Document:

Exhibit 10.56

 

SECOND AMENDED & RESTATED KEMET CORPORATION

 

DEFERRED COMPENSATION PLAN

 

 

SECOND AMENDED & RESTATED KEMET CORPORATION

DEFERRED COMPENSATION PLAN

 

TABLE
OF CONTENTS

 

ARTICLE 1

DEFINITIONS

 

	
  1.1

  	
  ACCOUNT

  	
  1

  
	
  1.2

  	
  AGREEMENT

  	
  1

  
	
  1.3

  	
  BENEFICIARY

  	
  1

  
	
  1.4

  	
  BOARD

  	
  1

  
	
  1.5

  	
  CHANGE
  IN CONTROL

  	
  2

  
	
  1.6

  	
  CODE

  	
  2

  
	
  1.7

  	
  COMPENSATION

  	
  2

  
	
  1.8

  	
  COMPENSATION
  DEFERRAL ACCOUNT

  	
  2

  
	
  1.9

  	
  COMPENSATION
  DEFERRALS

  	
  2

  
	
  1.10

  	
  DISABILITY

  	
  2

  
	
  1.11

  	
  EFFECTIVE
  DATE

  	
  2

  
	
  1.12

  	
  ELECTION
  FORM

  	
  2

  
	
  1.13

  	
  ELIGIBLE
  EMPLOYEE

  	
  2

  
	
  1.14

  	
  EMPLOYER

  	
  2

  
	
  1.15

  	
  EMPLOYER
  CONTRIBUTION CREDIT ACCOUNT

  	
  2

  
	
  1.16

  	
  EMPLOYER
  CONTRIBUTION CREDITS

  	
  3

  
	
  1.17

  	
  ENTRY
  DATE

  	
  3

  
	
  1.18

  	
  PARTICIPANT

  	
  3

  
	
  1.19

  	
  PERFORMANCE-BASED
  COMPENSATION

  	
  3

  
	
  1.20

  	
  PLAN

  	
  3

  
	
  1.21

  	
  PLAN
  YEAR

  	
  3

  
	
  1.22

  	
  SEPARATION
  FROM SERVICE

  	
  3

  
	
  1.23

  	
  SPECIFIED
  EMPLOYEE

  	
  3

  
	
  1.24

  	
  TRUST

  	
  3

  
	
  1.25

  	
  TRUSTEE

  	
  3

  
	
  1.26

  	
  VALUATION DATE

  	
  4

  

 

ARTICLE 2

ELIGIBILITY AND
PARTICIPATION

 

	
  2.1

  	
  REQUIREMENTS

  	
  4

  
	
  2.2

  	
  RE-EMPLOYMENT

  	
  4

  
	
  2.3

  	
  CHANGE OF EMPLOYMENT
  CATEGORY

  	
  4

  

 

i

 

ARTICLE 3

CONTRIBUTIONS AND CREDITS

 

	
  3.1

  	
  PARTICIPANT
  COMPENSATION DEFERRALS

  	
  4

  
	
  3.2

  	
  EMPLOYER
  CONTRIBUTION CREDITS

  	
  6

  
	
  3.3

  	
  CONTRIBUTIONS TO THE TRUST

  	
  6

  

 

ARTICLE 4

ALLOCATION OF FUNDS

 

	
  4.1

  	
  INVESTMENT
  AUTHORITY OVER ACCOUNT

  	
  7

  
	
  4.2

  	
  ACCOUNTING
  FOR DISTRIBUTIONS

  	
  7

  
	
  4.3

  	
  SEPARATE
  ACCOUNTS

  	
  7

  
	
  4.4

  	
  DEEMED
  INVESTMENT DIRECTIONS OF PARTICIPANTS

  	
  7

  
	
  4.5

  	
  EXPENSES AND TAXES

  	
  9

  

 

ARTICLE 5

ENTITLEMENT TO BENEFITS

 

	
  5.1

  	
  PAYMENT
  DATES

  	
  9

  
	
  5.2

  	
  UNFORESEEABLE
  EMERGENCY DISTRIBUTIONS

  	
  10

  
	
  5.3

  	
  DEATH;
  DISABILITY

  	
  10

  
	
  5.4

  	
  FORFEITURES

  	
  11

  

 

ARTICLE 6

DISTRIBUTION OF BENEFITS

 

	
  6.1

  	
  AMOUNT

  	
  11

  
	
  6.2

  	
  METHOD
  OF PAYMENT

  	
  11

  
	
  6.3

  	
  ACCELERATIONS

  	
  12

  
	
  6.4

  	
  DEATH
  OR DISABILITY BENEFITS

  	
  12

  
	
  6.5

  	
  DELAYS

  	
  12

  
	
  6.6

  	
  PAYMENT OF BENEFITS

  	
  13

  

 

ARTICLE 7

BENEFICIARIES; PARTICIPANT DATA

 

	
  7.1

  	
  DESIGNATION OF BENEFICIARIES

  	
  13

  
	
  7.2

  	
  INFORMATION TO BE
  FURNISHED BY PARTICIPANTS AND BENEFICIARIES; INABILITY TO LOCATE PARTICIPANTS
  OR BENEFICIARIES

  	
  13

  

 

ARTICLE 8

ADMINISTRATION

 

	
  8.1

  	
  ADMINISTRATIVE AUTHORITY

  	
  14

  
	
  8.2

  	
  LITIGATION

  	
  15

  

 

ii

 

	
  8.3

  	
  CLAIMS PROCEDURE

  	
  15

  

 

ARTICLE 9

AMENDMENT

 

	
  9.1

  	
  RIGHT
  TO AMEND

  	
  18

  
	
  9.2

  	
  AMENDMENTS TO ENSURE
  PROPER CHARACTERIZATION OF PLAN

  	
  18

  

 

ARTICLE 10

SUSPENSION OR TERMINATION OF THE PLAN

 

	
  10.1

  	
  EMPLOYER’S
  RIGHT TO SUSPEND PLAN

  	
  19

  
	
  10.2

  	
  AUTOMATIC
  TERMINATION OF PLAN

  	
  19

  
	
  10.3

  	
  TERMINATION AND
  LIQUIDATION OF THE PLAN

  	
  19

  

 

ARTICLE 11

THE TRUST

 

	
  11.1

  	
  ESTABLISHMENT
  OF TRUST

  	
  19

  

 

ARTICLE 12

MISCELLANEOUS

 

	
  12.1

  	
  LIABILITY
  OF EMPLOYER; LIMITATIONS ON LIABILITY OF EMPLOYER OR EMPLOYER

  	
  20

  
	
  12.2

  	
  CONSTRUCTION

  	
  20

  
	
  12.3

  	
  SPENDTHRIFT
  PROVISION

  	
  20

  
	
  12.4

  	
  DISTRIBUTION
  TIMING

  	
  21

  
	
  12.5

  	
  AGGREGATION
  OF EMPLOYERS

  	
  21

  
	
  12.6

  	
  AGGREGATION
  OF PLANS

  	
  21

  
	
  12.7

  	
  USERRA

  	
  21

  
	
  12.8

  	
  TAX WITHHOLDING

  	
  21

  

 

iii

 

SECOND AMENDED & RESTATED KEMET CORPORATION

DEFERRED COMPENSATION PLAN

 

RECITALS

 

By executing the attached Adoption Agreement
(the “Agreement”), the Employer, as identified in the Agreement, adopted the
Amended & Restated KEMET Corporation Deferred Compensation Plan (the “Plan”)
effective as provided in the Agreement. The Employer hereby amends and restates
the Plan effective December 31, 2008. 
This Plan is intended to offer a select group of the Employer’s
management or highly compensated employees an opportunity to elect to defer the
receipt of compensation in order to provide deferred compensation benefits
taxable pursuant to section 451 of the Internal Revenue Code of 1986, as
amended (the “Code”), and to provide a deferred compensation vehicle to which
the Employer, in its discretion, may credit certain amounts on behalf of
participants.  The Plan is intended to be
a “top-hat” plan (i.e., an unfunded deferred compensation plan maintained for a
select group of management or highly-compensated employees) under sections
201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”). 
The Plan also is intended to comply with the requirements of Code
section 409A and any authoritative guidance issued under that section.  Participation in this Plan shall not be
construed to create an employment contract between any Participant and the
Employer.

 

Accordingly, the following Plan is adopted.

 

ARTICLE
1

DEFINITIONS

 

Whenever used in the Plan or the Agreement,
the following terms shall have the meanings as set forth in this Article unless
a different meaning is clearly required by the context.

 

1.1                                 ACCOUNT means the
balance credited to a Participant’s or Beneficiary’s Plan account, including
amounts credited to the Participant’s Compensation Deferral Account (if any)
and the Participant’s Employer Contribution Credit Account (if any) and deemed
income, gains and losses (as determined by the Employer, in its discretion)
credited to those Accounts (if any).  A
Participant’s or Beneficiary’s Account shall be determined as of the date of
reference.

 

1.2                                 AGREEMENT means the Adoption
Agreement for the Plan that was executed by the Employer.

 

1.3                                 BENEFICIARY means any
person or persons so designated in accordance with the provisions of Article 7.

 

1.4                                 BOARD means the
Employer’s Board of Directors, or a committee of the Employer’s Board of
Directors duly authorized to make determinations and act for the Board under
this Plan.

 

1

 

1.5                                 CHANGE IN
CONTROL means a change in the ownership or effective control of the Employer
within the meaning of Code section 409A and IRS guidance under Code section
409A.

 

1.6                                 CODE means the
Internal Revenue Code of 1986 and the Treasury regulations and other
authoritative guidance issued under the Code, as amended from time to time.

 

1.7                                 COMPENSATION means the cash
remuneration paid by the Employer to an Eligible Employee with respect to his
or her service for the Employer (as determined in accordance with the
Agreement).

 

1.8                                 COMPENSATION
DEFERRAL ACCOUNT is described in Section 3.1.

 

1.9                                 COMPENSATION
DEFERRALS is described in Section 3.1.

 

1.10                           DISABILITY means a period
of disability during which the Participant (i) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve months, (ii) is,
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering
employees of the Employer or (iii) is determined to be totally disabled by
the Social Security Administration.

 

1.11                           EFFECTIVE DATE means the
effective date of this Plan specified in the Agreement.

 

1.12                           ELECTION FORM means the
form or forms on which a Participant elects to defer Compensation under this
Plan and the Agreement and/or on which the Participant makes certain other
designations as required under this Plan and the Agreement.

 

1.13                           ELIGIBLE
EMPLOYEE means, for any Plan Year (or applicable portion
thereof), an employee of the Employer who is determined by the Employer to be a
member of a select group of management or highly compensated employees of the
Employer and who is designated to be an Eligible Employee under the Plan as set
forth in the Agreement.

 

Prior to the beginning of each Plan Year, the
Employer shall notify those individuals, if any, who will be Eligible Employees
for the next Plan Year. If the Employer determines that an individual first
becomes an Eligible Employee during a Plan Year, the Employer shall notify such
individual of its determination and the individual shall first become an
Eligible Employee as of the date of the notification.

 

1.14                           EMPLOYER means
(individually or collectively, as required by the context), the entity or
entities that execute the Agreement as the Employer (or affiliated employers),
or any successors that adopt the Plan.

 

1.15                           EMPLOYER
CONTRIBUTION CREDIT ACCOUNT is described in Section 3.2.

 

2

 

1.16                           EMPLOYER
CONTRIBUTION CREDITS is described in Section 3.2.

 

1.17                           ENTRY DATE with respect
to an individual means the first day of the pay period following the date on
which the individual becomes an Eligible Employee or the date(s) specified
as Entry Date(s) in the Adoption Agreement, if different.

 

1.18                           PARTICIPANT means any
person so designated in accordance with the provisions of Article 2,
including, where appropriate according to the context of the Plan, any former
employee who is or may become (or whose Beneficiaries may become) eligible to
receive a benefit under the Plan.

 

1.19                           PERFORMANCE-BASED
COMPENSATION means that portion (if any) of an Eligible Employee’s
Compensation which is contingent on the satisfaction of pre-established
organizational or individual performance criteria related to a performance
period of at least 12 consecutive months, and which meets the requirements for “performance-based
compensation” under Code section 409A, including the requirement that the
performance criteria be established in writing by not later than (i) 90
days after the commencement of the period of service to which the criteria
relates and (ii) the date the outcome ceases to be substantially
uncertain.

 

1.20                           PLAN means this
Second Amended & Restated KEMET Corporation Deferred Compensation
Plan, as amended from time to time. The Agreement and this plan document, in
each case as amended from time to time, shall constitute the terms of the Plan.

 

1.21                           PLAN YEAR means the
twelve (12) month period ending on the December 31 of each year during
which the Plan is in effect.  The Plan
may experience a short Plan Year from its Effective Date until the following December 31.

 

1.22                           SEPARATION FROM
SERVICE means a complete “separation from service” within the meaning of Code
section 409A.

 

1.23                           SPECIFIED
EMPLOYEE means, with respect to a corporation any stock of
which is publicly traded on an established securities market or otherwise, a
key employee, as defined in Code section 416(i) (without regard to
paragraph (5) of that section) to mean an employee of the Employer who, at
any time during the Plan Year, is (1) an officer of the Employer having an
annual compensation greater than one hundred thirty-five thousand dollars
($135,000) for 2005 (indexed for inflation in future years); (ii) a
five-percent (5%) owner of the Employer; or (iii) a one-percent (1%) owner
of the Employer having an annual compensation from the Employer of more than
one hundred fifty thousand dollars ($150,000).

 

1.24                           TRUST means (if a
Trust is elected in the Agreement and established) the Trust described in Article 11.

 

1.25                           TRUSTEE means (if a Trust
is elected in the Agreement and established) the trustee of the Trust described
in Article 11.

 

3

 

1.26                           VALUATION DATE means each day
of each Plan Year.

 

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

 

2.1                                 REQUIREMENTS.  Every Eligible Employee on the Effective Date
shall be eligible to become a Participant on the Effective Date.  Every other Eligible Employee shall be
eligible to become a Participant on his or her first Entry Date.  No individual shall become a Participant,
however, if he or she is not an Eligible Employee on the date his or her
participation is to begin.

 

Participation in the Compensation Deferral
portion of the Plan (if Compensation Deferrals are elected in the Agreement) is
voluntary.  In order to participate in
the Compensation Deferral portion of the Plan, an otherwise Eligible Employee
must make written application on an Election Form at such time and in such
manner as may be required by Section 3.1 and by the Employer and must
agree to make Compensation Deferrals as provided in Article 3.

 

Participation in the Employer Contribution
Credit Account portion of the Plan (if Employer Contribution Credits are
elected in the Agreement) is automatic and does not require a Participant’s
election to participate.

 

2.2                                 RE-EMPLOYMENT.  Subject to Code section 409A, a Participant
whose employment with the Employer is terminated shall become a Participant in
accordance with the provisions of Section 2.1.

 

2.3                                 CHANGE OF
EMPLOYMENT CATEGORY.  During any
period in which a Participant remains in the employ of the Employer, but ceases
to be an Eligible Employee, he or she shall not be eligible to make further
Compensation Deferral elections or receive Employer Contribution Credits.

 

ARTICLE 3

CONTRIBUTIONS AND CREDITS

 

3.1                                 PARTICIPANT COMPENSATION
DEFERRALS.  If
Compensation Deferrals are elected in the Agreement, subject to the remaining
paragraphs of this Section and in accordance with rules established
by the Employer and subject to such amount limitations as might be imposed by
the Employer in its discretion, a Participant may elect to defer Compensation
which is due to be earned and which would otherwise be paid to the Participant,
in any fixed periodic dollar amounts or percentages designated by the Participant.  Amounts so deferred will be considered a
Participant’s “Compensation Deferrals.” 
Except as provided below, a Participant shall make such election(s) under
this paragraph with respect to a coming twelve (12) month Plan Year during the
period beginning sixty days before the end of the Plan Year and ending on the
last day of the Plan Year, or during such other period as might be established
by the Employer, which period ends no later than the last day of the Plan Year
preceding the Plan Year in which the services giving rise to the Compensation
to be deferred are to be performed.

 

4

 

In the case of the first Plan Year in which an Eligible Employee
initially becomes eligible to become a Participant (or again becomes eligible
after having been ineligible for at least 24 months), if and to the extent
permitted by the Employer, the Eligible Employee may make an irrevocable
election, no later than 30 days after the date he or she becomes eligible to
become a Participant, to defer Compensation for services to be performed after
the election.  For this purpose, an
election will be deemed to apply to bonus Compensation for services performed
after the election if the election applies to no more than an amount equal to
the total bonus for the performance period multiplied by the ratio of the
number of days remaining in the performance period after the election over the
total number of days in the performance period.

 

If and to the extent permitted by the Employer, a Participant may make
an election to defer that portion (if any) of his or her Compensation which
qualifies as Performance-Based Compensation no later than (and the election
shall become irrevocable no later than) six months prior to the last day of the
period over which the services giving rise to the Performance-Based
Compensation are performed (provided that the Participant performs services
continuously from the later of the beginning of the performance period or the
date the performance criteria are established through the date of the deferral
election, and provided further that in no event may an election to defer be
made with respect to any portion of the Performance-Based Compensation that has
become reasonably ascertainable, as defined under Code section 409A, prior to
making the election).

 

Compensation Deferrals shall be
made through regular payroll deductions or deferrals of bonuses, if
applicable.  After the deadline for
making a deferral election for a Plan Year (as set forth above) has passed, the
Participant may not change or revoke his or her Compensation Deferral election
until the following Plan Year, except to the extent permitted by the Employer
and under Code section 409A upon a disability or a hardship distribution
pursuant to section 1.401(k)-1(d)(3) of the Treasury Regulations.  For purposes of this paragraph only, “disability”
means any medically determinable physical or mental impairment resulting in the
Participant’s inability to perform the duties of his or her position or any
substantially similar position, where such impairment can be expected to result
in death or can be expected to last for a continuous period of not less than
six months.

 

Once made, a Compensation Deferral regular payroll deduction election
shall continue in force only for the Plan Year to which the election relates,
unless cancelled as provided above.  A
Compensation Deferral bonus payment election shall continue in force only for
the bonus payment for which the election is specifically effective, unless
cancelled as provided above.

 

There shall be established and
maintained by the Employer a separate Compensation Deferral Account in the name
of each Participant, which shall become vested in the Participant as specified
below, and to which shall be credited or debited: (a) amounts equal to the
Participant’s Compensation Deferrals; and (b) any deemed earnings and
losses allocated to the Compensation Deferral Account.  Compensation Deferrals shall be deducted by
the Employer from the Compensation of the Participant and shall be credited to
his or her Compensation Deferral Account.

 

5

 

A Participant shall at all
times be 100% vested in amounts credited to his or her Compensation Deferral
Account.

 

If the Employer elects in the
Agreement to link this Plan to the Employer’s qualified retirement plan, a
Participant may elect to defer Compensation which is due to be earned by the
Participant in any fixed periodic dollar or percentage amount that does not
exceed the limit with respect to elective deferrals under Code section 402(g) in
effect for the taxable year in which such deferrals are made (not taking into
account any catch-up contributions permitted under Code section 414(v)).

 

3.2           EMPLOYER
CONTRIBUTION CREDITS.  If Employer
Contribution Credits are elected in the Agreement, there shall be established
and maintained a separate Employer Contribution Credit Account in the name of
each Participant.  Each such Employer
Contribution Credit Account shall be credited or debited, as applicable, with (i) amounts
equal to the Employer’s Contribution Credits, if any, credited to that Account;
and (ii) amounts equal to any deemed earnings and losses (to the extent
realized, based upon deemed fair market value of the Account’s deemed assets as
determined by the Employer, in its discretion) allocated to that Account.

 

The Employer Contribution
Credits credited to a Participant’s Employer Contribution Credit Account for
any particular Plan Year shall be an amount (if any) identified in the
Agreement.  The Employer shall credit
such contributions on behalf of such individuals, in such amounts and with such
frequency as the Board determines in its sole discretion.  A Participant shall become vested in amounts
credited to his or her Employer Contribution Credit Account according to the
vesting schedule established in the Agreement.

 

3.3           CONTRIBUTIONS TO THE
TRUST.  The Employer may make such
contributions, if any, to the Trust (if any) maintained under Section 11.1
as the Employer may determine in its sole discretion.

 

If elected in the Agreement, as
soon as administratively feasible following the end of each Plan Year (or as
otherwise required by the Code), the Employer or the Trustee, if any, shall
transfer, on behalf of each Participant, from the general assets of the
Employer or the Trust, if any, to the trust established for the Employer’s
qualified retirement plan, an amount equal to the lesser of (a) the
maximum amount of pre-tax deferrals that the Participant could have made to the
Employer’s qualified retirement plan for that previous Plan Year, within the
limits imposed under the terms of the Employer’s qualified retirement plan and
the Code (including Code sections 402(g), 401(k) and 401(m)), or (b) the
amount of Compensation Deferrals the Participant actually deferred under the
terms of this Plan for that Plan Year; provided however, the Employer or the
Trustee shall not transfer any amounts attributable to earnings, and the
Trustee shall not transfer an amount of Compensation Deferrals that exceeds the
limit with respect to elective deferrals under Code section 402(g) in
effect for the taxable year for which such transfer occurs.

 

6

 

ARTICLE 4

ALLOCATION
OF FUNDS

 

4.1           INVESTMENT AUTHORITY
OVER ACCOUNT.

 

(a)           Participant
Direction.  If elected in the
Agreement, each Participant shall have the right to direct the Employer as to
how amounts in his or her Compensation Deferral Account and/or Employer
Contribution Credit Account (as applicable) shall be deemed to be invested.

 

(b)           Employer Direction.
If elected in the Agreement, the Employer (or its designee) shall have the
right to direct how amounts in a Participant’s Compensation Deferral Account
and/or Employer Contribution Credit Account (as applicable) shall be deemed to
be invested.

 

(c)           Update on Accounts
to Reflect Investment Performance. 
On a daily basis, a Participant’s Account will be credited or debited to
reflect the Participant’s deemed pro rata portion of the value of each deemed
investment position maintained under the Plan.

 

4.2           ACCOUNTING FOR
DISTRIBUTIONS.  As of the date of any
distribution under this Plan, the distribution made to the Participant or his
or her Beneficiary or Beneficiaries shall be charged to such Participant’s
Account.  The amount of the distribution
shall be charged on a pro rata basis against the investments in which the
Participant’s Account is deemed to be invested (or shall be charged in any
other manner acceptable to the Employer and directed by the person or entity
with investment authority over the Account).

 

The fact that an allocation has
been made will not operate to vest in any Participant any right, title or
interest in any benefit under the Plan. 
Vesting shall occur only as provided in Article 3 and in the
Agreement.

 

4.3           SEPARATE ACCOUNTS.  A separate bookkeeping account under the Plan
shall be established and maintained by the Employer to reflect the Account for
each Participant with bookkeeping sub-accounts to show separately the
Participant’s Compensation Deferral Account (if applicable) and the Participant’s
Employer Contribution Credit Account (if applicable).  Each sub-account will separately account for
the credits and debits described in Article 3.

 

4.4           DEEMED INVESTMENT
DIRECTIONS.  Subject to such
limitations as may from time to time be required by law, imposed by the
Employer, the Trustee (if applicable) or contained elsewhere in the Plan, and
subject to such operating rules and procedures as may be imposed from time
to time by the Employer, the person or entity having control over the
investment of the Account (as determined in the Agreement) will have the right
to make the initial investment election by submission of a written form or an
electronic form via a web site.  Each
person or entity having control over the investment of an Account may give the
Employer a direction (in accordance with (a), below) as to how the applicable
Plan Account should be deemed to be invested among such categories of deemed
investments as may be made available by the Employer under this Plan, which may
be unlimited, at the Employer’s sole discretion.  Such direction shall designate the percentage
(in any whole percent multiples) of each portion of the Participant’s Plan
Accounts which is requested to 

 

7

 

be deemed to be invested in such categories
of deemed investments, and shall be subject to the following rules:

 

(a)           Any initial or
subsequent deemed investment direction shall be in writing, on a form supplied
by and filed with the Employer, and/or, as required or permitted by the
Employer, shall be by oral designation and/or electronic transmission
designation.  A designation shall be
effective as of the date following the date the direction is received and
accepted by the Employer on which it would be reasonably practicable for the
Employer to effect the designation. Generally, any initial or subsequent deemed
investment direction shall be effective no later than the second business day
after which the investment direction is received.

 

(b)           All amounts credited to
the Participant’s Account shall be deemed to be invested in accordance with the
then effective deemed investment direction, and as of the effective date of any
new deemed investment direction, all or a portion of the Participant’s Account
at that date shall be reallocated among the designated deemed investment funds
according to the percentages specified in the new deemed investment direction
unless and until a subsequent deemed investment direction shall be filed and
become effective.  An election concerning
deemed investment choices shall continue indefinitely as provided in the
Participant’s most recent investment direction form provided by and filed with
the Employer.

 

(c)           If the Employer
receives an initial or revised deemed investment direction which it deems to be
incomplete, unclear or improper, the Participant’s investment direction then in
effect shall remain in effect (or, in the case of a deficiency in an initial
deemed investment direction, the Participant shall be deemed to have filed no
deemed investment direction) until the Participant completes a new investment
direction.

 

(d)           If the Employer
possesses (or is deemed to possess as provided in (c), above) at any time
directions as to the deemed investment of less than all of a Participant’s
Account, the Participant shall be deemed to have directed that the undesignated
portion of the Account be deemed to be invested in a fund made available under
the Plan as determined by the Employer in its discretion.

 

(e)           Each Participant, as a
condition to his or her participation in this Plan, agrees to indemnify and
hold harmless the Employer and its agents and representatives from any losses
or damages of any kind relating to the deemed investment of the Participant’s
Account.

 

(f)            Each reference in this
Section to a Participant shall be deemed to include, where applicable, a
reference to a Beneficiary of a deceased Participant.

 

8

 

4.5           EXPENSES AND TAXES.  Expenses, including Trustee fees (if any),
associated with the administration or operation of the Plan shall be paid by
the Employer from its general assets unless the Employer elects to charge such
expenses against the appropriate Participant’s Account or Participants’
Accounts.  Any taxes allocable to an
Account (or portion thereof) maintained under the Plan which are payable prior
to the distribution of the Account (or portion thereof), as determined by the
Employer, shall be paid by the Employer unless the Employer elects to charge
such taxes against the appropriate Participant’s Account or Participants’
Accounts.

 

ARTICLE 5

ENTITLEMENT
TO BENEFITS

 

5.1           PAYMENT DATES.  This Section shall apply only as elected
by the Employer in the Agreement.

 

At the earlier of the time the
Participant makes his or her initial Compensation Deferral election or the time
the Participant first has a legally binding right to Employer Contribution
Credits, a Participant shall elect to receive payment of his or her vested
Account, which payment will be valued and paid according to the provisions of Article 6:
(i) in the calendar year following the Participant’s Separation from
Service with the Employer; (ii) on a fixed payment date or dates (the “Fixed
Payment Date(s)”); (iii) at the earlier of the preceding event or date(s);
or (iv) at the earlier of ninety (90) days after a Change in Control and
one or more of the preceding events or date(s).

 

Notwithstanding the foregoing,
if and when the Employer becomes a corporation whose stock is publicly traded
on an established securities market or otherwise, any Participant who is a
Specified Employee and who incurs a Separation from Service with the Employer
shall not be entitled to receive any portion of his or her vested Account under
this Section prior to the date which is at least six (6) months after
the date or his or her Separation from Service (or, if earlier, his or her
death).

 

Any Fixed Payment Date elected
by a Participant must be a date no earlier than the January 1 of the third
calendar year after the calendar year in which the earliest Compensation
Deferrals and/or Employer Contribution Credits subject to the Fixed Payment
Date are to be made by or on behalf of the Participant (or, if applicable, the January 1
of the third calendar year in which a new Compensation Deferral and/or Employer
Contribution Credit is made after the Participant has received a distribution
of his or her previously vested Account). 
By way of example, an Eligible Employee who enrolls as a Participant in
the Plan in November 2006 and who elects to defer Compensation to be
earned during 2007 may elect at that time as his or her initial Fixed Payment
Date any date which is no earlier than January 1, 2010, in which case the
Participant’s vested Plan Account as of December 31, 2009 (including his
or her 2007, 2008 and 2009 Compensation Deferrals and/or Employer Contribution
Credits, and any earnings on those amounts) shall be paid on January 1,
2010.

 

If permitted by the Employer in
the Agreement, any Fixed Payment Date may be delayed, to a later Fixed Payment
Date, so long as any election to delay the date is made by the Participant at
least twelve (12) months prior to the date on which the distribution is to be
made and 

 

9

 

such delay is at least five (5) full
calendar years in length.  Such Fixed
Payment Date may not be accelerated, except as provided in the remaining
Sections of this Article.  Any election
to change the Fixed Payment Date shall not take effect for twelve (12) months
after the date on which the election is made.

 

Notwithstanding the preceding,
to the extent permitted under Code section 409A and by the Employer, the
Participant may elect the timing of distributions during (i) 2007 (except
that a Participant cannot in 2007 change payment elections with respect to
payments that the Participant would otherwise receive in 2007, or in 2007 make
an election that causes post-2007 scheduled payments to be made in 2007) or (ii) 2008
(except that a Participant cannot in 2008 change payment elections with respect
to payments that the Participant would otherwise receive in 2008, or in 2008
make an election that causes post-2008 scheduled payments to be made in 2008),
and such election shall not be treated as a change in the form and timing of
payment or an acceleration of payment.

 

5.2           UNFORESEEABLE
EMERGENCY DISTRIBUTIONS.  If permitted
by the Employer in the Agreement, in the event the Participant incurs an
unforeseeable emergency, as defined below, the Participant may apply to the
Employer for the distribution of all or any part of his or her Account
attributable to Compensation Deferrals and/or fully vested Employer
Contribution Credits. The Employer shall consider the circumstances of each
such case, and the best interests of the Participant and his or her family, and
shall have the right, in its sole discretion, if applicable, to allow such
distribution, or, if applicable, to direct a distribution of part of the amount
requested, or to refuse to allow any distribution; provided, however, that such
distribution shall be permitted solely to the extent permitted under Code
section 409A. Upon a finding of unforeseeable emergency, the Employer shall
direct that the appropriate distribution is made to the Participant with
respect to the Participant’s vested Account in a lump sum payment.  In no event shall the aggregate amount of the
distribution exceed either the full value of the Participant’s vested Account
or the amount determined by the Employer to be necessary to satisfy the
unforeseeable emergency plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution, after taking into account the
extent to which the hardship is or may be relieved through reimbursement or
compensation by insurance or otherwise or by liquidation of the Participant’s
assets (to the extent the liquidation of assets would not itself cause severe
financial hardship), or by cessation of deferrals under the Plan.  For purposes of this Section, the value of
the Participant’s vested Account shall be determined as of the date of the
distribution.

 

For purposes of this Section, “unforeseeable
emergency” means (a) a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s
spouse, beneficiary or a dependent (as defined in Code section 152(a)) of the
Participant, (b) loss of the Participant’s property due to casualty, or (c) other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant, each as determined to exist by
the Employer.  A distribution may be made
under this Section only with the consent of the Employer.

 

5.3           DEATH, DISABILITY.  Upon the Participant’s death or Disability,
the Participant’s vested Account shall be valued and paid to the Participant or
the Participant’s designated Beneficiary(ies), as applicable, as provided in Article 6.

 

10

 

5.4           FORFEITURES.  The vested portion of a Participant’s Plan
Account shall be payable as provided in this Article.  The unvested portion of such Plan Account
shall be forfeited and allocated in the manner described below.  Forfeitures of Employer Contribution Credits
may be used first to pay any expenses payable by the Trust (if any) for the
Plan Year and then shall be used to reduce the Employer Contribution Credits,
if any, for the Plan Year (or shall be returned to the Employer if future
Employer Contributions equal to the amount of the forfeitures are not
anticipated).

 

ARTICLE 6

DISTRIBUTION
OF BENEFITS

 

6.1           AMOUNT.  A Participant (or his or her Beneficiary)
shall be entitled to receive a distribution (or commencement of distributions)
in an aggregate amount equal to the Participant’s vested Account.  If a Trust is elected under the Agreement,
any payment due under the terms of the Plan from the Trust which is not paid by
the Trust for any reason will be paid by the Employer from its general assets.

 

6.2           METHOD OF PAYMENT.

 

(a)           Cash Payments.
All payments under the Plan shall be made in cash.

 

(b)           Timing and Manner of
Payment.  Except as otherwise
provided in this Plan, on the date or dates determined in accordance with Article 5,
an aggregate amount equal to the Participant’s vested Account will be paid by
the Trust or the Employer, as provided in Section 6.1 (and as elected in
the Agreement), in (i) a lump sum, or (ii) in up to ten annual
installments (adjusted for gains and losses), as selected by the Participant at
the time he or she makes his or her initial Compensation Deferral election or
the time the Participant first has a legally binding right to Employer
Contribution Credits.  If a Participant
fails to designate properly the manner of payment of the Participant’s benefit
under the Plan, the Participant will be deemed to have elected a lump sum
payment.  If a Participant fails to
designate properly the timing of payment of the Participant’s benefit under the
Plan, the Participant will be deemed to have elected payment of his or her
vested Account ninety (90) days following Separation from Service (subject to
the six month delay rule described in Section 5.1).

 

Subject to Section 6.3 and
if elected by the Employer in the Agreement, the Participant may change his or
her above-described timing and manner of payment elections (or deemed
elections) by submitting a new Election Form to the Employer, provided
that any such Election Form is submitted at least twelve (12) months prior
to the date on which the distribution is to be made (or commence) and delays
the distribution (or commencement of distributions) date at least five (5) full
calendar years from the previously scheduled distribution date.  Any such election will not take effect for 12
months after it is made.

 

Notwithstanding the preceding,
to the extent permitted under Code section 409A and by the Employer, the
Participant may select the form of payment during (i) 2007 (except that a 

 

11

 

Participant cannot in 2007 change payment
elections with respect to payments that the Participant would otherwise receive
in 2007, or in 2007 make an election that causes post-2007 scheduled payments
to be made in 2007) or (ii) 2008 (except that a Participant cannot in 2008
change payment elections with respect to payments that the Participant would
otherwise receive in 2008, or in 2008 make an election that causes post-2008
scheduled payments to be made in 2008), and such election shall not be treated
as a change in the form and timing of payment or an acceleration of payment.

 

If the whole
or any part of a payment under this Plan is to be in installments, the total to
be so paid shall continue to be deemed to be invested pursuant to Article 4
under such procedures as the Employer may establish, in which case any deemed
income, gain, loss or expense or tax allocable thereto (as determined by the
Employer, in its discretion) shall be reflected in the installment payments,
using such method for the calculation of the installments as the Employer shall
reasonably determine.

 

6.3           ACCELERATIONS.  Notwithstanding anything in the Plan to the
contrary, no change submitted on a Participant’s election form shall be
accepted by the Employer if the change accelerates the date on which
distributions shall be made to the Participant (except as otherwise permitted
by Code section 409A) and the Employer shall deny any change made to an
election if the Employer determines that the change violates the requirement
under Code section 409A that the first payment with respect to which such
election is made be deferred for a period of not less than five years from the
date such payment would otherwise have been made.

 

Notwithstanding the preceding,
the Employer, in its discretion (without any direct or indirect election on the
part of any Participant), may accelerate a distribution under the Plan to the
extent permitted under Code section 409A (e.g., Treas. Reg. 1.409A-3(j)(4)),
including, but not limited to, making payments necessary to comply with a
domestic relations order, payments necessary to comply with certain conflict of
interest rules, and certain de minimis payments related to the participant’s
termination of his or her interest in the plan.

 

6.4           DEATH OR DISABILITY
BENEFITS.  If a Participant dies or
becomes Disabled before incurring a Separation from Service and before the
commencement of payments to the Participant under this Plan, the entire value
of the Participant’s vested Account shall be paid ninety (90) days following
the Participant’s death or Disability, as applicable, in a lump sum, to the
Participant or to the person or persons designated in accordance with Section 7.1,
as applicable.

 

Upon the death or Disability of
a Participant after payments under this Plan have begun but before he or she
has received all payments to which he or she is entitled under the Plan, the
remaining benefit payments shall be paid ninety (90) days following the Participant’s
death or Disability, as applicable, in a lump sum, to the Participant or the
person or persons designated in accordance with Section 7.1, as
applicable.

 

6.5           DELAYS.  If the Employer reasonably anticipates that
any payment scheduled to be made under this Plan would jeopardize the ability
of the Employer to continue as a going concern if paid as scheduled, then the
Employer may defer that payment, provided the Employer treats payments to all
similarly situated Participants on a reasonably consistent basis.  In addition, the 

 

12

 

Employer may, in its discretion, delay a payment upon such other events
and conditions as the IRS may prescribe, provided the Employer treats payments
to all similarly situated Participants on a reasonably consistent basis.  Any amounts deferred pursuant to this Section shall
continue to be credited or debited on the books of the Employer with additional
amounts in accordance with Article 4 above.  The amounts so deferred and amounts credited
or debited thereon shall be distributed to the Participant or his or her
Beneficiary (in the event of the Participant’s death) at the earliest possible
date on which the Employer reasonably anticipates that such violation or
material harm would be avoided or as otherwise prescribed by the IRS.

 

6.6           PAYMENT
OF BENEFITS.  Any payment made under
this Article 6 shall be made no later than the later of (i) the last
day of the calendar year in which the payment event occurs, or, if later, the
15th day of the third calendar month following the date of the payment event,
or (ii) the last day of such other, extended period as the IRS may
prescribe, such as in the case of disputed payments or refusals to pay,
provided the conditions of such extension have been satisfied.

 

ARTICLE 7

BENEFICIARIES;
PARTICIPANT DATA

 

7.1           DESIGNATION OF
BENEFICIARIES.  Each Participant from
time to time may designate any person or persons (who may be named contingently
or successively) to receive such benefits as may be payable under the Plan upon
or after the Participant’s death, and such designation may be changed from time
to time by the Participant by filing a new designation.  Each designation will revoke all prior
designations by the same Participant, shall be in a form prescribed by the
Employer, and will be effective only when filed in writing with the Employer
during the Participant’s lifetime.

 

In the absence of a valid
Beneficiary designation, or if, at the time any benefit payment is due to a
Beneficiary, there is no living Beneficiary validly named by the Participant,
the Employer shall pay any such benefit payment to the Participant’s spouse, if
then living, but otherwise to the Participant’s then living descendants, if
any, per stirpes, but, if none, to the Participant’s estate.  In determining the existence or identity of
anyone entitled to a death benefit payment, the Employer may rely conclusively
upon information supplied by the Participant’s personal representative,
executor or administrator.  If a question
arises as to the existence or identity of anyone entitled to receive a benefit
payment as aforesaid, or if a dispute arises with respect to any such payment,
then, notwithstanding the foregoing, the Employer, in its sole discretion, may
distribute or direct the Trustee (if any) to distribute such payment to the
Participant’s estate without liability for any tax or other consequences which
might flow therefrom, or may take such other action as the Employer deems to be
appropriate.

 

7.2           INFORMATION TO BE
FURNISHED BY PARTICIPANTS AND BENEFICIARIES; INABILITY TO LOCATE PARTICIPANTS
OR BENEFICIARIES.  Any communication,
statement or notice addressed to a Participant or to a Beneficiary at his or
her last post office address as shown on the Employer’s records shall be
binding on the Participant or Beneficiary for all purposes of the Plan.  Neither the Trustee nor the Employer shall be
obliged to

 

13

 

search for any Participant or Beneficiary beyond the
sending of a registered letter to the last known address.  If the Employer notifies any Participant or
Beneficiary that he or she is entitled to an amount under the Plan and the
Participant or Beneficiary fails to claim the amount or make his or her
location known to the Employer within ninety (90) days of the latest date upon
which the payment could have been timely made in accordance with the terms of
the Plan and Code section 409A (unless, if not paid, the Participant or
Beneficiary takes further enforcement measures within one hundred eighty (180)
days after such latest date) then, except as otherwise required by law, the
amount payable shall be deemed to be a forfeiture.  If a benefit payable to an unlocated
Participant or Beneficiary is subject to escheat pursuant to applicable State
law, neither the Trustee nor the Employer shall be liable to any person for any
payment made in accordance with that law.

 

ARTICLE 8

ADMINISTRATION

 

8.1                                 ADMINISTRATIVE
AUTHORITY.  Except as
otherwise specifically provided herein, the Employer shall be the Plan
administrator (the “Plan Administrator”) and shall have the sole responsibility
for and the sole control of the operation and administration of the Plan, and
shall have the power and authority to take all action and to make all decisions
and interpretations which may be necessary or appropriate in order to
administer and operate the Plan, including, without limiting the generality of
the foregoing, the power, duty and responsibility to:

 

(a)                                  Resolve and
determine all disputes or questions arising under the Plan, and to remedy any
ambiguities, inconsistencies or omissions in the Plan.

 

(b)                                 Adopt such rules of
procedure and regulations as in its opinion may be necessary for the proper and
efficient administration of the Plan and as are consistent with the Plan.

 

(c)                                  Implement the
Plan in accordance with its terms and the rules and regulations adopted as
above.

 

(d)                                 Make
determinations with respect to the eligibility of any Eligible Employee as a
Participant and make determinations concerning the crediting of Plan Accounts.

 

(e)                                  Appoint any
persons or firms, or otherwise act to secure specialized advice or assistance,
as it deems necessary or desirable in connection with the administration and
operation of the Plan, and the Employer shall be entitled to rely conclusively
upon, and shall be fully protected in any action or omission taken by it in
good faith reliance upon, the advice or opinion of such firms or persons.  The Employer shall have the power and
authority to delegate from time to time by written instrument all or any part
of its duties, powers or responsibilities under the Plan, both ministerial and
discretionary, as it deems appropriate, to any person or committee, and in the
same manner to revoke any such delegation of duties, powers or
responsibilities.  Any action of such
person or committee in the exercise of such delegated duties, powers or
responsibilities shall have the same force and effect for all purposes under
this Plan as if such action had been taken by the Employer.  Further, the Employer may authorize one or
more persons to execute any certificate or document on behalf of the Employer,
in which event any person notified by the Employer of such authorization shall
be entitled 

 

14

 

to accept and conclusively rely upon any such
certificate or document executed by such person as representing action by the
Employer until such notified person shall have been notified of the revocation
of such authority.

 

8.2                                 LITIGATION.  Except as may be otherwise required by law,
in any action or judicial proceeding affecting the Plan, no Participant or
Beneficiary shall be entitled to any notice or service of process, and any
final judgment entered in such action shall be binding on all persons
interested in, or claiming under, the Plan.

 

8.3                                 CLAIMS
PROCEDURE.  This Section 8.3
is based on final regulations issued by the Department of Labor and published
in the Federal Register on November 21, 2000 and codified at section
2560.503-1 of the Department of Labor Regulations.  If any provision of this Section 8.3
conflicts with the requirements of those regulations, the requirements of those
regulations will prevail.

 

(a)                                  Initial Claim.  A Participant or Beneficiary who believes he
or she is entitled to any Benefit (a “Claimant”) under this Plan may file a
claim with the Plan Administrator.  The
Plan Administrator will review the claim itself or appoint another individual
or entity to review the claim.

 

(i)                                     Benefit Claims
that do not Require a Determination of Disability.  If the claim is for a benefit other than a
disability benefit, the Claimant will be notified within ninety (90) days after
the claim is filed whether the claim is allowed or denied, unless the Claimant
receives written notice from the Plan Administrator or appointee of the Plan
Administrator before the end of the ninety (90) day period stating that special
circumstances require an extension of the time for decision, such extension not
to extend beyond the day which is one hundred eighty (180) days after the day
the claim is filed.

 

(ii)                                  Disability
Benefit Claims.  In the case
of a benefits claim that requires a determination by the Plan Administrator of
a Participant’s disability status, the Plan Administrator will notify the
Claimant of the Plan’s adverse benefit determination within a reasonable period
of time, but not later than forty-five (45) days after receipt of the
claim.  If, due to matters beyond the control
of the Plan, the Plan Administrator needs additional time to process a claim,
the Claimant will be notified, within forty-five (45) days after the Plan
Administrator receives the claim, of those circumstances and of when the Plan
Administrator expects to make its decision but not beyond seventy-five (75)
days.  If, prior to the end of the
extension period, due to matters beyond the control of the Plan, a decision
cannot be rendered within that extension period, the period for making the
determination may be extended for up to one hundred five (105) days, provided
that the Plan Administrator notifies the Claimant of the circumstances
requiring the extension and the date as of which the Plan expects to render a
decision.  The extension notice will
specifically explain the standards on which entitlement to a disability benefit
is based, the unresolved issues that prevent a decision on the claim and the
additional information needed from the Claimant to resolve those issues, and
the Claimant will be afforded at least forty-five (45) days within which to
provide the specified information.

 

15

 

(iii)                               Manner and
Content of Denial of Initial Claims.  If the Plan Administrator denies a claim, it
must provide to the Claimant, in writing or by electronic communication:

 

(A)                              The specific
reasons for the denial;

 

(B)                                A reference to
the Plan provision or insurance contract provision upon which the denial is
based;

 

(C)                                A description
of any additional information or material that the Claimant must provide in
order to perfect the claim;

 

(D)                               An explanation
of why such additional material or information is necessary;

 

(E)                                 Notice that the
Claimant has a right to request a review of the claim denial and information on
the steps to be taken if the Claimant wishes to request a review of the claim
denial; and

 

(F)                                 A statement of
the participant’s right to bring a civil action under ERISA section 502(a) following
a denial on review of the initial denial.

 

In addition, in the case of a denial of
disability benefits on the basis of the Plan Administrator’s independent
determination of the Participant’s disability status, the Plan Administrator
will provide a copy of any rule, guideline, protocol, or other similar
criterion relied upon in making the adverse determination (or a statement that
the same will be provided upon request by the Claimant and without charge).

 

(b)                                 Review
Procedures.

 

(i)                                     Benefit Claims
that do not Require a Determination of Disability.  Except for claims requiring an independent
determination of a Participant’s disability status, a request for review of a
denied claim must be made in writing to the Plan Administrator within sixty
(60) days after receiving notice of denial. 
The decision upon review will be made within sixty (60) days after the
Plan Administrator’s receipt of a request for review, unless special
circumstances require an extension of time for processing, in which case a
decision will be rendered not later than one hundred twenty (120) days after
receipt of a request for review.  A
notice of such an extension must be provided to the Claimant within the initial
sixty (60) day period and must explain the special circumstances and provide an
expected date of decision.

 

The reviewer will afford the Claimant an
opportunity to review and receive, without charge, all relevant documents,
information and records and to submit issues and comments in writing to the
Plan Administrator.  The reviewer will
take into account all comments, documents, records and other information
submitted by the Claimant relating to the claim regardless of whether the
information was submitted or considered in the initial benefit determination.

 

16

 

(ii)                                  Disability
Benefit Claims.  In addition
to having the right to review documents and submit comments as described in (i) above,
a Claimant whose claim for disability benefits requires an independent
determination by the Plan Administrator of the Participant’s disability status
has at least one hundred eighty (180) days following receipt of a notification
of an adverse benefit determination within which to request a review of the
initial determination.  In such cases,
the review will meet the following requirements:

 

(A)                              The Plan will
provide a review that does not afford deference to the initial adverse benefit
determination and that is conducted by an appropriate named fiduciary of the
Plan who did not make the initial determination that is the subject of the
appeal, nor is a subordinate of the individual who made the determination.

 

(B)                                The appropriate
named fiduciary of the Plan will consult with a health care professional who
has appropriate training and experience in the field of medicine involved in
the medical judgment before making a decision on review of any adverse initial
determination based in whole or in part on a medical judgment.  The professional engaged for purposes of a
consultation in the preceding sentence will not be an individual who was
consulted in connection with the initial determination that is the subject of
the appeal or the subordinate of any such individual.

 

(C)                                The Plan will
identify to the Claimant the medical or vocational experts whose advice was
obtained on behalf of the Plan in connection with the review, without regard to
whether the advice was relied upon in making the benefit review determination.

 

(D)                               The decision on
review will be made within forty-five (45) days after the Plan Administrator’s
receipt of a request for review, unless special circumstances require an
extension of time for processing, in which case a decision will be rendered not
later than ninety (90) days after receipt of a request for review.  A notice of such an extension must be
provided to the Claimant within the initial forty-five (45) day period and must
explain the special circumstances and provide an expected date of decision.

 

(iii)                               Manner and
Content of Notice of Decision on Review.  Upon completion of its review of an adverse
initial claim determination, the Plan Administrator will give the Claimant, in
writing or by electronic notification, a notice containing:

 

(A)                              its decision;

 

(B)                                the specific
reasons for the decision;

 

(C)                                the relevant
Plan provisions or insurance contract provisions on which its decision is
based;

 

17

 

(D)                               a statement
that the Claimant is entitled to receive, upon request and without charge,
reasonable access to, and copies of, all documents, records and other
information in the Plan’s files which is relevant to the Claimant’s claim for
benefits;

 

(E)                                 a statement
describing the Claimant’s right to bring an action for judicial review under
ERISA section 502(a); and

 

(F)                                 if an internal
rule, guideline, protocol or other similar criterion was relied upon in making
the adverse determination on review, a statement that a copy of the rule,
guideline, protocol or other similar criterion will be provided without charge
to the Claimant upon request.

 

(c)                                  Calculation of
Time Periods.  For
purposes of the time periods specified in this Section, the period of time
during which a benefit determination is required to be made begins at the time
a claim is filed in accordance with the Plan procedures without regard to
whether all the information necessary to make a decision accompanies the
claim.  If a period of time is extended
due to a Claimant’s failure to submit all information necessary, the period for
making the determination shall be tolled from the date the notification is sent
to the Claimant until the date the Claimant responds.

 

(d)                                 Failure of Plan
to Follow Procedures.  If the Plan
fails to follow the claims procedures required by this Section 8.3, a
Claimant shall be deemed to have exhausted the administrative remedies
available under the Plan and shall be entitled to pursue any available remedy
under ERISA section 502(a) on the basis that the Plan has failed to
provide a reasonable claims procedure that would yield a decision on the merits
of the claim.

 

(e)                                  Failure of
Claimant to Follow Procedures.  A Claimant’s compliance with the foregoing
provisions of this Section 8.3 is a mandatory prerequisite to the Claimant’s
right to commence any legal action with respect to any claim for benefits under
the Plan.

 

ARTICLE
9

AMENDMENT

 

9.1                                 RIGHT TO AMEND.  Subject to Code section 409A, the Employer,
by action of its Board, shall have the right to amend the Plan, at any time and
with respect to any provisions hereof, and all parties hereto or claiming any
interest under this Plan shall be bound by such amendment; provided, however,
that no such amendment shall deprive a Participant or a Beneficiary of a
benefit amount accrued prior to the date of the amendment.

 

9.2                                 AMENDMENTS TO
ENSURE PROPER CHARACTERIZATION OF PLAN.  Notwithstanding the provisions of Section 9.1,
the Plan may be amended by the Employer at any time, retroactively if required,
in the opinion of the Employer, in order to ensure that the Plan is
characterized as “top-hat” plan as described under ERISA sections 201(2),
301(a)(3), and 401(a)(1), to ensure that the Trust that may be established is
characterized as a grantor trust as described in Code sections 671 through 679,
to conform the Plan to the provisions of Code section 409A and to 

 

18

 

conform the Plan and Trust (if any) to the
provisions and requirements of any applicable law (including ERISA and the
Code).  No such amendment shall be
considered prejudicial to any interest of a Participant or a Beneficiary in the
Plan.

 

ARTICLE
10

SUSPENSION OR TERMINATION OF THE PLAN

 

10.1                           EMPLOYER’S
RIGHT TO SUSPEND PLAN.  The
Employer reserves the right to suspend the operation of the Plan for a fixed or
indeterminate period of time, by action of the Board.  In the event of a suspension of the Plan,
during the period of the suspension, the Employer shall continue all aspects of
the Plan other than allowing further Compensation Deferral elections. Payments
of distributions will continue to be made during the period of the suspension
in accordance with Articles 5 and 6.

 

10.2                           AUTOMATIC
TERMINATION OF PLAN.  The Plan,
but not the Trust, automatically shall terminate upon the dissolution of the
Employer, or upon a merger into or consolidation with any other corporation or
business organization if there is a failure by the surviving corporation or
business organization to adopt specifically and agree to continue the
Plan.  If the merger or consolidation
qualifies as a change in the ownership or effective control of a corporation,
or a change in the ownership of a substantial portion of the assets of a
corporation as defined in Treas. Reg. 1.409A-3(i)(5), the Plan shall be
liquidated upon such a termination in accordance with Treas. Reg.
1.409A-3(j)(4)(ix)(B).  If the Plan is
not liquidated, payments of distributions will continue to be made following
the termination in accordance with Articles 5 and 6.

 

10.3                           TERMINATION AND
LIQUIDATION OF THE PLAN.  The
Employer may terminate and liquidate the Plan in connection with a corporate
dissolution or approval by a bankruptcy court, certain change in control
events, or the termination and liquidation of all plans  that are required to be aggregated, as
described under Treas. Reg. 1.409A-3(j)(4)(ix). 
Upon the date of termination, the value of the vested Accounts of all
affected Participants and Beneficiaries shall be determined.  After deduction of estimated expenses in
liquidating and paying Plan benefits, vested Accounts shall be paid to
Participants and Beneficiaries in a lump sum distribution in accordance with
Treas. Reg. 1.409A-3(j)(4)(ix).

 

ARTICLE 11

THE TRUST

 

11.1                           ESTABLISHMENT
OF TRUST.  If elected
in the Agreement, the Employer shall establish the Trust with the Trustee
pursuant to such terms and conditions as are set forth in the Trust agreement
to be entered into between the Employer and the Trustee or the Employer shall
cause to be maintained one or more separate subaccounts in an existing Trust
maintained with the Trustee with respect to one or more other plans of the
Employer, which subaccount or subaccounts represent Participants’ interests in
the Plan.  Any such Trust shall be
intended to be treated as a “grantor trust” under the Code and the
establishment of the Trust or the utilization of any existing Trust for Plan
benefits, as applicable, shall not be intended to cause any Participant to
realize current income on amounts contributed thereto, and the Trust shall be
so interpreted.

 

19

 

ARTICLE
12

MISCELLANEOUS

 

12.1                           LIABILITY OF EMPLOYER;
LIMITATIONS ON LIABILITY OF EMPLOYER.  Notwithstanding anything herein that may
suggest otherwise, the Employer shall be solely liable for the payment of any
benefits due under this Plan.  However,
neither the establishment of the Plan nor any modification thereof, nor the
creation of any Account under the Plan, nor the payment of any benefits under
the Plan shall be construed as giving to any Participant or other person any
legal or equitable right against the Employer or any officer or employer
thereof except as provided by law or by any Plan provision.  The Employer shall not in any way guarantee
any Participant’s Account from loss or depreciation, whether caused by poor
investment performance of a deemed investment or the inability to realize upon
an investment due to an insolvency affecting an investment vehicle or any other
reason.  In no event shall the Employer
or any successor, employee, officer, director or stockholder of the Employer,
be liable to any person on account of any claim arising by reason of the
provisions of the Plan or of any instrument or instruments implementing its
provisions, or for the failure of any Participant, Beneficiary or other person
to be entitled to any particular tax consequences with respect to the Plan, or
any credit or distribution under the Plan.

 

12.2                           CONSTRUCTION.  If any provision of the Plan is held to be
illegal or void, such illegality or invalidity shall not affect the remaining
provisions of the Plan, but shall be fully severable, and the Plan shall be
construed and enforced as if said illegal or invalid provision had never been
inserted herein; except to the extent that Code Section 409A requires that
this Section be disregarded because it purports to nullify Plan terms that
are not in compliance with Code section 409A. 
For all purposes of the Plan, where the context admits, the singular
shall include the plural, and the plural shall include the singular.  Headings of Articles and Sections herein are
inserted only for convenience of reference and are not to be considered in the
construction of the Plan.  The laws of
the state of the Employer’s principal place of business shall govern, control
and determine all questions of law arising with respect to the Plan and the
interpretation and validity of its respective provisions, except where those
laws are preempted by the laws of the United States.  Participation under the Plan will not give
any Participant the right to be retained in the service of the Employer, or any
right or claim to any benefit under the Plan unless such right or claim has
specifically accrued under the Plan.

 

The Plan is intended to be and at all times
shall be interpreted and administered so as to qualify as an unfunded deferred
compensation plan, and no provision of the Plan shall be interpreted so as to
give any individual any right in any assets of the Employer which is greater
than the rights of a general unsecured creditor of the Employer.

 

12.3                           SPENDTHRIFT PROVISION.  No amount payable to a Participant or a
Beneficiary under the Plan will, except as otherwise specifically provided by
law, be subject in any manner to anticipation, alienation, attachment,
garnishment, sale, transfer, assignment (either at law or in equity), levy,
execution, pledge, encumbrance, charge or any other legal or equitable process,
and any attempt to do so will be void; nor will any benefit be in any manner
liable for or subject to the debts, contracts, liabilities, engagements or
torts of the person entitled thereto. Further, subject to Code section 409A, (i) the
withholding of taxes from Plan benefit payments, (ii) the recovery under 

 

20

 

the Plan of overpayments of benefits previously made to a Participant
or Beneficiary, (iii) if applicable, the transfer of benefit rights from
the Plan to another plan, or (iv) the direct deposit of benefit payments
to an account in a banking institution (if not actually part of an arrangement
constituting an assignment or alienation) shall not be construed as an
assignment or alienation.

 

12.4                           DISTRIBUTION
TIMING.  This Section shall take
precedence over any other provision of the Plan or this Article 12 to the
contrary.  If the timing of any
distribution would result in any tax or other penalty (other than ordinarily
payable Federal, state or local income or payroll taxes), which tax or penalty
can be avoided by payment of the distribution at a later time, then the
distribution shall be made on (or as soon as practicable after) the first date
on which such distribution can be made without such tax or penalty; except to
the extent that Code section 409A requires that this Section 12.4 be
disregarded because it purports to nullify Plan terms that are not in
compliance with Code section 409A.

 

12.5                           AGGREGATION OF
EMPLOYERS.  If the
Employer is a member of a controlled group of corporations or a group of trades
or business under common control (as described in Code Section 414(b) or
(c), but substituting a 50% ownership level for the 80% level set forth in
those Code Sections), all members of the group shall be treated as a single Employer
for purposes of whether there has occurred a Separation from Service and for
any other purposes under the Plan as Code section 409A shall require.  For purposes of Article 10, in the case
of a change in control event, the entities to be treated as a single Employer
shall be determined immediately following the change in control event.

 

12.6                           AGGREGATION OF
PLANS.  If the Employer offers other
account balance deferred compensation plans in addition to the Plan, those
plans together with the Plan shall be treated as a single plan to the extent
required under Code section 409A for purposes of determining whether an
Eligible Employee may make a deferral election pursuant to Section 3.1
within thirty (30) days of becoming eligible to participate in the Plan, for
purposes of cashing out de minimus amounts pursuant to Section 6.3 and for
any other purposes under the Plan as Code section 409A shall require.

 

12.7                           USERRA.  Notwithstanding anything herein to the
contrary, any distribution election provided to a Participant as necessary to
satisfy the requirements of the Uniformed Services Employment and Reemployment
Rights Act of 1994, as amended, shall be permissible hereunder.

 

12.8                           TAX WITHHOLDING.  All distributions under the Plan are subject
to any applicable tax withholding, as determined by the Employer in its
discretion.  The Employer shall have the
right to deduct from a Participant’s Compensation that is not being deferred
under this Plan any federal, state, local or employment taxes which it deems
are required by law to be withheld with respect to any Compensation Deferrals,
vested Employer Contribution Credits or Plan distributions.  If necessary, prior to the date a Participant’s
Compensation Deferral election becomes irrevocable pursuant to Section 3.1,
the Employer may reduce the Participant’s Compensation Deferrals in order to
comply with this Section.

 

21

 

[Signature Page; Second
Amended & Restated KEMET Corporation Deferred Compensation Plan]

 

	
  KEMET CORPORATION

  	
  KEMET ELECTRONICS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ LARRY MCADAMS

  	
   

  	
  By:

  	
  /s/ LARRY MCADAMS

  
	
   

  	
  Larry McAdams

  	
   

  	
  Larry McAdams

  
	
   

  	
  Vice President, Human
  Resources

  	
   

  	
  Vice President, Human
  Resources

  
					

 

22Exhibit 10.13c

 

WAIVER AND CONSENT AGREEMENT

 

This
WAIVER AND CONSENT AGREEMENT (this “Waiver”), dated as of March 31,
2009, is entered into by and among (i) ASPEN
TECHNOLOGY, INC., a Delaware corporation with offices at 200 Wheeler
Road, Burlington, Massachusetts 01803 (“Aspen”), (ii) GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation
with an address at 500 West Monroe Street, Chicago, IL 60661 (“GE Capital”),
and (iii) each of the undersigned affiliates of GE Capital that are party
to the Agreement (as defined below) pursuant to Riders thereto (each an “Affiliate”
and collectively the “Affiliates”).

 

WHEREAS,  Aspen and GE Capital entered into
that certain Direct Vendor Program Agreement dated as of November 18, 1999
(as amended, supplemented, modified or revised from time to time, the “Agreement”),
pursuant to which, upon certain terms and conditions, GE Capital has agreed to
provide a customer financing capability to support the licensing of certain
software products manufactured or distributed by Aspen;

 

WHEREAS, on February 10, 2009, Aspen filed a Form 12b-25
with the Securities and Exchange Commission (the “12b-25”) describing
certain events (the “Events”) that delayed the filing, until April 11,
2008, of both Aspen’s Form 10-K for the fiscal year ended June 30,
2007 and Aspen’s quarterly report on Form 10-Q for the quarterly period
ended September 30, 2007. In addition, after the Events occurred, the
audit committee of the board of directors and Aspen’s management determined to
engage in a detailed review of other accounts in Aspen’s financial statements.
Such detailed review has delayed Aspen’s completion of financial statements for
the quarters ended December 31, 2007, March 31, 2008, September 30,
2008 and December 31, 2008, as well as Aspen’s financial statements for
the fiscal year ended June 30, 2008. As per the 12b-25, the completion of
Aspen’s reports has also been delayed as a result of its transition to a new
independent registered public accounting firm, effective as of the fiscal year
ended June 30, 2008. The new independent registered public accounting firm
was appointed by Aspen’s audit committee on March 12, 2008, as described
in a current report on Form 8-K that Aspen filed with the SEC on March 13,
2008;

 

WHEREAS, the Events have caused Aspen to delay in the
preparation, filing and delivery of subsequent financial statements, including
financial statements for the fiscal quarter ending December 31, 2008, and
will likely result in a delay in the preparation, filing and delivery of financial
statements for the fiscal quarter ended March 31, 2009. (The financial
statements for the fiscal year ended June 30th, 2008, as well as for the fiscal quarters ended September 30,
2008, December 31, 2008 and March 31, 2009 shall collectively be referred
to as the “Delayed Financial Statements”);

 

WHEREAS, Aspen has requested that GE Capital and each of
the Affiliates temporarily waive any Defaults or Events of Cancellation that
have arisen or would arise solely and directly out of the late filing and
delivery of the Delayed Financial Statements; and

 

1

 

WHEREAS, GE Capital and
each of the Affiliates have agreed, on the terms and subject to the
conditions set forth herein.

 

NOW, THEREFORE, the parties hereto hereby
agree as follows:

 

1.                                       Defined Terms.  Capitalized terms which are used herein
without definition and which are defined in the Agreement shall have the same
meanings herein as in the Agreement.

 

2.                                       Waiver and
Consent.  With respect to the Agreement
only and not with respect to individual transactions there under, GE Capital
and each of the Affiliates hereby temporarily waive, until July 31, 2009,
any Default or Event of Cancellation that has arisen or would arise solely and
directly out of the late filing and delivery of the Delayed Financial Statements, including,
but not limited to, those under Section 8(r) of the Agreement. Any
further extension of such temporary waiver shall be in writing, signed by the
parties.

 

3.                                       Fees.  Aspen shall reimburse GE Capital for all
legal fees and expenses incurred in connection with this Waiver.

 

4.                                       Representations
and Warranties.  Aspen
hereby represents and warrants to GE Capital and the Affiliates as follows:

 

a.                                       The execution
and delivery of this Waiver by Aspen and the performance by Aspen of its
obligations and agreements under this Waiver and the Agreement are within the
corporate authority of Aspen and will not contravene any provision of law,
statute, rule or regulation to which Aspen is subject.

 

b.                                      No approval or
consent of, or filing with, any governmental agency or authority is required to
make valid and legally binding the execution, delivery or performance by Aspen
of this Waiver or the Agreement.

 

5.                                       Miscellaneous
Provisions.

 

a.                                       Except as
otherwise expressly provided by this Waiver, all of the terms, conditions and
provisions of the Agreement shall remain the same.  It is declared and agreed by each of the
parties hereto that the Agreement shall continue in full force and effect, and
that this Waiver and the Agreement shall be read and construed as one
instrument.

 

b.                                      This Waiver is
intended to take effect as an agreement under seal and shall be construed
according to and governed by the laws of the Commonwealth of Massachusetts.

 

2

 

c.                                       This Waiver may
be executed in any number of counterparts, but all such counterparts shall
together constitute but one instrument. 
In making proof of this Waiver it shall not be necessary to produce or
account for more than one counterpart signed by each party hereto by and
against which enforcement hereof is sought.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Waiver as of the date first written above.

 

	
   

  	
   

  	
  ASPEN
  TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Roger Kuebel

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Roger
  Kuebel

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED
  AND AGREED:

  	
   

  	
   

  
	
  GENERAL
  ELECTRIC CAPITAL CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Steven C. Dorman

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Steven
  C. Dorman

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior
  Risk Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GE
  VFS CANADA LIMITED PARTNERSHIP

  	
   

  	
   

  
	
  By:
  GENERAL ELECTRIC CAPITAL CANADA INC.

  	
   

  	
   

  
	
  Its General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Patrick Pearson

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Patrick
  Pearson

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  	
   

  	
   

  
	
  Party
  to Rider No. 1 (Canada)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GE
  CAPITAL LEASING CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
  Party
  to Rider No. 3 (Japan)

  	
   

  	
   

  

 

3

 

	
  GE
  EUROPEAN EQUIPMENT FINANCE (RECEIVABLES) LIMITED

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Alicia Essex

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Alicia
  Essex

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Company
  Secretary

  	
   

  	
   

  
	
  Party
  to Rider No. 10 (Europe)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GE
  COMMERCIAL FINANCE RECEIVABLES LIMITED

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Alicia Essex

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Alicia
  Essex

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Company
  Secretary

  	
   

  	
   

  
	
  Party
  to Rider No. 14 (Europe)

  	
   

  	
   

  

 

4

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