Document:

Unassociated Document

    MODIFICATION
      AGREEMENT

    

    This
      Modification Agreement is made this 30th day of June, 2006, by and between
      Nayna
      Networks, Inc. a Nevada corporation, (the “Borrower”)
      and
      Ignite Ventures II, LP, (the “Lender”).

    

    RECITALS

    

    WHEREAS,
      the Borrower issued that certain Convertible Promissory Note, as amended (the
      “Note”),
      in
      the original principal amount of $80,000, dated October 19, 2005, in favor
      of
      the Lender;

    

    WHEREAS,
      both the Borrower and the Lender desire to modify the terms of the Note to
      reflect their mutual understanding and to extend the maturity date, each as
      set
      forth herein.

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and adequacy of
      which are hereby acknowledged, the Borrower and the Lender agree to modify
      the
      terms of the Note as follows:

    

    AGREEMENT

    

    1. The
      first
      paragraph of the Note, which begins, “Nayna Networks, Inc., a Nevada...” will be
      deleted and replaced in its entirety by the following paragraph:

    

    “Nayna
      Networks, Inc., a Nevada corporation (the "Company"), for value received,
      promises to pay to Ignite
      Ventures II LP or
      registered assigns (“Holder”) the sum of Eighty Thousand
      dollars
      ($80,000), together
      with
      interest thereon at the rate of 8% per annum on the unpaid balance. Outstanding
      principal together with interest is due Dec 31, 2006. 

    

    2. Except
      as
      amended herein, all terms and conditions of the Note shall remain in full force
      and effect, unmodified in any way.

    

    4. This
      Agreement shall be governed by and construed under the laws of the State of
      California without respect to the principles of the choice of law or the
      conflicts of laws.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Note Amendment Agreement
      as of the date set forth above.

    
      	 	 	 
	 	
              BORROWER:

            
	 	 
	 	
              NAYNA
                NETWORKS, INC.

            
	 
 	 
 	 
 
	
            	By:  	
               /s/
                Naveen Bisht

            
	 	
              

              Naveen
                S. Bisht, President & CEO

            
	 	
            

      	 	 	 
	 	
              LENDER:

            
	 	 
	 	
              Ignite
                Ventures II, LP

            
	 
 	 
 	 
 
	
            	By:  	
               /s/
                Nobuo Mii

            
	 	
              
Name:

	 	Title:
              

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    MODIFICATION
      AGREEMENT

    

    This
      Modification Agreement is made this 30th day of June, 2006, by and between
      Nayna
      Networks, Inc. a Nevada corporation, (the “Borrower”)
      and
      Ignite Ventures II, LP, (the “Lender”).

    

    RECITALS

    

    WHEREAS,
      the Borrower issued that certain Convertible Promissory Note, as amended (the
      “Note”),
      in
      the original principal amount of $125,000, dated August 4, 2005, in favor of
      the
      Lender;

    

    WHEREAS,
      both the Borrower and the Lender desire to modify the terms of the Note to
      reflect their mutual understanding and to extend the maturity date, each as
      set
      forth herein.

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and adequacy of
      which are hereby acknowledged, the Borrower and the Lender agree to modify
      the
      terms of the Note as follows:

    

    AGREEMENT

    

    1. The
      first
      paragraph of the Note, which begins, “Nayna Networks, Inc., a Nevada...” will be
      deleted and replaced in its entirety by the following paragraph:

    

    “Nayna
      Networks, Inc., a Nevada corporation (the "Company"), for value received,
      promises to pay to Ignite
      Ventures II LP or
      registered assigns (“Holder”) the sum of One Hundred
      Twenty
      Five Thousand dollars ($125,000), together
      with
      interest thereon at the rate of 8% per annum on the unpaid balance. Outstanding
      principal together with interest is due Dec 31, 2006. 

    

    2. Except
      as
      amended herein, all terms and conditions of the Note shall remain in full force
      and effect, unmodified in any way.

    

    4. This
      Agreement shall be governed by and construed under the laws of the State of
      California without respect to the principles of the choice of law or the
      conflicts of laws.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Note Amendment Agreement
      as of the date set forth above.

    
      	 	 	 
	 	
              BORROWER:

            
	 	 
	 	
              NAYNA
                NETWORKS, INC.

            
	 
 	 
 	 
 
	
            	By:  	 /s/
              Naveen Bisht
	 	
              

              Naveen
                S. Bisht, President & CEO

            
	 	
            

    

    
      	 	 	 
	 	
              LENDER:

            
	 	 
	 	
              Ignite
                Ventures II, LP

            
	 
 	 
 	 
 
	
            	By:  	
               /s/
                Nobuo Mii

            
	 	
              
Name:

	 	Title:Exhibit
      10.1

    

    

    

    

    H.B.
      FULLER COMPANY

    KEY
      EMPLOYEE DEFERRED COMPENSATION PLAN

    (2005
      Amendment and Restatement)

     

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    H.B.
      FULLER COMPANY

    KEY
      EMPLOYEE DEFERRED COMPENSATION PLAN

    (2005
      Amendment and Restatement)

    

     

    TABLE
      OF CONTENTS

     

    
      	 	 	 	 	
              Page

            
	 	 	 
	
              SECTION
                1.

            	
              INTRODUCTION
                AND DEFINITIONS

            	
              1

            
	 	 	 	 	 
	 	
              1.1.

            	
              Introduction

            	 	 
	 	 	
              1.1.1.

            	
              Rules
                That Apply To Pre-2005 Credits

            	 
	 	 	
              1.1.2.

            	
              Rules
                That Apply To 2005 and 2006 Credits

            	 
	 	 	
              1.1.3.

            	
              Rules
                That Apply To Post-2006 Credits

            	 
	 	
              1.2.

            	
              Definitions

            	 	 
	 	 	
              1.2.1.

            	
              Account
                or Accounts

            	 
	 	 	 	
              (a)      Deferred
                Compensation Account

            	 
	 	 	 	
              (b)      Company
                Stock Account

            	 
	 	 	
              1.2.2.

            	
              Affiliate

            	 
	 	 	
              1.2.3.

            	
              Beneficiary

            	 
	 	 	
              1.2.4.

            	
              Change
                in Control

            	 
	 	 	
              1.2.5.

            	
              Code

            	 
	 	 	
              1.2.6.

            	
              Committee

            	 
	 	 	
              1.2.7.

            	
              Common
                Stock

            	 
	 	 	
              1.2.8.

            	
              Company

            	 
	 	 	
              1.2.9.

            	
              Disability

            	 
	 	 	
              1.2.10.

            	
              Distribution
                Event

            	 
	 	 	
              1.2.11.

            	
              Effective
                Date

            	 
	 	 	
              1.2.12.

            	
              Eligible
                Compensation

            	 
	 	 	
              1.2.13.

            	
              Employers

            	 
	 	 	
              1.2.14.

            	
              ERISA

            	 
	 	 	
              1.2.15.

            	
              Measuring
                Options

            	 
	 	 	
              1.2.16.

            	
              Participant

            	 
	 	 	
              1.2.17.

            	
              PUP
                Award

            	 
	 	 	
              1.2.18.

            	
              Plan

            	 
	 	 	
              1.2.19.

            	
              Plan
                Statement

            	 
	 	 	
              1.2.20.

            	
              Separation
                from Service

            	 
	 	 	
              1.2.21.

            	
              STIP
                Award

            	 
	 	 	
              1.2.22.

            	
              Unforeseeable
                Emergency

            	 
	 	 	
              1.2.23.

            	
              Valuation
                Date

            	 
	 	 	 
	
              SECTION
                2.

            	
              PARTICIPATION

            	
              6

            

    

     

    
      
         

      

      
        -i-

        
          

        

      

      
         

      

    

     

    
      	
              SECTION
                3.

            	
              ELECTIONS

            	
              7

            
	 	 	 	 
	 	
              3.1.

            	
              Compensation
                Subject to Elective Deferral

            	 
	 	
              3.2.

            	
              Eligible
                Compensation

            	 
	 	 	
              3.2.1.

            	
              Timing
                and Contents

            	 
	 	 	
              3.2.2.

            	
              Matching
                Credits Attributable to Deferrals

            	 
	 	 	
              3.2.3.

            	
              Duration

            	 
	 	
              3.3.

            	
              STIP/PUP
                Awards

            	 
	 	 	
              3.3.1.

            	
              Timing
                and Contents

            	 
	 	 	
              3.3.2.

            	
              Matching
                Credits Attributable to Deferrals

            	 
	 	 	
              3.3.3.

            	
              Duration

            	 
	 	
              3.4.

            	
              Discretionary
                Credits

            	 
	 	
              3.5.

            	
              Irrevocability

            	 	 
	 	
              3.6.

            	
              Subsequent
                Changes in Distribution Elections

            	 
	 	
              3.7.

            	
              Maximum/Minimum
                Deferral Amounts

            	 
	 	 	
              3.7.1.

            	
              Eligible
                Compensation

            	 
	 	 	
              3.7.2.

            	
              STIP
                and PUP Awards

            	 
	 	
              3.8.

            	
              Suspension
                of Eligibility

            	 
	 	 	 
	
              SECTION
                4.

            	
              CREDITS
                TO ACCOUNTS

            	
              11

            
	 	 	 	 	 
	 	
              4.1.

            	
              Deferral
                Credits

            	 	 
	 	
              4.2.

            	
              Matching
                Credits

            	 
	 	
              4.3.

            	
              Discretionary
                Credits

            	 
	 	 	 
	
              SECTION
                4.

            	
              ADJUSTMENT
                OF ACCOUNTS

            	
              12

            
	 	 	 	 
	 	
              5.1.

            	
              Establishment
                of Accounts

            	 
	 	
              5.2.

            	
              Adjustments
                of Accounts

            	 
	 	
              5.3.

            	
              Investment
                Adjustments

            	 
	 	
              5.4.

            	
              Cash
                Dividends

            	 	 
	 	
              5.5.

            	
              Stock
                Dividends

            	 
	 	
              5.6.

            	
              Transfer
                Upon Change in Control

            	 
	 	 	 
	
              SECTION
                6.

            	
              VESTING

            	
              13

            
	 	 	 
	
              SECTION
                7.

            	
              DISTRIBUTIONS

            	
              14

            
	 	 	 	 	 
	 	
              7.1.

            	
              Time
                of Distribution

            	 
	 	
              7.2.

            	
              Form
                of Distribution

            	 
	 	
              7.3.

            	
              Installment
                Amounts

            	 
	 	
              7.4.

            	
              Distributions
                in Cash or Stock

            	 
	 	
              7.5.

            	
              Special
                Rules

            	 	 
	 	 	
              7.5.1.

            	
              Unforeseeable
                Emergency

            	 
	 	 	
              7.5.2.

            	
              Code
                §162 Delay

            	 

    

     

    
      
         

      

      
        -ii-

        
          

        

      

      
         

      

    

     

    
      	 	 	
              7.5.3.

            	
              No
                Parachute Payment

            	 
	 	 	
              7.5.4.

            	
              Lump
                Sum Distribution to Pay Taxes

            	 
	 	 	
              7.5.5.

            	
              Small
                Amount Lump Sum

            	 
	 	
              7.6.

            	
              Designation
                of Beneficiaries

            	 
	 	 	
              7.6.1.

            	
              Right
                to Designate

            	 
	 	 	
              7.6.2.

            	
              Failure
                of Designation

            	 
	 	 	
              7.6.3.

            	
              Disclaimers
                by Beneficiaries

            	 
	 	 	
              7.6.4.

            	
              Definitions

            	 
	 	 	
              7.6.5.

            	
              Special
                Rules

            	 
	 	
              7.7.

            	
              No
                Spousal Rights

            	 
	 	
              7.8.

            	
              Death
                Prior to Full Payment

            	 
	 	
              7.9.

            	
              Facility
                of Payment

            	 
	 	 	 
	
              SECTION
                8.

            	
              FUNDING
                OF PLAN

            	
              20

            
	 	 	 	 
	 	
              8.1.

            	
              Unfunded
                Obligation

            	 
	 	
              8.2.

            	
              Corporate
                Obligation

            	 
	 	 	 
	
              SECTION
                9.

            	
              AMENDMENT
                AND TERMINATION

            	
              21

            
	 	 	 	 	 
	 	
              9.1.

            	
              Amendment
                of Plan

            	 
	 	
              9.2.

            	
              Termination
                of Plan

            	 
	 	
              9.3.

            	
              No
                Oral Amendments

            	 
	 	 	 
	
              SECTION
                10.

            	
              DETERMINATIONS
                — RULES AND REGULATIONS

            	
              22

            
	 	 	 	 	 
	 	
              10.1.

            	
              Determinations

            	 	 
	 	
              10.2.

            	
              Method
                of Executing Instruments

            	 
	 	
              10.3.

            	
              Claims
                Procedure

            	 
	 	 	
              10.3.1.

            	
              Initial
                Claim and Decision

            	 
	 	 	
              10.3.2.

            	
              Request
                for Review and Final Decision

            	 
	 	
              10.4.

            	
              Rules
                and Regulations

            	 
	 	 	
              10.4.1.

            	
              Adoption
                of Rules

            	 
	 	 	
              10.4.2.

            	
              Specific
                Rules

            	 
	 	 	
              10.4.3.

            	
              Limitations
                and Exhaustion

            	 
	 	 	 
	
              SECTION
                11.

            	
              PLAN
                ADMINISTRATION

            	
              26

            
	 	 	 	 	 
	 	
              11.1.

            	
              Authority

            	 	 
	 	 	
              11.1.1.

            	
              Company

            	 
	 	 	
              11.1.2.

            	
              Committee

            	 
	 	 	
              11.1.3.

            	
              Board
                of Directors

            	 
	 	
              11.2.

            	
              Conflict
                of Interest

            	 
	 	
              11.3.

            	
              ERISA
                Administrator

            	 
	 	
              11.4.

            	
              Service
                of Process

            	 

    

     

    
      
         

      

      
        -iii-

        
          

        

      

      
         

      

    

     

    
      	
              SECTION
                12.

            	
              CONSTRUCTION

            	
              27

            
	 	 	 	 	 
	 	
              12.1.

            	
              ERISA
                Status

            	 	 
	 	
              12.2.

            	
              IRC
                Status

            	 	 
	 	
              12.3.

            	
              Effect
                on Other Plans

            	 
	 	
              12.4.

            	
              Disqualification

            	 	 
	 	
              12.5.

            	
              Rules
                of Document Construction

            	 
	 	
              12.6.

            	
              References
                to Laws

            	 
	 	
              12.7.

            	
              Choice
                of Law

            	 	 
	 	
              12.8.

            	
              Delegation

            	 	 
	 	
              12.9.

            	
              Not
                an Employment Contract

            	 
	 	
              12.10.

            	
              Tax
                Withholding

            	 
	 	
              12.11.

            	
              Expenses

            	 	 
	 	
              12.12.

            	
              Spendthrift
                Provision

            	 

    

    
      	 	 	 
	
              APPENDIX A
                —

            	
              TRANSITIONAL
                RULES FOR 2005 AND 2006 CREDITS

            	
              A-1

            
	 	 	 
	
              APPENDIX B
                —

            	
              RULES
                FOR PRE-2005 CREDITS - (“PRIOR PLAN STATEMENT”)

            	
              B-1

            

    

    

    
      
         

      

      
        -iv-

        
          

        

      

      
         

      

    

    H.B.
      FULLER COMPANY

    KEY
      EMPLOYEE DEFERRED COMPENSATION PLAN

    (2005
      Amendment and Restatement)

    

    SECTION
      1

     

    INTRODUCTION
      AND DEFINITIONS

     

    1.1. Introduction.
      Effective October 14, 1999, H.B. Fuller Company (“H.B. Fuller”) and certain
      affiliated corporations (“Employers” or “Employer” as applicable) established a
      nonqualified, unfunded deferred compensation plan (the “Plan”) to assist in
      attracting key employees and encouraging their long term commitment to the
      Company’s success by offering them an opportunity to defer compensation and to
      share in increases in the value of H.B. Fuller. The Plan is currently embodied
      in a document titled “H.B. Fuller Company Key Employee Deferred Compensation
      Plan,” as amended (the “Prior Plan Statement”).

     

    1.1.1. Rules
      That Apply To Pre-2005 Credits.
      Amounts
      credited under the Plan which relate entirely to services performed before
      January 1, 2005, shall continue to be governed by the terms of the Prior
      Plan Statement, attached hereto as Appendix B,
      subject
      to the following exceptions: (i) effective with respect to any Participant
      who dies on or after January 1, 2007 (regardless whether the Participant
      designated a beneficiary before or after January 1, 2007), the rules in
      Section 8.3 of the Prior Plan Statement related to beneficiaries shall be
      replaced by the rules in Section 7.6 of the Plan Statement, and
      (ii) effective for any claims filed on or after January 1, 2007, the
      claims procedure in Section 11.3 of the Prior Plan Statement shall be
      replaced by the claims procedure in Section 10 of the Plan
      Statement.

     

    1.1.2. Rules
      That Apply To 2005 and 2006 Credits.
      Amounts
      credited under the Plan which relate all or in part to services performed on
      or
      after January 1, 2005, but before January 1, 2007, shall be governed
      by the terms of the Prior Plan Statement subject to the transitional rules,
      attached hereto as Appendix A, which are intended to comply with the
      deferred compensation provisions in section 409A of the Code. Additionally,
      (i) effective with respect to any Participant who dies on or after
      January 1, 2007 (regardless whether the Participant designated a
      beneficiary before or after January 1, 2007), the rules in Section 8.3
      of the Prior Plan Statement related to beneficiaries shall be replaced by the
      rules in Section 7.6 of the Plan Statement, and (ii) effective for any
      claims filed on or after January 1, 2007, the claims procedure in
      Section 11.3 of the Prior Plan Statement shall be replaced by the claims
      procedure in Section 10 of the Plan Statement.

     

    1.1.3. Rules
      That Apply To Post-2006 Credits.
      Amounts
      credited under the Plan which relate all or in part to services performed on
      or
      after January 1, 2007, will be governed by the terms of this Plan
      Statement, the terms of which are intended to comply with the deferred
      compensation provisions in section 409A of the Code.

    1.2. Definitions.
      When
      the following terms are used herein with initial capital letters, they shall
      have the following meanings:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.2.1. Account
      or Accounts—
the
      separate bookkeeping account or accounts representing the separate unfunded
      and
      unsecured general obligation of the Employers established with respect to each
      person who becomes a Participant in this Plan in accordance with Section 2
      and to which is credited the amounts specified Sections 4 and 5 and from
      which are subtracted payments made pursuant to Section 7. The following
      Accounts (and such subaccounts as the Company may determine necessary or useful
      to the administration of this Plan) will be maintained under this Plan for
      Participants:

     

    
      	 	
              (a)

            	
              Deferred
                Compensation Account —
                the Account maintained for each Participant to which is credited
                deferral
                amounts under Section 4.1 in accordance with the Participant’s
                allocation election. The value of the Deferred Compensation Account
                shall
                be measured by the Measuring Option(s) elected by the Participant
                from
                time to time as permitted by the Company. Credits in the Deferred
                Compensation Account cannot later be transferred to the Company Stock
                Account. Distributions from the Deferred Compensation Account shall
                be
                made in the form of cash.

            

    

     

    
      	 	
              (b)

            	
              Company
                Stock Account —
                the Account maintained for each Participant to which is credited,
                (i) deferral amounts pursuant to Section 4.1 in accordance with
                the Participant’s allocation election, (ii) matching amounts pursuant
                to Section 4.2, and (iii) any discretionary amounts pursuant to
                Section 4.3. The value of the Company Stock Account is measured by
                the value of H.B. Fuller Common Stock. Except as provided in
                Section 5.6 following a Change in Control, credits in the Company
                Stock Account cannot later be transferred to the Deferred Compensation
                Account. Distributions from Company Stock Account shall be made in
                the
                form of H.B. Fuller Common Stock.

            

    

     

    1.2.2. Affiliate—
a
      business entity which is affiliated in ownership with H.B. Fuller that is
      recognized as an Affiliate by the Company for the purposes of this
      Plan.

     

    1.2.3. Beneficiary
      —
a
      person designated by a Participant (or automatically by operation of
      Section 7.6 to receive all or a part of the Participant’s Account in the
      event of the Participant’s death prior to full distribution thereof. A person so
      designated shall not be considered a Beneficiary until the death of the
      Participant.

    1.2.4. Change
      in Control—
any
      of
      the following events:

     

    
      	 	
              (a)

            	
              a
                change in control of the Company of a nature that would be required
                to be
                reported in accordance with Regulation 14A promulgated under the
                Securities Exchange Act of 1934 (the Exchange Act”), whether or not the
                Company is then subject to such reporting
                requirement;

            

    

     

    
      	 	
              (b)

            	
              a
                public announcement (which for purposes hereof, shall include, without
                limitation, a report filed pursuant to section 13(d) of the Exchange
                Act) that any individual, corporation, partnership, association,
                trust or
                other entity becomes a beneficial owner (as defined in Rules 13(d)(3)
                promulgated under the Exchange Act), directly or indirectly, of securities
                or the Company representing 15% or more of the Voting Power of the
                Company
                then outstanding;

            

    

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    
      	 	
              (c)

            	
              the
                individuals who, as of January 1, 2005, are members of the Board of
                Directors of the Company (the “Incumbent Board”) cease for any reason to
                constitute at least a majority of the Board (provided, however, that
                if
                the election or nomination for election by the Company’s shareholders of
                any new director was approved by a vote of at least a majority of
                the
                Incumbent Board, such a new director shall be considered to be a
                member of
                the Incumbent Board);

            

    

     

    
      	 	
              (d)

            	
              the
                approval of the shareholders of the Company of (i) any consolidation,
                merger or statutory share exchange of the Company with any person
                in which
                the surviving entity would not have as its directors at least 60%
                of the
                Incumbent Board and as a result of which those persons who were
                shareholders of the Company immediately prior to such transaction
                would
                not hold, immediately after such transaction, at least 60% of the
                Voting
                Power of the Company then outstanding or the combined voting power
                of the
                surviving entity’s then outstanding voting securities; (ii) any sale,
                lease, exchange or other transfer in one transaction or series of
                related
                transactions substantially all of the assets of the Company; or
                (iii) the adoption of any plan or proposal for the complete or
                partial liquidation or dissolution of the Company;
                or

            

    

     

    
      	 	
              (e)

            	
              a
                determination by a majority of the members of the Incumbent Board,
                in
                their sole and absolute discretion, that there has been a Change
                in
                Control of the Company.

            

    

     

    1.2.5. Code—
the
      Internal Revenue Code of 1986, as amended (including, when the context requires,
      all regulations, interpretations and rulings issued
      thereunder).

    1.2.6. Committee—
the
      Compensation Committee of the Board of Directors of H.B. Fuller (or any
      successor committee) or such other person or persons whom the Committee
      authorizes to act on its behalf to administer the Plan.

     

    1.2.7. Common
      Stock—
common
      stock par value $1.00 per share, of H.B. Fuller Company as such stock may be
      reclassified, converted or exchanged by reorganization, merger of
      otherwise.

     

    1.2.8. Company
      —
H.B.
      Fuller Company and any successor thereto.

     

    1.2.9. Disability
      —
a
      medically determinable physical or mental impairment which (i) is expected
      to result in death or to last for a continuous period of at least 12 months,
      (ii) renders the Participant incapable of any substantial gainful activity,
      and (iii) is evidenced by a certification to this effect by a doctor of
      medicine approved by the Company. Alternatively, a Participant will be
      considered disabled if the Participant is, by reason of any medically
      determinable physical or mental impairment which is expected to result in death
      or to last for a continuous period of at least 12 months, receiving income
      replacement for a period of at least 3 months under the Employer’s disability
      plan. A Participant who provides proof of a determination of disability by
      the
      Social Security Administration will be deemed disabled under this Plan.
      Disability shall be construed to be consistent with the meaning of that term
      in
      section 409A of the Code and regulations and guidance
      thereunder.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    1.2.10. Distribution
      Event—
any
      of
      the occurrences described in Section 7.1 by reason of which a Participant
      or Beneficiary may become entitled to a distribution from this
      Plan.

     

    1.2.11. Effective
      Date—
      January 1, 2005.

     

    1.2.12. Eligible
      Compensation—
      Eligible Earnings as defined under the H.B. Fuller Thrift Plan; provided,
      however, that Eligible Compensation for purpose of this Plan shall be determined
      without regard to limitations imposed under section 401(a)(17) of the Code.
      Notwithstanding the foregoing, Eligible Compensation will not include any awards
      under the Short-Term Incentive Plan or the Performance Unit Plan.

     

    1.2.13. Employers—
H.B.
      Fuller and each business entity affiliated with H.B. Fuller that employs persons
      who are designated by the Committee for participation in this Plan (collectively
      the “Employers” and separately the “Employer”).

    1.2.14. ERISA—
the
      Employee Retirement Income Security Act of 1974, as amended (including, when
      the
      context requires, all regulations, interpretations and rulings issued
      thereunder).

     

    1.2.15. Measuring
      Options —
the
      investment options determined from time to time in the sole discretion of the
      Committee which may be elected by the Participant to measure the value of the
      Participant’s credits in the Deferred Compensation Account.

     

    1.2.16. Participant—
an
      employee of an Employer who is designated as eligible to participate in this
      Plan and becomes a Participant in this Plan in accordance with the provisions
      of
      Section 2. An employee who has become a Participant shall be considered to
      continue as a Participant in this Plan until the date of the Participant’s death
      or, if earlier, the date when the Participant is no longer employed by an
      Employer or an Affiliate and upon which the Participant no longer has any
      Account under this Plan (that is, the Participant has received a distribution
      of
      all of the Participant’s Account).

     

    1.2.17. PUP
      Award—
an
      award paid pursuant to the H.B. Fuller Company Performance Unit Plan which
      is
      performance-based compensation as defined in section 409A of the
      Code.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    1.2.18. Plan—
the
      nonqualified, income deferral program maintained by H.B. Fuller established
      for
      the benefit of Participants eligible to participate therein, as set forth in
      the
      Plan Statement. (As used herein, “Plan” does not refer to the documents pursuant
      to which this Plan is maintained. That document is referred to herein as the
      “Plan Statement”). The Plan shall be referred to as the H.B. Fuller Company Key
      Employee Deferred Compensation Plan.

     

    1.2.19. Plan
      Statement—
this
      document entitled “H.B. Fuller Company Key Employee Deferred Compensation Plan
      (2005 Amendment and Restatement)” as adopted by the Board of Directors of H.B.
      Fuller, as the same may be amended from time to time thereafter.

     

    1.2.20. Separation
      from Service—
a
      complete severance of an employee’s employment relationship with the Employers
      and all Affiliates, if any, for any reason other than the employee’s death. A
      transfer from employment with an Employer to employment with an Affiliate of
      an
      Employer shall not constitute a Separation from Service. Separation from Service
      shall be construed to be consistent with the meaning of that term in
      section 409A of the Code and regulations and guidance
      thereunder.

     

    1.2.21. STIP
      Award—
an
      award paid pursuant to the H.B. Fuller Company Short-Term Incentive Plan which
      is performance-based compensation as defined in section 409A of the
      Code.

    1.2.22. Unforeseeable
      Emergency—
a
      severe financial hardship to the Participant resulting from an illness or
      accident of the Participant, the Participant’s spouse, or 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. Unforeseeable Emergency shall be construed to be consistent
      with the meaning of that term in section 409A of the Code and regulations
      and guidance thereunder.

     

    1.2.23. Valuation
      Date—
the
      last business day of each month, and such other dates as may be established
      by
      the Committee from time to time.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    SECTION
      2

     

    PARTICIPATION

     

    Each
      employee of an Employer shall become a Participant in the Plan upon the
      satisfaction of the following requirements:

     

    
      	 	
              (a)

            	
              Employee
                is determined by the Committee to be classified at the pay grade
                of
                thirty-two (32) or higher or to be a member of a select group of
                management or highly compensated employees (as that term is used
                in
                ERISA); and

            

    

     

    
      	 	
              (b)

            	
              Employee
                is affirmatively selected by the Committee for participation in the
                Plan.

            

    

     

    A
      Participant may defer compensation only as permitted under the timing rules
      in
      Section 3.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    SECTION
      3

     

    ELECTIONS

     

    3.1. Compensation
      Subject to Elective Deferral.
      A
      Participant may elect to defer all or a portion of the following
      compensation:

     

    
      	 	
              (a)

            	
              Eligible
                Compensation;

            

    

     

    
      	 	
              (b)

            	
              STIP
                Awards; and

            

    

     

    
      	 	
              (c)

            	
              PUP
                Awards;

            

    

     

    provided,
      however, that deferrals of any STIP and PUP Awards shall be permitted only
      if
      the Participant was a employed by an Employer and covered under the STIP or
      PUP,
      as applicable, on the first day of the performance period upon which the Award
      is based.

     

    3.2. Eligible
      Compensation.

     

    3.2.1. Timing
      and Contents.
      A
      Participant’s election to defer Eligible Compensation shall be made at the time
      and in the form and manner prescribed by the Company. A Participant’s deferral
      election shall apply only to Eligible Compensation for services performed during
      the calendar year beginning after the election is filed. The deferral election
      may also apply to Eligible Compensation included in the first paycheck of a
      calendar year for services performed in the prior year. Such election shall
      specify:

     

    
      	 	
              (a)

            	
              the
                amount of the Participant’s Eligible Compensation to be
                deferred,

            

    

     

    
      	 	
              (b)

            	
              the
                portions of such deferrals to be allocated to the Deferred Compensation
                Account and to the Company Stock
                Account,

            

    

     

    
      	 	
              (c)

            	
              the
                Measuring Option(s) to be used to measure increase (or decreases)
                in the
                value of such deferrals allocated to Deferred Compensation
                Account,

            

    

     

    
      	 	
              (d)

            	
              the
                form of distribution for such deferrals,
                and

            

    

     

    
      	 	
              (e)

            	
              a
                specified date of distribution, if any, under Section 7.1(e) for such
                deferrals.

            

    

     

    3.2.2. Matching
      Credits Attributable to Deferrals.
      A
      Participant’s election of form of distribution and specified date for
      distribution, if any, with respect to deferrals of Eligible Compensation for
      a
      calendar year shall also apply to matching credits under Section 4.2
      attributable to such deferrals.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    3.2.3. Duration.
      A
      Participant’s election to defer Eligible Compensation shall expire on the last
      day of the calendar year to which it relates and new elections must be made
      with
      respect to subsequent calendar years.

     

    3.3. STIP/PUP
      Awards.

     

    3.3.1. Timing
      and Contents.
      A
      Participant’s election to defer any STIP and PUP Awards shall be made at the
      time and in the form and manner prescribed by the Plan Administrator. Such
      election shall be filed with the Company at least six (6) months before the
      end
      of the performance period upon which the Award is based and shall
      specify:

     

    
      	 	
              (a)

            	
              the
                amount of the Award to be deferred,

            

    

     

    
      	 	
              (b)

            	
              the
                portions of such deferrals to be allocated to the Deferred Compensation
                Account and to the Company Stock
                Account,

            

    

     

    
      	 	
              (c)

            	
              the
                Measuring Option(s) to be used to measure increases (or decreases)
                in
                value of such deferrals allocated to Deferred Compensation
                Account,

            

    

     

    
      	 	
              (d)

            	
              the
                form of distribution for such deferrals,
                and

            

    

     

    
      	 	
              (e)

            	
              a
                specified date for distribution, if any, under Section 7.1(e) for
                such deferrals;

            

    

     

    provided,
      however, that if the Participant has previously filed an election to defer
      Eligible Compensation during the calendar year in which an election under this
      Section 3.3.1 is filed, the Participant’s election of (i) allocation
      between Deferred Compensation Account and Company Stock Account, (ii) form
      of distribution, and (iii) specified date of distribution, if any, with
      respect to such Eligible Compensation shall also apply to the allocation and
      distribution of deferrals of the STIP/PUP Awards.

     

    3.3.2. Matching
      Credits Attributable to Deferrals.
      A
      Participant’s election of form of distribution and specified date for
      distribution, if any, with respect to deferrals of STIP and PUP Awards for
      a
      performance period shall also apply to matching credits under Section 4.2
      attributable to such deferrals.

     

    3.3.3. Duration.
      A
      Participant’s election to defer STIP and PUP Awards shall apply only to the
      Award for the performance period specified on the election forms and new
      elections must be made with respect to subsequent performance
      periods.

     

    3.4. Discretionary
      Credits.
      The
      Participant’s election of form of distribution and specified date, if any, with
      respect to Eligible Compensation during the calendar year shall apply to any
      discretionary credits made during such calendar year. If the Participant has
      not
      elected to defer Eligible Compensation during the calendar year in which
      discretionary credits are made, the Participant shall be deemed to have elected
      to receive distribution of such amounts in the form of a lump sum and not to
      have elected a specified date for distribution under
      Section 7.1(e).

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    3.5. Irrevocability.
      An
      election to defer Eligible Compensation or any STIP/PUP Awards that is accepted
      by the Committee shall be irrevocable for the calendar year or performance
      period (as applicable) to which it applies; provided, however, that if the
      Participant receives a distribution from the Plan on account of a Disability
      or
      Unforeseeable Emergency during period when the election is in effect, the
      Participant’s deferral elections shall be cancelled, and further deferrals shall
      not be made during that period.

     

    3.6. Subsequent
      Changes in Distribution Elections.
      A
      Participant shall be permitted to change a prior election of the form of
      distribution or the specified date of distribution if such election change
      is
      made in the form and manner prescribed by the Company and only if the following
      conditions are satisfied:

     

    
      	 	
              (a)

            	
              the
                election change shall not take effect until the date that is twelve
                (12)
                months after the date on which the Participant submits the election
                change;

            

    

     

    
      	 	
              (b)

            	
              if
                the Participant changes the form of distribution, any distribution
                that
                occurs on account of Distribution Events in Section 7.1(a), (d) or
                (e) (i.e.,
                age 65, Separation from Service, or specified date), distribution
                shall be
                delayed until the date that is five (5) years after the date the
                distribution would otherwise have been made;
                and

            

    

     

    
      	 	
              (c)

            	
              if
                the Participant changes a specified date of distribution under
                Section 7.1(e), the election change (i) must be submitted at
                least 12 months before the date previously specified by the Participant,
                and (ii) the new specified date shall be at least five (5) years
                after the date previously
                specified.

            

    

     

    3.7. Maximum/Minimum
      Deferral Amounts.

     

    3.7.1. Eligible
      Compensation.
      A
      Participant shall be permitted to elect to defer up to eighty percent (80%)
      of
      Eligible Compensation in one percent (1%) increments. In special circumstances
      a
      greater percentage may be determined by the Committee based on whether the
      compensation otherwise paid to the Participant would be fully deductible for
      federal or state income tax purposes under Code
      section 162(m).

     

    3.7.2. STIP
      and PUP Awards.
      A
      Participant shall be permitted to elect to defer up to one hundred percent
      (100%) of any STIP and PUP Awards in one percent (1%) increments. A Participant
      election shall be automatically reduced to the extent necessary to allow for
      full payment of all FICA, federal, state and/or local income taxes.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    3.8. Suspension
      of Eligibility.
      If the
      Committee determines that a Participant ceases to be a member of a select group
      of management or highly compensated employees (as that term is used in ERISA),
      the Participant’s deferral election will terminate and no additional amounts
      will be credited to the Participant’s Accounts until such time as the individual
      is again determined to be eligible to participate in the Plan by the Committee
      and makes a new election under Section 3. However, the Accounts of such
      Participant shall continue to be adjusted pursuant to Section 5 until
      distributed according to prior elections.

     

    

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    SECTION
      4

     

    CREDITS
      TO ACCOUNTS

     

    4.1. Deferral
      Credits.
      On the
      date on which the compensation would otherwise have been paid to the Participant
      (or as soon as administratively practicable thereafter), the Company shall
      credit the Participant’s Deferred Compensation Account or Company Stock Account,
      according to the Participant’s allocation election, the amount the Participant
      elected to defer under Section 3. The amount that is allocated and credited
      to the Deferred Compensation Account shall be stated as a dollar amount. The
      amount that is allocated and credited to the Company Stock Account shall be
      stated as the number of units (including fractions thereof) of Common Stock
      that
      could have been purchased with such deferrals as of the close of business on
      the
      date such amounts would otherwise have been paid to the
      Participant.

     

    4.2. Matching
      Credits.
      At the
      same time as the Participant’s Company Stock Account is credited based on
      elective deferrals, the Company shall credit the Participant’s Company Stock
      Account with an additional number of units (including fractions thereof) of
      Common Stock that are equal to ten percent (10%) of the number of units
      (including fractions thereof) of Common Stock that were credited to the
      Participant’s Company Stock Account based on such elective deferrals. Any
      credits to this Plan based on limits on contributions under the Company’s 401(k)
      plan shall be discontinued effective December 31, 2006.

     

    4.3. Discretionary
      Credits.
      From
      time to time, the Company, in its sole discretion, may credit the Participant’s
      Company Stock Account with the number of units of Common Stock as the
      Compensation Committee may determine in its sole discretion.

     

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    SECTION
      5

     

    ADJUSTMENT
      OF ACCOUNTS

     

    5.1. Establishment
      of Accounts.
      There
      shall be established for each Participant unfunded, bookkeeping Accounts which
      shall be hypothetical in nature. Neither the Plan nor any of the Accounts shall
      hold or be required to hold any actual funds or assets.

     

    5.2. Adjustments
      of Accounts.
      From
      time to time, but not less frequently than each Valuation Date, the value of
      each Account or portion of an Account shall be increased (or decreased) for
      distributions, credits (including any earnings, gains or losses thereon) and
      any
      expenses charged to the Account.

     

    5.3. Investment
      Adjustments.
      The
      Committee shall have the sole discretion to designate from time to time the
      Measuring Options in which the Deferred Compensation Accounts may be deemed
      invested. The Committee shall, in its sole discretion, adopt rules specifying
      (i) the circumstances under which a particular Measuring Option may be
      elected (or automatically utilized), (ii) the minimum or maximum
      percentages which may be allocated to the Measuring Option, (iii) the
      procedures (if any) for Participants making or changing elections of Measuring
      Options (including when such elections and election changes shall be implemented
      after the election is accepted by the Committee), (iv) the extent (if any)
      to which beneficiaries of deceased Participants may change Measuring Options,
      and (v) the effect of a Participant’s or beneficiary’s failure to make an
      effective election with respect to a Measuring Option. Notwithstanding the
      foregoing, subsequent to a Change in Control, the Committee shall maintain
      the
      availability of those Measuring Options in place at the time of the Change
      in
      Control (or substantially equivalent Measuring Options).

     

    5.4. Cash
      Dividends.
      On each
      Common Stock dividend payment date, the Participant’s Company Stock Account
      shall be credited with the number of units (including fractions thereof) equal
      to the number of shares of Common Stock that could have been purchased with
      the
      amount the dividends paid by the Company on shares of Common Stock equal to
      the
      number of units credited to the Participant’s Company Stock Account as of the
      record date of such dividend.

     

    5.5. Stock
      Dividends.
      The
      number of units credited to a Participant’s Company Stock Account shall be
      adjusted to reflect any change in the outstanding Common Stock by reason of
      any
      stock dividend or split, recapitalization, merger, consolidation, combination
      or
      exchange of share or similar corporate change.

     

    5.6. Transfer
      Upon Change in Control.
      Effective as of the close of business on the date of a Change in Control, each
      Participant’s Deferred Compensation Account shall be credited with an amount
      stated in dollars equal to the value of such Participant’s Company Stock Account
      based upon the fair market value of Common Stock at the close of business on
      such date, and the Participant’s Company Stock Account shall be closed, and the
      Participant shall have no further interest in the Company Stock
      Account.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    SECTION
      6

     

    VESTING

     

    The
      Account of each Participant shall be fully (100%) vested and nonforfeitable
      at
      all times. Notwithstanding the foregoing, if the Company determines in its
      discretion that a Participant has improperly received a credit under this Plan
      for any reason (including, but not limited to, an erroneous calculation or
      other
      mistake of fact, or on account of a restatement of earnings), the Account shall
      be reduced by the amount of the improper credit.

     

    

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    SECTION
      7

     

    DISTRIBUTIONS

     

    7.1. Time
      of Distribution.
      The
      value of the Participant’s Accounts shall be determined as of the last business
      day of the month in which the first of the following Distribution Events occurs
      and distribution to the Participant (or Beneficiary, if applicable) shall be
      made or commenced within sixty (60) days thereafter :

     

    
      	 	
              (a)

            	
              Participant’s
                sixty-fifth (65th) birthday;

            

    

     

    
      	 	
              (b)

            	
              Participant
                Disability;

            

    

     

    
      	 	
              (c)

            	
              Participant’s
                death;

            

    

     

    
      	 	
              (d)

            	
              Participant’s
                Separation from Service; or

            

    

     

    
      	 	
              (e)

            	
              Such
                other date, if any, elected and specified by the Participant in accordance
                with Section 3;

            

    

     

    provided,
      however, if the Distribution Event is the Participant’s Separation from Service
      under (d) above, determination of the value of the Participant’s Account shall
      be delayed until the date that is six (6) months following the Participant’s
      Separation from Service and distribution shall be made or commenced on the
      first
      payroll date of the Company thereafter.

     

    If
      a
      Participant who receives a distribution on account of reaching age sixty-five
      (65) (i.e.,
      under
      (a) above) continues employment with the Employer after age sixty-five (65),
      any
      subsequent distribution to such Participant shall be determined under this
      Plan
      without further regard to (a) above.

     

    Distribution
      under (e) above shall apply only to the portion of the Participant’s Account, if
      any, with respect to which the Participant elected the specified distribution
      date.

     

    Notwithstanding
      the foregoing, the time of any distribution shall be delayed in accordance
      with
      the rules in Section 3.6 related to subsequent changes in distribution
      elections.

     

    7.2. Form
      of Distribution.
      Distribution shall be made to the Participant (or Beneficiary, if applicable)
      in
      whichever of the following forms as the Participant shall have elected in
      accordance with Section 3 with respect to the Account:

     

    
      	 	
              (a)

            	
              Lump
                sum; or

            

    

     

    
      	 	
              (b)

            	
              Annual
                installments over a specified number of years not to exceed eleven
                (11)
                years.

            

    

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    7.3. Installment
      Amounts.
      The
      amount of the annual installments shall be determined by dividing the value
      of
      the Account as of the last business day of the month following the Distribution
      Event and as of each anniversary of such day by the number of remaining
      installment payments to be made (including the payment being determined). If
      distribution is delayed under Section 7.1 until the date that is six (6)
      months after Separation from Service, the subsequent installments shall be
      determined as of each anniversary of such date.

     

    7.4. Distributions
      in Cash or Stock.
      Distributions from the Participant’s Company Stock Account shall be paid in
      shares of Common Stock (with any fractional unit being rounded to the next
      highest whole unit). Distributions from the Participant’s Deferred Compensation
      Account shall be paid in cash.

     

    7.5. Special
      Rules.

     

    7.5.1. Unforeseeable
      Emergency.
      A
      Participant who has not incurred a Distribution Event but who has incurred
      an
      Unforeseeable Emergency may request a withdrawal from such Participant’s
      Account. In the event that the Company, upon written petition of the
      Participant, determines in his or her sole discretion that the Participant
      has
      suffered an Unforeseeable Emergency, the Company shall distribute to the
      Participant as soon as reasonably practicable following such determination,
      an
      amount (not in excess of the value of the Participant’s Account) necessary to
      satisfy the emergency. Distribution shall be taken pro-rata from the
      Participant’s Deferred Compensation Account and Company Stock Account starting
      with the most recent credits to the Accounts. Immediately upon the distribution,
      such Participant’s deferral elections shall be cancelled, and further deferrals
      shall not be made in accordance with Section 3.5 during that
      period.

     

    7.5.2. Code
      §162 Delay.
      Notwithstanding anything to the contrary in this Section 7, distribution
      shall be delayed when the Employer reasonably anticipates that the Employer’s
      federal income tax deduction with respect to such distribution otherwise would
      be limited or eliminated by application of section 162(m) of the Code. The
      distribution shall thereafter be made at the earliest date at which the Employer
      reasonably anticipates that the deduction with respect to such distribution
      will
      not be limited or eliminated by application of section 162(m) of the
      Code.

     

    7.5.3. No
      Parachute Payment.
      If the
      Committee determines in its reasonable discretion following consultation with
      appropriate tax and/or legal advisors that distribution on account of the
      Distribution Event in Section 7.1(d) or (e) would likely constitute a
      parachute payment for purposes of section 280G of the Code, distribution on
      account of such Distribution Event shall not occur, and distribution shall
      occur, thereafter, only on account of the earliest of the Distribution Events
      in
      Section 7.1(a), (b) or (c); provided, however, that if the Participant is
      age 65 or more when such determination is made, age 72 shall be substituted
      for
      age 65 under Section 7.1(a). If a Distribution Event in Section 7.1(d)
      or (e) occurs subsequent to a Change in Control, the Committee shall, at the
      Company’s expense, promptly request a written opinion of the “independent
      auditor” with respect to the applicability of such section 280G and such
      written opinion shall determine if a distribution would likely constitute a
      parachute payment. As used in this Section 7.4.3, the term “independent
      auditor” means the firm of certified public accountants which at the time of the
      Change in Control had been most recently engaged by the Company or such other
      comparable and nationally recognized firm of certified public accountants as
      may
      be selected by the Committee in its reasonable discretion.

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    7.5.4. Lump
      Sum Distribution to Pay Taxes.
      Notwithstanding anything to the contrary in this Section 7, a lump sum
      shall be distributed to the Participant (i) to pay any employment taxes
      under FICA that may become due on compensation deferred under this Plan,
      (ii) to pay any income tax withholding related to the distribution of
      amounts to pay such FICA taxes, and (iii) to pay any amounts required to be
      included in the Participant’s income due to failure to comply with the
      requirements in section 409A of the Code.

     

    7.5.5. Small
      Amount Lump Sum.
      Notwithstanding anything to the contrary in this Section 7, at the time of
      distribution, if the value of the Participant’s Accounts is $25,000 or less, the
      portion of the Participant’s Accounts attributable to credits on and after
      January 1, 2007, shall be distributed in a single lump sum regardless of
      the Participant’s elections with respect to such amounts.

     

    7.6. Designation
      of Beneficiaries.

     

    7.6.1. Right
      to Designate.
      Each
      Participant may designate, upon form to be furnished by and filed with the
      Company, one or more primary Beneficiaries or alternative Beneficiaries to
      receive all or a specified part of such Participant’s Account in the event of
      such Participant’s death. The Participant may chance or revoke any such
      designation from time to time without notice to or consent from any spouse,
      Beneficiary or any other person. No such designation, change or revocation
      shall
      be effective unless executed by the Participant and received by the Company
      during the Participant’s lifetime. The Company may establish rules for the use
      of electronic signatures.

     

    7.6.2. Failure
      of Designation.
      If a
      Participant:

     

    
      	 	
              (a)

            	
              fails
                to designate a Beneficiary,

            

    

     

    
      	 	
              (b)

            	
              designates
                a Beneficiary and thereafter revokes such designation without naming
                another Beneficiary, or

            

    

     

    
      	 	
              (c)

            	
              designates
                one or more Beneficiaries and all such Beneficiaries so designated
                fail to
                survive the Participant,

            

    

     

    such
      Participant’s Account, or the part thereof as to which such Participant’s
      designation fails, as the case may be, shall be payable to the first class
      of
      the following classes of automatic Beneficiaries with a member surviving the
      Participant and (except in the case of surviving issue) in equal shares if
      there
      is more than one member in such class surviving the Participant:

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    Participant’s
      surviving spouse

    Participant’s
      surviving issue per stirpes and not per capita

    Participant’s
      surviving parents

    Participant’s
      surviving brothers and sisters

    Representative
      of Participant’s estate.

    

    7.6.3. Disclaimers
      by Beneficiaries.
      A
      Beneficiary entitled to a payment of all or a portion of a deceased
      Participant’s Account may disclaim an interest therein subject to the following
      requirements. To be eligible to disclaim, a Beneficiary must be a natural
      person, must not have received a payment of all or any portion of the Account
      at
      the time such disclaimer is executed and delivered, and must have attained
      at
      least age twenty-one (21) years as of the date of the Participant’s death. Any
      disclaimer must be in writing and must be executed personally by the Beneficiary
      before a notary public. A disclaimer shall state that the Beneficiary’s entire
      interest in the unpaid Account is disclaimed or shall specify what portion
      thereof is disclaimed. To be effective, an original executed copy of the
      disclaimer must be both executed and actually delivered to the Company after
      the
      date of the Participant’s death but not later than nine (9) months after the
      date of the Participant’s death. A disclaimer shall be irrevocable when
      delivered to the Company. A disclaimer shall be considered to be delivered
      to
      the Company only when actually received by the Company. The Company shall be
      the
      sole judge of the content, interpretation and validity of a purported
      disclaimer. Upon the filing of a valid disclaimer, the Beneficiary shall be
      considered not to have survived the Participant as to the interest
      disclaimed.  A disclaimer by a Beneficiary shall not be considered to
      be a transfer of an interest in violation of the provisions of
      Section 12.12 and shall not be considered to be an assignment or alienation
      of benefits in violation of federal law prohibiting the assignment or alienation
      of benefits under this Plan. No other form of attempted disclaimer shall be
      recognized by the Company.

     

    7.6.4. Definitions.
      When
      used herein and, unless the Participant has otherwise specified in the
      Participant’s Beneficiary designation, when used in a Beneficiary designation,
      the following definitions and rules shall be applied.

     

    
      	 	
              (a)

            	
              “Issue”
                means all persons who are lineal descendants of the person whose
                issue are
                referred to, subject to the
                following:

            

    

     

    
      	 	
              (i)

            	
              a
                legally adopted child and the adopted child’s lineal descendants always
                shall be lineal descendants of each adoptive parent (and of each
                adoptive
                parent’s lineal ancestors);

            

    

     

    
      	 	
              (ii)

            	
              a
                legally adopted child and the adopted child’s lineal descendants never
                shall be lineal descendants of any former parent whose parental rights
                were terminated by the adoption (or of that former parent’s lineal
                ancestors); except that if, after a child’s parent has died, the child is
                legally adopted by a stepparent who is the spouse of the child’s surviving
                parent, the child and the child’s lineal descendants shall remain lineal
                descendants of the deceased parent (and the deceased parent’s lineal
                ancestors);

            

    

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    
      	 	
              (iii)

            	
              if
                the person (or a lineal descendant of the person) whose issue are
                referred
                to is the parent of a child (or is treated as such under applicable
                law)
                but never received the child into that parent’s home and never openly held
                out the child as that parent’s child (unless doing so was precluded solely
                by death), then neither the child nor the child’s lineal descendants shall
                be issue of the person.

            

    

     

    
      	 	
              (b)

            	
              “Child”
                means an issue of the first
                generation;

            

    

     

    
      	 	
              (c)

            	
              “Per stirpes”
                means in equal shares among living children of the person whose issue
                are
                referred to and the issue (taken collectively) of each deceased child
                of
                such person, with such issue taking by right of representation of
                such
                deceased child; and

            

    

     

    
      	 	
              (d)

            	
              “Survive”
                and “surviving” mean living after the death of the
                Participant.

            

    

     

    7.6.5. Special
      Rules.
      Unless
      the Participant has otherwise specified in the Participant’s Beneficiary
      designation, the following rules shall apply:

     

    
      	 	
              (a)

            	
              If
                there is not sufficient evidence that a Beneficiary was living at
                the time
                of the death of the Participant, it shall be deemed that the Beneficiary
                was not living at the time of the death of the
                Participant.

            

    

     

    
      	 	
              (b)

            	
              The
                automatic Beneficiaries specified in Section 7.5.2 and the
                Beneficiaries designated by the Participant shall become fixed at
                the time
                of the Participant’s death so that, if a Beneficiary survives the
                Participant but dies before the receipt of all payments due such
                Beneficiary hereunder, such remaining payments shall be payable to
                the
                representative of such Beneficiary’s
                estate.

            

    

     

    
      	 	
              (c)

            	
              If
                the Participant designates as a Beneficiary the person who is the
                Participant’s spouse on the date of the designation, either by name or by
                relationship, or both, the dissolution, annulment or other legal
                termination of the marriage between the Participant and such person
                shall
                automatically revoke such designation. The foregoing shall not prevent
                the
                Participant from designating a former spouse as a Beneficiary on
                a form
                that is both executed by the Participant and received by the Company
                (i) after the date of the legal termination of the marriage between
                the Participant and such former spouse and (ii) during the
                Participant’s lifetime.

            

    

     

    
      	 	
              (d)

            	
              Any
                designation of a nonspouse Beneficiary by name that is accompanied
                by a
                description of relationship to the Participant shall be given effect
                without regard to whether the relationship to the Participant exists
                either then or at the Participant’s
                death.

            

    

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    
      	 	
              (e)

            	
              Any
                designation of a Beneficiary only by statement of relationship to
                the
                Participant shall be effective only to designate the person or persons
                standing in such relationship to the Participant at the Participant’s
                death.

            

    

     

    
      	 	
              (f)

            	
              The
                Company shall be the sole judge of the content, interpretation and
                validity of a purported Beneficiary
                designation.

            

    

     

    7.7. No
      Spousal Rights.
      No
      spouse, former spouse, Beneficiary or other person shall have any rights or
      interest in the benefits credited under this Plan including, but not limited
      to,
      the right to be the sole Beneficiary or to consent to the designation of
      Beneficiaries (or the changing of designated Beneficiaries) by the
      Participant.

     

    7.8. Death
      Prior to Full Payment.
      If a
      Participant who is receiving installment payments dies before installments
      are
      completed, the remaining installments shall be made to the Beneficiary on the
      same dates payments would otherwise have been made to the Participant. If,
      at
      the death of the Participant, any payment to the Participant was due or
      otherwise pending but not actually paid, the amount of such payment shall be
      paid to the Beneficiary (and shall not be paid to the Participant’s
      estate).

     

    7.9. Facility
      of Payment.
      In case
      of the legal disability, including minority, of an individual entitled to
      receive any payment under this Plan, payment shall be made, if the Committee
      shall be advised of the existence of such condition:

     

    
      	 	
              (a)

            	
              to
                the duly appointed guardian, conservator or other legal representative
                of
                such individual, or

            

    

     

    
      	 	
              (b)

            	
              to
                a person or institution entrusted with the care or maintenance of
                the
                incompetent or disabled Participant or Beneficiary, provided such
                person
                or institution has satisfied the Committee that the payment will
                be used
                for the best interest and assist in the care of such individual,
                and
                provided further, that no prior claim for said payment has been made
                by a
                duly appointed guardian, conservator or other legal representative
                of such
                individual.

            

    

     

    Any
      payment made in accordance with the foregoing provisions of this section shall
      constitute a complete discharge of any liability or obligation of Plan and
      the
      Company therefore.

     

    

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    SECTION
      8

     

    FUNDING
      OF PLAN

     

    8.1. Unfunded
      Obligation.
      The
      obligation of the Employers to make payments under this Plan constitutes only
      the unsecured (but legally enforceable) promise of the Employers to make such
      payments. No Participant or Beneficiary shall have any lien, prior claim or
      other security interest in any property of the Employers. The Employers may,
      but
      shall have no obligation to, establish or maintain any fund, trust or account
      (other than a bookkeeping account or reserve) for the purpose of funding or
      paying the benefits promised under this Plan. If such a fund, trust or account
      is established, the property therein shall remain the sole and exclusive
      property of the Employer that established it. The Employers shall be obligated
      to pay the benefits of this Plan out of their general assets. If, as of the
      close of business on the date of a Change in Control, the aggregate value of
      the
      Participant Accounts exceeds the value of the assets held in a trust that has
      been established by an Employer, then within thirty (30) days of such Change
      in
      Control, such Employer that has established such a trust shall contribute to
      such trust assets having a value at least equal to the amount of such
      excess.

     

    8.2. Corporate
      Obligation.
      Neither
      Company, the Board of Directors of the Company, the Chief Executive Officer,
      the
      Committee, the Employers nor any of their directors, officers, agents or
      employees in any way secure or guarantee the payment of any benefit or amount
      which may become due and payable hereunder to or with respect to any
      Participant. Each person entitled or claiming to be entitled at any time to
      any
      benefit hereunder shall look solely to the assets of the Employers for such
      payments as unsecured general creditors. If, or to the extent that, Accounts
      have been paid to or with respect to a present or former Participant and that
      payment purports to be the payment of a benefit hereunder, such former
      Participant or other person or persons, as the case may be, shall have no
      further right or interest in the other assets of the Employers in connection
      with this Plan. No person shall be under any liability or responsibility for
      failure to effect any of the objectives or purposes of this Plan by reason
      of
      the insolvency of the Employers.

     

    

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    SECTION
      9

     

    AMENDMENT
      AND TERMINATION

     

    9.1. Amendment
      of Plan.
      The
      Company reserves the power to alter, amend or wholly revise the Plan at any
      time
      and from time to time by action of the Board of Directors, and the interest
      of
      each Participant is subject to the powers so reserved; provided, however, that
      no amendment made subsequent to a Change in Control shall be effective to the
      extent that it would have a materially adverse impact on a Participant’s
      reasonably expected economic benefit attributable to compensation deferred
      by
      the Participant prior to the Change in Control. An amendment shall be authorized
      by the Board of Directors and shall be stated in an instrument in writing signed
      in the name of the Company by a person or persons authorized by the Board of
      Directors. After the instrument has been so executed, the Plan shall be deemed
      to have been amended in the manner therein set forth. No amendment to the Plan
      may alter, impair or reduce the benefits credited to any Accounts prior to
      the
      effective date of such amendment without the written consent of any affected
      Participant.

     

    9.2. Termination
      of Plan.
      The
      Company may terminate the Plan at any time by action of the Board of Directors.
      If there is a termination of the Plan with respect to all Participants, the
      Company shall have the right, in its sole discretion, and notwithstanding any
      elections made by the Participant, to amend the Plan to provide for the
      distribution of all Accounts in a lump sum following such Plan termination
      to
      the extent permissible under Section 409A of the Code and related Treasury
      regulations and guidance.

     

    9.3. No
      Oral Amendments.
      No
      modification of the terms of the Plan Statement or termination of this Plan
      shall be effective unless it is approved by action of the Board of Directors.
      No
      oral representation concerning the interpretation or effect of the Plan
      Statement shall be effective to amend the Plan Statement.

     

    

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

    SECTION
      10

     

    DETERMINATIONS
      — RULES AND REGULATIONS

     

    10.1. Determinations.
      The
      Committee shall make such determinations as may be required from time to time
      in
      the administration of this Plan. The Committee shall have the discretionary
      authority and responsibility to interpret and construe the Plan Statement and
      all relevant documents and information, and to determine all factual and legal
      questions under this Plan, including but not limited to the entitlement of
      Participants and Beneficiaries, and the amounts of their respective
      interests.

     

    10.2. Method
      of Executing Instruments.
      Information to be supplied or written notices to be made or consents to be
      given
      by Company or any other person pursuant to any provision of the Plan Statement
      may be signed in the name of Company by any officer or other person who has
      been
      authorized to make such certification or to give such notices or
      consents.

     

    10.3. Claims
      Procedure.
      The
      claim and review procedures set forth in this Section shall be the mandatory
      claim and review procedures for the resolution of disputes and disposition
      of
      claims filed under the Plan. An application for a distribution shall be
      considered as a claim for the purposes of this Section.

     

    10.3.1. Initial
      Claim and Decision.
      An
      individual may, subject to any applicable deadline, file with the Committee
      a
      written claim for benefits under the Plan in a form and manner prescribed by
      the
      Committee. If the claim is denied in whole or in part, the Committee shall
      notify the claimant of the adverse benefit determination within 90 days
      after receipt of the claim. The 90 day period for making the claim determination
      may be extended for 90 days if the Committee determines that special
      circumstances require an extension of time for determination of the claim,
      provided that the Committee notifies the claimant, prior to the expiration
      of
      the initial 90 day period, of the special circumstances requiring an extension
      and the date by which a claim determination is expected to be made. The notice
      of adverse determination shall provide: (i) the specific reasons for the
      adverse determination; (ii) references to the specific provisions of the
      Plan Statement (or other applicable Plan document) on which the adverse
      determination is based; (iii) a description of any additional material or
      information necessary to perfect the claim and an explanation of why such
      material or information is necessary; and (iv) a description of the claim
      and review procedures, including the time limits applicable to such procedure,
      and (v) a statement of the claimant’s right to bring a civil action under
      ERISA section 502(a) following an adverse determination on
      review.

     

    10.3.2. Request
      for Review and Final Decision.
      Within
      60 days after receipt of an initial adverse benefit determination notice, the
      claimant may file with the Committee a written request for a review of the
      adverse determination and may, in connection therewith submit written comments,
      documents, records and other information relating to the claim benefits. Any
      request for review of the initial adverse determination not filed within 60
      days
      after receipt of the initial adverse determination notice shall be untimely.
      If
      the claim, upon review, is denied in whole or in part, the Committee shall
      notify the claimant within 60 days after receipt of the request for a review.
      Such 60-day period may be extended for 60 days if the Committee determines
      that
      special circumstances require an extension and notifies the claimant what
      special circumstances require the extension and the date by which the decision
      is expected. If the extension is due to the claimant’s failure to submit
      information necessary to decide the claim, the claimant shall have 60 days
      to
      provide the necessary information and the period for making the decision shall
      be tolled from the date on which the extension notice is sent until the date
      the
      claimant responds to the information request or, if earlier, the expiration
      of
      60 days. The Committee’s review of a denied claim shall take into account all
      documents and other information submitted by the claimant, whether or not the
      information was submitted before the claim was initially decided. The notice
      of
      denial upon review shall set forth in a manner calculated to be understood
      by
      the claimant: (i) the specific reasons for the denial; (ii) references
      to the specific provisions of the Plan document on which the denial is based;
      (iii) a statement that the claimant is entitled to receive, upon request
      and free of charge, reasonable access to and copies of all documents, records,
      and other information relevant to the claim; and (iv) a statement of the
      claimant’s right to bring a civil action under ERISA
      section 502(a).

     

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

    10.4. Rules
      and Regulations.

     

    10.4.1. Adoption
      of Rules.
      Any
      rule not in conflict or at variance with the provisions hereof may be adopted by
      the Company.

     

    10.4.2. Specific
      Rules.

     

    
      	 	
              (a)

            	
              Any
                decision or determination to be made by the Company shall be made
                by the
                Committee unless delegated as provided for in the Plan, in which
                case
                references in this Section 10 to the Committee shall be treated as
                references to the Committee’s delegate. No inquiry or question shall be
                deemed to be a claim or a request for a review of a denied claim
                unless
                made in accordance with the established claim procedures. The Committee
                may require that any claim for benefits and any request for a review
                of a
                denied claim be filed on forms to be furnished by the Company upon
                request.

            

    

     

    
      	 	
              (b)

            	
              Claimants
                may be represented by a lawyer or other representative at their own
                expense, but Committee reserves the right to require the claimant
                to
                furnish written authorization and establish reasonable procedures
                for
                determining whether an individual has been authorized to act on behalf
                of
                a claimant. A claimant’s representative shall be entitled to copies of all
                notices given to the claimant.

            

    

     

    
      	 	
              (c)

            	
              The
                decision on a claim and on a request for a review of a denied claim
                may be
                provided to the claimant in electronic form instead of in writing
                at the
                discretion of the Company.

            

    

    
      	 	
              (d)

            	
              The
                time period within which a benefit determination will be made shall
                begin
                to run at the time a claim or request for review is filed in accordance
                with the claims procedures, without regard to whether all the information
                necessary to make a benefit determination accompanies the
                filing.

            

    

     

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

     

    
      	 	
              (e)

            	
              The
                claims and review procedures shall be administered with appropriate
                safeguards so that benefit claim determinations are made in accordance
                with governing plan documents and, where appropriate, the plan provisions
                have been applied consistently with respect to similarly situated
                claimants.

            

    

     

    
      	 	
              (f)

            	
              For
                the purpose of this Section, a document, record, or other information
                shall be considered “relevant” as defined in Labor Reg.
                §2560.503-1(m)(8).

            

    

     

    
      	 	
              (g)

            	
              The
                Committee may, in its discretion, rely on any applicable statute
                of
                limitation or deadline as a basis for denial of any
                claim.

            

    

     

    10.4.3. Limitations
      and Exhaustion.

     

    
      	 	
              (a)

            	
              No
                claim shall be considered under these administrative procedures unless
                it
                is filed with the Company within one (1) year after the Participant
                knew
                (or reasonably should have known) of the general nature of the dispute
                giving rise to the claim. Every untimely claim shall be denied by
                the
                Company without regard to the merits of the claim. No suit may be
                brought
                by or on behalf of any Participant or Beneficiary on any matter pertaining
                to this Plan unless the action is commenced in the proper forum before
                the
                earlier of: (i) three (3) years after the Participant knew (or
                reasonably should have known) of the general nature of the dispute
                giving
                rise to the action, or (ii) sixty (60) days after the Participant has
                exhausted these administrative
                procedures.

            

    

     

    
      	 	
              (b)

            	
              These
                administrative procedures are the exclusive means for resolving any
                dispute arising under this Plan. No Participant or Beneficiary shall
                be
                permitted to litigate any such matter unless a timely claim has been
                filed
                under these administrative procedures and these administrative procedures
                have been exhausted, and determinations under these administrative
                procedures (including determinations as to whether the claim was
                timely
                filed) shall be afforded the maximum deference permitted by
                law.

            

    

     

    
      	 	
              (c)

            	
              For
                the purpose of applying the deadlines to file a claim or a legal
                action,
                knowledge of all facts that a Participant knew or reasonably should
                have
                known shall be imputed to every claimant who is or claims to be a
                Beneficiary of the Participant or otherwise claims to derive an
                entitlement by reference to the Participant for the purpose of applying
                the previously specified periods.

            

    

     

    
      
         

      

      
        -24-

        
          

        

      

      
         

      

    

    SECTION
      11

     

    PLAN
      ADMINISTRATION

     

    11.1. Authority.

     

    11.1.1. Company.
      Functions generally assigned to the Company shall be discharged by the
      Committee, except where delegated and allocated as provided herein.

     

    11.1.2. Committee.
      Except
      as hereinafter provided, the Committee may delegate or redelegate and allocate
      and reallocate to one or more persons or to a committee of persons jointly
      or
      severally, and whether or not such persons are directors, officers or employees,
      such functions assigned to the Committee or to the Company generally hereunder,
      as the Committee may from time to time deem advisable.

     

    11.1.3. Board
      of Directors.
      Notwithstanding the foregoing, the Board of Directors of the Company shall
      have
      the exclusive authority (which may not be delegated except to the Committee)
      to
      amend the Plan Statement and to terminate this Plan.

     

    11.2. Conflict
      of Interest.
      If any
      individual to whom authority has been delegated or redelegated hereunder shall
      also be a Participant in this Plan, such Participant shall have no authority
      with respect to any matter specially affecting such Participant’s individual
      interest hereunder or the interest of a person superior to him or her in the
      organization (as distinguished from the interests of all Participants and
      Beneficiaries or a broad class of Participants and Beneficiaries), all such
      authority being reserved exclusively to other individuals as the case may be,
      to
      the exclusion of such Participant, and such Participant shall act only in such
      Participant’s individual capacity in connection with any such
      matter.

     

    11.3. ERISA
      Administrator.
      The
      Company shall be the administrator of this Plan for purposes of
      section 3(16)(A) of ERISA.

     

    11.4. Service
      of Process.
      The
      Secretary of the Company is designated as the appropriate and exclusive agent
      for the receipt of service of process directed to this Plan in any legal
      proceeding, including arbitration, involving this Plan.

     

    

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

    SECTION
      12

     

    CONSTRUCTION

     

    12.1. ERISA
      Status.
      This
      Plan is adopted with the understanding that it is an unfunded plan maintained
      primarily for the purpose of providing deferred compensation for a select group
      of management or highly compensated employees as provided in
      section 201(2), section 301(3) and section 401(a)(1) of ERISA.
      Each provision shall be interpreted and administered accordingly.

     

    12.2. IRC
      Status.
      This
      Plan is intended to be a nonqualified deferred compensation arrangement. The
      rules of section 401(a) et.
      seq.
      of the
      Code shall not apply to this Plan. The rules of section 3121(v) and
      section 3306(r)(2) of the Code shall apply to this Plan. The rules of
      section 409A of the Code shall apply to this Plan to the extent applicable
      and this Plan Statement shall be construed and administered accordingly. The
      Company has affirmatively determined that all amounts deferred under the Plan
      that were earned and vested before January 1, 2005 (i.e.,
      amounts
      specified in Section 1.1.1), shall not be subject to 409A of the Code and
      this Plan Statement shall be construed accordingly. Notwithstanding the
      foregoing, neither the Company nor any of its officers, directors, agents or
      affiliates shall be obligated, directly or indirectly, to any Participant or
      any
      other person for any taxes, penalties, interest or like amounts that may be
      imposed on the Participant or other person on account of any amounts under
      this
      Plan or on account of any failure to comply with any Code section.

     

    12.3. Effect
      on Other Plans.
      This
      Plan shall not alter, enlarge or diminish any person’s employment rights or
      obligations or rights or obligations under any other qualified or nonqualified
      plan. It is specifically contemplated that this Plan will, from time to time,
      be
      amended and possibly terminated.

     

    12.4. Disqualification.
      Notwithstanding any other provision of the Plan Statement or any election or
      designation made under this Plan, any individual who feloniously and
      intentionally kills a Participant shall be deemed for all purposes of this
      Plan
      and all elections and designations made under this Plan to have died before
      such
      Participant. A final judgment of conviction of felonious and intentional killing
      is conclusive for this purpose. In the absence of a conviction of felonious
      and
      intentional killing, the Company shall determine whether the killing was
      felonious and intentional for this purpose.

     

    12.5. Rules
      of Document Construction.

     

    
      	 	
              (a)

            	
              An
                individual shall be considered to have attained a given age on such
                individual’s birthday for that age (and not on the day before).
                Individuals born on February 29 in a leap year shall be considered to
                have their birthdays on February 28 in each year that is not a leap
                year.

            

    

    
      	 	
              (b)

            	
              Whenever
                appropriate, words used herein in the singular may be read in the
                plural,
                or words used herein in the plural may be read in the singular; the
                masculine may include the feminine; and the words “hereof,” “herein” or
                “hereunder” or other similar compounds of the word “here” shall mean and
                refer to the entire Plan Statement and not to any particular paragraph
                or
                Section of the Plan Statement unless the context clearly indicates
                to the
                contrary.

            

    

     

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

     

    
      	 	
              (c)

            	
              The
                titles given to the various Sections of the Plan Statement are inserted
                for convenience of reference only and are not part of the Plan Statement,
                and they shall not be considered in determining the purpose, meaning
                or
                intent of any provision hereof.

            

    

     

    
      	 	
              (d)

            	
              Notwithstanding
                any thing apparently to the contrary contained in the Plan Statement,
                the
                Plan Statement shall be construed and administered to prevent the
                duplication of benefits provided under this Plan and any other qualified
                or nonqualified plan maintained in whole or in part by the
                Employers.

            

    

     

    12.6. References
      to Laws.
      Any
      reference in the Plan Statement to a statute or regulation shall be considered
      also to mean and refer to any subsequent amendment or replacement of that
      statute or regulation unless, under the circumstances, it would be inappropriate
      to do so. The terms “spouse,” “nonspouse,” “married,” “surviving spouse,” and
      other similar terms shall be construed, interpreted and applied on a basis
      consistent with the federal statute known as the Defense of Marriage
      Act.

     

    12.7. Choice
      of Law.
      Except
      to the extent that federal law is controlling, this Plan Statement be construed
      and enforced in accordance with the laws of the State of Minnesota.

     

    12.8. Delegation.
      No
      person shall be liable for an act or omission of another person with regard
      to a
      responsibility that has been allocated to or delegated to such other person
      pursuant to the terms of the Plan Statement or pursuant to procedures set forth
      in the Plan Statement.

     

    12.9. Not
      an Employment Contract.
      This
      Plan is not and shall not be deemed to constitute a contract of employment
      between any Employer and any employee or other person, nor shall anything herein
      contained be deemed to give any employee or other person any right to be
      retained in any Employer’s employ or in any way limit or restrict any Employer’s
      right or power to discharge any employee or other person at any time and to
      treat him without regard to the effect which such treatment might have upon
      him
      as a Participant in this Plan.

     

    12.10. Tax
      Withholding.
      The
      Employers (or any other person legally obligated to do so) shall withhold the
      amount of any federal, state or local income tax, payroll tax or other tax
      required to be withheld under applicable law with respect to any amount payable
      under this Plan. All benefits otherwise due hereunder shall be reduced by the
      amount to be withheld.

     

    12.11. Expenses.
      All
      expenses of administering the benefits due under this Plan shall be borne by
      the
      Employers.

     

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

     

    12.12. Spendthrift
      Provision.
      No
      Participant or Beneficiary shall have any interest in any Account which can
      be
      transferred nor shall any Participant or Beneficiary have any power to
      anticipate, alienate, dispose of, pledge or encumber the same while in the
      possession or control of the Employers. The Company shall not recognize any
      such
      effort to convey any interest under this Plan. No benefit payable under this
      Plan shall be subject to attachment, garnishment, execution following judgment,
      or other legal process before actual payment to such person.

     

    The
      power
      to designate Beneficiaries to receive the Account of a Participant in the event
      of such Participant’s death shall not permit or be construed to permit such
      power or right to be exercised by the Participant so as thereby to anticipate,
      pledge, mortgage or encumber such Participant’s Account or any part thereof, and
      any attempt of a Participant so to exercise said power in violation of this
      provision shall be of no force and effect and shall be disregarded by the
      Employers.

     

    This
      section shall not prevent the Company from exercising, in its discretion, any
      of
      the applicable powers and options granted to it upon a Distribution Event,
      as
      such powers may be conferred upon it by any applicable provision
      hereof.

     

    

      
        	
                Dated:
                  October 23, 2006

              	
                H.B.
                  Fuller Company

              
	 	 
	 	 
	 	
                By:
                  /s/
                  Albert P.L.
                  Stroucken                        
                  

              
	 	 
	 	
                       Its:
                  Chief Executive Officer

              

      

     

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

    APPENDIX
      A

     

    (TRANSITIONAL
      RULES FOR 2005 AND 2006 CREDITS)

     

    Amounts
      credited under the H.B. Fuller Company Key Employee Deferred Compensation Plan
      which relate all or in part to services performed on or after January 1,
      2005, but before January 1, 2007, shall be governed by the terms of the
      Prior Plan Statement (attached to the Plan Statement as Appendix B) subject
      to the exceptions specified in Section 1.1.2 of the Plan and to the
      transitional rules set forth in this Appendix A. The rules set forth in
      this Appendix A are intended to comply with section 409A of the
      Code.

     

    A.1. Eligibility
      and Participation.
      For
      purposes of Section 3.1 of the Prior Plan Statement, an employee shall
      become a Participant in the Plan on the date the employee is determined eligible
      by the Committee.

     

    A.2. Elections
      to Defer Compensation.
      Deferral elections shall apply only to Eligible Compensation for services
      performed during the calendar year beginning after a Participant’s election is
      filed and, to the extent the Eligible Compensation is included in the first
      paycheck of the next calendar year, for services performed in the current year.
      Deferral elections with respect to STIP Awards and PUP Awards shall be made
      prior to the calendar year in which the performance period on which the award
      is
      based ends but in no event less than six (6) months before the performance
      period ends. Deferral elections for purposes of this transitional rule shall
      include the election of a form of distribution and the election, if any, of
      a
      specified date under Section 6.1(g) of the Prior Plan
      Statement.

     

    A.3. Distribution
      Events.

     

    A.3.1. For
      purposes of Section 6.1(b) of the Prior Plan Statement, Disability has the
      meaning set forth in Section 1.2.9 of the Plan Statement.

     

    A.3.2. For
      purposes of Section 6.1(d) of the Prior Plan Statement, the first date on
      which the Participant is no longer an employee of any Participating Employer
      shall be the date on which the Participant has had a Separation from Service
      as
      defined in Section 1.2.20 of the Plan Statement.

     

    A.3.3. Section 6.1(e)
      (distribution upon Plan termination) shall be deleted and have no
      effect.

     

    A.3.4. Section 6.1(f)
      (distribution upon termination for cause) shall be deleted and have no
      effect.

     

    A.3.5. Section 6.2(e)
      (Code §162(m) delay) shall be replaced by the rule in Section 7.5.2 of the
      Plan Statement.

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    A.3.6. Section 6.3
      (early withdrawal with 10% forfeiture) shall be deleted and have no
      effect.

     

    A.3.7. Section 6.4
      (lump sum distribution to pay taxes) shall be replaced by the rule in
      Section 7.5.4 of the Plan Statement.

     

    A.3.8. Section 6.5
      (parachute payment) shall be replaced by the rules in Section 7.5.3 of the
      Plan Statement.

     

    A.3.9. Section 6.6
      (delay of distribution upon termination for cause) shall be deleted and have
      no
      effect.

     

    A.4. Subsequent
      Election Changes.
      The
      third and fourth sentences in Section 6.2(c) of the Prior Plan Statement
      related to changing an election of form of payment shall be replaced completely
      by the rules in Section 3.6 of the Plan Statement. Any change in an
      election of a specified date for distribution under Section 6.1(g) of the
      Prior Plan Statement shall be governed under the rules in Section 3.6 of
      the Plan Statement.

     

    A.5. Reduction
      in Payment Period.
      The
      sixth sentence in Section 6.2(c) in the Prior Plan Statement related to
      discretionary reduction in the period over which installment payments would
      have
      been made shall be deleted and have no effect.

     

    A.6. Plan
      Termination.
      The
      rules in Section 14.1 of the Prior Plan Statement concerning Plan
      termination shall be replaced by the rules concerning Plan termination in
      Section 9.2 of the Plan Statement.

     

    

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    

    APPENDIX
      B

     

    (RULES
      FOR PRE-2005 DEFERRALS - “PRIOR PLAN STATEMENT”)

     

     

     

     

    
 

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

     

    

      H.B.
        FULLER COMPANY

      KEY
        EMPLOYEE DEFERRED COMPENSATION PLAN

      

      

      H.B.
        Fuller Company, a Minnesota corporation, hereby establishes the H.B. Fuller
        Company Key Employee Deferred Compensation Plan, effective as of October
        14,
        1999, in order to provide deferred compensation to certain key employees
        of H.B.
        Fuller Company. The purpose of the H.B. Fuller Key Employee Deferred
        Compensation Plan is to assist H.B. Fuller Company in retaining key employees,
        encouraging their long term commitment to the company’s success, and attracting
        key employees by offering them an opportunity to defer compensation and
        participate in the success of H.B. Fuller Company, and allowing them to share
        in
        increases in the value of H.B. Fuller Company.

      

      ARTICLE
        I

      

      DEFINITIONS

      

      Section
        1.1 - Definitions.
        When
        used in this document with initial capital letters, the following terms have
        the
        meanings indicated unless a different meaning is plainly required by the
        context:

      

      (a) “Account”
or
        “Accounts”
means
        the account or accounts established and maintained for a Participant pursuant
        to
        Article IV of the Plan. A Participant’s Accounts shall consist of the
        Participant’s Deferred Compensation Account, the Participant’s Company Stock
        Account and the Participant’s Company Matching Stock Account.

      

      (b) “Allocation
        Request Form”
means
        such form or forms as may be approved by the Company from time to time for
        use
        by a Participant to request: (i) an allocation of certain deferred
        compensation and/or an allocation or reallocation of a Participant’s Deferred
        Compensation Account among available investment options pursuant to
        Section 7.2(c), and (ii) that certain deferred compensation be
        allocated to the Participant’s Company Stock Account pursuant to
        Section 7.1.

      

      (c) “Board
        of Directors”
means
        the Board of Directors of H.B. Fuller Company.

      

      (d) “Change
        in Control”
        means:

      

      
        	 	 	
                (i)

              	
                a
                  change in the control of the Company of a nature that would be
                  required to
                  be reported in accordance with Regulation 14A promulgated under the
                  Securities Exchange Act of 1934 (the “Exchange Act”), whether or not the
                  Company is then subject to such reporting
                  requirement;

              

      

      

      
        	 	 	
                (ii)

              	
                a
                  public announcement (which, for purposes hereof, shall include,
                  without
                  limitation, a report filed pursuant to section 13(d) of the Exchange
                  Act) that any individual, corporation, partnership, association,
                  trust or
                  other entity becomes the beneficial owner (as defined in
                  Rule 13(d)(3) promulgated under the Exchange Act), directly or
                  indirectly, of securities of the Company representing 15% or more
                  of the
                  Voting Power of the Company then
                  outstanding;

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	 	 	
                (iii)

              	
                the
                  individuals who, as of the date of this Plan, are members of the
                  Board of
                  Directors of the Company (the “Incumbent Board”) cease for any reason to
                  constitute at least a majority of the Board (provided, however,
                  that if
                  the election or nomination for election by the Company’s shareholders of
                  any new director was approved by a vote of at least a majority
                  of the
                  Incumbent Board, such new director shall be considered to be a
                  member of
                  the Incumbent Board);

              

      

      

      
        	 	 	
                (iv)

              	
                the
                  approval of the shareholders of the Company of (A) any consolidation,
                  merger or statutory share exchange of the Company with any person
                  in which
                  the surviving entity would not have as its directors at least 60%
                  of the
                  Incumbent Board and as a result of which those persons who were
                  shareholders of the Company immediately prior to such transaction
                  would
                  not hold, immediately after such transaction, at least 60% of the
                  Voting
                  Power of the Company then outstanding or the combined voting power
                  of the
                  surviving entity’s then outstanding voting securities; (B) any sale,
                  lease, exchange or other transfer in one transaction or series
                  of related
                  transactions substantially all of the assets of the Company; or
                  (C) the
                  adoption of any plan or proposal for the complete or partial liquidation
                  or dissolution of the Company; or

              

      

      

      
        	 	 	
                (v)

              	
                a
                  determination by a majority of the members of the Incumbent Board,
                  in
                  their sole and absolute discretion, that there has been a Change
                  in
                  Control of the Company.

              

      

      

      For
        purposes of this definition, “Voting Power” when used with reference to the
        Company shall mean the voting power of all classes and series of capital
        stock
        of the Company now or hereafter authorized other than the voting power of
        any of
        the shares of Series A Preferred Stock outstanding as of the date of this
        Plan.

      

      (e) “Code”
means
        the Internal Revenue Code of 1986, as amended.

      

      (f) “Common
        Stock”
means
        the Common Stock, par value $1.00 per share, of H.B. Fuller Company as such
        stock may be reclassified, converted or exchanged by reorganization, merger
        or
        otherwise.

      

      (g) “Company”
means
        the H.B. Fuller Company, a Minnesota corporation.

      

      (h) “Company
        Matching Stock Account”
means
        the Account established and maintained for a Participant as a record of the
        matching units measured by the value of Company Common Stock credited to
        an
        Account for the Participant.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (i) “Company
        Stock Account”
means
        the Account established and maintained for a Participant as a record of the
        Participant’s hypothetical investments in units of Company Common
        Stock.

      

      (j) “Compensation
        Committee”
means
        the Compensation Committee of the Board of Directors or such other person
        or
        persons as may be designated by the Board of Directors to act on behalf of
        the
        Board of Directors in the administration of the Plan.

      

      (k) “Deferral
        Election Form”
means
        such form or forms as may be approved by the Compensation Committee from
        time to
        time for use by a Participant to elect to defer compensation under the
        Plan.

      

      (l) “Deferred
        Compensation Account”
means
        the Account established and maintained for a Participant as a record of the
        amounts deferred by the Participant under the Plan and the Participant’s
        hypothetical investments in available investment options.

      

      (m) “Disability”
means
        the total and permanent disability of a Participant which entitles the
        Participant to a disability benefit under a disability program sponsored
        or
        maintained by the Participant’s Participating Employer; provided, that if no
        such program is applicable to the Participant, then “Disability” with respect to
        such Participant means that, based on medical evidence reasonably satisfactory
        to the Compensation Committee, the Participant is totally and permanently
        unable
        to engage in any occupation or gainful employment for which the Participant
        is
        reasonably suited by background, training, education or experience.

      

      (n) “Discretionary
        Amounts”
means
        the units measured by the value of Company Common Stock credited to a
        Participant’s Account pursuant to Section 4.4.

      

      (o) “Distributable
        Event”
means
        an event identified as such in Section 6.1.

      

      (p) “Eligible
        Compensation”

      

      
        	 	 	
                (i)

              	
                The
                  “Eligible Compensation” of a Participant for any period means, except as
                  provided in the succeeding paragraphs of this subsection, the sum
                  of all
                  remuneration paid to the Participant during such period for service
                  as an
                  employee of a Participating Employer as base salary and wages,
                  overtime
                  pay, shift differential premium, commissions, cash bonuses (other
                  than
                  vacation bonuses), sick pay and short-term disability benefits,
                  increased
                  by the amount of pre-tax contributions made on behalf of the Participant
                  by a Participating Employer pursuant to the terms of the H.B. Fuller
                  Company Thrift Plan for that period and by the net amount of compensation
                  reductions experienced by the Participant during such period under
                  any
                  cafeteria plan described in section 125 of the Code maintained by the
                  Participating Employer. Eligible Compensation will not include
                  amounts
                  deferred or paid under an agreement between the Participating Employer
                  and
                  the Participant that is not a plan qualified under section 401(a) of
                  the Code except this Plan, any matching contributions made pursuant
                  to the
                  provisions of the H.B. Fuller Company Thrift Plan, contributions
                  made or
                  benefits (other than short-term disability benefits) paid by the
                  Participating Employer under any other employee benefit plan, expatriate
                  premiums or amounts realized by the Participant upon the exercise
                  of a
                  nonqualified stock option, the lapse of restrictions applicable
                  to
                  restricted stock or any disposition of stock acquired under a qualified
                  or
                  incentive stock option.

              

      

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
        	 	 	
                (ii)

              	
                A
                  Participant’s Eligible Compensation for any year shall be determined
                  without regard to section 401(a)(17) of the
                  Code.

              

      

      

      
        	 	 	
                (iii)

              	
                Notwithstanding
                  the provisions of paragraph (i) above, a Participant’s Eligible
                  Compensation will not include:

              

      

      

      
        	 	 	 	
                (A)

              	
                any
                  remuneration not paid in cash;

              

      

      

      
        	 	 	 	
                (B)

              	
                the
                  value of life insurance coverage included in the Participant’s wages under
                  section 79 of the Code;

              

      

      

      
        	 	 	 	
                (C)

              	
                any
                  car allowance or moving expense or mileage
                  reimbursement;

              

      

      

      
        	 	 	 	
                (D)

              	
                severance
                  pay;

              

      

      

      
        	 	 	 	
                (E)

              	
                payments
                  under any plan of deferred compensation except this Plan;
                  

              

      

      

      
        	 	 	 	
                (F)

              	
                any
                  benefit under any qualified or nonqualified stock option or stock
                  purchase
                  plan; or

              

      

      

      
        	 	 	 	
                (G)

              	
                any
                  awards under the Short-Term Incentive Plan or the Performance Unit
                  Plan.

              

      

      

      (q) “ERISA”
means
        the Employee Retirement Income Security Act of 1974, as amended.

      

      (r) “Participant”
means
        an individual identified as such under Article III of the
        Plan.

      

      (s) “Participating
        Employer”
means
        any employer participating in the Plan pursuant to Article II of the
        Plan.

      

      (t) “Performance
        Unit Plan”
means
        the H.B. Fuller Company Performance Unit Plan, as amended.

      

      (u) “Plan”
means
        the H.B. Fuller Company Key Employee Deferred Compensation Plan, as of its
        original effective date, including any amendments thereto, which is unfunded
        and
        maintained by H.B. Fuller Company and its affiliated companies primarily
        for the
        purpose of providing deferred compensation for a select group of management
        or
        highly compensated employees of H.B. Fuller Company.

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (v) “Short-Term
        Incentive Plan”
means
        the H.B. Fuller Company Short-Term Incentive Plan providing annual cash
        incentive opportunities.

      

      (w) “Trust”
means
        the Trust or Trusts described in Section 12.4. Any such Trust shall
        constitute an unfunded arrangement and shall not affect the status of the
        Plan
        as an unfunded plan. Participants and their beneficiaries shall have no
        beneficial ownership interest in any assets of any such Trust.

      

      (x) “Trustee”
means
        the corporation or person or persons selected by the Company to serve as
        Trustee
        for a Trust or Trusts.

      

      (y) “Vested”
means
        an interest in the benefit described under the Plan which may be payable
        to or
        on behalf of the Participant in accordance with the terms of the
        Plan.

      

      ARTICLE
        II

      

      PARTICIPATING
        EMPLOYERS

      

      Section
        2.1 - Eligibility. To
        be
        eligible to adopt and participate in the Plan, an employer must be a member
        of
        the “controlled group” of corporations, which shall be based upon section 414 of
        the Code except that the phrase “at least 50 percent” shall be substituted for
        the phrase “at least 80 percent” each place it appears in sections 414 and
        1563(a), that includes the Company.

      

      Section
        2.2 - Participation
        Requirements. The
        Company, the sponsor of the Plan, and any other affiliated company that is
        or
        becomes eligible to adopt the Plan and become a Participating Employer pursuant
        to Section 2.1 of the Plan may adopt the Plan and become a Participating
        Employer in the Plan provided that such affiliated company declares in writing
        to be subject to the terms and conditions of the Plan and files such declaration
        with the Compensation Committee. The date on which such eligible company
        may
        become a Participating Employer in the Plan shall be the date such declaration
        is filed with the Compensation Committee or such later date specified in
        the
        declaration. Each of the Participating Employers agrees to make payments
        of
        their allocable portion of the benefits provided under the Plan to their
        respective Participants. The respective benefit payment obligations of the
        Participating Employers are not secured in any way. Such obligations constitute
        no more than unfunded and unsecured promises of payment and performance.
        Each
        Participating Employer shall be responsible for, and shall have the obligation
        of, its allocable share of costs and expenses incurred with respect to the
        operation and administration of the Plan, and shall be responsible for, and
        have
        the obligation of, the payment of any benefits payable under the Plan with
        respect to any employees of such Participating Employer who are Participants
        in
        the Plan and eligible to receive benefits under the terms of the
        Plan.

      

      Section
        2.3 - Recordkeeping
        and Reporting.
        Each
        Participating Employer shall maintain records sufficient to determine the
        benefits (and the compensation sources of such benefits) which may become
        payable to or with respect to any employee of such Participating Employer
        who is
        a Participant in the Plan and to provide such Participants any reports which
        may
        be required under the terms of the Plan or by law.

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      Section
        2.4 - Termination
        of Participation.
        A
        Participating Employer, other than the Company, may withdraw from participation
        in the Plan at any time by providing the Company with 30 days advance written
        notice of such withdrawal from participation and the effective date of such
        Participating Employer’s withdrawal, which 30-day notice period may be waived by
        the Company. In addition, the Company may terminate a Participating Employer’s
        participation in the Plan by providing such Participating Employer with 30
        days
        advance written notice, which 30-day notice period may be waived by the
        Participating Employer. A Participating Employer which terminates its
        participation in the Plan shall remain obligated under the Plan with respect
        to
        deferrals made prior to such termination by its Participants (including
        subsequent investment performance adjustments), unless otherwise expressly
        agreed by the Company with the Company fully assuming such
        obligations.

      

      Section
        2.5 - Separate
        Accounting.
        The
        Company shall establish and maintain separate Accounts for each of the
        Participating Employers and their respective Participants. Such separate
        accounting is intended to comply with section 404(a)(5) of the Code and
        section 1.404(a)-12 of the Treasury Regulations (which provide that an
        employer can deduct the amounts contributed to a nonqualified plan in the
        taxable year in which an amount attributable to the contribution is includable
        in the gross income of employees participating in the plan, but, in the case
        of
        a plan in which more than one employee participates only if separate accounts
        are maintained for each employee).

      

      ARTICLE
        III

      

      ELIGIBILITY
        AND PARTICIPATION

      

      Section
        3.1 - Eligibility.
        Each
        executive or key level employee of a Participating Employer who is paid at
        the
        pay grade of at least thirty-two (32) shall be eligible to participate in
        the
        Plan effective as of the later of the effective date of the Plan or the date
        on
        which such individual first achieves the pay grade of at least thirty-two
        (32);
        provided, however, that the Compensation Committee shall determine pay grade
        status and determine eligibility to participate in the Plan with respect
        to each
        such executive and key level employee. In addition, the Compensation Committee
        may by express action designate other management level or highly compensated
        employees of the Participating Employers as eligible to participate in the
        Plan.
        If the Compensation Committee designates a management level or highly
        compensated employee of a Participating Employer as eligible to become a
        Participant in the Plan, the Compensation Committee shall inform the employee
        in
        writing of such designation and the date on which the employee shall become
        a
        Participant in the Plan.

      

      Section
        3.2 - Participation.
        An
        individual eligible to participate in the Plan shall become a Participant
        upon
        the filing with the Compensation Committee of a completed Deferral Election
        Form
        and acceptance of such form by the Compensation Committee. The name of each
        individual eligible to participate in the Plan and the date on which such
        individual becomes a Participant in the Plan shall be recorded on Exhibit
        A,
        which exhibit is attached hereto and incorporated herein by reference and
        which
        shall be revised by the Compensation Committee from time to time to reflect
        the
        operation of the Plan. Once an individual becomes a Participant in the Plan,
        the
        individual shall remain a Participant until the benefits which may be payable
        to
        the individual under the Plan have been distributed to or on behalf of the
        individual.

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      Section
        3.3 - Suspension
        of Eligibility.
        The
        Compensation Committee may in its discretion determine that a Participant
        will
        no longer be eligible to participate in the Plan and in such event, the
        Participant’s compensation deferral election made in accordance with
        Article IV will immediately terminate and no additional amounts shall be
        credited to his or her Accounts under Sections 7.1(a), (b), (c) and 7.2(a)
        until
        such time as the individual is again determined to be eligible to participate
        in
        the Plan by the Compensation Committee and makes a new election under
        Article IV. However, the Accounts of such Participant shall continue to be
        adjusted by the other provisions of Sections 7.1 and 7.2 until fully
        distributed.

      

      ARTICLE
        IV

      

      BENEFITS

      

      Section
        4.1 - Deferred
        Compensation.
        A
        Participant may elect to defer receipt of part or all of any one or more
        of the
        following items of compensation:

      

      
        	 	
                (a)

              	
                Eligible
                  Compensation;

              

      

      

      
        	
              	(b)	
                Short-Term
                  Incentive Plan awards; and

              

      

      

      
        	
              	(c)	
                Performance
                  Unit Plan awards.

              

      

      

      A
        Participant may defer an item of compensation only to the extent that the
        Participant is entitled to receive such item of compensation. Upon such
        deferral, the Participant will have no further right to such deferred
        compensation other than as provided under the Plan. Such deferred compensation
        shall be the record of the value of such deferred compensation credited to
        a
        Participant’s Account and shall be used solely for accounting
        purposes.

      

      Section
        4.2 - Form
        and Effectiveness of Deferral Elections.

      

      (a) Each
        year
        a Participant may elect to defer up to 25%, or in special circumstances such
        greater percentage as determined by the Compensation Committee based upon
        whether the compensation paid to the Participant would be fully deductible
        for
        federal or state income tax purposes under Code section 162(m), of his or
        her Eligible Compensation for the following calendar year. The Participant
        is
        required to file his or her deferral election before December 31 specifying
        the
        portion of the Eligible Compensation to be earned in the succeeding calendar
        year that is to be deferred. For the first year of operation of the Plan,
        any
        deferral election must be made prior to January 1, 2000, the beginning of
        the
        period of service for which the compensation is payable. 

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      (b) An
        election by a Participant to defer a portion of his or her Eligible Compensation
        pursuant to subsection (a) must be made by the Participant for the calendar
        year beginning after the calendar year in which occurs the date of said election
        and the amounts so deferred shall be paid only as provided in this Plan.
        Such an
        election must be irrevocable and must be made in the form and manner prescribed
        by the Compensation Committee and shall not be effective unless accepted
        by the
        Compensation Committee. The Participant may change the amount of, or suspend,
        future deferrals with respect to Eligible Compensation otherwise payable
        to him
        or her for calendar years beginning after the date of change or suspension
        as he
        or she may specify by written notice to the Compensation Committee. If a
        Participant elects to change the amount of, or suspend, deferrals, the
        Participant may make a new deferral election provided that any new election
        to
        defer payment of Eligible Compensation must be made before the beginning
        of the
        period of service for which the Eligible Compensation is payable, which period
        is the calendar year. The election to defer shall be irrevocable as to the
        deferred Eligible Compensation for the period for which the election is made
        and
        shall not be effective unless accepted by the Compensation
        Committee.

      

      (c) In
        addition to amounts deferred by a Participant pursuant to subsections (a)
        and
        (b), each year a Participant may elect to defer all or a portion of any
        Short-Term Incentive Plan award and all or a portion of any Performance Unit
        Plan award that would otherwise be payable to the Participant under those
        plans.
        An election by a Participant to defer any award that would otherwise be payable
        under either the Short-Term Incentive Plan or the Performance Unit Plan must
        be
        made before the first day of the calendar year in which occurs the end of
        the
        fiscal year of the Participant’s Participating Employer for which such award is
        determined. Such a deferral election is irrevocable and must be made in the
        form
        and manner prescribed by the Compensation Committee and shall not be effective
        unless accepted by the Compensation Committee. The period of deferral and
        form
        of distribution of an award shall be determined in accordance with the elections
        made under this subsection (c) and in accordance with the provisions of
        this Plan.

      

      (d) Notwithstanding
        any provision herein to the contrary, if the Participant is eligible to
        participate in the H.B. Fuller Company Thrift Plan, the amount deferred by
        such
        Participant under this Section 4.2 of the Plan for any year shall be conditioned
        upon the Participant having made the maximum elective deferrals under
        section 402(g) of the Code or permitted under the terms of the H.B. Fuller
        Company Thrift Plan. If the Participant is eligible to participate in the
        H.B.
        Fuller Company Thrift Plan, to be eligible to make deferrals under the Plan
        for
        any calendar year, such Participant must have elected to make the maximum
        elective deferrals under section 402(g) of the Code or permitted under the
        terms of the H.B. Fuller Company Thrift Plan. The calculation of whether
        the
        Participant has made the required maximum contribution under the H.B. Fuller
        Company Thrift Plan will be made as of the beginning of the calendar year
        to
        which deferrals under the Plan are applicable. Once that determination has
        been
        made, the Participant may make deferrals under the Plan. No elective
        contribution or qualified employer matching contribution made with respect
        to
        the H.B. Fuller Company Thrift Plan will be deferred or contributed to the
        Plan
        or a Trust.

      

      Section
        4.3 - Matching
        Amounts.
        If for
        any year a Participant who is a participant in the H.B. Fuller Company Thrift
        Plan makes an election under Section 4.2 to defer Eligible Compensation or
        any Short-Term Incentive Plan award or any Performance Unit Plan award pursuant
        to the provisions of Section 4.2, that Participant’s Participating Employer
        will credit the Participant’s Company Matching Stock Account with matching units
        which shall be measured by the value of Company Common Stock and which will
        be
        calculated for the year as follows:

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (a) three
        percent (3%) of such Participant’s Eligible Compensation for the portion of the
        year during which the Participant had deferred Eligible Compensation credited
        to
        his or her Account under the terms of the Plan, and such Participant’s
        Short-Term Incentive Plan award and Performance Unit Plan award determined
        for
        the year; 

      

      (b) the
        amount determined in subsection (a) of this Section 4.3 shall be reduced
        by the
        amount of the employer matching contribution actually made by the Participant’s
        Participating Employer to the H.B. Fuller Company Thrift Plan on behalf of
        the
        Participant.

      

      Section
        4.4 - Discretionary
        Amounts.
        In
        addition to amounts deferred by a Participant under Section 4.2 and the
        matching amounts determined under Section 4.3, a Participating Employer may
        from time to time, in its sole discretion, credit a Participant’s Company Stock
        Account with additional amounts (denominated in units which shall be measured
        by
        the value of Company Common Stock). Such additional amounts shall be authorized
        for such purpose or purposes as the Participating Employer may deem appropriate,
        including, without limitation, as mirror employer matching contributions
        or
        contributions made by the Participating Employer with respect to the H.B.
        Fuller
        Company Thrift Plan.

      

      Section
        4.5 - Participant
        Accounts.
        A
        Company Stock Account, a Deferred Compensation Account and a Company Matching
        Stock Account shall be established and maintained for each Participant. The
        Company Stock Account and the Company Matching Stock Account shall be credited
        with units which shall be measured by the value of the shares of Common Stock.
        The Deferred Compensation Account shall be credited with amounts which shall
        be
        measured in dollars. The Company Stock Account shall be credited as described
        in
        Section 7.1 for deferred amounts attributable to (a) awards under the
        Short-Term Incentive Plan, and the Performance Unit Plan as may be allocated
        to
        the Company Stock Account pursuant to Section 7.1, (b) Discretionary
        Amounts, and (c) such amounts of Eligible Compensation as may be allocated
        to
        the Company Stock Account pursuant to Section 7.1. The Company Matching
        Stock Account shall be credited as described in Section 7.1(c) for deferred
        amounts attributable to (a) the matching amounts determined under
        Section 4.3, and (b) the matching amounts determined under
        Section 7.1. The Deferred Compensation Account shall be credited as
        described in Section 7.2 for any deferred amounts attributable to
        (a) such amounts of Eligible Compensation as may be allocated to the
        Deferred Compensation Account pursuant to Section 7.2, and (b) Short-Term
        Incentive Plan awards and Performance Unit Plan awards as may be allocated
        to
        the Deferred Compensation Account pursuant to Section 7.2.

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      ARTICLE
        V

      

      VESTING

      

      Section
        5.1 - Vested
        Benefit.
        A
        Participant shall be considered to be 100% Vested in the units and amounts
        credited to his or her Accounts under the Plan.

      

      Section
        5.2 - Limitation
        on Benefits.
        The
        benefits that may be payable to or on behalf of a Participant under the Plan
        shall not exceed a cash payment equal to the value of the amounts credited
        to
        the Participant’s Deferred Compensation Account and a distribution of that
        number of shares of Common Stock equal to the number of units credited to
        the
        Participant’s Company Stock Account (with any fractional unit being rounded to
        the next highest whole unit) and the Participant’s Company Matching Stock
        Account (with any fractional unit being rounded to the next highest whole
        unit).

      

      ARTICLE
        VI

      

      DISTRIBUTIONS

      

      Section
        6.1 - Distributable
        Events.
        A
        Participant’s Distributable Event shall be the first to occur of the following
        events:

      

      
        	
              	(a)	
                The
                  Participant’s sixty-fifth (65th)
                  birthday;

              

      

      

      
        	 	
                (b)

              	
                Disability
                  (as defined in
                  Section 1.1(m));

              

      

      

      
        	 	
                (c)

              	
                The
                  Participant’s death;

              

      

      

      
        	 	
                (d)

              	
                The
                  first date on which the Participant is no longer an employee of
                  any
                  Participating Employer;

              

      

      

      
        	 	
                (e)

              	
                The
                  effective date of the termination of the Plan pursuant to
                  Section 14.1; 

              

      

      

      
        	 	
                (f)

              	
                Termination
                  for cause subject to and in accordance with Section 6.6;
                  or

              

      

      

      
        	 	
                (g)

              	
                Such
                  other date as elected and specified by the Participant in the Distribution
                  of Benefits Form, which election is subject to approval by the
                  Compensation Committee and which shall be made only at the time
                  of the
                  Participant’s initial elections on such form and if the election is
                  approved, it shall be irrevocable.

              

      

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      Section
        6.2 - Distribution
        of Benefits.

      

      (a) Distribution
        Commencement Date.
        Except
        any withdrawals made pursuant to Section 6.3 which shall be distributed in
        accordance with that section, distribution of a Participant’s Plan benefit shall
        commence as of the first day of the second calendar month immediately following
        the calendar month in which the Participant’s applicable Distributable Event
        occurs.

      

      (b) Form
        of Distribution.
        Benefits attributable to the value of the Deferred Compensation Account shall
        be
        delivered to the Participant in dollars. Benefits attributable to the Company
        Stock Account and the Company Matching Stock Account shall be delivered to
        the
        Participant in the form of shares of Common Stock subject to the approval
        of the
        Plan by the shareholders during the annual meeting of shareholders in April
        2000. To the extent that the distribution is in the form of shares of Common
        Stock, such delivery shall be subject to all federal or state securities
        laws or
        other rules and regulations as determined by the Company to be
        applicable.

      

      (c) Payment
        Options.
        In the
        event a Participant becomes eligible to receive a payment of benefits under
        the
        Plan, the benefits payable to the Participant or, in the event of the
        Participant’s death, to the Participant’s designated beneficiary under the Plan
        shall be paid in accordance with one of the payment options available under
        the
        Plan as elected by the Participant on the Participant’s Deferral Election Form.
        The Participant may elect separate payment options with respect to the Deferred
        Compensation Account, the Company Stock Account and the Company Matching
        Stock
        Account. A Participant may change payment options by electing another payment
        option available under the Plan on a subsequent Deferral Election Form, but
        such
        change in payment option will not be effective until the lapse of a period
        of
        twelve (12) months following the date on which the Deferral Election Form
        was
        accepted by the Compensation Committee. Further, in no event will any such
        change in payment option be effective if such change is elected during the
        calendar year in which the Distributable Event occurs and no further elections
        may be made once a Distributable Event occurs. The payment options include
        installment payments over a period certain, a lump sum payment, and such
        other
        payment method as may be specified by the Participant and accepted by the
        Compensation Committee. The Compensation Committee may, in its sole discretion,
        reduce the payment period over which payments would have been made pursuant
        to
        the payment option elected by the Participant (including consolidation into
        a
        lump sum); provided, that in the event of a Change in Control, no reduction
        of a
        payment period may be made prior to the fifth anniversary of such Change
        in
        Control. Absent a payment option election, the Compensation Committee shall
        direct the payment of any benefits payable under the Plan to or on behalf
        of the
        Participant in eleven (11) substantially equal annual installment payments
        to
        the Participant, or in the event of the Participant’s death, to the
        Participant’s designated beneficiary under the Plan.

      

      (d) Application
        for Distribution.
        A
        Participant shall not be required to make application to receive payment.
        Distribution shall not be made to any beneficiary, however, until such
        beneficiary shall have filed a written application for benefits in a form
        acceptable to the Compensation Committee and such application shall have
        been
        approved by the Compensation Committee.

      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      (e) Code
        Section 162(m) Delay.
        If the
        Compensation Committee determines that delaying the time of the initial payments
        are made or commenced would increase the probability that such payments would
        be
        fully deductible for federal or state income tax purposes, the Company may
        unilaterally delay the time of the making or commencement of payments for
        up to
        twenty-four (24) months after the date such payments would otherwise be
        payable.

      

      Section
        6.3 - Early
        Withdrawals.
        Notwithstanding any provision in this Plan to the contrary, a Participant
        may
        request, by providing a written request to the Compensation Committee, a
        withdrawal prior to the distribution date under the Plan of all or any portion
        of his or her benefits from any of his or her Accounts under the Plan in
        increments of 25% (of aggregate Account value). If such a request is approved
        by
        the Compensation Committee, which decision by the Compensation Committee
        shall
        be made in its sole discretion on a case by case basis, a distribution of
        such
        benefits may be made to the Participant subject to a penalty for such an
        early
        withdrawal at any point equal to a six-month period of nonparticipation (during
        which no additional amounts will be credited to the Participant’s Accounts under
        Sections 7.1(a), (b), (c) and 7.2(a) of the Plan) for each 25% increment
        withdrawn. The nonparticipation period would begin as of the date on which
        the
        request made by the Participant is approved by the Compensation Committee.
        As a
        result, a Participant withdrawing his or her entire benefit from all of his
        or
        her Accounts would be excluded from eligibility to participate in the Plan
        for a
        24-month period beginning as of the date of such approval by the Compensation
        Committee. In addition, a penalty of 10% of the amount withdrawn will be
        imposed
        on any withdrawal made pursuant to this Section 6.3.

      

      Section
        6.4 - Distributions
        As a Result of Tax Determination.
        Notwithstanding
        any provision in this Plan to the contrary, if, at any time, a court or the
        Internal Revenue Service determines that any amounts or units credited to
        a
        Participant’s Accounts under the Plan or Trust are includable in the gross
        income of the Participant and subject to tax, the Compensation Committee
        may, in
        its sole discretion, permit a lump sum distribution of an amount equal to
        the
        amounts or units determined to be includable in the Participant’s gross
        income.

      

      Section
        6.5 - No
        Parachute Payment.
        An
        event
        described in Sections 6.1(d), (e), and (g) shall not constitute a Distributable
        Event if the Compensation Committee in its reasonable discretion following
        consultation with appropriate tax and/or legal advisors reasonably determines
        that such distribution will likely constitute a parachute payment for purposes
        of section 280G of the Code. Furthermore, if such event occurs subsequent
        to a Change in Control, the Compensation Committee shall, at the Company’s
        expense, promptly request a written opinion of the “independent auditor” with
        respect to the applicability of such section 280G and such event shall not
        constitute a Distributable Event unless and until the independent auditor
        delivers its written unqualified opinion, a copy of which shall be provided
        to
        the Participant, to the effect that a distribution of benefits as a result
        of
        such event will not constitute a parachute payment under section 280G of
        the Code. As used in this Section 6.5, the term “independent auditor” means
        the firm of certified public accountants which at the time of the Change
        in
        Control had been most recently engaged by the Company or such other comparable
        and nationally recognized firm of certified public accountants as may be
        selected by the Compensation Committee in its reasonable
        discretion.

      

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      Section
        6.6 - Distribution
        Upon Termination For Cause.
        In
        the
        event that a Participant is terminated for “cause” (as defined below), the
        Company may, in its discretion, treat such termination or any date subsequent
        thereto as a Distributable Event. For purposes of this Plan, termination
        for
“cause” means termination based on any of the following:

      

      (a) The
        willful and continued failure by the Participant to substantially perform
        the
        Participant’s duties with a Participating Employer (other than any such failure
        resulting from the Participant’s incapacity due to physical or mental illness)
        after a written demand for substantial performance is delivered to the
        Participant specifically identifying the manner in which the Participant
        has not
        substantially performed the Participant’s duties;

      

      (b) The
        engaging by the Participant in willful misconduct which is demonstrably
        injurious to any one or more of the Participating Employers monetarily or
        otherwise; or

      

      (c) The
        conviction of the Participant of a felony.

      

      ARTICLE
        VII

      

      VALUATION
        OF BENEFITS

      

      Section
        7.1 - Company
        Stock Account and Company Matching Stock Account.

      

      (a) Deferred
        Amounts.
        If a
        Participant elects to defer compensation in accordance with Section 4.2,
        the Participant may make an irrevocable election pursuant to this Section
        7.1(a)
        to have a portion or all of such deferred compensation allocated to the Company
        Stock Account and measured by the value of Company Common Stock. This
        irrevocable election must be made at the time the deferral elections are
        made
        under Section 4.2 in the form and manner prescribed by the Compensation
        Committee, and will not be effective unless accepted by the Compensation
        Committee. If the Participant makes an election pursuant to this Section
        7.1(a)
        to have a portion or all of such deferred compensation allocated to the Company
        Stock Account and measured by the value of Common Stock, the Participant’s
        Company Stock Account shall be credited with the number of units (including
        fractions thereof) equal to the number of shares (including fractions thereof)
        of Common Stock that could have been purchased with the dollar amount of
        such
        deferred compensation determined as of the last business day of the month,
        based
        on the last sale price as reported on the Nasdaq National Market on such
        date,
        in which such compensation would have otherwise been paid to the Participant.
        Each unit credited to the Company Stock Account shall be measured by the
        value
        of one share of Common Stock and treated as though invested in a share of
        Common
        Stock. Subject to subsection (f) of this Section 7.1, the liability of
        a Participating Employer under the Plan with respect to the units credited
        to
        the Company Stock Account shall be satisfied only in shares of Company Common
        Stock, subject to the approval of the Plan by the shareholders during the
        annual
        meeting of shareholders in April 2000.

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      (b) Discretionary
        Amount.
        When a
        Participant’s Company Stock Account is to be credited for a Discretionary
        Amount, it shall be credited with that number of units (including fractions
        thereof) of Common Stock equal to the number of such shares (including fractions
        thereof) that could have been purchased with the dollar amount of the
        Discretionary Amount based upon the value of such shares as of the last business
        day of the month during which such Discretionary Amount is determined by
        the
        Participating Employer.

      

      (c) Company
        Matching Stock Account.
        

      

      
        	 	 	
                (i)

              	
                When
                  a Participant’s Company Matching Stock Account is to be credited with
                  matching units pursuant to Section 4.3, said Account shall be
                  credited with that number of units (including fractions thereof)
                  equal to
                  the number of shares (including fractions thereof) of Common Stock
                  that
                  could have been purchased with the dollar amount of such deferred
                  compensation determined as of the last business day of the month,
                  based on
                  the last sale price as reported on the Nasdaq National Market on
                  such
                  date, in which such compensation would have otherwise been paid
                  to the
                  Participant.

              

      

      

      
        	 	 	
                (ii)

              	
                In
                  addition to the matching units credited to the Company Matching
                  Stock
                  Account under paragraph (i) above, if a Participant makes an election
                  under Section 7.1(a) to have deferred compensation allocated to the
                  Company Stock Account and measured by the value of Company Common
                  Stock,
                  the Participant’s Participating Employer shall credit the Participant’s
                  Company Matching Stock Account with that number of units (including
                  fractions thereof) that shall be equal to ten percent (10%) of
                  the number
                  of units (including fractions thereof) that were credited to the
                  Participant’s Company Stock Account under Section 7.1(a) determined
                  as of the last business day of the month, based on the last sale
                  price as
                  reported on the Nasdaq National Market on such date, in which such
                  compensation would have otherwise been paid to the
                  Participant.

              

      

      

      
        	 	 	
                (iii)

              	
                Each
                  unit credited to the Company Matching Stock Account shall be measured
                  by
                  the value of one share of Common Stock and treated as though invested
                  in a
                  share of Common Stock. Subject to subsection (f) of this
                  Section 7.1, the liability of a Participating Employer under the Plan
                  with respect to the units credited to the Company Matching Stock
                  Account
                  shall be satisfied only in shares of Company Common Stock, subject
                  to the
                  approval of the Plan by the shareholders during the annual meeting
                  of
                  shareholders in April 2000.

              

      

      

      (d) Dividends.
        A
        Participant’s Company Stock Account and the Participant’s Company Matching Stock
        Account shall be credited on each Common Stock dividend payment date with
        that
        number of units equal to the number of shares which would have been acquired
        based upon the dividends paid by the Company on shares of Common Stock equal
        to
        the number of units credited to the Company Stock Account and the Company
        Matching Stock Account, respectively, as of the record date for such
        dividend.

      

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      (e) Stock
        Dividends.
        The
        number of units credited to the Company Stock Account and the Company Matching
        Stock Account shall be adjusted to reflect any change in the outstanding
        Common
        Stock by reason of any stock dividend or split, recapitalization, merger,
        consolidation, combination or exchange of shares or other similar corporate
        change.

      

      (f) Transfer
        Upon Change in Control.
        In the
        event of a Change in Control, effective as of the close of business on the
        date
        of the Change in Control, each Participant’s Deferred Compensation Account shall
        be credited with an amount measured in dollars equal to the value of such
        Participant’s Company Stock Account and the Participant’s Company Matching Stock
        Account based upon the fair market value of the Company Common Stock on such
        date and the Participant’s Company Stock Account and the Participant’s Company
        Matching Stock Account shall be closed and the Participant shall have no
        further
        interest in the said Accounts.

      

      Section
        7.2 - Deferred
        Compensation Account.
        

      

      (a) Deferred
        Amounts.
        When a
        Participant’s Deferred Compensation Account is to be credited with a deferred
        amount, that amount measured in dollars equal to such deferred amount shall
        be
        credited to the Deferred Compensation Account as of the close of business
        on the
        date that such amount would have otherwise been paid to the
        Participant.

      

      (b) Interest.
        Subject
        to Section 7.2(c), as of the close of the last day of each calendar
        quarter, an additional amount shall be credited to each Participant’s Deferred
        Compensation Account equal to the product of (i) the average daily balance
        in
        such Deferred Compensation Account for the quarter, multiplied by (ii)
        one-fourth of the annual prime rate for corporate borrowers quoted at the
        beginning of the quarter by the Wall
        Street Journal
        (or such
        other comparable interest rate as the Compensation Committee may designate
        from
        time to time).

      

      (c) Investment
        Options.
        The
        Compensation Committee may permit a Participant to allocate the Participant’s
        Deferred Compensation Account among one or more investment options for purposes
        of measuring the value of the benefit. To the extent that the Deferred
        Compensation Account is allocated to an investment option, it shall not be
        credited with interest under Section 7.2(b). That portion of the Deferred
        Compensation Account allocated to an investment option shall be deemed to
        be
        invested in such investment option and shall be valued as if so invested,
        reflecting all earnings, losses and other distributions or charges and changes
        in value which would have been incurred through such an investment. The
        determination of which investment options, if any to make available, and
        the
        continued availability of selected investment options rests in the Compensation
        Committee’s sole discretion; provided, that subsequent to a Change in Control,
        the Compensation Committee shall maintain the availability of those investment
        options in place at the time of the Change in Control (or substantially
        equivalent investment options).

      

      (d) Participant
        Allocation Request.
        A
        Participant’s request to allocate or reallocate among investment options must be
        in writing on an Allocation Request Form in such increments as the Compensation
        Committee may require. All such requests are subject to acceptance by the
        Compensation Committee at its discretion. If accepted by the Compensation
        Committee, an allocation request will be effective as of the close of business
        on the allocation date (as defined in Section 7.4).

      

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      Section
        7.3 - Hypothetical
        Accounts.
        The
        Accounts established under this Plan shall be hypothetical in nature and
        shall
        be maintained for bookkeeping purposes only. Neither the Plan nor any of
        the
        Accounts (or sub-accounts) shall hold or be required to hold any actual funds
        or
        assets.

      

      Section
        7.4 - Allocation
        Date.
        Upon
        acceptance of an allocation request pursuant to Section 7.2, the
        Compensation Committee will process the request as soon as reasonably
        administratively practicable and the request shall be implemented and reflected
        in the Participant’s Account as of the close of business on such date as may be
        determined by the Compensation Committee in its reasonable discretion (the
        “allocation date”).

      

      ARTICLE
        VIII

      

      NONTRANSFERABILITY

      

      

      Section
        8.1 Anti-Alienation
        of Benefits.
        Any
        benefits which may be credited to a Participant’s Accounts under the Plan, and
        any rights or privileges pertaining thereto, may not be anticipated, alienated,
        sold, transferred, assigned, pledged, encumbered, or subjected to any charge
        or
        legal process; and no interest or right to receive a benefit may be taken,
        either voluntarily or involuntarily, for the satisfaction of the debts of,
        or
        other obligations or claims against, such person or entity, including claims
        for
        alimony, support, separate maintenance and claims in bankruptcy
        proceedings.

      

      Section
        8.2 - Incompetent
        Participants.
        If any
        person who may be eligible to receive a payment under the Plan has been legally
        declared incompetent and a conservator or other person legally charged with
        the
        care of such person or of his or her estate has been appointed, any payment
        under the Plan to which the person is eligible to receive shall be paid to
        such
        conservator or other person legally charged with the care of the person or
        his
        or her estate. Any such payment shall be a payment for the account of such
        person and a complete discharge of any liability of the Participating Employers
        and the Plan therefore.

      

      Section
        8.3 - Designated
        Beneficiary.
        In the
        event of a Participant’s death prior to the payment of all or a portion of any
        benefits which may be payable with respect to the Participant under the Plan,
        the payment of any benefits payable on behalf of the Participant under the
        Plan
        shall be made to the Participant’s beneficiary designated on a “Beneficiary
        Designation Form,” which form shall be approved by the Compensation Committee.
        If no such beneficiary has been designated, payment shall be made as required
        under the Participant’s will; or, in the event that there shall be no
        functioning will under applicable state law, then to such persons as, at
        the
        date of the Participant’s death, would be entitled to share in the distribution
        of such deceased Participant’s personal estate under the provisions of the
        applicable statute then in force governing the decedent’s intestate property, in
        the proportions specified in such statute.

      

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      ARTICLE
        IX

      

      WITHHOLDING

      

      Section
        9.1 - Withholding.
        The
        amounts payable pursuant to the Plan may be reduced by the amount of any
        federal, state or local taxes required by law to be withheld with respect
        to
        such payments.

      

      ARTICLE
        X

      

      VOTING

      

      Section
        10.1 - Voting
        of Company Stock.
        No
        Participant shall be entitled to any voting rights with respect to any units
        credited to his or her Company Stock Account or his or her Company Matching
        Stock Account.

      

      ARTICLE
        XI

      

      ADMINISTRATION
        OF THE PLAN

      

      Section
        11.1 - Administrator.
        The
        administrator of the Plan shall be the Company. However, the Compensation
        Committee shall act on behalf of the Company with respect to the administration
        of the Plan and may delegate authority with respect to the administration
        of the
        Plan to such other committee, person or persons as it deems necessary or
        appropriate for the administration and operation of the Plan.

      

      Section
        11.2 - Authority
        of Administrator.
        The
        Company shall have the authority, duty and power to interpret and construe
        the
        provisions of the Plan as it deems appropriate, to adopt, establish and revise
        rules, procedures and regulations relating to the Plan, to determine the
        conditions subject to which any benefits may be payable, to resolve all
        questions concerning the status and rights of the Participants and others
        under
        the Plan, including, but not limited to, eligibility for benefits and to
        make
        any other determinations which it believes necessary or advisable for the
        administration of the Plan. The Company shall have the duty and responsibility
        of maintaining records, making the requisite calculations and disbursing
        payments hereunder. The determinations, interpretations, regulations and
        calculations of the Company shall be final and binding on all persons and
        parties concerned. The Secretary of the Company shall be the agent of the
        Plan
        for the service of legal process in accordance with section 502 of
        ERISA.

      

      Section
        11.3 - Operation
        of Plan and Claims Procedures.
        The
        Company shall be responsible for the general operation and administration
        of the
        Plan and for carrying out the provisions thereof. The Company shall be
        responsible for the expenses incurred in the administration of the Plan.
        The
        Company shall also be responsible for determining eligibility for payments
        and
        the amounts payable pursuant to the Plan. The Company shall be entitled to
        rely
        conclusively upon all tables, valuations, certificates, opinions and reports
        furnished by any actuary, accountant, controller, counsel or other person
        employed or engaged by the Company with respect to the Plan. The procedures
        for
        filing claims for payments under the Plan are described below. For claims
        procedures purposes, the “Claims Manager” shall be the Company.

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      

      (a) Claims
        Forms.
        It is
        the intent of the Company to make payments under the Plan without the
        Participant having to complete or submit any claims forms. However, a
        Participant who believes he or she is entitled to a payment under the Plan
        may
        submit a claim for payments in writing to the Company. Any claim for payments
        under the Plan must be made by the Participant or his or her beneficiary
        in
        writing and state the claimant’s name and the nature of benefits payable under
        the Plan on a form acceptable to the Company. If for any reason a claim for
        payments under the Plan is denied by the Company, the Claims Manager shall
        deliver to the claimant a written explanation setting forth the specific
        reasons
        for the denial, specific references to the pertinent provisions of the Plan
        on
        which the denial is based, a description of any additional material or
        information necessary for the claimant to perfect the claim and an explanation
        of why such material or information is necessary, and information on the
        procedures to be followed by the claimant in obtaining a review of his or
        her
        claim, all written in a manner calculated to be understood by the claimant.
        For
        this purpose:

      

      
        	 	 	
                (i)

              	
                The
                  claimant’s claim shall be deemed to be filed when presented orally or in
                  writing to the Claims Manager.

              

      

      

      
        	 	 	
                (ii)

              	
                The
                  Claims Manager’s explanation shall be in writing delivered to the claimant
                  within 90 days of the date the claim is
                  filed.

              

      

      

      (b) Review.
        The
        claimant shall have 60 days following his or her receipt of the denial of
        the
        claim to file with the Claims Manager a written request for review of the
        denial. For such review, the claimant or the claimant’s representative may
        review pertinent documents and submit written issues and comments.

      

      (c) Decision
        on Review.
        The
        Claims Manager shall decide the issue on review and furnish the claimant
        with a
        copy within 60 days of receipt of the claimant’s request for review of the
        claimant’s claim. The decision on review shall be in writing and shall include
        specific reasons for the decision, written in a manner calculated to be
        understood by the claimant, as well as specific references to the pertinent
        provisions in the Plan on which the decision is based. If a copy of the decision
        is not so furnished to the claimant within such 60 days, the claim shall
        be
        deemed denied on review. In no event may a claimant commence legal action
        for
        benefits the claimant believes are due the claimant until the claimant has
        exhausted all of the remedies and procedures afforded the claimant by this
        Section 11.3.

      

      (d) Deadline
        to File Claim.
        To be
        considered timely under the Plan’s claim and review procedure, a claim must be
        filed with the Company within one (1) year after the claimant knew or reasonably
        should have known of the principal facts upon which the claim is
        based.

      

      (e) Exhaustion
        of Administrative Remedies.
        The
        exhaustion of the claim and review procedure is mandatory for resolving every
        claim and dispute arising under this Plan. As to such claims and
        disputes:

      

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      
        	 	 	
                (i)

              	
                no
                  claimant shall be permitted to commence any legal action to recover
                  Plan
                  benefits or to enforce or clarify rights under the Plan under
                  section 502 or section 510 of ERISA or under any other provision
                  of law, whether or not statutory, until the claim and review procedure
                  set
                  forth herein have been exhausted in their entirety;
                  and

              

      

      

      
        	 	 	
                (ii)

              	
                in
                  any such legal action all explicit and all implicit determinations
                  by the
                  Company (including, but not limited to, determinations as to whether
                  the
                  claim, or a request for a review of a denied claim, was timely
                  filed)
                  shall be afforded the maximum deference permitted by
                  law.

              

      

      

      
        	 	
                (f)

              	
                Deadline
                  to File Legal Action.
                  No legal action to recover Plan benefits or to enforce or clarify
                  rights
                  under the Plan under section 502 or section 510 of ERISA or
                  under any other provision of law, whether or not statutory, may
                  be brought
                  by any claimant on any matter pertaining to this Plan unless the
                  legal
                  action is commenced in the proper forum before the earlier
                  of:

              

      

      

      
        	 	 	
                (i)

              	
                thirty
                  (30) months after the claimant knew or reasonably should have known
                  of the
                  principal facts on which the claim is based, or

              

      

      

      
        	 	 	
                (ii)

              	
                six
                  (6) months after the claimant has exhausted the claim and review
                  procedure.

              

      

      

      
        	 	
                (g)

              	
                Knowledge
                  of Facts by Participant Imputed to Beneficiary.
                  Knowledge of all facts that a Participant knew or reasonably should
                  have
                  known shall be imputed to every claimant who is or claims to be
                  a
                  beneficiary of the Participant or otherwise claims to derive an
                  entitlement by reference to the Participant for the purpose of
                  applying
                  the previously specified periods.

              

      

      

      Section
        11.4 - Participant’s
        Address.
        Each
        Participant shall keep the Company informed of his or her current address
        and
        the current address of his or her beneficiary. The Company shall not be
        obligated to search for any person. If the location of a Participant is not
        made
        known to the Company within three (3) years after the date on which payment
        of
        the Participant’s benefits payable under the Plan may be made, payment may be
        made as though the Participant had died at the end of the three-year period.
        If,
        within one (1) additional year after such three-year period has elapsed,
        or,
        within three (3) years after the actual death of a Participant, the Company
        is
        unable to locate any designated beneficiary of the Participant, then neither
        the
        Company nor any other Participating Employer shall have any further obligation
        to pay any benefit under the Plan to or on behalf of such Participant or
        designated beneficiary and such benefit shall be irrevocably
        forfeited.

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      

      ARTICLE
        XII

      

      MISCELLANEOUS
        PROVISIONS

      

      Section
        12.1 - No
        Employment Rights.
        Neither
        the Plan nor any action taken under the Plan shall be construed as providing
        any
        Participant any right to be retained in the service or employ of any
        Participating Employer.

      

      Section
        12.2 - Participants
        Should Consult Advisors.
        Neither
        any Participating Employer, nor their respective directors, officers, employees
        or agents makes any representation or warranty with respect to the federal,
        state or other tax, financial, estate planning, or the securities or other
        legal
        implications of participation in the Plan. Participants should consult with
        their own tax, financial and legal advisors with respect to their participation
        in the Plan.

      

      Section
        12.3 - Unfunded
        and Unsecured.
        The
        Plan shall at all times be considered entirely unfunded both for tax purposes
        and for purposes of Title I of the Employee Retirement Income Security Act
        of
        1974, as amended, and no provision shall at any time be made with respect
        to
        segregating assets of any Participating Employer for payment of any amounts
        under the Plan. Any funds invested under the Plan allocable to a Participating
        Employer shall continue for all purposes to be part of the respective general
        assets of such Participating Employer and available to the general creditors
        of
        such Participating Employer in the event of a bankruptcy (involvement in
        a
        pending proceeding under the Federal Bankruptcy Code) or insolvency (inability
        to pay debts as they mature) of such Participating Employer. The Company
        shall
        promptly notify the Trustee and the applicable Participants of such bankruptcy
        or insolvency of a Participating Employer. No Participant or any other person
        shall have any interests in any particular assets of any Participating Employer
        by reason of the right to receive a benefit under the Plan and to the extent
        the
        Participant or any other person acquires a right to receive benefits under
        the
        Plan, such right shall be no greater than the right of any general unsecured
        creditor of any Participating Employer. The Plan constitutes a mere promise
        by
        the Participating Employers to make payments to the Participants in the future.
        Nothing contained in the Plan shall constitute a guaranty by any Participating
        Employer or any other person or entity that any funds in any trust or the
        assets
        of any Participating Employer will be sufficient to pay any benefit under
        the
        Plan. Furthermore, no Participant shall have any right to a benefit under
        the
        Plan except in accordance with the terms of the Plan.

      

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      Section
        12.4 - The
        Trust.

      

      (a) Establishment
        of Trust.
        In
        order to provide assets from which to fulfill the obligations to the
        Participants and their beneficiaries under the Plan, each Participating Employer
        may establish a Trust by a trust agreement with a third party, the Trustee,
        to
        which such Participating Employer may, in its discretion, contribute cash
        or
        other property, including securities issued by the Company or such other
        Participating Employer, to provide for the benefit payments under the Plan.
        The
        Trustee for each Trust will have the duty to invest the Trust assets and
        funds
        in accordance with the terms of such Trust. Each Participating Employer shall
        be
        entitled at any time, and from time to time, in its sole discretion, to
        substitute assets of at least equal fair market value for any assets held
        in
        such Trust established by such Participating Employer. All rights associated
        with the assets of each such Trust will be exercised by the Trustee of the
        Trust
        or the person designated by such Trustee, and will in no event be exercisable
        by
        or rest with Participants or their beneficiaries. Each such Trust shall provide
        that in the event of the insolvency of the Participating Employer that
        established such Trust, the Trustee shall hold the assets for the benefit
        of the
        general creditors of that Participating Employer. Each such Trust shall be
        based
        on the model trust contained in Internal Revenue Service Revenue Procedure
        92-64.

      

      (b) Contribution
        Upon Change in Control.
        If as
        of the close of business on the date of a Change in Control, the aggregate
        value
        of the Participant Accounts exceeds the value of the assets held in a Trust
        established under subsection (a), then within thirty (30) days of such Change
        in
        Control, each Participating Employer that has established such a Trust shall
        contribute to such Trust assets having a value at least equal to the amount
        of
        such excess.

      

      Section
        12.5 - Plan
        Provisions.
        Except
        when otherwise required by the context, any singular terminology shall include
        the plural.

      

      Section
        12.6 - Severability.
        If a
        provision of the Plan shall be held to be illegal or invalid, the illegality
        or
        invalidity shall not affect the remaining parts of the Plan and the Plan
        shall
        be construed and enforced as if the illegal or invalid provision had not
        been
        included.

      

      Section
        12.7 - Applicable
        Law.
        To the
        extent not preempted by the laws of the United States, the laws of the State
        of
        Minnesota shall apply with respect to the Plan.

      

      Section
        12.8 - Stock
        Subject to Plan.
        Subject
        to and in accordance with the terms of the Plan, the maximum number of shares
        of
        Common Stock that shall be made available for purposes of satisfying the
        obligations of the Participating Employers under the Plan is 100,000 shares,
        subject to adjustment by reason of any stock dividend or split,
        recapitalization, merger, consolidation, combination or exchange of shares
        or
        other similar corporate change.

      

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      ARTICLE
        XIII

      

      AMENDMENTS

      

      Section
        13.1 - Amendment
        of the Plan.
        The
        Company reserves the power to alter, amend or wholly revise the Plan at any
        time
        and from time to time by the action of the Board of Directors and the interest
        of each Participant is subject to the powers so reserved; provided, however,
        that no amendment made subsequent to a Change in Control shall be effective
        to
        the extent that it would have a materially adverse impact on a Participant’s
        reasonably expected economic benefit attributable to compensation deferred
        by
        the Participant prior to the Change in Control. An amendment shall be authorized
        by the Board of Directors and shall be stated in an instrument in writing
        signed
        in the name of the Company by a person or persons authorized by the Board
        of
        Directors. After the instrument has been so executed, the Plan shall be deemed
        to have been amended in the manner therein set forth, and all parties interested
        herein shall be bound thereby. No amendment to the Plan may alter, impair,
        or
        reduce the benefits credited to any Accounts prior to the effective date
        of such
        amendment without the written consent of any affected Participant.

      

      ARTICLE
        XIV

      

      TERM
        OF PLAN

      

      Section
        14.1 - Term
        of the Plan.
        The
        Company may at any time terminate the Plan by action of the Board of Directors
        with such termination being effective as of the date that all Participant
        Accounts have been distributed to Participants in accordance with and subject
        to
        the provisions of Article VI of the Plan including, without limitation,
        Section 6.5 of the Plan. Effective as of the date of such Board of
        Directors action (or such later date as may be specified therein) all
        Section 4.1 compensation deferral elections will terminate and no further
        amounts shall be credited to any Accounts of any Participant under Sections
        7.1(a), (b), (c) and 7.2(a) after such date. However, the Participants’ Accounts
        shall continue to be adjusted by the other provisions of Sections 7.1 and
        7.2 until all benefits are distributed to the Participants or to the
        Participants’ beneficiaries.

      

      Dated
        as
        of this 14th day of October 1999.

      

      

      
        	 	
                H.B.
                  FULLER COMPANY

              
	 	 
	 	 
	 	
                By:
                  /s/ Albert P.L.
                  Stroucken                                    
                  

              
	 	 
	 	
                Title:
                  Chief Executive
                  Officer                                    
                  

              

      

      

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

      EXHIBIT
        A

      

      H.B.
        FULLER COMPANY

      KEY
        EMPLOYEE DEFERRED COMPENSATION PLAN PARTICIPANTS

      

        
          	
                  Name
                    of Individuals Eligible to Participate

                	 	
                  Date
                    of Participation Eligibility

                	 	
                  Date
                    of Participation

                

        

      

      

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      H.B.
        FULLER COMPANY

      KEY
        EMPLOYEE DEFERRED COMPENSATION PLAN

       

      Declaration
        of Amendment

       

      Pursuant
        to Section 13.1 of the H.B. Fuller Company Key Employee Deferred
        Compensation Plan, the Company amends the Plan as follows:

       

      1. Section 4.3(a)
        is amended to reflect a matching percentage of 4% as opposed to 3%.

       

      2. Sections 7.1
        (a),(b), and (c) (i) and (ii) is amended in their entirety, to read as
        follows:

       

      (a) Deferred
        Amounts. If a Participant elects to defer compensation in accordance with
        Section 4.2, the Participant may make an irrevocable election pursuant to
        this Section 7.1(a) to have a portion or all of such deferred compensation
        allocated to the Company Stock Account and measured by the value of Company
        Common Stock. This irrevocable election must be made at the time the deferral
        elections are made under Section 4.2 in the form and manner prescribed by
        the Compensation Committee, and will not be effective unless accepted by
        the
        Compensation Committee. If the Participant makes an election pursuant to
        this
        Section 7.1(a) to have a portion or all of such deferred compensation
        allocated to the Company Stock Account and measured by the value of Common
        Stock, the Participant’s Company Stock Account shall be credited with the number
        of units (including fractions thereof) equal to the number of shares (including
        fractions thereof) of Common Stock that could have been purchased with the
        dollar amount of such deferred compensation determined as of the payroll
        deferral transaction date, based on the last sale price as reported on the
        Nasdaq National Market on such date, in which such compensation would have
        otherwise been paid to the Participant. Each unit credited to the Company
        Stock
        Account shall be measured by the value of one share of Common Stock and treated
        as though invested in a share of Common Stock. Subject to subsection (f) of
        this Section 7.1, the liability of a Participating Employer under the Plan
        with respect to the units credited to the Company Stock Account shall be
        satisfied only in shares of Company Common Stock, subject to the approval
        of the
        Plan by the shareholders during the annual meeting of shareholders in April
        2000.

       

      (b) Discretionary
        Amount.
        When a
        Participant’s Company Stock Account is to be credited for a Discretionary
        Amount, it shall be credited with that number of units (including fractions
        thereof) of Common Stock equal to the number of such shares (including fractions
        thereof) that could have been purchased with the dollar amount of the
        Discretionary Amount based upon the value of such shares as of the payroll
        deferral transaction date during which such Discretionary Amount is determined
        by the Participating Employer.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (c) Company
        Matching Stock Account.

       

      
        	 	
                (i)

              	
                When
                  a Participant’s Company Matching Stock Account is to be credited with
                  matching units pursuant to Section 4.3, said Account shall be
                  credited with that number of units (including fractions thereof)
                  equal to
                  the number of shares (including fractions thereof) of Common Stock
                  that
                  could have been purchased with the dollar amount of such deferred
                  compensation determined as of the payroll deferral transaction
                  date, based
                  on the last sale price as reported on the Nasdaq National Market
                  on such
                  date, in which such compensation would have otherwise been paid
                  to the
                  Participant.

              

      

       

      
        	 	
                (ii)

              	
                In
                  addition to the matching units credited to the Company Matching
                  Stock
                  Account under paragraph (i) above, if a Participant makes an election
                  under Section 7.1(a) to have deferred compensation allocated to the
                  Company Stock Account and measured by the value of Company Common
                  Stock,
                  the Participant’s Participating Employer shall credit the Participant’s
                  Company Matching Stock Account with that number of units (including
                  fractions thereof) that shall be equal to ten percent (10%) of
                  the number
                  of units (including fractions thereof) that were credited to the
                  Participant’s Company Stock Account under Section 7.1(a) determined
                  as of the payroll deferral transaction date, based on the last
                  sale price
                  as reported on the Nasdaq National Market on such date, in which
                  such
                  compensation would have otherwise been paid to the
                  Participant.

              

      

       

      3. Section 7.2(b)
        is amended in its entirety, to read as follows:

       

      “(b) Interest.
        Subject
        to Section 7.2 (c) as of the close of each business day, each Participant’s
        Deferred Compensation Account shall be valued by calculating the product
        of
        (i) the daily balance in such Deferred Compensation Account, multiplied by
        (ii) one-twelfth (1/12) of the annual prime rate for corporate borrowers
        quoted at the beginning of the month by the Wall Street Journal (or such
        other
        comparable interest rate as the Compensation Committee may designate from
        time
        to time).”

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      This
        Declaration of Amendment, shall be effective as of October 14, 1999, as if
        originally included in the Plan.

       

      IN
        WITNESS WHEREOF,
        the
        Company has caused this instrument to be executed by its duly authorized
        officer
        this 2nd day of December 1999.

       

      
        	 	
                H.B.
                  FULLER COMPANY

              
	 	 
	 	 
	 	
                /s/
                  Albert P.L. Stroucken

              
	 	
                Chief
                  Executive Officer

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