Document:

exv10w38

 

Exhibit 10.38

Courtesy translation

	 	 	 
	Geschäftsführeranstellungsvertrag

	 	Managing Director

Employment Contract
	 
	 	 
	Zwischen

	 	between

Hirschmann Industries GmbH,

Stuttgarter Straße 45-51, 72654 Neckartenzlingen,

vertreten durch ihre Gesellschafter/represented by its shareholders,

die Belden Deutschland GmbH, Im Gewerbepark 2, 58579 Schalksmühle

und/and die Belden Europe B. V., Adresse ergänzen/insert adress

	 	 	 
	- nachfolgend “Gesellschaft” genannt -

	 	- hereinafter referred to as the “Company” -
	 
	 	 
	und

	 	and

Herrn Dr. Wolfgang Babel,

Lindenhof 19,

71263 Weil der Stadt

	 	 	 
	- nachfolgend “Geschäftsführer” genannt -

	 	- hereinafter referred to as the “Managing
Director” -
	 
	 	 
	Vorbemerkung

	 	Preliminary Remark
	 
	 	 
	Herr Dr. Wolfgang Babel wurde mit
Beschluss der Gesellschafterversammlung
vom 30. August 2007 zum Geschäftsführer
der Gesellschaft bestellt.

	 	Dr Wolfgang Babel has been appointed as
managing director of the Company through
resolution of the shareholder meeting dated
August 30, 2007.
	 
	 	 
	Die Gesellschaft ist Teil des
Belden-Konzerns, an dessen Spitze die
Belden Inc. mit Sitz in den Vereinigten
Staaten steht. Die Gesellschaft ist
unter anderem Muttergesellschaft der
Hirschmann Automation and Control GmbH,
bei der das europäische Geschäft der
Belden Automation Division des
Belden-Konzerns angesiedelt ist. Das
Automation-Geschäft besteht aus dem
Geschäftszweig Hirschmann Automation und
dem Geschäftszweig Lumberg Automation;
letzterer stammt aus dem Erwerb der
Assets der Lumberg Automation Components
GmbH, welche von

	 	The Company is part of the Belden Group,
which is headed by Belden Inc. with
headquarters in the United States. The
Company is inter alia the parent company of
Hirschmann Automation and Control GmbH,
where the European business of the Belden
Automation Division of the Belden Group is
situated. The Automation business consists
of the Hirschmann Automation business line
and the Lumberg Automation business line;
the latter stems from the acquisition of
the assets of Lumberg Automation Components
GmbH, which were acquired by Belden
Deutschland

 

Seite 2 von 17

	 	 	 
	der Belden Deutschland
GmbH erworben wurden.

	 	GmbH.
	 
	 	 
	Die Parteien vereinbarenden 

nachfolgenden Anstellungsvertrag:

	 	The Parties hereby agree upon the following

employment contract:
	 
	 	 
	§ 1

	 	§ 1
	Aufgaben und Pflichten

	 	Tasks and Duties
	 
	 	 
	1.    Der Geschäftsführer wird mit Wirkung
zum 1. Oktober 2007 bei der Gesellschaft
angestellt und zum Geschäftsführer
bestellt. Er vertritt die Gesellschaft
nach Maßgabe der Gesetze, der
Vorschriften des Gesellschaftsvertrages
der Gesellschaft, der Bestimmungen der
Gesellschafter und der Regelungen dieses
Anstellungsvertrages. Er hat den
Weisungen der Gesellschafterversammlung
Folge zu leisten. Sitz der Gesellschaft
ist Neckartenzlingen, Deutschland.

	 	1.    The Managing Director shall be employed
at the Company and appointed as Managing
Director with effect as of October 1, 2007.
He shall represent the Company in
accordance with legislation, the provisions
of the Company’s Articles of Association,
the directions of the shareholders and the
provisions of this Employment Contract. He
shall be obliged to carry out the
instructions of the shareholder meeting.
Place of employment shall be
Neckartenzlingen, Germany.

	 
	 	 
	2.    Der Geschäftsführer vertritt die
Gesellschaft bei Bestellung mehrerer
Geschäftsführer gemeinsam mit einem
weiteren Geschäftsführer oder gemeinsam
mit einem Prokuristen. Ist er alleiniger
Geschäftsführer, so vertritt er die
Gesellschaft alleine. Befreiung von den
Beschränkungen in § 181 BGB wird ihm
nicht erteilt.

	 	2.    The managing director shall represent
the Company together with another managing
director or together with a procurist if
several managing directors have been
appointed. If he is the only managing
director, then he shall represent the
Company on his own. Release from the
restrictions contained in § 181 BGB shall
not be granted to him.

	 
	 	 
	3.    Der Geschäftsführer wird nach
entsprechender Einarbeitung die Aufgabe
des President of Belden Automation per
01. Januar 2008 übernehmen. Zu seinen
Aufgaben gehören die allgemeine Leitung
und das Management des Automation
Geschäfts der Hirschmann-Gruppe und der
Lumberg-Gruppe. Er berichtet direkt an
den Chief Executive Officer der Belden
Inc. Dem Geschäftsführer kann jederzeit
von der Gesellschaft ein anderer
Geschäftsbereich zugeordnet werden.

	 	3.    After appropriate familiarisation, the
Managing Director shall take on the role of
the President of Belden Automation as of
January 1, 2008. His tasks shall include
the general leadership and the management
of the Automation business of the
Hirschmann Group and of the Lumberg Group.
He shall report directly to the Chief
Executive Officer of Belden Inc. It shall
be possible for the Company to allocate
another business area to the Managing
Director at any time.

	 
	 	 
	4.    Die Gesellschaft kann weitere
Geschäftsführer bestellen. Die
Gesellschafter bestimmen von Zeit zu
Zeit die

	 	4.    The Company shall be entitled to appoint
additional managing directors. The
shareholders shall from time to time

 

Seite 3 von 17

	 	 	 
	       Geschäftsverteilung
unter den Geschäftsführern.

	 	       determine the division of business
activities among the managing directors.

	 
	 	 
	§ 2

	 	§ 2
	Zustimmungsbedürftige Geschäfte

	 	Transactions Requiring Approval
	 
	 	 
	Zur Vornahme von Rechtsgeschäften, die
über den gewöhnlichen Geschäftsbetrieb
der Gesellschaft hinausgehen, hat der
Geschäftsführer vorab die Zustimmung der
Gesellschafter einzuholen. Der
Geschäftsführer ist verpflichtet,
jederzeit die Richtlinien, die in dem
als Anlage 1 beigefügten ,,Policy
Bulletin” der Belden Inc. dargestellt
sind und von der Gesellschaft von Zeit
zu Zeit geändert werden kann,
einzuhalten.

	 	For the effecting of legal transactions
which go beyond the usual business
operations of the Company, the Managing
Director shall be obliged to obtain the
approval of the shareholders in advance.
The Managing Director shall be obliged to
comply at all times with the guidelines
which are set out in the Belden Inc.
“Policy Bulletin” attached hereto as Annex
1, which can be amended by the Company from
time to time.
	 
	 	 
	§ 3

	 	§ 3
	Pflichten und Verantwortlichkeit

	 	Obligations and Responsibilities
	 
	 	 
	1.    Der Geschäftsführer wird seine volle
Arbeitskraft und alle seine fachlichen
Kenntnisse und Erfahrungen
ausschließlich der Gesellschaft widmen.

	 	1.    The Managing Director shall devote his
full working capacity and all his knowledge
and experience exclusively to the Company.

	 
	 	 
	2.    Die Ausübung einer entgeltlichen oder
unentgeltlichen Nebentätigkeit, von
Ehrenämtern sowie von Aufsichtsrats-,
Beirats- oder ähnlichen Mandaten bedarf
der vorherigen schriftlichen Zustimmung
der Gesellschafter.

	 	2.    The undertaking of any paid or unpaid
ancillary activity, of honorary offices as
well as of supervisory board, advisory
board or similar mandates shall require the
prior written consent of the shareholders.

	 
	 	 
	       Der Geschäftsführer ist Mitglied im
Beirat der Firma Metz (einheimischer
TV-Geräte-Hersteller), 3 Sitzungen pro
Jahr mit einer Vergütung von 10.000,00
Euro pro Jahr. Es ist dem
Geschäftsführer genehmigt, diese
Täugkeit weiterhin auszuüben.

	 	       The Managing Director is a member of the
advisory board of the Metz company (local
TV-set producer), 3 meetings per year,
remuneration EUR 10,000.00 per year. The
Managing Director shall be allowed to
continue to perform this function.

	 
	 	 
	3.    Der Geschäftsführer hat für sämtliche
wirtschaftlichen, finanziellen und
organisatorischen Belange der
Gesellschaft zu sorgen. Er übernimmt die
Rechte und Pflichten des Arbeitgebers im
Sinne der arbeits- und sozialrechtlichen
Vorschriften.

	 	3.    The Managing Director shall be obliged
to take care of all the economic, financial
and organisational interests of the
Company. He shall take over the rights and
duties of the employer in the sense of the
German employment and social security legal
provisions.

 

Seite 4 von 17

	 	 	 
	4.    Der Gesellschaft bleibt es
vorbehalten, dem Geschäftsführer eine
andere, seiner Stellung sowie seinen
Kenntnissen und Fähigkeiten
entsprechende Position, auch an einem
anderen Ort, zu übertragen. Führt die
Versetzung zu einer Verlegung des
Dienstortes um mehr als 100 km, so hat
der Geschäftsführer seinen Wohnort an
den neuen Dienstort zu verlegen. Die
Gesellschaft trägt die hierfür
anfallenden, angemessenen Umzugskosten
gegen Nachweis.

	 	4.    The Company hereby reserves the right to
transfer the Managing Director to another
position which corresponds to his status,
knowledge and capacities, also in another
place. Should this transfer lead to a
transfer of the place of work of more than
100 km, the Managing Director shall then be
obliged to relocate his place of residence
to the new place of work. The Company shall
bear the reasonable moving costs thereof,
upon presentation of receipts, etc.

	 
	 	 
	§ 4

	 	§ 4
	Urlaub

	 	Holiday Leave
	 
	 	 
	1.    Der Geschäftsführer hat Anspruch auf
einen Jahresurlaub von 30 Arbeitstagen,
wobei als Arbeitstage alle Kalendertage
gelten, die nicht Samstage, Sonntage
oder gesetzliche Feiertage sind. Der
Jahresurlaub ist unter Berücksichtigung
betrieblicher Belange nach Absprache mit
den Gesellschaftern zu nehmen.

	 	1.    The Managing Director shall be entitled
to annual holiday leave of 30 working days,
in which regard all calendar days which are
not Saturdays, Sundays or statutory public
holidays shall count as working days.
Holiday leave is to be taken after
consultation with the shareholder and
taking into the then current business
requirements into account.

	 
	 	 
	2.    Ungenutzte Urlaubstage eines jeden
Jahres sind nur bis zum 31.03. des
jeweils nachfolgenden Jahres
übertragbar. Nicht genommener Urlaub
wird nicht abgefunden.

	 	2.    Unused holiday leave from any year shall
only be able to be carried over until 31
March of the subsequent year. Unused
holiday leave shall not be compensated.

	 
	 	 
	§ 5

	 	§ 5
	Arbeitszeit

	 	Working Hours
	 
	 	 
	1.    Ohne an eine bestimmte Arbeitszeit
gebunden zu sein, hat sich der
Geschäftsführer so oft und so lange, wie
es die pflichtgemäße Führung der
Geschäfte verlangt, zur Verfügung der
Gesellschaft zu halten und alle dem
Wohle der Gesellschaft dienenden
Leistungen zu erbringen.

	 	1.    Without being bound to specific working
hours, the Managing Director shall be
obliged to render his services as often and
for as long as the prudent management of
the business demands, to make himself
available to the Company and to render his
services for the good of the Company.

	 
	 	 
	2.    Mit den Bezügen nach § 7 dieses
Vertrages ist die gesamte Tätigkeit des
Geschäftsführers abgegolten, auch wenn
die Arbeitszeit aus betrieblichen
Gründen über das übliche Maß hinausgehen
sollte.

	 	2.    The entire employment of the Managing
Director shall be remunerated by the
remuneration pursuant to § 7 of this
Contract, even if the working hours go
beyond the usual ones due to business
reasons.

 

Seite 5 von 17

	 	 	 
	§ 6

	 	§ 6
	Wettbewerbsverbot

	 	Competition Prohibition
	 
	 	 
	1.    Während der Dauer dieses Vertrages
wird sich der Geschäftsführer an
Unternehmen, die mit der Gesellschaft in
Wettbewerb stehen oder mit denen die
Gesellschaft Geschäftsverbindungen
unterhält, weder unmittelbar noch
mittelbar beteiligen. Unabhängig von dem
in § 3.2 festgelegten
Nebentätigkeitsverbot ist es dem
Geschäftsführer außerdem in jedem Fall
untersagt, während der Dauer dieses
Vertrages in selbständiger,
unselbständiger oder sonstiger Weise
unmittelbar oder mittelbar für ein
Unternehmen tätig zu werden, welches mit
der Gesellschaft oder einem mit der
Gesellschaft im Sinne von §§ 15 ff. AktG
verbundenen Unternehmen, in direktem
oder indirektem Wettbewerb steht.

	 	1.    During the term of this Contract, the
Managing Director shall neither directly
nor indirectly hold shares in companies
which compete with the Company or with
which the Company maintains business
connections. Irrespective of the ancillary
work prohibition in § 3.2 hereof, in any
event it shall also be prohibited for the
Managing Director to work — whether in an
employee capacity, on a freelance basis or
in any other way — during the term of this
Contract directly or indirectly for a
company which directly or indirectly
competes with the Company or a company
affiliated with the Company in the sense of
§ 15 ff of the German Stock Corporation Act
(AktG).

	 
	 	 
	2.    Dem Geschäftsführer ist es ferner
untersagt, während der Dauer dieses
Vertrages Arbeitnehmer der Gesellschaft
von dieser abzuwerben und/ oder zu
anderen als der Gesellschaft dienlichen
Zwecken zu beschäftigen.

	 	2.    During the term of this Contract, the
Managing Director shall also be prohibited
from poaching Company employees from the
Company and/or from employing Company
employees for purposes other than those
benefiting the Company.

	 
	 	 
	3.    Dieses Wettbewerbsverbot gilt auch
während einer Freistellung (siehe § 12
Ziffer 4 dieses Vertrages) unverändert
fort.

	 	3.    This competition prohibition shall also
continue to apply unchanged during any
period of release from the obligation to
work for the Company (see § 12.4 of this
Contract).

	 
	 	 
	§ 7

	 	§ 7
	Vergütung

	 	Remuneration
	 
	 	 
	1.    Der Geschäftsführer erhält als
Vergütung für seine Tätigkeit ein
Jahresbruttogehalt in Höhe von EUR
320.000,00 (in Worten: EUR
dreihundertzwanzigtausend), das in 12
gleichen Raten jeweils am Monatsende
abzüglich Steuern und
Sozialversicherungsabgaben gezahlt wird.

	 	1.    As remuneration for his work, the
Managing Director shall receive an annual
gross salary in the amount of EUR
320,000.00 (in words: three hundred and
twenty thousand Euros), which will be paid
in twelve equal monthly instalments on the
last day of each month, after tax and
social security insurance contributions
have been deducted.

 

Seite 6 von 17

	 	 	 
	2.    Der Geschäftsführer erhält darüber
hinaus eine variable erfolgsabhängige
Vergütung (“Tantieme”). Die Höhe der
auszuzahlenden Tantieme hängt von dem
Grad der Erreichung der quantitativen
und qualitativen persönlichen Ziele ab,
welche die Gesellschaft jährlich (Ende
November/Dezember) für jeweils ein
Geschäftsjahr in einer Tantiemeregelung
(auch als ,,Annual Cash Incentive Plan”
bezeichnet) festlegt. Bei voller
Zielerreichung beträgt die auszuzahlende
Tantieme 70% des Jahresbruttogehaltes
nach vorstehender Ziffer 1. Die Ziele
werden jeweils im Voraus schriftlich für
einen befristeten Zeitraum von der
Gesellschaft festgelegt und dem
Geschäftsführer mitgeteilt. Die
Festlegung der Tantiemeregelung nimmt
die Gesellschaft unter Berücksichtigung
der Geschäftsentwicklung in den
vorangegangenen Perioden und der Ziele
der Gesellschaft und der übrigen
Unternehmen in der Unternehmensgruppe
der Gesellschaft für die betroffene
Periode und unter Berücksichtigung der
berechtigten Interessen des
Geschäftsführers nach pflichtgemäßem
Ermessen vor.

	 	2.    The Managing Director shall also receive
a variable, success-dependent remuneration
sum (“Bonus”). The amount of the Bonus to
be paid out shall depend on the degree of
the attainment of the quantitative and
qualitative personal targets which the
Company shall stipulate annually (end of
November/December) for one business year in
a bonus plan (also designated “Annual Cash
Incentive Plan”) in each instance. In the
event of full target attainment, the Bonus
to be paid out shall amount to 70% of the
annual gross salary pursuant to § 7.1
hereof. The targets shall in each instance
be stipulated in advance for a fixed time
period by the Company in writing and
communicated to the Managing Director. The
stipulation of the Bonus plan shall be done
by the Company in its dutiful discretion,
taking account of the development of the
business in the preceding period and the
targets of the Company and the other
companies belonging to the company group of
the Company for the pertinent period, and
taking account of the justified interests
of the Managing Director.

	 
	 	 
	3.    Ob und in welcher Höhe die Tantieme
ausgezahlt wird, insbesondere bei Teil-
oder Übererreichung der Ziele,
entscheidet die Gesellschaft nach der
jeweils festgelegten Tantiemeregelung.

	 	3.    The Company shall decide whether and in
what amount the Bonus will be paid out,
particularly in the event of partial
attainment or over-attainment of the
targets, in accordance with the
respectively-stipulated Bonus plan.

	 
	 	 
	4.    In Geschäftsjahren, in denen der
Geschäftsführer nicht durchgehend
beschäftigt ist, erhält er die Tantieme
anteilig auf der Grundlage des in der
Tätigkeitsperiode erzielten
Erfüllungs-grades. Für das Austrittsjahr
regelt § 12.4 die Einzelheiten für den
Fall, dass der Geschäftsführer von
seiner Arbeitspflicht freigestellt wird.

	 	4.    In business years when the Managing
Director is not continuously employed, he
shall receive the Bonus pro rata on the
basis of the degree of attainment achieved
in the period of work. For the year of
leaving the company, § 12.4 stipulates
rules regarding the details in the event
that the managing director is released from
his obligation to work.

	 
	 	 
	5.    Für das Kalenderjahr 2007 erhält der

	 	5.    For the 2007 calendar year, the Managing

 

Seite 7 von 17

	 	 	 
	       Geschäftsführer auf
der Grundlage von 100% der für dieses Jahr
geltenden Tantiemenregelung eine Zahlung
pro rata temporis, und zwar einen Betrag
in Höhe von 70% des Jahresbruttogehaltes
nach Ziffer 1., der gezwölftelt und mit dem
Faktor drei multipliziert wird. § 7
Ziffer 3 dieses Vertrages wird hierauf
nicht angewendet.

	 	       Director shall receive a pro rata temporis
payment on the basis of 100% of the bonus
agreement applicable for this year, i.e., a
sum in the amount of 70% of the annual
gross salary pursuant to § 7.1 hereof,
which is to be divided by twelve and
multiplied by a factor of three. § 7.3
hereof shall not be applied thereto.

	 
	 	 
	6.    Die zur Erfüllung der übertragenen
Aufgaben notwendige Mehrarbeit sowie
alle Tätigkeiten auch für andere
Unternehmen, mit denen die Gesellschaft
verbunden ist, sind mit den
Gesamtbezügen abgegolten. Etwaige in der
Gesellschaft bestehende
Betriebsvereinbarungen oder betriebliche
Regelungen über zusätzliche Vergütungen,
welcher Art auch immer, kommen für den
Geschäftsführer nicht zur Anwendung bzw.
sind mit den Gesamtbezügen nach diesem
Vertrag abgegolten.

	 	6.    The additional work necessary for
fulfilment of the allocated tasks, as well
as all work for other companies with which
the Company is affiliated, shall be
remunerated through payment of the total
remuneration. Any employer/works council
agreements or company regulations
concerning additional remuneration,
regardless of what kind, which may exist at
the Company shall not apply to the Managing
Director or shall be settled through
payment of the total remuneration pursuant
to this Contract.

	 
	 	 
	7.    Vergütungen für die Tätigkeit als
Mitglied eines Aufsichtsrates, Beirates,
Verwaltungsrates oder eines ähnlichen
Gremiums werden auf die Gehaltsansprüche
(Vergütung) angerechnet, wenn es sich um
ein mit der Gesellschaft verbundenes
Unternehmen handelt.

	 	7.    Remuneration for work as a member of a
supervisory board, advisory board,
administrative board or a similar body
shall be set off against the salary claims
(remuneration) if this occurs in connection
with a company affiliated with the Company.

	 
	 	 
	§ 8

	 	§ 8
	Spesen und Firmenwagen

	 	Expenses and Company Car
	 
	 	 
	1.    Die Gesellschaft erstattet dem
Geschäftsführer die anlässlich von
Dienstreisen entstandenen, angemessenen
Fahrtkosten, Mehraufwendungen für
Verpflegung, Übernachtungs- und
Bewirtungskosten in angemessenem Umfang
auf Vorlage der Belege, soweit die
Absetzbarkeit dieser Aufwendungen
steuerlich anerkannt wird. Die
Aufwendungen können pauschal abgegolten
werden, soweit dies nach den
lohnsteuerrechtlichen Vorschriften
zulässig

	 	1.    The Company shall reimburse the Managing
Director for reasonable travel costs
incurred due to business journeys and
trips, additional expenditure for food,
overnight stays and entertainment costs to
an appropriate extent upon production of
the relevant receipts therefor, insofar as
the deductibility of these expenses is
acknowledged for tax purposes. The expenses
can be settled in a lump sum, insofar as
this is permissible pursuant to German
income tax legislation.

 

Seite 8 von 17

	 	 	 
	     ist.

	 	 
	 
	 	 
	2.    Dem Geschäftsführer wird ein
Dienstwagen zur Verfügung gestellt, den
der Geschäftsführer auch privat nutzen
kann. Die von der Gesellschaft zu
tragende maximale Netto-Leasingrate
beträgt EUR 1.340,00 monatlich.

	 	2.    A company car shall be made available to
the Managing Director, which the Managing
Director shall also be able to use for
private purposes. The maximum net leasing
rate to be borne by the Company shall
amount to EUR 1,340.00 per month.

	 
	 	 
	3.    Der geldwerte Vorteil aus der
PKW-Nutzung ist nach den
Verwaltungsrichtlinien zu bemessen und
der Lohnsteuer zu unterwerfen. Die
etwaige Lohnsteuer aus den vorgenannten
geldwerten Vorteilen geht zu Lasten des
Geschäftsführers. Die Gesellschaft
schließt auf eigene Kosten eine
Vollkaskoversicherung mit einer
Selbstbeteiligung in Höhe von nicht mehr
als EUR 1.000,00 für das Fahrzeug ab.

	 	3.    The benefit in money’s worth from the
usage of the company car is to be
calculated in accordance with the
administration guidelines and to be subject
to income tax. Any potential income tax
arising from the above-mentioned benefits
in money’s worth shall be borne by the
Managing Director. The Company shall take
out a full-coverage collision insurance
policy for the company car at its own cost,
with an excess in the amount of not more
than EUR 1,000.00.

	 
	 	 
	§ 9

	 	§ 9
	Vergütung bei Dienstverhinderung

	 	Compensation upon Incapacity to Work
	 
	 	 
	1.    Der Geschäftsführer ist verpflichtet,
der Gesellschaft jede Dienstverhinderung
und ihre voraussichtliche Dauer
unverzüglich anzuzeigen.

	 	1.    The Managing Director shall be obliged
to announce every instance of incapacity to
work and its likely duration to the
Company.

	 
	 	 
	2.    Im Falle der Erkrankung oder
sonstigen unverschuldeten
Dienstverhinderungen werden dem
Geschäftsführer seine vertragsgemäßen
Bezüge gemäß § 7 dieses Vertrages für
die Dauer von sechs Monaten fortgezahlt,
und zwar unter Abzug eines Betrages, der
dem von der Krankenkasse gezahlten
Krankengeld entspricht. Die Fortzahlung
der Bezüge erfolgt jedoch längstens bis
zur Beendigung dieses Vertrages.

	 	2.    In the event of illness or other
non-culpable inability to work, the
Managing Director shall continue to be paid
his contractual remuneration pursuant to §
7 of this Contract for the duration of six
months, and this payment shall be made
subject to deduction of the sickness
benefit sum which is paid by the health
insurance company. The continued payment of
the remuneration shall, however, only occur
at most until the cessation of this
Contract.

 

Seite 9 von 17

	 	 	 
	§ 10

	 	§ 10
	Sonstige Leistungen

	 	Other Remuneration
	 
	 	 
	Der Geschäftsführer hat im Übrigen
Anspruch auf alle Sozialleistungen,
welche die Gesellschaft im Rahmen
betrieblicher Übung ihren
Geschäftsführern gewährt.

	 	The Managing Director shall also have a
claim for all of the social security
insurance payments which the Company grants
its managing directors in the framework of
what is usual practice at the Company.
	 
	 	 
	§ 11

	 	§ 11
	Erfindungen

	 	Inventions
	 
	 	 
	1.    Die Parteien sind sich darüber einig,
dass das Arbeitnehmererfindungsgesetz
auf Diensterfindungen des
Geschäftsführers keine Anwendung findet.
Erfindungen im Sinne der nachfolgenden
Bestimmungen sind alle Erfindungen und
technischen Verbesserungsvorschläge des
Geschäftsführers im Sinne der §§ 1-3 des
Arbeitnehmererfindungsgesetzes und alle
Patente und Schutzmarken.
Diensterfindungen im Sinne dieses
Vertrages sind alle während der Dauer
des Anstellungsverhältnisses von dem
Geschäftsführer gemachten Erfindungen,
die (i) aus der dem Geschäftsführer im
Betrieb obliegenden Tätigkeit entstanden
sind, (ii) maßgeblich auf Erfahrungen
oder Arbeiten des Betriebes beruhen oder
(iii) den Geschäftsbereich des
Unternehmens betreffen.
Diensterfindungen sind auch alle
Erfindungen der vorgenannten Art, die
der Geschäftsführer nach Beendigung des
Anstellungsverhältnisses vollendet, wenn
die Vorbereitungen für die Erfindung
überwiegend bereits während der Dauer
des Anstellungsverhältnisses getätigt
wurden; dies wird vermutet, wenn die
Erfindung innerhalb von drei Monaten
nach Beendigung des
Anstellungsverhältnisses gemacht wurde.

	 	1.    The parties hereby agree that the German
Employee Inventions Act shall not apply to
the Managing Director’s work inventions.
Inventions in the sense of the following
provisions shall mean all inventions and
technical improvement proposals by the
Managing Director in the sense of § 1 - § 3
of the German Employee Inventions Act and
all patents and trademarks. “Work
inventions” in the sense of this Contract
shall mean all inventions made by the
Managing Director during the existence of
the employment relationship that (i) result
from the tasks incumbent on the Managing
Director in the business, (ii) are
significantly based on the experience or
work in the business, or (iii) concern the
Company’s area of business. “Work
inventions” shall also include all
inventions of the aforementioned kind which
the Managing Director completes after the
cessation of the employment relationship,
if the preparatory work for the invention
was predominantly done during the term of
the employment relationship; this shall be
presumed to be the case if the invention is
made within three months after the
cessation of the employment relationship.

	 
	 	 
	2.    Der Geschäftsführer überträgt der
Gesellschaft unwiderruflich das
ausschließliche, zeitlich, räumlich und
inhaltlich unbeschränkte Nutzungs- und
Verwertungsrecht für alle etwaigen

	 	2.    The Managing Director hereby irrevocably
transfers to the Company the exclusive
usage and utilisation right — unrestricted
as to time, space and content — for any and
all copyrightable work results which the

 

Seite 10 von 17

	 	 	 
	       
urheberrechtsfähigen Arbeitsergebnisse,
die der Geschäftsführer während der
Dauer seines Anstellungsverhältnisses,
im Rahmen oder außerhalb seiner
anstellungsvertraglichen Aufgaben sowie
während und außerhalb seiner Arbeitszeit
erstellt, soweit diese Arbeitsergebnisse
nicht ausnahmsweise zwingend dem Gesetz
über Arbeitnehmererfindungen
unterliegen. Die Übertragung und
Abtretung des Nutzungs- und
Verwertungsrechts umfasst die Erlaubnis
zur Bearbeitung und Lizenzvergabe an
Dritte und ist vollumfänglich mit der
Vergütung nach § 7.1 dieser Vereinbarung
abgegolten.

	 	       Managing Director creates during the term
of his employment relationship, whether in
the framework of or outside his
employment-contract tasks, and whether
during or outside his working hours,
insofar as those work results are not
exceptionally compulsorily subject to the
Act governing employee inventions. The
transfer and assignment of the usage and
utilisation right encompasses permission to
process and grant licences to third parties
and shall be completely remunerated through
payment of the remuneration pursuant to §
7.1 of this Contract.

	 
	 	 
	3.    Der Geschäftsführer verzichtet
ausdrücklich auf alle sonstigen, ihm
etwa als Urheber/Schöpfer zustehenden
Rechte an dem Arbeitsergebnis,
insbesondere auf das Namensrecht und auf
Zugänglichmachung des Werkes. Von der
vorgenannten Übertragung ausgeschlossen
sind Arbeitsergebnisse, die weder einen
direkten noch einen indirekten
Zusammenhang mit dem
Unternehmensgegenstand der Gesellschaft
haben.

	 	3.    The Managing Director hereby expressly
waives all other rights in the work result
to which he is potentially entitled as
author/creator, particularly the right to
the use of a name and making the work
accessible. Work results which do not have
a direct or an indirect connection with the
company object of the Company shall be
excluded from the abovementioned
assignment.

	 
	 	 
	4.    Der Geschäftsführer hat eine
angemessene Dokumentation seiner
urheberrechtsfähigen Arbeitsergebnisse
sicherzustellen und auf dem Laufenden zu
halten sowie diese der Gesellschaft
jederzeit zugängig zu machen und ihm das
Eigentum daran zu übertragen.

	 	4.    The Managing Director shall be obliged
to ensure appropriate documentation of his
copyrightable work results and to keep that
documentation updated, as well as to make
this accessible to the Company at all times
and to transfer to the Company the
ownership therein.

	 
	 	 
	5.    Der Geschäftsführer hat auf Verlangen
die Gesellschaft bei der Erlangung und
Durchsetzung von Urheberrechten und
anderen gewerblichen Schutzrechten für
seine Arbeitsergebnisse in anderen
Ländern zu unterstützen. Der
Geschäftsführer wird zu diesem Zweck
alle Anträge, Abtretungserklärungen und
sonstigen rechtsgeschäftlichen
Erklärungen ausfüllen und abgeben,
sämtliche Dokumente unterzeichnen und
sonstige Rechtshandlungen wahrnehmen,
die erforderlich sind oder von der
Gesellschaft

	 	5.    The Managing Director shall be obliged
at the request of the Company to support
the latter in the acquisition and
enforcement of copyright and other
industrial property rights for his work
results in other countries. For this
purpose, the Managing Director shall fill
out and submit all applications, assignment
declarations and other legal declarations,
sign all documents and perform other legal
acts which are necessary or which are
desired by the Company in order to
completely transfer all of his rights as
author/creator to the

 

Seite 11 von 17

	 	 	 
	      gewünscht werden, um alle
seine Rechte als Urheber/Schöpfer
vollständig auf die Gesellschaft zu
übertragen und der Gesellschaft, seinen
Nachfolgern und Abtretungsempfängern zu
ermöglichen, sich den vollen und
ausschließlichen Nutzen sowie die
Vorteile dieser Arbeitsergebnisse zu
sichern und zu verwerten.

	 	      Company, and to make
it possible for the Company, its successors
and assignees to secure and to utilise the
full and exclusive use and benefits of
those work results.

	 
	 	 
	6.    Für die Erfüllung dieser
Mitwirkungspflichten erhält der
Geschäftsführer während der Dauer des
Anstellungsverhältnisses keine weitere
Vergütung, außer der Erstattung von
Kosten, die ihm durch das Verlangen der
Gesellschaft entstanden sind. § 32a UrhG
bleibt unberührt. Soweit der
Geschäftsführer die Mitwirkungspflicht
nach Beendigung des Arbeitsverhältnisses
erfüllt, wird er hierfür einen
angemessenen Tagessatz sowie die
Erstattung aller Kosten, die ihm durch
das Verlangen der Gesellschaft
entstehen, erhalten.

	 	6.    For the fulfilment of these co-operation
obligations, the Managing Director shall
not receive any further remuneration during
the term of the employment relationship,
apart from the reimbursement of costs which
he incurs as a result of the Company’s
request. § 32a of the German Copyright Act
(UrhG) shall remain unaffected hereby.
Insofar as the Managing Director fulfils
the co-operation obligation after the
cessation of the employment relationship,
he shall receive a reasonable per diem rate
therefor as well as the reimbursement of
all costs which he incurs as a result of
the Company’s request.

	 
	 	 
	7.    Im Falle der Beendigung des
Arbeitsverhältnisses verbleibt das
Arbeitsergebnis zur weiteren Nutzung in
Händen der Gesellschaft. Ein
Zugangsrecht des Urhebers zu dem
Arbeitsergebnis wird ausdrücklich
ausgeschlossen.

	 	7.    In the event of the cessation of the
employment relationship, the work result
shall remain in the hands of the Company
for further usage. A right of access by the
creator to the work result is hereby
expressly excluded.

	 
	 	 
	§ 12

	 	§ 12
	Beendigung des Vertragsverhältnisses

	 	Cessation of the Contractual Relationship
	 
	 	 
	1.    Der Vertrag beginnt an dem in § 1
genannten Datum und ist auf unbestimmte
Zeit abgeschlossen.

	 	1.    The Contract shall commence on the date
named in § 1 above, and is hereby entered
into for an indefinite period of time.

	 
	 	 
	2.    Er kann jederzeit mit einer
Kündigungsfrist von 12 Monaten zum
Monatsende ordentlich gekündigt werden,
erstmals allerdings mit Wirkung zum 30.
September 2009. Das Recht zur
außerordentlichen Kündigung wird
hierdurch nicht berührt.

	 	2.    An ordinary termination of the Contract
can be effected at any time subject to
compliance with a termination notice period
of 12 months to month’s end, however, for
the first time with effect as of September
30, 2009. The right to effect an
extraordinary termination shall remain
unaffected hereby.

 

Seite 12 von 17

	 	 	 
	3.    Die Kündigung des Vertrages sowie die
Abberufung und der Rücktritt des
Geschäftsführers haben schriftlich zu
erfolgen.

	 	3.    The termination of the Contract as well
as the removal and the resignation of the
Managing Director shall require to be in writing.

	 
	 	 
	4.    Die Gesellschaft ist nach Ausspruch
der Kündigung jederzeit berechtigt, den
Geschäftsführer unter Fortzahlung der
Grundvergütung gemäß § 7.1 dieses
Vertrages von der Verpflichtung zur
Dienstleistung für die Gesellschaft
freizustellen. Die auf den Zeitraum bis
zum Beginn der Freistellungsphase
entfallende anteilige Tantieme gemäß §
7.2 dieses Vertrags wird in vollem
Umfang gezahlt. Während der
Freistellungsphase zahlt die
Gesellschaft dem Geschäftsführer 75 %
der Zieltantieme nach § 7.2 dieses
Vertrags. Gegebenenfalls bestehender
Resturlaub ist während der Zeit der
Dienstfreistellung zu nehmen und wird
auf die Freistellung angerechnet.
Während der Freistellungsphase gilt das
vertragliche Wettbewerbsverbot gemäß § 6
dieses Vertrages unverändert fort.
Anderweitiger Verdienst des
Geschäftsführers in der
Freistellungsphase wird auf die
Vergütung nach diesem Vertrag
angerechnet und reduziert diese.

	 	4.    After termination has been declared, the
Company shall be entitled at any time to
release the Managing Director from the
obligation to render his services to the
Company, subject to continued payment of
the basic remuneration pursuant to § 7.1
hereof. The pro rata Bonus pursuant to §
7.2 hereof which accrues with regard to the
time until the commencement of the release
period shall be paid in full. During the
release period, the Company shall pay the
Managing Director 75 % of the target Bonus
pursuant to § 7.2 hereof. Any potential
unused holiday leave shall be used during,
and counted towards, the time of the
release from the obligation to render his
services. During the release period, the
contractual competition prohibition
pursuant to § 6 of this Contract shall
continue to apply unchanged. Other
remuneration received by the Managing
Director during the garden leave period
shall be set off against his remuneration
und this Contract and shall reduce that
remuneration.

	 
	 	 
	5.    Die Bestellung des Geschäftsführers
kann durch Beschluss der Gesellschafter
jederzeit widerrufen werden. Der
Widerruf gilt zugleich als Kündigung
dieses Vertrages durch die Gesellschaft
zum nächst möglichen Zeitpunkt.

	 	5.    The appointment of the Managing Director
can be revoked at any time through
resolution of the shareholders. The
revocation shall at the same time count as
termination of this Contract by the Company
as of the next possible point in time.

	 
	 	 
	6.    Das Anstellungsverhältnis endet, ohne
dass es einer Kündigung bedarf, mit
Ablauf des Monats, in dem der
Geschäftsführer die Regelaltersgrenze
der gesetzlichen Rentenversicherung
vollendet hat.

	 	6.    The employment relationship shall come
to an end, without a termination being
required, upon the expiry of the month in
which the Employee reaches the usual age
threshold of the statutory pension
insurance fund.

 

Seite 13 von 17

	 	 	 
	§ 13

	 	§ 13
	Geheimhaltung

	 	Confidentiality
	 
	 	 
	1.    Der Geschäftsführer ist verpflichtet,
gegenüber Dritten über alle
Angelegenheiten der Gesellschaft
strengstes Stillschweigen zu bewahren.
Diese Verpflichtung besteht auch nach
seinem Ausscheiden aus den Diensten der
Gesellschaft.

	 	1.    In dealings with third parties, the
Managing Director shall be obliged to
maintain the strictest silence concerning
all Company matters. This confidentiality
obligation shall continue to exist after
his departure from the service of the
Company.

	 
	 	 
	2.    Diese Verpflichtung umfasst
insbesondere Einzelheiten des
vorliegenden Vertrages mit Ausnahme
seiner Laufzeit und seiner
Kündigungsmöglichkeit. Ebenfalls
ausgenommen sind Angaben, die der
Geschäftsführer für den Abschluss einer
privaten Versicherung sowie zur
Erfüllung öffentlich-rechtlicher
Verpflichtungen benötigt.

	 	2.    This obligation shall particularly
include details of this Contract, with the
exception of its duration and possibilities
of termination. Information which the
Managing Director requires for entry into
private insurance policies as well as for
fulfilment of public law obligations shall
also be excluded from this obligation.

	§ 14

	 	§ 14
	Geschäftsunterlagen

	 	Business Documents
	 
	 	 
	1.    Der Geschäftsführer hat alle
Aufzeichnungen, Entwürfe, Korrespondenz,
Materialien, Muster, Notizen, Unterlagen
und dergleichen sowie davon etwa
gefertigte Abschriften oder Kopien
ordnungsgemäß aufzubewahren und dafür
Sorge zu tragen, dass Dritte nicht
Einsicht nehmen können.

	 	1.    The Managing Director shall be obliged
to duly store all records, drafts,
correspondence, materials, templates,
notes, documents and similar, as well as
any copies made thereof, and to ensure that
third parties cannot access these.

	 
	 	 
	2.    Jede Anfertigung von Abschriften oder
Kopien für andere als dienstliche Zwecke
ist ausgeschlossen.

	 	2.    Any copying of such documents for
purposes other than business reasons is
hereby excluded.

	 
	 	 
	3.    Die genannten Gegenstände hat der
Geschäftsführer bei seinem Ausscheiden
aus den Diensten der Gesellschaft oder
nach seiner Entbindung von der
Verpflichtung zur Dienstleistung
unverzüglich, unaufgefordert und
vollständig an die Gesellschaft
herauszugeben.

	 	3.    The items named must be returned without
undue delay, without being requested to do
so, and completely to the Company by the
Managing Director upon his departure from
the service of the Company or after his
release from the obligation to render his
services to the Company.

	 
	 	 
	4.    Ein Zurückbehaltungsrecht an diesen
Gegenständen ist ausgeschlossen, doch
darf der Geschäftsführer Kopien der
Korrespondenz zwischen ihm und der
Gesellschaft anfertigen und behalten.

	 	4.    Any right of retention to these items is
hereby excluded, but the Managing Director
may make and keep copies of the
correspondence between him and the Company.

 

Seite 14 von 17

	 	 	 
	§ 15

	 	§ 15
	Vergünstigungen

	 	Benefits
	 
	 	 
	Es ist dem Geschäftsführer untersagt,
Geschenke oder Vergünstigungen zu
eigenem oder fremden Vorteil von solchen
Personen oder Unternehmen zu fordern,
sich versprechen zu lassen oder
anzunehmen, die mit der Gesellschaft
oder mit ihr verbundenen Gesellschaften
in Geschäftsverbindung stehen oder aber
eine solche anstreben.
	 	It shall be prohibited for the Managing
Director to request or accept gifts or
benefits for his own benefit or for
third-party benefit from such individuals
who or companies which have business
dealings with the Company or its affiliates
or are striving for the same, or to allow
the same to be promised to him.
	 
	 	 
	Von diesem Verbot ausgenommen sind
gebräuchliche Gelegenheitsgeschenke,
sofern sich diese im Rahmen der jeweils
gültigen Bestimmungen der Belden Inc.
über die Annahme von Vergünstigungen
Dritter durch
Angestellte/Geschäftsführer der
Belden-Gruppe halten.
	 	Items excluded from this prohibition shall
be common occasional gifts, insofar as
these are within the framework of the
respectively-applicable provisions of
Belden Inc. concerning the acceptance of
third-party favours and perks by
employees/managing directors of the Belden
Group.
	 
	 	 
	§ 16

	 	§ 16
	Gerichtsstand

	 	Legal Venue/Applicable Law
	 
	 	 
	1.    Als Gerichtsstand für etwaige
Streitigkeiten im Zusammenhang mit
diesem Vertrag anlässlich seines
Abschlusses, der Durchführung oder
Beendigung wird Neckartenzlingen
vereinbart.

	 	1.    Neckartenzlingen is hereby agreed to be
the legal venue for any legal disputes
arising in connection with this Contract on
the occasion of its entry, performance or
cessation.

	 
	 	 
	2.    Weiterhin vereinbaren die Parteien
als zuständiges Gericht die
Zuständigkeit des Landgerichts, Kammer
für Handelssachen.

	 	2.    In addition, the parties hereby agree
that the competent court shall be the
Regional Court, Chamber for Commercial
Matters.

	 
	 	 
	3.    Der vorliegende Vertrag ist in
deutscher und englischer Sprache
abgefasst. Die Parteien sind sich
darüber einig, dass das
Austellungsverhälmis ausschließlich
deutschem Recht unterliegt. Im Falle
einer streitigen Vertragsregelung ist
die deutsche Fassung maßgeblich.

	 	3.    This Contract is drafted in German and
in English. The parties hereby agree that
the employment relationship shall be
exclusively governed by German law. In the
event of a contentious contract provision,
the German version shall be authoritative.

	 
	 	 
	§ 17

	 	§ 17
	Verfallfristen

	 	Preclusive Deadlines
	 
	 	 
	1.    Alle Ansprüche, die sich aus und im
Zusammenhang mit dem
Anstellungsverhältnis und anlässlich
seiner

	 	1.    All claims which arise out of and in
connection with the employment relationship
and on the occasion of its

 

Seite 15 von 17

	 	 	 
	       Beendigung ergeben,
verfallen, wenn sie nicht von den
Vertragsschließenden binnen einer Frist
von sechs Monaten nach ihrer Fälligkeit
schriftlich geltend werden.

	 	       cessation shall cease to be valid if they are not made in
writing by the contract parties within a
period of six months after the respective
claims become due.

	 
	 	 
	2.    Lehnt die Gegenseite den Anspruch
schriftlich ab oder erklärt sie sich
nicht innerhalb von einem Monat nach
Geltendmachung des Anspruchs, so
verfällt der Anspruch, wenn er nicht
innerhalb von drei Monaten nach der
Ablehnung oder dem Fristablauf
gerichtlich geltend gemacht wird.

	 	2.    If the respective other party rejects
the claim in writing or does not make a
declaration within one month after the
claim has been made, then the claim shall
cease to be valid if it is not made in
writing to a court within three months
after the rejection or after the expiry of
the one-month period.

	 
	 	 
	3.    Vorstehende Fristen gelten nicht für
Ansprüche aus der Haftung wegen
Vorsatzes sowie wegen der Verletzung des
Lebens, des Körpers oder der Gesundheit.

	 	3.    The above-named periods shall not apply
for claims arising out of liability due to
intentional behaviour or due to loss of
life, personal injury or damage to health.

	 
	 	 
	§ 18

	 	§ 18
	Schlussbestimmungen

	 	Final Provisions
	 
	 	 
	1.    Sollten einzelne Bestimmungen dieses
Vertrages ungültig sein oder werden, so
berührt dies die Wirksamkeit der übrigen
Bestimmungen nicht. An die Stelle
unwirksamer Absprachen tritt eine
Regelung, die der wirtschaftlichen
Zwecksetzung der Parteien am nächsten
kommt und mit den übrigen Bestimmungen
dieses Vertrages vereinbar ist.
Entsprechendes gilt, falls der Vertrag
regelungsbedürftige Lücken aufweisen
sollte.

	 	1.    Should individual provisions of this
Contract be or become invalid, the validity
of the remaining provisions shall remain
unaffected thereby. The invalid provision
shall be replaced by a valid provision
which comes as close as possible to
fulfilling the economic purpose of the
parties, and which is compatible with the
remaining provisions of this Contract. The
same shall apply if the Agreement should
prove to contain unintended lacunae.

	 
	 	 
	2.    Änderungen und Ergänzungen dieses
Vertrages bedürfen zu ihrer Wirksamkeit
der Schriftform. Dies gilt auch für die
Aufhebung des Schriftformerfordernisses.

	 	2.    Any amendments or additions to this
Contract shall require to be in writing to
be valid. The same shall also apply for the
cancellation of the written form
requirement.

Anlage/Annex: Policy Bulletin

	 	 	 	 	 	 	 
	Venlo, September 5, 2007	 	Neckartenzlingen, 5. September 2007
	 
	 	 	 	 	 	 
	/s/D. Larrie Rose

	 	 
	 	/s/Reinhard Sitzmann
	 	 
	 

	 	 	 	 	 	 

 

Seite 16 von 17

	 	 	 	 	 	 	 
	Belden Europe B.V.

	 	 	 	Belden Deutschland GmbH	 	 
	Donald Larrie Rose
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Neckartenzlingen, , 5. September 2007	 	 	 	 
	 
	 	 	 	 	 	 
	/s/Wolfgang Babel
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Dr. Wolfgang Babel
	 	 	 	 	 	 

 

Seite 17 von 17

	 	 	 
	Beide Vertragspartner bestätigen,
ein rechtsverbindlich von beiden
Seiten unterzeichnetes Exemplar
dieses
Geschäftsführeranstellungsvertrages
erhalten zu haben.

	 	Both contractual parties hereby
confirm having received a
legally-binding copy of this
Managing Director Employment
Contract signed by both parties.

	 	 	 	 	 	 	 
	Neckartenzlingen, 5. September 2007	 	Neckartenzlingen, 5. September 2007
	 
	 	 	 	 	 	 
	/s/Reinhard Sitzmann

	 	 
	 	/s/Wolfgang Babel	 	 
	 

	 	 	 	 	 	 
	Belden Deutschland GmbH

	 	 	 	Dr. Wolfgang Babel	 	 
	Reinhard Sitzmannexv10w33

 

Exhibit 10.33

HUTTIG BUILDING PRODUCTS, INC.

DEFERRED COMPENSATION PLAN

(2008 RESTATEMENT)

 

 

HUTTIG BUILDING PRODUCTS, INC.

DEFERRED COMPENSATION PLAN

(2008 RESTATEMENT)

ARTICLE I — INTRODUCTION

	1.1	 	History and Structure. The Huttig Building Products, Inc. Deferred Compensation Plan
(“Plan”) was adopted effective as of January 1, 2002.
	 
	 	 	The vested account balances in the plan were frozen as of December 31, 2004, except for
adjustments for earnings and losses, because of Section 409A of the Internal Revenue Code
enacted by the American Jobs Creation Act of 2004. Contributions after 2004 and amounts
that became vested after 2004 were credited to separate accounts designed to comply with
Section 409A. This 2008 Restatement governs payment of amounts credited to such separate
accounts.
	 
	1.2	 	Purpose of the Plan. The purpose of the Plan is to attract and retain competent management
and other highly compensated employees by offering Eligible Employees flexible compensation
opportunities, including:

	 	•	 	allowing Participants to defer current pretax income and earn a tax-deferred
rate of return on their deferred compensation in order to save for retirement and for
shorter periods of time for purposes other than retirement; and
	 
	 	•	 	replacing matching contributions from the Company that are not available under
limitations on Participants’ deferrals under Huttig’s 401(k) Plan.

	 	 	The Plan shall not constitute a “qualified plan” subject to the limitations of Section
401(a) of the Code, nor shall it constitute a “funded plan,” for purposes of such
requirements. The Plan shall be exempt from the participation and vesting requirements of
Part 2 of Title I of ERISA, the funding requirements of Part 3 of Title I of ERISA, and the
fiduciary requirements of Part 4 of Title I of ERISA by reason of the exclusions afforded
plans which are unfunded and maintained by an employer primarily for the purpose of
providing deferred compensation for a select group of management or highly compensated
employees.
	 
	1.3	 	Effect of Restatement. This 2008 Restatement is effective January 1, 2008, except as
otherwise explicitly provided in this document.
	 
	 	 	Each Participant’s vested Accounts as of December 31, 2004, without regard to any credits
for contributions or transfers as described in Sections 4.1 and 4.4 thereafter, but as
adjusted for earnings or losses in accordance with Section 4.3 from time to time, are
referred to as the “Grandfathered Accounts.” Payment of benefits credited to Grandfathered
Accounts shall be governed by the Deferred Compensation Plan as in effect on October 3,
2004.

- 1 -

 

	 	 	Amounts that became vested on or after January 1, 2005, and contributions or transfers as
described in Sections 4.1 and 4.4 for periods on and after January 1, 2005, each as
adjusted for earnings or losses in accordance with Section 4.3, are credited to separate
accounts. Payment of amounts during the period after 2004 and before 2008 that were
credited to such non-grandfathered accounts were administered in accordance with a good
faith interpretation of §409A and IRS regulations and guidance thereunder, as documented in
part in annual prospectuses, plan summaries and administration forms.
	 
	 	 	On and after January 1, 2008, payment of amounts credited to such non-grandfathered
accounts shall be governed by this 2008 Restatement, as amended from time to time.

ARTICLE II — DEFINITIONS AND CONSTRUCTION

	2.1	 	Definitions. The following words and phrases shall have the meaning set forth below,
unless a different meaning is required by the context in which the word or phrase is used.

	 	(a)	 	Account shall mean one or more bookkeeping accounts, established in accordance
with Article IV hereof, to which a Participant’s Deferred Compensation and any
Matching Contributions are credited, together with any earnings thereon.
	 
	 	(b)	 	Affiliate shall mean (i) a corporation that is a member of a controlled group
of corporations (as determined pursuant to Section 414(b) of the Code) which includes
the Company and (ii) a trade or business (whether or not incorporated) which is under
common control (as determined pursuant to Section 414(c) of the Code) of the Company.
	 
	 	(c)	 	Beneficiary shall mean the person or persons designated by the Participant in
a written instrument filed with the Committee to receive payment of the Participant’s
Account upon the death of the Participant.
	 
	 	(d)	 	Board shall mean the Board of Directors of the Company.
	 
	 	(e)	 	Claimant shall have the meaning set forth in Section 8.3 hereof.
	 
	 	(f)	 	Code shall mean the Internal Revenue Code of 1986, as amended.
	 
	 	(g)	 	Committee shall mean the individual or individuals designated by the Company
to administer the Plan in accordance with Article VIII hereof. If at any time no
Committee shall be in office, the functions of the Committee specified in the Plan
shall be exercised by the Board.
	 
	 	(h)	 	Common Stock shall mean the Common Stock, par value $.01 per share, of the
Company.

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	 	(i)	 	Company shall mean Huttig Building Products, Inc., a Delaware corporation.
	 
	 	(j)	 	Compensation shall mean a Participant’s base salary, bonus and/or commission. The Committee
may, for the next succeeding Plan Year, change the types of compensation properly deferrable
under the Plan prior to the Deferral Election Deadline.
	 
	 	(k)	 	Deferral Election shall mean the agreement between the Company and an Eligible Employee
pursuant to which the Eligible Employee consents to participation and the deferral of
Compensation hereunder, and designates the type and amount of Compensation to be deferred for
a Plan Year.
	 
	 	(1)	 	Deferral Election Deadline shall mean the date the Committee designates by Rule as the last
date an Eligible Employee may file a Deferral Election with the Committee for the next
succeeding Plan Year which shall in no event be later than the last day of the Plan Year
preceding the Plan Year for which the Deferral Election is made.
	 
	 	 	 	Notwithstanding the preceding, the Deferral Election Deadline for an Employee who becomes
an Eligible Employee during a Plan Year and who satisfies the requirements for
newly-eligible status under Section 409A of the Code, shall mean the 30th day
after such individual became an Eligible Employee.
	 
	 	(m)	 	Deferred Compensation shall mean the Compensation elected by the Participant to be deferred
pursuant to the Plan.
	 
	 	(n)	 	Eligible Employee shall mean an Employee of the Employer whom the Committee designates as
eligible to participate in the Plan. Notwithstanding the foregoing, the Committee shall
permit only a select group of management or highly compensated employees to be Eligible
Employees.
	 
	 	(o)	 	Employee shall mean any person employed as an employee by the Employer and on the payroll of
the Employer. If a person’s status as an employee is redetermined retroactively, such
redetermination shall not affect participation in the Plan prior to the redetermination.
	 
	 	(p)	 	Employer shall mean the Company and any Affiliate that has adopted the Plan with consent of
the Company.
	 
	 	(q)	 	ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended.
	 
	 	(r)	 	Fair Market Value of a share of Common Stock shall mean the fair value thereof, determined
under such Rules as the Committee may establish. Unless the Committee so establishes a
different meaning, Fair Market Value of a share of Common Stock shall mean as of a particular
date, (i) if shares of Common Stock

- 3 -

 

	 	 	 	are listed on a national securities exchange, the closing sales price per share of Common
Stock on the consolidated transaction reporting system for the principal national
securities exchange on which shares of Common Stock are listed on that date or, if there
shall have been no such sale so reported on that date, on the last preceding date on which
such a sale was so reported, (ii) if shares of Common Stock are not so listed but are
quoted on the NASDAQ National Market, the closing sales price per share of Common Stock
reported by the NASDAQ National Market on that date, or, if there shall have been no such
sales reported on that date, on the last preceding date on which such a sale was so
reported or (iii) if the Common Stock is not so listed or quoted but is traded in the
over-the-counter market, the mean between the closing bid and asked price on that date, or,
if there are no quotations available for such date, on the last preceding date on which
such quotations shall be available, as reported by the NASDAQ Stock Market, or, if not
reported by the NASDAQ Stock Market, by the National Quotations Bureau Incorporated.
	 
	 	(s)	 	Funds shall mean one or more of the mutual funds, investment portfolios or contracts
selected by the Committee.
	 
	 	(t)	 	Huttig 401(k) Plan shall mean the Huttig Building Products, Inc. Savings and Profit Sharing
Plan, as the same may be amended from time to time and intended to constitute a cash or
deferred plan in accordance with the provisions of Section 401(k)of the Code.
	 
	 	(u)	 	Participant shall mean each Eligible Employee who has properly completed and filed a
Deferral Election with the Committee.
	 
	 	(v)	 	Permanent Disability shall have the meaning given to such term in the Huttig 401(k)Plan.
	 
	 	(w)	 	Plan shall mean this Huttig Building Products, Inc. Deferred Compensation Plan, as amended
from time to time.
	 
	 	(x)	 	Plan Year shall mean the calendar year.
	 
	 	(y)	 	Pre-Retirement Account shall mean the Account or Accounts to which a Participant elects to
contribute Deferred Compensation and from which, pursuant to Article V, distributions are
made.
	 
	 	(z)	 	Retirement shall mean a Participant’s Termination of Employment on or after attainment of
age 55.
	 
	 	(aa)	 	Retirement Account shall mean the Account to which a Participant elects to contribute
Deferred Compensation and to which Company matching contributions are made, and from which,
pursuant to Article V, distributions are made.

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	 	(bb)	 	Rule shall mean a determination, regulation, standard, or rule of general
applicability made by the Committee or the Board.
	 
	 	(cc)	 	Specified Employee shall mean a Specified Employee as defined in Treas. Reg. §
1.409A — l(i) (generally officers earning over $140,000, as indexed for inflation, per
year who are among the 50 highest paid employees).
	 
	 	(dd)	 	Termination of Employment shall mean separation from service from the Company
and its affiliates (generally 50% common control with the Company), as defined in IRS
regulations under Section 409A of the Code (generally, a decrease in the performance
of services to no more than 20% of the average for the preceding 36-month period, and
disregarding leave of absences up to six months where there is a reasonable
expectation the Employee will return).

	2.2	 	Construction. If any provision of the Plan or any Rule is determined to be for any reason
invalid or unenforceable, the remaining provisions of the Plan and the remaining Rules shall
continue in full force and effect. The terms and provisions of the Plan and the Rules
hereunder shall be construed and enforced according to the principles, and in the priority,
as follows: first, in accordance with the meaning under, and which will bring the Plan into
conformity with, section 409A of the Code; and secondly in accordance with the laws of the
State of Delaware (other than its laws regarding choice of laws). The Plan shall be deemed to
contain the provisions necessary to comply with such laws. The masculine gender, where
appearing in the Plan or the Rules, shall include the feminine gender, and vice versa. The
terms “delivered to the Committee” and “filed with the Committee,” as used in the Plan or the
Rules, shall include, respectively, delivery to and filing with a person or persons
designated by the Committee for the disbursement and the receipt of administrative forms.
Headings and subheadings in the Plan or the Rules are for the purpose of reference only and
are not to be considered in the construction of the Plan or the Rules.

ARTICLE III — PARTICIPATION AND VESTING

	3.1	 	Eligibility and Participation. An Eligible Employee who properly completes and files with the
Committee a Deferral Election pursuant to which a portion of his Compensation is deferred
under the Plan shall become a Participant. A Participant shall remain a Participant with
respect to his existing Account until his entire Account under the Plan is extinguished,
through distribution or otherwise; provided, however, that except as set forth in this Section
3.1, a Participant’s Deferral Election shall be effective only for Compensation earned for
service performed during the Plan Year for which it was filed (in the case of a newly-Eligible
Employee during a Plan Year, the Deferral Election shall be effective for Compensation for
services performed after the date of such election). Base salary Compensation paid after the
end of a Plan Year for services performed during the final payroll period of the preceding
Plan Year shall be treated as base salary Compensation for services performed in the
subsequent Plan Year.

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	3.2	 	Ceasing to be an Eligible Employee. Status as an Eligible Employee will be redetermined
from time to time, at least annually; provided that an Eligible Employee may be designated
as ineligible only as of the first day of a subsequent Plan Year. If an Eligible Employee
desires to participate during a Plan Year, he must file a Deferral Election for such Plan
Year by the Deferral Election Deadline. If an individual ceases for any reason to be an
Eligible Employee, through Termination of Employment or otherwise, he shall not again
become eligible to make a Deferral Election until he again becomes an Eligible Employee.
	 
	3.3	 	Vesting. A Participant shall be 100% vested at all times in his Account balances
representing Deferred Compensation and earnings, interest and losses thereon. A Participant
shall become vested in his Account balances representing Company matching contributions that
may be credited to a Participant’s account under Section 4.4 hereof in accordance with the
following schedule:

Years of Service

	 	 	 	 	 
	             Interest	 	Vested
	Less than 1 year
	 	None
	1 year but fewer than 2
	 	 	20	%
	2 years but fewer than 3
	 	 	40	%
	3 years but fewer than 4
	 	 	60	%
	4 years but fewer than 5
	 	 	80	%
	5 years or more
	 	 	100	%

	 	 	Years of service for vesting purposes hereunder shall be determined in accordance with the
provisions of the Huttig 401(k) Plan. However, a Participant will become 100% vested,
regardless of years of service, if he suffers a Permanent Disability, reaches age 65, or
dies while actively employed.

ARTICLE IV — DEFERRAL ELECTIONS, CREDITING OF ACCOUNTS, EMPLOYER CONTRIBUTIONS

	4.1	 	Deferral Elections. Each Eligible Employee shall be provided an opportunity to make a
Deferral Election with respect to such portion of his Compensation as the Committee designates
by Rule. The Committee may require or permit separate Deferral Elections to be made with
respect to different elements of Compensation, and may provide that Deferral Elections shall
be subject to minimum and maximum limitations on the amount deferred; provided, however, that
a Participant may not defer more than 44% of his salary and 44% of his commission or bonus for
any Plan Year, or such lesser percentages established by the Committee prior to the
commencement of the Plan Year. Deferral Elections for a Plan Year shall be filed with the
Committee no earlier than the date permitted by the Committee, and no later than the Deferral
Election Deadline. Deferral Elections for a Plan Year shall become irrevocable at such time as
the Committee may designate by Rule, but (except in the case of a newly-Eligible Employee) no
later than the last day of the preceding Plan Year. A newly-Eligible Employee’s Deferral
Election

- 6 -

 

	 	 	shall become irrevocable 30 days after the date the Employee became an Eligible Employee. A
Participant’s Deferral Election shall automatically terminate upon the earlier to occur of
(i) the end of the Plan Year for which it was filed, (ii) with respect to base salary
deferrals, his Termination of Employment, or (iii) the date on which the Participant
received a hardship distribution under the
 Huttig
401(k) Plan and such plan requires that
deferrals be suspended for a period of time following the hardship distribution. If a
Deferral Election is cancelled because of a 401 (k) hardship distribution, any later
Deferral Elections shall be subject to the provisions governing initial deferral elections.
The Committee shall determine the form and manner of filing the Deferral Election, which
shall be by such means as the Committee shall require or permit, including, but not limited
to traditional writing or electronic means.
	 
	4.2	 	Participant Accounts. Pursuant to each Participant’s Deferral Election, there may be
established a Retirement Account and up to one new or existing Pre-Retirement Account, as
designated by the Participant, to which there shall be credited any Deferred Compensation.
The amounts deferred in accordance with the Participant’s Deferral Election shall be credited
to the Participant’s Account(s) as soon as administratively feasible after the regular
compensation payment dates that such amounts would otherwise have been paid as current cash
compensation had there been no deferral. Subject to limitations applicable to Account
balances invested in Common Stock as may be determined by the Committee, Participants may be
able to rebalance their accumulated Account balances among the Funds available for deferral
of Compensation under the Plan. Establishment and maintenance of Accounts hereunder shall not
be construed as giving any person any interest in assets of the Employer, or a right to
payment other than as provided hereunder. An Account shall be maintained until all amounts
credited to such Account have been withdrawn, distributed, forfeited, or otherwise
extinguished in accordance with the terms and provisions of this Plan.
	 
	4.3	 	Directed Investments; Rates of Return. Each Participant’s Account shall be credited with a
number of shares of one or more Funds (which may be hypothetical or actual, as determined by
the Committee), made available by the Committee and elected by the Participant in his Deferral
Election with regard to his Deferred Compensation. The number of such actual or hypothetical
shares shall be determined by dividing the cash amount directed to each Fund by the net asset
value of such Fund. Earnings and/or losses on Account balances shall be determined as though
such balances had actually been invested in the Funds selected by the Participant, on the
basis of actual earnings or losses of those Funds, whether or not the Company invests any
assets in any actual investment funds. The Committee may approve, as a hypothetical investment
option for a Participant’s Deferred Compensation, shares of Common Stock, and unless otherwise
determined by the Committee, credits for 50% of Company matching contributions shall be deemed
to be invested in shares of Common Stock. The number of such shares shall be determined by
dividing the amount of the Participant’s Deferred Compensation and/or the Company’s matching
contribution invested or credited in Common Stock by the Fair Market Value of the Common Stock
on the date such Deferred Compensation or matching contributions are credited to his Account.

- 7 -

 

	4.4	 	Company Contributions. The Company shall credit each Participant’s Retirement Account
with a matching contribution equal to (a) 50% of the Participant’s Deferred Compensation
(regardless of whether such Deferred Compensation is credited to his Retirement Account or
to his Pre-Retirement Account), up to a maximum of 6% of such Participant’s total
Compensation, less (b) the maximum Matching Contributions (as such term is defined in the
Huttig 401 (k) Plan) the Participant could have received in the Huttig 401 (k) Plan at a 6%
contribution rate.
	 
	 	 	When credited to an Eligible Participant’s Retirement Account, unless otherwise determined
by the Committee, 50% of any Company matching contributions will be in the form of Common
Stock. Eligible Participants may transfer (in accordance with procedures established by the
Committee) any such Company contributions out of Common Stock and into any other Funds
available under the Plan only when such amounts are fully vested in accordance with Section
3.3, or in the event that Common Stock ceases to be offered as an investment option under
the Plan.

ARTICLE V — DISTRIBUTION OF BENEFITS

	5.1	 	Time and Form of Distribution of Grandfathered Benefits. The time and form of distribution
for a Participant’s Grandfathered Benefit shall be the form and at the time or times provided
by the terms of the Plan as in effect on October 3, 2004.
	 
	5.2	 	Time of Distribution. As a part of making a Deferral Election, a Participant shall elect the
time and form of distribution of his Account. If a Participant elects to defer some of his
Compensation into a Pre-Retirement Account, as provided in Section 4.2, he shall designate a
time of payment not earlier than five years after the first year for which the Deferral
Election is made. Alternatively, the Participant’s Deferral Election may elect a distribution
at Retirement. Company Matching Contributions made pursuant to Section 4.4 are credited to the
Participant’s Retirement Account.
	 
	 	 	A Participant may elect to further defer distribution of a Pre-Retirement or Retirement
Account, or change his election from lump sum to installments or from installments to lump
sum, in accordance with Section 5.6.
	 
	5.3	 	Form of Distribution. A Participant shall elect the form of distribution on his Deferral
Election. Optional forms of distribution for Retirement Accounts shall include a single lump
sum payment or annual installment payments for 5, 10 or 15 years. Optional forms of
distribution for Pre-Retirement Accounts shall include a single lump sum payment or annual
installment payments for up to five years. If a Participant’s entire vested Account at the
time of any payment is less than $10,000, the payment shall be made in a single lump-sum,
regardless of the form of payment selected by the Participant.
	 
	 	 	Pre-Retirement and/or Retirement Accounts in which a Participant has elected payment in
installments shall continue to be credited with earnings and/or reduced to reflect losses
in accordance with Section 4.3 until such Accounts are paid in full. The amount of each

- 8 -

 

	 	 	installment payment shall be determined under the declining balance accounting method. For
example, a five year installment payout would be paid as follows: 1/5 of the Account balance
in the first year;
1/4th of
the remaining Account balance in the second year; 1/3rd of the
remaining Account balance in the third year; 1/2 of the remaining Account balance in the
fourth year; and the balance of the remaining Account balance in the fifth year.
	 
	 	 	For purposes of this Plan, a series of installment payments shall be treated as a single
payment pursuant to Treas. Reg. §1.409A-2(b)(2).
	 
	5.4	 	Alternate Time and Form of Payment. Notwithstanding a Participant’s Deferral Election, (a)
if a Participant experiences a Termination of Employment prior to the time that he is
eligible for Retirement, his entire vested Account balance shall be payable to him in a
single lump-sum immediately upon such Termination of Employment; and (b) on a Participant’s
Retirement, any Pre-Retirement Account (including Pre-Retirement Accounts in pay status)
shall be paid in accordance with the Participant’s Retirement Account election or, if no such
election has been made, in a single lump sum payment immediately on Retirement; provided,
however, if a Participant retired before January 1, 2008, then any Pre-Retirement Account
that is in pay status on January 1, 2008 shall continue to be paid in accordance with the
Participant’s election for such Pre-Retirement Account and, provided further, if a
Participant who retires in 2008 has a Pre-Retirement Account in pay status, there shall be no
change in the amount payable in 2008 from such Pre-Retirement Account and, effective January
1, 2009, the remainder of such account shall be paid in accordance with the Participant’s
Retirement Account election or, if no such election has been made, in a lump sum.
	 
	5.5	 	Distributions Due to Unforeseeable Emergency. The immediate payment of all or a portion of a
Participant’s Account may be made due to an Unforeseeable Emergency. Amounts of distributions
shall be limited to the amount reasonably necessary to satisfy the Participant’s need (plus
amounts necessary to pay taxes reasonably anticipated as a result of the distribution) after
taking into account the extent to which the Unforeseeable Emergency is or may be relieved
through reimbursement or compensation by insurance or otherwise or by liquidation of the
Participant’s assets (to the extent the liquidation of such assets would not itself cause
severe financial hardship). The Participant shall retain discretion whether to apply for early
payment due to Unforeseeable Emergency. The Committee shall retain discretion to determine
whether an Unforeseeable Emergency exists, as well as the amount reasonably necessary to
satisfy the Participant’s need.
	 
	 	 	For these purposes, an “Unforeseeable Emergency” shall mean a severe financial hardship of
the Participant resulting from an illness or accident of the Participant or the
Participant’s spouse or dependent (as defined in section 152, without regard to section
152(b)(1), (b)(2), and (d)(1)(B)); loss of the Participant’s property due to casualty; or
other similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant as defined in Section 409A of the Code and the
regulations thereunder.

- 9 -

 

	 	 	The Committee’s interpretation of this Section 5.5 shall be limited by Section 409A of the
Code, and IRS regulations and guidance thereunder.
	 
	5.6	 	Subsequent Deferral Elections. A Participant may change his distribution date or
distribution method to delay payment of the balance credited to a Pre-Retirement Account or a
Retirement Account; provided, however, that (a) such change must be made at least twelve
months before the date on which the first payment from such Pre-Retirement Account or
Retirement Account would otherwise have been made, and (b) the first payment under the new
distribution date or method is a date not less than five years from the date such payment
would otherwise have been made. Such a subsequent deferral election shall not become
effective until twelve months after the date on which such election is made. For example, if
the payment was scheduled to be made in a lump sum on January 1, 2010, a Participant could
elect installment payments over five years, so long as the election was made before January 1,
2009, and the first installment payment was deferred until at least January 1, 2015.
	 
	5.7	 	Method of Payment. All benefits under the Plan shall be paid by negotiable check or other
cash equivalent from the trust (if any) or other general funds of the Employer, or, if the
Committee so designates, in the form of a fully paid insurance or annuity contract or, subject
to the limitations of Section 11.1. in shares of Common Stock, valued at their Fair Market
Value at the time of payment.
	 
	5.8	 	Death of a Participant. In the event of the death of a Participant prior to distribution of
all amounts otherwise payable to the Participant hereunder, the Participant’s Beneficiary or
Beneficiaries shall be entitled to distribution of all vested amounts credited to the
Participant’s Account(s). Such payment shall be in the form of a single lump sum payable as
soon as administratively feasible following the death of the Participant. Each Participant may
designate a Beneficiary or Beneficiaries to receive payment of his benefits under the Plan in
the event of his death, and may revoke or change such designation, in accordance with such
procedures as the Committee shall establish. Unless the Committee otherwise provides, a
Participant may revoke his designation of Beneficiary (without the consent of any Beneficiary)
and make a new designation of Beneficiary by filing a new form with the Committee. A
properly completed and executed change in a designation of Beneficiary, unless the Committee
provides to the contrary, shall take effect immediately upon being filed with the Committee
during the Participant’s lifetime. If upon a Participant’s death no valid designation of
Beneficiary is on file with the Committee, or if a Beneficiary dies before payments are
completed and there are no living contingent or successive Beneficiaries, then, unless the
Committee establishes a different Rule, any remaining payments under the Plan shall be made
(1) to the Participant’s surviving spouse, if any, or (2) if there is no surviving spouse,
then to the Participant’s estate.
	 
	5.9	 	Withholding. The Employer shall have the right to deduct applicable taxes (including, but
not limited to taxes under the Federal Insurance Contributions Act) from any amounts payable
hereunder to a Participant or Beneficiary and from amounts otherwise subject to any tax, and
to withhold an appropriate amount of cash or a number of shares of

- 10 -

 

	 	 	Common Stock or a combination thereof for payment of taxes or to take such other action as
may be necessary in the opinion of the Company to satisfy all obligations for withholding
of such taxes.
	 
	5.10	 	Facility of Payment. In the event any distribution is payable under the Plan to a minor or
other individual who is legally, physically or mentally incompetent to receive such payment,
the Committee in its sole discretion shall pay such benefits to one or more of the following
persons: (a) directly to such minor or other person; (b) to the legal guardian or conservator
of such minor or other person; (c) to the spouse, parent, brother, sister, child or other
relative of such minor or other person for the use of such minor or other person; or (d) to
such other person as the Committee deems appropriate. The Committee shall not be required to
see to the application of any distribution so made to any of such persons, but the receipt
therefore shall be a full discharge of the liability of the Plan, the Committee, the Company,
and the trustee (if any) to such minor or other person.
	 
	5.11	 	Waiver and Release. The Committee may condition the payment of some or all benefits hereunder
on the Participant’s entering into a binding release and waiver in such form as the Committee
shall permit which must be executed not later than 30 days following a distribution event.
	 
	5.12	 	Specified Employee Six Month Deferral. Notwithstanding anything to the contrary in this
Article V, a payment on account of Termination of Employment to a Specified Employee may not
be made until at least six months after such Termination of Employment. Any payment otherwise
due in such six month period shall be suspended and become payable at the end of such six
month period. If the Participant elected installment payments, the first such payment shall
be delayed and the remaining installment payments shall be payable on the anniversary dates of
the date of Termination of Employment.
	 
	5.13	 	Actual Date of Payment. An amount payable on a date specified in this Article V shall be paid
as soon as administratively feasible after such date; but no later than the later of the end
of the calendar year in which the specified date occurs or the 15th day of the
third calendar month following such specified date. The payment date may be postponed
further if calculation of the amount of the payment is not administratively practicable due to
events beyond the control of the Company. The amount due the Participant shall be determined
based on the vested balance credited to the Account of the Participant on the actual date of
payment.
	 
	5.14	 	Automatic Deferral. Notwithstanding any other provision of this Plan to the contrary, no
amount shall be paid to any Participant before the earliest date on which the Employer’s
federal income tax deduction for such payment is not precluded by Section 162(m) of the Code.
In the event any payment is delayed solely as a result of the preceding restriction, such
payment shall be made as soon as administratively feasible following the first date as of
which Section 162(m) of the Code no longer precludes the deduction of such payment.

- 11 -

 

ARTICLE VI — PAYMENT LIMITATIONS

	6.1	 	Assignment. No Participant or Beneficiary of a Participant shall have any right to assign,
pledge, hypothecate, anticipate or in any way create a lien on any amounts payable hereunder.
No amounts payable hereunder shall be subject to assignment or transfer or otherwise be
alienable, either by voluntary or involuntary act, or by operation of law, or subject to
attachment, execution, garnishment, sequestration or other seizure under any legal, equitable
or other process, or be liable in any way for the debts or defaults of Participants and their
Beneficiaries.

ARTICLE VII — FUNDING AND EXPENSES

	7.1	 	Funding. Benefits under the Plan shall be funded solely by the Employers. Benefits
hereunder shall constitute an unfunded general obligation of the Employer of the Participant.
In the event a Participant has been employed by more than one Employer (i.e., the Company and
one of its Affiliates), benefits hereunder shall constitute an unfunded general obligation of
each of the Participant’s Employers in proportion to the amounts deferred while in the employ
of the respective Employers. All payments under the Plan shall be deemed made by the
respective Employers from general assets available to all unsecured creditors of such Employer
in the event of its insolvency. Each Participant has merely the status of a general
unsecured creditor of the Employer. Notwithstanding the foregoing, the Employer may, but need
not, create for purposes of the Plan a trust of the type commonly referred to as a “rabbi”
trust, which may, but need not, be in substantial conformity to the terms of the model trust
published by the Internal Revenue Service in Rev. Proc. 92-64 or any successor thereto. The
Employers may transfer assets to the trustee of such trust to hold and to make distributions
under the Plan on behalf of the Employers. The assets so held in trust shall remain the
general assets of the respective Employers, which are the grantors under the trust. The rights
of Participants and their Beneficiaries under the Plan and the trust shall be exclusively
unsecured contractual rights. No Participant or Beneficiary shall have any right, title or
interest whatsoever in the trust. In its discretion, the Company may direct the Employer to
purchase life insurance insuring the lives of the Participants and may require the
Participants to provide information necessary to obtain such life insurance.
	 
	7.2	 	Creditor Status. A Participant and his Beneficiary or Beneficiaries shall be general
creditors of the Employer with respect to the payment of any benefit under the Plan, unless
such benefits are provided under a contract of insurance or an annuity contract that has been
delivered to the Participant, in which case the Participant and his Beneficiary or
Beneficiaries shall look to the insurance carrier or annuity provider for payment, and not to
the Employers. The Employer’s obligation for such benefit shall be discharged by the purchase
and delivery of such annuity or insurance contract.
	 
	7.3	 	Expenses. The expenses of administering the Plan shall be borne by the Employers.

- 12 -

 

ARTICLE VIII — ADMINISTRATION

	8.1	 	Committee. Except for rights and powers expressly reserved to the Board or the Company,
the Plan will be administered by the Committee. Members of the Committee may participate in
the Plan, but no member of the Committee shall be entitled to make decisions that relate
solely to his own participation.
	 
	8.2	 	Committee Powers. The Committee shall have the power and authority in its sole and absolute
discretion:

	 	(a)	 	to make and from time to time amend Rules by which the Plan will be implemented
and administered from time to time, which Rules shall be binding on the Company,
Employers, and all Participants and their Beneficiaries, even though they may apply
retroactively to Participants whose employment has terminated;
	 
	 	(b)	 	to construe and interpret the Plan, determine the application of the Plan to
situations where such application is unclear or disputable, to resolve all questions
arising under the Plan (including questions of fact) and make equitable adjustments
for any mistakes or errors made in the administration of the Plan; provided that
individual exceptions to Rules shall not be permitted;
	 
	 	(c)	 	to determine all questions arising in the administration of the Plan, including
the power to determine the status of individuals as Eligible Employees, the rights of
Participants and their Beneficiaries and the amount of their respective benefits and
such determination, interpretation or other action shall be final and binding for all
purposes and upon all persons;
	 
	 	(d)	 	to adopt, amend and rescind such rules (including Rules), regulations and forms
as it may deem necessary for the proper and efficient administration of the Plan
consistent with its purposes, which rules may permit case-by-case determinations;
	 
	 	(e)	 	to enforce and administer the Plan in accordance with its terms and the rules,
regulations and forms it adopts; to appoint a plan administrator and to delegate to the
plan administrator such administrative duties as the Committee shall deem appropriate;
	 
	 	(f)	 	to take such action and establish such procedures as it deems necessary or
appropriate to coordinate deferrals and benefits under this Plan and any other plan;
	 
	 	(g)	 	to select, monitor and prospectively change the investment funds and rates of
return to be credited under the Plan;

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	 	(h)	 	to take such action and establish such procedures as it deems necessary or
appropriate to implement Participant elections and designations of investment funds
and rates of return, and to coordinate the Employers’ actions, if any, taken to
reduce or eliminate the Employers’ exposure to market fluctuations;
	 
	 	(i)	 	to direct the appropriate person to make payments from the Plan;
	 
	 	(j)	 	to employ such counsel, auditors, actuaries, or other specialists (who may be
counsel, auditors, actuaries or other specialists for the Company) and to engage such
clerical or other services to the extent such services are not provided by the
Company;
	 
	 	(k)	 	to maintain records concerning the Plan sufficient to prepare reports, returns
and other information required by the Plan or by law, and to communicate the terms of
the Plan and any material amendments thereto to the Eligible Employees and
Participants;
	 
	 	(1)	 	to delegate such of its powers and authorities (including the power and
authority to delegate) to such person or persons, with his, her, its or their consent,
as the Committee may appoint; and
	 
	 	(m)	 	to do all other things the Committee deems necessary or desirable for the
advantageous administration of the Plan and to make the Plan fully effective in
accordance with its terms and intent.

	8.3	 	Claims for Benefits. In the event that a Participant or Beneficiary claims to be eligible for
benefits, or claims any rights hereunder (hereinafter a “Claimant”), he must complete and
submit a written request for such benefit with the Committee setting forth his claim. The
request must be made within 60 days of the date of vesting and must be addressed to the
Committee, Huttig Building Products, Inc. at the Company’s then principal place of business.
	 
	8.4	 	Claim Decision. Upon receipt of a claim, the Committee shall advise the Claimant that a reply
will be forthcoming within 90 days and shall, in fact, deliver such reply within such period.
The Committee may, however, extend the reply period for an additional 90 days for reasonable
cause. If the claim is denied in whole or in part, the Committee shall adopt a written
opinion, using language calculated to be understood by the Claimant, setting forth:

	 	(a)	 	the specific reason or reasons for such denial;
	 
	 	(b)	 	the specific reference to pertinent provisions of the Plan on which such denial
is based;

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	 	(c)	 	a description of any additional material or information necessary for the
Claimant to perfect his claim and an explanation why such material or such
information is necessary;
	 
	 	(d)	 	appropriate information as to the steps to be taken if the Claimant wishes to
submit the claim for review; and
	 
	 	(e)	 	the time limits for requesting a review under Section 8.5 and for review under
Section 8.6 hereof.

	8.5	 	Request for Review. Within 60 days after the receipt by the Claimant of the written opinion
described above, the Claimant may request in writing that the Chief Executive Officer of the
Company review the determination of the Committee. Such request must be addressed to the Chief
Executive Officer, Huttig Building Products, Inc. at the Company’s then principal place of
business. The Claimant or his duly authorized representative may, but need not, review the
pertinent documents and submit issues and comments in writing for consideration by the Chief
Executive Officer. If the Claimant does not request a review of the Committee’s determination
by the Chief Executive Officer within such 60 day period, he shall be barred and estopped from
challenging the Committee’s determination.
	 
	8.6	 	Review of Decision. Within 60 days after the Chief Executive Officer’s receipt of a request
for review, he will review the Committee’s determination. After considering all materials
presented by the Claimant, the Chief Executive Officer will render a written opinion, written
in a manner calculated to be understood by the Claimant, setting forth the specific reasons
for the decision and containing specific references to the pertinent provisions of the Plan on
which the decision is based. If special circumstances require that the 60 day time period be
extended, the Chief Executive Officer will so notify the Claimant and will render the decision
as soon as possible, but no later than 120 days after receipt of the request for review.
	 
	8.7	 	Standard of Review. The Committee and the Chief Executive Officer shall possess and exercise
discretionary authority to make determinations as to a Participant’s eligibility for benefits
and to construe the terms of the Plan. The determination of the Chief Executive Officer shall
be final and non-reviewable unless found to be arbitrary and capricious by a court of
competent review. Such determination shall be binding upon the Employers and the Claimant.
	 
	8.8	 	Receipt and Release of Necessary Information. In implementing the terms of the Plan, the
Committee may, without the consent of or notice to any person, release to or obtain from any
other organization or person any information, with respect to any person, which the Committee
deems to be necessary for such purposes. Any Participant or Beneficiary claiming benefits
under the Plan shall furnish to the Committee such information as may be necessary to
determine eligibility for and amount of benefit, as a condition of claiming and receiving such
benefit.

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	8.9	 	Overpayment and Underpayment of Benefits. The Committee may adopt, in its sole
discretion, whatever rules, procedures and accounting practices are appropriate in providing
for the collection of any overpayment of benefits. If a Participant or Beneficiary
receives an underpayment of benefits, the Committee shall direct that immediate payment be
made to make up for the underpayment. If an overpayment is made to a Participant or
Beneficiary, for whatever reason, the Committee may, in its sole discretion, withhold
payment of any further benefits under the Plan until the overpayment has been collected or
may require repayment of benefits paid under the Plan without regard to further benefits to
which the Participant or Beneficiary may be entitled.
	 
	8.10	 	Account Statements. In accordance with Rules established by the Committee, each Participant
shall receive, at least quarterly, statements with respect to his Account(s).

ARTICLE IX — OTHER BENEFIT PLANS OF THE COMPANY

	9.1	 	Other Plans. Nothing contained in the Plan shall prevent a Participant prior to his death, or
his Beneficiary after his death, from receiving, in addition to any payments provided for
under the Plan, any payments provided for under any other plan or benefit program of the
Employer, or which would otherwise be payable or distributable to the Participant or
Beneficiary under any plan or policy of the Employer or otherwise. Nothing in the Plan shall
be construed as preventing the Company or any Affiliate from establishing any other or
different plans providing for current or deferred compensation for employees. Benefits
provided under the Plan shall not constitute earnings or compensation for purposes of
determining contributions or benefits under any other plan of an Employer, unless specifically
provided otherwise in such plan.

ARTICLE X — AMENDMENT AND TERMINATION OF THE PLAN

	10.1	 	Amendment and Termination. Except as otherwise provided in this Section 10.1, the Committee
may amend or terminate the Plan at any time and in its sole discretion, by written
resolution. Any such amendment or termination shall be binding on the Company, the Employers,
and all Participants and their Beneficiaries, even though it may be retroactive and
applicable to Participants who have incurred a Termination of Employment. The Committee may
amend any Rule at any time. However, no amendment or termination of the Plan and no amendment
of a Rule shall adversely affect the right of a Participant to payment of a benefit to which
the Participant would be entitled (then or thereafter) under the terms of the Plan if the
Participant’s employment terminated immediately before the adoption of such amendment or
termination of the Plan or Rule, unless such amendment or termination of the Plan or
amendment of the Rule, in the reasonable judgment of the Committee, is required to comply
with applicable law or to preserve the tax treatment of benefits under the Plan for the
Employers or for the Participant, or is consented to by the affected Participant. Except for
amendments necessary to comply with applicable law, no amendment of the Plan may be made
without the approval of the Board if such amendment either (a) materially increases the

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	 	 	benefits accruing to Participants under the Plan or (b) is made after the first event
constituting a part of a change in control of the Company.
	 
	 	 	Any termination of this Plan will take place only as permitted by the Commissioner of the
Internal Revenue Service in generally applicable guidance issued under Section 409A of the
Code and the regulations thereunder. A termination of the Plan must comply with the
provisions of Section 409A of the Code and the regulations and guidance promulgated
thereunder, including, but not limited to, restrictions on the timing of final distributions
and the adoption of future deferred compensation arrangements.
	 
	10.2	 	Continuation. The Company intends to continue the Plan indefinitely, but nevertheless
assumes no contractual obligation beyond the promise to pay the benefits described in this
Plan to its Participants.

ARTICLE XII — SHARES OF COMMON STOCK

	11.1	 	Shares Available for Issuance. Any shares of Common Stock that may be distributed to
Participants in accordance with Article V hereof shall be limited to available shares that may
be purchased in the open market or in private transactions or held as treasury shares and may
not be authorized but unissued shares of Common Stock.
	 
	11.2	 	Adjustments in Event of Changes in Capitalization. In the event of any change in the
outstanding Common Stock of the Company by reason of any stock split, share dividend,
recapitalization, merger, consolidation, reorganization, combination, or exchange or
reclassification of shares, split-up, split-off, spin-off, liquidation or other similar change
in capitalization, or any distribution to common shareholders other than cash dividends, the
number or kind of hypothetical shares or share equivalents that may be credited under the Plan
shall be automatically adjusted so that the proportionate interest of the Participants shall
be maintained as before the occurrence of such event. Such adjustment shall be conclusive and
binding for all purposes of the Plan.

ARTICLE XII — MISCELLANEOUS

	12.1	 	No Right to Continued Employment. Nothing contained in the Plan shall be construed as a
contract of employment between the Company or any Affiliate and an employee, or as a right of
any person to be continued in the employment of the Company or any Affiliate, or as a
limitation of the right of the Company or an Affiliate to discharge any of its employees, with
or without cause.
	 
	12.2	 	Indemnification. The Company hereby indemnifies each member of the Committee and each
employee who is delegated responsibilities under the Plan against any and all liabilities and
expenses, including attorney’s fees, actually and reasonably incurred by them in connection
with any threatened, pending or completed legal action or judicial or administrative
proceeding to which they may be a party, or may be threatened to be made

- 17 -

 

	 	 	a party, by reason of membership on such Committee or due to a delegation of
responsibilities, except with regard to any matters as to which they shall be adjudged in
such action or proceeding to be liable for gross negligence or willful misconduct in
connection therewith.
	 
	12.3	 	Successors. All obligations of the Company under the Plan shall be binding on any
successor, whether the existence of such successor is the result of a direct or indirect
purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.
	 
	12.4	 	No Fiduciary Relationship. Nothing contained in the Plan and no action taken pursuant to the
provisions hereof shall create or be construed to create a trust of any kind, or a fiduciary
relationship between the Company and the Participant or any other person.
	 
	12.5	 	Risk of Loss. Each Participant agrees to assume all risk in connection with the value of his
Accounts under the Plan.
	 
	12.6	 	Governing Law. The Plan shall be construed and administered in accordance with the laws of
the State of Missouri (without regard to the principles of conflicts of law which might
otherwise apply) to the extent not pre-empted by ERISA.

     IN WITNESS WHEREOF, Huttig Building Products, Inc. has adopted this 2008 Restatement of the
Plan this 29th day of January, 2008, effective as of January 1, 2008.

	 	 	 	 	 
	 	 	HUTTIG BUILDING PRODUCTS, INC.

 	 
	 	By:  	/s/ David L. Fleisher
 	 
	 	 	Vice President — Chief Financial Officer 	 
	 	 	 	 
	 

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