Document:

EX-10.7

 

Exhibit 10.7

WHEELING-PITTSBURGH STEEL CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Effective August 1, 2006

 

 

	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	1.1	 	 	“Account”
	 	 	2	 
	 

	 	 	1.2	 	 	“Actuarially Equivalent”
	 	 	2	 
	 

	 	 	1.3	 	 	“Annuity Forms of Benefit”
	 	 	2	 
	 

	 	 	1.4	 	 	“Beneficiary”
	 	 	2	 
	 

	 	 	1.5	 	 	“Board”
	 	 	2	 
	 

	 	 	1.6	 	 	“Cause”
	 	 	2	 
	 

	 	 	1.7	 	 	“Change in Control”
	 	 	3	 
	 

	 	 	1.8	 	 	“Code”
	 	 	4	 
	 

	 	 	1.9	 	 	“Company”
	 	 	4	 
	 

	 	 	1.10	 	 	“Compensation”
	 	 	4	 
	 

	 	 	1.11	 	 	“Compensation Committee”
	 	 	4	 
	 

	 	 	1.12	 	 	“Contributions”
	 	 	4	 
	 

	 	 	1.13	 	 	“Credited Service”
	 	 	4	 
	 

	 	 	1.14	 	 	“Disability” or “Disabled”
	 	 	4	 
	 

	 	 	1.15	 	 	“ERISA”
	 	 	5	 
	 

	 	 	1.16	 	 	“Fifty Percent Joint and Survivor Annuity”
	 	 	5	 
	 

	 	 	1.17	 	 	“Good Reason”
	 	 	5	 
	 

	 	 	1.18	 	 	“Lump Sum”
	 	 	6	 
	 

	 	 	1.19	 	 	“One Hundred Percent Joint and Survivor Annuity”
	 	 	6	 
	 

	 	 	1.20	 	 	“Participant”
	 	 	6	 
	 

	 	 	1.21	 	 	“Plan”
	 	 	6	 
	 

	 	 	1.22	 	 	“Retirement Benefit”
	 	 	6	 
	 

	 	 	1.23	 	 	“Separation from Service”
	 	 	6	 
	 

	 	 	1.24	 	 	“Single Life Annuity”
	 	 	6	 
	 

	 	 	1.25	 	 	“Specified Employee”
	 	 	6	 
	 

	 	 	1.26	 	 	“Ten-Year Certain Annuity”
	 	 	7	 
	 

	 	 	1.27	 	 	“Years of Credited Service”
	 	 	7	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE II ADMINISTRATION	 	 	7	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	2.1	 	 	Compensation Committee
	 	 	7	 
	 

	 	 	2.2	 	 	Claims Procedures
	 	 	8	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE III PARTICIPATION, INITIAL ELECTIONS AND ALLOCATIONS	 	 	9	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.1	 	 	Participation
	 	 	9	 
	 

	 	 	3.2	 	 	Initial Elections
	 	 	9	 
	 

	 	 	3.3	 	 	Subsequent Elections
	 	 	10	 
	 

	 	 	3.4	 	 	Company Contributions and Allocation
	 	 	10	 
	 

	 	 	3.5	 	 	Earnings
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE IV RETIREMENT AND DEATH BENEFITS	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.1	 	 	Separation From Service
	 	 	11	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	4.2	 	 	Vesting on Certain Separations From Service
	 	 	11	 
	 

	 	 	4.3	 	 	Death Benefit
	 	 	11	 
	 

	 	 	4.4	 	 	Separation from Service Prior to Vesting or For Cause
	 	 	11	 
	 

	 	 	4.5	 	 	Effect of Change in Control
	 	 	12	 
	 

	 	 	4.6	 	 	Compliance with Certain Obligations
	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE V TIMING AND FORM OF RETIREMENT BENEFIT	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	5.1	 	 	Timing
	 	 	12	 
	 

	 	 	5.2	 	 	Form
	 	 	15	 
	 

	 	 	5.3	 	 	Effect of Separation From Service and Reemployment
	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE VI FUNDING	 	 	16	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE VII AMENDMENT AND TERMINATION	 	 	16	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	7.1	 	 	Amendment
	 	 	16	 
	 

	 	 	7.2	 	 	Termination
	 	 	16	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE VIII GENERAL PROVISIONS	 	 	17	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	8.1	 	 	Payments to Minors and Incompetents
	 	 	17	 
	 

	 	 	8.2	 	 	No Contract
	 	 	18	 
	 

	 	 	8.3	 	 	Non-Alienation of Benefits
	 	 	18	 
	 

	 	 	8.4	 	 	Income Tax Withholding
	 	 	18	 
	 

	 	 	8.5	 	 	Governing Law
	 	 	18	 
	 

	 	 	8.6	 	 	Captions
	 	 	18	 
	 

	 	 	8.7	 	 	Severability
	 	 	19	 
	 

	 	 	8.8	 	 	Notices
	 	 	19	 
	 

	 	 	8.9	 	 	Binding Nature; Assignability
	 	 	19	 
	 

	 	 	8.10	 	 	Gender, Singular and Plural
	 	 	19	 
	 

	 	 	8.11	 	 	409A Compliance
	 	 	19	 
	 
	 	 	 	 	 	 	 	 	 	 
	APPENDIX A	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	APPENDIX B	 	 	1	 

 

 

WHEELING-PITTSBURGH STEEL CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

PREAMBLE

Effective August 1, 2006, the Board of Directors of Wheeling-Pittsburgh Corporation (the “Parent”)
established this nonqualified deferred compensation plan referred to as the Wheeling-Pittsburgh
Steel Corporation Supplemental Executive Retirement Plan (the “Plan”) for the benefit of a select
group of management or highly compensated employees of the Parent and its subsidiaries.

It is intended that the Plan be exempt from the reporting, disclosure, participation, vesting,
funding and fiduciary responsibility requirements of Title I of the Employee Retirement Income
Security Act of 1974 because it is an unfunded plan maintained by an employer for the purpose of
providing benefits for a select group of management or highly compensated employees.

 

 

ARTICLE I

DEFINITIONS

The following words and phrases when used in the Plan shall have the meanings indicated in this
Article I. Unless indicated otherwise, references herein to articles and sections are to articles
and sections of the Plan.

	 	1.1	 	“Account” means the bookkeeping account maintained for each Participant on the books of the
Company to which Company Contributions, and earnings and losses, thereon, are credited.
	 
	 	1.2	 	“Actuarially Equivalent” means a benefit of equal value, determined using (a) the annual
interest rate on 30-year Treasury securities, as specified by the Commissioner of Internal
Revenue pursuant to Section 417(e)(3)(A)(ii)(II) of the Code, for the month immediately
preceding the month in which distribution of the Participant’s Retirement Benefit is made or
commences, and (b) the 1994 Group Annuity Reserving Table projected using scale AA from 1994
to the calculation date.
	 
	 	1.3	 	“Annuity Forms of Benefit” means the Fifty Percent Joint and Survivor Annuity, the One
Hundred Percent Joint and Survivor Annuity, the Single Life Annuity, and the Ten-Year Certain
Single Life Annuity. All Annuity Forms of Benefit shall be of Actuarially Equivalent value.
	 
	 	1.4	 	“Beneficiary” means any individual designated by a Participant as his beneficiary in
accordance with procedures established by the Compensation Committee. If a Participant has no
Beneficiary designation in effect, or if the Participant’s designated Beneficiary predeceases
the participant, the Participant’s Beneficiary shall be the Participant’s surviving spouse, if
any, and if none, the Participant’s estate.
	 
	 	1.5	 	“Board” means the Board of Directors of the Parent.
	 
	 	1.6	 	“Cause” means (a) if the Participant is subject to an employment agreement with the Parent or
Company containing a definition of “cause”, the meaning set forth in such employment
agreement, or (b) if the Participant is not subject to an employment agreement with the Parent
or Company, the Participant has (i) been convicted of,
or has pled guilty or nolo contendere to, any felony, or any misdemeanor involving moral turpitude
under the laws of the United States or any state or political subdivisions thereof; (ii) committed a
breach of duty of loyalty which is materially detrimental to the Parent or Company; (iii) materially
violated the provisions of any restrictive covenant applicable to the Participant; (iv) failed to
perform or adhere to explicitly stated duties or guidelines of employment or to follow the
directives of the Board (which are not unlawful to perform or to adhere to or follow and which are
within the scope of the Participant’s duties) following a written warning that if such failure
continues it will

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	 	 	 	be deemed a basis for a “For Cause” dismissal; or (v) acted with gross negligence
or willful misconduct in the performance of the Participant’s duties. No act, or failure to act, on
the Participant’s part shall be deemed “willful” unless done, or omitted to be done, by the
Participant not in good faith and without reasonable belief that the Participant’s act, or failure
to act, was in the best interest of the Parent or Company. Following a Change of Control,
subsection (b)(iv) above shall be deleted from this definition of “Cause.”
	 
	 	1.7	 	“Change in Control” means the occurrence of any of the following:

	 	(a)	 	a merger or consolidation of the Parent or Company with or into another person
or the sale, transfer, or other disposition of all or substantially all of the Parent’s
or Company’s assets to one or more other persons in a single transaction or series of
related transactions, unless securities possessing more than 50% of the total combined
voting power of the survivor’s or acquirer’s outstanding securities (or the securities
of any parent thereof) are held by a person or persons who held securities possessing
more than 50% of the total combined voting power of the Parent immediately prior to
that transaction;
	 
	 	(b)	 	any person or group of persons (within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended and in effect from time to time), other
than the Parent, the Company or an affiliate, directly or indirectly acquires
beneficial ownership (determined pursuant to Securities and Exchange Commission Rule
13d-3 promulgated under the said Exchange Act) of securities possessing more than 50%
of the total combined voting power of the Parent’s outstanding securities pursuant to a
tender or exchange offer made directly to the Parent’s stockholders; or
	 
	 	(c)	 	over a period of 36 consecutive months or less, there is a change in the
composition of the Board such that a majority of the members of the Board (rounded up
to the next whole number, if a fraction) ceases to be composed of individuals who
either (1) have been members of the Board continuously since the beginning of the
36-month period referred to above or (2) have been elected or nominated for election as
Board members during such period by at least a majority of the members Board described
in the preceding clause (1) who were still in office at the time that election or
nomination was approved by the Board, provided, however, that a Change of Control
shall be deemed to have occurred in any event if, by reason of one or more actual or
threatened proxy contests for the election of directors or otherwise, a majority of
the Board shall consist of individuals, other than directors referred to in clause
(1) above, whose election as members of the Board occur within such 36-month period
at the request or on behalf of the same person or group of persons (within the
meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended and
in effect from time to time).

- 3 -

 

	 	1.8	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	1.9	 	“Company” means Wheeling-Pittsburgh Steel Corporation and any entity that acquires or
succeeds to all or substantially all of the Company’s business or assets and any successor to
any such entity.
	 
	 	1.10	 	“Compensation” means the total amount of a Participant’s base salary and any bonus or other
cash incentive compensation (excluding any cash or other payment under or in connection with
the Company’s equity incentive plans, including but not limited to the 2003 Management Stock
Incentive Plan) paid or otherwise received by Participant during the applicable Plan Year.
For a Participant’s initial year of participation in the Plan, only Compensation earned and
payable after the effective date of the Participant’s participation in the Plan shall be
included for purposes of this definition.
	 
	 	1.11	 	“Compensation Committee” means the Compensation Committee of the Board.
	 
	 	1.12	 	“Contributions” means the amounts contributed by the Company to the Plan on behalf of each
Participant pursuant to Section 3.4.
	 
	 	1.13	 	“Credited Service” means all calendar months of employment with the Company and its
subsidiaries, whether or not consecutive. Calendar months in which a Participant was employed
at any time during the month shall be included in determining the Participant’s Credited
Service. Notwithstanding the foregoing, the following special service rules shall apply:

	 	(a)	 	a Participant shall not receive any Credited Service for pre-acquisition
periods of employment for a company or business that is acquired by the Parent or its
subsidiaries, whether by acquisition of stock, acquisition of assets, merger or
otherwise; and
	 
	 	(b)	 	a Participant may be granted additional Credited Service at the sole discretion
and approval of the Compensation Committee.

	 	1.14	 	“Disability” or “Disabled” means 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 and

	 	(a)	 	renders the Participant unable to engage in any substantial gainful activity;
or
	 
	 	(b)	 	because of which the Participant has been in receipt of income replacement
benefits for a period of not less than 3 months under an accident and health plan
covering employees of the Company.

	 	 	 	A Participant shall only be treated as Disabled for purposes of this Plan if the Participant
has been determined to be disabled by an insurer providing disability insurance benefits
under a disability insurance program sponsored by the Parent

- 4 -

 

	 	 	 	or Company, provided that the
definition of disability used to determine eligibility for disability insurance benefits
under such disability insurance program requires a level of disability that would satisfy
the preceding provisions of this Section. Any Disability determination shall be made in
accordance with Section 409A of the Code and any regulations or other guidance thereunder.
	 
	 	1.15	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
regulations thereunder.
	 
	 	1.16	 	“Fifty Percent Joint and Survivor Annuity” means, with respect to a Participant, a form of
payment that is Actuarially Equivalent to a Lump Sum benefit and under which the benefit is
paid in monthly installments commencing as set forth in Section 5.1 and continuing for the
lifetime of the Participant, with 50% of such amount being paid to the Participant’s
Beneficiary for so long as the Beneficiary survives after the Participant’s death.
	 
	 	1.17	 	“Good Reason” means (a) if the Participant is subject to an employment agreement with the
Parent or Company containing a definition of “good reason”, the meaning set forth in such
employment agreement, or (b) if the Participant is not subject to an employment
agreement with the Parent or Company, (i) with respect to a Participant who is a senior
executive officer, the assignment to the Participant of any duties materially inconsistent
with the Participant’s status as a senior executive officer of the Parent or Company, as
applicable, or a meaningful alteration, adverse to the Participant, in the nature or status
of the Participant’s responsibilities (other than reporting responsibilities); (ii)
permanent relocation of the Participant’s principal place of employment to a location more
than seventy-five miles distant from the Participant’s existing principal place of
employment; (iii) a reduction by the Company in the Participant’s annual base salary except
for across-the-board salary reductions similarly affecting all senior executives of the
Parent or Company and all senior executives of any person in control of the Parent or
Company; (iv) the failure by the Parent or the Company to continue in effect any
compensation plan in which the Participant participates which is material to the
Participant’s total compensation, or the continuation by the Parent or Company of
Participant’s participation therein on a basis materially less favorable, both in terms of
the amount of benefits provided and the level of the Participant’s participation, relative
to other participants; or (v) the failure by the Parent or the Company to continue to
provide the Participant with benefits substantially similar to those enjoyed by the
Participant under any of the Parent’s or Company’s pension, life insurance, medical, health
and accident, or disability plans at any time subsequent to the Effective Date, or the
taking of any action by the Parent or Company which would directly or indirectly materially
reduce any of such benefits or deprive the Participant of any material fringe benefit
enjoyed by the Participant at any time subsequent to the Effective Date. Notwithstanding
the foregoing, the events described in (iv) and (v) above shall not constitute “Good Reason”
where they are the direct result of the elimination or modification of benefit plans or
arrangements by the Parent or Company with respect to employees generally. Unless otherwise
provided by the Compensation

- 5 -

 

	 	 	 	Committee, no termination by a Participant shall be deemed to
be with “Good Reason” unless the Participant gives notice of such termination (including
notice given under the terms of the Participant’s employment agreement with the Parent or
Company, if applicable) within sixty (60) days of the occurrence of an event constituting
“Good Reason” hereunder.
	 
	 	1.18	 	“Lump Sum” means a single sum benefit that is equal to the balance credited to a
Participant’s Account.
	 
	 	1.19	 	“One Hundred Percent Joint and Survivor Annuity” means, with respect to a Participant, a form
of payment that is Actuarially Equivalent to a Lump Sum benefit and under which the benefit is
paid in monthly installments commencing as set forth in Section 5.1 and continuing for the
lifetime of the Participant, with 100% of such amount being paid to the Participant’s
Beneficiary for so long as the Beneficiary survives after the Participant’s death.
	 
	 	1.20	 	“Participant” means an employee of the Parent or any of its subsidiaries who is
selected for participation in accordance with Section 3.1.
	 
	 	1.21	 	“Plan” means this Wheeling-Pittsburgh Steel Corporation Supplemental Executive Retirement
Plan, as set forth herein and as amended from time to time in accordance herewith.
	 
	 	1.22	 	“Retirement Benefit” means the applicable benefit described in Article III.
	 
	 	1.23	 	“Separation from Service” means a Participant’s death, Disability, retirement or other
termination of employment with the Parent, the Company and any subsidiaries thereof;
provided, however, that, for purposes of this definition, the employment
relationship is treated as continuing intact while the Participant is on military leave, sick
leave, or other bona fide leave of absence (such as temporary employment by the government) if
the period of such leave does not exceed six months, or if longer, so long as the
Participant’s right to reemployment with the Company is provided either by statute or by
contract. If the period of leave exceeds six months and the Participant’s right to
reemployment is not provided either by statute or by contract, the employment relationship is
deemed to terminate on the first date immediately following such six-month period. The term
“Separation from Service” shall be interpreted and applied in accordance with Section 409A of
the Code and any regulations or other guidance thereunder.
	 
	 	1.24	 	“Single Life Annuity” means a form of payment that is Actuarially Equivalent to a Lump Sum
benefit under which the benefit is paid in monthly installments commencing as set forth in
Section 5.1 and continuing for the lifetime of the Participant.
	 
	 	1.25	 	“Specified Employee” means a key employee (as defined in Section 416(i) of the Code without
regard to Section 416(i)(5) of the Code) of the Company,

- 6 -

 

	 	 	 	determined in accordance with Section
409A of the Code and any regulations or other guidance thereunder.
	 
	 	1.26	 	“Ten-Year Certain Annuity” means, with respect to a Participant, a form of payment that is
Actuarially Equivalent to a Lump Sum benefit and under which the benefit is paid in monthly
installments commencing as set forth in Section 5.1 and continuing for the longer of (a) the
lifetime of the Participant or (b) 120 months. In the event that the Participant dies before
having received payment for 120 months, the remaining installment
payments that would have been paid to the Participant had the Participant survived to the
end of the 120-month period shall be payable to such Participant’s Beneficiary.
	 
	 	1.27	 	“Years of Credited Service” means (a) the number of calendar months of Credited Service from
the Participant’s original date of hire (taking into account all consecutive and
nonconsecutive periods of employment), divided by (b) 12.

ARTICLE II

ADMINISTRATION

	 	2.1	 	Compensation Committee

	 	(a)	 	Responsibilities. The Plan shall be administered by the Compensation
Committee, which shall be responsible for the interpretation of the Plan and
establishment of the rules and regulations governing the administration thereof. The
Compensation Committee shall have full discretion to interpret and administer the Plan.
The Compensation Committee’s decision in any matter involving the interpretation and
application of this Plan shall be final and binding on all parties. Neither the
Compensation Committee nor any member thereof nor the Company shall be liable for any
action or determination made in good faith with respect to the Plan or the rights of
any person under the Plan.
	 
	 	(b)	 	Authority of Members. The members of the Compensation Committee may
authorize one or more of their number to execute or deliver any instrument, make any
payment or perform any other act that the Plan authorizes or requires the Compensation
Committee to do, including, without limitation, the retention of counsel and other
agents as it may require in carrying out the provisions of the Plan.
	 
	 	(c)	 	Authority to Delegate. Any responsibility or authority assigned to the
Compensation Committee under the Plan may be delegated to any other committee,
consisting of employees or other persons, or such other person or persons, by name or,
in the case of a delegation to an employee of the Company, by title or position with
the Company, consistent with the by-laws or other procedures of the Compensation
Committee; provided

- 7 -

 

	 	 	 	that such delegation is revocable by the Compensation Committee at
any time, in its discretion.
	 
	 	(d)	 	Records and Expenses. The Compensation Committee or its designees
shall keep such records as may be necessary for the administration of the Plan and
shall furnish such periodic information to Participants as may be necessary or
desirable, in the sole discretion of the Compensation
Committee. All expenses of administering the Plan shall be paid by the Company and
shall not affect a Participant’s right to, or the amount of, benefits.

	 	2.2	 	Claims Procedures

	 	(a)	 	General. All claims for benefits under the Plan shall be submitted to,
and within 90 days thereafter decided by, in writing, the Compensation Committee. If
the Compensation Committee determines that an extension of time for processing the
claim is required, the Compensation Committee may extend the date by which a decision
is required to 180 days after the claim is submitted provided that the Compensation
Committee provides written notice of the extension to the claimant prior to the
termination of the initial 90-day period, including the special circumstances requiring
an extension of time and the date by which the Compensation Committee expects to render
a decision.
	 
	 	(b)	 	Information Provided Upon Denial of a Claim. Written notice of the
decision on each claim shall be furnished reasonably promptly to the claimant. If the
claim is wholly or partially denied, such written notice shall set forth (i) the
specific reason or reasons for the denial, (ii) reference to the specific Plan
provisions 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) a description of the Plan’s
review procedures and the time limits applicable to such procedures, including a
statement of the claimant’s right to bring a civil action under Section 502(a) of
ERISA, as amended, following the denial of a claim on review.
	 
	 	(c)	 	Appeals Procedure. A claimant may request a review by the Compensation
Committee of a decision denying a claim in writing within 60 days following receipt of
the denial. All such reviews shall be decided in writing by the Compensation Committee
within 60 days after receipt of the request for review. If the Compensation Committee
determines that an extension of time for processing the review is required, the
Compensation Committee may extend the date by which a decision is required to 120 days
after the request for review is submitted provided that the Compensation Committee
provides written notice of the extension to the claimant prior to the termination of
the initial 60-day period, including

- 8 -

 

	 	 	 	the special circumstances requiring an extension
of time and the date by which the Compensation Committee expects to render a decision.
	 
	 	(d)	 	In connection with a review of a denied claim for benefits, a claimant shall
(i) have the opportunity to submit written comments, documents, records, and other
information relating to the claim for benefits, and (ii) be provided, 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. The review of a denied claim shall take into account
all comments, documents, records, and other information submitted by the claimant
related to the claim, without regard to whether such information was submitted or
considered in the initial review of the claim. If a claim is denied upon review,
the written notice of the denial shall specify (i) the specific reason or reasons
for the denial, (ii) reference to the specific Plan provisions upon which the denial
is based, and (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.
	 
	 	(e)	 	Authorized Representative. The claimant may have an authorized
representative act on the claimant’s behalf in pursuing a benefit claim or appeal of
the denial of the benefit. In order for a representative to be recognized as acting on
behalf of the claimant, the claimant must provide in writing to the Compensation
Committee the name, address and phone number of his authorized representative and a
statement that the representative is authorized to act in his behalf concerning his
claim for benefit, and if applicable, an appeal of the denial of the benefit.

ARTICLE III

PARTICIPATION, INITIAL ELECTIONS AND ALLOCATIONS

	 	3.1	 	Participation. The Participants in the Plan shall consist of those employees set
forth in Appendix A, and such other employees of the Company and its subsidiaries who are
selected by the Compensation Committee for participation. After the Compensation Committee
approves participation for an individual, the Company or the Compensation Committee shall
provide the individual with a notice of participation in the Plan and a description of the
Plan.
	 
	 	3.2	 	Initial Elections.

	 	(a)	 	General Rule. Within thirty (30) days of commencing participation in
the Plan, or at such later date and under such conditions as may be permitted under
Section 409A of the Code and any guidance of the Internal

- 9 -

 

	 	 	 	Revenue Service thereunder,
the Participant may make a written election, to the extent permitted by the
Compensation Committee, to (i) receive his Retirement Benefit in one of the optional
forms of benefit described in Section 5.2(b) instead of a Lump Sum distribution as set
forth in Section 5.2(a), or (ii) designate a commencement date for payment of his Retirement Benefit
that is later than the date specified in Section 5.1(a).
	 
	 	(b)	 	New Payment Elections by December 31, 2006. Notwithstanding the
provisions of Section 3.2(a), a Participant may file the election described in Section
3.2(a) at any time on or before December 31, 2006 and such election shall be
immediately effective; provided, that no election made under this Section 3.2(b) on or
after August 1, 2006 shall (i) affect any payment that would otherwise be made during
the 2006 calendar year, or (ii) cause any payment that would otherwise be payable later
than the 2006 calendar year to be made during the 2006 calendar year.

	 	3.3	 	Subsequent Elections. A Participant may make a written election, to the extent
permitted by the Compensation Committee, to (a) change the form of payment provided under
Section 5.2(a) or as previously-elected by the Participant, or (b) change the commencement
date provided under Section 5.1(a) or as previously-elected by the Participant to a later
commencement date; provided, however, that, except as may be otherwise
permitted by the Compensation Committee consistent with the requirements of Section 409A of
the Code and any guidance of the Internal Revenue Service thereunder, any such election by a
Participant shall be subject to the following requirements: (i) the election must not take
effect until at least 12 months after the date on which the election is made; (ii) the
commencement date elected must be at least 5 years later than the commencement date otherwise
applicable under Section 5.1(a); and (iii) the election may not be made less than 12 months
prior to the commencement date otherwise applicable under Section 5.1(a).
	 
	 	3.4	 	Company Contributions and Allocation. The Company shall credit to each Participant’s
Account the amount described in Appendix B. Allocations under this Section 3.4 shall be
credited to the respective Accounts of the Participants for whom they are made on at least a
monthly basis. Participants who have a Separation from Service, other than a voluntary
termination by the Participant without Good Reason, at any time during a calendar month shall
be credited with a full monthly allocation of the Participant’s contribution to such
Participant’s Account for the month in which the Participant has a Separation from Service.
	 
	 	3.5	 	Earnings. In accordance with Article II, the Compensation Committee shall select the
measures to be used to determine the applicable earnings with respect to the Participants’
Accounts and such earnings shall be credited on at least an annual basis. Participants who
have a Separation from Service, other than a voluntary termination by the Participant without
Good Reason, at any time during a calendar month shall be credited with a pro rata allocation
of earnings to such

- 10 -

 

	 	 	 	Participant’s Account through the end of the month in which the Participant has a Separation
from Service.

ARTICLE IV

RETIREMENT AND DEATH BENEFITS

	 	4.1	 	Separation From Service
	 
	 	 	 	In the event of a Participant’s Separation from Service on or after completing five (5)
Years of Credited Service and attaining age 55, he shall receive a Retirement Benefit,
payable at the time and in the form set forth in Article V, equal to the balance credited to
his Account as of the date of distribution of such benefit.
	 
	 	4.2	 	Vesting on Certain Separations From Service
	 
	 	 	 	Notwithstanding the provisions of Section 4.1, a Participant who, prior to completing five
(5) Years of Credited Service or prior to attaining age 55, has a Separation from Service
for any reason, including death or Disability, other than a termination by the Company with
Cause or a termination by the Participant without Good Reason, shall be eligible to receive
a Retirement Benefit, payable at the time and in the form set forth in Article V, equal to
the balance credited to his Account as of the date of distribution of such benefit.
	 
	 	4.3	 	Death Benefit
	 
	 	 	 	In lieu of a benefit payable under Section 4.1 or 4.2, a Participant’s Beneficiary shall
receive a death benefit in the event that the Participant dies after becoming eligible, or
the Participant’s death results in the Participant becoming eligible, to receive a
Retirement Benefit in accordance with either Section 4.1 or Section 4.2, but before payment
of such Participant’s Retirement Benefit has actually been made or commenced. Such death
benefit shall be payable at the time and in the form set forth in Article V, and shall be
equal to the balance credited to the Participant’s Account as of the date of distribution of
such benefit.
	 
	 	4.4	 	Separation from Service Prior to Vesting or For Cause
	 
	 	 	 	Notwithstanding any other provision of this Plan to the contrary, upon (i) a Participant’s
Separation from Service prior to or which does not result in the Participant being eligible
to receive a Retirement Benefit under either Section 4.1 or Section 4.2, or (ii) the
Participant’s Separation from Service for Cause, the Participant shall forfeit any right or
interest in any Retirement Benefit under Sections 4.1 or 4.2, and no benefit shall be
payable to or on behalf of such Participant under this Plan.

- 11 -

 

	 	4.5	 	Effect of Change in Control
	 
	 	 	 	Notwithstanding the foregoing, upon the occurrence of a Change in Control, (a) a Participant
who has an Account balance under the Plan as of the date of such Change in Control shall be
deemed vested in his full Account balance regardless of his Years of Credited Service and
age at the time of any Separation from Service following such Change in Control, and (b)
notwithstanding any provision of this Plan to the contrary or any election by the
Participant pursuant to Article III, the Participant’s Retirement Benefit shall be paid in a
Lump Sum distribution as soon as practicable after the date of the Participant’s Separation
from Service following such Change in Control or, if the Participant is a Specified Employee
at the time of his Separation from Service, the first day of the seventh calendar month
following the month that includes the date of his Separation from Service.
	 
	 	4.6	 	Compliance with Certain Obligations. Notwithstanding any other provision of this
Plan to the contrary, each Participant’s right to Retirement Benefits shall be subject to such
Participant’s compliance with his or her material obligations under any employment or similar
agreement between the Parent or Company and the Participant or under any written code or
policy of the Parent or Company as in effect from time to time. If at any time during a
Participant’s employment with the Parent or Company or within two (2) years following
termination of such employment the Compensation Committee determines in good faith that a
Participant has breached any such material obligations, such Participant shall forfeit all
rights to Retirement Benefits under the Plan; provided, however, that if such
determination is made by the Compensation Committee after payment of such Participant’s
Retirement Benefit has been made or commenced, the Company shall determine in good faith the
amount of all such payments previously received by the Participant pursuant to the Plan plus
interest on such payments at a rate of 6% compounded annually (the “Repayment Amount”), and
(i) the Company shall be entitled to set-off the Repayment Amount against any amount owed to
the Participant by the Company and (ii) the Participant shall be obligated to pay the balance
of the Repayment Amount to the Company within thirty (30) days of the Participant’s receipt of
written notice from the Company of such Repayment Amount.

ARTICLE V

TIMING AND FORM OF RETIREMENT BENEFIT

	 	5.1	 	Timing

	 	(a)	 	General Rule. Unless the Participant has elected, in accordance with
Article III, a later commencement date, the Participant’s Retirement Benefit under
Section 4.1 or Section 4.2, as the case may be, shall be paid or commenced as soon as
practicable after the first day of the calendar month following the month that includes
the date of his Separation from Service; provided, however, that if the Participant
is a

- 12 -

 

	 	 	 	Specified Employee as of the date of his Separation from Service, and such
Separation from Service is for a reason other than death or Disability, the
applicable Retirement Benefit shall be paid as soon as practicable after the first
day of the seventh calendar month following the month that includes the
Participant’s Separation from Service.
	 
	 	(b)	 	Death Benefit. A benefit paid under Section 4.3 as a result of the
death of a Participant shall commence as soon as practicable following the
Participant’s death.
	 
	 	(c)	 	Certain Accelerated Payments. Notwithstanding the foregoing, the
provisions of subsection (a) shall not be applicable to a payment that becomes due
under the following circumstances:

	 	(i)	 	QDROs
	 
	 	 	 	Notwithstanding the foregoing, the time or schedule of a payment of a vested
Retirement Benefit to an individual other than the Participant may be
accelerated as may be necessary to fulfill the requirements of a domestic
relations order (as defined in Code Section 414(p)(1)(B)).
	 
	 	(ii)	 	Payment of Employment Taxes
	 
	 	 	 	Notwithstanding the foregoing, the time or schedule of payment to a
Participant may be accelerated to pay the Federal Insurance Contributions
Act (FICA) tax imposed under Code Sections 3101, 3121(a), and 3121(v)(2), as
applicable, on compensation deferred under this Plan (the “FICA Amount”).
Additionally, the time or schedule of a payment may be accelerated to pay
the income tax at source on wages imposed under Code Section 3401 or the
corresponding withholding provisions of applicable state, local, or foreign
tax laws as a result of the payment of the FICA Amount, and to pay the
additional income tax at source on wages attributable to the pyramiding Code
Section 3401 wages and taxes. The total payment under this Section
5.1(c)(iii) shall not exceed the aggregate of the FICA Amount and the income
tax withholding related to such FICA Amount.
	 
	 	(iii)	 	Payments Upon Income Inclusion Under Section 409A
	 
	 	 	 	Notwithstanding the foregoing, the time or schedule of payment to a
Participant may be accelerated in the Company’s discretion if at any time
the Plan fails to meet the requirements of Code Section 409A and regulations
and other guidance promulgated thereunder; provided,
however, that any such payment shall not exceed the amount required
to be included in income as a result of the failure

- 13 -

 

	 	 	 	to comply with the requirements of Code Section 409A and the regulations and
other guidance.
	 
	 	(iv)	 	Other Events or Conditions
	 
	 	 	 	Upon such other events and conditions as may be prescribed in generally
applicable guidance published in the Internal Revenue Bulletin.

	 	(d)	 	Certain Delayed Payments

	 	(i)	 	Any payment or distribution that becomes due or payable under
the terms of the Plan shall be delayed in the following circumstances:

	 	(1)	 	the Compensation Committee reasonably
anticipates that the Parent’s or Company’s tax deduction with respect
to such payment would be limited or eliminated by application of
Section 162(m) of the Code;
	 
	 	(2)	 	the Compensation Committee reasonably
anticipates that the making of the payment will violate a term of a
loan agreement or other similar contract to which the Parent or Company
is a party and such violation will cause material harm to the Parent or
Company (provided, that the Parent or Company entered into such loan
agreement (including such covenant) or similar contract for legitimate
business reasons and not to avoid the restrictions or requirements of
Section 409A of the Code);
	 
	 	(3)	 	the Compensation Committee reasonably
anticipates that the making of the payment will violate Federal
securities laws or other applicable law (provided, that the making of a
payment that causes inclusion in gross income or the application of any
penalty or other provision of the Code is not treated as a violation of
applicable law for purposes of this subsection); or
	 
	 	(4)	 	upon such other events and conditions as may be
prescribed in generally applicable guidance published in the Internal
Revenue Bulletin.

	 	(ii)	 	Any payment or distribution that is delayed pursuant to this
Section 5.1(d) must be paid at the earliest date upon which the Compensation
Committee reasonably determines:

	 	(1)	 	with respect to any payment delayed under
subsection (d)(i)(1), that the deduction of the payment will not be
limited or eliminated by application of Section 162(m) of the Code or

- 14 -

 

	 	 	 	the calendar year in which the Participant Separates from Service;
	 
	 	(2)	 	with respect to any payment delayed under
subsection (d)(i)(2), that the payment will not cause a violation of
the loan agreement or similar contract, or such violation will not
cause material harm to the Parent or Company; and
	 
	 	(3)	 	with respect to any payment delayed under
subsection (d)(i)(3), that the payment will not cause a violation of
Federal securities laws or other applicable law.

	 	5.2	 	Form

	 	(a)	 	Normal Form of Benefit. Unless the Participant has elected, in
accordance with Article III, an optional form of distribution provided under Section
5.2(b), or the Lump Sum form of distribution automatically applies as set forth in
Section 4.5, and subject to the provisions of Section 5.2(c), the applicable Retirement
Benefit shall be paid as a Lump Sum.
	 
	 	(b)	 	Optional Forms of Benefit. In accordance with the election
requirements of Article III, a Participant may file a written election to receive his
Retirement Benefit in one of the following optional forms in lieu of the Lump Sum set
forth in Section 5.2(a):

	 	(i)	 	a Single Life Annuity;
	 
	 	(ii)	 	a One Hundred Percent Joint and Survivor Annuity;
	 
	 	(iii)	 	a Fifty Percent Joint and Survivor Annuity; or
	 
	 	(iv)	 	a Ten-Year Certain Annuity.

	 	(c)	 	Death Benefit. Notwithstanding any provision of this Section 5.2 to
the contrary, the death benefit described in Section 4.3 shall be paid in a Lump Sum
distribution to the Participant’s Beneficiary.

	 	5.3	 	Effect of Separation From Service and Reemployment

	 	(a)	 	If the Participant incurs a Separation from Service for any reason, he shall
cease to accrue any benefits under this Plan unless and until the Participant is
subsequently reemployed.
	 
	 	(b)	 	Notwithstanding anything in the Plan to the contrary, if the Participant is
subsequently reemployed by the Parent or Company after commencing any Annuity Form of
Benefit, such Annuity Form of Benefit shall not be suspended during such reemployment.
In addition, if the Participant is subsequently reemployed by the Parent or Company
after receiving a

- 15 -

 

	 	 	 	lump sum distribution of his entire Retirement Benefit, the Participant will not be
entitled to any additional benefit accrual or payment relating to any period of
employment prior to his reemployment (except that such prior employment shall be
included in calculating the Participant’s Years of Credited Service).

ARTICLE VI

FUNDING

The Plan is an unfunded arrangement. No portion of any funds of the Parent, the Company or any of
its affiliates shall be required to be set apart for a Participant or Beneficiary. The rights of a
Participant or Beneficiary to the payment of the Retirement Benefit shall be limited to those of a
general, unsecured creditor of the Company who has a claim equal to the value of the Participant’s
Retirement Benefit. Retirement Benefits shall be payable from the general assets of the Company,
and/or from any grantor trust, or other funding vehicle that the Company, in its discretion, may
establish consistent with the tax deferral objective of this Plan; provided,
however, that no Participant or Beneficiary shall at any time have any right to all or any
portion of the assets of or associated with any such trust, insurance contract or other funding
vehicle.

ARTICLE VII

AMENDMENT AND TERMINATION

	 	7.1	 	Amendment
	 
	 	 	 	The Compensation Committee shall have the right to amend the Plan for any reason, at any
time and from time to time. No amendment of the Plan shall cause, without the Participant’s
written consent, a reduction in the accrued Retirement Benefits, whether vested or unvested,
or any other benefits to which the Participant or his Beneficiary would have been entitled
as of the effective date of such amendment under the terms of this Plan absent such
amendment. Furthermore, no amendment may result in an acceleration of benefit payment
(except as may be permitted by section 409A of the Code). Any action by the Compensation
Committee to amend the Plan shall be undertaken by a resolution duly adopted at a meeting of
the Compensation Committee, or by written consent of the Compensation Committee, in lieu of
a meeting, as the case may be.
	 
	 	7.2	 	Termination
	 
	 	 	 	The Company may, by action of the Board, terminate the Plan subject to the following
provisions:

- 16 -

 

	 	(a)	 	The Plan shall not be terminated within two years following the occurrence of a
Change in Control.
	 
	 	(b)	 	Upon termination of the Plan, Participants shall cease to accrue additional
Retirement Benefits hereunder, but accrued Retirement Benefits, whether vested or
unvested, as of the date of termination of the Plan shall be held, administered and
distributed in accordance with the terms and conditions of the Plan as in effect on the
date of Plan termination, except that:

	 	(i)	 	Retirement Benefits under the Plan may be distributed prior to
the time required under Article V if all nonqualified deferred compensation
arrangements sponsored by the Company and any company required to be aggregated
with the Company under Section 414(b) and (c) of the Code that are treated,
together with the Plan, as one arrangement under Section 409A of the Code, are
terminated, subject to the following requirements: (A) no payments other than
payments that would be payable under the terms of the Plan and such other
arrangements if the termination had not occurred are made within 12 months of
the termination of the Plan and such other arrangements, (B) all payments under
the Plan and such other arrangements are made within 24 months of the date of
such termination, and (C) neither the Company nor any company required to be
aggregated with the Company under Section 414(b) or (c) of the Code adopts a
new arrangement that would, with the Plan or any such other terminated
arrangement, be treated as a single arrangement under Section 409A of the Code,
at any time within five years following the date of termination of the Plan and
such other arrangements.
	 
	 	(ii)	 	The Plan may be terminated at any time within 12 months of a
dissolution of the Company taxed under Section 331 of the Code, or with the
approval of a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1)(A), in
which case the amounts deferred under the Plan shall be distributed and
included in Participants’ gross incomes in the latest of (A) the calendar year
in which the termination occurs, or (B) the first calendar year in which the
payment is administratively practicable.

ARTICLE VIII

GENERAL PROVISIONS

	 	8.1	 	Payments to Minors and Incompetents
	 
	 	 	 	If the Participant or any Beneficiary entitled to receive any benefits hereunder is a minor
or is deemed by the Compensation Committee or is adjudged to be legally

- 17 -

 

	 	 	 	incapable of giving valid receipt and discharge for such benefits, they will be paid to such
person or institution as the Compensation Committee may designate or to a duly appointed
guardian. Such payment shall, to the extent made, be deemed a complete discharge of any such
payment under the Plan.
	 
	 	8.2	 	No Contract
	 
	 	 	 	This Plan shall not be deemed a contract of employment with the Participant, and no
provision hereof shall affect the right of the Company to terminate the Participant’s
employment.
	 
	 	8.3	 	Non-Alienation of Benefits
	 
	 	 	 	No amount payable to, or held under the Plan for the account of, the Participant or any
Beneficiary shall be subject, in any manner, to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge, and any attempt to so anticipate, alienate, sell,
transfer, assign, pledge, encumber or charge the same shall be void. No amount payable to,
or held under the Plan for the account of, the Participant shall be subject to any legal
process of levy or attachment.
	 
	 	8.4	 	Income Tax Withholding
	 
	 	 	 	The Company may withhold from any payments hereunder such amount as it may be required to
withhold under applicable federal, state or other income tax law, and transmit such withheld
amounts to the appropriate taxing authority. In lieu thereof, the Company shall have the
right, to the extent permitted by law, to withhold the amount of such taxes from any other
sums due from the Company to the Participant upon such terms and conditions as the
Compensation Committee may prescribe.
	 
	 	8.5	 	Governing Law
	 
	 	 	 	The provisions of the Plan shall be interpreted, construed and administered under the laws
of the State of Delaware applicable to contracts entered into and performed in such state,
without regard to the choice of law provisions thereof and to the extent that ERISA and
other federal laws do not apply.
	 
	 	8.6	 	Captions
	 
	 	 	 	The captions contained in the Plan are inserted only as a matter of convenience and for
reference and in no way define, limit, enlarge or describe the scope or intent of the Plan
or in any way affect the construction of any provision of the Plan.

- 18 -

 

\

	 	8.7	 	Severability
	 
	 	 	 	If any provision of the Plan is held invalid or unenforceable, its invalidity or
unenforceability will not affect any other provision of the Plan, and the Plan will be
construed and enforced as if such provision had not been included.
	 
	 	8.8	 	Notices
	 
	 	 	 	The Participant shall be responsible for furnishing the Compensation Committee with the
current and proper address for the mailing of notices and delivery of agreements and
payments. Any notice required or permitted to be given shall be deemed given if directed to
the person to whom addressed at such address and mailed by regular United States first class
mail, postage prepaid. If any item mailed to such address is returned as undeliverable to
the addressee, mailing shall be suspended until the Participant furnishes the proper
address.
	 
	 	8.9	 	Binding Nature; Assignability
	 
	 	 	 	This Plan shall be binding upon the successors and assigns of the Company. No rights or
obligations of the Company under this Plan may be assigned or transferred by the Company
without the Participant’s prior written consent, except that such rights or obligations may
be assigned or transferred pursuant to a merger or consolidation in which the Company is not
the continuing entity, or a sale, liquidation or other disposition of all or substantially
all of the assets of the Company, provided that the assignee or transferee is the successor
to all or substantially all of the assets of the Company and assumes the liabilities,
obligations and duties of the Company under this Plan, either contractually or as a matter
of law.
	 
	 	8.10	 	Gender, Singular and Plural
	 
	 	 	 	All pronouns and variations thereof shall be deemed to refer to the masculine, feminine, or
neuter, as the identity of the person(s) requires. As the context may require, the singular
may be read as the plural and the plural as the singular.
	 
	 	8.11	 	409A Compliance
	 
	 	 	 	The Plan is intended to comply with the requirements of Section 409A of the Internal Revenue
Code of 1986, as amended. Consistent with that intent, the Plan shall be interpreted in a
manner consistent with Section 409A and in the event that any provision that is necessary
for the Plan to comply with Section 409A is determined by the Compensation Committee, in its
sole discretion, to have been omitted, such omitted provision shall be deemed included
herein and is hereby incorporated as part of the Plan.

- 19 -

 

IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly authorized
officer as of the 1st day of August, 2006.

	 	 	 	 	 
	 	Wheeling-Pittsburgh Steel Corporation

 	 
	 	By:  	/s/ James G. Bradley
 	 
	 
	 	Title: Chairman and Chief Executive Officer 	 
	 	 	 	 

- 20 -

 

	 	 	 	 	 

APPENDIX A

SCHEDULE OF INITIAL PARTICIPANTS

 

 

APPENDIX B

CONTRIBUTION FORMULA AND EXAMPLE

The annual SERP Contribution has three components

	 	1)	 	401(k) Plan Match Component. For each Participant who is eligible to
participate in the Company’s 401(k) Plan, the 401(k) plan match formula for the applicable
year will be applied to all Compensation of such Participant in excess of the compensation
taken into account under the 401(k) Plan. For purposes of this 401(k) plan match
component, it will be assumed that the Participant is making the maximum deferral under the
401(k) plan.
	 
	 	2)	 	SEPP Plan Component. For each Participant who is eligible to participate in
the Salaried Employees’ Pension Plan of Wheeling-Pittsburgh Steel Corporation (“SEPP”), the
SEPP contribution formula will be applied to all Compensation of such Participant in excess
of the compensation taken into account for purposes of determining the employer
contribution under the SEPP (“SEPP Excess Compensation”). This results in an age-based
SERP Contribution of:

	 	 	 	 	 	 
	  Age	 	 	% of SEPP Excess Compensation
	<35
	 	 	 	2.75%	
	35-39
	 	 	 	4.00%	 
	40-44
	 	 	 	5.50%	 
	45-49
	 	 	 	7.00%	 
	50-54
	 	 	 	8.50%	 
	55-59
	 	 	 	10.50%	 
	60+
	 	 	 	12.75%	 

	 	3)	 	Age-Based Supplemental Component. The SERP will provide a supplemental
age-based Contribution applied to all Compensation of:

	 	 	 	 	 
	    Age	 	% of all Compensation
	<45
	 	 	0.00%	 
	45-49
	 	 	2.00%	 
	50-51
	 	 	3.50%	 
	52-54
	 	 	5.00%	 
	55-57
	 	 	10.00%	 
	58-59
	 	 	12.50%	 
	60+
	 	 	15.00%	 

 

 

Example of SERP Contribution Calculation

	 	 	 	 	 	 	 	 	 
	Name	 	Sample 1	 	 	Sample 2	 
	Age
	 	 	45	 	 	 	57	 
	Service
	 	 	3	 	 	 	10	 
	Base Compensation
	 	$	140,000	 	 	$	250,000	 
	Bonus Compensation
	 	$	65,000	 	 	$	150,000	 
	 	 	 	 	 	 	 	 	 
	401(k) Plan Match Component

(3%* of Base above $220,000** plus Bonus)
	 	$	1,950	 	 	$	5,400	 
	 	 	 	 	 	 	 	 	 
	SEPP Plan Component

(Age-based % of Base above $220,000** plus Bonus)
	 	$	4,550	 	 	$	18,900	 
	 	 	 	 	 	 	 	 	 
	Age-Based Supplemental Component

(Age-based % of all Base and Bonus Compensation)
	 	$	4,100	 	 	$	40,000	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Total SERP Contribution
	 	$	10,600	 	 	$	64,300	 

 

			
	*	 	The current maximum Company match under the 401(k) Plan Match is 3% of the participant’s Base
Compensation up to $220,000.
	 
	**	 	$220,000 amount is the current compensation limit under Section 401(a)(17) of the Code, which is
indexed by the IRS each year for qualified retirement plans.

For Sample 1

401(k) Plan Match = 3% x 65,000 = $1,950

SEPP Plan = 7% x 65,000 = $4,550

Age-Based Supplement = 2% x 205,000 = $4,100

For Sample 2

401(k) Plan Match = 3% x (250,000 – 220000 + 150,000) = $5,400

SEPP Plan = 10.50% x (250,000 – 220,000 + 150,000) = $18,900

Age-Based Supplement = 10% x 400,000 = $40,000

- 2 -EX-10.1

 

TRANSFER AGREEMENT

by and between

METLIFE INSURANCE COMPANY OF CONNECTICUT

and

METLIFE INVESTORS GROUP, INC.

dated as of October 11, 2006

 

 

TRANSFER AGREEMENT

This Transfer Agreement (hereinafter referred to as this “Agreement”) dated as of October
11, 2006 is entered into by and between MetLife Insurance Company of Connecticut (hereinafter
referred to as “MICC”), a Connecticut stock life insurance company, and MetLife Investors
Group, Inc. (hereinafter referred to as “MIG”), a Delaware corporation. Either MICC or MIG
may hereinafter be referred to as a “Party.” MICC and MIG may hereinafter collectively be
referred to as the “Parties.”

WITNESSETH:

WHEREAS, MetLife, Inc. owns all of the outstanding capital stock of MIG and MICC; and

WHEREAS, MIG owns all of the outstanding capital stock of MetLife Investors USA Insurance Company,
a Delaware stock life insurance company (hereinafter referred to as the “Company”); and

WHEREAS, MIG desires to transfer all of its right, title, and interest in all of the outstanding
capital stock of the Company to MICC in exchange for shares of capital stock of MICC of approximate
equal value and MICC desires to issue such shares to MIG in exchange for all of the right, title,
and interest in all of the outstanding capital stock of the Company (hereinafter referred to as the
“Transactions”; and

WHEREAS, the Parties intended that the Transactions occur on October 1, 2006, and desire that the
Transactions shall have economic effect as if they occurred on October 1, 2006; and

WHEREAS, MetLife, Inc. is the common parent of, and MIG is a member of, a single group of life
insurance companies and other companies filing one consolidated Federal tax return; and

WHEREAS, the Boards of Directors of MICC and MIG have each authorized the Transactions described
above.

NOW, THEREFORE, the Parties agree as follows:

	1.	 	Transfer of Shares of the Company in Exchange for Shares of MICC. MIG hereby
transfers, assigns, conveys and delivers to MICC, with effect from October 1, 2006 all of the
issued and outstanding shares of capital stock of the Company, consisting of 11,000 shares of
common stock, par value $200 per share, and 200,000 shares of 6% non-cumulative preferred
stock, par value $1 per share (hereinafter referred to as the “Company Shares”), free
and clear of all liens, charges, security interests, mortgages, pledges or similar
restrictions, in exchange for 4,595,317

 

 

	 	 	shares of MICC’s common stock, par value $2.50 per share approximately equal in value to
the Company Shares being transferred in exchange therefore (hereinafter referred to as the
“MICC Shares”). The Parties agree that the Transactions shall have economic effect
as if the Transactions occurred on October 1, 2006.

	2.	 	Closing; Deliveries. MIG hereby delivers to MICC certificates representing the
Company Shares, duly endorsed to MICC or accompanied by duly executed and witnessed stock
powers, and MICC hereby issues and delivers to MIG certificates representing the MICC Shares.

	3.	 	Representations and Warranties. Each Party represents and warrants to the other
Party that: (a) it is a corporation duly organized, validly existing and in good standing
under the laws of its state of incorporation; (b) it has the corporate power and authority,
and has taken all necessary corporate action, to execute, deliver and perform this Agreement;
(c) this Agreement is a legal, valid and binding obligation upon such Party and is
enforceable against such Party in accordance with its terms (assuming valid authorization,
execution and delivery of this Agreement by such other Party); and (d) execution of this
Agreement and consummation of the transactions contemplated hereby will not conflict with, or
cause such Party to be in violation of, (i) its charter and by-laws, (ii) any other
agreement to which it is a party (except for any such violations which, individually or in the
aggregate, would not have a material adverse effect upon the performance of such Party’s
obligations under this Agreement), or (iii) any foreign, federal, state or local law,
statute, regulation, rule, code, ordinance, judgment, decree or order to which it is subject.
	 
	 	 	Furthermore, MIG represents and warrants to MICC that: (a) the Company is a corporation
duly organized, validly existing and in good standing under the laws of Delaware; (b)
execution of this Agreement and consummation of the transactions contemplated hereby will
not conflict with, or cause the Company to be in violation of, (i) the Company’s
certificate of incorporation and by-laws, (ii) any other agreement to which the Company is
a party, or (iii) any foreign, federal, state or local law, statute, regulation, rule,
code, ordinance, judgment, decree or order to which it is subject; (c) the authorized
capital stock of the Company consists of 15,000 shares of Common Stock and 200,000 shares
of Preferred Stock; (d) the issued and outstanding capital stock of the Company consists
of 11,000 shares of Common Stock and 200,000 shares of Preferred Stock; (e) except for
this Agreement, no agreement, arrangement or commitment relating to the capital stock of
the Company exists; and (f) no securities convertible into capital stock of the Company
exist. MIG represents and warrants that it has full right, title, and interest to the
Company Shares to be transferred pursuant hereto, and that the Company Shares are duly
authorized, validly issued, fully paid, non-assessable, free of any preemption rights, and
free and clear of, and not

 

 

	 	 	subject to, any form of hypothecation, pledge, lien, or other restriction on transfer under
any foreign, federal, state or local law, statute, regulation, rule, code, ordinance,
judgment, decree, order or agreement to which MIG or the Company is subject, and the
consummation of the transactions contemplated hereby shall not result in any such
hypothecation, pledge, lien, or other restriction on transfer upon the Company Shares.
	 
	 	 	Furthermore, MICC represents and warrants to MIG that: (a) the authorized capital stock of
MICC consists of 40,000,000 shares of Common Stock; (b) the issued and outstanding capital
stock of MICC consists of 30,000,000 shares of Common Stock; (c) except for this
Agreement, no agreement, arrangement or commitment relating to the capital stock of MICC
exists; and (d) no securities convertible into capital stock of MICC exist. MICC
represents and warrants that it has full right, title, and interest to the MICC Shares to
be transferred pursuant hereto, when issued, and that the MICC Shares will be duly
authorized, validly issued, fully paid, non-assessable, free of any preemption rights, and
free and clear of, and not subject to, any form of hypothecation, pledge, lien, or other
restriction on transfer under any foreign, federal, state or local law, statute,
regulation, rule, code, ordinance, judgment, decree, order or agreement to which MICC is
subject, and the consummation of the transactions contemplated hereby shall not result in
any such hypothecation, pledge, lien, or other restriction on transfer upon the MICC
Shares.

	4.	 	Regulatory Approval. Other than the approvals of the Connecticut and Delaware
Departments of Insurance, which have been obtained, the Parties understand and agree that the
transfer of the Company Shares in exchange for the issuance of the MICC Shares pursuant hereto
requires no prior approval of, or filing or registration with, any foreign, federal, state or
local regulatory authorities.

	5.	 	Modification and Amendment. This Agreement cannot be changed, amended, or terminated
by oral agreement, and no provision or requirement hereof may be orally waived. Any change,
amendment, termination, or waiver hereof shall only be made by an agreement in writing signed
by the Parties and shall require the prior approval of the Connecticut Insurance Department.

	6.	 	Binding Nature; Assignment. This Agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors, but neither this Agreement nor any of
the rights, interests or obligations hereunder shall be assigned by either Party (by operation
of law or otherwise) without prior written consent of the other Party, which shall not be
unreasonably withheld, and prior approval of the assignment by the Connecticut Insurance
Department.

 

 

	7.	 	Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute one and
the same instrument.

	8.	 	Waiver. Any term or condition of this Agreement may be waived at any time by the
Party that is entitled to the benefit thereof, but no such waiver shall be effective unless
set forth in a written instrument duly executed by or on behalf of the Party waiving such term
or condition.

	9.	 	Expenses. Each Party shall bear and pay all costs and expenses which it incurs, or
which may be incurred on its behalf, in connection with the preparation of this Agreement and
the consummation of the transactions contemplated by this Agreement.

	10.	 	Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Connecticut, without regard to conflicts of laws principles.

	11.	 	Severability. If any term or condition of this Agreement is invalid, illegal or
incapable of being enforced by any rule of law or public policy, all other terms and
conditions of this Agreement nevertheless shall remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any Party.

	12.	 	Cumulative Remedies. The rights, remedies, powers, and privileges provided in this
Agreement are cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law or otherwise.

	13.	 	Further Assurances; Post-Closing Cooperation. In connection with the consummation of
the transactions contemplated by this Agreement, at any time or from time to time after the
consummation of the transactions contemplated by this Agreement, the Parties shall execute and
deliver such other documents and instruments, and take such other actions, as may be required
to consummate the transactions contemplated by this Agreement.

	14.	 	No Third Party Beneficiaries. The terms and provisions of this Agreement are
intended solely for the benefit of each Party and their respective successors or permitted
assigns and it is not the intention of the Parties to confer third-party beneficiary rights,
and this Agreement does not confer any such rights, upon any other person.

	15.	 	Taxes. The Parties agree to treat MIG’s transfer of Company Shares to MICC in
exchange for MICC shares approximately equal in value to the Company Shares as a tax-free
transaction under Section 351 of the Internal Revenue Code, inasmuch as MIG will control more
than 80% of the stock of MICC immediately after the transfer, after taking into account

 

 

	 	 	shares of MICC owned by MetLife, Inc. that are attributed to MIG under Section 1.1502-34 of
the consolidated return regulations. MIG represents that no liabilities of MIG will be
transferred to MICC in connection with the Company Shares. MICC represents that the MICC
shares to be issued to MIG are shares of MICC voting common stock, which is the only class
of MICC shares outstanding.

 

 

IN WITNESS WHEREOF, the Parties have caused this Transfer Agreement to be executed by their duly
authorized officers as of the day and year first above written.

MetLife Insurance Company of Connecticut

	 	 	 	 	 	 	 
	By:

	 	/s/ Anthony J. Williamson
 

	 	 	 	Date: October 11, 2006 
	Name: Anthony J. Williamson	 	 	 	 
	Title: Senior Vice President and Treasurer	 	 	 	 

MetLife Investors Group, Inc.

	 	 	 	 	 	 	 
	By:

	 	/s/ Richard C. Pearson
 

	 	 	 	Date: October 11, 2006 
	Name: Richard C. Pearson	 	 	 	 
	Title: Executive Vice President

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