Document:

mye-ex10ai_496.htm

Exhibit 10(ai)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE EXECUTIVE NONQUALIFIED EXCESS PLAN PLAN DOCUMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DD2326-9

 

 

THE EXECUTIVE NONQUALIFIED EXCESS PLAN

 

Section 1.Purpose:

 

By execution of the Adoption Agreement, the Employer has adopted the Plan set forth herein, and in the Adoption Agreement, to provide a means by which certain management Employees or Independent Contractors of the Employer may elect to defer receipt of current Compensation from the Employer in order to provide retirement and other benefits on behalf of such Employees or Independent Contractors of the Employer, as selected in the Adoption Agreement. The Plan is intended to be a nonqualified deferred compensation plan that complies with the provisions of Section 409A of the Internal Revenue Code (the "Code"). The Plan is also intended to be an unfunded plan maintained primarily for the purpose of providing deferred compensation benefits for a select group of management or highly compensated employees under Sections 201(2), 301(a)(3) and 401(a)(l) of the Employee Retirement Income Security Act of 1974 (“ERISA”) and independent contractors. Notwithstanding any other provision of this Plan, this Plan shall be interpreted, operated and administered in a manner consistent with these intentions.

Section 2.Definitions:

 

As used in the Plan, including this Section 2, references to one gender shall include the other, unless otherwise indicated by the context:

	
2.1
	
"Active Participant" means, with respect to any day or date, a Participant who is in Service on such day or date; provided, that a Participant shall cease to be an Active Participant (i) immediately upon a determination by the Committee that the Participant has ceased to be an Employee or Independent Contractor, or (ii) at the end of
	
 

 

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the Plan Year that the Committee determines the Participant no longer meets the eligibility requirements of the Plan.

	
2.2
	
"Adoption Agreement" means the written agreement pursuant to which the Employer adopts the Plan. The Adoption Agreement is a part of the Plan as applied to the Employer.
	
 

	
2.3
	
"Beneficiary" means the person, persons, entity or entities designated or determined pursuant to the provisions of Section 13 of the Plan.
	
 

	
2.4
	
"Board" means the Board of Directors of the Company, if the Company is a corporation. If the Company is not a corporation, "Board" shall mean the Company.
	
 

	
2.5
	
"Change in Control Event" means an event described in Section 409A(a)(2)(A)(v) of the Code (or any successor provision thereto) and the regulations thereunder.
	
 

	
2.6
	
"Committee" means the persons or entity designated in the Adoption Agreement to administer the Plan. If the Committee designated in the Adoption Agreement is unable to serve, the Employer shall satisfy the duties of the Committee provided for in Section 9.
	
 

	
 
	
2.7
	
"Company" means the company designated in the Adoption Agreement as

 

such.

 

	
2.8
	
"Compensation" shall have the meaning designated in the Adoption Agreement.
	
 

	
2.9
	
"Crediting Date" means the date designated in the Adoption Agreement for crediting the amount of any Participant Deferral Credits or Employer Credits to the Deferred Compensation Account of a Participant.
	
 

 

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2.10
	
"Deferred Compensation Account" means the account or accounts maintained with respect to each Participant under the Plan. The Deferred Compensation Account shall be credited with Participant Deferral Credits and Employer Credits, credited or debited for deemed investment gains or losses, and adjusted for payments in accordance with the rules and elections in effect under Section 8. As permitted in the Adoption Agreement, the Deferred Compensation Account of a Participant may consist of one or more accounts including In-Service or Education Accounts, if applicable. A Participant may elect payment options for each account as described in Section 7.1 and deemed investments for each account as described in Section 8.2.
	
 

	
2.11
	
"Disabled or Disability" means Disabled or Disability within the meaning of Section 409A of the Code and the regulations thereunder. Generally, this means that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering Employees of the Employer.
	
 

	
2.12
	
“Education Account” is an In-Service Account which will be used by the Participant for educational purposes.
	
 

	
 
	
2.13
	
"Effective Date" shall be the date designated in the Adoption Agreement.

 

	
2.14
	
"Employee" means an individual in the Service of the Employer if the relationship between the individual and the Employer is the legal relationship of employer
	
 

 

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and employee. An individual shall cease to be an Employee upon the Employee's Separation from Service.

	
2.15
	
"Employer" means the Company, as identified in the Adoption Agreement, and any Participating Employer which adopts this Plan. An Employer may be a corporation, a limited liability company, a partnership or sole proprietorship.
	
 

	
2.16
	
"Employer Credits" means the amounts credited to the Participant's Deferred Compensation Account by the Employer pursuant to the provisions of Section 4.2.
	
 

	
2.17
	
"Grandfathered Amounts" means, if applicable, the amounts that were deferred under the Plan and were earned and vested within the meaning of Section 409A of the Code and regulations thereunder as of December 31, 2004. Grandfathered Amounts shall be subject to the terms designated in the Plan which were in effect as of October 3, 2004.
	
 

	
2.18
	
"Independent Contractor" means an individual in the Service of the Employer if the relationship between the individual and the Employer is not the legal relationship of employer and employee. An individual shall cease to be an Independent Contractor upon the termination of the Independent Contractor's Service. An Independent Contractor shall include a director of the Employer who is not an Employee.
	
 

	
2.19
	
"In-Service Account" means a separate account to be kept for each Participant that has elected to take in-service distributions as described in Section 5.4. The In-Service Account shall be adjusted in the same manner and at the same time as the Deferred Compensation Account under Section 8 and in accordance with the rules and elections in effect under Section 8.
	
 

 

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2.20
	
"Normal Retirement Age" of a Participant means the age designated in  the Adoption Agreement.
	
 

	
2.21
	
"Participant" means with respect to any Plan Year an Employee or Independent Contractor who has been designated by the Committee as a Participant and who has entered the Plan or who has a Deferred Compensation Account under the Plan; provided that if the Participant is an Employee, the individual must be a highly compensated or management employee of the Employer within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.
	
 

	
2.22
	
"Participant Deferral Credits" means the amounts credited to the Participant's Deferred Compensation Account by the Employer pursuant to the provisions of Section 4.1.
	
 

	
2.23
	
"Participating Employer" means any trade or business (whether or not incorporated) which adopts this Plan with the consent of the Company identified in the Adoption Agreement.
	
 

	
2.24
	
"Participation Agreement" means a written agreement entered into between a Participant and the Employer pursuant to the provisions of Section 4.1
	
 

	
2.25
	
"Performance-Based Compensation" means compensation where the amount of, or entitlement to, the compensation is contingent on the satisfaction of preestablished organizational or individual performance criteria relating to a performance period of at least twelve months. Organizational or individual performance criteria are considered preestablished if established in writing within 90 days after the commencement of the period of service to which the criteria relates, provided that the outcome is substantially uncertain at the time the criteria are established. Performance-based
	
 

 

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compensation may include payments based upon subjective performance criteria as provided in regulations and administrative guidance promulgated under Section 409A of the Code.

	
2.26
	
"Plan" means The Executive Nonqualified Excess Plan, as herein set out and as set out in the Adoption Agreement, or as duly amended. The name of the Plan as applied to the Employer shall be designated in the Adoption Agreement.
	
 

	
2.27
	
"Plan-Approved Domestic Relations Order" shall mean a judgment, decree, or order (including the approval of a settlement agreement) which is:
	
 

	
 
	
2.27.1
	
Issued pursuant to a State's domestic relations law;

 

	
 
	
2.27.2
	
Relates to the provision of child support, alimony payments or marital property rights to a Spouse, former Spouse, child or other dependent of the Participant;
	
 

 

	
 
	
2.27.3
	
Creates or recognizes the right of a Spouse, former Spouse, child or other dependent of the Participant to receive all or a portion of the Participant's benefits under the Plan;
	
 

 

	
 
	
2.27.4
	
Requires payment to such person of their interest in the Participant's benefits in a lump sum payment at a specific time; and
	
 

 

	
 
	
2.27.5
	
Meets such other requirements established by the Committee.

 

	
2.28
	
"Plan Year" means the twelve-month period ending on the last day of the month designated in the Adoption Agreement; provided that the initial Plan Year may have fewer than twelve months.
	
 

	
2.29
	
"Qualifying Distribution Event"  means (i) the Separation from Service   of the Participant, (ii) the date the Participant becomes Disabled, (iii) the death of the Participant, (iv) the time specified by the Participant for an In-Service or Education Distribution, (v) a Change in Control Event, or (vi) an Unforeseeable Emergency, each to the extent provided in Section 5.
	
 

 

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2.30
	
"Seniority Date" shall have the meaning designated in the Adoption Agreement.
	
 

	
2.31
	
"Separation from Service" or "Separates from Service" means a "separation from service" within the meaning of Section 409A of the Code.
	
 

	
2.32
	
"Service" as an Employee means employment by the Employer. For purposes of the Plan, the employment relationship is treated as continuing intact while the Employee is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Employee's right to reemployment is provided either by statute or contract. If the Participant is an Independent Contractor, "Service" shall mean the period during which the contractual relationship exists between the Employer and the Participant. The contractual relationship is not terminated if the Participant anticipates a renewal of the contract or becomes an Employee.
	
 

	
2.33
	
"Service Bonus" means any bonus paid to a Participant by the Employer which is not Performance-Based Compensation.
	
 

	
2.34
	
"Specified Employee" means an Employee who meets the requirements for key employee treatment under Section 416(i)(l)(A)(i), (ii) or (iii) of the Code (applied in accordance with the regulations thereunder and without regard to Section 416(i)(5) of the Code) at any time during the twelve month period ending on December 31 of each year (the "identification date"). If the person is a key employee as of any identification date, the person is treated as a Specified Employee for the twelve-month period beginning on the first day of the fourth month following the identification date. Unless binding corporate action is taken to establish different rules for determining Specified Employees for all plans of the Company and its controlled group members that are subject to Section 409A of the
	
 

 

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Code, the foregoing rules and the other default rules under the regulations of Section 409A of the Code shall apply.

	
2.35
	
"Spouse" or ''Surviving Spouse" means, except as otherwise provided in the Plan, a person who is the legally married spouse or surviving spouse of a Participant.
	
 

	
2.36
	
"Unforeseeable Emergency" means an "unforeseeable emergency" within the meaning of Section 409A of the Code.
	
 

	
2.37
	
"Years of Service" means each Plan Year of Service completed by the Participant. For vesting purposes, Years of Service shall be calculated from the date designated in the Adoption Agreement and Service shall be based on service with the Company and all Participating Employers.
	
 

Section 3.Participation:

 

The Committee in its discretion shall designate each Employee or Independent Contractor who is eligible to participate in the Plan. A Participant who Separates from Service with the Employer and who later returns to Service will not be an Active Participant under the Plan except upon satisfaction of such terms and conditions as the Committee shall establish upon the Participant's return to Service, whether or not the Participant shall have a balance remaining in his Deferred Compensation Account under the Plan on the date of the return to Service.

Section 4.Credits to Deferred Compensation Account:

 

	
4.1
	
Participant Deferral Credits. To the extent provided in the Adoption Agreement, each Active Participant may elect, by entering into a Participation Agreement with the Employer, to defer the receipt of Compensation from the Employer by a dollar amount or percentage specified in the Participation Agreement. The amount of
	
 

 

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Compensation the Participant elects to defer, the Participant Deferral Credit, shall be credited by the Employer to the Deferred Compensation Account maintained for the Participant pursuant to Section 8. The following special provisions shall apply with respect to the Participant Deferral Credits of a Participant:

	
 
	
4.1.1
	
The Employer shall credit to the Participant's Deferred Compensation Account on each Crediting Date an amount equal to the total Participant Deferral Credit for the period ending on such Crediting Date.
	
 

 

	
 
	
4.1.2
	
An election pursuant to this Section 4.1 shall be made by the Participant by executing and delivering a Participation Agreement to the Committee. Except as otherwise provided in this Section 4.1, the Participation Agreement shall become effective with respect to such Participant as of the first day of January following the date such Participation Agreement is received by the Committee. A Participant's election may be changed at any time prior to the last permissible date for making the election as permitted in this Section 4.1, and shall thereafter be irrevocable. Any election of a Participant shall continue in effect for the time period as set forth in the Adoption Agreement and shall be described as evergreen or non-evergreen as appropriate.
	
 

 

	
 
	
4.1.3
	
A Participant may execute and deliver a Participation Agreement to the Committee within 30 days after the date the Participant first becomes eligible to participate in the Plan. After the 30 day period expires, or after any shorter time period as agreed to by the Participant and the Committee, the latest election made by the Participant during that period becomes irrevocable. Such election shall then be effective as of the first payroll period commencing following the date the Participation Agreement becomes irrevocable. Whether a Participant is treated as newly eligible for participation under this Section shall be determined in accordance with Section 409A of the Code and the regulations thereunder, including (i) rules that treat all elective deferral account balance plans as one plan, and (ii) rules that treat a previously eligible Employee as newly eligible if his benefits had been previously distributed or if he has been ineligible for 24 months. For Compensation that is earned based upon a specified performance period (for example, an annual bonus), where a deferral election is made under this Section but after the beginning of the performance period, the election will only apply to the portion of the Compensation equal to the total amount of the Compensation for the service period multiplied by the ratio of the number of days remaining in the performance period after the date the election becomes irrevocable over the total number of days in the performance period.
	
 

 

	
 
	
4.1.4
	
A Participant may unilaterally modify a Participation Agreement (either to terminate, increase or decrease the portion of his future Compensation which is subject to deferral within the percentage limits set forth in Section 4.1 of
	
 

 

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the Adoption Agreement) by providing a written modification of the Participation Agreement to the Committee. The modification shall become effective as of the first day of January following the date such written modification is received by the Committee, or at such later date as required under Section 409A of the Code.

 

	
 
	
4.1.5
	
If the Participant performed services continuously from the later of the beginning of the performance period or the date upon which the performance criteria are established through the date upon which the Participant makes an initial deferral election, a Participation Agreement relating to the deferral of Performance- Based Compensation may be executed and delivered to the Committee no later than the date which is 6 months prior to the end of the performance period, provided that in no event may an election to defer Performance-Based Compensation be made after such Compensation has become readily ascertainable.
	
 

 

	
 
	
4.1.6
	
If the Employer has a fiscal year other than the calendar year, Compensation relating to Service in the fiscal year of the Employer (such as a bonus based on the fiscal year of the Employer), of which no amount is paid or payable during the fiscal year, may be deferred at the Participant's election if the election to defer is made not later than the close of the Employer's fiscal year next preceding the first fiscal year in which the Participant performs any services for which such Compensation is payable.
	
 

 

	
 
	
4.1.7
	
Compensation payable after the last day of the Participant's taxable year solely for services provided during the final payroll period containing the last day of the Participant's taxable year (i.e., December 31) is treated for purposes of this Section 4.1 as Compensation for services performed in the subsequent taxable year.
	
 

 

	
 
	
4.1.8
	
The Committee may from time to time establish policies or rules consistent with the requirements of Section 409A of the Code to govern the manner in which Participant Deferral Credits may be made.
	
 

 

	
 
	
4.1.9
	
If a Participant becomes Disabled all currently effective deferral elections for such Participant shall be cancelled. At the time the participant is no longer Disabled, subsequent elections to defer future compensation will be permitted under this Section 4.
	
 

 

	
 
	
4.1.10
	
If a Participant applies for and receives a distribution on account of an Unforeseeable Emergency, all currently effective deferral elections for such Participant shall be cancelled. Subsequent elections to defer future compensation will be permitted under this Section 4.
	
 

 

	
 
	
4.1.11
	
If a Participant receives a hardship distribution from a 401(k) or a 403(b) plan that requires all currently effective deferral elections under all plans maintained by the Employer to be cancelled, then all currently effective deferral elections shall be cancelled until the later of the beginning of the next calendar year
	
 

 

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or six months after the date of the hardship distribution. Subsequent elections to defer future compensation under this Section 4 will not be effective until the later of the beginning of the next calendar year or six months after the date of the hardship distribution. If the effective date of such an election occurs after the beginning of the next calendar year, as permitted by the Employer, a Participant may make elections for the next calendar year prior to January 1st of the next calendar year, but these elections will not become effective until the end of the six- month waiting period.

 

	
4.2
	
Employer Credits. If designated by the Employer in the Adoption Agreement, the Employer shall cause the Committee to credit to the Deferred Compensation Account of each Active Participant an Employer Credit as determined in accordance with the Adoption Agreement. A Participant must make distribution elections with respect to any Employer Credits credited to his Deferred Compensation Account by the deadline that would apply under Section 4.1 for distribution elections with respect to Participant Deferral Credits credited at the same time, on a Participation Agreement that is timely executed and delivered to the Committee pursuant to Section 4.1. If no distribution election is made, vested amounts in the Deferred Compensation Account will be distributed in a lump sum upon the earliest of any Qualifying Distribution Event limited to Separation from Service, Disability, Death or Change in Control.
	
 

	
4.3
	
Deferred Compensation Account. All Participant Deferral Credits and Employer Credits shall be credited to the Deferred Compensation Account of the Participant as provided in Section 8.
	
 

Section 5. Qualifying Distribution Events:

 

	
5.1
	
Separation from Service. If the Participant Separates from Service with  the Employer, the vested balance in the Deferred Compensation Account shall be paid to the Participant by the Employer as provided in Section 7. Notwithstanding the foregoing, no distribution shall be made earlier than six months after the date of Separation from
	
 

 

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Service (or, if earlier, the date of death) with respect to a Participant who as of the date of Separation from Service is a Specified Employee of a corporation the stock in which is traded on an established securities market or otherwise. Any payments to which such Specified Employee would be entitled during the first six months following the date of Separation from Service shall be accumulated and paid on the first day of the seventh month following the date of Separation from Service, and shall be adjusted for deemed investment gain and loss incurred during the six month period.

	
5.2
	
Disability. If the Employer designates in the Adoption Agreement that distributions are permitted under the Plan when a Participant becomes Disabled, and the Participant becomes Disabled while in Service, the vested balance in the Deferred Compensation Account shall be paid to the Participant by the Employer as provided in Section 7.
	
 

	
5.3
	
Death. If the Participant dies while in Service, the Employer shall pay a benefit to the Participant's Beneficiary in the amount designated in the Adoption Agreement. Payment of such benefit shall be made by the Employer as provided in Section 7.
	
 

	
5.4
	
In-Service or Education Distributions. If the Employer designates in the Adoption Agreement that in-service or education distributions are permitted under the Plan, a Participant may designate in the Participation Agreement to have a specified amount credited to the Participant's In-Service or Education Account for in-service or education distributions at the date specified by the Participant. In no event may an in- service or education distribution of an amount be made before the date that is two years after the first day of the year in which any deferral election to such In-Service or Education
	
 

 

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Account became effective. Notwithstanding the foregoing, if a Participant incurs a Qualifying Distribution Event prior to the date on which the entire balance in the In-Service or Education Account has been distributed, then the vested balance in the In-Service or Education Account on the date of the Qualifying Distribution Event shall be paid as provided under Section 7.1 for payments on such Qualifying Distribution Event.

	
5.5
	
Change in Control Event. If the Employer designates in the Adoption Agreement that distributions are permitted under the Plan upon the occurrence of a Change in Control Event, the Participant may designate in the Participation Agreement to have the vested balance in the Deferred Compensation Account paid to the Participant upon a Change in Control Event by the Employer as provided in Section 7.
	
 

	
5.6
	
Unforeseeable Emergency. If the Employer designates in the Adoption Agreement that distributions are permitted under the Plan upon the occurrence of an Unforeseeable Emergency event, a distribution from the Deferred Compensation Account may be made to a Participant in the event of an Unforeseeable Emergency, subject to the following provisions:
	
 

	
 
	
5.6.1
	
A Participant may, at any time prior to his Separation from Service for any reason, make application to the Committee to receive a distribution in a lump sum of all or a portion of the vested balance in the Deferred Compensation Account (determined as of the date the distribution, if any, is made under this Section 5.6) because of an Unforeseeable Emergency. A distribution because of an Unforeseeable Emergency shall not exceed the amount required to satisfy the Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of such distribution, after taking into account the extent to which the Unforeseeable Emergency may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant's assets (to the extent the liquidation of such assets would not itself cause severe financial hardship) or by stopping current deferrals under the Plan pursuant to Section 4.1.10.
	
 

 

	
 
	
5.6.2
	
The Participant's request for a distribution on account of Unforeseeable Emergency must be made in writing to the Committee. The request must specify the nature of the financial hardship, the total amount requested to be
	
 

 

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distributed from the Deferred Compensation Account, and the total amount of the actual expense incurred or to be incurred on account of the Unforeseeable Emergency.

 

	
 
	
5.6.3
	
If a distribution under this Section 5.6 is approved by the Committee, such distribution will be made as soon as practicable following the date it is approved. The processing of the request shall be completed as soon as practicable from the date on which the Committee receives the properly completed written request for a distribution on account of an Unforeseeable Emergency. If a Participant's Separation from Service occurs after a request is approved in accordance with this Section 5.6.3, but prior to distribution of the full amount approved, the approval of the request shall be automatically null and void and the benefits which the Participant is entitled to receive under the Plan shall be distributed in accordance with the applicable distribution provisions of the Plan.
	
 

 

	
 
	
5.6.4
	
The Committee may from time to time adopt additional policies or rules consistent with the requirements of Section 409A of the Code to govern the manner in which such distributions may be made so that the Plan may be conveniently administered.
	
 

 

Section 6. Vesting:

 

A Participant shall be fully vested in the portion of his Deferred Compensation Account attributable to Participant Deferral Credits, and all income, gains and losses attributable thereto. A Participant shall become fully vested in the portion of his Deferred Compensation Account attributable to Employer Credits, and income, gains and losses attributable thereto, in accordance with the vesting schedule and provisions designated by the Employer in the Adoption Agreement. If a Participant's Deferred Compensation Account is not fully vested upon Separation from Service, the portion of the Deferred Compensation Account that is not fully vested shall thereupon be forfeited.

Section 7.Distribution Rules:

 

	
7.1
	
Payment Options. The Employer shall designate in the Adoption Agreement the payment options which may be elected by the Participant (lump sum, annual installments, or a combination of both). Different payment options may be made available
	
 

 

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for each Qualifying Distribution Event, and different payment options may be available for different types of Separations from Service, all as designated in the Adoption Agreement. The Participant shall elect in the Participation Agreement the method under which the vested balance in the Deferred Compensation Account will be distributed from among the designated payment options. The Participant may at such time elect a different method of payment for each Qualifying Distribution Event as specified in the Adoption Agreement. If the Participant is permitted by the Employer in the Adoption Agreement to elect different payment options and does not make a valid election, the vested balance in the Deferred Compensation Account will be distributed as a lump sum upon the Qualifying Distribution Event.

Notwithstanding the foregoing, if certain Qualifying Distribution Events occur prior to the date on which the vested balance of a Participant's Deferred Compensation Account is completely paid pursuant to this Section 7.1 following the occurrence of certain Qualifying Distribution Events, the following rules apply:

	
 
	
7.1.1
	
If the currently effective Qualifying Distribution Event is a Separation from Service or Disability, and the Participant subsequently dies, the remaining unpaid vested balance of a Participant's Deferred Compensation Account shall be paid as a lump sum.
	
 

 

	
 
	
7.1.2
	
If the currently effective Qualifying Distribution Event is a Change in Control Event, and any subsequent Qualifying Distribution Event occurs (except an In-Service or Education Distribution described in Section 2.29(iv)), the remaining unpaid vested balance of a Participant's Deferred Compensation Account shall be paid as provided under Section 7.1 for payments on such subsequent Qualifying Distribution Event.
	
 

 

	
7.2
	
Timing of Payments. Payment shall be made in the manner elected by the Participant and shall commence as soon as practicable after (but no later than 60 days after) the distribution date specified for the Qualifying Distribution Event. For each payment, the
	
 

 

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Committee must specify a date for the Deferred Compensation Account(s) to be valued. In the event the Participant fails to make a valid election of the payment method, the distribution will be made in a single lump sum payment as soon as practicable after (but no later than 60 days after) the Qualifying Distribution Event. A payment may be further delayed to the extent permitted in accordance with regulations and guidance under Section 409A of the Code.

	
7.3
	
Installment Payments. If the Participant elects to receive installment payments upon a Qualifying Distribution Event, the payment of each installment shall be made on the anniversary of the date of the first installment payment, and the amount of the installment shall be adjusted on such anniversary for credits or debits to the Participant's account pursuant to Section 8 of the Plan. Such adjustment shall be made by dividing the balance in the Deferred Compensation Account on such date by the number of installments remaining to be paid hereunder; provided that the last installment due under the Plan shall be the entire amount credited to the Participant's account on the date of payment.
	
 

	
7.4
	
De Minimis Amounts. Notwithstanding any payment election made by the Participant, if the Employer designates a pre-determined de minimis amount in the Adoption Agreement, the vested balance in all Deferred Compensation Accounts of the Participant will be distributed in a single lump sum payment if at the time of a permitted Qualifying Distribution Event the vested balance does not exceed such pre-determined de minimis amount; provided, however, that such distribution will be made only where the Qualifying Distribution Event is a Separation from Service, death, Disability (if applicable) or Change in Control Event (if applicable). Such payment shall be made on or before the later of (i) December 31 of the calendar year in which the Qualifying Distribution Event
	
 

 

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occurs, or (ii) the date that is 2-1/2 months after the Qualifying Distribution Event occurs. In addition, the Employer may distribute a Participant's vested balance in all of the Participant’s Deferred Compensation Accounts at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant's entire interest in the Plan as provided under Section 409A of the Code.

	
7.5
	
Subsequent Elections. With the consent of the Committee, a Participant may delay or change the method of payment of the Deferred Compensation Account subject to the following requirements:
	
 

	
 
	
7.5.1
	
The new election may not take effect until at least 12 months after the date on which the new election is made.
	
 

 

	
 
	
7.5.2
	
If the new election relates to a payment for a Qualifying Distribution Event other than the death of the Participant, the Participant becoming Disabled, or an Unforeseeable Emergency, the new election must provide for the deferral of the payment for a period of at least five years from the date such payment would otherwise have been made.
	
 

 

	
 
	
7.5.3
	
If the new election relates to a payment from the In-Service or Education Account, the new election must be made at least 12 months prior to the date of the first scheduled payment from such account.
	
 

 

For purposes of this Section 7.5 and Section 7.6, a payment is each separately identified amount to which the Participant is entitled under the Plan; provided, that entitlement to a series of installment payments is treated as the entitlement to a single payment.

	
7.6
	
Acceleration Prohibited. The acceleration of the time or schedule of any payment due under the Plan is prohibited except as expressly provided in regulations and administrative guidance promulgated under Section 409A of the Code (such as accelerations for domestic relations orders and employment taxes). It is not an acceleration of the time or schedule of payment if the Employer waives or accelerates the vesting requirements applicable to a benefit under the Plan.
	
 

 

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7.7
	
Residual Distributions. If calculation of the amount of any credit to a Participant’s Deferred Compensation Account is not administratively practicable due to events beyond the control of the Employer, payments may be made to the Participant for residual amounts contributed to or remaining in a Deferred Compensation Account after payments under the provisions of this Section 7 have commenced or been completed. The residual amount shall be credited to the Deferred Compensation Account when the calculation of the amount becomes administratively practicable. Examples of residual amounts include, but are not limited to, additional investment returns credited after payment (due to dividends or pricing changes) or additional contributions made after payment (such as an annual bonus deferral or an Employer Credit). Payments that would have been made had the residual amount been calculable at the benefit commencement date shall be made up as soon as practicable after crediting to the Deferred Compensation Account, in no case later than the end of the year in which calculation of the amount becomes administratively practicable.
	
 

	
7.8
	
Ineffective Deferrals. If a Participant deferral election under Section 4 to contribute to an In-Service or Education Account carries over to a subsequent year (an evergreen election) and the deferral election is ineffective (i.e., the distribution election would cause payment in the current or prior years), the amount deferred will be credited to a Deferred Compensation Account that is not an In-Service or Education Account. If the Participant only has one account of this type, the amount deferred will be credited to that account. If the Participant has multiple accounts of this type, and one of the accounts has a lump sum at Separation from Service distribution election, the amount deferred will be credited to that account. If the Participant has multiple accounts of this type and does not
	
 

 

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have an account with a lump sum at Separation from Service distribution election, one will be established with a lump sum at Separation from Service distribution election and the amount deferred will be credited to this account.

Section 8.Accounts; Deemed Investment; Adjustments to Account:

 

	
8.1
	
Accounts. The Committee shall establish a book reserve account, entitled the "Deferred Compensation Account," on behalf of each Participant. The Committee shall also establish an In-Service or Education Account as a part of the Deferred Compensation Account of each Participant, if applicable. The amount credited to the Deferred Compensation Account shall be adjusted pursuant to the provisions of Section 8.3.
	
 

	
8.2
	
Deemed Investments. The Deferred Compensation Account of a Participant shall be credited with an investment return determined as if the account were invested in one or more investment funds made available by the Committee. The Participant shall elect the investment funds in which his Deferred Compensation Account shall be deemed to be invested. Such election shall be made in the manner prescribed by the Committee and shall take effect upon the entry of the Participant into the Plan. The investment election of the Participant shall remain in effect until a new election is made by the Participant. In the event the Participant fails for any reason to make an effective election of the investment return to be credited to his account, the investment return shall be determined by the Committee.
	
 

	
8.3
	
Adjustments to Deferred Compensation Account. With respect to each Participant who has a Deferred Compensation Account under the Plan, the amount credited to such account shall be adjusted by the following debits and credits, at the times and in the order stated:
	
 

 

19

 

 

	
 
	
8.3.1
	
The Deferred Compensation Account shall be debited each business day with the total amount of any payments made from such account since the last preceding business day to him or for his benefit. Unless otherwise specified by the Employer, each deemed investment fund will be debited pro-rata based on the value of the investment funds as of the end of the preceding business day.
	
 

 

	
 
	
8.3.2
	
The Deferred Compensation Account shall be credited on each Crediting Date with the total amount of any Participant Deferral Credits and Employer Credits to such account since the last preceding Crediting Date.
	
 

 

	
 
	
8.3.3
	
The Deferred Compensation Account shall be credited or debited on each day securities are traded on a national stock exchange with the amount of deemed investment gain or loss resulting from the performance of the deemed investment funds elected by the Participant in accordance with Section 8.2. The amount of such deemed investment gain or loss shall be determined by the Committee and such determination shall be final and conclusive upon all concerned.
	
 

 

Section 9.Administration by Committee:

 

	
9.1
	
Membership of Committee. If the Committee consists of individuals appointed by the Board, they will serve at the pleasure of the Board. Any member of the Committee may resign, and his successor, if any, shall be appointed by the Board.
	
 

	
9.2
	
General Administration. The Committee shall be responsible for the operation and administration of the Plan and for carrying out its provisions. The Committee shall have the full authority and discretion to make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan and decide or resolve any and all questions, including interpretations of this Plan, as may arise in connection with this Plan. Any such action taken by the Committee shall be final and conclusive on any party. To the extent the Committee has been granted discretionary authority under the Plan, the Committee’s prior exercise of such authority shall not obligate it to exercise its authority in a like fashion thereafter. The Committee shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and reports furnished by any actuary,
	
 

 

20

 

 

accountant, controller, counsel or other person employed or engaged by the Employer with respect to the Plan. The Committee may, from time to time, employ agents and delegate to such agents, including Employees of the Employer, such administrative or other duties as it sees fit.

	
9.3
	
Indemnification. To the extent not covered by insurance, the Employer shall indemnify the Committee, each Employee, officer, director, and agent of the Employer, and all persons formerly serving in such capacities, against any and all liabilities or expenses, including all legal fees relating thereto, arising in connection with the exercise of their duties and responsibilities with respect to the Plan, provided however that the Employer shall not indemnify any person for liabilities or expenses due to that person’s own gross negligence or willful misconduct.
	
 

Section 10.Contractual Liability, Trust:

 

	
10.1
	
Contractual Liability. Unless otherwise elected in the Adoption Agreement, the Company shall be obligated to make all payments hereunder. This obligation shall constitute a contractual liability of the Company to the Participants, and such payments shall be made from the general funds of the Company. The Company shall not be required to establish or maintain any special or separate fund, or otherwise to segregate assets to assure that such payments shall be made, and the Participants shall not have any interest in any particular assets of the Company by reason of its obligations hereunder. To the extent that any person acquires a right to receive payment from the Company under the Plan, such right shall be no greater than the right of an unsecured creditor of the Company.
	
 

 

21

 

 

	
10.2
	
Trust. The Employer may establish a trust to assist it in meeting its obligations under the Plan. Any such trust shall conform to the requirements of a grantor trust under Revenue Procedures 92-64 and 92-65 and at all times during the continuance of the trust the principal and income of the trust shall be subject to claims of general creditors of the Employer under federal and state law. The establishment of such a trust would not be intended to cause Participants to realize current income on amounts contributed thereto, and the trust would be so interpreted and administered.
	
 

Section 11.Allocation of Responsibilities:

 

The persons responsible for the Plan and the duties and responsibilities allocated to each are as follows:

	
 
	
11.1
	
Board.

 

	
 
	
(i)
	
To amend the Plan;

	
 
	
(ii)
	
To appoint and remove members of the Committee; and

	
 
	
(iii)
	
To terminate the Plan as permitted in Section 14.

	
 
	
11.2
	
Committee.

	
 
	
(i)
	
To designate Participants;

(ii)To interpret the provisions of the Plan and to determine the rights of the Participants under the Plan, except to the extent otherwise provided in Section 16 relating to claims procedure;

 

(iii)To administer the Plan in accordance with its terms, except to the extent powers to administer the Plan are specifically delegated to another person or persons as provided in the Plan;

 

(iv)To account for the amount credited to the Deferred Compensation Account of a Participant;

 

	
 
	
(v)
	
To direct the Employer in the payment of benefits;

 

(vi)To file such reports as may be required with the United States Department of Labor, the Internal Revenue Service and any other government agency to which reports may be required to be submitted from time to time; and

 

22

 

 

 

(vii)To administer the claims procedure to the extent provided in Section 16.

 

Section 12.Benefits Not Assignable; Facility of Payments:

 

	
12.1
	
Benefits Not Assignable. No portion of any benefit credited or paid under the Plan with respect to any Participant shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void, nor shall any portion of such benefit be in any manner payable to any assignee, receiver or any one trustee, or be liable for his debts, contracts, liabilities, engagements or torts.
	
 

	
12.2
	
Plan-Approved Domestic Relations Orders. The Committee shall  establish procedures for determining whether an order directed to the Plan is a Plan- Approved Domestic Relations Order. If the Committee determines that an order is a Plan- Approved Domestic Relations Order, the Committee shall cause the payment of amounts pursuant to or segregate a separate account as provided by (and to prevent any payment or act which might be inconsistent with) the Plan-Approved Domestic Relations Order notwithstanding Section 12.1.
	
 

	
12.3
	
Payments to Minors and Others. If any individual entitled to receive a payment under the Plan shall be physically, mentally or legally incapable of receiving or acknowledging receipt of such payment, the Committee, upon the receipt of satisfactory evidence of his incapacity and satisfactory evidence that another person or institution is maintaining him and that no guardian or committee has been appointed for him, may cause any payment otherwise payable to him to be made to such person or institution so
	
 

 

23

 

 

maintaining him. Payment to such person or institution shall be in full satisfaction of all claims by or through the Participant to the extent of the amount thereof.

Section 13.Beneficiary:

 

The Participant's Beneficiary shall be the person, persons, entity or entities designated by the Participant on the Beneficiary designation form provided by and filed with the Committee or its designee. If the Participant does not designate a Beneficiary, the Beneficiary shall be his Surviving Spouse. If the Participant does not designate a Beneficiary and has no Surviving Spouse, the Beneficiary shall be the Participant's estate. The designation of a Beneficiary may be changed or revoked only by filing a new Beneficiary designation form with the Committee or its designee. If a Beneficiary (the "primary Beneficiary") is receiving or is entitled to receive payments under the Plan and dies before receiving all of the payments due him, the balance to which he is entitled shall be paid to the contingent Beneficiary, if any, named in the Participant's current Beneficiary designation form. If there is no contingent Beneficiary, the balance shall be paid to the estate of the primary Beneficiary. Any Beneficiary may disclaim all or any part of any benefit to which such Beneficiary shall be entitled hereunder by filing a written disclaimer with the Committee before payment of such benefit is to be made. Such a disclaimer shall be made in a form satisfactory to the Committee and shall be irrevocable when filed. Any benefit disclaimed shall be payable from the Plan in the same manner as if the Beneficiary who filed the disclaimer had predeceased the Participant.

Section 14.Amendment and Termination of Plan:

 

The Company may amend any provision of the Plan or terminate the Plan at any time; provided, that in no event shall such amendment or termination reduce the balance in

 

24

 

 

any Participant's Deferred Compensation Account as of the date of such amendment or termination, nor shall any such amendment materially adversely affect the Participant relating to the payment of such Deferred Compensation Account. Notwithstanding the foregoing, the following special provisions shall apply:

	
14.1
	
Termination in the Discretion of the Employer. Except as otherwise provided in Sections 14.2, the Company in its discretion may terminate the Plan and distribute benefits to Participants subject to the following requirements and any others specified under Section 409A of the Code:
	
 

	
 
	
14.1.1
	
All arrangements sponsored by the Employer that would be aggregated with the Plan under Section 1.409A-l(c) of the Treasury Regulations are terminated.
	
 

 

	
 
	
14.1.2
	
No payments other than payments that would be payable under the terms of the Plan if the termination had not occurred are made within 12 months of the termination date.
	
 

 

	
 
	
14.1.3
	
All benefits under the Plan are paid within 24 months of the termination date.
	
 

 

	
 
	
14.1.4
	
The Employer does not adopt a new arrangement that would be aggregated with the Plan under Section 1.409A-1(c) of the Treasury Regulations providing for the deferral of compensation at any time within 3 years following the date of termination of the Plan.
	
 

 

	
 
	
14.1.5
	
The termination does not occur proximate to a downturn in the financial health of the Employer.
	
 

 

	
14.2
	
Termination Upon Change in Control Event. If the Company terminates the Plan within thirty days preceding or twelve months following a Change in Control Event, the Deferred Compensation Account of each Participant shall become payable to the Participant in a lump sum within twelve months following the date of termination, subject to the requirements of Section 409A of the Code.
	
 

 

25

 

 

Section 15.Communication to Participants:

 

The Employer shall make a copy of the Plan available for inspection by Participants and their beneficiaries during reasonable hours at the principal office of the Employer.

Section 16.Claims Procedure:

 

The following claims procedure shall apply with respect to the Plan:

 

	
16.1
	
Filing of a Claim for Benefits. If a Participant or Beneficiary (the "claimant") believes that he is entitled to benefits under the Plan which are not being paid to him or which are not being accrued for his benefit, he shall file a written claim therefore with the Committee.
	
 

	
16.2
	
Notification to Claimant of Decision. Within 90 days after receipt of a claim by the Committee (or within 180 days if special circumstances require an extension of time), the Committee shall notify the claimant of the decision with regard to the claim. In the event of such special circumstances requiring an extension of time, there shall be furnished to the claimant prior to expiration of the initial 90-day period written notice of the extension, which notice shall set forth the special circumstances and the date by which the decision shall be furnished. If such claim shall be wholly or partially denied, notice thereof shall be in writing and worded in a manner calculated to be understood by the claimant, and shall set forth: (i) the specific reason or reasons for the denial; (ii) specific reference to pertinent provisions of the Plan on which the denial is based; (iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) an explanation of the procedure for review of the denial and the time limits applicable to such
	
 

 

26

 

 

procedures, including a statement of the claimant's right to bring a civil action under ERISA following an adverse benefit determination on review.

	
16.3
	
Procedure for Review. Within 60 days following receipt by the claimant of notice denying his claim, in whole or in part, or, if such notice shall not be given, within 60 days following the latest date on which such notice could have been timely given, the claimant may appeal denial of the claim by filing a written application for review with the Committee. Following such request for review, the Committee shall fully and fairly review the decision denying the claim. Prior to the decision of the Committee, the claimant shall be given an opportunity to review pertinent documents and to submit issues and comments in writing.
	
 

	
16.4
	
Decision on Review. The decision on review of a claim denied in whole or in part by the Committee shall be made in the following manner:
	
 

	
 
	
16.4.1
	
Within 60 days following receipt by the Committee of the request for review (or within 120 days if special circumstances require an extension of time), the Committee shall notify the claimant in writing of its decision with regard to the claim. In the event of such special circumstances requiring an extension of time, written notice of the extension shall be furnished to the claimant prior to the commencement of the extension.
	
 

 

	
 
	
16.4.2
	
With respect to a claim that is denied in whole or in part, the decision on review shall set forth specific reasons for the decision, shall be written in a manner calculated to be understood by the claimant, and shall set forth:
	
 

 

	
 
	
(i)
	
the specific reason or reasons for the adverse determination;

 

	
 
	
(ii)
	
specific reference to pertinent Plan provisions on which the adverse determination is based;
	
 

 

	
 
	
(iii)
	
a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits; and
	
 

 

	
 
	
(iv)
	
a statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain the
	
 

 

27

 

 

information about such procedures, as well as a statement of the claimant’s right to bring an action under ERISA section 502(a).

 

	
 
	
16.4.3
	
The decision of the Committee shall be final and conclusive.

 

	
16.5
	
Action by Authorized Representative of Claimant.  All actions set forth   in this Section 16 to be taken by the claimant may likewise be taken by a representative of the claimant duly authorized by him to act in his behalf on such matters. The Committee may require such evidence of the authority to act of any such representative as it may reasonably deem necessary or advisable.
	
 

	
 
	
16.6
	
Disability Claims

 

Notwithstanding any provision of the Plan to the contrary, if a claim for benefits is based on Disability, the following claims procedures shall apply: The Committee shall maintain a procedure under which any Participant or Beneficiary can file a claim for benefits under this Plan based on Disability.

	
 
	
16.6.1
	
After receiving a claim for benefits, the Committee will notify the Participant or Beneficiary of its claim determination within 45 days of the receipt of the claim. This period may be extended by 30 days if an extension is necessary to process the claim due to matters beyond the control of the Committee. A written notice of the extension, the reason for the extension and when the Committee expects to decide the claim, will be furnished to the Participant or Beneficiary within the initial 45-day period. This period may be extended for an additional 30 days beyond the original extension. A written notice of the additional extension, the reason for the additional extension and when the Committee expects to decide the claim, will be furnished to the Participant or Beneficiary within the first 30-day extension period if an additional extension of time is needed. However, if a period of time is extended due to a Participant or Beneficiary’s failure to submit information necessary to decide a claim, the period for making the benefit determination by the Committee will be tolled from the date on which the notification of the extension is sent to the Participant or Beneficiary until the date on which the Participant or Beneficiary responds to the request for additional information.
	
 

 

	
 
	
16.6.2
	
If a claim for benefits is denied, in whole or in part, a Participant or Beneficiary or his or her authorized representative, will receive a written notice of the denial. The notice will follow the rules of 29 C.F.R. § 2560.503-1(o) for
	
 

 

28

 

 

culturally and linguistically appropriate notices and will be written in a manner calculated to be understood by the Participant or Beneficiary. The notice will include:

 

	
 
	
(i)
	
the specific reason(s) for the denial,

 

	
 
	
(ii)
	
references to the specific Plan provisions on which the benefit determination was based,
	
 

 

	
 
	
(iii)
	
a description of any additional material or information necessary to perfect a claim and an explanation of why such information is necessary,
	
 

 

	
 
	
(iv)
	
a description of the Committee’s appeals procedures and applicable time limits, including, to the extent applicable, a statement of the right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review,
	
 

 

	
 
	
(v)
	
a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (i) the views presented by the claimant to the Committee of health care professionals treating the claimant and vocational professionals who evaluated the claimant; (ii) the views of medical or vocational experts whose advice was obtained on behalf of the Committee in connection with a claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (iii) a disability determination regarding the claimant presented by the claimant to the Committee made by the Social Security Administration,
	
 

 

	
 
	
(vi)
	
if the determination is based on medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the relevant medical circumstances, or a statement that such explanation will be provided free of charge upon request,
	
 

 

	
 
	
(vii)
	
either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse benefit determination, or a statement that such rules, guidelines, protocols, standards, or other similar criteria of the Plan do not exist, and
	
 

 

29

 

 

	
 
	
(viii)
	
a statement that the Participant or Beneficiary is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to his or her claim for benefits.
	
 

 

	
 
	
16.6.3
	
If a claim for benefits is denied, a Participant or Beneficiary, or his or her representative, may appeal the denied claim in writing within 180 days of receipt of the written notice of denial. The Participant or Beneficiary may submit any written comments, documents, records and any other information relating to the claim. Upon request, the Participant or Beneficiary will also have access to, and the right to obtain copies of, all documents, records and information relevant to his or her claim free of charge.
	
 

 

	
 
	
16.6.4
	
A full review of the information in the claim file and any new information submitted to support the appeal will be conducted. The claim decision will be made by a first review appeals committee appointed by the Employer. This committee will consist of individuals who were not involved in the initial benefit determination, nor will such individuals be subordinate to any person involved in the initial benefit determination. This review will not afford any deference to the initial benefit determination.
	
 

 

	
 
	
16.6.5
	
If the initial adverse decision was based in whole or in part on a medical judgment, the first review appeals committee will consult with a healthcare professional who has appropriate training and experience in the field of medicine involved in the medical judgment, was not consulted in the initial adverse benefit determination and is not a subordinate of the healthcare professional who was consulted in the initial adverse benefit determination.
	
 

 

	
 
	
16.6.6
	
Before an adverse benefit determination on review is issued, the first review appeals committee will provide the Participant or Beneficiary, free of charge, with any new or additional evidence considered, relied upon, or generated by the committee or other person making the benefit determination (or at the direction of the committee or such other person) in connection with the claim. Such evidence will be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the Participant or Beneficiary a reasonable opportunity to respond prior to that date.
	
 

 

	
 
	
16.6.7
	
Before the first review appeals committee issues an adverse benefit determination on review based on a new or additional rationale, the committee will provide the Participant or Beneficiary, free of charge, with the rationale. The rationale will be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the Participant or Beneficiary a reasonable opportunity to respond prior to that date.
	
 

 

30

 

 

	
 
	
16.6.8
	
The first review appeals committee will make a determination on an appealed claim within 45 days of the receipt of an appeal request. This period may be extended for an additional 45 days if the committee determines that special circumstances require an extension of time. A written notice of the extension, the reason for the extension and the date that the committee expects to render a decision will be furnished to the Participant or Beneficiary within the initial 45-day period. However, if the period of time is extended due to a Participant’s or Beneficiary’s failure to submit information necessary to decide the appeal, the period for making the benefit determination will be tolled from the date on which the notification of the extension is sent until the date on which the Participant or Beneficiary responds to the request for additional information.
	
 

 

	
 
	
16.6.9
	
If the claim on appeal is denied in whole or in part, a Participant or Beneficiary will receive a written notification of the denial. The notice will follow the rules of 29 C.F.R. § 2560.503-1(o) for culturally and linguistically appropriate notices and will be written in a manner calculated to be understood by the claimant. The notice will include:
	
 

 

	
 
	
(i)
	
the specific reason(s) for the adverse determination,

 

	
 
	
(ii)
	
references to the specific Plan provisions on which the determination was based,
	
 

 

	
 
	
(iii)
	
a statement regarding the right to receive upon request and free of charge reasonable access to, and copies of, all records, documents and other information relevant to the benefit claim,
	
 

 

	
 
	
(iv)
	
a description of the first review appeals committee’s review procedures and applicable time limits, including a statement of the right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review,
	
 

 

	
 
	
(v)
	
a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (i) the views presented by the claimant to the committee of health care professionals treating the claimant and vocational professionals who evaluated the claimant; (ii) the views of medical or vocational experts whose advice was obtained by or on behalf of the committee in connection with a claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (iii) a disability determination regarding the claimant presented by the claimant to the committee made by the Social Security Administration,
	
 

 

31

 

 

	
 
	
(vi)
	
if the determination is based on medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the relevant medical circumstances, or a statement that such explanation will be provided free of charge upon request, and
	
 

 

	
 
	
(vii)
	
either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse benefit determination, or a statement that such rules, guidelines, protocols, standards, or other similar criteria of the Plan do not exist.
	
 

 

	
 
	
16.6.10
	
If the appeal of the benefit claim denial is denied, a Participant or Beneficiary, or his or her representative, may make a second appeal of the denial in writing to the Committee within 180 days of the receipt of the written notice of denial. The Participant or Beneficiary may submit with the second appeal any written comments, documents, records and any other information relating to the claim. Upon request, the Participant or Beneficiary will also have access to, and the right to obtain copies of, all documents, records and information relevant to the claim free of charge.
	
 

 

	
 
	
16.6.11
	
Upon receipt of the second appeal, a full review of the information in the claim file and any new information submitted to support the appeal will be conducted. The claim decision will be made by a second review appeals committee appointed by the Employer. This committee will consist of individuals who were not involved in the initial benefit determination or the first review appeals committee, nor will such individuals be subordinate to any person involved in the initial benefit or first appeal determination.
	
 

 

	
 
	
16.6.12
	
If the first appeal was based in whole or in part on a medical judgment, the second appeals review committee will consult with a healthcare professional who has appropriate training and experience in the field of medicine involved in the medical judgment, was not consulted in the initial adverse benefit determination nor in the first appeal and is not a subordinate of the healthcare professional(s) consulted in the initial adverse benefit determination and first appeal.
	
 

 

	
 
	
16.6.13
	
Before the second appeals review committee issues a denial of the second claim appeal, the committee will provide the Participant or Beneficiary, free of charge, with any new or additional evidence considered, relied upon, or generated by the committee or other person making the benefit determination (or at the direction of the committee or such other person) in connection with the claim. Such evidence will be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required
	
 

 

32

 

 

to be provided to give the Participant or Beneficiary a reasonable opportunity to respond prior to that date.

 

	
 
	
16.6.14
	
Before the second review appeals committee issues a denial of the second claim appeal based on a new or additional rationale, the committee will provide the Participant or Beneficiary, free of charge, with the rationale. The rationale will be provided as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the Participant or Beneficiary a reasonable opportunity to respond prior to that date.
	
 

 

	
 
	
16.6.15
	
The second appeals review committee will make a determination on the second claim appeal within 45 days of the receipt of the appeal request. This period may be extended for an additional 45 days if the committee determines that special circumstances require an extension of time. A written notice of the extension, the reason for the extension and the date that the committee expects to render a decision will be furnished to the Participant or Beneficiary within the initial 45-day period. However, if the period of time is extended due to the Participant’s or Beneficiary’s failure to submit information necessary to decide the appeal, the period for making the benefit determination will be tolled from the date on which the notification of the extension is sent until the date on which the Participant or Beneficiary responds to the request for additional information.
	
 

 

	
 
	
16.6.16
	
If the claim on appeal is denied in whole or in part for a second time, the Participant or Beneficiary will receive a written notification of the denial. The notice will follow the rules of 29 C.F.R. § 2560.503-1(o) for culturally and linguistically appropriate notices and will be written in a manner calculated to be understood by the applicant. The notice will include the same information that was included in the first adverse determination letter and will identify the contractual limitations period that applies to the Participant’s or Beneficiary’s right to bring an action under section 502(a) of ERISA including the calendar date on which the contractual limitations period expires for the claim.
	
 

 

	
 
	
16.6.17
	
A claimant may not commence a judicial proceeding against any person, including the Committee, the Employer, the Board, the first or second appeals review committee(s), or any other person or committee, with respect to a claim for benefits without first exhausting the claims procedures set forth in the preceding paragraphs. No suit or legal action contesting in whole or in part any denial of benefits under the Plan shall be commenced later than the earlier of (i) the first anniversary of (A) the date of the notice of the Committee’s final decision on appeal, or (B) if the claimant fails to request any level of administrative review within the timeframe permitted under this Section 16.6, the deadline for requesting the next level of administrative review, and (ii) the last date on which such legal action could be commenced under the applicable statute of limitations under ERISA (including, for this purpose, any applicable state statute of limitations that applies under ERISA to such legal action).
	
 

 

33

 

 

 

	
 
	
16.6.18
	
A claimant has the right to request a written explanation of any violation of these claims procedures. The Committee will provide an explanation within 10 days of the request.
	
 

 

 

Section 17.Miscellaneous Provisions:

 

	
17.1
	
Set off. The Employer may at any time offset a Participant's Deferred Compensation Account by an amount up to $5,000 to collect the amount of any loan, cash advance, extension of other credit or other obligation of the Participant to the Employer that is then due and payable in accordance with the requirements of Section 409A of the Code.
	
 

	
17.2
	
Notices. Each Participant who is not in Service and each Beneficiary shall be responsible for furnishing the Committee or its designee with his current address for the mailing of notices and benefit payments. Any notice required or permitted to be given to such Participant or Beneficiary shall be deemed given if directed to such address and mailed by regular United States mail, first class, postage prepaid. If any check mailed to such address is returned as undeliverable to the addressee, mailing of checks will be suspended until the Participant or Beneficiary furnishes the proper address. This provision shall not be construed as requiring the mailing of any notice or notification otherwise permitted to be given by posting or by other publication.
	
 

	
17.3
	
Lost Distributees. A benefit shall be deemed forfeited if the Committee is unable to locate the Participant or Beneficiary to whom payment is due by the fifth anniversary of the date payment is to be made or commence; provided, that the deemed investment rate of return pursuant to Section 8.2 shall cease to be applied to the Participant's account following the first anniversary of such date; provided further,
	
 

 

34

 

 

however, that such benefit shall be reinstated if a valid claim is made by or on behalf of the Participant or Beneficiary for all or part of the forfeited benefit.

	
17.4
	
Reliance on Data. The Employer and the Committee shall have the right to rely on any data provided by the Participant or by any Beneficiary. Representations of such data shall be binding upon any party seeking to claim a benefit through a Participant, and the Employer and the Committee shall have no obligation to inquire into the accuracy of any representation made at any time by a Participant or Beneficiary.
	
 

	
17.5
	
Headings. The headings and subheadings of the Plan have been inserted for convenience of reference and are to be ignored in any construction of the provisions hereof.
	
 

	
17.6
	
Continuation of Employment. The establishment of the Plan shall not be construed as conferring any legal or other rights upon any Employee or any persons for continuation of employment, nor shall it interfere with the right of the Employer to discharge any Employee or to deal with him without regard to the effect thereof under the Plan.
	
 

	
17.7
	
Merger or Consolidation; Assumption of Plan. No Employer shall consolidate or merge into or with another corporation or entity, or transfer all or substantially all of its assets to another corporation, partnership, trust or other entity (a "Successor Entity") unless such Successor Entity shall assume the rights, obligations and liabilities of the Employer under the Plan and upon such assumption, the Successor Entity shall become obligated to perform the terms and conditions of the Plan. Nothing herein shall prohibit the assumption of the obligations and liabilities of the Employer under the Plan by any Successor Entity.
	
 

 

35

 

 

	
17.8
	
Construction. The Employer shall designate in the Adoption Agreement the state according to whose laws the provisions of the Plan shall be construed and enforced, except to the extent that such laws are superseded by ERISA and the applicable requirements of the Code.
	
 

	
17.9
	
Taxes. The Employer or other payor may withhold a benefit payment under the Plan or a Participant's wages, or the Employer may reduce a Participant's Deferred Compensation Account balance, in order to meet any federal, state, or local or employment tax withholding obligations with respect to Plan benefits, as permitted under Section 409A of the Code. The Employer or other payor shall report Plan payments and other Plan-related information to the appropriate governmental agencies as required under applicable laws.
	
 

 

36

 

NOTE: Execution of this Adoption Agreement creates a legal liability of the Employer with significant tax consequences to the Employer and Participants.  Principal Life Insurance Company disclaims all liability for the legal and tax consequences which result from the elections made by the Employer in this Adoption Agreement.

 

Principal Life Insurance Company, Raleigh, NC 27612

A member of the Principal Financial Group®

 

 

 

 

 

THE EXECUTIVE NONQUALIFIED EXCESS PLAN 

 

ADOPTION AGREEMENT

 

THIS AGREEMENT is the adoption by Myers Industries, Inc. (the "Company") of the Executive Nonqualified Excess Plan ("Plan").

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to adopt the Plan as an unfunded, nonqualified deferred compensation plan; and

 

WHEREAS, the provisions of the Plan are intended to comply with the requirements of Section 409A of the Code and the regulations thereunder and shall apply to amounts subject to section 409A; and

 

WHEREAS, the Company has been advised by Principal Life Insurance Company to obtain legal and tax advice from its professional advisors before adopting the Plan,

 

NOW, THEREFORE, the Company hereby adopts the Plan in accordance with the terms and conditions set forth in this Adoption Agreement:

 

ARTICLE I

 

Terms used in this Adoption Agreement shall have the same meaning as in the

Plan, unless some other meaning is expressly herein set forth. The Employer hereby represents and warrants that the Plan has been adopted by the Employer upon proper authorization and the Employer hereby elects to adopt the Plan for the benefit of its Participants as referred to in the Plan. By the execution of this Adoption Agreement, the Employer hereby agrees to be bound by the terms of the Plan.

 

ARTICLE II

 

The Employer hereby makes the following designations or elections for the purpose of the Plan:

 

2.6Committee:The duties of the Committee set forth in the Plan shall be satisfied by:

 

XX(a)Company.

 

__(b)The administrative committee appointed by the Board to serve at the pleasure

of the Board.

 

__(c) Board.

 

__(d)Other (specify): _____________________________.

 

 

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Classification: Customer Confidential

 

 

 

 

2.8Compensation:The "Compensation" of a Participant shall mean all of a Participant's:

 

XX(a)Base salary.

 

__(b)Service Bonus.

__Service Bonus earned from 1/1 – 12/31, paid on or around first quarter 

of the following Plan Year.

 

__Service Bonus earned each calendar quarter, paid on or around

 the following calendar quarter.

 

__Service Bonus with no defined earnings period (e.g.: a “spot bonus”).

 

 

XX(c)Performance-Based Compensation earned in a period of 12 months or more.

 

XXPerformance Based Bonus earned from 1/1 – 12/31, paid on or around 

first quarter the following Plan Year and whose elections must be made 

no later than 6/30 of the Plan Year it is earned.  

 

__Performance Based Bonus earned from _______, paid on or around 

_________ the following Plan Year and whose elections must be made 

no later than _____ of the Plan Year it is earned. 

 

__(d)Commissions.

 

__(e)Compensation received as an Independent Contractor reportable on Form 1099.

 

__(f)Other: ___________________________.

 

 

2.9Crediting Date:The Deferred Compensation Account of a Participant shall be credited as follows:

 

Participant Deferral Credits at the time designated below:

 

XX(a)On any business day as specified by the Employer.

 

__(b)Each pay day as reported by the Employer.

 

__(c)The last business day of each payroll period during the Plan Year.

 

 

Employer Credits at the time designated below:

 

XX(a) On any business day as specified by the Employer.

 

 

 

 

 

 

 

 

 

DD2320-7

Classification: Customer Confidential

 

 

2.13Effective Date:

 

	
 
	
XX
	
(a)This is a newly-established Plan, and the Effective Date of the Plan is

	
 
	

	
January 1, 2018.

 

 

	
 
	
__
	
(b)This is an amendment of a plan named _____________________ dated _____________ and governing all contributions to the plan through _________________.  The Effective Date of this amended Plan is ___________.

 

 

2.20 Normal Retirement Age: The Normal Retirement Age of a Participant shall be:

 

XX(a)Age 65.

 

	
 
	
__
	
(b)The later of age ___ or the _______ anniversary of the participationcommencement date. The participation commencement date is the first

day of the first Plan Year in which the Participant commenced

participation in the Plan.

 

__(c)Other: _____________________________________.

 

 

	
2.23
	
Participating Employer(s): As of the Effective Date, the following Participating Employer(s) are parties to the Plan:

 

			
	
Name of Employer
	
 
	
EIN

	
Myers Industries, Inc.
	
 
	
34-0778636

	
Buckhorn, Inc.
	
 
	
31-0994746

	
Myers International, Inc.
	
 
	
34-1059277

	
Patch Rubber Company, Inc.
	
 
	
34-1080479

	
Myers Tire Supply Distribution
	
 
	
34-1907385

	
Jamco Products Inc.
	
 
	
36-4068465

	
Ameri-Kart (MI) Corp.
	
 
	
38-1940960

	
Scepter Manufacturing, LLC
	
 
	
46-1024657

	
Ameri-Kart (KS) Corp.
	
 
	
48-1075852

 

DD2320-7

Classification: Customer Confidential

 

 

	
2.26
	
Plan: The name of the Plan is          

 

The Executive Nonqualified Excess Plan.

 

 

2.28Plan Year: The Plan Year shall end each year on the last day of the month of December.

 

 

2.30Seniority Date: The date on which a Participant has:

 

__(a)Attained age __. 

 

	
 
	
__
	
(b)Completed __ Years of Service from First Date of Service.

 

	
 
	
__
	
(c)Attained age __ and completed __ Years of Service from First Date of Service.

 

	
 
	
XX
	
(d)Not applicable – distribution elections for Separation from Service are not based on Seniority Date.

 

 

4.1Participant Deferral Credits: Subject to the limitations in Section 4.1 of the Plan, a

Participant may elect to have his Compensation (as selected in Section 2.8 of this Adoption Agreement) deferred within the annual limits below by the following percentage or amount as designated in writing to the Committee:

 

XX(a)Base salary:

			
	
minimum deferral: 
	
 
	
%

	
maximum deferral:
	
 80
	
%

 

__(b)Service Bonus:

 

__Service Bonus

			
	
minimum deferral: 
	
 
	
%

	
maximum deferral:
	
 
	
%

 

 

XX(c)Performance-Based Compensation:

 

XXPerformance Based Bonus 

			
	
minimum deferral: 
	
 
	
%

	
maximum deferral:
	
    100
	
%

 

 

__(d)Commissions:

			
	
minimum deferral: 
	
 
	
%

	
maximum deferral:
	
 
	
%

 

DD2320-7

Classification: Customer Confidential

 

 

__(e)Form 1099 Compensation:

			
	
minimum deferral: 
	
 
	
%

	
maximum deferral:
	
 
	
%

 

 

__(f)Other:

			
	
minimum deferral: 
	
 
	
%

	
maximum deferral:
	
 
	
%

 

__(g)Participant deferrals not allowed.

 

 

4.1.2 Participant Deferral Credits and Employer Credits – Election Period:  Participant elections regarding Participant Deferral Credits and Employer Credits shall be subject to the following effective periods (one must be selected):

 

XX(a)Evergreen election.  An election made by the Participant shall continue in effect 

                             for subsequent years until modified by the Participant as permitted in Section

                             4.1 and Section 4.2. (This option is not permitted if source year accounts are 

                             elected in Section 5.1)

 

__(b)Non-Evergreen election.  Any election made by the Participant shall only remain

                             in effect for the current election period and will then expire.  An election for 

                             each subsequent year will be required as permitted in Sections 4.1 and 4.2.

 

 

4.2Employer Credits: Employer Credits will be made in the following manner:

 

	
 
	
XX
	
(a)Employer Discretionary Credits: The Employer may make discretionary credits to the Deferred Compensation Account of each Active Participant in an amount determined as follows:

 

	
 
	
XX
	
(i)An amount determined each Plan Year by the Employer.

 

__(ii)Other: _______________________________________.

 

	
 
	
XX
	
(b)Other Employer Credits: The Employer may make other credits to the Deferred Compensation Account of each Active Participant in an amount determined as follows:

 

	
 
	
XX
	
(i)An amount determined each Plan Year by the Employer.

 

__(ii)Other: _______________________________________.

 

__(c)Employer Credits not allowed.

 

 

 

 

 

 

 

DD2320-7

Classification: Customer Confidential

 

 

4.3 Deferred Compensation Account:  The Participant is permitted to establish the following accounts:

 

XX(a)Non-source year account(s).  Deferred Compensation Account(s) will not be

                            established on a source year basis:

 

__(i)A Participant may establish only one account to be distributed upon

                             Separation from Service.  One set of payment options for that account 

                             is allowed as permitted in Section 7.1.  Additional In-Service or 

                             Education accounts may be established as permitted in Section 5.4.

 

XX(ii)A Participant may establish multiple accounts to be distributed upon 

                             Separation from Service.  Each account may have one set of payment 

                             options as permitted in Section 7.1  Additional In-Service or 

                             Education accounts may be established as permitted in Section 5.4.

                             If this multiple account option  is elected, the Participant will also be 

                             required to elect Separation from Service payment options for each In-

                             Service or Education account established.

 

__(b)Source year account(s):  Annual Deferred Compensation Account(s) will be

                             established each year  in which Participant Deferral Credits or Employer Credits 

                             are credited to the Participant.  Only one account may be established each

                             year for distribution upon Separation from Service. One set of payment

                             options for that account  is allowed as permitted in Section 7.1. Additional In-

                             Service or Education accounts may be established for each source year as 

                             permitted in Section 5.4.  If this option is selected, Evergreen elections as 

                             described in Section 4.1.2 are not permitted.      

 

 

5.2 Disability of a Participant: 

 

XX(a)A Participant's becoming Disabled shall be a Qualifying Distribution Event and 

                             the Deferred Compensation Account shall be paid by the Employer as 

                             provided in Section 7.1.

 

__(b)A Participant becoming Disabled shall not be a Qualifying Distribution Event.

 

 

5.3Death of a Participant: If the Participant dies while in Service, the Employer shall pay a benefit to the Beneficiary in an amount equal to the vested balance in the Deferred Compensation Account of the Participant determined as of the date payments to the Beneficiary commence, plus:

 

__(a)An amount to be determined by the Committee.

 

XX(b)No additional benefits.

 

 

 

 

 

 

 

 

 

DD2320-7

Classification: Customer Confidential

 

 

5.4In-Service or Education Distributions: In-Service and Education Accounts are permitted under the Plan:

 

XX(a)In-Service Accounts are allowed with respect to:

XXParticipant Deferral Credits only.

__Employer Credits only.

__Participant Deferral and Employer Credits.

 

In-service distributions may be made in the following manner:

XXSingle lump sum payment.

XXAnnual installments over a term certain not to exceed 5 years.

 

Education Accounts are allowed with respect to:

XXParticipant Deferral Credits only.

__Employer Credits only.

__Participant Deferral and Employer Credits.

 

Education Accounts distributions may be made in the following manner:

XXSingle lump sum payment.

XXAnnual installments over a term certain not to exceed 5 years.

 

If applicable, amounts not vested at the time payments due under this Section cease will be:

__Forfeited.

__Distributed at Separation from Service if vested at that time.

 

__(b)No In-Service or Education Distributions permitted.

 

 

5.5 Change in Control Event: 

 

__(a)Participants may elect upon initial enrollment to have accounts distributedupon a Change in Control Event.

 

XX(b)A Change in Control shall not be a Qualifying Distribution Event.

 

 

	
5.6
	
Unforeseeable Emergency Event: 

 

	
 
	
XX
	
(a)Participants may apply to have accounts distributed upon an Unforeseeable Emergency event.

 

	
 
	
__
	
(b)An Unforeseeable Emergency shall not be a Qualifying Distribution Event.                                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

DD2320-7

Classification: Customer Confidential

 

 

6.Vesting:  An Active Participant shall be fully vested in the Employer Credits made to the

Deferred Compensation Account upon the first to occur of the following events:

 

XX(a)Normal Retirement Age.

 

XX(b)Death.

 

XX(c)Disability.

 

__(d)Change in Control Event.

 

XX(e)Satisfaction of the vesting requirement as specified below:

 

XXEmployer Restorative Match:

 

__(i)Immediate 100% vesting.

 

XX(ii)100% vesting after 1 Years of Service.

 

__(iii)100% vesting at age __.

 

__(iv)Number of YearsVested

of ServicePercentage

 

				
	
Less than
	
1
	
 
	
%

	
 
	
1
	
 
	
%

	
 
	
2
	
 
	
%

	
 
	
3
	
 
	
%

	
 
	
4
	
 
	
%

	
 
	
5
	
 
	
%

	
 
	
6
	
 
	
%

	
 
	
7
	
 
	
%

	
 
	
8
	
 
	
%

	
 
	
9
	
 
	
%

	
 
	
10 or more
	
 
	
%

 

 

For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

 

XX(1)First day of Service.

 

__(2)Effective date of Plan participation.

 

__(3)Each Crediting Date. Under this option (3), each EmployerCredit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary Credit is made to his or her Deferred Compensation Account.

 

 

 

 

 

 

 

DD2320-7

Classification: Customer Confidential

 

 

XXOther Employer Credits:

 

XX(i)Immediate 100% vesting.

 

__(ii)100% vesting after _Year of Service.

 

__(iii)100% vesting at age __.

 

__(iv)Number of YearsVested

of ServicePercentage

 

				
	
Less than
	
1
	
 
	
%

	
 
	
1
	
 
	
%

	
 
	
2
	
 
	
%

	
 
	
3
	
 
	
%

	
 
	
4
	
 
	
%

	
 
	
5
	
 
	
%

	
 
	
6
	
 
	
%

	
 
	
7
	
 
	
%

	
 
	
8
	
 
	
%

	
 
	
9
	
 
	
%

	
 
	
10 or more
	
 
	
%

 

 

For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

 

__(1)First day of Service.

 

__(2)Effective date of Plan participation.

 

__(3)Each Crediting Date. Under this option (3), each EmployerCredit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary Credit is made to his or her Deferred Compensation Account.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DD2320-7

Classification: Customer Confidential

 

 

7.1Payment Options: Any benefit payable under the Plan upon a permitted Qualifying Distribution Event may be made to the Participant or his Beneficiary (as applicable) in any of the following payment forms, as selected by the Participant in the Participation Agreement: 

 

(a)Separation from Service (Seniority Date is Not Applicable)

 

	
 
	
XX
	
(i)A lump sum.

 

	
 
	
XX
	
(ii)Annual installments over a term certain as elected by the Participant not to exceed 5 years.

 

 (b)Separation from Service prior to Seniority Date (If Applicable)

 

	
 
	
__
	
(i)A lump sum.

 

	
 
	
XX
	
(ii)Not Applicable.

 

 (c)Separation from Service on or After Seniority Date (If Applicable)

 

	
 
	
__
	
(i)A lump sum.

 

	
 
	
__
	
(ii)Annual installments over a term certain as elected by the Participant not to exceed ___ years.

 

XX(iii)Not Applicable.

 

(d)Separation from Service Upon a Change in Control Event

 

	
 
	
XX
	
(i)A lump sum.

 

(e)Death

 

	
 
	
XX
	
(i)A lump sum.

 

	
 
	
__
	
(ii)Annual installments over a term certain as elected by the Participant not to exceed ___ years.

 

(f)Disability

 

	
 
	
XX
	
(i)A lump sum.

 

	
 
	
XX
	
(ii)Annual installments over a term certain as elected by the Participant not to exceed 5 years.

 

__(iii)Not applicable.

 

If applicable, amounts not vested at the time payments due under this Section cease will be:

__Forfeited.

__Distributed at Separation from Service if vested at that time.

 

 

 

 

 

 

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Classification: Customer Confidential

 

 

(g)Change in Control Event

 

	
 
	
__
	
(i)A lump sum.

 

XX(ii)Not applicable.

 

If applicable, amounts not vested at the time payments due under this Section cease will be:

__Forfeited.

__Distributed at Separation from Service if vested at that time.

 

 

	
7.4
	
De Minimis Amounts. 

 

	
 
	
XX
	
(a)Notwithstanding any payment election made by the Participant, the vested balance in all Deferred Compensation Account(s) of the Participant will be distributed in a single lump sum payment at the time designated under the Plan if at the time of a permitted Qualifying Distribution Event that is either a Separation from Service, death, Disability (if applicable) or Change in Control Event (if applicable) the vested balance does not exceed $ 50,000.  In addition, the Employer may distribute a Participant's vested balance in all Deferred Compensation Account(s) of the Participant at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant's entire interest in the Plan.

 

	
 
	
__
	
(b)There shall be no pre-determined de minimis amount under the Plan; however, the Employer may distribute a Participant's vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant's entire interest in the Plan.

 

 

10.1Contractual Liability: Liability for payments under the Plan shall be the responsibility of the:

 

XX(a)Company.

 

	
 
	
__
	
(b)Employer or Participating Employer who employed the Participant when amounts were deferred.

 

 

14.Amendment and Termination of Plan: Notwithstanding any provision in this Adoption

Agreement or the Plan to the contrary, Section 6 of the Plan shall be amended to read as provided in attached Exhibit A.

 

__There are no amendments to the Plan.

 

 

17.8Construction: The provisions of the Plan shall be construed and enforced according to the laws of the State of Ohio, except to the extent that such laws are superseded by ERISA and the applicable provisions of the Code.

 

 

 

 

 

DD2320-7

Classification: Customer Confidential

 

 

IN WITNESS WHEREOF, this Agreement has been executed as of the day and year stated below.

 

 

Myers Industries, Inc.

Name of Employer

 

By:    /s/ Kevin Gehrt                     

Authorized Person

Date:     November 28, 2017          

 

Buckhorn, Inc.

Name of Employer

 

By:   /s/ Kevin Gehrt                     

Authorized Person

Date:    November 28, 2017          

 

Myers International, Inc.

Name of Employer

 

By:   /s/ Kevin Gehrt                     

Authorized Person

Date:    November 28, 2017          

 

Patch Rubber Company, Inc.

Name of Employer

 

By:   /s/ Kevin Gehrt                     

Authorized Person

Date:    November 28, 2017          

 

Myers Tire Supply Distribution

Name of Employer

 

By:   /s/ Kevin Gehrt                     

Authorized Person

Date:    November 28, 2017          

 

Jamco Products Inc.

Name of Employer

 

By:   /s/ Kevin Gehrt                     

Authorized Person

Date:    November 28, 2017          

 

Ameri-Kart (MI) Corp.

Name of Employer

 

By:   /s/ Kevin Gehrt                     

Authorized Person

Date:    November 28, 2017          

 

 

 

 

 

DD2320-7

Classification: Customer Confidential

 

 

Scepter Manufacturing, LLC

Name of Employer

 

By:   /s/ Kevin Gehrt                     

Authorized Person

Date:    November 28, 2017          

 

Ameri-Kart (KS) Corp.

Name of Employer

 

By:   /s/ Kevin Gehrt                     

Authorized Person

Date:    November 28, 2017          

DD2320-7

Classification: Customer Confidential

 

 

Exhibit A

 

Any reference to Employer Discretionary Credits in the Plan Document and Adoption Agreement shall be replaced with “Employer Restorative Match”.

 

 

 

DD2320-7

Classification: Customer ConfidentialExhibit

Transition Agreement and Release
This Transition Agreement and Release (“Agreement”) is made by and between John Leaman, M.D. (“Executive”) and Selecta Biosciences, Inc. (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”) as of March 6, 2019 (the “Effective Date”).  Capitalized terms used but not defined in this Agreement shall have the meanings set forth in the Employment Agreement (as defined below).
WHEREAS, the Parties have previously entered into that certain Employment Agreement, dated as of October 26, 2017 (the “Employment Agreement”); and 
WHEREAS, in connection with Executive’s termination of employment with the Company, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that Executive may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Executive’s employment with or separation from the Company or its subsidiaries or affiliates but, for the avoidance of doubt, nothing herein will be deemed to release any rights or remedies in connection with Executive’s ownership of vested equity securities of the Company, vested benefits or Executive’s right to defense or indemnification by the Company or any of its affiliates pursuant to contract or applicable law (collectively, the “Retained Claims”).   The Company agrees not to contest Executive’s application for unemployment benefits; provided that nothing herein shall prohibit the Company from responding truthfully to requests for information from, or require the Company to make any false or misleading statements to, any governmental authority.
NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Executive hereby agree as follows:
1.    Termination; Services; Compensation. 
(a)    Executive’s employment with the Company and its subsidiaries will terminate on (i) March 31, 2019 or (ii) such earlier date as Executive’s employment is terminated in accordance with the terms of this Agreement (the actual date of Executive’s termination of employment, the “Separation Date”).  As of the Separation Date, Executive will cease to serve as an employee, director, officer or in any other position with the Company and its subsidiaries and will cease to exercise or convey any authority (actual, apparent or otherwise) on behalf of the Company and its subsidiaries.  During the period commencing on the Effective Date and ending on the Separation Date (the “Transition Period”), Executive will continue performing substantially the same duties and responsibilities as Executive has historically provided to the Company or as are otherwise reasonably requested by the Company from time to time.  Executive will perform Executive’s duties during the Transition Period in substantially the same manner and with substantially the same effort, time commitment and level of care as Executive has historically performed duties for the Company prior to the Effective Date.  
(b)    During the Transition Period, Executive will continue receiving Executive’s Annual Base Salary at the same rate that applies on the Effective Date and will remain eligible to participate in the Company’s employee benefit plans to the same extent as Executive is eligible as of the Effective Date, subject to the terms and conditions of such employee benefit plans as in effect from time to time. 
(c)     Executive’s employment with the Company will at all times remain terminable by either Executive or the Company at will and nothing in this Agreement confers upon Executive any right to continue to serve as an employee or other service provider of the Company or interferes with or restricts the rights of the Company to discharge or terminate the services of Executive at any time for any or no reason, with or without Cause, subject to the provisions of Section 2.    
2.    Severance Payments; Salary and Benefits.  
(a)     The Company agrees to provide Executive with the severance payments and benefits described in Section 2(b) below, payable at the times set forth in, and subject to the terms and conditions of, such Section. In 

addition, upon termination of Executive’s employment for any reason, to the extent not already paid, and subject to the terms and conditions of the Employment Agreement, the Company shall pay or provide to Executive all other payments or benefits described in Section 3(c) of the Employment Agreement, subject to and in accordance with the terms thereof.
(b)    If Executive remains continuously employed by the Company through March 31, 2019 or if the  Company terminates Executive’s employment on or prior to March 31, 2019 for reasons other than Cause or Executive’s death, Disability or material breach of this Agreement, then subject to Executive’s continued compliance with the Restrictive Covenant Agreement and Executive’s execution and delivery to the Company of the release of claims attached hereto as Addendum 1 (the “Bring-Down Release”) within 30 days following the Separation Date (and the Bring-Down Release becoming effective and irrevocable), Executive will be entitled to the following payments and benefits:
(i)     continued payment of Executive’s Annual Base Salary during the period commencing the day after the Separation Date and ending December 31, 2019 (the “Severance Period”) in accordance with the Company’s normal payroll practices, provided that payment of such amounts will commence on the Company’s next regular payday (the date of such payday, the “First Payment Date”) following the effective date of the Bring-Down Release (with the first payment including all amounts that would otherwise have been earlier paid);
(ii)     $97,500 payable in the form of a lump sum payment on the First Payment Date;
(iii)    if Executive elects to receive continued medical, dental and/or vision coverage under one or more of the Company’s group healthcare plans pursuant to COBRA, the Company shall directly pay the COBRA premiums for Executive and Executive’s covered dependents under such plans during the period commencing on the Separation Date and ending upon the earliest of (X) the last day of the Severance Period, (Y) the date that Executive and/or Executive’s covered dependents become no longer eligible for COBRA or (Z) the date Executive becomes eligible to receive medical, dental or vision coverage, as applicable, from a subsequent employer (and Executive agrees to promptly notify the Company of such eligibility). Notwithstanding the foregoing, if the Company determines in its sole discretion that it cannot provide the foregoing benefit without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act) or incurring an excise tax, the Company may alter the manner in which medical, dental or vision coverage is provided to Executive after the Separation Date so long as such alteration does not increase the after-tax cost to Executive of such benefits; and
(iv)    immediate vesting of any outstanding unvested stock options held by Executive as of the Separation Date that would have vested based solely on Executive’s continued service if Executive had continued providing services over the Severance Period and the right to exercise any vested stock options (after giving effect to the foregoing accelerated vesting) held by Executive as of the Separation Date shall be extended until March 31, 2020, subject in all events to earlier termination in connection with a corporate transaction or event in accordance with the terms of such stock options.
3.    Release of Claims.  Executive agrees that, other than with respect to the Retained Claims, the foregoing consideration represents settlement in full of all outstanding obligations owed to Executive by the Company, any of its direct or indirect subsidiaries and affiliates, and any of its or their current and former officers, directors, equity holders, managers, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Executive, on Executive’s own behalf and on behalf of any of Executive’s affiliated companies or entities and any of their respective heirs, family members, executors, agents, and assigns (collectively, the “Employee Parties”), other than with respect to the Retained Claims, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Executive may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date, including, without limitation:

(a)    any and all claims relating to or arising from Executive’s employment or service relationship with the Company or any of its direct or indirect subsidiaries or affiliates and the termination of that relationship;
(b)    any and all claims relating to, or arising from, Executive’s right to purchase, or actual purchase of any shares of stock or other equity interests of the Company or any of its affiliates, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;
(c)    any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;
(d)    any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; and the Sarbanes-Oxley Act of 2002;
(e)    any and all claims for violation of the federal or any state constitution;
(f)     any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;
(g)    any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Executive as a result of this Agreement; 
(h)    any and all claims arising out of the wage and hour and wage payment laws and regulations of the state or states in which Executive has provided service to the Company or any of its affiliates (including without limitation the Massachusetts Payment of Wages Law); and    
(i)    any and all claims for attorneys’ fees and costs.
Executive agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released.  This release does not release claims that cannot be released as a matter of law, including, but not limited to, Executive’s right to report possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or any other whistleblower protection provisions of state or federal law or regulation (including the right to receive an award for information provided to such governmental agency or entity), Executive’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that Executive’s release of claims herein bars Executive from recovering monetary or other individual relief from the Company or any other Releasee), claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law, claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA, claims to any benefit entitlements vested as the date of separation of Executive’s employment, pursuant to written terms of any employee benefit plan of the Company or its affiliates and Executive’s rights under applicable law, and any Retained Claims.  

4.    Whistleblower Protections; Trade Secrets.  Nothing in this Agreement, the Restrictive Covenant Agreement or any other prior agreement between Executive and the Company (together, the “Subject Documents”) prevents Executive from reporting possible violations of law or regulation to any governmental agency or entity in accordance with Section 21F of the Securities Exchange Act of 1934, Section 806 of the Sarbanes-Oxley Act of 2002 or any other whistleblower protection provisions of state or federal law or regulation (including the right to receive an award for information provided to any such government agencies).  Furthermore, in accordance with 18 U.S.C. § 1833, notwithstanding anything to the contrary in any Subject Document: (a) Executive shall not be in breach of any Subject Document, and shall not be held criminally or civilly liable under any federal or state trade secret law (i) for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (b) if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney, and may use the trade secret information in the court proceeding, if Executive files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order.
5.    Severability.  In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision.
6.    No Oral Modification.  This Agreement may only be amended in a writing signed by Executive and a duly authorized officer of the Company.
7.    Governing Law.  This Agreement shall be governed, construed, interpreted and enforced in accordance with its express terms, and otherwise in accordance with the substantive laws of the Commonwealth of Massachusetts without reference to the principles of conflicts of law of the Commonwealth of Massachusetts or any other jurisdiction that would result in application of the laws of a jurisdiction other than the Commonwealth of Massachusetts, and where applicable, the laws of the United States.
8.    Notices. Any notice, request, claim, demand, document and other communication hereunder to any Party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by facsimile or certified or registered mail, postage prepaid, as follows:
(a)    If to the Company, to the General Counsel of the Company at the Company’s headquarters, or, if the Company does not have a General Counsel, to the Legal Department of the Company,
(b)    If to Executive, to the last address that the Company has in its personnel records for Executive, or
(c)    at any other address as any Party shall have specified by notice in writing to the other Party.
9.    Voluntary Execution of Agreement.  Executive understands and agrees that Executive executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Executive’s claims against the Company and any of the other Releasees.  Executive acknowledges that:  (a) Executive has read this Agreement; (b) Executive has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement; (c) Executive has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of Executive’s own choice or has elected not to retain legal counsel; (d) Executive understands the terms and consequences of this Agreement and of the releases it contains; and (e) Executive is fully aware of the legal and binding effect of this Agreement.
10.    Restrictive Covenant Agreement. Executive agrees to continue to abide by the terms of the Restrictive Covenant Agreement, which are hereby incorporated by reference into this Agreement. Executive 

acknowledges that Executive’s obligations under the Restrictive Covenant Agreement will survive the termination of Executive’s employment for the periods set forth in the Restrictive Covenant Agreement. 
11.    Withholding.  The Company may withhold from any amounts payable to Executive hereunder all federal, state, city or other taxes or deductions that the Company reasonably determines are required to be withheld pursuant to any applicable law or regulation.
12.    Section 409A.  Notwithstanding anything in this Agreement to the contrary, any compensation payable under this Agreement that is designated as payable upon Executive’s termination of employment will be payable only upon Executive’s “separation from service” with the Company within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (“Section 409A”).  Executive’s right to receive any installment payments under this Agreement will be treated as a right to receive a series of separate payments and each such installment payment will at all times be considered a separate and distinct payment as permitted under Section 409A.
13.    Section 280G. This Agreement shall be subject to the provisions of Section 8 of the Employment Agreement, mutatis mutandis.
14.    Entire Agreement; Counterparts.  This Agreement, together with the Restrictive Covenant Agreement, sets forth the entire agreement between the Parties hereto and supersedes any prior agreements or understandings between the Parties pertaining to the subject matter hereof, including without limitation the Employment Agreement.  The failure of any Party at any time to require the performance by any other Party of any provision hereof will in no way affect the full right to require such performance at any time thereafter, nor will the waiver by any Party of a breach of any provision of this Agreement be taken or held to be a waiver of any succeeding breach of such provision or a waiver of the provision itself or a waiver of any other provision of this Agreement.  This Agreement may be executed in counterparts, each of which will be deemed an original but together will constitute one document.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or email transmission will be effective for all purposes.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the Effective Date.  
	
					
	 
	 
	 
	 
	 

	 
	 
	 

	 
	 
	/s/ John Leaman, M.D.
	 

	 
	 
	John Leaman, M.D.
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	SELECTA BIOSCIENCES, INC.

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Carsten Brunn, Ph.D.

	 
	 
	 
	Name: Carsten Brunn, Ph.D.

	 
	 
	 
	Title: President and Chief Executive Officer

Addendum 1

Release of Claims
Reference is made to the Transition Agreement and Release, dated as of March 6, 2019, to which this Release of Claims is attached (the “Agreement”).  Capitalized terms used but not defined in this Release of Claims will have the meanings given to them in the Agreement.
For and in consideration of the payment to me of the benefits described in Section 2(b) of the Agreement, I, on my own behalf and on behalf of the Employee Parties, hereby and forever release the Releasees from, and agree not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that I may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the date I execute this Release of Claims, provided that this Release of Claims does not release claims that cannot be released as a matter of law, including, but not limited to, my right to report possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or any other whistleblower protection provisions of state or federal law or regulation (including the right to receive an award for information provided to such governmental agency or entity), my right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that my release of claims herein bars me from recovering monetary or other individual relief from the Company or any other Releasee), claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law, claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA, claims to any benefit entitlements vested as of the Separation Date, pursuant to written terms of any employee benefit plan of the Company or its affiliates and my rights under applicable law, and any Retained Claims (collectively, the “Executive’s Retained Claims”).  
I have read this Release of Claims carefully and have been advised to consult with any attorney and any other advisors of my choice prior to executing this Release of Claims, and I fully understand that by signing below I am voluntarily giving up any right which I may have to sue or bring any claims against the Releasees other than the Executive’s Retained Claims.  I understand and acknowledge that I am waiving and releasing any rights that I may have under the Age Discrimination in Employment Act of 1967 (the “ADEA”), and that this waiver and release is knowing and voluntary.  I understand and agree that this Release of Claims does not apply to any rights or claims that may arise under the ADEA after the date I sign this Release of Claims.  I understand and acknowledge that the consideration given for this Release of Claims is in addition to anything of value to which I was already entitled.  I further understand and acknowledge that I have been advised by this writing that: (a) I have 21 days within which to consider this Release of Claims; (b) I have 7 days following my execution of this Release of Claims to revoke this Release of Claims by delivering written notice to the Company; (c) this Release of Claims will not be effective until after the foregoing revocation period has expired; and (d) nothing in this Release of Claims prevents or precludes me from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event that I sign this Release of Claims and return it to the Company in less than the 21 day period identified above, I hereby acknowledge that I have freely and voluntarily chosen to waive the time period allotted for considering this Release of Claims.  I have not been forced or pressured in any manner to sign this Release of Claims, and I agree to all of its terms voluntarily.  
This Release of Claims is final and binding and may only be amended in a writing signed by me and a duly authorized officer of the Company.  Sections 7, 8 and 9 of the Agreement will apply to this Release of Claims mutatis mutandis.  

For the avoidance of doubt, this Release of Claims does not replace or in any way limit the general release and waiver in Section 3 of the Agreement.  

Executed:  March 6, 2019 

/s/ John Leaman, M.D.        
John Leaman, M.D.

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