued as a employee or consultant of the Company or
its subsidiaries (or of a right of a Key Employee or Participant to any
specific level of Compensation) or as a limitation of the right of the Company
or its subsidiaries to terminate any Key Employee or Participant.

 

SECTION 6.16.      Governing Law and Construction.
The Plan is intended to constitute an unfunded, nonqualified deferred
compensation arrangement. Except to the extent preempted by Federal law, all
rights under the Plan shall be governed by and construed in accordance with the
laws of the State of New York without regard to principles of conflicts of law.
No action shall be brought by or on behalf of any Participant or Beneficiary
for or with respect to benefits due under this Plan unless the person bringing
such action has timely exhausted the Plan’s claim review procedure.

 

SECTION 6.17.      Section 409A of the Code.
The Plan is intended to comply with the requirements of Section 409A of the
Code, and, notwithstanding anything in the Plan to the contrary, the
Administrator and the Board are hereby authorized to take such action as either
determines necessary or appropriate to modify the provisions of this Plan to
ensure that the Plan so complies. All references in the Plan to Section 409A of
the Code shall include any successor provision thereto and any guidance
(whether in the form of notices, regulations or otherwise) promulgated
thereunder. Subject to Section 6.11, notwithstanding anything to the contrary
contained herein, any provision of this Plan or any administrative procedure
promulgated with respect to the Plan that is inconsistent with Section 409A of
the Code (excluding, for this purpose, Section 6.04 hereof) shall be
automatically deemed amended to the minimum extent necessary to comply with
Section 409A of the Code.

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}]]