Document:

Retirement Benefit Equity Plan

 Exhibit 10.3 
 As Amended October 29, 2007, 
 effective as of January 1, 2005 
 RETIREMENT BENEFIT EQUITY PLAN 
 OF

 ARMSTRONG WORLD INDUSTRIES, INC. 
 This Retirement Benefit Equity Plan was originally established, pursuant to the authority of the Board of Directors of Armstrong World Industries, Inc., effective January 1, 1976 to pay supplemental retirement
benefits to certain employees of the Company who have qualified or may qualify for benefits under the Retirement Income Plan for Employees of Armstrong World Industries, Inc. The Retirement Benefit Equity Plan was previously amended and restated as
of March 1, 2004. 
 The Retirement Benefit Equity Plan is hereby amended and restated as of January 1, 2005 to comply with the
requirements of Section 409A of the Internal Revenue Code of 1986 as amended and the guidance (including transitional guidance) thereunder. 
 All benefits payable under this Plan shall be paid out of the general assets of the Company, or from a trust, if any, established by the Company for the purpose of paying benefits under the Plan, the assets of which shall remain subject to
the claims of judgment creditors of the Company in accordance with the provisions of any such trust. 
 Article 1. Definitions 
  

	 	1.01. 	“Actuarial Equivalent Present Value” shall refer to the present value of a Member’s supplemental benefits. With respect to any Member who is eligible to retire or has
retired under the Retirement Income Plan, such present value shall be determined using the actuarial assumptions and factors reasonably utilized under the Retirement Income Plan as of the date of determination applied to a single life annuity
payable immediately. With respect to any Member who is not eligible to retire or has not retired under the Retirement Income Plan, such present value shall be determined using the actuarial assumptions and factors reasonably utilized under the
Retirement Income Plan as of the date of determination applied to an age 65 single life annuity. The determination of Actuarial Equivalent Present Value shall reflect future assumed increases in the limitations under Section 415 of the Internal
Revenue Code, with such future assumed increases being based on the interest rate that is used by the Committee to determine the amount of any employment taxes that may be owed under Section 3121(v) of the Internal Revenue Code.

  

	 	1.02. 	“Board of Directors” shall mean the Board of Directors of the Company. 

  

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	 	1.03. 	“Change in Control” shall mean the first to occur of any of the following events: (i) a Change in Ownership of the Company, (ii) a Change in Effective Control of
the Company or (iii) a Change in the Ownership of a Substantial Portion of the Assets of the Company. 

  

	 	(a)	A “Change in Ownership” of the Company occurs on the date that any one person, or more than one person acting as a group acquires ownership of stock of the Company that,
together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Company. 

  

	 	(b)	A “Change in Effective Control” of the Company occurs on the date that either: 

  

	 	(i)	Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or
persons) ownership of stock of the Company possessing 30 percent or more of the total voting power of the stock of the Company; or 

  

	 	(ii)	a majority of members of the Company’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the
members of the Company’s board of directors prior to the date of the appointment or election. 

  

	 	(c)	A “Change in the Ownership of a Substantial Portion of the Assets of the Company” occurs on the date that any one person, or more than one person acting as a group,
acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 40 percent of the total gross
fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets being disposed of, determined without regard to any liabilities
associated with such assets. There is no Change in Control event under this Section 1.03(c) when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer.

 The determination of whether a Change in Control event has occurred will be made in accordance with the requirements of Code
Section 409A and the guidance issued thereunder. The foregoing definition of Change in Control shall exclude the occurrence of the date(s) on which (i) the Chapter 11 Plan of Reorganization of the Company shall become effective and
(ii) the creation by the Company of the Asbestos Personal Injury Trust. 
  

	 	1.04. 	“Committee” shall mean the Retirement Committee as provided for in Article 4. 

  

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	 	1.05. 	“Company” shall mean Armstrong World Industries, Inc. or any successor by merger, purchase or otherwise, with respect to its employees. The term Company shall also mean
any other company participating in the Retirement Income Plan with respect to its employees if such Company adopts this Plan. 

  

	 	1.06. 	“Compensation” shall mean a Member’s “compensation” as determined under the Retirement Income Plan without regard to limitations under
Section 401(a)(17) of the Internal Revenue Code, plus amounts deferred by the Member under the Armstrong Deferred Compensation Plan, if any, and amounts contributed by the Company to the Bonus Replacement Retirement Plan of Armstrong World
Industries, Inc. (the “Bonus Replacement Retirement Plan”) on behalf of the Member in the year in which such contribution is made. 

  

	 	1.07. 	“Effective Date” shall mean January 1, 1976. 

  

	 	1.08. 	“Member” shall mean any person included in the membership of the Plan as provided in Article 2. 

  

	 	1.09. 	“Plan” shall mean the Retirement Benefit Equity Plan of Armstrong World Industries, Inc. as described herein or as hereafter amended. 

  

	 	1.10. 	“Specified Employee” shall mean, as determined pursuant to Section 409A of the Internal Revenue Code and regulations thereunder, a key employee (as defined in
Section 416(i) of the Code without regard to paragraph 5 thereof) of the Company if any stock of the Company is publicly traded on an established securities market or otherwise. 

  

	 	1.11. 	“Retirement Income Plan” shall mean the Retirement Income Plan for Employees of Armstrong World Industries, Inc. as amended and restated as of January 1, 2007 as may
be amended from time to time. 

 Article 2. Membership 
  

	 	2.01. 	Every person who was a member of the Plan as in effect on December 31, 1999 shall remain a Member of the Plan on or after January 1, 2000. 

  

	 	2.02. 	Every other employee of the Company shall become a Member of the Plan on the first day of the calendar year in which the Committee determines that: 

  

	 	(a)	the employee’s benefit calculated under the Retirement Income Plan exceeds the allowed benefit under Section 415 of the Internal Revenue Code, 

  

	 	(b)	the employee’s compensation exceeds the maximum allowed under Section 401(a)(17) of the Internal Revenue Code, 

  

	 	(c)	the employee has compensation deferred under the terms of the Armstrong Deferred Compensation Plan, 

  

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	 	(d)	the employee is a key executive designated by the Board of Directors, or its delegate, to receive credit for employment prior to his Company employment for purposes of calculating
his Retirement Income Plan benefit, as provided under Section 3.01(a)(iii) of this Plan, or 

  

	 	(e)	the employee has a contribution made on his behalf to the Bonus Replacement Retirement Plan. 

 Effective January 1, 2008, every other employee of the Company shall become a Member of the Plan on the first day of the calendar year following the
calendar year in which the Committee makes the determination described above. 
  

	 	2.03. 	Membership under the Plan shall terminate if a Member’s employment with the Company terminates unless at that time the Member is entitled to retirement income payments pursuant
to the Retirement Income Plan or benefits described in Section 3.04. 

 Article 3. Amount and Payment of Supplemental Benefits 

 

	 	3.01. 	The supplemental benefits under this Plan shall be payable by the Company only with respect to a Member who has retired or otherwise terminated his employment with the Company after
becoming vested under the Retirement Income Plan. Any such supplemental benefits shall be payable from the general assets of the Company or from a trust, if any, established by the Company for the purpose of paying benefits under the Plan, the
assets of which shall remain subject to the claims of judgment creditors of the Company in accordance with the provisions of any such trust. 

 The amount of any supplemental benefits payable to a Member pursuant to this Plan, expressed as a single life annuity payable as of the Member’s “normal retirement date” (as that term is defined in the
Retirement Income Plan) or in the event the Member defers his retirement beyond his normal retirement date, his “deferred retirement date” (as that term is defined in the Retirement Income Plan), shall be equal to (a) minus
(b) minus (c) minus (d), where: 
  

	 	(a)	is the benefit calculated under the provisions of the Retirement Income Plan, but: 

  

	 	(i)	disregarding any reduction in the amount of benefits under the Retirement Income Plan attributable to any provision therein incorporating limitations imposed by Section 415 of
the Internal Revenue Code or Section 401(a)(17) of the Internal Revenue Code; 

  

	 	(ii)	disregarding any reduction due to compensation deferred under the Armstrong Deferred Compensation Plan; 

  

	 	(iii)	 including, for purposes of calculating Total Service under the Retirement Income Plan, years of employment for a Member described 

  

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in Section 2.02(d) which precede his Company employment to the extent so designated by the Board of Directors, or its delegate, at the time such
individual is designated as eligible for membership in the Plan; and 

  

	 	(iv)	including, for purposes of determining compensation, any amounts contributed on the Member’s behalf to the Bonus Replacement Retirement Plan; and 

  

	 	(v)	excluding any amount attributable to (1) an Extraordinary Event (as defined in the Retirement Income Plan) and (2) all retirement enhancements related to past and future
service that may become payable due to a job loss following a Change in Control (as defined in the Retirement Income Plan) under the Retirement Income Plan. 

  

	 	(b)	is the actual amount of benefits payable to or on account of the Member as calculated under the Retirement Income Plan, excluding any amounts attributable to (1) an
Extraordinary Event (as defined in the Retirement Income Plan) and (2) all retirement enhancements related to past and future service that may become payable due to a job loss following a Change in Control (as defined in the Retirement Income
Plan) under the Retirement Income Plan; 

  

	 	(c)	is the value of the benefit (excluding the portion of such benefit attributable to employee contributions) which is payable, which has been paid or which will become payable to a
Member described in Section 2.02(d) from a qualified defined benefit plan to the extent such plan takes into account the period of employment described in Section 3.01(a)(iii). In the event the Member has received, is receiving, or is
scheduled to receive benefits from another such plan in any form other than a single life annuity or at a time other than when benefits commence under this Plan, the benefit to be taken into account under this subsection (c) shall be determined
by the Company based on actuarial assumptions and factors reasonably utilized under the Retirement Income Plan as of the date of determination; and 

  

	 	(d)	is the actuarial equivalent value of any supplemental benefits previously paid to the Member under this Plan, provided that the actuarial equivalent value of any supplemental
benefits paid as a single sum shall be determined using the actuarial assumptions and factors reasonably utilized under the Retirement Income Plan as of the date of determination. 

 Notwithstanding the preceding provisions of this Section 3.01, in the event a retired or terminated Member’s benefit calculated under the
Retirement Income Plan is increased for any reason after the Member’s supplemental benefit payments have commenced in an annuity form, the amount of any supplemental benefits payable to or on account of such Member under this Plan shall be
reduced correspondingly on a prospective basis, and in the event such increase is 

  

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made retroactively resulting in the overpayments of any or all of the Member’s supplemental benefits, future benefit payments under this Plan shall be
reduced to reflect such prior overpayments in any manner determined by the Committee, in its discretion, and applied on a consistent basis to all similarly situated Members, until an amount equal to the total overpayments in the Member’s
supplemental benefit payments are recovered. 
  

	 	3.02. 	Subject to the following rules, an employee of the Company who becomes a Member under this Plan in accordance with Section 2.02 shall elect in writing the form and timing of
payment of the supplemental benefits payable on behalf of such Member under this Plan within the thirty (30) day period following the Committee’s determination that such employee has become a Member. 

  

	 	(a)	The Member may elect to have his supplemental benefits paid in the form of any annuity that is offered under the Retirement Income Plan (other than a level income life annuity or a
level income joint and survivor annuity). Effective January 1, 2005, a Member may initially elect to have his benefit paid in the form of a “life annuity” and then, immediately prior to commencement of payment, elect the specific form
of actuarially equivalent life annuity among those offered under the Retirement Income Plan. 

  

	 	(b)	In no event shall the Member elect to have his supplemental benefits commence or be paid earlier than the later of: (i) the Member’s attainment of age 55, or (ii) the
date the Member first becomes eligible to receive his benefits under the Retirement Income Plan and in no event shall the Member elect to have his supplemental benefits commence or be paid later than the Member’s attainment of age 65 or, if
later, his actual retirement from the Company. 

 In no event shall the Member elect to have his supplemental benefits commence
to be paid later than April 1 of the calendar year following the later of (x) the calendar year in which the Member attains age 70 1/2, or (y) the calendar year in which the Member terminates employment. 
  

	 	(c)	In the event the Member fails to affirmatively elect the form and timing of payment of his supplemental benefits hereunder, the Member shall be deemed to have elected to have his
supplemental benefits paid in the form and at the time that his benefits are paid under the Retirement Income Plan. Effective January 1, 2009, in the event the Member fails to affirmatively elect the form and timing of payment of his
supplemental benefits hereunder, the Member shall be deemed to have elected to have his supplemental benefits paid in the form of a life annuity and at the later of the Member’s attainment of age 55 or termination of employment.

  

	 	(d)	 Notwithstanding any other provision of the Plan to the contrary, in the event the Member elects to receive a period certain annuity or joint and survivor annuity
and either the beneficiary designated by the Member dies prior to the 

  

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date the Member commences receiving his supplemental benefits or the Member designates his spouse as his beneficiary and the Member is not legally married to
such spouse immediately preceding the date the Member commences receiving his supplemental benefits, the Member’s election to receive such period certain annuity or joint and survivor annuity shall automatically be converted to an election to
receive a single life annuity. 

  

	 	3.03. 	Notwithstanding the provisions of Section 3.02, a Member who has not commenced receiving payment of his supplemental benefits may request in writing to the Committee to amend
the commencement date of his supplemental benefits elected by the Member under Section 3.02, in accordance with the following rules: 

  

	 	(a)	A Member who has not commenced receiving payment of his supplemental benefits may request to amend the timing and/or form of payment of the supplemental benefits (subject to the
limitations of Section 3.02(a)) provided: (i) the commencement date in the absence of such distribution election amendment is not within twelve (12) months of the date of the amendment; (ii) his amended commencement date is at
least twelve (12) months (five (5) years for election amendments made on or after January 1, 2009) after the date of the distribution election amendment; and (iii) his amended commencement date is otherwise in conformance with
the provisions of Section 3.02(b). Notwithstanding the foregoing, during calendar year 2007, a Member who has not yet commenced receiving payment of his supplemental benefits may request in writing to the Committee to amend the timing and/or
form of payment (subject to the limitations of Section 3.02(a)) provided the amendment shall only apply to amounts that would not otherwise be payable in 2007 and shall not cause an amount to be paid in 2007 that would not otherwise be payable
in 2007. Notwithstanding the foregoing, during calendar year 2008, a Member who has not yet commenced receiving payment of his supplemental benefits may request in writing to the Committee to amend the timing and/or form of payment (subject to the
limitations of Section 3.02(a)) provided the amendment shall only apply to amounts that would not otherwise be payable in 2008 and shall not cause an amount to be paid in 2008 that would not otherwise be payable in 2008.

  

	 	3.04. 	 Notwithstanding the provisions of Section 3.01 and Section 3.02, supplemental benefits shall be payable under this Plan to or on account of a Member
described in Section 2.02(d) who: (i) is involuntarily terminated after completing one year of service but prior to becoming vested in the Retirement Income Plan, and (ii) receives severance pay benefits under the Severance Pay Plan
for Salaried Employees of Armstrong World Industries, Inc. or any individual severance agreement. The Member’s supplemental benefits will be calculated using the guaranteed pension schedule for Salaried Employees of Armstrong World Industries,
Inc. under the Retirement Income Plan multiplied by the total years of service credited for employment prior to his Company employment, as 

  

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determined in Section 2.02(d) and his years of Company employment and shall be payable in the form of a single life annuity commencing as of the later
of the Member’s attainment of age 62 or the Member’s termination date. 

  

	 	3.05. 	If a Member is restored to employment with the Company after having retired, any monthly payments under the Plan shall be discontinued and, upon subsequent retirement or termination
of employment with the Company, the Member’s benefits under the Plan shall be recomputed in accordance with Section 3.01 and shall again become payable to such Member in accordance with the provisions of the Plan, including his election
under Section 3.02. 

  

	 	3.06. 	In the event the dollar amount of the maximum benefit under the Retirement Income Plan pursuant to Section 415 of the Internal Revenue Code increases because of adjustments in
the cost of living, the supplemental benefits of any Member payable under the Plan, whether or not in pay status, shall be recalculated to take into account the higher maximum benefit payable from the Retirement Income Plan. If payments have already
commenced under the Retirement Income Plan and this Plan, benefit amounts under both plans shall be adjusted to reflect the higher maximum benefit, by increasing the amount paid under the Retirement Income Plan and decreasing the amount paid under
this Plan, as soon as administratively possible after such a change. Notwithstanding the above, if the Retirement Income Plan is terminated, no adjustments shall be made to benefits payable under this Plan with respect to changes in the maximum
benefit after the date of such termination. 

  

	 	 3.07 
	 In the event a Member dies after becoming vested under the Retirement Income Plan but prior to the date his supplemental
benefits under this Plan are scheduled to commence or be paid, a spouse’s benefit shall be payable to the Member’s surviving spouse. The spouse’s benefit shall be paid to the Member’s surviving spouse in a life annuity, beginning
as of the first day of the month immediately following the date of the Member’s death or, if later, the date the Member would have attained age 55 if he had lived, under which each payment shall equal one-half ( 1
/2) of the amount that would have been payable to the Member under Section 3.01 if the Member had elected a single life annuity under Section 3.02
with payments commencing as of the same date as the spouse’s benefit. 

  

	 	3.08. 	Effective as of March 1, 2004, all rights and / or obligations of the Company to honor single-sum withdrawal requests shall be terminated. 

  

	 	3.09. 	 Effective January 1, 2005, notwithstanding any provision of this Plan to the contrary, if the Member is considered a Specified Employee at termination of
employment under such procedures as established by the Company in accordance with Section 409A of the Internal Revenue Code, benefit distributions that are made by reason of termination of employment may not commence earlier than six
(6) months after the date of such termination of employment. Therefore, in the event this Section 3.09 is applicable to a Member, any distribution that would otherwise be paid to the Member within the first six months following the 

  

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termination of employment shall be accumulated and paid to the Participant in a lump sum (payable with interest determined based upon the short-term
applicable federal rate (AFR) for purposes of Section 1274(d) of the Internal Revenue Code for the November preceding the calendar year of the termination of employment) on the first day of the seventh month following the termination of
employment. All subsequent distributions shall be paid in the manner specified. 

  

	 	3.10. 	Notwithstanding any other provision of the Plan to the contrary, a Member may request at any time to receive a lump sum distribution of a portion of his supplemental benefit due to
an “Unforeseeable Emergency” as follows: 

  

	 	(a)	“Unforeseeable Emergency” shall mean any severe financial hardship to the Member resulting from an illness or accident of the Member or his spouse or dependent (as defined
in Section 152 of the Internal Revenue Code, without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B) thereof), loss of the Member’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Member. 

  

	 	(b)	Any distribution pursuant to this provision is limited to the amount necessary to meet the emergency, and any amounts necessary to pay any federal, state, local or foreign income
taxes or penalties reasonably anticipated to result from such distribution. 

  

	 	(c)	The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case, but, in any case, payment may not be made to the extent that such hardship
is or may be relieved (i) through reimbursement or compensation by insurance or otherwise or (ii) by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial
hardship. 

  

	 	(d)	If the Committee determines that a Participant has demonstrated an Unforeseeable Emergency, the determination to make a distribution pursuant to this Section 3.10 remains in
the sole discretion of the Committee. 

  

	 	(e)	Any distribution due to an Unforeseeable Emergency shall be made by determining the Actuarial Equivalent Present Value of the Member’s supplemental benefits and a lump sum
distribution shall not be in excess of such Actuarial Equivalent Present Value. In the event the distribution is less than the Actuarial Equivalent Present Value, the Actuarial Equivalent Present value of the Member’s supplemental benefits
shall then be reduced in accordance with Section 3.01(d). 

 Article 4. Administration 
  

	 	4.01. 	 The administration of the Plan and the responsibility for carrying out its provisions are vested in a Retirement Committee which shall be composed of the members of
the Retirement Committee provided for under Article IX of the 

  

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Retirement Income Plan. The provisions of Article IX of the Retirement Income Plan concerning powers of the Committee shall apply under this Plan. The
Retirement Committee shall have the full and exclusive discretion and authority to interpret the Plan and to determine all benefits and to resolve all questions arising from the administration, interpretation, and application of Plan provisions,
either by general rules or by particular decisions, including determinations as to whether a claimant is eligible for benefits, the amount, form and timing of benefits, and any other matter (including any question of fact) raised by a claimant or
identified by the Retirement Committee. All decisions of the Committee shall be conclusive and binding upon all affected persons. The expenses of the Committee shall be paid directly by the Company. 

 Article 5. General Provisions 
  

	 	5.01. 	The establishment of the Plan shall not be construed as conferring any legal rights upon any person for a continuation of employment, nor shall it interfere with the rights of the
Company to discharge any employee and to treat him without regard to the effect which such treatment might have upon him as a Member of the Plan. No legal or beneficial interest in any of the Company’s assets is intended to be conferred by the
terms of the Plan. 

  

	 	5.02. 	In the event that the Committee shall find that a Member or other person entitled to benefits hereunder is unable to care for his affairs because of illness or accident, the
Committee may direct that any benefit payment due him, unless claim shall have been made therefor by a duly appointed legal representative, be paid to his spouse, a child, a parent or other blood relative, or to a person with whom he resides, and
any such payment so made shall be a complete discharge of the liabilities of the Company and the Plan therefor. 

  

	 	5.03. 	The Company shall have the right to deduct from each payment to be made under the Plan any required withholding taxes. 

  

	 	5.04. 	Subject to any applicable law, no benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, any
attempt so to do shall be void, nor shall any such benefit be in any manner liable for or subject to garnishment, attachment, execution or levy, or liable for or subject to the debts, contracts, liabilities, engagements or torts of the Member. In
the event that the Committee shall find that any Member or other person entitled to benefits hereunder has become bankrupt or has made any such attempt with respect to any such benefit, such benefit shall cease and terminate, and in that event the
Board shall hold or apply the same to or for the benefit of such Member or other person entitled to benefits. 

  

	 	5.05. 	 (a) In the event that a Member (i) is discharged for willful, deliberate, or gross misconduct as determined by the Board of Directors or a duly constituted
committee thereof; or (ii) if following the Member’s termination of employment with the Company and, within a period of three years thereafter, 

  

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the Member engages in any business or enters into any employment which the Board of Directors or a duly constituted committee thereof determines to be either
directly or indirectly competitive with the business of the Company or substantially injurious to the Company’s financial interest (the occurrence of an event described in (i) or (ii) shall be referred to as “Injurious
Conduct”), all benefits which would otherwise be payable to him under the Plan shall be forfeited. Further, the Board of Directors or a duly constituted committee thereof, in its discretion, may require the Member who has engaged in Injurious
Conduct to return any amounts previously received by the Member, provided the right to require repayment under this subsection (a) must be exercised within ninety (90) days after the Board (or committee, as the case may be) first learns of
the Injurious Conduct, but in no event later than twenty-four (24) months after the Member’s termination of employment with the Company. A Member may request the Board of Directors or a duly constituted committee thereof, in writing, to
determine whether any proposed business or employment activity would constitute Injurious Conduct. Such a request shall fully describe the proposed activity and the Board’s (or the committee’s, as the case may be) determination shall be
limited to the specific activity so described. 

  

	 	(b)	Notwithstanding the foregoing, benefits shall not cease or be forfeited or be required to be repaid merely because the Member (1) owns publicly traded shares of stock of a
corporation which competes with the Company, or (2)(a) acts as a consultant for, (b) has an investment in, or (c) is a Board member of a business where after the Member notifies the Company in writing in advance of his potential
involvement under (2)(a), (b) or (c), the Company’s Board of Directors or a duly constituted committee thereof determines that the Member will not be in violation of the Company’s Conflicts of Interest policy, or (3) becomes
associated with a business which competes with the Company within two years following a “Change in Control” and is eligible for benefits under any individual severance agreement. 

  

	 	5.06. 	The Plan shall be constructed, regulated and administered under the laws of the Commonwealth of Pennsylvania. 

  

	 	5.07. 	The masculine pronoun shall mean the feminine wherever appropriate. 

  

	 	5.08. 	 The Board of Directors may, through written resolutions adopted by the Board of Directors, amend or discontinue the Retirement Benefit Equity Plan at any time;
provided, however, that if the Plan is amended to discontinue or reduce the amount of supplemental benefit payments (except as may be required pursuant to any plan arising from insolvency or bankruptcy proceedings) (a) any Member who is being
paid his supplemental benefits immediately prior to the effective date of the amendment shall continue to be paid his supplemental benefits in the amount and manner (as provided under Article 3 hereof) as they were being paid at the time of
such amendment, and (b) any Member who is not being paid his supplemental benefits immediately prior to the effective date of the amendment 

  

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shall be entitled to receive (i) the supplemental benefits accrued by such Member as of the effective date of the amendment, with such supplemental
benefits being paid at the time elected by the Member under Section 3.02, and (ii) any legal fees and related expenses incurred by the Member in receiving such supplemental benefits (as permitted under Section 5.09(e)) and interest
under Section 5.09(f) (to the extent applicable). Notwithstanding the preceding sentence, any written employment agreement between the Executive Committee and any Member described in clause (b) of the preceding sentence shall govern to the
extent such agreement either amends or discontinues the Member’s supplemental benefits under the Plan, and Section 5.05 shall govern to the extent any Member engages in Injurious Conduct as defined under that section.

  

	 	5.09. 	(a) Any person claiming a benefit, requesting an interpretation or ruling under the Plan, or requesting information under the Plan shall present the request in writing to the
Committee which shall respond in writing as soon as practicable. 

  

	 	(b)	If the claim or request is denied, the written notice of denial shall state: 

  

	 	(i)	The reasons for denial, with specific reference to the Plan provisions on which the denial is based. 

  

	 	(ii)	A description of any additional material or information required and an explanation of why it is necessary. 

  

	 	(iii)	An explanation of the Plan’s claim review procedure. 

  

	 	(c)	Any person whose claim or request is denied or who has not received a response within thirty (30) days may request review by notice given in writing to the Committee. The claim
or request shall be reviewed by the Committee who may, but shall not be required to, grant the claimant a hearing. On review, the claimant may have representation, examine pertinent documents, and submit issues and comments in writing.

  

	 	(d)	The decision on review shall normally be made within sixty (60) days. If an extension of time is required for a hearing or other special circumstances, the claimant shall be
notified and the time limit shall be one hundred twenty (120) days. The decision shall be in writing and shall state the reasons and the relevant Plan provisions. All decisions on review shall be final and bind all parties concerned.

  

	 	(e)	 In the event a Member’s claim for supplemental benefits under this Plan is denied and the Member successfully appeals the denial of such claim under the
foregoing procedures, the Company shall pay or reimburse the legal fees and expenses directly incurred by the Member in connection with his appeal subject to a maximum payment or reimbursement of one-third of the Actuarial Equivalent Present Value
of the supplemental benefits to which the Member is entitled. For purposes of the preceding sentence, actuarial 

  

 12 

	 	 
equivalence shall be determined using the actuarial assumptions and factors reasonably utilized under the Retirement Income Plan as of the date of
determination. Any such legal fees and expenses shall be paid by the Company to, or on behalf of, the Member no later than thirty (30) days following the Member’s written request for the payment of such legal fees and expenses, provided
the Member supplies the Committee with evidence of the fees and expenses incurred by the Member that the Committee, in its sole discretion, determines is sufficient. 

  

	 	(f)	Further, in the event a Member’s claim for supplemental benefits under this Plan is denied and the Member successfully appeals the denial of such claim under the foregoing
procedures, the Company shall pay to the Member interest on the portion of the Member’s supplemental benefits that were not otherwise paid when due because of the initial denial of the claim. For purposes of the preceding sentence, interest
shall accrue at an annual rate equal to the prime rate as quoted in the Wall Street Journal as of the date the supplemental benefits would otherwise have been paid if the claim had not initially been denied, plus five percent (5%), and shall be
adjusted as necessary to reflect any partial payment or payments of the amounts owed to the Member. 

  

 13Bonus Replacement Retirement Plan

 Exhibit 10.9 
 BONUS REPLACEMENT RETIREMENT PLAN 
 OF ARMSTRONG WORLD INDUSTRIES, INC. 
 As Amended and Restated 
 Effective
January 1, 2007 

 BONUS REPLACEMENT RETIREMENT PLAN 
 OF ARMSTRONG WORLD INDUSTRIES, INC. 
 Foreword 
 Effective January 1, 1998, Armstrong World Industries, Inc. adopted the Bonus Replacement Retirement Plan of Armstrong World Industries, Inc. (the
“Plan”) for the benefit of certain of its employees. 
 The Plan hereinafter set forth has been approved by the Board of Directors
of Armstrong World Industries, Inc. and is intended to conform to the requirements of the Employee Retirement Income Security Act of 1974, as amended, and to qualify as a profit sharing plan under Section 401(a) of the Internal Revenue Code of
1986, as amended, or any other applicable sections thereof. 
 Since January 1, 1998, the Plan was amended as follows: 
  

	 	•	 	 The Plan was amended in December of 2002, but effective January 1, 1998, in response to IRS comments to include specific changes to the definition of
compensation used in applying the limitations of Article XI, and to add language addressing the treatment of military service. 

  

	 	•	 	 Effective as of January 1, 2003, Armstrong Wood Products, Inc. (including its divisions AFP Wood Flooring and Armstrong Cabinet Products) was designated as a
Participating Company and coverage was extended to include certain employees of AFP Wood Flooring and Armstrong Cabinet Products Divisions of Armstrong Wood Products, Inc. In addition, effective January 1, 2003, the Asset Manager Funds were
removed from the Plan and the Fidelity Equity Income Fund, the Fidelity Intermediate Bond Fund, and the Fidelity Freedom Funds substituted in lieu thereof. 

 Effective January 1, 2003, the Plan was amended and restated to incorporate amendments adopted since the last restatement of the Plan. Since
January 1, 2003, the Plan was amended from time to time to make various design and statutory changes, including the following: 
  

	 	•	 	 Effective March 1, 2005, the Plan was amended to remove the Money Market Fund as an available investment alternative. 

  

	 	•	 	 Effective January 1, 2007, the Plan was amended to remove the existing vesting schedule and 100% vest all contributions made to the Plan and to modify the
default investment under the plan to be a target retirement Balanced Fund. 

 Unless a different date is specified in the
Plan, a Plan amendment or in resolutions of the Retirement Committee or the Board of Directors of the Company, the Plan is hereby amended and restated effective as of January 1, 2007 to incorporate previous amendments to the Plan, with the
intent that the amended and restated Plan shall be submitted to the Internal 

 
Revenue Service for an advance determination that the Plan continues to be qualified under Code Section 401(a). However, any Plan provision necessary to
comply with the requirements of federal legislation or regulations, which requirements have an earlier required effective date, shall be effective retroactively to the date required by the applicable law or regulation. In any case where a provision
of the Plan has an effective date later than January 1, 2007, the language of the Plan as in effect immediately prior to this restatement shall continue to apply until such later effective date. 
 The rights to benefits of any eligible employee whose employment terminates prior to the effective date of any amendment to the Plan, and the rights of
the Beneficiary of such eligible employee, shall be determined solely by the provisions of the Plan under which such eligible employee is covered, if any, as in effect at the time of such termination of employment, unless otherwise specifically
provided herein. 

 BONUS REPLACEMENT RETIREMENT PLAN 
 OF ARMSTRONG WORLD INDUSTRIES, INC. 
 Table of Contents 

 

					
	 	  	 	  	Page No.
	 ARTICLE I Definitions
	  	1
		
	 ARTICLE II Eligibility, Membership, and Beneficiary Designation
	  	4
			
	 2.1
	  	Eligibility	  	4
	 2.2
	  	Suspension of Membership due to Transfer to Non-Covered Employment	  	4
	 2.3
	  	Beneficiary Designation	  	4
		
	 ARTICLE III Company Contributions
	  	6
			
	 3.1
	  	Company Contributions	  	6
	 3.2
	  	Return of Contributions	  	6
	 3.3
	  	Vesting of Member’s Account and Forfeitures	  	7
		
	 ARTICLE IV Investment of Contributions
	  	8
			
	 4.1
	  	Investment Funds	  	8
	 4.2
	  	Investment Elections	  	9
	 4.3
	  	Change in Investment Options	  	9
	 4.4
	  	Transfer Between Funds	  	9
	 4.5
	  	Investment Options	  	10
	 4.6
	  	Voting Rights; Offer to Purchase Stock	  	10
	 4.7
	  	Limitations	  	11
		
	 ARTICLE V Valuation of a Member’s Account
	  	12
		
	 ARTICLE VI Distributions
	  	13
			
	 6.1
	  	Distributions on Termination of Employment Other than by Reason of a Member’s Death	  	13
	 6.2
	  	Distribution Upon a Member’s Death	  	13
	 6.3
	  	Lost Members or Beneficiaries	  	14
	 6.4
	  	Required Distributions	  	14
	 6.5
	  	Direct Rollover Distributions	  	15
	 6.6
	  	Distributions on Sales of Businesses	  	15
	 6.7
	  	Payments to Minors and Incompetents	  	16
		
	 ARTICLE VII Management of Funds
	  	17
			
	 7.1
	  	General Responsibilities	  	17
	 7.2
	  	Funding Agreements	  	17
	 7.3
	  	Investment Managers	  	17
		
	 ARTICLE VIII Administration of the Plan
	  	18
			
	 8.1
	  	The Committee	  	18

					
	 8.2
	  	Duties of the Committee	  	18
	 8.3
	  	Meetings	  	18
	 8.4
	  	Action by Majority	  	18
	 8.5
	  	Compensation	  	18
	 8.6
	  	Establishment of Rules	  	18
	 8.7
	  	Prudent Conduct	  	18
	 8.8
	  	Indemnification	  	19
		
	 ARTICLE IX Amendment and Termination
	  	20
		
	 ARTICLE X General Provisions
	  	21
			
	 10.1
	  	Expenses	  	21
	 10.2
	  	Source of Payment	  	21
	 10.3
	  	No Right of Employment	  	21
	 10.4
	  	Non-Alienation of Benefits	  	21
	 10.5
	  	Qualified Domestic Relations Orders	  	21
	 10.6
	  	Invalidity of Provisions	  	22
	 10.7
	  	Failure to Initially Qualify Plan	  	22
	 10.8
	  	Adoption of Plan by Subsidiary, Affiliated or Associated Company	  	22
	 10.9
	  	Mergers and Transfers	  	22
	 10.10
	  	Compliance with Securities Laws	  	22
	 10.11
	  	Governing Law	  	22
	 10.12
	  	Trust-to-Trust Transfers	  	22
	 10.13
	  	Construction	  	23
	 10.14
	  	Nondiscrimination Testing	  	23
	 10.15
	  	Military Service	  	23
		
	 ARTICLE XI Contribution Limitations
	  	24
			
	 11.1
	  	Annual Addition Limitation	  	24
	 11.2
	  	Top-Heavy Provisions	  	25

  

 ARTICLE I 
 Definitions 
 As used herein, unless otherwise defined or required by the context, the
following words and phrases shall have the meanings indicated. Some of the words and phrases used in the Plan are not defined in this Article I, but, for convenience, are defined as they are introduced into the text. 
 1.1 Account” means the Member’s account into which shall be credited the amounts in the Investment Funds attributable to contributions made by
the Company on the Member’s behalf pursuant to Section 3.1. 
 1.2 “Affiliated Company” means any company which is
related to the Company as a member of a controlled group of corporations in accordance with Section 414(b) of the Code, or as a trade or business under common control in accordance with Section 414(c) of the Code, or any other entity to
the extent it is required to be treated as an Affiliated Company in accordance with Section 414(o) of the Code and any regulations thereunder, or any organization which is part of an affiliated service group in accordance with
Section 414(m) of the Code. For the purposes under the Plan of determining whether or not a person is an employee and the period of employment of such person, each such company shall be considered an Affiliated Company only for such period or
periods during which such other company is a member of the controlled group or under common control. 
 1.3 “Beneficiary” means
such beneficiary as may be designated pursuant to Section 2.3. 
 1.4 “Board of Directors” means the Board of Directors of the
Company. 
 1.5 “Code” means the Internal Revenue Code of 1986, as amended. 
 1.6 “Committee” means the committee appointed in accordance with Section 8.1. 
 1.7 “Company” means Armstrong World Industries, Inc., a Pennsylvania corporation, or any successor by merger, purchase or otherwise with
respect to its employees. 
 1.8 “Company Contributions” mean those contributions made by the Company under Section 3.1.

 1.9 “Continuous Employment” means, subject to all of the provisions set forth herein, service with the Company or one or more
Affiliated Companies, including successive service with two or more Affiliated Companies. 
 (a) Notwithstanding the
foregoing, periods while on an uncompensated leave of absence or an uncompensated layoff shall be disregarded in the determination of an Employee’s Continuous Employment. 
  

 1 

 (b) Continuous Employment shall be deemed terminated on the earliest of the following
events: 
 (1) Death, retirement, resignation, or quit by the Employee; 
 (2) Discharge; 
 (3) Failure to return to work on: 
 (i) Expiration of approved leave of absence; 
 (ii) Recall after layoff; 
 (iii) Expiration of reemployment rights protected by law; or 
 (4) Elapse of 12 months
following layoff without recall. 
 1.10 “Effective Date” means January 1, 1998, or such later date as of which the Plan is
made applicable in accordance with Section 10.8. 
 1.11 “Employee” means a person in the employ of the Company or an
Affiliated Company. The term “Employee” shall exclude any person who is (i) a leased employee, (ii) a member of a bargaining unit, and (iii) a foreign national or citizen of a territorial possession of the United States of
America whose employment relationship or contract of employment originates at, and whose services are performed solely for and at, a branch facility of the Company outside the United States. The term “leased employee” shall mean any person
(other than an Employee of the Company or an Affiliated Company) who pursuant to an agreement between the Company or Affiliated Company and any other person (“leasing organization”) has performed services for the Company or an Affiliated
Company on a substantially full-time basis for a period of at least one year, and such services are performed under the primary direction or control by the Company or an Affiliated Company. A leased employee shall not be considered an Employee of
the Company or an Affiliated Company if: (i) such individual is covered by a money purchase pension plan providing (1) an employer contribution of 10% of compensation as defined under Section 11.1, (2) immediate participation,
and (3) full and immediate vesting; and (ii) leased employees do not constitute more than 20% of the Company’s nonhighly compensated workforce. 
 1.12 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 1.13
“Fund” or “Investment Fund” means any of the separate funds in which contributions to the Plan are invested in accordance with Article IV. 
 1.14 “Insurance Company” means the insurance company which issues a contact, and any successor insurance company thereto. 
 1.15 “Insurance Contract” means a contract issued by an Insurance Company to fund benefits under the Plan, and any successor contract thereto. 
  

 2 

 1.16 “Investing Institution” means a Trustee, or Insurance Company, mutual fund or investment
manager which is designated by the Committee, by Trust Agreement or Insurance Contract, to manage the Funds. 
 1.17 “Member” means
any Employee who becomes a Member of this Plan as provided in Section 2.1. 
 1.18 “Named Fiduciary” means the Board of
Directors, the Committee, and the Trustee. 
 1.19 “Participating Company” means the Company or any other Affiliated Company
approved by the Committee. 
 1.20 “Plan” means the Bonus Replacement Retirement Plan of Armstrong World Industries, Inc. , as
described herein. 
 1.21 “Plan Year” means the 12-month period beginning on January 1 and ending on the following
December 31. 
 1.22 “Trust Agreement” means the agreement entered into between the Company and the Trustee to fund benefits
under the Plan. 
 1.23 “Trust Fund” means the cash and other properties arising from contributions made by the Company in
accordance with the provisions of this Plan and held and administered by the Trustee pursuant to the Trust Agreement. 
 1.24
“Trustee” means any bank or trust company designated by the Board of Directors under a trust agreement to receive Company Contributions made in accordance with Section 3.1. 
 1.25 “Valuation Date” means the date or dates, as applicable, on which the Trust Fund is valued in accordance with Article V. 

 

 3 

 ARTICLE II 
 Eligibility, Membership, and Beneficiary Designation 
 2.1 Eligibility. Each Employee
of a Participating Company who, on the first day of the Plan Year, is (1) at a grade level of 18 or more on the Participating Company’s organizational management system, and (2) eligible to participate in the Company’s Management
Achievement Plan shall become a Member on the later of (A) the Effective Date of the Plan, or (B) the date the Employee first satisfies the criteria for Plan eligibility. An Employee who has transferred from the employment of a foreign
subsidiary of the Company to the employment of a Participating Company and who is accruing benefits under a retirement program maintained by such foreign subsidiary shall not become a Member of the Plan until the earliest of the date on which:

 (a) He becomes a United States citizen; 
 (b) He is granted permanent resident alien status under the laws of the United States; or 
 (c) He ceases to accrue benefits under such foreign subsidiary retirement program. 
 2.2 Suspension of Membership due to Transfer to Non-Covered Employment. If, in any Plan Year, a Member is not in a category of employment
described in Section 2.1 above as of the last day of such Plan Year, but continues in the employment of the Company or an Affiliated Company, he shall be a suspended Member for the entire such Plan Year subject to the following conditions:

 (a) During the period of his suspension, the Member shall not be entitled to share in any allocations of Company
Contributions. If during the period of his suspension his employment terminates or he retires or dies, there shall be a distribution of his Account in accordance with Article VI. 
 (b) If and when a suspended Member again becomes employed by the Company at a grade level of 18 or above, he shall again be an active
Member as of that date and may share in any allocations of Company Contributions (in accordance with the terms of the Plan). 
 2.3
Beneficiary Designation. Subject to the rules set forth below with respect to married Members, each Member has the right to name a Beneficiary to receive any death benefits payable hereunder. Each Member also has the right, from time to time,
to change any designation of Beneficiary. A designation or change of Beneficiary must be in writing on forms supplied by the Committee and any change of Beneficiary will not become effective until such change of Beneficiary is filed with the
Committee or its designee whether or not the Member is alive at the time of such filing; provided, however, that any such change will not be effective with respect to any payments made by the Trustee in accordance with the Member’s last
designation and prior to the time such change was received by the Committee or its designee. In the case of any Member who is married on the date of his death, the Member’s spouse as of his 

  

 4 

 
date of death shall be his Beneficiary unless such spouse shall have consented to a different Beneficiary on prescribed forms and before either a notary
public or an individual designated by the Committee. Such spousal consent must acknowledge the effect of the Beneficiary designation. In the absence of an effective Beneficiary designation or if a named Beneficiary shall have died and no contingent
Beneficiary shall have been properly designated, the first of the following classes of successive preference beneficiaries shall be the Beneficiary: 
 (a) the Member’s surviving spouse; 
 (b) the Member’s surviving children;

 (c) the estate of the Member. 
 Any individual who is designated as an alternate payee under a “qualified domestic relations order” (as defined in Code Section 414(p)) relating to a Member’s Account under this Plan shall be treated as a Beneficiary
hereunder, to the extent provided by such order. The Committee may require and rely upon such proof of death and such evidence of the right of any Beneficiary or other person to receive the undistributed value of a deceased Member’s Account as
the Committee may deem proper, and its determination of death and of the right of such Beneficiary or other person to receive payment shall be conclusive. 
  

 5 

 ARTICLE III 
 Company Contributions 
 3.1 Company Contributions. The Company may contribute to the
Plan the amounts necessary to make the following allocations. 
 (a) Allocations - Company Contributions for a Plan Year shall
be allocated to the Accounts of Members who are employed in a category described in Section 2.1 on the last day of such Plan Year in accordance with the following: 
 (1) If a Member’s employment grade is at least grade 18 but not more than grade 19 under the Company’s organizational
management system as of January 1 of the Plan Year, the Company Contributions allocated on behalf of such Member for the Plan Year shall be equal to the lesser of (i) 50% of the actual “gross bonus” (as such term is defined under
the Company’s Management Achievement Plan) awarded to the Employee under the Company’s Management Achievement Plan with respect to services performed by the Member for the Company for the calendar year coinciding with such Plan Year, or
(ii) $7,500. 
 (2) If a Member’s employment grade is at least grade 20 but not more than grade 21 under
the Company’s organizational management system as of January 1 of the Plan Year, the Company Contributions allocated on behalf of such Member for the Plan Year shall be equal to the lesser of (i) 50% of the actual “gross
bonus” awarded to the Employee under the Company’s Management Achievement Plan with respect to services performed by the Member for the Company for the calendar year coinciding with such Plan Year, or (ii) $15,000. 
 (3) If a Member’s employment grade is at least grade 22 under the Company’s organizational management system as of
January 1 of the Plan Year, the Company Contributions allocated on behalf of such Member for the Plan Year shall be equal to the lesser of (i) 50% of the actual “gross bonus” awarded to the Employee under the Company’s
Management Achievement Plan with respect to services performed by the Member for the Company for the calendar year coinciding with such Plan Year, or (ii) $20,000. 
 3.2 Return of Contributions. All Company Contributions are conditioned on their being allowed as a deduction for federal income tax purposes. Notwithstanding any provision of the Plan to the contrary, Company
Contributions made to the Plan may be returned to the Company if: 
 (a) the contribution is made by reason of mistake of
fact; or 
 (b) the contribution is conditioned on its deductibility under Code Section 404 and such deductibility is
denied; 
 provided such return of contribution is made within one year of the mistaken payment of the contribution or the disallowance of the deduction, as
the case may be. A contribution shall be considered to be made by reason of a mistake of fact if, for example, it is based on incorrect information as to eligibility or compensation of an Employee, a mathematical error or an erroneous belief that
such contribution is consistent with the limitations of Section 11.1. So 

  

 6 

 
much of the contribution as is attributable to the mistake of fact shall be repaid by the Trustee upon demand by the Company upon presentation of evidence of
the mistake of fact and calculation as to the impact of the mistake. 
 3.3 Vesting of Member’s Account and Forfeitures. A Member
shall have a vested and nonforfeitable interest in his Account immediately upon becoming a Member. 
  

 7 

 ARTICLE IV 
 Investment of Contributions 
 4.1 Investment Funds. Contributions to the Plan shall be
invested by the Investing Institution in one or more of the following Investment Funds in accordance with Section 4.2: 
 (a) “Equity Investment Fund” is one or more diversified equity funds, as may be available from time to time, invested in equity securities or securities convertible into equity securities or in a commingled equity trust for the
collective investment of funds of employee benefit plans qualified under Section 401(a) of the Code (or corresponding provisions of any subsequent Federal revenue law at the time in effect), excluding, however, any stocks or other securities of
the Investing Institution. This exclusion shall not apply to any investment in a commingled trust or Insurance Company account not proscribed by applicable law. Pending the selection and purchase of suitable investments for this Fund, any part of
this Fund may be invested in short-term and medium-term fixed income securities, such as commercial paper, notes of finance companies, and obligations of the U.S. Government and any agency or instrumentality thereof. 
 (b) “Stable Value Fund” is one or more stable value funds, as may be available from time to time, invested in investment
contracts issued by insurance companies and other financial institutions, fixed income securities such as U.S. Treasury and agency bonds, corporate bonds, mortgage-backed securities, asset-backed securities and bond funds, futures contracts, option
contracts and swap agreements, and money market funds and other short term investments to provide daily liquidity, and may also include investment in any commingled trust fund qualified under Section 401(a) of the Code (or corresponding
provisions of any subsequent Federal revenue law at the time in effect), which is invested primarily in similar types of securities. 
 (c) “Company Stock Fund” is a fund designed solely to invest in the common stock of Armstrong Holdings, Inc. or to hold the common stock of Armstrong Holdings, Inc. contributed to the Plan by the Company. Up to 100% of the assets
of the Plan may be invested in the Company Stock Fund. As of May 1, 2000, each share of Company Stock held by the Plan will be converted into a share of common stock of Armstrong Holdings, Inc. Thereafter, any reference to “Company
Stock” or “Company common stock” in the Plan shall refer to the common stock of Armstrong Holdings, Inc. Notwithstanding the foregoing, beginning January 1, 2001, the Company Stock Fund shall not be available as an Investment
Fund with respect to investment elections under Section 4.1, changes in investment options under Section 4.2, and transfers between Investment Funds under Section 4.4. 
 (d) “Balanced Fund” is one or more balanced funds, as may be available from time to time, that invest in a mixture of bonds,
equities, and short-term instruments, as determined by the Fund manager. 
 Any such common, collective or commingled trust funds referred to in connection
with the Funds referred to in Subsections 4.1(a), 4.1(b), or 4.1(d) shall satisfy such requirements of 

  

 8 

 
ERISA governing the establishment of such funds for the investment of assets of employee benefit plans qualified under Section 401(a) and exempt under
Section 501(a) of the Code whereupon the instrument or instruments establishing such common, collective or commingled trust funds, as amended from time to time, shall constitute a part of this Plan and the Trust Agreement with respect to any
assets of the Investment Fund(s) which are at the time invested in such funds. Any portion of an Investment Fund may, pending permanent investment or distribution, be invested in short term securities issued or guaranteed by the United States of
America or any agency or instrumentality thereof or any other investments of a short term nature, including corporate obligations or participation’s therein or through the medium of any common, collective or commingled trust fund maintained by
the Trustee which is invested principally in property of the kind specified in this Section. A portion of an Investment Fund may be maintained in cash. 
 4.2 Investment Elections. Company Contributions made on a Member’s behalf under Section 3.1 will be invested in multiples of 1%, in any one or more of the Investment Funds (other than the Company
Stock Fund, with respect to Company Contributions made on and after January 1, 2001), as elected by the Member in accordance with such uniform rules as the Committee may adopt from time to time. If Company Contributions are made prior to the
time that a Member has made an election under this Section 4.2, such Company Contributions shall be invested in the Balanced Fund until such investment election is received. Any Company Contributions that are designated by the Member to be
invested in the Company Stock Fund shall be invested in a Balanced Fund until the Member properly designates the investment of such Company Contributions in and among the other Investment Funds available under Section 4.1. 
 4.3 Change in Investment Options. A Member may change his election of the Investment Funds (other than the Company Stock Fund, with respect to
Company Contributions made on and after January 1, 2001) at any time with respect to any subsequent Company Contributions to be allocated on his behalf, by giving notice (including telephonic notice) to the Committee in such manner and within
the time limit prescribed by the Committee. 
 4.4 Transfer Between Funds. 
 (a) An active or inactive Member may elect to transfer all or any portion of the value of his Account in one of the Investment Funds to
any other Investment Fund (other than the Company Stock Fund, with respect to transfer requests made on and after January 1, 2001) at the following times (and under such uniform rules as the Committee may adopt from time to time): 

(1) Any election to transfer between and among the Equity Investment Fund, the Stable Value Fund and the Balanced Fund (and any related
funds maintained in the Equity Investment Fund, the Stable Value Fund and the Balanced Fund) may be made at any time, to be effective as soon as practicable thereafter; and 
 (2) Any election to transfer from the Company Stock Fund may be made at any time. Effective January 1, 2007, transactions will be
executed daily, and are subject to normal settlement timeframes and practices. 
  

 9 

 (b) Except as otherwise provided, transfers pursuant to this Section 4.4 may be made
by telephoning notice to the Investing Institution, and shall be effective as soon as practicable following the Investing Institution’s receipt of the notice. 
 4.5 Investment Options. Each Member is solely responsible for the selection of his investment option. The Investing Institutions, the Committee, the Company or any of the officers or supervisors of the Company
are not empowered to advise a Member as to the manner in which his Account shall be invested. The fact that a security is available to Members for investment under the Plan shall not be construed as a recommendation for the purchase of that
security, nor shall the designation of any option impose any liability on the Company, its directors, officers or employees, the Investing Institutions, the Committee or any Member of the Plan. 
 4.6 Voting Rights; Offer to Purchase Stock. 
 (a) Voting - All Company stock (including fractional shares), the value of which is allocated to Members’ Accounts, shall be voted by the Trustee of the Trust, in accordance with instructions from the
Members. Armstrong Holdings, Inc. shall provide Members with notices and information statements when voting rights are to be exercised, the content of which must generally be the same as for all holders of interests in Company stock. Fractional
shares may be voted by the Trustee on a combined basis, in order to reflect the direction of the Members holding such shares. The Trustee shall tabulate the instructions and shall determine the ratio of votes for and against each proposition. The
Trustee shall then vote all stock held by it, including stock for which no instructions have been received, in the ratios determined by the vote of those Members who returned voting instructions. 
 (b) Tender Offer Procedure - In the event any offer is made to shareholders of Armstrong Holdings, Inc. generally by any person
corporation or other entity (the “Offeror”) to purchase any or all of the outstanding stock of Armstrong Holdings, Inc., including the stock the value of which is then held in Members’ Accounts, then and in that event the Trustee
shall promptly forward to each Member all materials and written information furnished to the Trustee by the Offeror and/or by Armstrong Holdings, Inc. in connection therewith, and shall notify each Member in writing of the number of shares of
Company stock the value of which is then credited to such Member’s Account. Such notice shall also set forth the rights afforded each Member by the following sentence and shall state that, absent timely instructions from such Member to the
Trustee, no tender to the Offeror shall be made of any of the shares specified in such written notice. Each Member shall be entitled to instruct the Trustee as to whether all (but not less than all) of the shares of Company stock standing to his
credit should be tendered by the Trustee pursuant to such offer. 
 (c) Shares Tendered - The Trustee shall tender only
those shares of Company stock the value of which is held in a Member’s Account for which it receives instructions to so tender from such Member and shall not tender any shares as to which such instructions are not so received. 
 (d) Proceeds - In the event that Company stock the value of which is held in a Member’s Account is tendered, the proceeds
received upon the acceptance of such tender by 

  

 10 

 
the Offeror shall be credited to such Member’s Account. The Trustee shall invest amounts representing the proceeds of tendered Company stock and any
earnings thereon, in accordance with instructions from the Committee. 
 4.7 Limitations. Provisions of this Article are subject
to the limitations of any contract with any Investing Institution. 
  

 11 

 ARTICLE V 
 Valuation of a Member’s Account 
 “Valuation Date” shall mean any day that the
New York Stock Exchange is open for trading or such other date as may be designated by the Committee or its delegate. The Investment Funds described in Section 4.1 shall be valued on each Valuation Date in accordance with rules established by
the Committee. Whenever a distribution to a Member is made, the amount paid to the Member shall be based on the value of the Member’s Account determined as of the Valuation Date set forth in Article VI. 
 Each Member’s Account will be credited, as of the Valuation Date on which such amounts are received by the Trustee, with all contributions made on
the Member’s behalf and debited with the amount of any distribution made to the Member or on the Member’s behalf pursuant to Article VI. The Account of each Member will also be adjusted, as of each Valuation Date, for increases
reflecting the Member’s share of the net investment income and any realized and unrealized capital gains of the Funds and decreases reflecting the Member’s share of any realized and unrealized losses, including capital losses, as well as
the payment of brokerage fees and transfer taxes applicable to purchases and sales for each Investment Fund and all similar transactions, and any Plan administrative expenses to the extent they are not paid by the Company, of the Investment Funds
that occurred since the last Valuation Date. Except to the extent otherwise reflected in the value of mutual fund shares, such Member’s share of such income and losses will be that portion of the total net investment income, capital gains and
losses of each such Investment Fund which bears the same ratio to such total as the balance of his Member Accounts attributable to each such Investment Fund on the preceding Valuation Date bears to the aggregate of the balances of all Member
Accounts attributable to each such Investment Fund as of the preceding Valuation Date. 
  

 12 

 ARTICLE VI 
 Distributions 
 6.1 Distributions on Termination of Employment Other than by Reason of a
Member’s Death. 
 (a) Subject to Section 6.4, if a Member terminates employment for any reason other than
death, he may elect (in the manner specified by the Committee) at any time following his termination to receive a single sum cash payment of his Account as soon as practicable following the Committee’s receipt of the Member’s election.

 (b) If a Member is eligible to receive a distribution in accordance with subsection (a), he may request in the manner
prescribed by the Committee (including telephonically) to have such distribution paid directly to him or paid as a “direct rollover distribution” (as defined in Code Section 402(c) and the regulations and other guidance issued
thereunder). 
 (c) The amount of such distribution shall be valued as of the Valuation Date prior to the actual distribution,
which will be on the date of the request or as soon as administratively feasible. 
 (d) Notwithstanding subsection (a),
the portion of the Member’s Account that is invested in the Company Stock Fund shall be distributed in a single sum in either cash or Company Stock (with cash for fractional shares), as elected by the Member. If the Member fails to elect, prior
to the time the time such distribution is to be processed pursuant to the Member’s election or pursuant to the requirements of Section 6.4, to receive the portion of his Account invested in the Company Stock Fund in shares of Company
Stock, such distribution shall be made in cash. 
 (e) The Committee or its designee shall notify each Member, at such time
and in such manner as required by Sections 402(f) and 411(a)(11) of the Code and the regulations and other guidance issued thereunder, of his right to make a “direct rollover distribution,” in accordance with Section 6.5 below, and
his right to receive a distribution of his Account under this Section 6.1. Distribution of a Member’s Account under the Plan may occur prior to 30 days after the Committee or its designee provides such notice, provided: 
 (1) the Member is informed that he has a right to a period of at least 30 days after receiving the notice to consider the decision of
whether to make a direct rollover distribution and whether to receive an immediate distribution; and 
 (2) the Member, after
receiving the notice, requests to receive an immediate distribution in the manner prescribed by the Committee (including telephonically). 
 6.2 Distribution Upon a Member’s Death. 
 (a) In the event a Member dies prior to his receipt of a
distribution under Section 6.1, the entire value of his Account shall be paid in a single sum cash payment to the 

  

 13 

 
Member’s Beneficiary as soon as practicable following receipt of proper payment instructions by the Trustee from the Committee. The amount of such
distribution shall be determined in accordance with Section 6.1(c), substituting “for payment instructions received” for the phrase “for any request made” in such section. The Committee shall provide the Trustee payment
instructions as soon as practicable after the Member’s death or notification of the Member’s death, if later. No benefits shall be payable under this Section 6.2 to any Beneficiary if the Member dies after commencing to receive a
distribution of his Accounts. 
 (b) Notwithstanding the foregoing, if
the Member’s Beneficiary is the Member’s spouse, such Beneficiary may elect to defer receipt of the single sum payment beyond the date on which it normally would become payable, but in no event later than December 31 of the calendar
year in which the Member would have attained age 70 1/2. 
 (c) In no event may a Beneficiary elect to receive a payment of a Member’s Account in any form of payment other than a single sum
payment. Further, if a spousal Beneficiary defers distribution of any amounts from the Plan, then prior to the distribution of such Account, the Beneficiary may not obtain any partial distributions. However, such Beneficiary may continue to invest
amounts in the Member’s Account in accordance with Article IV. 
 (d) Notwithstanding subsection (a), the
portion of the Member’s Account that is invested in the Company Stock Fund shall be distributed in a single sum in either cash or Company Stock (with cash for fractional shares), as elected by the Beneficiary. If the Beneficiary fails to elect
to receive the portion of the Member’s Account invested in the Company Stock Fund in shares of Company Stock, such distribution shall be made in cash. 
 6.3 Lost Members or Beneficiaries. If a Member or Beneficiary cannot be located by reasonable efforts of the Committee within a reasonable period of time after the latest date such benefits are otherwise
payable under the Plan, the amount in such Member’s Account shall be forfeited and used to reduce future Company Contributions, defray administrative expenses of the Plan, and restore Members’ Accounts in accordance with this section;
provided, however, that such forfeited amount shall be restored (without earnings) if, at any time, the Member or Beneficiary who was entitled to receive such benefit when it first became payable shall, after furnishing proof of his identity and
right to make such claim to the Committee, file a written request for such benefit with the Committee. 
 6.4 Required Distributions.

 (a) Notwithstanding anything to the contrary in this Plan, and subject to subsection (c) below, payments under the
Plan to a Member shall begin not later than the 60th day after the latest of the close of the Plan Year in which: 
 (1) the
Member attains age 65; 
 (2) occurs the tenth anniversary of the year in which the Member commences participation in the
Plan; or 
 (3) the Member terminates employment. 
  

 14 

 (b) All payments under this Plan shall be adjusted to meet the requirements of
Section 401(a)(9) of the Code and the regulations and other guidance issued thereunder, subject to the provisions of this Section 6.4. In addition, all distributions under the Plan shall comply with the incidental death benefit
requirements of Section 401(a)(9)(G) of the Code. 
 (c) Payment
of benefits to any Member who is not a 5% owner as defined in Code Section 416 shall be paid in the form of a lump sum payment not later than the April 1 following the later of: (i) the calendar year in which such Member attains age
70 1/2, or (ii) the calendar year in which such Member terminates employment. Payment of benefits to any Member who is a 5%
owner as defined in Code Section 416 shall be paid in the form of a lump sum payment not later than the April 1 following the calendar year in which such Member attains age 70 1/2. 
 6.5 Direct Rollover Distributions. At
the request of a Member, a surviving spouse of a Member, or a spouse or former spouse of a Member that is an alternate payee under a qualified domestic relations order under Section 10.5 (referred to as the “distributee”) and upon
receipt of the direction of the Committee or its designee, the Trustee shall effectuate a direct rollover distribution of the amount requested by the distributee, in accordance with Code Section 401(a)(31), to an eligible retirement plan (as
defined in Code Section 402(c)(8)(B)). Such amount may constitute all or any whole percent of any distribution from the Plan otherwise to be made to the distributee, provided that such distribution constitutes an “eligible rollover
distribution” as defined in Code Section 402(c) Code and the regulations and other guidance issued thereunder. All direct rollover distributions shall be made in accordance with the following subsections (a) through (d): 

(a) A direct rollover distribution may only be made to one eligible retirement plan; a distributee may not elect to have a direct
rollover distribution apportioned between or among more than one eligible retirement plan. 
 (b) Direct rollover
distributions shall be made in cash to the Trustee of the eligible retirement plan, in accordance with procedures established by the Committee, plus shares of common stock otherwise distributable under the Plan to the distributee, which shares shall
be registered in a manner necessary to effectuate a direct rollover under Code Section 401(a)(31), provided, however, that the distributee may request that such direct rollover distribution be made entirely in cash in the manner described
above. 
 (c) No direct rollover distribution shall be made unless the distributee furnishes the Committee with such
information as the Committee shall require and deems to be sufficient. 
 (d) Direct rollover distributions shall be treated
as all other distributions under the Plan and shall not be treated as a direct trustee-to-trustee transfer of assets and liabilities. 
 6.6
Distributions on Sales of Businesses. For the sole purpose of determining a Member’s entitlement to a distribution under this Plan, no distribution shall be permitted upon the sale or other business disposition by the Company of a trade
or business or the sale by the 

  

 15 

 
Company of its interest in a subsidiary, with respect to a Member who is employed by such trade or business or subsidiary immediately prior to such sale or
disposition and who continues in the employ of (i) the employer that acquires the assets of such trade or business or acquires the interest of such subsidiary or (ii) any other entity related to such employer. 
 6.7 Payments to Minors and Incompetents. If a Member or Beneficiary entitled to receive any benefits hereunder is a minor or is deemed by the
Committee or is adjudged to be legally incapable of giving valid receipt and discharge for such benefits, they will be paid to such persons as the Committee might designate or to the duly appointed guardian. Any such payment shall be a complete
discharge of the liability of the Plan and the Trust therefor. 
  

 16 

 ARTICLE VII 
 Management of Funds 
 7.1 General Responsibilities. All the funds of the Plan shall be
held by a Trustee or Trustees appointed from time to time by the Board of Directors, in one or more trusts under a trust instrument or instruments approved or authorized by the Board of Directors for use in providing the benefits of the Plan;
provided that no part of the corpus or income of the Trust Fund shall be used for, or diverted to, purposes other than for the exclusive benefit of Members and their Beneficiaries. 
 7.2 Funding Agreements. 
 (a) All the funds of the Plan shall be held by one or more Investing Institutions appointed from time to time by the Company under a Trust Agreement or an Insurance Contract adopted, or as amended, by the Company for the administration of
the funds of the Plan. The Company shall have no liability for the investment of the funds paid over to the Investing Institution. 
 (b) The Company retains the right to act on behalf of all persons having an interest in any Trust Fund or under any Insurance Contract, and to enter into additional Trust Agreements or Insurance Contracts. 
 7.3 Investment Managers. The Committee may appoint one or more Investment Managers to manage the investment of all or any part of one or more of
the Investment Funds. Every Investment Manager so appointed must meet the requirements of ERISA Section 3(38). An Investment Manager shall acknowledge in writing its appointment as a fiduciary of the Plan, and shall serve until a proper
resignation is received by the Committee, or until it is removed and/or replaced by the Committee. The Committee and the Trustee shall be under no duty to question any direction or lack of direction of any Investment Manager, but shall act, and
shall be fully protected in acting, in accordance with each such direction. An Investment Manager shall have sole investment responsibility for that portion of the Funds which it is appointed to manage, and no other Plan fiduciary shall have any
responsibility for the investment of any asset of the Fund, the management of which has been delegated to an Investment Manager, or liability for any loss or diminution in value of the Fund resulting from any action directed, taken or omitted by an
Investment Manager. 
  

 17 

 ARTICLE VIII 
 Administration of the Plan 
 8.1 The Committee. The administration of this Plan, the
exclusive power to interpret and construe it and the responsibility for carrying out its provisions, shall be vested in the Committee, which shall consist of the same persons as constitute the Retirement Committee of the Retirement Income Plan for
Employees of Armstrong World Industries, Inc. The Chairman and Secretary of the Retirement Income Plan’s Committee shall be the Chairman and Secretary of this Committee. In the event no members of the Committee are in office, the Company shall
be deemed the Committee. 
 8.2 Duties of the Committee. The members of the Committee may appoint from their number such subcommittees
with such powers as they shall determine; may authorize one or more of their number or any agent to execute or deliver any instrument or make any payment on their behalf; may retain counsel, employ agents and provide for such clerical, accounting
and consulting services as they may require in carrying out the provisions of the Plan; and may allocate among themselves or delegate to other persons all or such portion of their duties hereunder, other than those granted to any Investment Manager
pursuant to Section 7.3 or the Trust agreement adopted for use in implementing the Plan, as they, in their sole discretion shall decide. 
 8.3 Meetings. The Committee shall hold meetings upon such notice, at such place or places, and at such time or times at it may from time to time determine. 
 8.4 Action by Majority. Any act which the Plan authorizes or requires the Committee to do may be done by a majority of its members. The action of
such majority expressed from time to time by a vote at a meeting or in writing without a meeting shall constitute the action of the Committee and shall have the same effect for all purposes as if assented to by all members of the Committee at the
time in office. 
 8.5 Compensation. No member of the Committee shall receive any compensation from the Plan for his services as such.
However, all expenses of the Committee shall be paid by the Company. 
 8.6 Establishment of Rules. Subject to the provisions of any
Insurance Contract and the limitations of the Plan, the Committee from time to time shall establish rules for the administration of the Plan and the transaction of its business. The Committee shall have the full and exclusive discretionary authority
to interpret the Plan, to determine all benefits and to resolve all questions arising from the administration, interpretation, and application of Plan provisions, either by general rules or by particular decisions, including determinations as to
whether a claimant is eligible for benefits, the amount, form and timing of benefits, and any other matter (including any question of fact) raised by a claimant or identified by the Committee. All decisions of the Committee shall be conclusive and
binding upon all affected persons. 
 8.7 Prudent Conduct. The members of the Committee shall use that degree of care, skill, prudence
and diligence that a prudent man acting in a like capacity and familiar with 

  

 18 

 
such matters would use in his conduct of a similar situation. A member of the Committee shall not be liable for the breach of fiduciary responsibility of
another fiduciary unless (a) he participates knowingly in, or knowingly undertakes to conceal, an act or omission of such other fiduciary, knowing such act or omission is a breach; or (b) by his failure to discharge his duties solely in
the interest of the Members and Beneficiaries for the exclusive purpose of providing their benefits and defraying reasonable expenses of administering the Plan not met by the Company, he has enabled such other fiduciary to commit a breach; or
(c) he has knowledge of a breach by such other fiduciary and does not make reasonable efforts to remedy the breach; or (d) the Committee improperly allocates responsibilities among themselves or improperly delegates responsibilities to
others, or fails to properly review any allocation or delegation of fiduciary responsibilities. 
 8.8 Indemnification. The Company
will indemnify and save harmless the members of the Committee and any person to whom fiduciary responsibilities are delegated under this Plan against any cost or expense (including attorney’s fees) or liability (including any sum paid in
settlement of a claim with the approval of the Company) arising out of any act or omission to act, except in the case of willful misconduct. 
  

 19 

 ARTICLE IX 
 Amendment and Termination 
 This Plan may be terminated, modified, altered or amended by the
Retirement Committee by resolution at any time, provided that no such termination, modification, alteration or amendment shall cause or permit the Trust Fund to be used for, or diverted to, any purposes other than for the exclusive benefit of the
employees of the Company included in this Plan. In no case shall any amendment of this Plan cause the reduction or elimination of any Member’s accrued benefit (including optional forms of benefit and the manner and timing thereof) in violation
of Code Section 411(d)(6) or ERISA Section 204(g). Notwithstanding the foregoing, any modification or amendment of the Plan may be made, retroactively if necessary, which the Retirement Committee or its delegate deems necessary or proper
to bring the Plan into conformity with any law or governmental regulation relating to plans or trusts of this character, including the qualification of any trust or other fund created under the Plan as exempt from income taxes under the Code. The
Account balance of each affected Member shall continue to be held in trust until the Member is entitled to a distribution under Article VI. 
  

 20 

 ARTICLE X 
 General Provisions 
 10.1 Expenses. All costs and expenses in administering the Plan
and managing the Trust Fund shall be paid from the Trust Fund and charged within the Trust Fund to the appropriate Investment Funds to which such costs and expenses are attributable to the extent such expenses are not paid by the Company.
Notwithstanding the foregoing, brokerage fees, commissions, stock transfer taxes and other charges and expenses in connection with the purchase and sale of securities shall be paid from the Trust Fund and charged within the Trust Fund to the
Investment Fund to which such charges and expenses are attributable. 
 10.2 Source of Payment. Benefits under the Plan shall be
payable only out of the Trust Fund and the Company shall not have any legal obligation or liability to make any direct payment of benefits under the Plan. Neither the Company nor the Trustee guarantees the Trust Fund against any loss or
depreciation, or guarantees the payment of any benefit hereunder. No persons shall have any rights under the Plan with respect to the Trust Fund, or against the Trustee or the Company, except as specifically provided for herein. 
 10.3 No Right of Employment. Nothing contained in the Plan shall be deemed to give any employee the right to be retained in the service of the
Company or to interfere with the right of the Company to discharge or to retire any employee at any time. 
 10.4 Non-Alienation of
Benefits. Except as specifically provided in the Plan, no benefit payable at any time under this Plan shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment or encumbrance of any kind. Any attempt to
alienate, sell, transfer, assign, pledge, attach or otherwise encumber any such benefit, whether presently or thereafter payable, shall be void. Neither any benefit, nor the Trust Fund shall, in any manner, be liable for or subject to the debts or
liability of any employee included in this Plan or any beneficiary. If any employee included in this Plan or any Beneficiary shall attempt to or shall alienate, sell, transfer, assign, pledge, attach or otherwise encumber his rights or benefits
under this Plan or any part thereof, or if by reason of bankruptcy or otherwise the rights or benefits of any employee included in this Plan or of any beneficiary would devolve upon anyone else or would not be enjoyed by him, then the Committee, in
its discretion and to the extent permitted by law, may terminate his interest in any such right or benefit and direct the Trustee to hold or apply it for his use or account or for the use or account of his spouse, children, or other dependents or
any of them in such manner as the Committee may deem proper. 
 10.5 Qualified Domestic Relations Orders. Notwithstanding any
provision in the Plan to the contrary, the Committee shall take such steps as are necessary under the Plan to comply with the terms of any applicable “qualified domestic relations order” (as defined by Code Section 414(p) and ERISA
Section 206(d)). The Account of any Member subject to such an order shall be adjusted to reflect any payments made pursuant to such order. Payments may be made from this Plan pursuant to such an order at any time prior to earliest retirement
age, as defined in the Code and ERISA. The Committee shall adopt such procedures as it deems necessary and appropriate to carry out the provisions of this Section. 
  

 21 

 10.6 Invalidity of Provisions. If any provision of this Plan is held invalid or unenforceable,
such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such invalid or unenforceable provision had not been included. 
 10.7 Failure to Initially Qualify Plan. In no event shall any part of the corpus or the income of the Plan be used for, or diverted to, any
purpose other than the exclusive benefit of Members, former Members and their Beneficiaries hereunder. Notwithstanding the foregoing, in the event that the Internal Revenue Service initially determines that the Plan does not qualify under Code
Section 401(a), all Company Contributions made prior to such initial determination as to the qualification of the Plan may be returned to the Company within one year of the denial of qualification. 
 10.8 Adoption of Plan by Subsidiary, Affiliated or Associated Company. The Company may, by resolution of the Board of Directors, exclude from
participation in this Plan any or all of the Employees of the Company or an Affiliated Company. Any subsidiary company of the Company may, by action of its board of directors with the approval of the Board of Directors of the Company, adopt this
Plan with respect to its Employees. The Company may, by resolution of the Board of Directors, or by action of the appropriate officers of the Company, make this Plan applicable to any Employees of the Company or an Affiliated Company. With respect
to any such Employees to which this Plan is made applicable, Effective Date refers to the date as of which the Plan is made applicable to such Employees. The Committee shall adopt such procedures as it deems necessary and appropriate to carry out
the provisions of this Section. 
 10.9 Mergers and Transfers. No merger or consolidation with, or transfer of assets or liabilities
to, any profit sharing or retirement plan, shall be made unless the benefit each Member in this Plan would receive if the Plan were terminated immediately after such merger or consolidation, or transfer of assets and liabilities, would be at least
as great as the benefit he would have received had the Plan terminated immediately before such merger, consolidation or transfer. 
 10.10
Compliance with Securities Laws. Any other provisions in this Plan to the contrary notwithstanding, purchase or distribution of Company common stock shall be subject to compliance with any applicable federal or state securities laws or rules
and regulations thereunder. 
 10.11 Governing Law. To the extent such laws are not preempted by ERISA, the provisions of the Plan
shall be interpreted in accordance with the laws of the Commonwealth of Pennsylvania. 
 10.12 Trust-to-Trust Transfers. In the event
of a transfer from a qualified plan (other than a plan subject to the requirements of Section 417 of the Code), and at the discretion of the Committee, and pursuant to procedures issued by the Committee, the individuals who were participants in
such other plan may be given the opportunity to elect to have their entire interests in such plan transferred directly on a trust-to-trust basis into this Plan. Any such transferred amounts shall be allocated to Accounts of Members as determined by
the Committee. 
  

 22 

 10.13 Construction. The masculine pronoun includes the feminine and the singular includes the
plural. 
 10.14 Nondiscrimination Testing. For purposes of satisfying the nondiscrimination requirements under Code
Section 401(a)(4), the term “highly compensated employee” shall mean an Employee of the Company or an Affiliated Company who: 
 (a) was a 5% owner, as defined in Section 416(i)(1) of the Code, at any time during the Plan Year or the preceding Plan Year; or 
 (b) for the preceding Plan Year performed services for the Company or an Affiliated Company and received compensation (within the meaning
of Treasury Regulation Section 1.415-2(d)(11)(i)) in excess of $80,000 (adjusted at the same time and in the same manner as under Section 415(d) of the Code). For purposes of the preceding sentence, “compensation” shall include
elective deferrals made on behalf of the Employee under any qualified cash or deferred arrangement (as defined under Code Section 401(k)) maintained by the Company or an Affiliated Company, any cafeteria plan (as defined under Code
Section 125) maintained by the Company or an Affiliated Company, and/or any qualified transportation fringe arrangement (as defined under Code Section 132(f)). 
 Notwithstanding the foregoing, the Committee may make a “top-paid group” election under
the regulations or other guidance issued pursuant to Section 414(q) of the Code with respect to any preceding year. If such election is made, the foregoing provisions of subsection (b) shall be applied in accordance with such election. The
“top-paid group” shall include all Employees who are in the top 20% of all Employees on the basis of compensation. For purposes of determining the number of employees in the “top-paid group,” the following Employees shall be
excluded: (i) Employees who have not completed six (6) months of service; (ii) Employees who normally work less than 17 1/2 hours per week; (iii) Employees who normally work not more than six (6) months during any calendar year; (iv) Employees who have not attained age 21; and (v) Employees who are nonresident aliens receiving no United
States source income within the meaning of Sections 861(a)(3) and 911(d)(2) of the Code. 
 10.15 Military Service.
Notwithstanding any other provision of this Plan to the contrary, contributions, benefits and service credits with respect to qualified military service will be provided in accordance with Code Section 414(u). 
  

 23 

 ARTICLE XI 
 Contribution Limitations 
 11.1 Annual Addition Limitation. 
 (a) Notwithstanding any provision of the Plan to the contrary, in no event shall the Annual Addition (as hereinafter defined) with respect
to any Member in any calendar year (which shall be the “Limitation Year”) exceed the lesser of: 
 (1) 25% (100%
effective January 1, 2002) of the Member’s compensation (as defined below); or 
 (2) the dollar limit in effect for
such calendar year in accordance with Code Section 415(c)(1)(A) ($40,000 effective January 1, 2002), and the adjustments for increases in cost of living as established by regulations issued pursuant to Code Section 415(d). 

(b) For purposes of this Section 11.1, the term “Annual Addition” with respect to any Member means the Company
Contributions made pursuant to Section 3.1 allocated to the Member’s Account and amounts described in Code Sections 415(l)(1) and 419A(d)(2). 
 (c) For purposes of subsection (a)(1), a Member’s compensation shall be determined under Treasury Regulation Section 1.415-2(d)(11)(i)) and shall be defined as wages within the meaning of Code
Section 3401(a) and all other payments of compensation to the Member by the Company or any Affiliated Company (in the course of the Company’s or Affiliated Company’s trade or business) for which the Company or Affiliated Company is
required to furnish the Member a written statement under Codes Sections 6041(d), 6051(a)(3) and 6052, but determined without regard to any rules under Code Section 3401(a) that limit the remuneration included in wages based on the nature or
location of the employment or the services performed, and shall include elective deferrals made on behalf of the Member under any qualified cash or deferred arrangement (as defined under Code Section 401(k)) maintained by the Company or an
Affiliated Company, any cafeteria plan (as defined under Code Section 125) maintained by the Company or an Affiliated Company, and/or any qualified transportation fringe arrangement (as defined under Code Section 132(f)). 
 (d) If a Member is also participating in another tax-qualified defined contribution plan maintained by the Company or an Affiliated
Company (as modified by application of Code Section 415(h)), the otherwise applicable limitation on Annual Additions under this Plan shall be reduced by the amount of annual additions (within the meaning of Code Section 415(c)(2)) under
any such other defined contribution plan. 
 (e) For Plan Years beginning prior to January 1, 2000, if a Member in this
Plan is a Member in any tax-qualified defined benefit plan maintained by the Company or any Affiliated Company (as modified by application of Code Section 415(h)), the overall limitation of Code Section 415(e) shall be complied with by
limiting the amount of contributions that may be made on behalf of a Member under this Plan. 
  

 24 

 (f) Excess Company Contributions, as determined under subsections (a) through
(d) above, shall be used to reduce future Company Contributions on behalf of the Member for the next succeeding Limitation Year and succeeding Limitation Years as necessary. If the Member is not covered by the Plan as of the end of such
succeeding year, but an excess amount still exists, such excess amount will be held unallocated in a suspense account. The suspense account will be applied to reduce future contributions on behalf of the other Members entitled to an allocation, in
that Limitation Year, and succeeding Limitation Years, if necessary. 
 11.2 Top-Heavy Provisions. 
 (a) Special Top-Heavy Definitions. For purposes of this Section 11.2, the following terms shall have the following meanings:

 (1) “Determination Date” means, with respect to any Plan Year, the last Valuation Date of the preceding Plan
Year. 
 (2) “Key Employee” means a Member or former member who is a “key employee” as defined in Code
Section 416(i). 
 (3) “Permissive Aggregation Group” means, with respect to a given Plan Year, this Plan and
all other plans of the Company and its Affiliated Companies (other than those included in the Required Aggregation Group) which, when aggregated with the plans in the Required Aggregation Group, continue to meet the requirement of Code Sections
401(a)(4) and 410. 
 (4) “Present Value of Accounts” means, as of a given Determination Date, the sum of the
Members’ Accounts under the Plan as of such Valuation Date. The determination of the Present Value of Accounts shall take into consideration distributions made to or on behalf of the Member in the Plan Year ending on the Determination Date and
the four preceding Plan Years, but shall not take into consideration the Accounts of any Member who has not performed any services for the Company during the five year period ending on the Determination Date. Notwithstanding the foregoing, effective
for Plan Years beginning on and after January 1, 2002, all distributions made with respect to a Member under the Plan and any plan aggregated with the Plan under Code Section 416(g)(2) during the one-year period ending on the Determination
Date shall be taken into account in determining the Present Value of Accounts for the Member. The preceding sentence shall also apply to distributions under a terminated plan which, had it not been terminated, would have been aggregated with the
Plan under Code Section 416(g)(2)(A)(i). In the case of a distribution made for a reason other than separation from service, death, or disability, this provision shall be applied by substituting “five-year period” for “one-year
period.” Further, notwithstanding the foregoing, the Present Value of Accounts of an individual who has not performed services for the Company or an Affiliated Company during the one-year period ending on the Determination Date will not be
taken into account. 
 (5) “Required Aggregation Group” means with respect to a given Plan Year, (i) this Plan,
(ii) each other plan of the Company and its Affiliated Companies in which a Key Employee is a participant (regardless of whether the plan has terminated within the last five 

  

 25 

 
(5) Plan Years), and (iii) each other plan of the Company and its Affiliated Companies which enables a plan described in (i) or (ii) to meet
the requirements of Code Sections 401(a)(4) or 410. 
 (6) “Top-Heavy” means, with respect to the Plan for a Plan
Year: 
 (i) that the Present Value of Accounts of Key Employees exceeds 60% of the Present Value of Accounts of all Members;
or 
 (ii) the Plan is part of a Required Aggregation Group and such Required Aggregation Group is a Top-Heavy Group, unless
the Plan or such Top-Heavy Group is itself part of a Permissive Aggregation Group which is not a Top-Heavy Group. 
 (7)
“Top-Heavy Group” means, with respect to a given Plan Year, a group of Plans of the Company which, in the aggregate, meet the requirements of the definition contained in Code Section 416(g)(2)(B). Solely for the purpose of determining
if the Plan, or any other Plan included in a required aggregation group of which this Plan is a part, is top-heavy (within the meaning of Code Section 416(g)) the accrued benefit of an Employee other than a key employee (within the meaning of
Code Section 416(i)(1)) shall be determined under (1) the method, if any, that uniformly applies for accrual purposes under all Plans maintained by the Company, or (ii) if there is no such method, as if such benefit accrued not more
rapidly than the slowest accrual rate permitted under the fractional accrual rate of Code Section 411(b)(1)(C). 
 (b)
Special Top-Heavy Rules. Notwithstanding any other provision of the Plan to the contrary, the following provisions of this Section 11.2 shall automatically become operative and shall supersede any conflicting provisions of the Plan if,
in any Plan Year, the Plan is Top-Heavy. 
 (1) The minimum Company Contribution during the Plan Year on behalf of a Member
who is not a Key Employee shall be equal to the lesser of (i) 3% of such Member’s compensation (as defined under Section 11.1(c)); or (ii) the percentage of compensation at which Company Contributions are made (or required to be
made) under the Plan on behalf of the Key Employee for whom such percentage is the highest. 
 (2) The provisions of this
subsection (b)(2) shall apply with regard to Plan Years beginning before January 1, 2000. In order to comply with the requirements of Code Section 416(h), in the case of a Member who is or has also participated in a defined benefit
plan of the Company (or any Affiliated Company that is required to be aggregated with the Company in accordance with Section 415(h) of the Code) in any Plan Year in which the Plan is Top-Heavy, there shall be imposed under such defined benefit
plan the following limitation in addition to any limitation which may be imposed as described in Section 11.1. In any such year, for purposes of satisfying the aggregate limit on contributions and benefits imposed by Section 415(e) of the
Code, contributions to this Plan shall, except as hereinafter described, be reduced so as to comply with a limit determined in accordance with Section 415(e) of the Code, but with the number “1.0” substituted for the number
“1.25” in the “defined benefit plan fraction” (as defined in Section 415(e)(2) of the Code) and in the “defined contribution plan fraction” (as defined in Section 415(e)(3) of the Code). Notwithstanding the
foregoing, if the application of the additional limitation set forth in this Subsection 11.2(b) would result in the 

  

 26 

 
reduction of accrued benefits of any Member under the defined benefit plan, such additional limitation shall not become operative, so long as (i) no
additional Company Contributions, forfeitures or voluntary nondeductible contributions are allocated to such Member’s accounts under any defined contribution plan maintained by the Company including this Plan and (ii) no additional
benefits accrue to such Member under any defined benefit plan maintained by the Company. Accordingly, in any Plan Year that the Plan is Top-Heavy, no additional benefits shall accrue under the defined benefit plan on behalf of any Member whose
overall benefits under the defined benefit plan otherwise would be reduced in accordance with the limitation described in this subsection (b)(2). 
 (3) A Member who is not a Key Employee is entitled to all of his Account under the Plan following the vesting schedule provided in Section 3.3 before or while the Plan is a Top Heavy Plan. In the event the Plan
previously was a Top-Heavy Plan but subsequently is not a Top-Heavy Plan, the Plan will follow the vesting schedule provided in Section 3.3. 
 (4) In the event that Congress should provide by statute, or the Treasury Department should provide by regulation or ruling, that the limitations provided in this Section 11.2 are no longer necessary for the Plan
to meet the requirements of Section 401 or other applicable law then in effect, such limitations shall become void and shall no longer apply, without the necessity of further amendment to the Plan. 
 IN WITNESS WHEREOF, the Committee has executed this Plan on the              day of
April, 2007. 
  

					
			
	  	 		 	  
	F. Nicholas Grasberger	 		 	Donald A. McCunniff
			
	  	 		 	  
	John N. Rigas	 		 	R. Scott Webster

  

 27

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]