Document:

ATU 10-K 08.31.2013 EX4.5 (b)

Exhibit 4.5(b)

EXECUTION VERSION

AMENDMENT NO. 1 
TO 
FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDMENT NO. 1 TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (the “Amendment”) is made as of August 27, 2013 by and among Actuant Corporation, a Wisconsin corporation (the “Company”), Actuant Limited, a company organized under the laws of England (“Actuant Ltd.”), Actuant Finance Limited, a company organized under the laws of England (“Actuant Finance” and, collectively with the Company and Actuant Ltd., the “Borrowers”), the financial institutions listed on the signature pages hereto and JPMorgan Chase Bank, N.A., as the administrative agent for the “Lenders” referred to below (in such capacity, the “Agent”).  Capitalized terms used but not otherwise defined herein shall have the respective meanings given to them in the “Credit Agreement” referred to below.
W I T N E S S E T H:
WHEREAS, the signatories hereto are parties to that certain Fourth Amended and Restated Credit Agreement, dated as of July 18, 2013, among the Borrowers, the financial institutions from time to time parties thereto (the “Lenders”) and the Agent (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”); and
WHEREAS, the parties hereto have agreed to amend the Credit Agreement on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto have agreed to the following amendment to the Credit Agreement.
1.  Amendment.  Effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement is hereby amended by deleting the word “[Reserved]” in clause (vii) of Section 6.14 of the Credit Agreement and replacing it with the following:
(vii)    The intercompany loans in an aggregate principal amount not to exceed $245,000,000 (or the Dollar equivalent thereof) made by Actuant UK Holdings, LLC, a Wholly-Owned Subsidiary of the Company to (i) Actuant Acquisitions Limited, the proceeds of which shall be used to pay cash consideration for the acquisition by Actuant Acquisitions Limited of Venice Topco Limited and its Subsidiaries (commonly known as Viking SeaTech) and (ii) immediately following the consummation of such acquisition, to Venice Topco Limited, which shall then be a Wholly-Owned Subsidiary of the Company, the proceeds of which shall be used to repay any assumed Indebtedness of Venice Topco Limited and its Subsidiaries, provided that (1) the aforementioned acquisition constitutes a Permitted Acquisition and (2) Actuant UK Holdings, LLC delivers to the Agent any promissory notes received by it to evidence such loans to the extent required by and in accordance with the terms of the Security Agreement.
2.    Conditions of Effectiveness.  This Amendment shall become effective as of the date hereof if, and only if, the Agent shall have received:
(a)    executed copies of this Amendment from the Borrowers, the Agent and the Required Lenders;

        
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(b)    executed copies of the Reaffirmation attached hereto in the form of Exhibit A from each existing Guarantor and Foreign Law Pledgor;
(c)    confirmation that all fees and expenses of counsel to the Agent required to be paid in connection with the Loan Documents (including this Amendment) pursuant to Section 9.6 of the Credit Agreement have been paid, in each case to the extent that invoices for the same have been submitted at least one Business Day prior to the date hereof; 
(d)    a certificate of the Company demonstrating in reasonable detail pro forma compliance with the financial covenants contained in Section 6.19 of the Credit Agreement, all as more fully described in clauses (e) and (f) of the definition of “Permitted Acquisition”;
(e)    each of the documents and other deliveries required pursuant to Section 6.21 of the Credit Agreement to cause Actuant UK Holdings, LLC to become a Domestic Subsidiary Guarantor; and
(f)    such other instruments and documents as the Agent shall have reasonably requested in connection with this Amendment.
3.    Representations and Warranties of the Borrowers.  Each Borrower hereby represents and warrants as follows:
(a)    Such Borrower has the power and authority and legal right to execute and deliver this Amendment and to perform its obligations hereunder and under the Credit Agreement (as modified hereby).  The execution and delivery by such Borrower of this Amendment and the performance of its obligations hereunder and under the Credit Agreement (as modified hereby) have been duly authorized by proper corporate proceedings, and this Amendment and the Credit Agreement (as modified hereby) constitute legal, valid and binding obligations of such Borrower enforceable against such Borrower in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.
(b)    Neither the execution and delivery by such Borrower of this Amendment, nor the consummation of the transactions contemplated herein or in the Credit Agreement (as modified hereby), nor compliance with the provisions hereof or thereof will violate (i) any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on such Borrower, (ii) the articles or incorporation or by-laws or other organizational documents of such Borrower or (iii) the provisions of any indenture, instrument or agreement to which such Borrower is a party or is subject, or by which it, or its Property, is bound, or conflict with or constitute a default thereunder, or result in, or require, the creation or imposition of any Lien in, of or on the Property of such Borrower pursuant to the terms of any such indenture, instrument or agreement.  
(c)    No order, consent, adjudication, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, or other action in respect of any governmental or public body or authority, or any subdivision thereof, which has not been obtained by such Borrower, is required to be obtained by such Borrower in connection with the execution and delivery of this Amendment or the legality, validity, binding effect or enforceability of the Credit Agreement (as modified hereby).  

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(d)    As of the date hereof and giving effect to the terms of this Amendment, (i) there exists no Default or Unmatured Default and (ii) the representations and warranties contained in Article V of the Credit Agreement (as modified hereby) are true and correct except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall have been true and correct on and as of such earlier date.
4.    Reference to and Effect on the Credit Agreement and Loan Documents.
(a)    Upon the effectiveness of Section 1 hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as modified hereby.  This Amendment is a Loan Document pursuant to the Credit Agreement and shall (unless expressly indicated otherwise herein or therein) be construed, administered, and applied, in accordance with all of the terms and provisions of the Credit Agreement.
(b)    Each Borrower (i) agrees that this Amendment and the transactions contemplated hereby shall not limit or diminish the obligations of such Borrower arising under or pursuant to the Credit Agreement and the other Loan Documents to which it is a party, (ii) reaffirms its obligations under the Credit Agreement and each and every other Loan Document to which it is a party (including, without limitation, each applicable Collateral Document), (iii) reaffirms all Liens on any collateral (including the Collateral) which have been granted by it in favor of the Agent pursuant to any of the Loan Documents, and (iv) acknowledges and agrees that except as specifically modified above, the Credit Agreement and all other Loan Documents executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.  
(c)    The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Agent or the Lenders, nor constitute a waiver of or consent to any provision of the Credit Agreement or any other Loan Documents executed and/or delivered in connection therewith.
5.    Governing Law.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION, 735 ILCS SECTION 105/5-1 ET SEQ., BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.
6.    Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
7.    Counterparts.  This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts (including by means of facsimile or electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.
	
		
	 
	 

	 
	ACTUANT CORPORATION,

	 
	as a Borrower

	 
	 

	 
	 

	 
	By:     /s/ Terry M. Braatz

	 
	Name:   Terry M. Braatz

	 
	Title:   Treasurer

	 
	 

	 
	 

	 
	ACTUANT LIMITED,

	 
	as a Borrower

	 
	 

	 
	 

	 
	By:   /s/ Jan de Koning

	 
	Name:   Jan de Koning

	 
	Title:   Director

	 
	 

	 
	 

	 
	ACTUANT FINANCE LIMITED,

	 
	as a Borrower

	 
	 

	 
	 

	 
	By:   /s/ Jan de Koning

	 
	Name:   Jan de Koning

	 
	Title:   Director
 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	
		
	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	JPMORGAN CHASE BANK, N.A.,

	 
	as a Lender and as Agent

	 
	 

	 
	 

	 
	By:   /s/ Richard Barritt

	 
	Name:   Richard Barritt

	 
	Title:   Associate

	 
	 

	
		
	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	BANK OF AMERICA, N.A.,
	 
	 

	as a Lender
	 
	 

	 
	 
	 

	 
	 
	 

	By:   /s/ Marc Sanchez
	 

	Name:   Marc Sanchez
	 
	 

	Title:   Vice President
	 
	 

	 
	 
	 

	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	WELLS FARGO BANK, N.A.,
	 
	 

	as a Lender
	 
	 

	 
	 
	 

	 
	 
	 

	By:   /s/ Thomas P. Trail
	 

	Name:   Thomas P. Trail
	 
	 

	Title:   Director
	 
	 

	 
	 

	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	U.S. BANK NATIONAL ASSOCIATION,
	 
	 

	as a Lender
	 
	 

	 
	 
	 

	 
	 
	 

	By:   /s/ Caroline V. Krider
	 

	Name:   Caroline V. Krider
	 
	 

	Title:   Senior Vice President
	 
	 

	 
	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	KEYBANK NATIONAL ASSOCIATION,
	 

	as a Lender
	 

	 
	 

	 
	 

	By:   /s/ Brian P. Fox

	Name:   Brian P. Fox
	 

	Title:   Vice President
	 

	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	BMO HARRIS BANK, N.A.,

	as a Lender

	 

	 

	By:   /s/ Ronald J. Carey

	Name:   Ronald J. Carey

	Title:   Senior Vice President

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	SUNTRUST BANK,
	 

	as a Lender
	 

	 
	 

	 
	 

	By:   /s/ Johnetta Bush

	Name:   Johnetta Bush
	 

	Title:   Vice President
	 

	 
	 

	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	RBS CITIZENS, N.A.,
	 

	as a Lender
	 

	 
	 

	 
	 

	By:   /s/ Jeffrey P. Huening

	Name:   Jeffrey P. Huening
	 

	Title:   Vice President
	 

	 
	 

	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	PNC BANK, NATIONAL ASSOCIATION,
	 

	as a Lender
	 

	 
	 

	 
	 

	By:   /s/ Henry Hissrich

	Name:   Henry Hissrich
	 

	Title:   Vice President
	 

	 
	 

	 
	 

	
			
	 
	 

	 
	 

	 
	 

	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	ROYAL BANK OF CANADA,
	 

	as a Lender
	 

	 
	 

	 
	 

	By:   /s/ Ian C. Blaker

	Name:   Ian C. Blaker
	 

	Title:   Authorized Signatory
	 

	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	BRANCH BANKING AND TRUST COMPANY,
	 

	as a Lender
	 

	 
	 

	 
	 

	By:   /s/ Kurt W. Anstaett

	Name:   Kurt W. Anstaett
	 

	Title:   Senior Vice President
	 

	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	THE NORTHERN TRUST COMPANY,
	 
	 

	as a Lender
	 
	 

	 
	 
	 

	 
	 
	 

	By:   /s/ Patrick Cowan
	 

	Name:   Patrick Cowan
	 
	 

	Title:   Senior Vice President
	 
	 

	 
	 
	 

	 
	 

Signature Page to Amendment No. 1 to
Fourth Amended and Restated Credit Agreement
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	ASSOCIATED BANK, N.A.,
	 

	as a Lender
	 

	 
	 

	 
	 

	By:   /s/ Daniel R. Holzhauer

	Name:   Daniel R. Holzhauer
	 

	Title:   Senior Vice President
	 

	 
	 

	 
	 

	 
	 

Signature Page to Amendment No. 1 to 
Fourth Amended and Restated Credit Agreement
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EXHIBIT A

Reaffirmation

Each of the undersigned hereby acknowledges receipt of a copy of Amendment No. 1 dated as of August 27, 2013 (the “Amendment”) to the Fourth Amended and Restated Credit Agreement, dated as of July 18, 2013, by and among Actuant Corporation, a Wisconsin corporation (the “Company”), Actuant Limited, a company organized under the laws of England (“Actuant Ltd.”), Actuant Finance Limited, a company organized under the laws of England (“Actuant Finance” and, collectively with the Company and Actuant Ltd., the “Borrowers”), the financial institutions from time to time parties thereto (the “Lenders”) and JPMorgan Chase Bank, National Association, as the administrative agent for the Lenders (the “Agent”) (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).  Capitalized terms used in this Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement.
Each of the undersigned, by its signature below, hereby (a) acknowledges and consents to the execution and delivery of the Amendment by the parties thereto, (b) agrees that the Amendment and the transactions contemplated thereby shall not limit or diminish the obligations of such Person arising under or pursuant to the Collateral Documents and the other Loan Documents to which it is a party (including, in the case of each Guarantor, without limitation, the Domestic Subsidiary Guaranty and the Security Agreement and, in the case of each Foreign Law Pledgor, without limitation, each applicable Foreign Law Pledge Agreement), (c) reaffirms all of its obligations under the Loan Documents to which it is a party, (d) reaffirms all Liens on any collateral (including the Collateral) which have been granted by it in favor of the Agent pursuant to any of the Loan Documents, and (e) acknowledges and agrees that each Loan Document executed by it remains in full force and effect and is hereby reaffirmed, ratified and confirmed.  All references to the Credit Agreement contained in any Loan Document shall be a reference to the Credit Agreement as so modified by the Amendment and as the same has previously been, or may from time to time hereafter be, amended, restated, supplemented or otherwise modified.  The Amendment is a Loan Document pursuant to the Credit Agreement and shall (unless expressly indicated therein) be construed, administered, and applied, in accordance with all of the terms and provisions of the Credit Agreement.

DM_US 45915858-1.065322.0010    A-1

ACTUANT ELECTRICAL, INC.
ACTUANT INTERNATIONAL HOLDINGS, INC.
ACTUANT UK HOLDINGS, LLC
APPLIED POWER INVESTMENTS II, INC..
B.W. ELLIOTT MANUFACTURING CO., LLC
CORTLAND COMPANY, INC.
ELECTRICAL HOLDINGS LLC
GB TOOLS & SUPPLIES, LLC
HYDRATIGHT OPERATIONS, INC.    
MAXIMA HOLDING COMPANY, INC.
MAXIMA HOLDINGS -  EUROPE, INC.
MAXIMA TECHNOLOGIES & SYSTEMS, LLC
PRECISION SURE-LOCK, INC.
PSL HOLDINGS, INC.
SANLO, INC.
VERSA TECHNOLOGIES, INC.  

By:_______________________
Name:  Terry M. Braatz
Title:  Treasurer 

ENGINEERED SOLUTIONS, L.P.

By:     Versa Technologies, Inc., 
    its general partner

 
By:_______________________
Name:  Terry M. Braatz
Title:  Treasurer

ACTUANT EUROPE HOLDINGS SAS

By:_______________________
Name:  
Title:  

ACTUANT INTERNATIONAL LIMITED

By:_______________________
Name:  
Title:  

DM_US 45915858-1.065322.0010    A-2ATU 10-K 08.31.2013 EX 10.1

Exhibit 10.1

ACTUANT CORPORATION 
OUTSIDE DIRECTORS’ 
DEFERRED COMPENSATION PLAN
(Conformed through First Amendment)
Section 1.Definitions
The following words and terms shall have the indicated meanings wherever they appear in the Plan:
		
	1.1
	“Annual Deferral Amount” shall mean that portion of a Participant’s compensation that a Participant elects to have and is actually deferred for any annual term of office.

		
	1.2
	“Board of Directors”, “Directors” or “Director” shall mean, respectively, the Board of Directors, the Directors or a Director of the Company.

		
	1.3
	“Committee” shall mean the Compensation Committee of the Board of Directors.

		
	1.4
	“Company” shall mean Actuant Corporation.

		
	1.5
	“Deferred Shares” shall mean the units credited to Deferred Shares Accounts.  The Market Price of Deferred Shares shall be equal to the Market Price of Shares.

		
	1.6
	“Deferred Shares Account” or “Account” shall mean the separate account established under the Plan for each Participant, as described in Section 3.2.

		
	1.7
	“Market Price” shall mean the closing sale price for Shares on a specified date or, if Shares were not then traded, on the most recent prior date when Shares were traded, all as is quoted in The Wall Street Journal reports of New York Stock Exchange Composite Transactions.

		
	1.8
	“Notice Form” shall mean the form attached hereto and marked as Exhibit A or any other document which incorporates information substantially similar to Exhibit A.

		
	1.9
	“Participant” shall mean each Director of the Company who participates in the Plan in accordance with its terms and conditions.

		
	1.10
	“Plan” shall mean the Actuant Corporation Outside Directors’ Deferred Compensation Plan as set forth herein, or as it may be amended from time to time by the Board of Directors.

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	1.11
	“Shares” shall mean shares of Common Stock of the Company.

		
	1.12
	“Short-Term Payout” shall mean the payout set forth in Section 4.

		
	1.13
	“Treasurer” shall mean the Treasurer of the Company who shall have responsibility for those functions assigned under the Plan.

Section 2.    Participation
		
	2.1
	The Company maintains the Plan for the benefit of non-employee Directors of the Company, to provide such Directors with certain deferred compensation benefits.  Each Director who receives compensation under Section 3.1 is eligible to participate in the Plan.  The Plan is designed to comply with the American Jobs Creation Act of 2004, as amended (the “Jobs Act”), and Section 409A of the Code, and final Treasury regulations issued thereunder, with respect to Non-Grandfathered Amounts under the Plan.  “Grandfathered Amounts” shall mean the portion of the Participant’s Deferred Shares Account balance under the Plan as of December 31, 2004, the right to which was earned and vested (within the meaning of Treasury Regulation §1.409A-6(a)(2)) as of December 31, 2004, plus the right to future contributions to the Account the right to which was earned and vested (within the meaning of Treasury Regulation. §1.409A-6(a)(2)) as of December 31, 2004, to the extent such contributions are actually made, each determined by reference to the terms of the Plan in effect as of October 3, 2004, but only to the extent such Plan terms have not been materially modified (within the meaning of Treasury Regulation §1.409A-6(a)(4)) after October 3, 2004.  Grandfathered Amounts shall include any earnings (within the meaning of Treasury Regulation. §1.409A-1(o)) attributable thereto.  “Non-Grandfathered Amounts” shall mean the Participant’s Account balance under the Plan less any portion of the Participant’s Deferred Shares Account balance under the Plan constituting Grandfathered Amounts.   Prior to January 1, 2009, it is intended that the Plan be interpreted according to a good faith interpretation of the Jobs Act and Section 409A of the Code, and consistent with published guidance thereunder, including, without limitation, IRS Notice 2005-1 and the proposed and final Treasury regulations under Section 409A of the Code.  Treatment of amounts deferred under the Plan pursuant to and in accordance with any transition rules provided under all IRS published guidance and other applicable authorities in connection with the Jobs Act or Section 409A of the Code, including, without limitation, the adoption of the transition rules prescribed under Q&As 20 and 21 of IRS Notice 2005-1, shall be expressly authorized hereunder and shall be administered in accordance with procedures established by the Company or the Committee, as the case may be.  In the event of any inconsistency between the terms of the Plan and the Jobs Act or Section 409A of the Code with respect to Non-Grandfathered Amounts, the terms of the Jobs Act and Section 409A of the Code shall prevail and govern.

		
	2.2
	(1)  Each eligible Director may elect to participate in the Plan by giving a properly completed Notice Form to the Treasurer.  The effective date for his 

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participation in the Plan shall be the time of his election to that office for the ensuing term.  Such election by the Director to participate shall remain in effect until the end of the calendar year for which the Director’s election is applicable.  In the event that the Director does not submit a properly completed Notice Form to the Treasurer by December 31 of a given calendar year, he shall be deemed to have elected to defer no compensation during the subsequent calendar year, and such deemed election shall be irrevocable for that subsequent calendar year.
(a)      A Participant may change his beneficiary at any time by providing a Notice Form to the Treasurer.  A Participant may change the method or time of payment of compensation at any time by providing a Notice Form to the Treasurer, however; such change shall apply only to prospective deferrals.
(b)      A Participant may change his beneficiary at any time by providing a Notice Form to the Treasurer.  A Participant may change the method or time of payment of compensation at any time by providing a Notice Form to the Treasurer, however; such change shall apply only to prospective deferrals.
Section 3.    Compensation Deferred
		
	3.1
	A Participant may elect that the payment of all or a specified portion of the compensation otherwise payable to him in cash for services as a Director be deferred pursuant to the terms of this Plan.  Such compensation includes retainer fees and attendance fees but does not include travel expense allowance or any other expense reimbursement.  At the time of making any such election, a Participant shall elect that such compensation be deferred in the form of a Deferred Shares Account.

		
	3.2
	(a) A Deferred Shares Account shall be established for each Participant which shall be credited with the number of Shares that could be acquired with the amount deferred by the Participant under Section 3.1 above.  (b) In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering or any other change in the corporate structure or Shares of the Company, the Committee shall make such adjustment, if any, as it may deem appropriate in the number and kinds of Deferred Shares credited to the Deferred Shares Account.

		
	3.3
	Each Participant will receive a statement of the balance in his Account not less frequently than annually.

Section 4.    Short Term Payout
		
	4.1
	A participant may elect to receive a future Short-Term Payout from the Plan with respect to the Annual Deferral Amount.  The Short-Term Payout shall be a lump sum distribution of Shares equal to the number of the Deferred Shares in the Deferred Shares Account.  Subject to the other terms and conditions of this Plan, 

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each Short-Term Payout elected shall be paid within 60 days of the earlier of (i) the date selected by the Participant (which must be at least 5 years after the date of the Participant’s deferral election), or (ii) the date the Participant ceases to be a Director.  A properly completed election form making an irrevocable request for a Short-Term Payout is required to be submitted to the Treasurer prior to December 31 of the calendar year preceding the calendar year for which the Annual Deferral Amount relates.
Section 5.    Payment of Deferred Compensation
		
	5.1
	Upon the termination of a Participant’s services as a Director, the payment of the Deferred Shares remaining in his Deferred Shares Account shall commence within 60 days following the date the Participant ceases to be a Director and shall be paid in accordance with the method elected by the Participant on the applicable Notice Form or Forms, as provided in Section 5.2.

		
	5.2
	Subject to Section 2.2 and this Section 5, and except as provided in Section 4.1 a Participant may elect any of the following methods of payment of the balance or balances in his Account:

(a)      a lump sum distribution of Shares equal to the number of Deferred Shares in such account on the last business day before such payment, plus a cash payment equal to the amount of any excess which it has not been possible to convert into Deferred Shares in accordance with Section 3.2(a); or
(b)      distributions in annual installments for a term of five or ten years, in each case in Shares equal to the number of Deferred Shares in such Account on the last business day before such distribution.  The installment shares will be calculated by prorating the total number of Deferred Shares in the Deferred Shares Account equally over the applicable payout period.  The first such payment shall be made in the calendar year following the year in which the Participant’s services as a Director are terminated, and the last such payment will include a cash payment equal to the amount of any excess which it has not been possible to convert into Deferred Shares in accordance with Section 3.2(a) as well as the dividends earned on the undistributed Deferred Shares during the installment payout period.
		
	5.3
	In the event of a Participant’s death before the balance in his Account is fully paid out, payment of such balance shall be made to the beneficiary or beneficiaries designated by the Participant or, if the Participant has made no such designation or no beneficiary survives, to the Participant’s estate.  In either case, such payment shall be made in the same manner as provided with respect to payments to the Participant.

		
	5.4
	To the extent required by law in effect at the time any distribution is made from the Plan, the Company shall withhold any taxes and such other amounts required to be withheld by Federal, state or local governments.  Further, to the extent 

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required by law, the Company shall report amounts deferred and/or amounts taxable under the Plan to the appropriate governmental authorities, including, without limitation, to the United States Internal Revenue Service.
		
	5.5
	If any individual to whom a benefit is payable under the Plan is a minor or legally incompetent, the Company or the Committee shall determine whether payment shall be made directly to the individual, any person acting as his or her custodian or legal guardian under the Uniform Transfers to Minors Act, his or her legal representative or a near relative, or directly for his or her support, maintenance or education.  Any payment made in accordance with the preceding sentence shall be a complete discharge of any and all obligations to make such payment under the Plan on behalf of such individual.

		
	5.6
	Each Participant and (in the event of death) his or her Beneficiary shall keep the Company advised of his or her current address.  If the Company is unable to locate a Participant to whom a Participant’s Account is payable under this Section 5, the Participant’s Account shall be held in suspense pending location of the Participant, without any prejudice to the Committee or the Company (and each of their respective authorized delegates), as the case may be, including, without limitation, for any additional tax liability resulting from such delay in payment.  If the Company is unable to locate a Beneficiary to whom a Participant’s Account is payable under this Section 5 within six (6) months (or, with respect to a Participant’s Non-Grandfathered Amounts, such other period during which payment must commence under this Section 5 or, if later, such other period permitted under Section 409A of the Code) of the Participant’s death, the Participant’s Account shall be paid to the Participant’s estate.

Section 6.    General
		
	6.1
	The Company shall establish a rabbi trust (the “Trust”) to fund its future liability under the Plan.  The Plan terms shall govern the rights of a Participant to receive distributions from the Plan.  The Trust terms shall govern the rights of the Company, Participants and the creditors of the Company to the Trust assets.  Participants and their beneficiaries shall have no legal or equitable rights, interests or claims in any property or assets of the Company.  The right of any Participant or beneficiary to receive payment of any unpaid balance in any Account of the Participant shall be an unsecured claim against the general assets of the Company.

		
	6.2
	During a Participant’s lifetime, any payment under the Plan shall be made only to him.  No sum or other interest under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt by a Participant or any beneficiary under the Plan to do so shall be void.  No interest under the Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of a Participant or beneficiary entitled thereto.

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	6.3
	Except as otherwise provided herein, the Plan shall be administered by the Committee which shall have the authority, subject to the express provisions of the Plan, to adopt, amend and rescind rules and regulations relating to the Plan, and to interpret, construe and implement the provisions of the Plan.  Notwithstanding the foregoing, the Committee shall retain and exercise such discretion reserved hereunder only to the extent such retention and exercise of discretion does not violate the requirements of Section 409A of the Code with respect to a Participant’s Non-Grandfathered Amounts.

		
	6.4
	The Plan may at any time or from time to time be amended, modified, or terminated by the Board of Directors, provided that no amendment, modification or termination shall (a) adversely affect the balance in a Participant’s Deferred Shares Account without his consent or (b) permit payment of such balance prior to the date specified pursuant to Sections 4.1 and 5.2 (except for payments provided in Section 6.5) without his consent.

		
	6.5
	If the Plan is terminated pursuant to this Section 6, the balances credited to the Accounts of the affected Participants shall be distributed to them at the time and in the manner set forth in Section 5; provided, however, that the Committee, in its sole discretion, may authorize accelerated distribution of Participants’ Accounts as of any earlier date; provided that with respect to Non-Grandfathered Amounts, such discretion reserved to the Committee to accelerate the form and timing of the distribution of Participants’ Accounts shall be exercised only to the extent the termination of the Plan arises pursuant to and in accordance with one of the following provisions:

(a)      Corporate Dissolution or Bankruptcy.  The Plan is terminated and liquidated by the Company within 12 months of a corporate dissolution taxed under Section 331 of the Code, or with the approval of a bankruptcy court pursuant to Section 503(b)(1)(A) of the Bankruptcy Code, provided such amounts are included in the Participants’ gross incomes in the latest of the following years (of, if earlier, the taxable year in which such amounts are actually or constructively received) (i) the calendar year in which the Plan is terminated and liquidated, (ii) the first calendar year in which amounts are no longer subject to a substantial risk of forfeiture, or (iii) the first calendar year in which the payment is administratively practicable.
(b)      Change of Control Event.  The Company takes irrevocable action to terminate and liquidate the Plan within the 30 days before or 12 months after the occurrence of a Change of Control, provided that all other plans sponsored by the Company after the Change of Control with which the Plan is required to be aggregated under Section 409A of the Code are terminated and liquidated with respect to each Participant that experienced the Change of Control, so that all such Participants are required to receive a distribution of the amounts deferred under 

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the Plan and such aggregated plans within 12 months of the date the Company took such irrevocable action to terminate and liquidate all such aggregated plans.
(c)      Termination of All Similar Arrangements.  The Plan is terminated and liquidated by the Company, provided (i) the termination and liquidation does not occur proximate to a downturn in the financial health of the Company; (ii) the Company terminates and liquidates all other plans required to be aggregated under Section 409A if the same Company had deferrals of compensation under all such aggregated plans, (iii) no payments are made on account of the terminations (other than payments that would have been payable in the absence of the plan terminations) within 12 months of the date the Company takes irrevocable action to terminate and liquidate all such aggregated plans, (iv) all payments are made within 24 months of the of the date the Company takes irrevocable action to terminate and liquidate all such aggregated plans, and (vi) within three years following the date the Company takes irrevocable action to terminate and liquidate all such aggregated plans, the Company does not establish any new nonqualified deferred compensation plans that would otherwise have been aggregated with the Plan under Section 409A of the Code if the same Participant participated in both plans.
(d)      Other.  The Plan is terminated and liquidated pursuant to and in accordance such other events and conditions prescribed under Section 409A of the Code.
		
	6.6
	The Company shall, and hereby does, indemnify and hold harmless the Committee, the Company, and the members of the Committee (and each of their respective authorized delegates), from and against any and all losses, claims, damages or liabilities (including attorneys’ fees and amounts paid in settlement of any claim) arising out of or resulting from the implementation of a duty, act or decision with respect to the Plan, so long as such duty, act or decision does not involve gross negligence or willful misconduct on the part of the Committee, the Company, or any such member of the Committee.

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