Document:

EX-10.2

 

Exhibit 10.2

FORM OF AGREEMENT UNDER NACCO INDUSTRIES, INC.

EXECUTIVE LONG-TERM INCENTIVE COMPENSATION PLAN

[date]

NACCO Industries Inc.

5875 Landerbrook Drive

Mayfield Heights, Ohio 44124-4017

Attention: Secretary

	 	 	 
	Re:

	 	200___ Grants of Award Shares under Executive Long-Term
 Incentive Compensation Plan

     [Name]

     The undersigned is an employee of NACCO Industries, Inc. (the “Company”) to whom grants of an
award (the “Award”) consisting of [insert number] fully paid and nonassessable shares (the “Award
Shares”) of Class A Common Stock, par value $1.00 per share, of the Company’s Class A Common Stock
(“Class A Common”) were made on March ___,
200___ by the Compensation Committee (the “Committee”) of
the Board of Directors of the Company pursuant to the NACCO Industries, Inc. Executive Long-Term
Incentive Compensation Plan (the “Plan”). I hereby accept the Award and acknowledge to and agree
with the Company as follows:

     1. Award. I acknowledge that the Committee has granted the Award to me subject to the terms
of the Plan and the related Executive Long-Term Incentive Compensation Plan Guidelines for the
January 1, 200___ through December 31,
200___ Award Term (the
“200___-200___ Guidelines”), the terms of
the resolutions of the Committee pursuant to which the Award was made and the terms of this
Agreement, and I hereby acknowledge receipt of stock certificate numbered [number] for [number]
shares of Class A Common representing the Award Shares.

     2. Restrictions on Transfer. I represent and covenant that, other than a transfer (a)
by will or the laws of descent and distribution, (b) pursuant to a domestic relations order meeting
the definition of a qualified domestic relations order under Section 206(d)(3)(B) of the Employee
Retirement Income Security Act of 1974, as amended (“QDRO”), or (c) to a trust (a “Trust”) for my
benefit or the benefit of my spouse, my children or my grandchildren (provided that Award Shares
transferred to such a Trust shall continue to remain subject to the transfer restrictions
hereinafter set forth), the Award Shares shall be non-transferable and I shall not make (or attempt
to make) any sale, assignment, transfer, exchange, pledge, hypothecation or encumbrance of the
Award Shares.

 

 

     3. Lapse of Restrictions. I acknowledge that the transfer restrictions on the Award
Shares set forth in paragraph (2) above shall lapse for all purposes and shall be of no further
force or effect upon the earliest to occur of: (a) December 31, 20___; (b) the date of my death or
permanent disability; (c) five years after retirement in accordance with the terms of The Combined
Defined Benefit Plan of NACCO Industries, Inc. and Its Subsidiaries (or, if I am not a member of
such plan, five years after my termination of employment after reaching age 60 with at least 15
years of service) (or earlier with the approval of the Committee); (d) an extraordinary release of
transfer restrictions pursuant to Section 3.2(d) of the
200___-200___ Guidelines; (e) the transfer of
Award Shares pursuant to a QDRO, but only as to the shares so transferred; and (f) a lapse of
transfer restrictions as provided in the terms of an instrument of termination adopted under the
Plan. As notice of such transfer restrictions, I acknowledge that there is affixed to the face or
back of each stock certificate representing Award Shares the following legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER SET FORTH IN THE NACCO INDUSTRIES, INC.
EXECUTIVE LONG-TERM INCENTIVE COMPENSATION PLAN (“PLAN”). SUCH
RESTRICTIONS ON TRANSFER UNDER THE PLAN SHALL LAPSE FOR ALL PURPOSES
AND SHALL BE OF NO FURTHER FORCE OR EFFECT AFTER DECEMBER 31, 20___,
OR SUCH EARLIER TIME AS PROVIDED IN THE PLAN.

     4. Obligations. I agree that each Trust and I shall fulfill the obligations imposed with
respect to Award Shares and by the Plan and the
200___-200___ Guidelines.

     5. Rights. I understand that, subject to the transfer restrictions set forth herein, I shall
have all of the rights of a holder of Class A Common with respect to the Award Shares, including
the right to vote such shares, to receive any dividends paid thereon and to participate in any of
the matters described in clauses (a), (b) and (c) of Section 7 of the Plan. Any securities that I
receive in respect to Award Shares in connection with any of such matters shall be deemed to be
Award Shares, and shall be subject to the transfer restrictions set forth herein to the same extent
and for the same period as if such securities were the original Award Shares with respect to which
they were issued.

     6. Surrender of Certificates. I understand that: (a) in the case of a transfer under
clause (a) or (b) of paragraph 2 above, on surrender to the Company by my successor or successors
in interest to the Award Shares of the appropriate certificate or certificates reflecting the Award
Shares, or (b) on surrender to the Company of the appropriate certificate or certificates
reflecting Award Shares with respect to which the transfer restrictions have otherwise lapsed in
accordance with paragraph 3 above, the Company shall cause a new certificate or certificates to be
issued without any legend referring to such restrictions.

     7. Withholding. In order that the Company may satisfy its withholding obligations with
respect to the compensation income resulting from the grant of any Award Shares, I authorize and
direct the Company to withhold from any amounts otherwise payable to me such amounts of taxes with
respect to the income attributable to such shares and at such time or times

 

 

as may be required to be withheld, including, without limitation, taxes required to be
withheld by reason of the compensation required to be reported for Federal income and employment
tax purposes by me, all as determined in good faith in the sole judgment of the Company. If there
are no such amounts otherwise payable to me, or if such amounts are insufficient, I will reimburse
or indemnify the Company or make provision satisfactory to the Board of Directors or the Committee
(or to any officer authorized for that purpose by the Board of Directors or the Committee) to
reimburse or indemnify the Company for such amounts of taxes at such time and from time to time, as
the Company may make demand for such reimbursement or indemnity. If and to the extent that in the
sole judgment of the Board of Directors or the Committee (or any officer authorized for that
purpose by the Board of Directors or the Committee) it appears advisable to do so, in order to
enforce the Company’s rights under the Plan and this Agreement, the Company shall not issue or
cause to be issued to me (or to my successor in interest), any new stock certificate without any
legend referring to the transfer restrictions with respect to the Award Shares as to which such
restrictions have lapsed, unless and until such amounts of taxes have been withheld from amounts
otherwise payable to me (or any of my successors in interest), or I (or such successor in interest)
reimburse or indemnify the Company for such amounts of such taxes or make other provisions for
reimbursement or indemnification to the Company of such taxes, satisfactory in the sole judgment of
the Board of Directors or the Committee (or such officer) exercised in good faith.

     8. Registration. I hereby agree that none of such Award Shares shall be sold or otherwise
disposed of, nor shall any of the same be offered for sale, by me except pursuant to a currently
effective registration statement by which such shares are duly registered under the Act, or in
accordance with an opinion of counsel satisfactory to the Company, which opinion shall have been
approved by the Company and be to the effect that the contemplated transaction (which shall be
described therein) may be legally effected, and the shares so transferred may subsequently be
resold, without registration under the Act.

     9. No Right to Employment. I acknowledge that the grant of Award Shares to me does
not in any way entitle me to continued employment with the Company and does not limit or restrict
any right that the Company otherwise may have to terminate my employment.

	 
	 
 
[name]

ACCEPTED                                         , 20___

NACCO INDUSTRIES, INC.

	 	 	 
	 
	 	 
	By:
	 	 
	 

	 	 
	 

	 	[name]<PAGE>

                                                                    EXHIBIT 10.1

                              PPG INDUSTRIES, INC.

                          NONQUALIFIED RETIREMENT PLAN

<PAGE>

                              History of Amendments

Effective January 1, 1996, the Plan was amended to provide that any benefit
which is not provided in the Qualified Salaried Plan as a result of a
Participant's election to defer monthly salary under the Deferred Compensation
Plan shall be payable under the Plan.

Effective January 1, 2000, the Plan was amended as follows:

      -     Section 5.5: Delete the "pop-up" option from the Supplemental Early
            Retirement benefits in order to avoid constructive receipt issues.

      -     Section 5.7: Amend lump-sum provisions to:

            Clarify that the only Participants who are eligible are those whose
            job is rated at 2,128 Hay Points at the time of their termination;
            or those who were promised a lump-sum option under previous Plan
            provisions -- as reflected on Attachment A.

      -     Section 6.1: Amend election provisions in order to avoid
            constructive receipt issues.

      -     Section 6.3: In connection with the amendments made to Section 6.1,
            provide that the AEP/SSB will be calculated using the Short Service
            formula in the case of a Participant who is eligible for the Short
            Service Benefit and who has filed an election designating his
            Benefit Commencement Date but who dies between the time of such
            designation and the Benefit Commencement Date.

      -     Section 7.2: Amend the "Forfeiture of Benefits" provisions to
            conform to those adopted in the Total Shareholder Return Plan.

      -     Section 7.4: Added new Section to clarify that, in accordance with
            Plan provisions, benefit amounts can increase and decrease over
            time.

      -     Section 9.3: Add language to the Change in Control provisions to
            ensure that funds sufficient to cover any possible lump-sum benefits
            are included in the Change-in-Control funding amount.

<PAGE>

Effective April 1, 2000:

      -     Amend Section 5 to conform to the amendments adopted effective April
            1, 2000 to the Qualified Salaried Plan and to provide for a
            transition benefit for those Participants with at least one hour of
            service earned prior to April 1, 2000, as similarly provided for in
            the Qualified Salaried Plan.

<PAGE>

Effective February 21, 2002, the Plan was amended as follows:

      -     Sections 2.1, 3.1 and 3.2 were amended to incorporate the Executive
            Officers' Incentive Compensation Plan to add a definition for the
            Executive Officers' Incentive Compensation Plan; and

      -     Section 5.3 was amended to allow the Administrative Committee to
            waive the offset for any Prior Employer Benefit effective with
            respect to any retirements occurring on or after March 1, 2002.

<PAGE>

Effective January 1, 2005, the Plan was amended to comply with Section 409A of
the Internal Revenue Code as follows:

      -     Section 5.8 was amended to provide that Participants described
            therein shall receive payment of benefits in the form of a lump sum
            (with no election by the Participant).

      -     Section 6.4 was amended to provide that, for Participants described
            in Section 5.8, payment of benefits accrued on or after January 1,
            2005 are paid to the Participants' beneficiary in the form of a lump
            sum.

      -     Section 6.1 was amended to provide that a Participant's Benefit
            Commencement Date is the first day of the month on or after the
            later of (i) his or her Early Retirement Age, or (ii) the date of
            his or her Termination of Employment.

      -     Section 6.5 was added to delay payments to Specified Employees.

<PAGE>
                                    ARTICLE I

                                 EFFECTIVE DATE

1.1   This Plan shall be effective for retirements and terminations which occur
      on and after January 1, 1989.

                                       1.1

<PAGE>
                                   ARTICLE II

                                   DEFINITIONS

2.1   Wherever used herein, the following words and phrases shall have the
      meanings set forth below unless a different meaning is plainly required by
      context:

      (a)   "Act" shall mean the Employee Retirement Income Security Act of 1974
            and amendments thereto.

      (b)   (1)   "Administrative Committee" shall mean the Compensation and
                  Employee Benefits Committee appointed by the Board of
                  Directors of the Company.

            (2)   "Administrative Subcommittee" shall mean a committee appointed
                  by the Administrative Committee which shall have the full
                  discretionary authority set forth in Section 7.2.

      (c)   "Administrator" shall mean the Director, Payroll and Benefits or any
            successor position.

      (d)   "Awards" shall mean a grant of incentive compensation under the
            Omnibus Plan, the Incentive Compensation Plan or the Management
            Award Plan which is paid or deferred on or after January 1, 1989.

      (e)   "Benefit Commencement Date" shall mean, with respect to a
            Participant, the date such Participant's benefits commence or are
            paid as specified in Section 6.1.

      (f)   "Company" shall mean PPG Industries, Inc. and its Subsidiaries.

      (g)   "Early Retirement Reduction Factor" shall mean the factor under the
            Qualified Salaried Plan applicable to the Participant's Benefit
            Commencement Date hereunder.

      (h)   "Eligible Spouse" shall mean:

            (1)   For purposes of the payment of an REP/SSB, a spouse who was
                  legally married to a Participant, Former Participant or
                  Terminated Vested Participant on his Benefit Commencement
                  Date; and

            (2)   For purposes of the payment of an AEP/SSB, a spouse who was
                  legally married to a Participant for the entire one-year
                  period immediately prior to the Participant's date of death.

      (i)   "Employee" shall mean any full-time employee (including any officer)
            of the Company.

                                       2.1
<PAGE>

      (j)   "Excess FAMI" shall mean the amount by which a Participant's FAMI
            exceeds Covered Compensation.

      (k)   "Final Average Monthly Incentive" or "FAMI" shall mean the sum of a
            Participant's five highest Awards paid or deferred within the ten
            years immediately preceding such Participant's termination of
            employment, divided by 60.

      (l)   "Former Participant" shall mean a Vested Participant who ceases to
            be a Participant prior to his Normal or Deferred Retirement Date for
            a reason other than retirement or termination of employment.

      (m)   "Incentive Compensation Plan" shall mean the PPG Industries, Inc.
            Incentive Compensation and Deferred Income Plan for Key Employees,
            as amended from time to time.

      (n)   "Management Award Plan" shall mean the PPG Industries, Inc.
            Management Award and Deferred Income Plan, as amended from time to
            time.

      (o)   "Omnibus Plan" shall mean the PPG Industries, Inc. Omnibus Incentive
            Plan, as amended from time to time.

      (p)   "Participant" shall mean an Employee of the Company who is eligible
            to participate, in accordance with ARTICLE III.

      (q)   "Plan" shall mean the PPG Industries, Inc. Nonqualified Retirement
            Plan.

      (r)   "Prior Employer Benefit" shall mean the amount of any benefit
            payable at Normal Retirement Age from any qualified or nonqualified
            retirement plan or profit sharing plan to which a Participant is
            entitled as a result of prior employment with any employer other
            than the Company. In the event such amount is payable in any manner
            other than a monthly straight-life annuity, such amount will be
            converted to a monthly straight-life annuity, using acceptable
            actuarial assumptions, as determined by the Administrator and
            consistent with the procedures of the Qualified Salaried Plan.

      (s)   "Prior Plan" shall mean Appendix 1 of the Qualified Salaried Plan,
            as in effect immediately prior to April 1, 2000.

      (t)   "Qualified Salaried Plan" shall mean the PPG Industries, Inc.
            Retirement Income Plan core document, its Appendix 1, and the
            Salaried Service Rules, as amended from time to time, and any
            successor plan.

      (u)   "Subsidiary" shall mean any Corporation, fifty percent or more of
            the outstanding voting stock or voting power of which is owned,
            directly or indirectly, by the

                                       2.2

<PAGE>

            Company and any partnership or other entity in which the Company has
            a fifty percent or more ownership interest.

      (v)   "Terminated Vested Participant" shall mean a Vested Participant who
            terminates employment prior to his Early Retirement Date.

      (w)   "Vested Participant" shall mean a Participant who has satisfied the
            vesting requirements of the Qualified Salaried Plan.

2.2   Wherever used herein, the following words and phrases shall have the
      meaning set forth in the Qualified Salaried Plan:

      "Active Employees' Pension Surviving Spouse Benefit (AEP/SSB)"
      "Beneficiary"
      "Code"
      "Continuous Service" (for purposes of this Plan, up to a maximum of 35
      years)
      "Covered Compensation"
      "Deferred Retirement Date"
      "Early Retirement Date"
      "Joint and Survivor Annuity"
      "Normal Retirement Date"
      "Retired Employees' Pension Surviving Spouse Benefit (REP/SSB)"
      "Retirement Date"
      "Social Security Early Retirement Age"
      "Social Security Normal Retirement Age"
      "Straight-Life Annuity"
      "Supplemental Early Retirement Date"
      "Termination of Employment"

2.3   Wherever used herein, the masculine shall include the feminine and the
      singular shall include the plural unless a different meaning is clearly
      indicated by the context.

                                       2.3
<PAGE>
                                   ARTICLE III

                         REQUIREMENTS FOR PARTICIPATION

3.1   An Employee shall be a Participant in this Plan if he is a participant in
      one or more of the Omnibus Plan, the Incentive Compensation Plan or the
      Management Award Plan.

3.2   A Participant shall cease to be an active Participant under this Plan at
      any time he ceases to be an active participant in each of the Omnibus
      Plan, the Incentive Compensation Plan and the Management Award Plan,
      unless otherwise designated by the Administrative Committee to remain as a
      Participant.

3.3   A Participant shall cease to be an active Participant under this Plan at
      any time he ceases to be an active participant under the Qualified
      Salaried Plan.

                                      3.1

<PAGE>

                                   ARTICLE IV

                            ELIGIBILITY FOR BENEFITS

4.1   Standard Benefit

      Subject to Section 4.4, any Participant or Former Participant whose Normal
      Retirement Date, Early Retirement Date, Deferred Retirement Date,
      Supplemental Early Retirement Date or any Terminated Vested Participant
      whose termination date occurs on or after January 1, 1989, shall be
      eligible to receive the Standard Benefit as provided in Section 5.1,
      unless specifically designated by the Administrative Committee to receive
      the Special Short Service Benefit as provided in Section 5.3.

4.2   Special Short Service Benefit

      Subject to Section 4.4:

      (a)   Any Participant whose Normal Retirement Date or Deferred Retirement
            Date occurs on or after January 1, 1989, and who meets all of the
            following criteria shall be eligible to receive the Special Short
            Service Benefit as provided in Section 5.3:

            (1)   He has been specifically designated by the Administrative
                  Committee to receive the Special Short Service Benefit; and

            (2)   He has less than thirty (30) years of Continuous Service on
                  his Retirement Date.

      (b)   Any Participant whose Early Retirement Date occurs on or after
            January 1, 1989, and who meets all of the following criteria shall
            be eligible to receive the Special Short Service Benefit as provided
            in Section 5.3:

            (1)   He has been specifically designated by the Administrative
                  Committee to receive the Special Short Service Benefit; and

            (2)   He has less than thirty (30) years of Continuous Service on
                  his Retirement Date; and

            (3)   He has been specifically approved by the Administrative
                  Committee to retire prior to his Normal Retirement Date.

4.3   Subject to Section 4.4, any Participant or Former Participant whose Normal
      Retirement Date, Early Retirement Date, Deferred Retirement Date,
      Supplemental Early Retirement Date, or any Terminated Vested Participant
      whose termination date occurs:

      (a)   On or after January 1, 1989, and

                                      4.1
<PAGE>

            (i)   Whose benefit under the Qualified Salaried Plan is limited or
                  reduced as a result of Section 415 and/or Section 401(a)(17)
                  of the Internal Revenue Code; or

            (ii)  Who was eligible to receive a benefit in accordance with
                  Section 5.5 of the PPG Industries, Inc. Supplemental
                  Retirement Plan II but whose benefit under this Plan is
                  greater than such benefit, and whose benefit under the
                  Qualified Salaried Plan is limited or reduced as a result of
                  having deferred salary under the terms of the Capital
                  Enhancement Account provision of the Incentive Compensation
                  Plan; or

      (b)   On or after January 1, 1996, and whose benefit under the Qualified
            Salaried Plan is limited or reduced as a result of having deferred
            salary under the terms of the PPG Industries, Inc. Deferred
            Compensation Plan,

      shall be eligible to receive the Excess Benefit as provided in Section
      5.7.

4.4   A Participant who is entitled to receive a benefit in accordance with
      Section 5.6 of the PPG Industries, Inc. Supplemental Retirement Plan II
      shall not be entitled to receive a benefit under this Plan.

                                      4.2
<PAGE>

                                    ARTICLE V

                               AMOUNTS OF BENEFITS

5.1   Standard Benefit

      (a)   Except as otherwise provided in Section 5.2 or 5.3, as applicable,
            for a Participant or Former Participant who retires on his Normal
            Retirement Date or Deferred Retirement Date or for a Terminated
            Vested Participant whose Benefit Commencement Date is his Normal
            Retirement Date, the monthly benefit shall be:

            FOR RETIREMENTS/TERMINATIONS PRIOR TO APRIL 1, 2000

                                    .0095 times FAMI
                              plus  .0065 times Excess FAMI
                                    -----------------------

                                    Total times Continuous Service

            FOR RETIREMENTS/TERMINATIONS ON AND AFTER APRIL 1, 2000

                                    .00855 times FAMI
                              plus  .00585 times Excess FAMI
                                    ------------------------

                                    Total times Continuous Service

            LESS

            Other payments specifically designated by the Administrative
            Committee to be deducted which are made pursuant to an individual
            employee contract to provide retirement income or deferred
            compensation regardless of whether the contract is made with the
            Company, a Subsidiary, or other employer.

      (b)   Except as otherwise provided in Section 5.2 or 5.3, as applicable,
            for a Participant or Former Participant who retires before his
            Normal Retirement Date or Deferred Retirement Date or for a
            Terminated Vested Participant whose Benefit Commencement Date is
            before his Normal Retirement Date, the monthly benefit shall be:

            FOR RETIREMENTS/TERMINATIONS PRIOR TO APRIL 1, 2000

                                    .0095 times FAMI
                              plus  .0065 times Excess FAMI
                                    -----------------------

                                    Total times Continuous Service

                                      5.1
<PAGE>

            FOR RETIREMENTS/TERMINATIONS ON AND AFTER APRIL 1, 2000

                                    .00855 times FAMI
                              plus  .00585 times Excess FAMI
                                    ------------------------

                                    Total times Continuous Service

            MULTIPLIED BY

            The Early Retirement Reduction Factor

            LESS

            Other payments specifically designated by the Administrative
            Committee to be deducted which are made pursuant to an individual
            employee contract to provide retirement income or deferred
            compensation regardless of whether the contract is made with the
            Company, a Subsidiary, or other employer.

5.2   Transition Benefit

      Notwithstanding Section 5.1, the following Transition Benefit provisions
      apply to Participants or Former Participants who retire/terminate on or
      after April 1, 2000, but who have at least one hour of service prior to
      April 1, 2000.

      (a)   For a Participant or Former Participant who retires on his Early
            Retirement Date, Normal Retirement Date or Deferred Retirement Date,
            a Transition Benefit shall be calculated in lieu of the Standard
            Benefit in accordance with this Section 5.2(a) and the Participant
            shall be entitled to the greater of [(1) + (2)] or (3).

            (1)   The Participant's benefit calculated under Section 5.1 for
                  retirements/terminations on or before March 31, 2000, using
                  the Participant's Continuous Service as of March 31, 2000,
                  FAMI as of his Retirement Date, and the Early Retirement
                  Reduction Factors in effect under the Prior Plan; plus

            (2)   The Participant's benefit calculated under Section 5.1 for
                  retirements/terminations on and after April 1, 2000, using the
                  Participant's Continuous Service on and after April 1, 2000,
                  FAMI as of his Retirement Date, and the Early Retirement
                  Reduction Factors in effect under the Qualified Salaried Plan;
                  or

            (3)   The Participant's benefit calculated under Section 5.1 for
                  retirements/terminations on and after April 1, 2000, as of his
                  Retirement Date, using the Participant's Continuous Service as
                  of his Retirement Date, FAMI as of his Retirement Date, and
                  the Early Retirement Reduction Factors in effect under the
                  Qualified Salaried Plan.

                                      5.2
<PAGE>
      (b)   Notwithstanding Section 5.1, for a Terminated Vested Participant
            whose Benefit Commencement Date is his Early Retirement Date or his
            Normal Retirement Date, a Transition Benefit shall be calculated in
            lieu of the Standard Benefit in accordance with this Section 5.2(b)
            and the Participant shall be entitled to the greater of [(1) + (2)]
            or (3).

            (1)   The Participant's benefit calculated under Section 5.1 for
                  retirements/terminations on or before March 31, 2000 using the
                  Participant's Continuous Service as of March 31, 2000, FAMI as
                  of March 31, 2000, and the Early Retirement Reduction Factors
                  in effect under the Prior Plan; plus;

            (2)   The Participant's benefit calculated under Section 5.1 for
                  retirements/terminations on and after April 1, 2000, using the
                  Participant's Continuous Service on and after April 1, 2000,
                  FAMI as of his Termination of Employment date, and the Early
                  Retirement Reduction Factors in effect under the Qualified
                  Salaried Plan; or

            (3)   The Participant's benefit calculated under Section 5.1 for
                  retirements/terminations on and after April 1, 2000, as of his
                  Termination of Employment date, using the Participant's
                  Continuous Service as of his Termination of Employment date,
                  FAMI as of his Termination of Employment date, and the Early
                  Retirement Reduction Factors in effect under the Qualified
                  Salaried Plan.

5.3   Special Short Service Benefit

      (a)   For purposes of this Section 5.3 only, "Plan Service" shall mean one
            and one-half (1 1/2) times Continuous Service, with any half ( 1/2)
            month rounded up to the next full month, up to a maximum of thirty
            (30) years.

      (b)   For a Participant who retires on his Normal Retirement Date or
            Deferred Retirement Date, the monthly benefit shall be:

            FOR RETIREMENTS PRIOR TO APRIL 1, 2000

                              .0095 times FAMI
                        plus  .0065 times Excess FAMI
                              -----------------------

                              Total times Plan Service

                                      5.3
<PAGE>
            FOR RETIREMENTS ON AND AFTER APRIL 1, 2000

                              .00855 times FAMI
                        plus  .00585 times Excess FAMI
                              ------------------------

                              Total times Plan Service

            LESS

            Except as otherwise provided in the following sentence with respect
            to certain Participants, any Prior Employer Benefit plus other
            payments, if specifically designated by the Administrative Committee
            to be deducted, which are made pursuant to an individual employee
            contract to provide retirement income or deferred compensation,
            regardless of whether the contract is made by the Company, a
            Subsidiary, or any other employer. Notwithstanding the preceding
            sentence, upon a specific designation by the Administrative
            Committee, in its discretion, the benefit described in this
            subparagraph (b) of this Section 5.3 shall not be reduced by any
            Prior Employer Benefit payable with respect to a Participant whose
            Retirement Date occurs on or after March 1, 2002.

      (c)   For a Participant who retires on his Early Retirement Date, Plan
            Service shall be reduced by one month for each month the
            Participant's Benefit Commencement Date precedes his Normal
            Retirement Date; provided, however, that the Administrative
            Committee may approve a lesser reduction.

      (d)   The monthly benefit for a Participant described in subparagraph (c)
            of this section 5.3 shall be:

            FOR RETIREMENTS PRIOR TO APRIL 1, 2000

                              .0095 times FAMI
                        plus  .0065 times Excess FAMI
                              -----------------------

                              Total times Plan Service

            FOR RETIREMENTS ON AND AFTER APRIL 1, 2000

                              .00855 times FAMI
                        plus  .00585 times Excess FAMI
                              ------------------------

                              Total times Plan Service

            MULTIPLIED BY

            The Early Retirement Reduction Factor

                                      5.4
<PAGE>

            LESS

            Except as otherwise provided in the following sentence with respect
            to certain Participants, any Prior Employer Benefit plus other
            payments, if specifically designated by the Administrative Committee
            to be deducted, which are made pursuant to an individual employee
            contract to provide retirement income or deferred compensation,
            regardless of whether the contract is made by the Company, a
            Subsidiary, or any other employer. Notwithstanding the preceding
            sentence, upon a specific designation by the Administrative
            Committee, in its discretion, the benefit described in this
            subparagraph (d) of this Section 5.3 shall not be reduced by any
            Prior Employer Benefit payable with respect to a Participant whose
            Retirement Date occurs on or after March 1, 2002.

      (e)   Notwithstanding the preceding paragraphs of this Section 5.3, the
            Special Short Service Benefit under paragraphs (a) through (d) of
            this Section 5.3 for any Participant whose Retirement Date is on or
            after April 2000, but who has at least one hour of service before
            April 1, 2000 shall be calculated using the formula for the
            calculation of the Transition Benefit described in Section 5.2(a),
            but substituting "Plan Service," as defined in this Section 5.3, for
            "Continuous Service" each place it appears in said Section 5.2(a).

5.4   Terminated Vested Participant

      In the case of a Terminated Vested Participant who is not eligible for the
      Transition Benefit, the benefit amount payable under this Plan shall be
      calculated using Continuous Service, Final Average Monthly Incentive, and
      Covered Compensation as of the date of termination.

5.5   Former Participant

      In the case of a Former Participant who is not eligible for the Transition
      Benefit, the benefit amount payable under this Plan shall be calculated as
      if his employment had terminated on the date his active participation in
      the Plan ceased, using Continuous Service, Final Average Monthly
      Incentive, and Covered Compensation as of the date of cessation of active
      participation.

      Where a Former Participant subsequently retires or becomes a Terminated
      Vested Participant, the benefit amount payable under this Plan shall be
      calculated in accordance with this Section 5.5.

5.6   Supplemental Early Retirement

      (a)   A Participant or Former Participant who is eligible for a
            Supplemental Early Retirement Benefit under the Qualified Salaried
            Plan shall be eligible to have his benefit under this Plan
            calculated in a manner similar to the calculation of the Qualified
            Salaried Plan Supplemental Early Retirement benefit; provided,

                                      5.5
<PAGE>

            however, that no portion of the Supplemental Early Retirement
            Benefit may be deferred and that such Participant or Former
            Participant shall not be eligible for the Social Security Supplement
            as defined in the Qualified Salaried Plan.

      (b)   The Administrator shall apply rules for the calculation of the
            benefit pursuant to this Section 5.6 in a uniform and
            nondiscriminatory manner.

5.7   Excess Benefit

      (a)   In the event a Participant's benefit under the Qualified Salaried
            Plan is limited or reduced as a result of Section 415 and/or Section
            401(a)(17) of the Internal Revenue Code, or, in the case of a
            Participant described in either subparagraph (a)(ii) or paragraph
            (b) of Section 4.3, whose benefit under the Qualified Salaried Plan
            is limited or reduced as a result of his having deferred salary
            under the terms of the Capital Enhancement Account provision of the
            Incentive Compensation Plan, and/or as a result of his having
            deferred salary under the terms of the PPG Industries, Inc. Deferred
            Compensation Plan, this Plan shall provide a benefit equal to the
            amount of such limitation or reduction.

      (b)   The Administrator shall apply rules for the calculation of the
            benefit pursuant to this Section 5.7 in a uniform and
            nondiscriminatory manner.

      (c)   Any benefit payable in accordance with this Section 5.7 shall be in
            addition to any other benefit which may be payable hereunder.

5.8   Lump-Sum Benefit

      (a)   Eligibility

            In accordance with this Section 5.8, a Participant shall, except as
            provided in subsection (c) below, receive any benefit payable
            hereunder in a lump sum, in lieu of a monthly annuity if such
            Participant is in a job rated at Band B or higher at his or her
            Retirement Date.

      (b)   Calculation of Lump-Sum Benefit

            Any lump-sum benefit payable under this Section 5.8 shall be
            calculated using mortality assumptions according to the current
            actuarial valuation prepared for the Plan, and the PBGC immediate
            interest rate for the month in which the Participant's Benefit
            Commencement Date, as defined in Section 6.1, occurs.

      (c)   Exceptions

            (1)   The Administrative Committee shall have full discretion to
                  provide that the portion of a Participant's benefit that
                  accrued prior to January 1, 2005

                                      5.6
<PAGE>

                  will not be paid in a lump sum. Such decisions by the
                  Administrative Committee shall be made in a uniform and
                  nondiscriminatory manner.

            (2)   The portion of a Participant's benefit that accrues on or
                  after January 1, 2005 will not be paid in a lump sum if, on or
                  before the date payment would otherwise be made, the
                  Participant engages in any activity in competition with any
                  activity of the Company or any of its Subsidiaries, or
                  contrary or harmful to the interests of the Company or any of
                  its Subsidiaries, including, but not limited to: (a) conduct
                  related to the Participant's employment for which either
                  criminal or civil penalties against the Participant may be
                  sought; (b) violation of Company (or Subsidiary) Business
                  Conduct Policies; (c) accepting employment with or serving as
                  a consultant, advisor or in any other capacity to an employer
                  that is in competition with or acting against the interests of
                  the Company or any of its Subsidiaries, including employing or
                  recruiting any present, former or future employee of the
                  Company or any of its Subsidiaries; (4) disclosing or misusing
                  any confidential information or material concerning the
                  Company or any of its Subsidiaries; or (5) participating in a
                  hostile takeover attempt.

                                      5.7
<PAGE>
                                   ARTICLE VI

               PAYMENT OF BENEFITS (INCLUDING REP/SSB AND AEP/SSB)

6.1   A Participant's Benefit Commencement Date shall be the first of the month
      which is on or after the later of (i) his Early Retirement Date, or (ii)
      the date of his Termination of Employment or, if applicable, his
      Supplemental Early Retirement Date, or, if later, the date of such
      Participant's Separation from Service (as such term is defined in Section
      409A of the Internal Revenue Code).

6.2   Except as otherwise provided in Section 5.8, a Participant may elect
      payment in the form of a Joint and Survivor Annuity or Straight Life
      Annuity. Subject to Section 6.1, such elections and payments shall be
      subject to the provisions of the Qualified Salaried Plan.

6.3   In the case of a Participant who is entitled to a lump sum benefit and who
      dies prior to his Benefit Commencement Date, the portion of such benefit
      that accrued prior to January 1, 2005, shall be payable in accordance with
      Section 6.5 and the portion of such benefit that accrued on or after
      January 1, 2005 shall be paid to such Participant's Beneficiary in a lump
      sum.

6.4   Payment of the AEP/SSB

      (a)   Except as otherwise provided herein, eligibility for and payment of
            the AEP/SSB under this Plan shall be governed by the same rules and
            regulations as the Qualified Salaried Plan.

      (b)   The amount of benefit payable to an Eligible Spouse under the
            AEP/SSB shall always be determined under either the Standard Benefit
            formula or the Transition Benefit formula, as provided in Sections
            5.1 or 5.2 of this Plan, as applicable.

      (c)   Except as provided in paragraph (d) below, the amount of benefit
            payable to an Eligible Spouse under the AEP/SSB of a Participant
            eligible for the Special Short Service Benefit shall not be based on
            the Special Short Service Benefit formula.

      (d)   The amount of benefit payable to an Eligible Spouse of a
            Participant who:

            (1)   is eligible for the Special Short Service Benefit; and

            (2)   dies prior to his Benefit Commencement Date

            shall be based on the Special Short Service Benefit formula.

6.5   Notwithstanding any other provision of the Plan, with respect to any
      Participant who is a Specified Employee (as that term is defined in
      Section 409A of the Internal Revenue Code), any payment attributable to
      benefits accrued on or after January 1, 2005 that would otherwise be made
      to such Participant during the six-month period following his

                                      6.1
<PAGE>

      or her Separation from Service (as such term is defined in Section 409A of
      the Internal Revenue Code) shall be postponed and paid on the first day of
      the month following the date that is six months after such Participant's
      Separation from Service, together with interest at a rate equal to the
      PBGC immediate interest rate for the month in which the Participant's
      Separation from Service occurs. This Section 6.5 shall not apply to
      benefits paid pursuant to the death of the Participant.

                                      6.2
<PAGE>

                                   ARTICLE VII

                             FORFEITURE OF BENEFITS

7.1   In the event a Participant ceases participation under this Plan prior to
      becoming vested in the Qualified Salaried Plan, no benefit shall be
      payable under this Plan.

7.2   (a)   Any benefit payable under this Plan to a Participant, Former
            Participant, or Terminated Vested Participant shall be forfeitable
            in the event it is found that such Participant engages in any
            activity in competition with any activity of the Company, or
            contrary or harmful to the interests of the Company, including, but
            not limited to:

            (1)   Conduct related to the Participant's employment for
                  which either criminal or civil penalties against the
                  Participant may be sought; or

            (2)   Violation of the Company's Business Conduct Policies; or

            (3)   Accepting employment with or serving as a consultant, advisor
                  or in any other capacity to an employer that is in competition
                  with or acting against the interests of the Company, including
                  employing or recruiting any present, former or future employee
                  of the Company; or

            (4)   Disclosing or misusing any confidential information or
                  material concerning the Company; or

            (5)   Participating in a hostile take over attempt.

      (b)   All determinations under this Section 7.2 shall be made by the
            Administrative Subcommittee at its sole discretion.  As the
            Administrative Subcommittee finds appropriate, it may
            terminate immediately or suspend benefits to such Participant
            and furnish due notice thereof.  If benefits are suspended,
            the Administrative Subcommittee may thereafter terminate
            benefits under this Plan unless such Participant discontinues
            the competitive activity or activity contrary or harmful to
            the interests of the Company and affords written notice to the
            Administrative Subcommittee of such discontinuance within
            ninety (90) calendar days following the giving of notice of
            suspension of benefits.  The Company may use whatever means
            legally available to recover benefits already paid.

7.3   If any benefit under the Plan has been payable to and has been unclaimed
      by any Participant, Former Participant, Terminated Vested Participant or
      Eligible Spouse for a reasonable period of time, as determined by the
      Administrator, the Administrator may direct that all rights of such
      Participant or Eligible Spouse to payments accrued and to future payments
      be terminated absolutely, provided that if such Participant or Eligible
      Spouse subsequently appears and identifies himself to the satisfaction of
      the Administrator, then the liability will be reinstated.

                                      7.1
<PAGE>

7.4   The amount of benefits under this Plan may increase or decrease over time
      as provided by the provisions of the Plan.

                                      7.2
<PAGE>

                                  ARTICLE VIII

                               GENERAL PROVISIONS

8.1   The entire cost of benefits and administrative expenses for this Plan
      shall be paid by the Company out of its general assets.

8.2   Except where expressly reserved to the Company, the Administrative
      Committee or the Administrative Subcommittee, the administration of this
      Plan shall be the responsibility of the Administrator, who shall interpret
      the provisions of this Plan and decide all questions arising in its
      administration. The decisions of the Administrator shall be conclusive and
      binding for all purposes. The Administrative Committee and the
      Administrative Subcommittee each shall have full and discretionary
      authority to act on those matters for which they have been assigned
      specific responsibility. The Administrator shall have the full
      discretionary authority to:

      (a)   determine eligibility for benefits in accordance with the
            provisions of the Plan;

      (b)   construe the terms of the Plan; and

      (c)   control and manage the operation and administration of the
            Plan.

      All actions, decisions and interpretations of the Administrative
      Committee, Administrative Subcommittee and the Administrator shall be
      performed or made in a uniform and nondiscriminatory manner.

8.3   Nothing contained in this Plan shall be construed as a contract of
      employment between the Company and any Participant, and the Plan shall not
      afford any Participant a right of continued service with the Company.

8.4   This Plan is purely voluntary on the part of the Company. The Company, by
      action of the Officers-Director Compensation Committee (or any successor)
      of the Board of Directors or by such other person or committee acting in
      accordance with a procedure adopted and approved by the Officers-Directors
      Compensation Committee (or any successor) of the Board of Directors, may
      amend, suspend, or terminate the Plan, in whole or in part at any time.

8.5   (a)   Except as provided in paragraph (b) below, no benefits payable
            under this Plan may be assigned or alienated or transferred in whole
            or in part. No benefits payable under the Plan shall be subject to
            legal process or attachment for the payment of any claim against any
            person entitled to receive the same.

      (b)   Paragraph (a) above does not apply to the extent that a
            Participant's interest under the Plan is alienated pursuant to
            a "Qualified Domestic Relations Order" (QDRO) as defined in
            Section 414(p) of the Internal Revenue Code.  The
            Administrator is authorized to adopt such procedural and
            substantive rules and to take such

                                      8.1
<PAGE>

            procedural and substantive actions as the Administrator may deem
            necessary or advisable to provide for the payment of amounts from
            the Plan to an Alternate Payee as provided in a QDRO.

8.6   The Plan is intended to constitute an unfunded plan providing retirement
      or deferred compensation benefits for officers and highly compensated
      employees exempt from the requirements of parts 2, 3, and 4 of the
      Employee Retirement Income Security Act of 1974, as amended ("ERISA").
      Except to the extent otherwise provided in ERISA and the Code, this Plan
      shall be construed, regulated and administered under the laws of the
      Commonwealth of Pennsylvania.

                                      8.2
<PAGE>

                                   ARTICLE IX

                                CHANGE IN CONTROL

9.1   Notwithstanding any other provisions of this Plan, upon a Change in
      Control, as defined in Section 9.2:

      (a)   All Participants shall be deemed to be Vested Participants;

      (b)   Any Participant, including Participants described in paragraph (a)
            of this Section 9.1, shall be eligible to receive the Special Short
            Service Benefit as provided in Section 5.3 if, as of the date a
            Change in Control occurs, he has been so designated by the
            Administrative Committee.

      (c)   Paragraph (c) of Section 5.3 shall be revised in its entirety
            to read:

            (c)   For a Participant who retires on his Early Retirement Date,
                  for purposes of computing his benefit, Plan Service shall be
                  reduced by the lesser of:

                  (1)   One month for each month the Participant's Benefit
                        Commencement Date precedes his Normal Retirement
                        Date; or

                  (2)   36 months.

9.2   For purposes of this Plan, a "Change in Control" shall mean:

      (a)   The acquisition by any individual, entity or group (within the
            meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
            Act of 1934, as amended (the "Exchange Act")) (a "Person") of
            beneficial ownership (within the meaning of Rule 13d-3 promulgated
            under the Exchange Act) of 20% or more of either

            (i)   the then outstanding shares of common stock of the
                  Company (the "Outstanding Company Common Stock") or

            (ii)  the combined voting power of the then outstanding voting
                  securities of the Company entitled to vote generally in the
                  election of directors (the "Outstanding Company Voting
                  Securities");

            provided, however, that for purposes of this subsection (a), the
            following acquisitions shall not constitute a Change in Control:

            (i)   any acquisition directly from the Company,

            (ii)  any acquisition by the Company,

            (iii) any acquisition by any employee benefit plan (or related
                  trust) sponsored or maintained by the Company or any
                  Company controlled by the Company, or

<PAGE>

            (iv)  any acquisition by any Company pursuant to a transaction which
                  complies with clauses (i), (ii) and (iii) of subsection (c) of
                  this Section 9.2; or

      (b)   Individuals who, as of the date hereof, constitute the Board
            (the "Incumbent Board") cease for any reason to constitute at
            least a majority of the Board; provided, however, that any
            individual becoming a director subsequent to the date hereof
            whose election, or nomination for election by the Company's
            shareholders, was approved by a vote of at least a majority of
            the directors then comprising the Incumbent Board shall be
            considered as though such individual were a member of the
            Incumbent Board, but excluding, for this purpose, any such
            individual whose initial assumption of office occurs as a
            result of an actual or threatened election contest with
            respect to the election or removal of directors or other
            actual or threatened solicitation of proxies or consents by or
            on behalf of a Person other than the Board; or

      (c)   Approval by the shareholders of the Company of a reorganization,
            merger or consolidation or sale or other disposition of all or
            substantially all of the assets of the Company (a "Business
            Combination"), in each case, unless, following such Business
            Combination,

            (i)   all or substantially all of the individuals and entities
                  who were the beneficial owners, respectively, of the
                  Outstanding Company Common Stock and Outstanding Company
                  Voting Securities immediately prior to such Business
                  Combination beneficially own, directly or indirectly,
                  more than 60% of, respectively, the then outstanding
                  shares of common stock and the combined voting power of
                  the then outstanding voting securities entitled to vote
                  generally in the election of directors, as the case may
                  be, of the Company resulting from such Business
                  Combination (including, without limitation, a Company
                  which as a result of such transaction owns the Company
                  or all or substantially all of the Company's assets
                  either directly or through one or more subsidiaries) in
                  substantially the same proportions as their ownership,
                  immediately prior to such Business Combination of the
                  Outstanding Company Common Stock and Outstanding Company
                  Voting Securities, as the case may be,

            (ii)  no Person (excluding any employee benefit plan (or related
                  trust) of the Company or such Company resulting from such
                  Business Combination) beneficially owns, directly or
                  indirectly, 20% or more of, respectively, the then outstanding
                  shares of common stock of the Company resulting from such
                  Business Combination or the combined voting power of the then
                  outstanding voting securities of such Company except to the
                  extent that such ownership existed prior to the Business
                  Combination, and

            (iii) at least a majority of the members of the board of directors
                  of the Company resulting from such Business Combination were
                  members of the Incumbent Board at the time of the execution of
                  the initial agreement, or of the action of the Board,
                  providing for such Business Combination;

<PAGE>

      (d)   Approval by the shareholders of the Company of a complete
            liquidation or dissolution of the Company; or

      (e)   A majority of the Board otherwise determines that a Change in
            Control shall have occurred.

9.3   Upon, or in reasonable anticipation of, a Change in Control, an amount
      sufficient to fund the benefits of all Vested Participants, including
      those vested pursuant to Section 9.1, Former Participants, and Terminated
      Vested Participants, including an amount sufficient to fund additional
      benefits anticipated to accrue during the twenty-four (24) month period
      immediately following a Change in Control, the Active Employees' Pension
      Surviving Spouse Benefit, the survivor annuity payable to the joint
      annuitant designated by any such Participant on his Benefit Commencement
      Date, and all lump-sum benefits which might become payable hereunder,
      shall be paid immediately by the Company to a Trustee. Selection of the
      Trustee, the amounts to be paid by the Company and the terms of such
      payment (including such terms as are appropriate to cause such payment, if
      possible, not to be a taxable event) in order to give effect to the
      payment of benefits as provided in Sections 9.4 and 9.5 shall be
      determined by the Vice President, Human Resources, and/or the Vice
      President, Finance. Notwithstanding such funding, the Company shall be
      obligated to pay such benefits to such Vested Participants, Former
      Participants and Terminated Vested Participants to the extent such funding
      proves to be insufficient. To the extent such funding proves to be more
      than sufficient, such excess shall revert to the Company.

      Except as regards paragraph (d) of Section 9.2, the Officers-Directors
      Compensation Committee shall have the duty and the authority to make the
      determination as to whether a Change in Control has occurred, or is
      reasonably to be anticipated, and, concomitantly, to direct the making of
      the payment contemplated herein.

9.4   The Trustee shall provide for the payment of benefits to Vested
      Participants, Former Participants, Terminated Vested Participants,
      Eligible Spouses and joint annuitants in accordance with the provisions of
      this Plan as in effect on the date of the Change in Control. Any
      subsequent attempts to suspend or terminate this Plan or to amend this
      Plan in any way which reduces future benefits shall have no effect on
      payments made or to be made by the Trustee.

9.5   Notwithstanding any provision of this Plan, including without limitation,
      Section 8.4, this Plan may not be:

      (a)   Amended such that future benefits would be reduced; or

      (b)   Suspended; or

      (c)   Terminated;

            (1)   As to the future accrual of benefits, at any time during the
                  twenty-four (24) month period following a Change in Control;
                  or

<PAGE>

            (2)   As to the payment of benefits, at any time prior to the last
                  payment, determined in accordance with the provisions of this
                  Plan, to each Vested Participant, Former Participant,
                  Terminated Vested Participant, Eligible Spouse and joint
                  annuitant.

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