Document:

1231.2014 Exhibit 10.10

Exhibit 10.10

EXECUTIVE CHANGE OF CONTROL AGREEMENT

THIS EXECUTIVE CHANGE OF CONTROL AGREEMENT is dated as of February 7, 2014 (this “Agreement”), by and between Rudolph Technologies, Inc., a Delaware corporation (the “Company”), and Richard Rogoff (the “Executive”).
RECITALS
WHEREAS, Company desires to create a greater incentive for Executive to remain in the employ of Company, particularly in the event of any possible change or threatened change of control of Company; and
WHEREAS, the parties desire to memorialize their agreement with respect thereto in the manner set forth herein,
NOW, THEREFORE, in consideration of Executive’s past and future services to Company and the mutual covenants contained herein, the receipt and adequacy of which is hereby acknowledged, the parties hereto hereby agree as follows:
		
	1.
	Death or Disability.  If Executive’s employment with Company is terminated as a result of Executive’s death or Disability, Executive shall be entitled to the following benefits:

		
	a.
	Final Paycheck.  Payment, in a lump sum, of any and all base salary due and owing through the Termination Date, plus an amount equal to all earned but unused vacation hours through the Termination Date and reimbursement for all reasonable expenses, less any deductions required by applicable law; and

		
	b.
	Accelerated Vesting.  All unvested options, restricted stock units or other awards granted in accordance with the Rudolph Technologies 2009 Stock Plan (“Stock Plan”) as of the date of this Agreement as well as those granted after the date of this Agreement (“Awards”) shall fully vest, provided that such Awards have not already accelerated under the Stock Plan.  None of the above Awards were granted at less than fair market value.

		
	2.
	Termination By Company Without Good Cause Following a Change of Control.  If Executive’s employment with Company is terminated by Company for any reason other than for “Good Cause” as defined in Section 9 herein, within one (1) year following the occurrence of a “Change of Control” as defined in Section 9 herein, Executive shall be entitled to the following benefits:

		
	a.
	Final Paycheck.  Payment, in a lump sum, of any and all base salary due and owing through the Termination Date, plus an amount equal to all earned but unused vacation hours through the Termination Date and reimbursement for all reasonable expenses, less any deductions required by applicable law;

		
	b.
	Continued Payment of Salary.  In exchange for a signed, unrevoked release of claims (“General Release”), payment of Executive’s then-current base salary for a period of twelve (12) months, less any deductions required by applicable law; and

		
	c.
	Accelerated Vesting.  Provided that Executive’s Awards have not accelerated under the Stock Plan, then all such Awards shall fully vest.

		
	d.
	Medical and Dental Benefits.  Executive shall be entitled to elect to maintain Executive’s and his dependent’s health care benefit coverage to the same extent provided for by and with the same Company/Executive payment contribution percentages under Company’s group plans at the time of termination. Such coverage shall extend for a term of one (1) year from the Termination Date unless Executive becomes covered as an insured under another employer’s or spousal health care plan.  At such time Executive shall notify Company and Company shall cease its obligation to provide for continued health care benefits coverage.  For tax purposes, this coverage may be considered income to the Executive.

		
	3.
	Termination By Executive for Good Reason Following a Change of Control.  Alternatively, should Executive terminate employment with Company for “Good Reason” as defined in Section 9 herein, having given the Company ninety (90) days advanced written notice of the existence of the “Good Reason” condition, and where Company has had thirty (30) days to remedy the “Good Reason” condition and has failed to do so, provided however, this has occurred within one (1) year of a “Change of Control” as defined in Section 9 herein, Executive shall be entitled to the following benefits:

		
	a.
	Final Paycheck.  Payment, in a lump sum, of any and all base salary due and owing through the Termination Date, plus an amount equal to all earned but unused vacation hours through the Termination Date and reimbursement for all reasonable expenses, less any deductions required by applicable law;

		
	b.
	Continued Payment of Salary.  In exchange for a signed, unrevoked General Release, payment of Executive’s then-current base salary for a period of twelve (12) months, less any deductions required by applicable law; and

		
	c.
	Accelerated Vesting.  Provided that Executive’s Awards have not accelerated under the Stock Plan, then all such Awards shall fully vest.

		
	d.
	Medical and Dental Benefits.  Executive shall be entitled to elect to maintain Executive’s and his dependent’s health care benefit coverage to the same extent provided for by and with the same Company/Executive payment contribution percentages under Company’s group plans at the time of termination. Such coverage shall extend for a term of one (1) year from the Termination Date unless Executive becomes covered as an insured under another employer’s or spousal health care plan.  At such time Executive shall notify Company and Company shall cease its obligation to provide for continued health care benefits coverage.  For tax purposes, this coverage may be considered income to the Executive.

The severance benefits provided in Section 3 are the exclusive remedies and shall not be provided in addition to those benefits provided in Section 2 of this Agreement.
		
	4.
	Timing of Payments.  The payments provided for in Sections 1.a., 2.a. or 3.a. herein, as applicable, shall be payable immediately upon Executive’s termination or cessation of employment.  Payments provided for in Section 2.b. or 3.b. herein, as applicable, shall begin upon the Termination Date or within ten (10) days after Company’s receipt of a signed, unrevoked General Release, whichever is later, and shall continue in accordance with Company’s customary payroll practices.  This General Release must be returned to Company within eighty (80) days, so that payments shall begin no later than ninety (90) days after the Termination Date.  All such payments will be subject to applicable payroll or other taxes required to be withheld by Company.  Benefits provided for in Sections 1.b., 2.c. or 3.c. shall be made in accordance with the Stock Plan.  Benefits coverage provided for in Section 2.d. or 3.d. shall begin on the first day of the next full month following the Termination Date with no lapse in coverage.

		
	5.
	Subsequent Employment.  The compensation and benefits payable hereunder, with the exception of those benefits provided for under Section 2.d. or 3.d., shall not be reduced or offset by any amounts that Executive earns or could earn from any subsequent employment.

		
	6.
	Section 280G Matters.  If the benefits described in Section 2 or 3 herein, as applicable, would otherwise constitute a parachute payment under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and but for this Section would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), Executive shall either:

		
	a.
	pay the Excise Tax, or

		
	b.
	have the benefits reduced to such lesser extent as would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.

Unless Company and Executive otherwise agree in writing, any determination required under this Section shall be made in writing by Company’s independent public accountants (“Accountants”), whose determination shall be conclusive and binding upon Executive and Company for all purposes.  For purposes of making the calculations required by this Section, Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code.  Company and Executive shall furnish to Accountants such information and documents as Accountants may reasonably request in order to make a determination under this Section.  Company shall bear all costs Accountants may reasonably incur in connection with any calculations contemplated by this Section.
		
	7.
	General Release.  All compensation and benefits under Section 2 or 3 herein, as applicable, are in consideration for Executive’s execution of the General Release of all known and unknown claims that Executive may then have against Company and its agents, a form of which is available from Company.  If Executive does not properly execute such General Release, the parties expressly acknowledge and agree that Executive will not be entitled to any of the benefits provided under Section 2 or 3 herein, as applicable.

		
	8.
	Employment Status.  Nothing in this Agreement shall be deemed to constitute a contract for employment for any specific period of time.  The parties expressly acknowledge and agree that the undersigned’s employment with Company shall continue to be “at will”.

		
	9.
	Definitions.

		
	a.
	Good Cause.  For purposes of this Agreement, “Good Cause” means:

		
	i.
	performance of any act or failure to perform any act in bad faith and to the detriment of Company;

		
	ii.
	dishonesty, material breach of any agreement with Company, or intentional misconduct; or

		
	iii.
	commission of a crime involving dishonesty, breach of trust, physical or emotional harm to any person.

		
	b.
	Good Reason.  For purposes of this Agreement, “Good Reason” means any of the following, without Executive’s written consent: 

		
	i.
	a significant reduction by Company in Executive’s annual base salary;

		
	ii.
	the failure of Company to obtain an agreement from any successor to Company, or purchaser of all or substantially all of Company’s assets, to assume this Agreement;

		
	iii.
	the assignment of Executive to duties which reflect a material adverse change in authority, responsibility or status with Company or any successor; or

		
	iv.
	Company requiring Executive to reside or be based at a location fifty (50) miles or more from the location where Executive was based immediately prior to the Change in Control.

		
	c.
	Change in Control.  A “Change in Control” shall be defined in accordance with the Stock Plan, that is: 

		
	i.
	A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of Company; provided, however, that for purposes of this subsection 9.c.i., the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of Company will not be considered a Change in Control; or

		
	ii.
	A change in the effective control of Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of this subsection 9.c.ii., if any Person is considered to be in effective control of Company, the acquisition of additional control of Company by the same Person will not be considered a Change in Control; or

		
	iii.
	A change in the ownership of a substantial portion of Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from Company that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection 9.c.iii., the following will not constitute a change in the ownership of a substantial portion of Company’s assets:

		
	1.
	a transfer to an entity that is controlled by Company’s stockholders immediately after the transfer; or

		
	2.
	a transfer of assets by Company to:

		
	a.
	a stockholder of Company (immediately before the asset transfer) in exchange for or with respect to Company’s stock;

		
	b.
	an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by Company;

		
	c.
	a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of Company; or

		
	d.
	an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in subsection 9.c.iii.2.c.

For purposes of this definition, gross fair market value means the value of the assets of Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
For purposes of this definition, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with Company.
In the event that this Section 9.c. is inconsistent with the definition of Change in Control under Section 409A of the Code and the Regulations thereunder, the definition under the aforesaid mentioned Code and Regulations shall supersede.
		
	d.
	Disability. For purposes of this Agreement, “Disability” means that Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

		
	e.
	Termination Date.  The date Executive ceases to be employed by the Company.

		
	10.
	Specified Employee.

		
	a.
	“Specified Employee” is an Executive who, as of the Termination Date, is a key employee of the Company within the meaning of Section 416(i)(1)(A)(i), (ii), or (iii) of the Code (applied in accordance with the regulations thereunder and disregarding Section 416(i)(5)) at any time during the twelve (12) month period ending on a Specified Employee Identification Date.  If an Executive is a key employee as of a Specified Employee Identification Date, the Executive is treated as a key employee for purposes of the Agreement for the entire twelve (12) month period beginning on the Specified Employee Effective Date. 

		
	b.
	“Specified Employee Effective Date” is the date as set forth in Treasury Regulation Section 1.409A-1(i)(4).  

		
	c.
	“Specified Employee Identification Date” shall mean December 31st of each year.

		
	d.
	Anything in this Agreement to the contrary notwithstanding, if at the time of the Termination Date, the Executive is considered a “Specified Employee”, and if any payment that the Executive becomes entitled to under this Agreement is considered deferred compensation subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earlier of (i) six (6) months after the Executive’s separation from service, or (ii) the Executive’s death.  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

		
	11.
	Miscellaneous Provisions.

		
	a.
	Entire Agreement.  This Agreement, together with the Stock Plan, equity award agreements and any Confidentiality and Proprietary Rights Agreement, contains the entire agreement of the parties with respect to the subject matter herein and supersedes and replaces all prior or contemporaneous agreements or understandings between the parties.  This Agreement may not be amended or modified in any manner, except by an instrument in writing signed by Executive and Chief Executive Officer of Company.  Failure of either party to enforce any of the provisions of this Agreement or any rights with respect thereto or failure to exercise any election provided for herein shall in no way be considered to be a waiver of such provisions, rights or elections or in any way effect the validity of this Agreement.  The failure of either party to exercise any of said provisions, rights or elections shall not preclude or prejudice such party from later enforcing or exercising the same or other provisions, rights or elections which it may have under this Agreement.

		
	b.
	Successors and Beneficiaries.  This Agreement shall be binding on and inure to the benefit of the successors, assigns, heirs, devisees and personal representatives of the parties, including any successor to Company by merger or combination and any purchaser of all or substantially all of the assets of Company.  In the event that Executive dies before receipt of all benefits to which Executive becomes entitled under this Agreement, the payment of such benefits will be made, on the due date or dates hereunder had Executive survived, to the executors or administrators of Executive’s estate.

		
	c.
	Governing Law.  This Agreement is made in, and shall be governed by and construed in accordance with the laws of, the State of New Jersey.

		
	d.
	Severability.  If any term, provision, covenant or condition of this Agreement is held to be invalid, void, or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

RUDOLPH TECHNOLOGIES, INC.            RICHARD ROGOFF

By: /s/ Paul F. McLaughlin                                  /s/ Richard Rogoff                                  
Paul F. McLaughlin
Chairman and CEOEXHIBIT (10)(f)

 

THE EMPIRE DISTRICT ELECTRIC COMPANY

 

DEFERRED COMPENSATION PLAN

 

1.              Purpose.  Effective as of January 1, 2015, The Empire District Electric Company (the “Company”) establishes this Deferred Compensation Plan (the “Plan”) for the purpose of allowing selected “Cash Balance Participants” in the Company’s 401(k) Plan and ESOP (the “401(k) Plan”) to obtain retirement savings that are not available to them under the 401(k) Plan due to (a) the exclusion of Incentive Compensation from that Plan’s definition of “Compensation,” and (b) the Compensation limitation imposed on that Plan by Section 401(a)(17) of the Internal Revenue Code of 1986 (the “Code”).  This Plan is intended to constitute a “nonqualified deferred compensation plan,” within the meaning of Code Section 409A(d)(1), and to qualify for various exemptions from the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) as an unfunded arrangement for the benefit of a select group of management or highly compensated employees.  The Plan shall be construed and administered in a manner consistent with this intent.

 

2.              Definitions.  Unless otherwise clearly apparent from the context, the following terms shall have the indicated meanings under this Plan:

 

(a)         “401(k) Plan” shall mean The Empire District Electric Company 401(k) Plan and ESOP, as in effect from time to time.

 

(b)  “Account” shall mean a bookkeeping account established in a Participant’s name for the sole purpose of measuring the benefit payable to the Participant or the Participant’s Beneficiary under those circumstances described in this Plan.

 

(c) “Account Balance” shall mean, with respect to any Participant, the sum of all Deferrals and Matching Contributions credited to his or her Account for all years the Participant has participated in this Plan, as adjusted for any Earnings on such amounts, and as reduced for any prior distributions to the Participant or his or her Beneficiary.

 

(d)  “Annual Compensation Limit” shall mean, for any Plan Year, the inflation-adjusted dollar limitation in effect for that year under Section 401(a)(17) of the Code.

 

(e)  “Base Pay” shall mean, for any Plan Year, a Participant’s “Compensation” for that Plan Year, as that term is defined in the 401(k) Plan, but

 

(i)                                     Increased by any amount excluded from that definition as a result of a Deferral made under this Plan; and

 

(ii)                                  Without regard to the Annual Compensation Limit.

 

(f)  “Beneficiary” shall mean the person or persons entitled to receive any benefit payable under this Plan following a Participant’s death.  Such Beneficiary shall be designated in accordance with Paragraph 11.

 

 

(g)   “Board” shall mean the Board of Directors of the Company.

 

(h) “Cash Balance Participant” shall mean any Employee who is a “Cash Balance Participant” in the 401(k) Plan.

 

(i)  “CEO” shall mean the Chief Executive Officer of the Company.  The CEO may delegate to one or more individuals any or all of the duties assigned to the CEO under the Plan.

 

(j)   “Change in Control” shall have the meaning set forth in Paragraph 9.

 

(k)  “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

(l)    “Company” shall mean The Empire District Electric Company, a Kansas corporation.

 

(m) “Deferrals” shall mean the amounts credited to a Participant’s Account under Paragraph 4.

 

(n)  “Disability” shall mean any medically determinable physical or mental impairment of a Participant that can be expected to result in death or to last for a continuous period of not less than twelve (12) months, provided that such impairment results in the Participant either:

 

(i)   Being unable to engage in any substantial gainful activity, or

 

(ii) Receiving income replacement benefits for a period of at least three (3) months under an accident and health plan covering employees of the Company.

 

(o) “Earnings” shall mean any investment gains or losses credited to a Participant’s Account under Paragraph 6.

 

(p)   “Effective Date” shall mean January 1, 2015.

 

(q)  “Eligible Employee” shall mean any Cash Balance Participant whose title with the Company is either

 

(i)                                     Chief Executive Officer, or

 

(ii)                                  Vice President.

 

(r)   “Employee” shall mean any common-law employee of the Company.

 

(s)  “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

 

(t)   “Incentive Compensation” shall mean, for any Plan Year, any amount earned by a Participant during that Plan Year under the Company’s Non-Equity Incentive Compensation Plan, regardless of whether such amount is payable during that Plan Year.

 

(u)   “Matching Contributions” shall mean the amounts credited to a Participant’s Account under Paragraph 5.

 

(v)  “Participant” shall mean any Eligible Employee who becomes a Participant in accordance with Paragraph 3, but shall also include any former Employee who continues to have an Account Balance.

 

(w)  “Plan” shall mean The Empire District Electric Company Deferred Compensation Plan, as herein set forth and as amended from time to time.

 

(x)   “Plan Year” shall mean the calendar year.

 

(y)  “Retire” or “Retirement” shall mean a Participant’s Separation From Service after becoming entitled to an Early, Normal, or Postponed Retirement Benefit under the Retirement Plan.

 

(z)  “Retirement Plan” shall mean The Empire District Electric Company Employees’ Retirement Plan.

 

(aa) “Separation From Service” shall mean a Participant’s termination of employment with the Company and all of its affiliated employers, regardless of the reason therefor.  In all events, this phrase shall be construed in a manner consistent with the requirements of Code Section 409A, including any applicable IRS guidance.

 

(bb) “Specified Employee” shall mean any Employee described in Code Section 409A(a)(2)(B)(i), but only if the Company’s stock is publicly traded at the time of such Employee’s Separation From Service.

 

(cc)  “Valuation Date” shall mean the last business day of each month, as well as such other dates as are determined by the CEO.

 

(dd)   “Voting Securities” shall mean any securities of the Company which vote generally in the election of Board members.

 

(ee)   “Year of Service” shall mean each Plan Year during which an Eligible Employee completes at least 1,000 hours of service with the Company or any affiliated employer, including Plan Years before the Effective Date of this Plan.

 

3.              Participation.  Any Eligible Employee who makes a Deferral election under Paragraph 4 shall thereby become a Participant in this Plan.

 

4.              Deferrals.  For each Plan Year beginning on or after the Effective Date, a Participant may make either or both of the following elections:

 

 

(a)                                 To defer the receipt of up to six percent (6%) of that portion of his or her Base Pay that exceeds the Annual Compensation Limit for that Plan Year (disregarding, for this purpose, any Incentive Compensation that is either earned or received during that Plan Year); and

 

(b)                                 To defer the receipt of up to six percent (6%) of any Incentive Compensation to be earned during that Plan Year, but only to the extent that such Incentive Compensation, when added to the Base Pay received by the Participant during that Plan Year, exceeds the Annual Compensation Limit for that Plan Year.

 

Any amount deferred under this Section shall be credited to a Participant’s Account as a Deferral as of the date such amount would otherwise be paid to the Participant as either Base Pay or Incentive Compensation.

 

Any such Deferral election shall be made in writing, on a form provided for that purpose by the Board, prior to the beginning of the Plan Year to which it relates, and it may not be revoked or modified during that Plan Year.  No new Deferral election may become effective until the first day of the following Plan Year.  Unless and until a Participant submits a new Deferral election in accordance with the provisions of this Paragraph, any such Deferral election shall remain in effect for succeeding Plan Years, becoming irrevocable with respect to each year as of the last day of the immediately preceding year.

 

5.              Matching Contributions.  For each Plan Year, the Company shall credit the following Matching Contributions to the Account of any Participant who elects to make Deferrals under Section 4:

 

(a)         As soon as administratively practicable following the close of the Plan Year, the Company shall credit a Matching Contribution equal to the Participant’s Deferrals of Base Pay during that Plan Year.

 

(b)         As soon as administratively practicable following the date on which Incentive Compensation would otherwise be payable to a Participant, the Company shall credit a Matching Contribution equal to the Deferrals taken from that Participant’s Incentive Compensation.

 

No Matching Contribution shall be made on behalf of any Participant who incurs a Separation From Service during the Plan Year.  Notwithstanding the preceding sentence, any Participant who Retires, dies, or becomes Disabled during a Plan Year shall receive a Matching Contribution for that Plan Year (calculated as described above), as soon as administratively practicable after the Participant’s Retirement, death, or Disability (or, in the case of Incentive Compensation, as soon as administratively practicable after that Incentive Compensation would otherwise be payable to the Participant).

 

6.              Earnings.  The Company shall establish a program for the investment of Participants’ Accounts.  Although Participants may be consulted with respect to such investments, the Company reserves the right to invest all Accounts as it deems best.  As of each Valuation Date, the Company shall credit or debit each Participant’s Account Balance with that Participant’s proportionate share of any gains or losses resulting from the Company’s investment program.  Accounts shall not be invested in Company stock.

 

 

7.              Vesting.  The portion of a Participant’s Account Balance attributable to Deferrals shall be fully vested at all times.  The portion of a Participant’s Account Balance attributable to Matching Contributions shall become fully vested if a Participant Separates From Service with the Company and all of its affiliates on account of Retirement, death, or Disability, or if the Company experiences a Change in Control.  Otherwise, the portion of a Participant’s Account Balance attributable to Matching Contributions shall vest in accordance with the following schedule:

 

	
Years of Service
    	
 
    	
Vested Percentage
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Less than 1
    	
 
    	
0
    	
%
    
	
1
    	
 
    	
20
    	
%
    
	
2
    	
 
    	
40
    	
%
    
	
3
    	
 
    	
60
    	
%
    
	
4
    	
 
    	
80
    	
%
    
	
5 or more
    	
 
    	
100
    	
%
    

 

Notwithstanding the foregoing, in the event the Company adopts a compensation recovery (“clawback”) policy, in accordance with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, such policy shall apply to any portion of a Participant’s Account Balance attributable to Matching Contributions, even if such policy requires the forfeiture of an otherwise vested amount.

 

8.              Distributions.  Except as otherwise elected in accordance with Paragraph 9, a Participant (or, in the event of the Participant’s death, the Participant’s Beneficiary) shall receive a cash distribution of his or her entire vested Account Balance, in a single, lump-sum payment, within ninety (90) days after the earliest of the Participant’s:

 

(a)         Separation From Service (or, in the case of a Specified Employee, the six- (6) month anniversary of such Separation From Service);

 

(b)         Death; or

 

(c)          Disability.

 

Notwithstanding the foregoing, in the event a Deferral and/or Matching Contribution is credited to a Participant’s Account during the Plan Year after the Plan Year of a Participant’s Separation From Service (attributable to Incentive Compensation that is earned during the Plan Year of the Separation From Service but not payable until the following Plan Year), the Account Balance attributable to such Deferral and/or Matching Contribution shall be paid to the Participant by the close of the Plan Year in which the amount is credited.

 

9.              Distribution Deferral Elections.  A Participant may elect, at least twelve (12) months before the earliest of the distribution dates described in a Paragraph 8, to defer the distribution of his or her Account Balance.  Except in the case of a Participant’s Disability or death, any such distribution deferral election must defer the distribution for a period of at least five (5) years from the date the distribution otherwise would have been made.  Any such deferred distribution shall be payable in a single, lump-sum payment.  A Participant may make more than one distribution deferral election under the provisions of this Paragraph.

 

 

10.       Change in Control.  For purposes of this Plan, a “Change in Control” shall be deemed to have occurred if:

 

(a)         A merger or consolidation of the Company with any other corporation is consummated, other than a merger or consolidation which would result in the Voting Securities of the Company held by such shareholders outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by converting into Voting Securities of the surviving entity) more than 75 percent of the Company or such surviving entity outstanding immediately after such merger or consolidation;

 

(b)         A sale, exchange or other disposition of all or substantially all the assets of the Company for the securities of another entity, cash or other property is consummated;

 

(c)          The shareholders of the Company approve a plan of liquidation or dissolution of the Company;

 

(d)         Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or other than a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of Voting Securities of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of Voting Securities of the Company representing at least 25 percent of the total voting power represented by the Voting Securities of the Company then outstanding; or

 

(e)          Individuals who, on January 1, 2001, constitute the Board, and any new Board member whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the Board members then still in office who either were Board members on January 1, 2001, or whose election or nomination for election to the Board was previously so approved, cease for any reason to constitute a majority thereof.

 

11.       Designation of Beneficiary.  A Participant shall designate one or more Beneficiaries, some of whom may be contingent Beneficiaries.  Any such Beneficiary designation shall be made in writing, on a form provided by the Board.  A Participant may revoke any Beneficiary designation, and may designate a new primary or contingent Beneficiary, at any time.  No such revocation or new designation shall become effective, however, until received in writing by the Secretary of the Board.  In the absence of an effective Beneficiary designation, a Participant’s Beneficiary shall be the Participant’s surviving spouse, if any, or if none, the Participant’s estate.

 

12.       Unfunded Status.  It is specifically intended that all Deferrals, Matching Contributions, and Earnings under the provisions of this Plan shall be “unfunded” for purposes of both the Code and ERISA.  To that end, benefits payable hereunder shall be paid exclusively from the Company’s general assets.  Although the Company may establish a trust for the purpose of holding Participants’ Account Balances, the agreement establishing any such trust shall provide that the assets held therein will be available to satisfy claims of the Company’s general creditors in the event of the Company’s insolvency.  No Participant or Beneficiary shall have any claim, right, security interest, or other interest in any fund, trust, account, insurance contract, or other asset of the Company that may be looked to for such payment.  Rather, a Participant (or his or her Beneficiary) shall be a general, unsecured creditor of the Company.

 

 

13.       Restrictions on Alienation.  No right or benefit under this Plan shall be subject to anticipation, alienation, sale, assignment, pledge, borrowing, encumbrance, or charge; and any attempt to anticipate, alienate, sell, assign, pledge, borrow, encumber, or charge the same shall be void.  Nor shall any right or benefit under this Plan be in any manner liable for or subject to the debts, contracts, liabilities, or torts of any Participant or Beneficiary.  Notwithstanding the preceding provisions of this Paragraph, the Board may authorize the payment or assignment of benefits pursuant to a “qualified domestic relations order,” as defined in Section 206(d)(3)(B)(i) of ERISA.  A Participant’s Account Balance shall be reduced to reflect the amount of any such payment.

 

14.       Withholding of Taxes.  The Company shall withhold from any distribution made under this Plan any taxes or other amounts required to be withheld at the time of such distribution.  Moreover, if any portion of a Participant’s Account Balance becomes subject to immediate taxation under any provision of the Code before the date it is distributable, the Company shall distribute to the Participant from his or her Account the amount that the Company would have been required to withhold for federal income tax purposes if such taxable amount had been paid to the Participant as a bonus.  The Company shall remit any such withheld or deducted amount to the appropriate taxing authority, and shall inform the Participant or his or her Beneficiary of the amount so remitted by use of appropriate tax forms or by written notice concerning the Participant’s Account Balance.

 

15.       Administration.  The Board will have full power to interpret the Plan and to determine all questions that arise under it.  Such power includes, for example, the administrative discretion necessary to determine whether an individual meets the Plan’s eligibility requirements and to interpret any other term contained in this document.  The Board may delegate such ministerial responsibilities as it believes appropriate to one or more individuals, who may (but need not) be Employees.

 

16.       Claims and Appeals Procedures.  A request for a Plan benefit shall be filed with the CEO (or, in the case of the CEO, with the Secretary of the Board).  Such a request, hereinafter referred to as a “claim,” shall be deemed filed when the executed claim form is received by the CEO (or Board Secretary).

 

(a)         Initial Claim Determination.  The CEO (or, in the case of the CEO, the Board) shall decide each claim within a reasonable time after it is received. If a claim is wholly or partially denied, the claimant shall be furnished a written notice setting forth, in a manner calculated to be understood by the claimant:

 

(i)                                     The specific reason or reasons for the denial,

 

(ii)                                  Specific references to pertinent Plan provisions on which the denial was based,

 

(iii)                               A description of any additional material or information necessary for the claimant to perfect the claim, along with an explanation of why such material or information is necessary, and

 

(iv)                              Appropriate information as to the steps to be taken if the claimant wishes to appeal the denial of his or her claim, including the period during which such an appeal must be filed and the period in which it will be decided.

 

The notice shall be furnished to the claimant within ninety (90) days after receipt of the claim by the CEO (or Board Secretary), unless special circumstances require an extension of time for processing the claim.  No extension shall be for more than ninety (90) days after the end of the initial ninety (90) day period.  If an extension of time for processing is required, written notice of the extension shall be furnished to the claimant before the end of the initial ninety (90) day

 

 

period.  The extension notice shall indicate the special circumstances requiring an extension of time and the date by which a final decision will be rendered.

 

(b)                                 Appealing a Claim.  If a claim is denied, the claimant may appeal the denial to the Board, upon written application to the Secretary of the Board.  The claimant may review documents pertinent to the appeal and may submit issues and comments in writing to the Board.  No appeal shall be considered unless it is received by the Board Secretary within ninety (90) days after receipt by the claimant of written notification of the denial of the claim.  The Board shall decide the appeal within sixty (60) days after it is received.  However, if special circumstances require an extension of time for processing, a decision shall be rendered as soon as possible, but not later than one-hundred twenty (120) days after the appeal is received.  If such an extension of time for deciding the appeal is required, written notice of the extension shall be furnished to the claimant before the commencement of the extension.  The decision of the Board shall be in writing and shall include specific reasons for the decision, written in a manner calculated to be understood by the claimant, with specific references to the pertinent Plan provisions upon which the decision was based.

 

17.                               Amendment and Termination.  The Board may amend or terminate this Plan at any time.  No such action, however, shall affect a Participant’s right to receive his or her Account Balance (determined as of the date of such amendment or termination), in accordance with the applicable Plan provisions.  Nor shall such termination accelerate the payment of any Account Balance, except as permitted under Code Section 409A and the IRS regulations thereunder.

 

18.                               General Provisions.

 

(a)                                 Employment Relationship.  In no event shall a Participant’s terms and conditions of employment be modified or in any way affected by this Plan.

 

(b)                                 Successors and Assigns.  The provisions of this Plan shall be binding on the Company and its successors and assigns, and on each Participant, Beneficiary and their respective assigns, heirs, executors, and administrators.

 

(c)                                  Governing Law.  Except to the extent preempted by federal law, all questions arising under this Plan shall be determined by reference to the laws of the State of Missouri (other than its laws respecting choice of law).

 

IN WITNESS WHEREOF, The Empire District Electric Company has caused this Deferred Compensation Plan to be executed on its behalf this 30th day of October 2014, but effective as of January 1, 2015.

 

 

	
 
    	
 
    	
THE   EMPIRE DISTRICT ELECTRIC COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bradley P. Beecher
    
	
 
    	
Title:
    	
President and   Chief Executive Officer
    
	
 
    	
 
    
	
ATTEST:
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Janet S. Watson
    	
 
    
	
Title: 
    	
Secretary

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