Document:

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EXHIBIT - 10.12(A)

AGREEMENT FOR PAYMENT OF SUPPLEMENTAL BENEFITS

     THIS AGREEMENT (the Agreement) is executed the 26th day of April,1995 effective the
1st day of January, 1995 between The Dalton Foundries, Inc., an Indiana corporation with its
principal office in Warsaw, Indiana (the Company) and J. L. DeRita (the Employee).

RECITALS

     The Employee holds a key executive and management position with the Company and currently is
employed pursuant to a letter agreement dated July 25, 1994, as amended by a letter agreement dated
April 4, 1995 (the “Employment Letter”). As additional incentive to the Employee and to assure his
interest in the Company’s continued growth and success, the Company is willing to provide to the
Employee certain deferred, supplemental benefits as described herein.

     THEREFORE, in consideration of their mutual undertakings, the parties agree as follows:

     1. Continued Employment. The Company continues the Employee’s services as
an employee and the Employee accepts continued employment under the terms and
conditions of the Employment Letter and this Agreement

     2. Other Benefits. Nothing contained in this Agreement shall be construed to
exclude the Employee from any supplemental compensation, bonus, insurance, medical,
severance, retirement or other employee benefit to which he otherwise may be or become
entitled as an employee of the Company. The benefit(s) payable under this Agreement shall

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not be construed as compensation to the Employee for the purpose of computing benefits under
any employee retirement plan or similar arrangement maintained by the Company for the benefit
of its employees.

     3. Supplemental Retirement Benefit.

     (a) For purposes of this Agreement: “Service” means employment with the
Company, and “Benefit Commencement Date” means the first day of the month
following the earlier of (i) the date the Employee attains age sixty-five (65) or (ii)
the date of the Employee’s death.

     (b) If the Employee’s Service continues to the date he attains age sixty-five
(65), a supplemental retirement benefit shall be paid by the Company to the
Employee in the amount of Four Thousand One Hundred Sixty-Seven Dollars
($4,167) per month for a period not to exceed one hundred twenty (120) months,
commencing on the Employee’s Benefit Commencement Date.

     4. Death or Disability Benefit. If the Employee’s Service is terminated by death or
disability at any time, in lieu of the supplemental retirement benefit a death benefit equal in amount to the
supplemental retirement benefit shall be paid by the Company to the Employee’s spouse,
Sandra L. DeRita (if she survives) during her lifetime. Such benefit shall be paid monthly
for a period not to exceed one hundred twenty (120) months, commencing on the Employee’s Benefit Commencement Date.

     5. Involuntary Termination.

     (a) If the Employee’s Service is terminated involuntarily by the Company for
any reason other than Cause, the Employee shall be given credit for Service for,

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and for the purpose of crediting Service shall be deemed to be an employee of the Company during,
the period from the date of his termination of employment to the first day of the month following
the earlier of (i) the date he attains age sixty-five (65) or (ii) the date of his death,
notwithstanding the fact that he is not an employee of the Company during such period.

     (b) For purposes of this Paragraph 5, “Cause” means:

     (i) The willful and continued failure of Employee to perform his duties as an employee of the Company;

     (ii) An action by Employee which involves willful misfeasance or gross negligence in connection with the
performance of his duties as an employee of the Company;

     (iii) Conviction of Employee of the commission of any criminal offense which involves dishonesty or breach of trust; or

     (iv) Any intentional breach by Employee of a material term, condition or covenant of this Agreement or any other agreement between Employee and the Company.

     6. Change in Control.

     (a) For all purposes of Paragraphs 3 and 4 of this Agreement and the deferred compensation
arrangement described in the Employment Letter, if the Employee’s Service is terminated for any
reason following a Change in Control of the Company the Employee shall be given credit for Service
for, and for the purpose of crediting Service shall be deemed to be an employee of the Company
during, the

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period from the date of his termination of employment to the first day of the month
following the earlier of (i) the date he attains age sixty-five (65) or (ii) the date of
his death, notwithstanding the fact that he is not an employee of the Company during such
period.

     (b) For purposes of this Paragraph 6, “Change in Control” means the acquisition by any person, entity or group of persons within the meaning of Section
13(d) or 14(d) of the Securities Exchange Act of 1934 (“Act”), or comparable
successor provisions, of beneficial ownership (within the meaning of Rule 13d promulgated under the Act) of 25% or more of either the outstanding shares of
common stock or the combined voting power of the Company’s then outstanding
voting securities entitled to vote generally, or the approval by the Company’s
stockholders of any merger, consolidation or other reorganization with respect to which persons who were stockholders of the Company immediately prior to such
reorganization do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in the election of directors of the reorganized
Company’s then outstanding securities, or the sale of all or substantially all of the
Company’s assets, or a liquidation or dissolution of the Company.

     7. Noncompetition and Nondisclosure. The Employee recognizes and acknowledges that incident to his employment by the Company he has access to certain
confidential information with has significant competitive value and is known only to the
Company and its authorized personnel. This information includes (but is not limited to)
vendor and customer lists, prices and pricing structures, marketing plans, engineering and

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manufacturing designs and techniques, and other information concerning the manner in which the
Company’s business is conducted. The Employee further acknowledges that such information is the
unique and valuable property of the Company. Therefore, the Employee agrees that he will not at
any time, either before or after the termination of his employment for any reason, use for the
benefit of any person other than the Company, or disclose to any other person, any such
confidential information. In addition, during the remaining period of his employment and for a
period of one (1) year thereafter, the Employee will not directly or indirectly, either alone or
with any other person:

     (a) Solicit or enter into any contractual relationship with any customer of
the Company or any of the Company’s employees or agents, without the prior written
consent of the Company; nor

     (b) As an owner, employee, partner, shareholder, independent contractor or otherwise, establish or engage in any business, enterprise or other activity
involving the manufacture, production, machining or sale of gray iron castings in competition
with the business of the Company;

     (c) For purposes of the foregoing provisions of this Paragraph 8, the term
“Company” shall include the Company and any direct or indirect subsidiary of the
Company.

In the event of a material breach of any of the covenants contained in this Paragraph 8, if the
Employee does not substantially cure such breach within ten (10) business days of receiving
written notice of the breach from the Company, thereafter no benefits shall be payable to or on
behalf of the Employee or his beneficiaries under this Agreement; and in

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such case the Company shall be entitled (in addition to any other remedy available at law or in
equity) to the enforcement of such covenants by injunctive relief and to the recovery of damages,
including a reasonable sum for its attorneys’ fees and expenses.

     8. Facility of Payment. Notwithstanding any other provision of this Agreement,
if the Employee or any beneficiary entitled to payments under this Agreement in the
Company’s opinion becomes incapacitated and unable to manage his financial affairs, the
Company may make such payments to his legal representative or to a relative or friend for
his benefit or may otherwise make payments for the benefit of such person in any manner
that it considers advisable; and any such payment shall be a full and complete discharge of
the Company’s liability for such payment.

     9. No Assignment; Binding Effect. This is a personal services contract which is
not assignable by the Employee. Neither shall the Employee nor any beneficiary assign,
grant a security interest in or otherwise transfer his right or interest in any benefit under
this Agreement, nor shall any such right or interest be subject to attachment, garnishment, levy,
execution or other legal or equitable process. However, the Company may assign its rights
under this Agreement by operation of law or to a parent or subsidiary corporation or a
successor by merger or consolidation; and subject to the foregoing provisions of this
paragraph, this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, assigns, personal representatives, heirs, legatees and
beneficiaries.

     10. Additional Conditions.

     (a) The Company in its discretion may elect to fund the benefits under this
Agreement through insurance owned and maintained by the Company on the

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Employee’s life. In such event the Employee shall cooperate with the Company by providing
such necessary information and undergoing such examinations as the insurance carrier(s) may
reasonably require.

     (b) The benefits provided to the Employee hereunder shall at all times be a general,
unsecured and unfunded obligation of the Company. This Agreement shall not give any person
any right or security interest in any asset of the Company, nor shall it imply any trust
or segregation of assets by the Company.

     11. Provisions Which Survive. The provisions of Paragraphs 3 through 10 (as well
as any other provision necessary for these paragraphs to be effective) shall survive the
termination of the Employee’s employment and the termination of this Agreement for any
reason.

     12. Entire Agreement. This Agreement shall terminate and supersede all prior
agreements except the Employment Letter, whether written or oral, with respect to the
subject matter of this Agreement, and excepting the Employment Letter this Agreement
represents the entire agreement between the parties with respect to such matters. This
Agreement may be amended or revoked only by an Agreement in writing between the
Company and the Employee.

     13. Severability. If any provision of this Agreement or its application to any
person or circumstance shall be invalid or unenforceable to any extent or in any jurisdiction,
the remainder of this Agreement and the application of its provisions to other persons or
circumstances and in other jurisdictions shall not be affected and shall be in force to the
extent permitted by law.

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     14. Waiver of Breach. The waiver by either party of a breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent breach by
either the Company or the Employee.

     15. Governing Law. This Agreement shall be construed in accordance with the
laws of the State of Indiana as if the Agreement were wholly to be performed in the State
of Indiana.

     EXECUTED on the date first stated above.

	 	 	 	 	 
	 	COMPANY

THE DALTON FOUNDRIES, INC.

 	 
	 	By:  	/s/ K. L. Davidson
 	 
	 	 	K. L. Davidson, Chairman and Chief 	 
	 	 	Executive Officer 	 
	 

	 	 	 	 	 
	 	EMPLOYEE 

 	 
	 	/s/ J. L. DeRita
 	 
	 	J. L. DeRita 	 
	 

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DALTON 

Dalton Corporation

July 31 , 2001

Mr. J. L. DeRita, President

Dalton Corporation 
P.O.
Box 230

Warsaw, IN 46581-0230

Dear Joe:

     In consideration of your continued employment by Dalton Corporation (“Company”),
this letter is signed and delivered to you for the purpose of correcting an ambiguity
in Paragraph 3(b) of the Agreement for Payment of Supplemental Benefits executed
between you and the Company under date of April 26, 1995.

     It is agreed that Paragraph 3(b) is hereby amended to include the following
additional sentence:

     “Such payments shall be continued during the Employee’s lifetime, but in
the event of the Employee’s death before the one hundred twenty (120) monthly
payments are completed, such payments shall be continued by the Company to
the Employee’s spouse, Sandra L. DeRita (if she survives), during her
lifetime until the earlier of her death or the expiration of such 120
months.”

     Please indicate your acceptance of this Amendment by signing and returning to me
the enclosed copy of this letter.

	 	 	 	 	 
	 	 	 
	 	Sincerely yours,

 	 
	 	/s/
William M. Barrett 	 
	 	William M. Barrett 	 
	 	 	 
	 

     Accepted
this 31st day of July, 2001.

	 	 	 	 	 
	 	 	 
	 	/s/ J. L. DeRita
 	 
	 	J. L. DeRita 	 
	 	 	 
	 

General Office

P.O.Box 230

Warsaw, IN 46581-0230

(219) 267-8111exv10w20

 

Exhibit 10.20

NEENAH FOUNDRY COMPANY AMENDED AND RESTATED

2003 SEVERANCE AND CHANGE OF CONTROL PLAN

1.  Purpose.

     This plan shall be known as the Neenah Foundry Company Amended and Restated 2003 Severance and
Change of Control Plan (the “Plan”). The purpose of the Plan shall be to set forth payments and
other benefits, if any, to which an executive of Neenah Foundry Company (the “Company”) or any of
its Subsidiaries will be entitled upon termination of such person’s employment. This Plan document
supersedes, in all respects, the prior version of the Plan, (as previously amended) as of the
Effective Date.

2.  Definitions. For purposes of this Plan, except when the context clearly indicates otherwise,
the following terms shall have the meanings set forth below.

     “Affiliate” means, in respect of any Person, any other Person who, directly, or indirectly
through one or more intermediaries, controls, is controlled by, or is under common control with
such Person. For purposes of this definition, “control” (including the terms “controlled by” and
“under common control with”) when used in respect of any Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract, or otherwise.

     “Base Salary” means, with respect to any Plan Participant, “Base Salary” as defined in such
Plan Participant’s Employment Agreement.

     “Board of Directors” and “Board” mean the board of directors of the Company.

     “Cause” means, with respect to a Plan Participant, the occurrence of one or more of the
following events: (i) such Plan Participant’s willful and material breach of, or gross negligence
or malfeasance in the performance of, the Plan Participant’s duties under such Plan Participant’s
Employment Agreement; (ii) any material insubordination by the Plan Participant with respect to
carrying out the reasonable instructions of the Board; (iii) the conviction for, or the entering of
a guilty plea or plea of nolo contendere with respect to, a felony, the equivalent thereof or other
crime with respect to which imprisonment of more than one year is a possible punishment or that is
expected to result in Significant Injury; (iv) a Plan Participant’s breach of a fiduciary
obligation to the Company Group or breach of any confidentiality or non-competition obligation set
forth herein; (v) any act of moral turpitude or willful misconduct by the Plan Participant that (1)
is intended to result in personal enrichment of the Plan Participant or any related person at the
expense of the Company Group or (2) is reasonably expected to result in Significant Injury;
provided, however, that the Plan Participant shall have 21 days (or such longer period as is
reasonable under the circumstances) after written notice by the Company of any such event
constituting “Cause” hereunder in which to cure any failure or default under subsections (i) and
(ii) that is curable.

 

 

     “Change of Control” means the consummation of any transaction or series of related
transactions, the result of which is that: (i) any Person or group (within the meaning of Rule
13d-5 of the Exchange Act), other than Tontine together with its Affiliates, shall own directly or
indirectly, beneficially or of record, greater than 50% of the equity securities of NEI or the
Company on a fully diluted basis; (ii) substantially all of the assets of NEI and its Subsidiaries
taken as a whole are sold or NEI is merged or recapitalized and the stockholders of NEI do not own
a majority of the voting stock of the surviving corporation, or (iii) after the first fully
distributed public offering of voting stock of any member of the Company Group (1) any Person or
group (within the meaning of Rule 13d-5 of the Exchange Act), shall own directly or indirectly,
beneficially or of record, a percentage of the issued and outstanding voting stock of NEI or the
Company on a fully diluted basis, having ordinary voting power in excess of 35% and in excess of
the percentage then owned, directly or indirectly, beneficially and of record, on a fully diluted
basis, by Tontine together with its Affiliates, or (2) a majority of the seats on the boards of
directors of NEI or the Company (except in the case of any vacancy for 30 days or less resulting
from the death or resignation of any director) is replaced during a twelve-month period by persons
who were neither (i) nominated by Tontine nor (ii) appointed by directors so nominated, in each
case, whether as the result of the purchase, issuance or sale of securities of any member of the
Company Group or any merger, consolidation, liquidation, dissolution, recapitalization or similar
transaction involving any member of the Company Group. Notwithstanding the foregoing, no Change of
Control shall have occurred unless the transaction or series of transactions results in a Change in
Control within the meaning of Code Section 409A and the regulations thereunder. This Change of
Control definition shall be interpreted in a manner which is consistent with Code Section 409A and
the regulations thereunder.

     “Change of Control Multiple” means, with respect to any Plan Participant, “Change of Control
Multiple” as defined in such Plan Participant’s Employment Agreement.

     “Change of Control Payment” has the meaning given to such term in Section 4(b) hereof.

     “COBRA” means Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act
of 1974, as amended and Section 4980B of the Code.

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

     “Committee” means the Compensation Committee of the Board or such other committee that
consists solely of two or more individuals, each of whom is a Non-Employee Director and an “outside
director” within the meaning of Treasury Regulation Section 1.162-27(e)(3).

     “Company” has the meaning set forth in Section 1 hereof.

     “Company Group” means NEI, the Company and their respective Subsidiaries.

     “Effective Date” means October 25, 2007.

     “Employment Agreement” means the written agreement between any Plan Participant and the
Company or any of its Subsidiaries pursuant to which such Plan Participant is entitled to the
benefits under the Plan.

 

 

     “Employment Period” means, with respect to a Plan Participant’s employment, the period from
the effective date of the Employment Agreement until the date the Plan Participant is no longer
employed with the Company.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Excise Taxes” has the meaning given to such term in Section 4(b)
hereof.

     “Good Reason” means with respect to any Plan Participant, the termination of such Plan
Participant’s employment within a year following a material
diminution in Participant’s Base Salary, a material diminution
in the Participant's authority,
duties and responsibilities or a material change in the geographic location at which the Plan
Participant must perform services and, solely with respect to Robert E. Ostendorf, either: (i)
the failure of the Company Group to nominate Mr. Ostendorf to the Board of Directors of NEI and
each of its subsidiaries; or (ii) the Board repeatedly overrides, supersedes or disregards
reasonable decisions by Mr. Ostendorf or reasonable recommendations made by Mr. Ostendorf to the
Board such that the Board materially interfered with Mr. Ostendorf’s ability effectively function
as President and Chief Executive Officer. A Participant may not terminate for Good Reason unless
he provides the Company Group with notice of the condition constituting the Good Reason within 90
days of the existence of the condition and the Company Group fails to remedy the condition within
30 days of such notice.

     “Gross-Up Amount” has the meaning given to such term in Section 4(b) hereof.

     “NEI” means Neenah Enterprises, Inc. a Delaware corporation (formerly known as ACP Holding
Company).

     “Non-Employee Director” has the meaning given to such term in Rule 16b-3 under the Exchange
Act and any successor thereto.

     “Payout Period” means, with respect to any Plan Participant, “Payout Period” as defined in
such Plan Participant’s Employment Agreement.

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

     “Plan” has the meaning set forth in Section 1 hereof.

     “Plan Participant” means each of Robert E. Ostendorf, Jr., Gary LaChey, Frank Headington,
Timothy Koller, William Martin, Joseph Varkoly, Steve Shaffer, John Andrews, Robert Gitter, Dennis
O’Brien, Joseph Harvey, Ronald Schmucker and any other employee of the Company Group selected by
the Board or the Committee.”

     “Severance Multiple” means, with respect to any Plan Participant, “Severance Multiple” as
defined in such Plan Participant’s Employment Agreement.

 

 

     “Severance Payments” has the meaning given to such term in Section 4(a) hereof.

     “Significant Injury” means significant economic or reputational injury or both (such
determination to be made by the Board in its reasonable judgment) to the Company Group.

     “Subsidiary” of any Person means a corporation or other entity of which outstanding shares or
ownership interests representing 50% or more of the combined voting power of such corporation or
other entity entitled to elect the management thereof, or such lesser percentage as may be approved
by the Committee, are owned directly or indirectly by such Person.

     “Tontine” means Tontine Capital Partners, L.P., a Delaware limited partnership.

3.  Administration.

     The Plan shall be administered by the Committee; provided, that the Board may, in its
discretion, at any time and from time to time, resolve to administer the Plan, in which case the
term “Committee” shall be deemed to mean the Board for all purposes herein. Subject to the
provisions of the Plan, the Committee shall be authorized to: (i) select persons to participate in
the Plan in addition to those entitled to participate in the Plan pursuant to Employment Agreements
entered into at or prior to the Effective Date; (ii) determine the form, substance, terms and
conditions of each additional grant made under the Plan; (iii) certify that the conditions and
restrictions applicable to any grant have been met; (iv) modify the terms of grants made under the
Plan; (v) make any adjustments necessary or desirable in connection with grants made under the Plan
to eligible participants located outside the United States; (vi) adopt, amend, or rescind rules and
regulations for the administration of the Plan, including, but not limited to, correcting any
defect or supplying any omission, or reconciling any inconsistency in the Plan or in any Employment
Agreement, in the manner and to the extent it shall deem necessary or advisable, including so that
the Plan and the operation of the Plan complies with the Code to the extent applicable and other
applicable law; and (vii) exercise such powers and perform such acts as are deemed necessary or
advisable to promote the best interests of the Company with respect to the Plan; provided, that in
no event shall any amendment, modification, adjustment, correction or supplement to the Plan
pursuant to the foregoing clauses (i) through (vii) adversely affect any Plan Participant without
such Plan Participant’s consent. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with applicable federal and
state laws and rules and regulations promulgated pursuant thereto. No member of the Committee and
no officer of the Company shall be liable for any action taken or omitted to be taken by such
member, by any other member of the Committee or by any officer of the Company in connection with
the performance of duties under the Plan, except for such person’s own willful misconduct or as
expressly provided by statute.

     The expenses of administering the Plan shall be borne by the Company.

 

 

4.  Severance Arrangements; Change of Control Payments.

     (a)     Severance Arrangement. Except as provided in Section 4(b) and 4(c) below, if any Plan
Participant’s employment with a member of the Company Group is terminated by such Person other than
for Cause, or if any Plan Participant resigns from employment with such Person for Good Reason,
such Plan Participant shall receive, during the Payout Period, (x) severance payments (“Severance
Payments”) equal in the aggregate to the product of (1) the Severance Multiple and (2) Base Salary
of such Plan Participant and (y) the health benefits, at the Company’s cost (subject to satisfying
insurability requirements), to which such Plan Participant would otherwise have been entitled
pursuant to the Employment Agreement (subject to such Plan Participant’s COBRA election) and
outplacement services, in each case, for the Payout Period. Severance Payments shall be made
bi-weekly, in accordance with normal payroll practices for the Payout Period except that if any
class of NEI common stock is publicly tradable on an established securities market, no amounts
shall be paid pursuant to this Section 4(a) during the first 6 months following a Participant’s
termination unless the payments satisfy the requirements for separation pay due to involuntary
separation from service as provided in Treas. Reg. 1.409A-1(b)(9)(iii). The Company’s health
benefits and outplacement services described above will be made available until the earlier of the
end of the Payout Period or the receipt of comparable benefits on re-employment. Severance
Payments shall not be reduced as a result of re-employment or otherwise.

     (b)     Termination upon Change of Control. If any Plan Participant’s employment with a member of
the Company Group is terminated by such Person other than for Cause or if any Plan Participant
resigns from employment with such Person for Good Reason, in each case, within one year after a
Change of Control, such Plan Participant shall receive a lump sum cash payment in an amount equal
to the product of (x) the Change of Control Multiple and (y) Base Salary (the “Change of Control
Payment”). The Change of Control Payment (i) will be payable by the Company to such Plan
Participant in a lump sum within 30 days of such Plan Participant’s termination pursuant to the
preceding sentence, (ii) is not subject to mitigation or reduction upon re-employment or otherwise
and (iii) will be increased to provide for payment of an additional amount (the “Gross-Up Amount”)
such that the net amount retained by the Plan Participant, after payment of (1) any excise taxes
due on the Change of Control Payment under Section 4999 of the Code or any corresponding or
applicable state law provision (“Excise Taxes”) and (2) any federal, state or local income tax and
any Excise Taxes due in respect of the Gross-Up Amount, shall equal the Change of Control Payment.
Clauses (i) and (ii) of the immediately preceding sentence shall apply to the Gross-Up Amount.
Such Plan Participant shall also be entitled to the continuation of health benefits (subject to
satisfying insurability requirements) and outplacement services during the Payout Period on the
same basis as provided pursuant to Section 4(a), subject to mitigation upon re-employment and
receipt of comparable benefits set forth in Section 4(a). Payments made upon termination following
a Change of Control are in lieu of any severance payments described in Section 4(a) above that
would otherwise be payable following such termination. Notwithstanding the foregoing, if any class
of NEI common stock is publicly tradable on an established securities market, no amounts shall be
paid pursuant to this Section 4(b) during the first 6 months following a Participants termination
unless the payments satisfy the requirements for separation pay due to involuntary separation from
service as provided in Treas. Reg. 1.409A-1(b)(9)(iii).

 

 

     (c)     Notwithstanding any other provision of Section 4 to the contrary, to the extent that: (i)
NEI common stock is publicly tradable on an established securities market and (ii) any benefits
provided pursuant to Section 4 during the first six months after the Participant’s termination are
not paid pursuant to a qualified plan, a bona fide sick leave or vacation plan, a disability plan,
a death benefit plan or a plan providing medical expense reimbursements which are non-taxable or a
separation pay plan (within the meaning of the regulations under Code Section 409A), the
Participant shall pay the cost of such coverage during the first six months following termination
and shall be reimbursed for the cost of such coverage six months after Participant’s termination.
Notwithstanding any other provision of this Section 4 to the contrary, including the preceding
sentence, if the provision of any medical benefits coverage pursuant to this Section 4 would be
discriminatory within the meaning of Code Section 105(h), then, to the extent necessary to prevent
such discrimination, the Participant (or his survivors, as the case may be) shall pay the cost of
such coverage and Participant (or his survivors, as the case may be) shall not be reimbursed by any
member of the Company Group for doing so.

5.  Termination of Employment.

     A Participant shall be considered terminated for purposes of the Plan if, based on all
relevant facts and circumstances, the Company Group reasonably anticipates that no further services
will be performed after such date for any member of the Company Group or that the level of bona
fide services that the Participant will perform after such date (whether as an employee or as an
independent contractor) would permanently decrease to no more than twenty percent (20%) of the
average level of bona fide services performed (whether as an employee or independent contractor)
over the immediately preceding 36 month period. A Participant shall be considered to have
terminated in connection with a leave of absence as provided in applicable regulations issued under
Code Section 409A.

6.  Amendment under the Plan.

     The terms of any outstanding award, payment, grant or incentive under the Plan may be amended
from time to time by the Committee solely to provide rights under the Plan that are more favorable
to any Plan Participant; provided, that if such amendment adversely affects the rights of any Plan
Participant, such amendment shall be deemed to affect such Plan Participant only upon such Plan
Participant’s written consent.

7.  Commencement Date; Termination Date.

     The date of commencement of the Plan shall be the Effective Date.

     Each Plan Participant shall be paid the awards, payments, grants and incentives to which such
Plan Participant is entitled pursuant to the Plan as of the Effective Date, and the Plan shall not
be terminated unless and until each Plan Participant receives such awards, payments, grants and
incentives. No termination of the Plan shall materially and adversely affect any of the rights or
obligations of any Plan Participant, without such Plan Participant’s written consent, under any
grant of any incentives theretofore granted under the Plan.

 

 

8.  Severability.

     Whenever possible, each provision of the Plan shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of the Plan is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of the Plan.

9.  Governing Law.

     The Plan shall be governed by the corporate laws of the State of Delaware, without giving
effect to any choice of law provisions that might otherwise refer construction or interpretation of
the Plan to the substantive law of another jurisdiction.

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