Document:

Exhibit 10.1

 

Exhibit 10.1

WORTHINGTON INDUSTRIES, INC.

2005 NON-QUALIFIED

DEFERRED COMPENSATION PLAN

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ARTICLE I - INTRODUCTION

	1.1  	Name and Adoption of Plan.
	 
	   	Worthington Industries, Inc. (the “Company”) hereby adopts this Worthington
Industries 2005 Non-Qualified Deferred Compensation Plan (the “Plan”). The Company
also extends the Plan to any Company Subsidiary that adopts the Plan, subject to the
terms described in Section 1.7.
	 
	1.2  	Purposes of Plan.
	 
	   	The purpose of the Plan is to provide deferred compensation for a select group of
management or highly compensated employees of the Employers.
	 
	1.3  	“Top Hat” Pension Benefit Plan.
	 
	   	The Plan is an “employee pension benefit plan” within the meaning of ERISA Section
3(2). The Plan is maintained, however, for a select group of management or highly
compensated employees and, therefore, is exempt from Parts 2, 3 and 4 of Title 1 of
ERISA. The Plan is not intended to qualify under Code Section 401(a).
	 
	1.4  	Plan Unfunded.
	 
	   	The Plan is unfunded. All benefits will be paid from Employers’ general assets,
which will continue to be subject to the claims of Employers’ creditors as described
in Section 11.6.
	 
	1.5  	Effective Date.
	 
	   	The effective date of this Plan is January 1, 2005, with initial deferral elections
made in December 2004. Bonus Deferrals may be made for Fiscal Quarters beginning on
or after March 1, 2005. Base Salary Deferrals may be made for pay periods beginning
on or after January 1, 2005. Election to make Deferrals under the Plan may
initially be made in December 2004.
	 
	1.6  	Administration.
	 
	   	The Plan shall be administered by the Committee.
	 
	1.7.  	Participating Employers.
	 
	   	Any Company Subsidiary may become an Employer in the Plan upon mutual agreement
between the Company and the Company Subsidiary.

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	   	As a condition to becoming an
Employer, each Company Subsidiary must (a) designate the Committee as the entity
responsible for Plan administration, (b) delegate to the Company, the Committee and
the Executive Committee all power and authority to interpret, amend or terminate the
Plan, as described in this document, and to discharge the duties and
responsibilities described in Article VIII and (c) subject to Section 11.6, agree to
make the payment of any Plan benefits accrued by its Employees under the Plan. An
entity that ceases to be an Employer will nevertheless remain responsible for any
liabilities arising from or attributable to periods during which it was an Employer.

ARTICLE II - DEFINITIONS AND CONSTRUCTION

	2.1  	Definitions.
	 
	   	For purposes of the Plan, the following words and phrases shall have the respective
meanings set forth below, unless their context clearly requires a different meaning:
	 
	   	“Account” means the bookkeeping account maintained by the Committee on behalf of
each Participant pursuant to Article VI.
	 
	   	“Base Salary” means the base rate of cash compensation paid by the Employers to or
for the benefit of a Participant for services rendered or labor performed on or
after the Effective Date including base pay a Participant could have received in
cash in lieu of deferrals pursuant to Section 4.1 and contributions made on his
behalf to any qualified retirement or cafeteria plan maintained by the Employers for
that Participant.
	 
	   	“Base Salary Deferral” means the amount of a Participant’s Base Salary which the
Participant elects to have withheld on a pre-tax basis from his Base Salary and
credited to his Account pursuant to Section 4.1. However, no Participant may defer
any portion of this Base Salary that is earned before the later of the Effective
Date or the first day of the Plan Year following the date that he files a properly
completed Election Form with the Committee.
	 
	   	“Beneficiary” means the person or persons designated by the Participant in
accordance with Section 7.2.
	 
	   	“Bonus Compensation” means (a) sales commissions and (b) the amount awarded to a
Participant for a Fiscal Quarter under the Employer’s Executive Bonus Plan, Cash
Profit Sharing Plan or a similar plan, including any amount the Participant could
have received under such plan in cash in lieu of deferrals pursuant to Section 4.1

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	   	and contributions made on his behalf to any qualified retirement or cafeteria plan
maintained by the Employer for the Participant.
	 
	   	“Bonus Deferral” means the amount of a Participant’s Bonus Compensation which the
Participant elects to have withheld on a pre-tax basis from his Bonus Compensation
and credited to his account pursuant to Section 4.1. However, no Participant may
defer any portion of his Bonus Compensation for any Fiscal Quarter that begins prior
to the Plan Year for which he has filed an Election Form.
	 
	   	“Code” means the Internal Revenue Code of 1986, as amended, or any successor
thereto, together with the rules, regulations and interpretations promulgated
thereunder.
	 
	   	“Committee” means the committee appointed to administer the Plan in accordance with
Article VIII.
	 
	   	“Company” means Worthington Industries, Inc. and any successor thereto.
	 
	   	“Company Subsidiary” means any entity which is (i) at least 100% owned,
directly or indirectly, by the Company, and (ii) any other entity which is at least
40% owned, directly or indirectly, by the Company and which is designated as a
Company Subsidiary for purposes of this Plan by the Committee. Indirect ownership
will be determined by applying rules issued under Treas. Reg. §1.414(c)(4).
	 
	   	“Deferral Date” means (a) with respect to amounts attributable to Base Salary and
Bonus Deferrals, the earlier of (i) the Deferral Date selected by the Participant in
the Election Form, which date must be at least one year after the end of the Fiscal
Quarter or pay period with respect to which the payment would otherwise be made, or
(ii) the date of the Participant’s death, and (b) unless the Employer selects a
different Deferral Date with respect to amounts attributable to Employer
Contributions at the time such contributions are made, the later of (i) the date of
the Participant’s Separation From Service reaches age 62 or (ii) the date of the
Participant’s Employee Separation From Service.
	 
	   	“Deferrals” means Base Salary Deferrals, Bonus Deferrals and Employer Contributors.
	 
	   	“Directors” means the Board of Directors of the Company.
	 
	   	“Effective Date” means January 1, 2005.
	 
	   	“Election Form” means the written agreement(s) or other form(s) or method(s) adopted
from time to time for the Plan pursuant to which the Participant designates his
Beneficiary; elects the amount of his Base

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	   	Salary and/or his Bonus Compensation to
be deferred into the Plan, the Deferral Date, the deemed investment and/or the form
of payment for such amounts. The form of the Election Forms may be established and
changed by the Committee at any time.
	 
	   	“Employee” means any common-law employee of an Employer.
	 
	   	“Employer” means the Company or a Company Subsidiary which has become a
participating Employer in the Plan. A Company Subsidiary shall cease to be an
Employer at such time as agreed between the Company and the Company Subsidiary or,
if earlier, the date an Employer ceases to be a Company Subsidiary.
	 
	   	“Employer Contribution” means the amount, as determined by each Employer, credited
by the Committee to the Account of a Participant as an Employer Contribution. Such
amounts may vary by individual Participant at the sole discretion of the Employer.
	 
	   	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
	 
	   	“Executive Committee” means the Executive Committee of the Directors.
	 
	   	“Fiscal Quarter” means any fiscal quarter of the Company (currently the three month
periods ending on the last day of August, November, February, and May).
	 
	   	“401(k) Plan” means the Worthington Industries Deferred Profit Sharing Plan, as in
effect from time to time.
	 
	   	“Highest Paid Employees” means those employees as defined in Section 4.16(i) of the
Internal Revenue Code, without regard to paragraph 5 thereof (generally being the
ten highest paid employees of the Company and the Company’s Subsidiaries considered
on a consolidated basis and any officers of the Company earning in excess of
$130,000 in annual compensation).
	 
	   	“IRS Regulations” means the laws and regulations adopted by Congress or issued by
the Internal Revenue Services as applicable to non-qualified deferred compensation
plans or arrangements.
	 
	   	“Participant” means each Employee who has been selected for participation the Plan
and who has become a Participant pursuant to Article III.
	 
	   	“Plan” means this Worthington Industries 2005 Non-Qualified Deferred Compensation
Plan, as amended from time to time.

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	   	“Plan Year” means the twelve consecutive month period commencing January 1 of each
year-end ending on December 31. The first Plan Year shall begin on the Effective
Date and end the following December 31.
	 
	   	“Separations From Service” means the date a Participant is no longer an employee of
either the Company or any Company Subsidiary, such determination to be made
consistent with IRS Regulations.
	 
	   	“Valuation Date” means the date the Accounts in the Plan are adjusted to reflect
earnings and losses in accordance with the hypothetical investment directions, as
set from time to time by the Committee.
	 
	2.2  	Number and Gender.
	 
	   	Wherever appropriate herein, words used in the singular shall be considered to
include the plural and words used in the plural shall be considered to include the
singular. The masculine gender, where appearing in the Plan, shall be deemed to
include the feminine gender.
	 
	2.3  	Headings.
	 
	   	The headings of Articles and Sections herein are included solely for convenience,
and if there is any conflict between such headings and the rest of the Plan, the
text shall control.

ARTICLE III - PARTICIPATION AND ELIGIBILITY

	3.1  	Participation.
	 
	   	Participants in the Plan are those Employees who are both (a) members of a select
group of highly compensated or management Employees of their Employer, as determined
by the Committee, and (b) selected by the Committee, in its sole discretion, to be
Participants. The Committee shall notify each Participant of his selection as a
Participant and the time his participation may start which shall be effective for
the Plan Year following his selection for Base Salary and Bonus Deferrals. A
Participant shall remain eligible to continue participation in the Plan until his
participation ceases as set forth below in Section 3.3.
	 
	3.2  	Commencement of Participation.
	 
	   	An Employee may commence participation in the Plan on the later of (i) the date the
Committee approves his participation or (ii) with respect to Base Salary and Bonus
Deferrals as of the beginning of the Plan Year immediately following the date he
returns to the Committee a properly completed Election Form. However, neither the
Company, the Employer, the Committee, the Plan nor any other person shall be liable
to any

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	   	person if the Committee inadvertently fails to notify him of his eligibility
to be a Participant.
	 
	3.3  	Cessation of Participation.
	 
	   	Notwithstanding any provision herein to the contrary, an individual who has become a
Participant in the Plan shall cease to be a Participant hereunder effective as of
the earlier of the date (a) he dies, (b) he otherwise ceases to be an Employee of at
least one of the Employers, (c) he ceases to be a member of his Employer’s select
group of highly compensated or management employees but remains an Employee of any
Employer, (d) designated by the Committee or (e) his Employer ceases to be a Company
Subsidiary or an Employer (but only if he is then an Employee of the affected
Employer); provided, however, that any deferral elections effective for the Plan
Year in which participation ceases shall remain effective to the extent required by
IRS Regulations. The Committee or the Company will notify a Participant who is
still an employee if he is no longer eligible to be a Participant. A person who has
ceased to actively participate in the Plan as described in this Section but who also
remains an Employee, will continue to be entitled to all rights and benefits (and
subject to all limitations) described in the Plan other than the right to make
additional Base Salary or Bonus Deferrals or to receive additional Employer
Contributions.

ARTICLE IV - DEFERRALS

	4.1  	Deferrals by Participant.
	 
	   	Any Participant who desires to defer any portion of his Bonus Compensation and/or
his Base Salary must complete and deliver an Election Form in such form as may then
be prescribed. The Election Form to defer Bonus Compensation must be filed prior to
the beginning of the Plan Year containing the first day of the applicable Fiscal
Quarter for which the Bonus Compensation would otherwise be paid, and shall be
irrevocable once such Plan Year begins. The Election Form to defer Base Salary must
be filed prior to the beginning of the Plan Year in which the Base Salary is earned
(i.e. the related services are performed), and shall be irrevocable once such Plan
Year begins. Under no
circumstances may a Participant’s Deferral Election with respect to any amounts
earned in a Plan Year be made after the beginning of that Plan Year.
	 
	   	The Committee, in its discretion, may set limits on the amount of Base Salary and/or
Bonus Compensation that may be deferred under the Plan; provided that any changes in
such limits may not apply to any Plan Year for which deferral elections have become
irrevocable.

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	4.2  	Time of Credit of Deferrals.
	 
	   	Bonus Deferrals and Base Salary Deferrals shall be credited to the Account of each
Participant at the same time as the Base Salary or Bonus Compensation would have
otherwise been paid.
	 
	4.3  	Employer Contributions.
	 
	   	The Employer may determine, in its sole discretion, to make Employer Contributions
for any Participant or Participants as it elects. The amount of any Employer
Contribution to be made for any Participant shall be determined in such manner as
his Employer shall, in its sole discretion, deems appropriate and may be a different
amount (or no amount) for each Plan Year and for each Participant. Employer
Contributions shall be in the form of a credit to the Participant’s Account.
	 
	4.4  	Timing of Employer Contributions.
	 
	   	Employer Contributions will be credited to the Participant’s Account as of the date
specified by the Employer or, if no date is specified, as soon as administratively practical
after they are declared.
	 
	   	A Participant shall be notified within a reasonable time of any Employer
Contribution to be made on his behalf under the Plan.
	 
	4.5  	Vesting.
	 
	   	A Participant shall be fully vested in his Account at all times except to the extent
that the Employer establishes a deferred vesting schedule to apply to Employer
Contributions made on or after the time the deferred vesting schedule is
established.

ARTICLE V - EARNINGS

	5.1  	Earnings and Investment.
	 
	   	Amounts credited to a Participant’s Account shall be credited with earnings and
losses based on hypothetical investment directions made
(or deemed to be made) by the Participant in accordance with investment options and
procedures adopted and amended by the Committee from time to time. Any amounts
credited to a Participant’s Account to which a Participant does not provide
investment direction (or as to which no direction is permitted) shall be credited
with earnings as if the Participant shall have elected the investment option
provided for in the Plan or determined from time to time by the Committee for cases
where no investment option is made. A Participant’s Account shall be adjusted as of
each Valuation Date to reflect investment gains and losses. The

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	   	Committee retains
the right to change, amend or eliminate investment options and procedures as it
shall deem appropriate in its sole discretion.
	 
	5.2  	Earnings after Cessation of Participation.
	 
	   	If the amount in a Participant’s Account is to be paid in installments, the amount
remaining in the Account shall continue to be credited with gains and losses based
upon the Participant’s hypothetical investment elections, but the Committee may, in
its sole discretion, limit the investment options that are available for such
Accounts.
	 
	   	If a former Participant who is no longer an Employee (or is employed by an entity
that ceases to be an Employer or a Company Subsidiary) still has an Account in the
Plan, the amount in the Account shall be continue to be credited with gains and
losses based upon the Participant’s hypothetical investment elections, but the
Committee may, in its sole discretion, limit the investment options that are
available for such Accounts.

ARTICLE VI - ACCOUNTS

	6.1  	Establishment of Accounts.
	 
	   	The Committee will establish a separate bookkeeping account for each Participant.
Such account shall be credited with the Base Salary Deferrals and Bonus Deferrals
made by the Participant pursuant to Section 4.1, and Employer Contributions made by
the Employer pursuant to Section 4.3 and credited or charged, as the case may be
with the hypothetical investment results determined pursuant to Article V and taxes
described in Section 6.4.
	 
	6.2  	Subaccounts.
	 
	   	Within each Participant’s bookkeeping account, separate subaccounts shall be
maintained to the extent necessary for the administration of the Plan. For example,
it may be necessary to maintain separate subaccounts where the Participant has
specified different Deferral Dates,
methods of payment or investment directions. Also, the Committee will separately
account for amounts credited for each Participant while the Participant was an
Employee of each Employer and will use this subaccount to account for Base Salary
and Bonus Deferrals and Employer Contributions (and attributable earnings, losses
and taxes described in Section 6.4) attributable to the Participant’s employment
with each Employer.

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	6.3  	Hypothetical Nature of Accounts.
	 
	   	The Accounts (or subaccounts) established under this Article VI shall be
hypothetical in nature and shall be maintained for bookkeeping purposes only, so
that earnings and losses on the Base Salary Deferrals, Bonus Deferrals and Employer
Contributions made to the Plan can be credited (or charged, as the case may be).
Neither the Plan nor any of the Accounts (or subaccounts) established hereunder
shall hold any actual funds or assets. The right of any person to receive one or
more payments under the Plan shall be an unsecured claim against the general assets
of the Employer for whom the Participant was an Employee when the Deferral
(including attributable earnings and losses) was credited. Any liability of the
Company, any Employer, the Committee or any other person to any Participant, former
Participant, or Beneficiary with respect to a right to payment shall be based solely
upon contractual obligations created by the Plan. Neither the Employers, their
directors, officers or employees, nor any other person shall be deemed to be a
trustee of or fiduciary with respect to any amounts to be paid under the Plan.
Nothing contained in the Plan, and no action taken pursuant to its provisions, shall
create or be construed to create a trust of any kind, or a fiduciary relationship,
between any Employer and a Participant, former Participant, Beneficiary, or any
other Person.
	 
	6.4  	Reduction for Taxes
	 
	   	Any employment or other taxes (such as wage taxes) that are imposed on Base Salary
or Bonus Deferrals or Employer Contributions when those amounts are credited to a
Participant’s Account will be assessed against the affected Participant’s other
compensation or deducted from the Participant’s Account to the extent his other
compensation is not sufficient to pay those taxes.

ARTICLE VII - PAYMENT OF ACCOUNT

	7.1  	Distribution After Deferral Date

	 	(a)  	Time of Distribution.

	   	Distribution of that portion of a Participant’s Account which is not previously
distributed under the terms of the Plan shall be made as soon as practicable
following the Deferral Date for such amounts, and in any event no later than January
31 of the year following the Deferral Date.
	 
	   	The distribution to any person who qualifies as a Highest Paid Employee, which is
triggered due to a Separation From Service, shall not begin earlier than the date
which is six months after the date of the Separation From Service (or, if earlier,
the death of such person).

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	 	(b)  	Form of Payment or Payments.

	   	A Participant’s Account balance shall be distributed in accordance with the form of
payment elected by the Participant on the Election Form to which such amounts
relate. The form of payment with respect to amounts and the earnings credited
thereon may be in any of the following forms:

(i) A lump sum; or

(ii) Other methods that the Committee, in its sole discretion, may allow.

	   	Installment payments, if permitted, shall be paid annually during January of each
Plan Year. Each installment payment shall be determined by multiplying the Account
balance by a fraction, the numerator of which is one and the denominator of which is
the number of remaining installment payments to be made to the Participant.
Anything contained herein to the contrary notwithstanding, total distribution of a
Participant’s account must be made by the date such Participant attains age 85.

	 	(c)  	Changes to Deferral Date or Form of Payment.

	   	A Participant may change (i) the form of payment of his Account or (ii) his Deferral
Date by filing an amended Election Form; provided that any such changes to an
existing election (a) will only become effective 12 months after such amended
Election Form is filed; (b) must be made at least 12 months before the affected
distribution otherwise would be made; and (c) must provide for a deferral of at
least five years (as explained by IRS Regulations).

	7.2  	Distributions upon Death

(a) Distribution on Death. Upon the Participant’s death, the Participant’s
Account shall be distributed to the Participant’s Beneficiary in the form specified
by the Participant from among those available under Section 7.1(b).

(b) Designation of Beneficiaries.

Each Participant shall have the right to designate the beneficiary or beneficiaries
to receive payment of his benefit in the event of his death. A beneficiary
designation shall be made by executing the beneficiary designation portion of the
Election Form and filing the same with the Committee. Any such designation may be
changed at any time by execution of a new beneficiary designation portion of the
Election Form in accordance with this Section. If no such designation is on file
with the Committee at the time of death of the Participant or such designation is
not effective for any reason as determined by the Committee, then the

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designated
beneficiary or beneficiaries to receive such benefit shall be the Participant’s
surviving spouse, if any, or if none, the executor, personal representative, or
administrator of the Participant’s probate estate, or his heirs-at-law, if there is
no administration of such Participant’s probate estate.

	7.3  	Unclaimed Benefits
	 
	   	In the case of a benefit payable on behalf of such Participant, if the Committee is
unable to locate the Participant or beneficiary to whom such benefit is payable,
such benefit may be forfeited to the Employer or Employers for whom the Participant
was an Employee when the forfeited Deferral was credited to his Account, upon the
Committee’s determination. Notwithstanding the foregoing, if subsequent to any such
forfeiture the Participant or Beneficiary to whom such benefit is payable makes a
valid claim for such benefit, such forfeited benefit shall be paid by the Employer
or Employers (or restored to the Plan by the Employer (without interest from the
date it would have otherwise been paid) to whom the Account was initially forfeited.
However, neither the Company any Employer, the Committee nor any other person is
liable to restore any benefit forfeited under this Section to any other Employer.
	 
	7.4  	Hardship Withdrawals.
	 
	   	A Participant may apply in writing to the Committee for, and the Committee may
permit, a hardship withdrawal of all or any part of a Participant’s Account if the
Committee, in its sole discretion, determines that the Participant has incurred a
severe financial hardship resulting from a sudden and unexpected illness or accident of the Participant or of a dependent (as
defined in Section 152(a) of the Code) of the Participant, loss of the Participant’s
property due to casualty, or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the Participant,
as determined by the Committee, in its sole and absolute discretion. The amount
that may be withdrawn shall be limited to the smaller of (i) the amount reasonably
necessary to relieve the hardship or financial emergency upon which the request is
based (after applying other available resources as required by IRS Regulations),
plus the federal and state taxes due on the withdrawal, as determined by the
Committee or (ii) the affected Participant’s Account balance as of the most recent
Valuation Date. The Committee may require a Participant who requests a hardship
withdrawal to submit such evidence as the Committee, in its sole discretion, deems
necessary or appropriate to substantiate the circumstances upon which the request is
based. If a condition qualifies as a hardship under this Section and under the
401(k) Plan, a Participant must first withdraw all funds from this Plan before he
may file a hardship withdrawal application under the 401(k) Plan; provided, however,
that this provision sentence shall not apply to the

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	   	 extent it is inconsistent with
IRS Regulations. The above notwithstanding, no hardship withdrawal shall be
permitted unless it meets the requirements for hardship withdrawals as established
by the IRS Regulations.

ARTICLE VIII - ADMINISTRATION

	8.1  	Committee.
	 
	   	The Plan shall be administered by a Committee appointed by the Executive Committee
or the Directors. If no other Committee is so appointed, the Committee shall be the
Compensation Committee of the Directors. The Committee shall be responsible for
approving an Employer’s designation of an Employee to be a Participant and for the
general operation and administration of the Plan and for carrying out the provisions
thereof. The Committee may delegate to others certain aspects of the management and
operational responsibilities of the Plan including the employment of advisors and
the delegation of ministerial duties to qualified individuals.
	 
	8.2  	General Powers of Administration.
	 
	   	The Committee shall have all powers necessary or appropriate to enable it to carry
out its administrative duties. Not in limitation, but in application of the
foregoing, the Committee shall have the duty and power to interpret the Plan and
determine all questions that may arise hereunder as to the status and rights of
Employees, Participants, and Beneficiaries. The
Committee may exercise the powers hereby granted in its sole and absolute
discretion. No member of the Committee shall be personally liable for any actions
taken by the Committee unless the member’s action involves gross negligence or
willful misconduct.
	 
	8.3  	Indemnification of Committee.
	 
	   	The Company and all Employers shall indemnify the members of the Committee against
any and all claims, losses, damages, expenses, including attorney’s fees, incurred
by them, and any liability, including any amounts paid in settlement with their
approval, arising from their action or failure to act, except when the same is
judicially determined to be attributable to their gross negligence or willful
misconduct.
	 
	8.4  	Costs of Administration.
	 
	   	The costs of administering the Plan shall be borne by each Employer (in proportion
to number of their Employees who are Participants) unless and until a Participant
receives written notice of the imposition of administrative costs, with such costs
to begin with the next Plan Year.

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	   	Such costs may only be imposed prospectively and
not retroactively for prior Plan Years. Such costs, if imposed, shall be charged
against a Participant’s Account and shall be uniform for all Plan Participants.
Such costs shall not exceed standard fees for similarly designed non-qualified plans
under administration by high quality third party administrators.

ARTICLE IX - DETERMINATION OF BENEFITS, CLAIMS

PROCEDURE AND ADMINISTRATION

	9.1  	Claims
	 
	   	A person who believes that he is being denied a benefit to which he is entitled
under the Plan (hereinafter referred to as a “Claimant”) may file a written request
for such benefit with the Committee, setting forth his claim. The request must be
addressed to the Committee at the Company’s then principal place of business.
	 
	9.2  	Claim Decision.
	 
	   	Upon receipt of a claim, the Committee shall advise the Claimant that a reply will
be forthcoming within ninety (90) days and shall, in fact, deliver such reply within
such period. The Committee may, however, extend the reply period for an additional
ninety (90) days for reasonable cause.
	 
	   	If the claim is denied in whole or in part, the Committee shall adopt a written
opinion, using language calculated to be understood by the Claimant, setting forth:

	 	(1)  	The specific reason or reasons for such denial;
	 
	 	(2)  	The specific reference to pertinent provisions of the Plan on which
such denial is based;
	 
	 	(3)  	A description of any additional material or information necessary for
the Claimant to perfect his claim and an explanation why such material or such
information is necessary.
	 
	 	(4)  	Appropriate information as to the steps to be taken if the Claimant
wishes to submit the claim for review; and
	 
	 	(5)  	The time limits for requesting a review under Section 9.3 and for
review under Section 9.4 hereof.

	9.3  	Request for Review.
	 
	   	Within sixty (60) days after receipt by the Claimant of the written opinion
described above, the Claimant may request in writing that the Executive

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	   	Committee
review the determination of the Committee. Such request must be addressed to the
Executive Committee, at the Company’s then principal place of business. The Claimant
or his duly authorized representative may, but need not, review the pertinent
documents and submit issues and comments in writing for consideration by the
Executive Committee. If the Claimant does not request a review of the Committee’s
determination by the Executive Committee within such sixty (60) day period, he shall
be barred and estopped from challenging the Committee’s determination.
	 
	9.4  	Review of Decision
	 
	   	Within sixty (60) days after the receipt of a request for review, the Executive
Committee will review the determination rendered by the Committee. After
considering all materials presented by the Claimant, the Executive Committee will
render a written opinion, written in a manner calculated to be understood by the
Claimant, setting forth the specific reasons for the decision and containing
specific references to the pertinent provisions of this Plan on which the decision
is based. If special circumstances require that the sixty (60) day time period be
extended, the Executive Committee will so notify the Claimant and will render the
decision as soon as possible, but no later than one hundred twenty (120) days after
receipt of the request for review.

ARTICLE X - CHANGE IN CONTROL

	10.1  	Effect of Change in Control.

(a) Notwithstanding any provision to the contrary contained herein, but subject to
the following sentence, in the event of a Change of Control that affects an
Employer, the Plan shall be terminated as to such Employer and the Employees thereof
and the Accounts of such Employees shall be paid out as of the date of such Change
of Control, but only to the extent of the portion of the Account attributable to
Deferrals made while an Employee of that Employer. The provisions of this Section
10.1 shall not apply to any Change in Control when expressly provided otherwise by a
three-fourths vote of the Whole Board of the affected Employer, but only if a
majority of the members of the Board of Directors then in office and acting upon
such matters shall be Continuing Directors.

(b) The liability to pay any benefit that is not distributed in connection with a
Change in Control (or to pay other costs and expenses reference in Section 1.7) will
remain the liability of the Employer incurring the Change in Control.

41

 

10.2 Definitions: For purposes of this Article X, the following terms shall have the meanings set
forth below:

(a) A “Change in Control” with respect to the Company means when either (i) a Person
or Group (other than an Excluded Person) acquires ownership of stock of the Company
that, together with stock held by such Person or Group, constitutes more than 50% of
the total fair market value or total voting power of the stock of the Company; or
(ii) any Person or Group (other than an Excluded Person) acquires ownership of stock
of the Company possessing 35% or more of the total voting power of the stock of the
Company; or (iii) a majority of the members of the Board of Directors of the Company
is replaced during any twelve-month period by Directors whose appointment or
election is not endorsed by a majority of the members of the Company’s Board of
Directors prior to the date that such appointments or elections are made; or (iv)
any Person or Group (other than an Excluded Person) acquires (or has acquired)
during the twelve-month period ending on the date of the most recent acquisition by
such Person or Group, assets from the Company that have a total Gross Market Value
equal to or more than 40% of the total Gross Market Value of all of the assets of
the Company immediately prior to such acquisition or acquisitions. A “Change in
Control” with respect to an Employer means (i) a Change of Control with respect to
the Company or (ii) such Employer (other than the Company) is no longer a Company
Subsidiary.

The above notwithstanding, no event shall be considered a Change of Control if it
would not be a Change of Control Event as defined in IRS Regulations.

(b) “Continuing Director” means any person who was a member of the Board of
Directors on the Effective Date of the Plan or thereafter elected by the
shareholders or appointed by the Company’s Board of Directors prior to the date as
of which the Acquiring Person became a Substantial Shareholder (as such term is
defined in Article Seventh of the Company’s Amended Articles of Incorporation) or, a
person designated (before his initial election or employment as a director) as a
Continuing Director by three-fourths of the Employer’s Whole Board, but only if a
majority of the Whole Board shall then consist of Continuing Directors.

(c) “Excluded Person” means (i) the Company or any wholly-owned Company Subsidiary,
(ii) any employee benefit plan of the Company or a wholly-owned Company Subsidiary
or any trustee of or fiduciary with respect to any such plan when acting in such
capacity, or (ii) any Person who, on the Effective Date of the Plan, is an Affiliate
of the Company and beneficially owning in excess of ten percent (10%) of the
outstanding shares of the Company and the respective successors, executors, legal
representatives, heirs and legal assigns of such person).

42

 

(d) “Gross Market Value” means the value of the assets of the Company or the value
of the assets being disposed of, determined without regard to any liabilities
associated with such assets.

(e) “Group” shall mean more than one Person acting as a “group” as interpreted in
accordance with IRS Regulation.

(f) “Person” means any individual, firm, corporation, or other entity.

(g) “Whole Board” means the total number of directors which the Company would have
if there were no vacancies.

10.3 Consistency with IRS Regulations: In all cases, the provisions of and definitions used in
this Section 10 shall be interpreted in accordance with the provisions of the IRS Regulations.

ARTICLE XI - MISCELLANEOUS

	11.1  	Plan Not a Contract of Employment.
	 
	   	The adoption and maintenance of the Plan shall not be deemed to be a contract of
employment between any Employer and any person or to be a commitment for the
employment of any person. Nothing herein contained
shall be deemed to give any person the right to be retained in the employ of any
Employer or to restrict the right of any Employer to discharge any person at any
time; nor shall the Plan be deemed to give any Employer the right to require any
person to remain in the employ of any Employer or to restrict any person’s right to
terminate his employment at any time.
	 
	11.2  	Non-Assignability of Benefits.
	 
	   	No Participant, Beneficiary or distributee of benefits under the Plan shall have any
power or right to transfer, assign, anticipate, hypothecate or otherwise encumber
any part or all of the amounts payable hereunder, which are expressly declared to be
unassignable and non-transferable. Any such attempted assignment or transfer shall
be void. No amount payable hereunder shall, prior to actual payment hereof, be
subject to seizure by any creditor of any such Participant, Beneficiary or other
distributee for the payment of any debt, judgment, or other obligation, by a
proceeding at law or in equity, nor transferable by operation of law in the event of
the bankruptcy, insolvency or death of such Participant, Beneficiary or other
distributee hereunder. Except as otherwise required by law, no accelerated
distribution will be made with respect to a divorce, dissolution or other division
of property rights.

43

 

	11.3  	Withholding.
	 
	   	All deferrals and payments provided for hereunder shall be subject to applicable
withholding and other deductions as shall be required of the Employers under any
applicable local, state or federal law.
	 
	11.4  	Amendment and Termination.
	 
	   	The Directors may from time to time, in its discretion, amend, in whole or in part,
any or all of the provisions of the Plan; provided, however, that no amendment may
be made which would impair the rights of a Participant with respect to amounts
already allocated to his Account (unless the affected Participant consents in
writing to the application of that amendment), but this provision shall not be read
to restrict the authority of the Directors or the Executive Committee or the
Committee to change or limit investment options. The Directors or the Executive
Committee may terminate the Plan at any time, provided, however, that no termination
shall in and of itself cause an acceleration of the distribution of Accounts under
the Plan, except as may otherwise be provided specifically in the action terminating
the Plan, which action shall take into consideration IRS Regulations. Any such
amendment to or termination of the Plan shall be in writing and signed by a member
of the Executive Committee or an Officer of the Company and will bind each Employer
without separate action.
	 
	11.5  	No Trust Created.
	 
	   	Nothing contained in this Plan, and no action taken pursuant to its provisions by
either party hereto, shall create, nor be construed to create, a trust of any kind
or a fiduciary relationship between the Company or any Employer and the Participant,
his Beneficiary, or any other person. The Company may establish a “grantor trust”
(so-called “Rabbi Trust”) which is within the jurisdiction of the courts of the
United States, and is permitted by IRS Regulation, to aid in meeting the obligations
created under this Plan, but the Company intends that the assets of any such trust
will at all times remain subject to the claims of the Employers’ general creditors
(to the extent of the amounts credited for a Participant while he was an Employee of
that Employer), and that the existence of any such trust will not alter the
characterization of the Plan as “unfunded” for purposes of ERISA, and will not be
construed to provide income to any Participant prior to actual payment under this
Plan.
	 
	11.6  	Unsecured General Creditor Status of Employee.
	 
	   	The payments to Participant, his Beneficiary or any other distributee
hereunder shall be made from assets which shall continue, for all purposes, to be a
part of the general, unrestricted assets of the Employer

44

 

	   	for whom the Participant
was an Employee when the Deferral to which the claim relates was credited to the
claiming Participant’s Account; no person shall have or acquire any interest in any
such assets by virtue of the provisions of this Plan. The obligation hereunder
shall be an unfunded and unsecured promise to pay money in the future. To the
extent that the Participant, a Beneficiary, or other distributee acquires a right to
receive payments from the Plan under the provisions hereof, such right shall be no
greater than the right of any unsecured general creditor of the Employer for whom
the Participant was an Employee when the Deferral to which the claim relates was
credited to the claiming Participant’s Account; no such person shall have nor
require any legal or equitable right, interest or claim in or to any property or
assets of any Employer.
	 
	   	In the event that, in its discretion, the Employer purchases an insurance policy or
policies insuring the life of the Participant (or any other property) to allow the
Employer to recover the cost of providing the benefits, in whole, or in part,
hereunder, neither the Participant, his Beneficiary or other distributee shall have
nor acquire any rights whatsoever therein or in the proceeds therefrom. The
Employer shall be the sole owner and beneficiary of any such policy or policies and,
as such, shall possess and may exercise all incidents of ownership therein. Except
to the extent the Company may establish a Rabbi Trust as described in Section 11.5,
no such policy, policies or other property shall be held in any trust for a
Participant, Beneficiary or other distributee or held as collateral security for any
obligation hereunder. The existence of any such Rabbi Trust does not give a
Participant, Beneficiary or other distributee, any interest, direct or beneficial,
in any policy, policies or other property held in such a trust. A Participant’s
participation in the underwriting or other steps necessary to acquire such policy or
policies may be required by the Committee and, if required, shall not be a
suggestion of any beneficial interest in such policy or policies to a Participant.
	 
	11.7  	Severability.
	 
	   	If any provision of this Plan shall be held illegal for any
reason, said illegality or invalidity shall not affect the remaining provisions
hereof; instead, each provision shall be fully severable and the Plan shall be
constructed and enforced as if said illegal or invalid provision had never been
included herein.
	 
	11.8  	Binding Effect.
	 
	   	This Plan shall be binding on each Participant and his heirs and legal
representatives and on the Company and each Employer and its successors and assigns.

45

 

	11.9  	Governing Laws.
	 
	   	All provisions of the Plan shall be construed in accordance with the laws of Ohio,
except to the extent preempted by federal law.
	 
	11.10  	Entire Agreement.
	 
	   	This document and any amendments contain all the terms and provisions of the Plan
and shall constitute the entire Plan, any other alleged terms or provisions being of
no effect.

WORTHINGTON INDUSTRIES, INC.

46Exhibit 10.2

 

Exhibit 10.2

WORTHINGTON INDUSTRIES, INC.

2005 DEFERRED COMPENSATION PLAN FOR DIRECTORS

Section 1. Purpose

Worthington Industries, Inc. has established this deferred compensation plan to provide the
Directors of Worthington Industries, Inc. with the option to defer the payment of their Directors’
Fees. The Plan shall become effective as to Directors’ Fees which are paid with respect to fees
earned on or after January 1, 2005.

Section 2. Definitions.

2.1. “Beneficiary” shall mean the person designated by a Participant in accordance with the Plan to
receive payment of any remaining balance in his Account in the event of the Participant’s death.

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

2.3. “Committee” shall mean the committee appointed by the Board of Directors of the Company to
administer the Plan. If no committee is specifically named by the Board of Directors to administer
the Plan, the “Committee” shall mean the Compensation Committee of the Board of Directors of the
Company.

2.4. “Company” shall mean Worthington Industries, Inc., an Ohio corporation, its corporate
successors and the surviving corporation resulting from any merger or acquisition of Worthington
Industries, Inc. with or by any corporation or corporations.

2.5. “Date of Deferral” shall mean the date to which payment of the Participant’s Directors Fees is
deferred in accordance with this Plan. Subject to the terms of the following sentence, the Date of
Deferral shall be the earlier of (i) the date selected by the Participant in the Election Form,
which date must be at least one year after the end of the Year with respect to which the payment
would otherwise be made, or (ii) the date of the Participant’s death. In no event shall a
Participant’s Date of Deferral extend beyond the later of his 70th birthday or the date he ceases
to be a Director. Unless the Participant elects a different Date of Deferral, his Date of Deferral
shall be the date he ceases to be a Director.

47

 

2.6. “Account” shall mean the bookkeeping account on which the amount of Directors Fees that is
deferred by a Participant shall be recorded and credited with investment gains or losses in
accordance with the Plan.

2.7. “Director” shall mean any member of the Board of Directors of the Company who is not an
Employee of the Company.

2.8. “Directors Fees” shall mean fees owed to the Directors by the Company for their services as
Directors including retainers, board meeting fees, committee meeting fees and other similar fees,
if any.

2.9. “Effective Date” means January 1, 2005.

2.10. “Election Form” means the written form or other method pursuant to which the Participant
elects the amount of his Directors Fees to be deferred into the Plan, the Date of Deferral, the
deemed investment and/or the form of payment for such amounts.

2.11. “401(k) Plan” shall mean the Worthington Industries Deferred Profit Sharing Plan, as in
effect from time to time.

2.12. “IRS Regulations” shall mean the laws and regulations adopted by Congress or issued by the
Internal Revenue Services as applicable to non-qualified deferred compensation plans or
arrangements

2.13. “Participant” shall mean any Director who has elected to defer payment of all or any portion
of his Directors Fees in accordance with the Plan and who still has an Account under the Plan.

2.14. “Plan” shall mean the “Worthington Industries, Inc. 2005 Deferred Compensation Plan for
Directors” as set forth herein, as the same may be amended from time to time.

2.15. “Plan Year” shall mean the calendar year.

2.16. “Quarter” shall mean any fiscal quarter of the Company, currently the three month periods
ending the last day of August, November, February, and May.

48

 

2.17. “Valuation Date” shall mean the date the Accounts in the Plan are adjusted to reflect
earnings and losses in accordance with the hypothetical investment directions, as set from time to
time by the Committee

Section 3. Administration

3.1. Power of the Committee.

The Plan shall be administered by the Committee. The Committee shall have full power to construe
and interpret the Plan, to establish and amend rules and regulations for administration of the
Plan, and to take any and all actions necessary or desirable to effectuate or carry out the Plan.

The Committee may exercise the powers hereby granted in its sole and absolute discretion. No
member of the Committee shall be personally liable for any actions taken by the Committee unless
the member’s action involves willful misconduct. The Committee may delegate to others certain
aspects of the management and operational responsibilities of the Plan including the employment of
advisors and the delegation of ministerial duties to qualified individuals.

3.2. Actions Final.

All actions taken by the Committee under or with respect to the Plan shall be final and binding on
all persons. No member of the Committee shall be liable for any action taken or determination made
in good faith.

3.3. Books and Records

The books and records to be maintained for the purpose of the Plan shall be maintained by the
officers and employees of the Company at the Company’s expense and subject to the supervision and
control of the Committee. The Company may hire a third party to maintain all or a part of the
Plan’s books and records.

3.4. Action by the Committee

The Committee shall act by a majority of its members at the time in office, and such action may be
taken either by vote at a meeting or in writing. If a Participant is serving as a member of the
Committee, he shall not be entitled to vote on matters specifically relating to his rights under
the

49

 

Plan; provided, however, that this provision shall not prevent such person from voting on matters
which, although they may affect his rights, relate to Participants in general.

3.5 Indemnification of Committee

The Company shall indemnify the members of the Committee against any and all claims, losses,
damages, expenses, including attorney’s fees, incurred by them, and any liability, including any
amounts paid in settlement with their approval, arising from their action or failure to act, except
when the same is judicially determined to be attributable to their or willful misconduct.

Section 4. Eligibility and Participation

4.1 Eligibility

Each Director is eligible to become a Participant in the Plan. Participants are those Directors
who elect to defer Directors Fees under the Plan. A Director’s eligibility shall cease when he
dies or otherwise ceases to be a Director of the Company.

4.2 Election to Defer

Any Director who desires to defer the payment of any portion of his Fees must complete and deliver
an Election Form (in substantially the form approved by the Committee from time to time) prior to
the first day of the Plan Year in which the applicable fee is earned. (Retainers shall be earned
commencing the first day of the fiscal year, the fiscal quarter, or other period as to which they
relate. Meeting fees shall be earned by attendance at the meeting.) Each Election to defer
Directors Fees is irrevocable on or after the beginning of the Plan Year to which it relates (i.e.
the Plan Year in which it is commenced to be earned), but may be revoked or changed prior to the
beginning of each subsequent Plan Year.

4.3 The Election Form

A Participant shall designate on an Election Form (i) the portion of his Directors Fees he desires
to defer, (ii) the Date of Deferral, and (iii) the method of payment of his Account. Payment of the
Account shall be made in accordance with Section 6. The Participant shall also designate the
Investment Option selected for his Account on an Election Form.

50

 

4.4 Sub-Accounts

In the event a Participant makes different elections as to the method of payment or as to the time
for commencement of payments with respect to Directors Fees deferred for different fees, for
purposes of determining the amounts to be paid under each election, the Participant shall be
treated as if he had a separate Sub-Account for Directors Fees deferred pursuant to the differing
elections.

Section 5. Deferred Compensation Account

5.1 Crediting Fees.

The Directors Fees which a Participant elects to defer shall be treated as if they were set-aside
in an Account on the date the Directors Fees would otherwise have been paid to the Participant.

5.2 Investment Options – General.

Until changed by amendment, the investment options available under the Plan shall be those
available under the 401(k) Plan as in effect from time to time

5.3 Selection of Investment Option.

The Participant shall select the Investment Option for his Account in an Election Form. The
Participant may change the investment option for his Account as of the time permitted under the
401(k) Plan for the same investment option.

Section 6 Payment of Deferred Compensation.

6.1 General.

Subject to the provisions of paragraph (b) of this Section, the amount of the Participant’s
Deferred Compensation Account shall be paid to the Participant, within a reasonable time after the
Participant’s Date of Deferral, in a lump sum or in a number of approximately equal annual
installments (not more than 12), as designated by the Participant in his Election Form. A
participant may, subject to approval by the Committee, change the designation of the method of
payment or his Date of Deferral by filing an amended Election Form; provided that any such changes
to an existing election (a) will only become effective 12 months after such Election Form is filed;
(b) must be made at least 12 months before the affected distribution would

51

 

otherwise have been made; and (c) must provide for a deferral of at least five years (as explained
by IRS Regulations). The above notwithstanding, the Committee may place such other restrictions on
changes to a Participant’s method of payment and Date of Deferral as it deems appropriate.

6.2 Death.

(a) In the event of the death of a Participant, the amount of the Account shall be paid to
his Beneficiary, within a reasonable time after the Participant’s death.

(b) Each Participant may name one or more Beneficiaries and may also name one or more
contingent Beneficiaries by making a written designation in form acceptable to the
Committee. A Participant’s Beneficiary designation may be changed at any time prior to his
death by execution and delivery of a new Beneficiary designation form. The Beneficiary
designation on file with the Company at the time of the Participant’s death which bears the
latest date shall govern.

(c) Payments to a Beneficiary shall be made in a lump sum or in a number of approximately
equal annual installments (not more than 12) as designated by the Participant in his
Election Agreement. In the case of the Beneficiary of a Participant who is receiving
installment payments at the time of his death, the number of annual installments may not
exceed the annual installments remaining to be paid to the Participant.

(d) If no Beneficiary has been designated or if no Beneficiary survives the Participant, the
amount in the Deferred Compensation Account shall be paid in a lump sum to the Participant’s
estate.

(e) If the Beneficiary dies after the death of the Participant, any amount otherwise payable
to the Beneficiary shall be paid in a lump sum to the Beneficiary’s estate.

6.3 Hardship.

Upon the application of a Participant in the event of financial hardship resulting from a need to
make extraordinary or emergency expenditures (all to be interpreted in accordance with IRS

52

 

Regulations), the Committee may, in its sole discretion, cause the distribution to such Participant
of an amount not exceeding the requirements of such Participant for such extraordinary or emergency
expenditures (after applying other available resources as required by IRS Regulations). The
Committee shall require such proper proof of financial hardship and such evidence of the
requirements of a Participant for extraordinary or emergency expenditures as it may deem
appropriate and the Committee’s determination of financial hardship and of the requirements of a
Participant for extraordinary or emergency expenditures shall be conclusive.

6.4 Effect of Change in Control.

(a) Notwithstanding any provision to the contrary contained herein, but subject to
the following sentence, in the event of a Change of Control, the Plan shall be
terminated and each Participant’s Account shall be paid out as of such date in a
lump sum. The provisions of this Section 6.4 shall not apply to any Change in
Control when expressly provided otherwise by a three-fourths vote of the Whole
Board, but only if a majority of the members of the Board of Directors then in
office and acting upon such matter shall be Continuing Directors.

(b) For purposes of this Section 6.4, the following terms shall have the meanings
set forth below:

	 	i.  	A “Change in Control” means with respect to the Company
when either (a) a Person or Group (other than an Excluded Person)
acquires ownership of stock of the Company that, together with stock
held by such Person or Group, constitutes more than 50% of the total
fair market value or total voting power of the stock of the Company; or
(b) any Person or Group (other than an Excluded Person) acquires
ownership of stock of the Company possessing 35% or more of the total
voting power of the stock of the Company; or (c) a majority of the
members of the Board of

53

 

	 	   	Directors of the Company is replaced during any twelve-month period
by Directors whose appointment or election is not endorsed by a
majority of the members of the Company’s Board of Directors prior to
the date that such appointments or elections are made; or (d) any
Person or Group (other than an Excluded Person) acquires (or has
acquired) during the twelve-month period ending on the date of the
most recent acquisition by such Person or Group, assets from the
Company that have a total Gross Market Value equal to or more than
40% of the total Gross Market Value of all of the assets of the
Company immediately prior to such acquisition or acquisitions.
	 
	 	   	The above notwithstanding, no event shall be considered a Change of
Control if it would not be a Change of Control Event as defined in
IRS Regulations.
	 
	 	ii.  	“Continuing Director” means any person who was a member
of the Board of Directors on the Effective Date of the Plan or
thereafter elected by the shareholders or appointed by the Company’s
Board of Directors prior to the date as of which the Acquiring Person
became a Substantial Shareholder (as such term is defined in Article
Seventh of the Company’s Amended Articles of Incorporation) or, a
person designated (before his initial election or employment as a
director) as a Continuing Director by three-fourths of the Whole Board,
but only if a majority of the Whole Board shall then consist of
Continuing Directors.
	 
	 	iii.  	“Excluded Person” means (a) the Company or any
wholly-owned Company Subsidiary, (b) any employee benefit plan of the
Company or a wholly-owned Company Subsidiary or any trustee of or
fiduciary with respect to any such plan when acting in such capacity,
or (c) any Person who, on the Effective Date of the Plan,

54

 

	 	   	is an Affiliate of the Company and beneficially owning in excess of
ten percent (10%) of the outstanding shares of the Company and the
respective successors, executors, legal representatives, heirs and
legal assigns of such person).
	 
	 	iv.  	“Gross Market Value” means the value of the assets of
the Company or the value of the assets being disposed of, determined
without regard to any liabilities associated with such assets.
	 
	 	v.  	“Group” shall mean more than one Person acting as a
“group” as interpreted in accordance with IRS Regulation.
	 
	 	vi.  	“Person” means any individual, firm, corporation, or
other entity.
	 
	 	vii.  	“Whole Board” means the total number of directors which
the Company would have if there were no vacancies.

(c) In all cases, the provisions of and definitions used in this Section 6.4 shall
be interpreted in accordance with the provisions of the IRS Regulations.

Section 7. Amendments.

The Board of Directors of the Company may from time to time amend, suspend or terminate any or all
of the provisions of this Plan; provided that no such amendment, suspension, or termination shall
adversely affect in any material respect any right of any Participant to receive any amount payable
pursuant to the Plan (unless the affected Participant consents in writing to the application of
that amendment) but this provision shall not restrict the authority of the Board of Directors to
change or limit investment options. The Board of Directors may terminate the Plan at any time,
provided, however, that no termination shall in and of itself cause an acceleration of the
distribution of Accounts under the Plan, except as may otherwise be provided specifically in the
action terminating the Plan, which action shall take into consideration IRS Regulations. Any such
amendment to or termination of the Plan shall be in writing.

55

 

Section 8. Miscellaneous Provisions

8.1 Non-Assignability of Benefits.

No Participant, Beneficiary or distributee of benefits under the Plan shall have any power or right
to transfer, assign, anticipate, hypothecate or otherwise encumber any part or all of the amounts
payable hereunder, which are expressly declared to be unassignable and non-transferable. Any such
attempted assignment or transfer shall be void. No amount payable hereunder shall, prior to actual
payment hereof, be subject to seizure by any creditor of any such Participant, Beneficiary or other
distributee for the payment of any debt, judgment, or other obligation, by a proceeding at law or
in equity, nor transferable by operation of law in the event of the bankruptcy, insolvency or death
of such Participant, Beneficiary or other distributee hereunder.

8.2 Withholding.

All deferrals and payments provided for hereunder shall be subject to applicable withholding and
other deductions as shall be required of the Company under any applicable local, state or federal
law.

8.3 No Trust Created.

Nothing contained in this Plan, and no action taken pursuant to its provisions by either party
hereto, shall create, nor be construed to create, a trust of any kind or a fiduciary relationship
between the Company and the Participant, his Beneficiary, or any other person. The Company may
establish a “grantor trust” (so-called “Rabbi Trust”) which is within the jurisdiction of the
courts of the United States and is permitted by IRS Regulation to aid in meeting the obligations
created under this Plan, but the Company intends that the assets of any such trust will at all
times remain subject to the claims of the Employers’ general creditors (to the extent of the
amounts credited for a Participant while he was an Employee of that Employer), and that the
existence of any such trust will not alter the characterization of the Plan as “unfunded” for
purposes of ERISA, and will not be construed to provide income to any Participant prior to actual
payment under this Plan.

56

 

8.4 Unsecured General Creditor Status of Employee.

The payments to Participant, his Beneficiary or any other distributee hereunder shall be made from
assets which shall continue, for all purposes, to be a part of the general, unrestricted assets of
the Company; no person shall have or acquire any interest in any such assets by virtue of the
provisions of this Plan. The obligation hereunder shall be an unfunded and unsecured promise to
pay money in the future. To the extent that the Participant, a Beneficiary, or other distributee
acquires a right to receive payments from the Plan under the provisions hereof, such right shall be
no greater than the right of any unsecured general creditor of the Company. No such person shall
have nor require any legal or equitable right, interest or claim in or to any property or assets of
any Company.

In the event that, in its discretion, the Company purchases an insurance policy or policies
insuring the life of the Participant(or any other property) to allow the Company to recover the
cost of providing the benefits, in whole, or in part, hereunder, neither the Participant, his
Beneficiary or other distributee shall have nor acquire any rights whatsoever therein or in the
proceeds therefrom. The Company shall be the sole owner and beneficiary of any such policy or
policies and, as such, shall possess and may exercise all incidents of ownership therein. Except
to the extent the Company may establish a Rabbi Trust as described in Section 8.3, no such policy,
policies or other property shall be held in any trust for a Participant, Beneficiary or other
distributee or held as collateral security for any obligation hereunder. The existence of any such
Rabbi Trust does not give a Participant, Beneficiary or other distributee, any interest, direct or
beneficial, in any policy, policies or other property held in such a trust. A Participant’s
participation in the underwriting or other steps necessary to acquire such policy or policies may
be required by the Committee and, if required, shall not be a suggestion of any beneficial interest
in such policy or policies to a Participant.

8.5 Binding Effect.

This Plan shall be binding one each Participant and his heirs and legal representatives and on the
Company and its successors and assigns.

57

 

8.6 Governing Laws.

All provisions of the Plan shall be construed in accordance with the laws of Ohio, except to the
extent pre-empted by federal law.

	 	 	 	 	 
	 	 	WORTHINGTON INDUSTRIES, INC.

58

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