Document:

exv10w7

 

Exhibit 10.7

May 26, 2005

Mr. Mark Tremallo

5 Stratford Road

Winchester, MA 01890

Re:     Change in Control / Severance Agreement

Dear Mark:

This letter sets out the severance arrangements concerning your employment with Skyworks Solutions,
Inc. (“Skyworks”).

1. Change of Control

	 	1.1.  	If: (i) a Change of Control occurs while you are employed by Skyworks and (ii) your
employment with Skyworks is involuntarily terminated without Cause within one (1) year
after the Change of Control, then you will receive the benefits provided in Section 1.3
below.
	 
	 	1.2.  	“Change of Control” means an event or occurrence set forth in any one or more
of subsections (a) through (d) below (including an event or occurrence that constitutes a
Change of Control under one of such subsections but is specifically exempted from another
such subsection):

     (a) the acquisition by an individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after
such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3
promulgated under the Exchange Act) 40% or more of either (x) the then-outstanding shares of
common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined
voting power of the then-outstanding securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting Securities”); provided,
however, that for purposes of this subsection (a), the following acquisitions shall not
constitute a Change of Control: (i) any acquisition directly from the Company (excluding an
acquisition pursuant to the exercise, conversion or exchange of any security exercisable
for, convertible into or exchangeable for common stock or voting securities of the Company,
unless the Person exercising, converting or exchanging such security acquired such security
directly from the Company or an underwriter or agent of the Company), (ii) any acquisition
by the Company, (iii) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the Company, or (iv)
any acquisition by

781.376.3000 www.skyworksinc.com   20 Sylvan Rd. Woburn, MA 01801 USA

 

 

Mr. Mark Tremallo

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May 26, 2005

any corporation pursuant to a transaction which complies with clauses (i) and (ii) of
subsection (c) of this Section 1.2; or

     (b) such time as the Continuing Directors (as defined below) do not constitute a
majority of the Board (or, if applicable, the Board of Directors of a successor corporation
to the Company), where the term “Continuing Director” means at any date a member of the
Board (i) who was a member of the Board on the date of the execution of this Agreement or
(ii) who was nominated or elected subsequent to such date by at least a majority of the
directors who were Continuing Directors at the time of such nomination or election or whose
election to the Board was recommended or endorsed by at least a majority of the directors
who were Continuing Directors at the time of such nomination or election; provided,
however, that there shall be excluded from this clause (ii) any individual whose
initial assumption of office occurred as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents, by or on behalf of a person other than the Board; or

     (c) the consummation of a merger, consolidation, reorganization, recapitalization or
statutory share exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company in one or a series of transactions (a
“Business Combination”), unless, immediately following such Business Combination, each of
the following two conditions is satisfied: (i) all or substantially all of the individuals
and entities who were the beneficial owners of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of
common stock and the combined voting power of the then-outstanding securities entitled to
vote generally in the election of directors, respectively, of the resulting or acquiring
corporation in such Business Combination (which shall include, without limitation, a
corporation which as a result of such transaction owns the Company or substantially all of
the Company’s assets either directly or through one or more subsidiaries) (such resulting or
acquiring corporation is referred to herein as the “Acquiring Corporation”) in substantially
the same proportions as their ownership, immediately prior to such Business Combination, of
the Outstanding Company Common Stock and Outstanding Company Voting Securities,
respectively; and (ii) no Person (excluding any employee benefit plan (or related trust)
maintained or sponsored by the Company or by the Acquiring Corporation) beneficially owns,
directly or indirectly, 40% or more of the then outstanding shares of common stock of the
Acquiring Corporation, or of the combined voting power of the then-outstanding securities of
such corporation entitled to vote generally in the election of directors (except to the
extent that such ownership existed prior to the Business Combination); or

     (d) approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company.

	 	1.3.  	On the date of any termination described in Section 1.1, (i) Skyworks will pay you a
lump sum equal to one (1) times your total annual compensation for the twelve month period
prior to the Change of Control, including all wages, salary, bonus (as described

 

 

Mr. Mark Tremallo

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May 26, 2005

below) and incentive compensation, whether or not includable in gross income for federal
income tax purposes; and (ii) all of your Skyworks stock options will become immediately
exercisable and, except as otherwise stated in this agreement, remain exercisable for a
period of twelve (12) months after the termination date, subject to their other terms and
conditions; and each outstanding restricted stock award and any other award that is based
upon the common stock of Skyworks shall become immediately vested. For purposes of the
preceding sentence, the bonus to be taken into account shall be the greater of your average
bonus for the three years prior to the year in which the Change of Control occurs or your
target bonus for the year in which the Change of Control occurs.

2. Termination Without Cause

	 	2.1.  	If, while you are employed by Skyworks, your employment with Skyworks is involuntarily
terminated without Cause, then you will receive the benefits specified in Section 2.3
below. If your employment is terminated involuntarily by Skyworks for Cause or by you, you
will not be entitled to receive the benefits specified in Section 2.3 below. This Section
2.1 shall not apply if you are entitled to receive the benefits set forth in Section 1.3
above.
	 
	 	2.2.  	“Cause” will mean: (i) deliberate dishonesty significantly detrimental to the best
interests of Skyworks or any subsidiary or affiliate; (ii) conduct on your part
constituting an act of moral turpitude; (iii) willful disloyalty to Skyworks or refusal or
failure to obey the directions of the Board of Directors; (iv) incompetent performance or
substantial or continuing inattention to or neglect of duties assigned to you. Any
determination of Cause must be made by the full Board of Directors at a meeting duly
called, with you present and voting and, if you wish, with your legal counsel present.
	 
	 	2.3.  	On the date of any termination described in Section 2.1, (i) Skyworks will pay you a
lump sum equal to (x) one (1) times your then current annual base salary, plus (y) any
bonus then due under Skyworks’ bonus plan, whether or not includable in gross income for
federal income tax; and (ii) all of your Skyworks stock options, will, except as otherwise
stated in this agreement, remain exercisable for a period of 12 months after the
termination date, subject to their other terms and conditions.

3. Non-Competition

During the term of your employment with Skyworks and for the twelve (12) months after the date
on which your employment with Skyworks is voluntarily or involuntarily terminated (the
“Noncompete Period”), you will not engage in any employment, consulting or other activity that
competes with the business of Skyworks or any subsidiary or affiliate of Skyworks (collectively,
the “Company”). You acknowledge and agree that your direct or indirect participation in the
conduct of a competing business alone or with any other person will materially impair the
business and prospects of Skyworks. During the Noncompete Period, you will not (i) attempt to
hire any director, officer, employee or agent of Skyworks,

 

 

Mr. Mark Tremallo

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May 26, 2005

(ii) assist in such hiring by any other person, (iii) encourage any person to terminate his or
her employment or business relationship with Skyworks, (iv) encourage any customer or supplier
of Skyworks to terminate its relationship with Skyworks, or (v) obtain, or assist in obtaining,
for your own benefit (other than indirectly as an employee of the Company) any customer of
Skyworks. If any of the restrictions in this Section 3 are adjudicated to be excessively broad
as to scope, geographic area, time or otherwise, said restriction shall be reduced to the extent
necessary to make the restriction reasonable and shall be binding on you as so reduced. Any
provisions of this section not so reduced will remain in full force and effect.

It is understood that during the Noncompete Period, you will make yourself available to the
Company for consultation on behalf of the Company, upon reasonable request and at a reasonable
rate of compensation and at reasonable times and places in light of any commitment you may have
to a new employer.

You understand and acknowledge that the Company’s remedies at law for breach of any of the
restrictions in this Section are inadequate and that any such breach will cause irreparable harm
to Skyworks. You therefore agree that in addition and as a supplement to such other rights and
remedies as may exist in Skyworks’ favor, Skyworks may apply to any court having jurisdiction to
enforce the specific performance of the restrictions in this Section, and may apply for
injunctive relief against any act which would violate those restrictions.

4. Death or Disability

In the event of your death at any time during your employment by Skyworks, all of your then
outstanding Company stock options, whether or not by their terms then exercisable, will become
immediately exercisable and remain exercisable for a period of one year thereafter, subject to
their other terms and conditions.

In the event of your disability at any time during your employment by Skyworks, all of your then
outstanding Company stock options, whether or not by their terms then exercisable, will become
immediately exercisable and remain exercisable so long as you remain an employee or officer of
Skyworks and for a period of one year thereafter, subject to their other terms and conditions.

5. Miscellaneous

All claims by you for benefits under this Agreement shall be directed to and determined by the
Board of Directors of the Company and shall be in writing. Any denial by the Board of Directors
of a claim for benefits under this Agreement shall be delivered to you in writing and shall set
forth the specific reasons for the denial and the specific provisions of this Agreement relied
upon. The Board of Directors shall afford a reasonable opportunity to you for a review of the
decision denying a claim. Any further dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration in Boston, Massachusetts, in
accordance with the rules of the American Arbitration Association then in effect. Judgment may
be entered on the arbitrator’s award in any court having jurisdiction. The Company agrees to
pay as incurred, to the full extent permitted by law, all

 

 

Mr. Mark Tremallo

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May 26, 2005

legal, accounting and other fees and expenses which you may reasonably incur as a result of any
claim or contest (regardless of the outcome thereof) by the Company, you or others regarding the
validity or enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereof (including as a result of any contest by you regarding the
amount of any payment or benefits pursuant to this Agreement), plus in each case interest on any
delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Code.

Notwithstanding anything in this letter to the contrary, no provision of this letter will
operate to extend the term of any option beyond the term originally stated in the applicable
option grant or option agreement. This agreement contains the entire understanding of the
parties concerning its subject matter. This agreement may be modified only by a written
instrument executed by both parties. This agreement replaces and supersedes all prior
agreements relating to your employment or severance. This agreement will be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts.

Neither you nor the Company shall have the right to accelerate or to defer the delivery of the
payments to be made under Section 1.3 or Section 2.3; provided, however, that if
you are a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the Internal Revenue
Code of 1986, as amended (the “Code”) and any of the payments to be made to you hereunder
constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code,
then the commencement of the delivery of any such payments will be delayed to the date that is 6
months after your date of termination.

Please sign both copies of this letter and return one to Skyworks.

	 	 	 
	Sincerely,

	 	AGREED TO:
	 
	 	 
	/s/ David J. Aldrich

	 	/s/ Mark Tremallo
	 

	 	 
	David J. Aldrich,

	 	Mark Tremallo
	President and CEO
	 	 
	 
	 	 
	

	 	Date: May 26, 2005<PAGE>

                                                                   EXHIBIT 10.24

                               SHOPKO STORES, INC.
                                      2005
                      DIRECTORS DEFERRED COMPENSATION PLAN

                           EFFECTIVE NOVEMBER 18, 2004

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                  <C>
Section   1.      Establishment and Purpose.....................................      1
          1.1     Establishment.................................................      1
          1.2     Purpose.......................................................      1
Section   2.      Definitions...................................................      1
          2.1     Definitions...................................................      1
          2.2     Gender and Number.............................................      4
Section   3.      Eligibility For Participation.................................      4
Section   4.      Election to Defer.............................................      4
          4.1     Deferrals.....................................................      4
          4.2     Procedures....................................................      4
          4.3     Maximum and Minimum Deferrals.................................      5
          4.4     Election to Defer Irrevocable.................................      5
          4.5     Early Distribution Deferrals..................................      5
Section   5.      Accounts......................................................      5
          5.1     Establishment and Crediting of Account........................      5
          5.2     Compensation Deferrals........................................      6
          5.3     Investment Elections..........................................      6
          5.4     Crediting Rate................................................      6
          5.5     Contractual Obligation........................................      6
          5.6     Charges Against and Balance of Accounts.......................      7
          5.7     Statement of Accounts.........................................      7
Section   6.      Payment of Benefits...........................................      7
          6.1     Termination Benefits..........................................      7
          6.2     Benefits Following a Change of Control........................      7
          6.3     Survivorship Benefits.........................................      8
          6.3.1   Death Prior to Commencement of Benefits.......................      8
          6.3.2   Death After Commencement of  Benefits.........................      8
          6.4     Small Account Exception.......................................      8
          6.5.    Recipients of Payments; Designation of Beneficiary............      8
          6.6     Financial Emergency...........................................      9
          6.7     Pre-Retirement Benefits.......................................      9
Section   7.      Forfeiture....................................................     10
Section   8.      Non-Transferability...........................................     10
Section   9.      Administration................................................     10
          9.1     Administration................................................     10
          9.2     Finality of Determination.....................................     10
          9.3     Claims Procedure..............................................     10
          9.3.1   Original Claim................................................     11
          9.3.2   Claim Review Procedure........................................     11
          9.3.3   General Rules.................................................     12
          9.4     Expenses......................................................     13
          9.5     Tax Withholding...............................................     13
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                  <C>
Section   10.     Amendment and Termination.....................................     13
Section   11.     Applicable Law................................................     14
Section   12.     Binding Agreement.............................................     14
Section   13.     Notice........................................................     14
Section   14.     Errors in Benefit Statement or Distribution...................     14
</TABLE>

<PAGE>

                               SHOPKO STORES, INC.
                                      2005
                      DIRECTORS DEFERRED COMPENSATION PLAN

SECTION 1. ESTABLISHMENT AND PURPOSE

1.1   ESTABLISHMENT

ShopKo Stores, Inc., a Wisconsin corporation (hereinafter called the "Company"),
by action of its Board of Directors, hereby establishes this deferred
compensation plan for certain of its directors known as the SHOPKO STORES, INC.
2005 DIRECTORS DEFERRED COMPENSATION PLAN (hereinafter called the "Plan"),
effective November 18, 2004.

1.2   PURPOSE

The purpose of the plan is (i) to attract high quality directors by providing a
means whereby amounts payable by the Company to directors may be deferred to a
future period, (ii) to motivate such directors to continue to make contributions
to the growth and profits of the Company and (iii) to provide such directors
certain benefits as hereinafter described upon termination as a Director.

SECTION 2. DEFINITIONS

2.1   DEFINITIONS

Whenever used hereinafter, the following terms shall have the meaning set forth
below:

      (a)   "Account" means the account or accounts established for a Particular
            Participant pursuant to Section 5 of the Plan.

      (b)   "Administrator" means the person or persons appointed by the
            Retirement Committee of the Company to administer the Plan pursuant
            to Section 9 of the Plan.

      (c)   "Beneficiary" means the person designated by a Participant pursuant
            to Section 6.6 hereof.

      (d)   "Board" means the Board of Directors of the Company.

      (e)   "Change of Control" means any of the following events:

            (1) the acquisition by an individual, entity or group (within the
      meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
      1934, as amended (the "Exchange Act") (a "Person") of beneficial ownership
      (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
      20% or more of either (i) the then outstanding shares of Common Stock of
      the Company (the "Outstanding Company Common Stock") or (ii) the combined
      voting power of the then outstanding voting securities of the Company
      entitled to vote generally in the election of directors (the "Outstanding

                                       1
<PAGE>

      Company Voting Securities"); provided, however, that for purposes of this
      subsection (1), the following acquisitions shall not constitute a Change
      of Control: (i) any acquisition directly from the Company, (ii) any
      acquisition by the Company, (iii) any acquisition by any employee benefit
      plan (or related trust) sponsored or maintained by the Company or any
      corporation controlled by the Company, (iv) any acquisition by any
      corporation pursuant to a transaction which complies with clauses (i) and
      (ii) of subsection (3) below, or (v) any acquisition of 20% or more but
      less than a majority of either the Outstanding Company Common Stock or the
      Outstanding Company Voting Securities by any individual, entity or group
      if at least a majority of the members of the Board of Directors of the
      Company were members of the Incumbent Board, as defined below, at the time
      of such acquisition; or

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

            (3) consummation of a reorganization, merger or consolidation or
      sale or other disposition of all or substantially all of the assets of the
      Company for which approval of the shareholders of the Company is required
      (a "Business Combination"), in each case, unless, immediately following
      such Business Combination, (i) all or substantially all of the individuals
      and entities who were the beneficial owners, respectively, of the
      Outstanding Company Common Stock and Outstanding Company Voting Securities
      immediately prior to such Business Combination beneficially own, directly
      or indirectly, more than 50% of, respectively, the then outstanding shares
      of common stock and the combined voting power of the then outstanding
      voting securities entitled to vote generally in the election of directors,
      as the case may be, of the corporation resulting from such Business
      Combination (including, without limitation, a corporation which as a
      result of such transaction owns the Company or all or substantially all of
      the Company's assets either directly or through one or more subsidiaries)
      in substantially the same proportions as their ownership, immediately
      prior to such Business Combination of the Outstanding Company Common Stock
      and Outstanding Company Voting Securities, as the case may be and (ii) at
      least a majority of the members of the Board of Directors of the
      corporation resulting from such Business Combination were members of the
      Incumbent Board at the time of the execution of the initial agreement, or
      of the action of the Board, providing for such Business Combination; or

            (4) approval by the shareholders of the Company of a complete
      liquidation or dissolution of the Company.

                                       2
<PAGE>

      (f)   "Chief Executive Officer" means the chief executive officer of the
            Company or the person who regularly performs the duties normally
            associated with such office on behalf of the Company.

      (g)   "Company" means SHOPKO STORES, INC., a Wisconsin corporation.

      (h)   "Compensation" means the Participant's annual retainer and meeting
            fees for serving as a Director payable by the Company, before
            reductions for deferrals under the Plan.

      (i)   "Code" means the Internal Revenue Code of 1986, as amended.

      (j)   "Crediting Rate" means the notional gains and losses credited on a
            Participant's Account balance based on such Participant's choice
            among investment alternatives made available by the Administrator
            pursuant to Section 5.4 of the Plan.

      (k)   "Deferred Compensation Election Form" means a written agreement
            between a Participant and the Company whereby the Participant agrees
            to defer a portion of his Compensation and the Company agrees to
            make benefit payments all in accordance with the terms and
            conditions of the Plan. The Deferred Compensation Election Form may
            take the form of an electronic communication followed by appropriate
            written confirmation as determined by the Administrator.

      (l)   "Director" means an individual who is a member of the Board and who
            is not an employee of the Company.

      (m)   "Effective Date" means November 18, 2004.

      (n)   "Participant" means those eligible Directors who have elected to
            participate in the Plan by filing a Deferred Compensation Election
            from hereunder.

      (o)   "Plan Year" means the calendar year.

      (p)   "Retirement Committee" means the SHOPKO STORES, INC. Retirement
            Committee appointed by the Board for the purpose of performing
            certain administrative functions with respect to the employee
            benefit plans of the Company, including the Plan.

      (p)   "Settlement Date" means the date by which a lump sum payment shall
            be made or the date by which installment payments shall commence
            pursuant to Section 6. Unless otherwise specified, the Settlement
            Date shall be the later of (i) the last day of January of the Plan
            Year following the year in which the event triggering distribution
            occurs or (ii) ninety (90) days following such event. In the case of
            death, the event triggering payout shall be deemed to occur upon the
            date the Administrator is provided with the documentation reasonably
            necessary to establish the fact of the Participant's death.

                                       3
<PAGE>

      (q)   "Valuation Date" means the date through which notional earnings and
            losses are credited and shall be the last day of the month preceding
            the month in which the distribution or other basis for valuation
            occurs.

2.2   GENDER AND NUMBER

Except when otherwise indicated by the context, any masculine terminology, when
used in the Plan, shall also include the feminine gender and the definition or
use of any term herein in the singular shall also include the plural.

SECTION 3. ELIGIBILITY FOR PARTICIPATION

Participation in the Plan is limited to Directors. Directors eligible to become
Participants shall be entitled to defer Compensation hereunder as of the first
day of the Plan Year if they are directors as of the Effective Date, or the
first day of the Plan Year following their becoming a Director; provided they
submit a Deferred Compensation Election Form to the Administrator in accordance
with Section 4.1 of the Plan. Notwithstanding the foregoing, the Retirement
Committee may establish a special enrollment period for Directors joining the
Board during a Plan Year. Such special enrollment period shall run for a maximum
of thirty days following the person's appointment/election as a Director. A
participant shall cease to be a Participant upon termination as a Director.

SECTION 4. ELECTION TO DEFER

4.1   DEFERRALS

Any Director eligible to become a Participant may elect to defer Compensation,
otherwise payable in subsequent Plan Years, by submitting a Deferred
Compensation Election Form to the Administrator during the enrollment period
established by the Administrator, but in no event later than December 31 of the
year prior to the Plan Year to which the election relates. The Retirement
Committee may establish a special enrollment period for Directors joining the
Board during a Plan Year to allow such Directors to defer Compensation payable
for such Plan Year. The enrollment period shall be the thirty days following the
person's appointment/election as a Director and shall relate to pay periods
beginning after the date of the deferral election.

4.2   PROCEDURES

A participant shall make the election provided for in Section 4.1 hereof by
executing a Deferred Compensation Election Form in the form provided by the
Administrator, subject to such terms and conditions as the Retirement Committee
may impose, including, but not limited to, medical examinations, health
screening, medical records reviews, etc. The Deferred Compensation Election Form
shall set forth the Participant's election to defer any whole percentage of
Compensation earned by the Participant during the Plan Year in accordance with
Section 4.3. A Participant shall only be entitled to defer Compensation in the
amounts and for the periods determined, from time to time, in the sole and
absolute discretion of the Retirement Committee. A Deferred Compensation
Election Form shall be effective if, and only if, it is timely accepted by the
Administrator on behalf of the Company. If accepted by the Administrator, the

                                       4
<PAGE>

Compensation to be deferred, as specified in the Deferred Compensation Election
Form, shall be deferred and the Participant's Compensation shall be
correspondingly reduced.

4.3   MAXIMUM AND MINIMUM DEFERRALS

The following maximum and minimum deferrals of Compensation shall apply to the
amount to be deferred by any Participant, provided, however, that the Retirement
Committee may from time to time, in its sole and absolute discretion, adjust the
maximum and minimum deferrals permitted hereunder:

            (i)   Minimum Deferral: one percent (1%) of Compensation;

            (ii)  Maximum Deferral: one hundred percent (100%) of Compensation.

4.4   ELECTION TO DEFER IRREVOCABLE

Except as provided in this Plan or by action of the Retirement Committee, a
Participant's election to defer any amounts of any nature whatsoever pursuant to
the Plan shall be irrevocable when made and accepted by the Administrator and
shall not be subject to amendment or modification in any manner whatsoever
thereafter.

4.5   EARLY DISTRIBUTION DEFERRALS

At the time of submitting a Deferred Compensation Election Form, a Participant
may make an irrevocable election to create a Scheduled Withdrawal Account as to
the amounts deferred pursuant to that Form, including any earnings thereon,
which will be paid out at an earlier time than termination as a Director as
provided in Section 6 hereunder; provided, however, that the deferral period
shall in no case be less than three (3) years from the first day of the Plan
Year to which the Deferred Compensation Election Form applies; provided,
further, that the payment of the Scheduled Withdrawal Account shall be in one
lump sum, and, once paid, the Participant shall be entitled to no further
benefits with respect to such Scheduled Withdrawal Account. A Participant may
have multiple Scheduled Withdrawal Accounts.

SECTION 5. ACCOUNTS

5.1   ESTABLISHMENT AND CREDITING OF ACCOUNT

The Company shall establish a separate Account on its books with respect to each
deferral election made by each Participant, and shall credit to such Account(s)
certain amounts in accordance with the provisions of the Plan. Accounts shall be
deemed to be credited with notional gains or losses as provided in Section 5.4
from the date deferral is credited to the Account through the Valuation Date.

5.2   COMPENSATION DEFERRALS

The Compensation that is deferred pursuant to a Participant's Deferred
Compensation Election Form shall be credited to a Participant's Account as of
the date the Participant would have otherwise received the Compensation. The
Company shall be entitled to deduct from the Participant's Compensation which is
subject to a Deferred Compensation Election Form any amount it is required to
withhold or collect under any federal, state or local law for taxes or other
charges, including, without limitation, Social Security (FICA) and Medicare
taxes.

                                       5
<PAGE>

5.3   INVESTMENT ELECTIONS

The Administrator shall establish a procedure by which a Participant may elect
among investment alternatives or rates made available by the Administrator and
by which the Participant may change investment elections at least quarterly. The
Administrator may allow a Participant to make a different election for each
Account, or may provide that the investment election applies of all of a
Participant's Accounts. The Participant's choice among investments shall be
solely for purposes of calculating the Crediting Rate. If the Participant fails
to elect an investment election, the Crediting Rate shall be based on the
investment alternative which is a money market fund or alternative most similar
to a money market fund. At no time shall the Company be obligated to set aside
or invest funds as directed by the Participant and, if the Company elects to
invest funds as directed by the Participant, the Participant shall have no more
right to such investments than any other unsecured general creditor.

5.4   CREDITING RATE

The Crediting Rate on amounts in a Participant's Account(s) shall be based on
the Participant's investment election(s) pursuant to Section 5.3. A
Participant's Account(s) shall reflect the investments selected by the
Participant. If an investment on which the Crediting Rate is based sustains a
loss, the Participant's Account(s) shall be reduced to reflect such loss. During
installment distributions, a Participant's Account(s) shall continue to be
credited at the Crediting Rate.

5.5   CONTRACTUAL OBLIGATION

It is intended that the Company is under a contractual obligation to make
payments in accordance with terms and conditions of the Plan. A Participant
shall have no rights to such payments, other than as a general, unsecured
creditor of the Company. Account balances shall not be financed through a trust
fund or any other assets or properties in which a Participant has any interest
whatsoever. Payments from such Accounts shall be made out of the general funds
of the Company. All such Accounts shall be utilized solely as a device for the
measurement and determination of the amounts to be paid to a Participant
pursuant to the Plan. Such Accounts shall not constitute or be treated as a
trust fund or an interest in any specific assets or properties of the Company of
any sort.

5.6   CHARGES AGAINST AND BALANCE OF ACCOUNTS

Each Participant's Account, as of each Valuation Date, shall consist of the
balance of such Account as of the immediately preceding Valuation Date, plus
deferrals credited to the Account since the immediately preceding Valuation
Date, plus (or minus if the investment return is negative) the amount to be
credited to such Account by the Company based on the Crediting Rate pursuant to
Section 5.4 hereof, (taking into account the timing of any contribution or
distribution), less the amount of all distributions, if any, made from such
Account since the immediately preceding Valuation Date.

5.7   STATEMENT OF ACCOUNTS

The Administrator, shall from time to time, at least quarterly, provide to each
Participant a statement in such form as the Retirement Committee deems desirable
setting forth the Participant's Accounts as of the end of the prior period.

                                       6
<PAGE>

SECTION 6. PAYMENT OF BENEFITS

6.1   TERMINATION BENEFITS

Upon the Participant's termination as a Director, for any reason, including
Death, the Participant shall be entitled to receive an amount equal to the total
balance(s) of the Participant's Account(s) credited with notional earnings as
provided in Section 5 through the Valuation Date. The Participant may elect, at
the same time he makes a deferral election, to receive benefits from the Account
credited with such deferrals, in a lump sum or in annual installments over 3, 5,
10 or 15 years. In other words, the Participant may have different benefit
payout elections for each of his or her Accounts. If the Participant fails to
make a timely election, the benefits shall be paid over fifteen (15) years.
Payments shall begin on the Settlement Date following termination, unless the
Participant has made a timely election to have payments begin on any one of the
first five (5) anniversaries of such date but in no event later than the
Settlement Date following the date the Participant attains age seventy (70). An
election to change the form of benefit payout for any Account may be made at any
time prior to termination by submitting to the Administrator the form provided
for such purpose, but elections shall not be effective unless made no less than
thirteen (13) calendar months prior to termination, and shall only be effective
if they comply with Section 409A of the Code and any regulations promulgated
thereunder.

6.2   BENEFITS FOLLOWING A CHANGE OF CONTROL

A new Participant may make an irrevocable election with respect to all future
deferral Accounts on the Participant's first Deferred Compensation Election
Form, to receive the full amount in his Account(s), credited with notional
earnings as provided in Section 5 through the Valuation Date, in the event of a
Change of Control prior to Termination of Employment. Such benefit shall be
payable in a lump sum no later than the last day of the month following the
month in which such Change of Control occurs, unless the Participant has elected
in the Deferred Compensation Election Form to have such benefit paid in five (5)
annual installments beginning on such date. In no event will accelerated
payments of Accounts be made by the Administrator under this Section 6.2 if
doing so would violate Section 409A of the Code and any regulations promulgated
thereunder.

6.3   SURVIVORSHIP BENEFITS

6.3.1 DEATH PRIOR TO COMMENCEMENT OF BENEFITS

If a Participant dies prior to receiving any benefits due hereunder, the Company
shall pay to the Participant's Beneficiary a benefit equal to the Participant's
Account(s) at death credited with notional earnings as provided in Section 5,
payable in one lump sum as soon as possible after the Retirement Committee
receives a certified copy of the Participant's death certificate. Payment of the
benefit under this Section 6.31 shall relieve the company of any further
obligation to pay benefits under the Plan.

6.3.2 DEATH AFTER COMMENCEMENT OF BENEFITS

If a participant dies after payments pursuant to this Section 6 have commenced
hereunder, but prior to receiving all of the scheduled annual payments, the
Company shall pay the remaining annual payments to the Participant's
Beneficiary.

                                       7
<PAGE>

6.4   SMALL ACCOUNT EXCEPTION

Notwithstanding any other provision of the Plan or a Participant's Deferred
Compensation Election Form the Administrator, taking into account the expense
and inconvenience of administering the Plan with respect to small Accounts as
set forth herein, may, in its sole discretion, elect to distribute a
Participant's benefits in a lump sum. This Section 6.4 shall only apply to small
Accounts which shall mean all Accounts attributable to a Participant that have
an aggregate balance of $25,000 or less at the time benefits payable pursuant to
this Section 6 would otherwise commence. In addition, if the installments
payable under this Section 6 would, in the aggregate, be less than $3,000 per
year, the Administrator, in its sole discretion, may shorten the period over
which the installment payments are made. In no event will accelerated payments
of small Accounts be made by the Administrator if doing so would violate Section
409A of the Code and any regulations promulgated thereunder.

6.5   RECIPIENTS OF PAYMENTS; DESIGNATION OF BENEFICIARY

All payments to be made by the Company shall be made to the Participant, if
living. Except as otherwise provided herein, in the event of a Participant's
death prior to the receipt of all benefit payments, all subsequent payments to
be made under the Plan shall be to the Beneficiary of the Participant in
accordance with a Participant's designation of Beneficiary. Unless otherwise
specified in the Participant's Beneficiary designation, in the event a
Beneficiary dies before receiving all payments due to such Beneficiary pursuant
to this Plan, the then remaining payment shall be paid to the legal
representatives of the Beneficiary's estate. The Participant shall designate a
Beneficiary, or during his lifetime change such designation, by filing a written
notice of such designation with the Administrator in such form and subject to
such rules and regulations as the Administrator may prescribe. If the
Participant's Compensation constitutes community property, then any Beneficiary
designation made by the Participant other than a designation of such
Participant's spouse shall not be effective if any such Beneficiary or
beneficiaries are to receive more than fifty percent (50%) of the aggregate
benefits payable hereunder, unless such spouse shall approve such designation in
writing. If no designation shall be in effect at the time when any benefits
payable under this Plan shall become due, the Beneficiary shall be the legal
representatives of the Participant's estate. In the event a benefit is payable
to a minor or person declared incompetent or to a person incapable of handling
the disposition of his property, the Retirement Committee may determine to pay
such benefit to the guardian, legal representative or person having the care or
custody of such minor, incompetent or person. The Retirement Committee may
require proof of incompetence, minority or guardianship as it may deem
appropriate prior to distribution of the benefit. Such distribution shall
completely discharge the Retirement Committee and the Company from all liability
with respect to such benefit.

6.6   FINANCIAL EMERGENCY

In the event of a Participant's unforeseeable emergency, the Retirement
Committee, in its sole and absolute discretion, may alter the timing or manner
of payment of any benefits or deferred amounts to be paid pursuant to the Plan
or release the Participant from the obligation of making deferrals. For purposes
of this section, an unforeseeable emergency shall mean a severe financial
hardship to the Participant resulting from an illness or accident of the
Participant, the Participant's spouse, or a dependent (as defined in Section
152(a) of the Code) of the Participant,

                                       8
<PAGE>

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. Any early payment of benefits or
withdrawal of deferred amounts due to an unforeseeable emergency shall be
limited to the amount necessary to satisfy such emergency plus amounts necessary
to pay taxes reasonably anticipated as a result of the distribution, after
taking into account the extent to which such hardship 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 foregoing standard
for distributions shall be modified so that it is consistent with any
regulations promulgated under Section 409A of the Code. The Retirement
Committee's decision in passing upon severe financial hardship of the
Participant and the manner in which, if at all, the payment or deferral of any
amounts pursuant to the Plan shall be altered or modified shall be final,
conclusive and not subject to appeal. The Participant shall have no right to
make up any amount distributed or transferred as a result of a determination of
financial emergency by the Retirement Committee pursuant to this Section 6.6.

6.7   PRE-TERMINATION BENEFITS

In the event that Participant has made the election(s) provided for in Section
4.5 to receive amounts prior to termination as a Director, such pre-termination
benefits shall be paid in accordance with such election(s). The calculation of
the amount of such pre-termination benefit shall be made in accordance with the
terms and conditions of the Plan, including, without limitation, Section 5
hereof.

SECTION 7. FORFEITURE

In the event of a Participant's suicide during the first two (2) years after the
filing of any Deferred Compensation Election Form the Retirement Committee, in
its sole and absolute discretion, may terminate all or any part of a
Participant's (or Beneficiary's) right to receive any benefits whatsoever
hereunder, provided, however, that the Beneficiary of such a Participant shall
be entitled to receive at least an amount equal to that portion of the
Participant's Account which has in fact been deferred pursuant to the Plan,
without increase, growth addition or any other amount, payable in such manner as
the Retirement Committee, in its sole and absolute discretion shall determine.

In the event a Participant (i) makes any material misstatement of information in
connection with any Deferred Compensation Election Form (ii) fails to disclose
to the Company or its agents any material item of his personal or medical
history (including, but not limited to, habits of drug, chemical or tobacco
use), (iii) takes any other action (or fails to take any action), which action
(or failure to act) results in a loss to the Company under the Plan, then the
Retirement Committee, in its sole and absolute discretion, may terminate all or
any part of a Participant's (or Beneficiary's) right to receive any benefits
whatsoever hereunder.

                                       9
<PAGE>

SECTION 8. NON-TRANSFERABILITY

In no event shall the Company make any payment under the Plan to any assignee or
creditor of a Participant or a Beneficiary. Prior to the time of payment
hereunder, a Participant or Beneficiary shall have no rights by way of
anticipation or otherwise to assign or otherwise dispose of any interest under
the Plan nor shall such rights be assigned or transferred by operation of law.

SECTION 9. ADMINISTRATION

9.1   ADMINISTRATION

This Plan shall be administered by the Retirement Committee and the
Administrator. The Retirement Committee may from time to time establish rules
for the administration of the Plan that are not inconsistent with the provisions
of the Plan.

9.2   FINALITY OF DETERMINATION

Except as otherwise provided herein, any interpretation or determination by the
Retirement Committee as to any disputed questions arising under the Plan,
including questions of fact (or questions of construction and interpretation),
shall be final, binding and conclusive upon all persons, subject only to a
determination otherwise by the Board.

9.3   CLAIMS PROCEDURE

If any Participant, Beneficiary or other properly interested party is in
disagreement with any determination that has been made under the Plan, a claim
may be presented, but only in accordance with the procedures set forth herein.

9.3.1 ORIGINAL CLAIM

Any Participant, Beneficiary or other properly interested party may, if he so
desires, file with the Retirement Committee a written claim for benefits or a
determination under the Plan. Within ninety (90) days after the filing of such a
claim, the Retirement Committee shall notify the claimant in writing whether his
claim is upheld or denied in whole or in part or shall furnish the claimant a
written notice describing specific special circumstances requiring a specified
amount of additional time (but not more than one hundred eighty (180) days from
the date the claim was filed) to reach a decision on the claim. If the claim is
denied in whole or in part, the Retirement Committee shall state in writing:

            (i)   the specific reason or reasons for the denial;

            (ii)  the references to the pertinent provisions of this Plan on
                  which the denial is based;

            (iii) a description of any additional material or information
                  necessary for the claimant to perfect the claim and an
                  explanation of why such material or information is necessary;
                  and

            (iv)  an explanation of the claims review procedure set forth in
                  this section, including a statement of the claimant's right,
                  if any, to bring a civil action under ERISA Section 502(a)
                  following a denial on review.

                                       10
<PAGE>

9.3.2 CLAIM REVIEW PROCEDURE

Within sixty (60) days after receipt of notice that his claim has been denied in
whole or in part, the claimant may file with the Retirement Committee a written
request for a review and may, in conjunction therewith, submit written comments,
documents, records and other information relating to the Claim. The claimant or
his authorized representative, shall be provided, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant to the claimant's claim. For purposes of this section, a
document, record or other information shall be considered "relevant" to a
claimant's claim if such document, record or other information (i) was relied
upon by the Retirement Committee in making its decision on the claim, (ii) was
submitted, considered or generated in the course of the Retirement Committee's
making its decision on the claim, without regard to whether the Retirement
Committee relied upon such document, record or other information in making its
decision, or (iii) complies with administrative processes and safeguards which
are designed to insure and to verify that decisions on claims are made in
accordance with governing Plan documents, whose provisions are applied
consistently with respect to similarly situated claimants. The Retirement
Committee's review of the claimant's claim and of the Retirement Committee's
denial of such claim shall take into account all comments, documents, records,
and other information submitted by the claimant or his authorized representative
relating to the claim, without regard to whether such information was submitted
or considered in the initial decision on the claim. Within sixty (60) days after
the filing of such a request for review, the Retirement Committee shall notify
the claimant in writing whether, upon review, the claim was upheld or denied in
whole or in part or shall furnish the claimant a written notice describing
specific circumstances requiring a specified amount of additional time (but not
more than one hundred twenty (120) days from the date the request for review was
filed) to reach a decision on the request for review. In the case of a decision
on appeal upholding the Retirement Committee's initial denial of the claimant's
claim, such notice shall set forth, in a manner calculated to be understood by
the claimant, the following information:

            (i)   the specific reason or reasons for the decisions on appeal;

            (ii)  references to the pertinent provisions of this Plan on which
                  the decision on appeal is based;

            (iii) a statement that the claimant is entitled to receive, upon
                  request and free of charge, reasonable access to, and copies
                  of, all documents, records and other information relevant to
                  the claimant's claim for benefits; and

            (iv)  a statement of the claimant's right to bring an action under
                  ERISA Section 502(a).

9.3.3 GENERAL RULES

            (i)   No inquiry or question shall be deemed to be a claim or a
                  request for a review of a denied claim unless made in
                  accordance with the foregoing claims procedure. The Retirement
                  Committee may require that any claim for benefits and any
                  request for a review of denied claim be filed on forms to be
                  furnished by the Administrator upon request.

                                       11
<PAGE>

            (ii)  All decisions on claims and on requests for a review of denied
                  claims shall be made by the Retirement Committee. In
                  accordance with Section 9.2 hereof, decisions of the
                  Retirement Committee shall be final, binding and conclusive
                  upon all persons.

            (iii) The Retirement Committee may, in its discretion, hold one or
                  more hearings on a claim or a request for a review of a denied
                  claim.

            (iv)  Claimants may be represented by a lawyer or other
                  representative (at their own expense), but the Retirement
                  Committee reserves the right to require the claimant to
                  furnish written authorization. A claimant's representative
                  shall be entitled to copies of all notices given to the
                  claimant.

            (v)   The decision of the Retirement Committee on a claim and on a
                  request for a review of a denied claim shall be served on the
                  claimant in writing. If a decision or notice is not received
                  by a claimant within the time specified, the claim or request
                  for a review of a denied claim shall be deemed to have been
                  denied.

            (vi)  Prior to filing a claim or a request for a review of a denied
                  claim, the claimant or his representative shall have a
                  reasonable opportunity to review a copy of this Plan and all
                  other pertinent documents in the possession of the Company and
                  the Retirement Committee.

            (vii) The Administrator and the individuals serving on the
                  Retirement Committee shall, except as prohibited by law, be
                  indemnified and held harmless by the employer from any and all
                  liabilities, costs, and expenses (including legal fees), to
                  the extent not covered by liability insurance arising out of
                  any action taken by any individual of this Committee with
                  respect to this plan, unless such liability arises from the
                  individual's own claim for his or her own benefit, the proven
                  gross negligence, bad faith, or (if the individual had
                  reasonable cause to believe his or her conduct was unlawful)
                  the criminal conduct of such individual. This indemnification
                  shall continue as to an individual who has ceased to be a
                  member of the Retirement Committee for the employer and shall
                  enure to the benefit of the heirs, executors and
                  administrators of such an individual.

9.4   EXPENSES

The cost of payment from the Plan and the expense of administering the Plan
shall be borne by the Company.

9.5   TAX WITHHOLDING

The Company shall have the right to deduct from all payments to be made under
the Plan, any federal, state or local taxes or other charges required by law to
be withheld with respect to such payments, as determined in the sole discretion
of the Retirement Committee.

                                       12
<PAGE>

SECTION 10.  AMENDMENT AND TERMINATION

The Board, or the Retirement Committee, in the circumstances provided below, may
at any time amend, modify, terminate or suspend, this Plan and no Participant or
any other person shall have any right, title, interest or claim against the
Company, its directors, officers or employees for any amounts, except that (i)
the Participant shall be fully vested in his Account hereunder as of the date on
which the Plan is terminated or suspended, (ii) no amendment shall eliminate the
crediting of an investment return on an Account prior to the complete
distribution thereof or provide for a distribution method which accelerates the
timing of distributions hereunder without the consent of a Participant and (iii)
subsequent to a Change of Control, unless a majority of the holders of Account
balances agree to the contrary, the Company or the Administrator may not alter
(a) the choice of investments in the Investment Election as in effect
immediately before the Change of Control and (b) the payout options as in effect
immediately before the Change of Control. Any such amendment, modification or
termination of the Plan may occur either (i) without limitation, by resolution
of the Board or (ii) in any respect that does not materially increase the cost
of the Plan to the Company, by action of the Retirement Committee (with the
written concurrence of the Chief Executive Officer). Notwithstanding the
foregoing, if any provision of this Plan or the accompanying election forms does
not comply with the requirements of Section 409A of the Code, or any regulations
or other guidance promulgated thereunder, such that, absent correction, any
Participant would be subject to a 20% penalty under Section 409A(a)(1)(B)(i)(II)
of the Code, the Retirement Committee may amend or modify this Plan or the
election forms in a manner designed to avoid such penalty, without the consent
of any affected Participant, even if such change is otherwise detrimental to any
Participant in the Plan.

SECTION 11. APPLICABLE LAW

The Plan shall be governed and construed in accordance with the laws of the
State of Wisconsin, without regard to its conflict of laws provisions, unless
federal law supersedes Wisconsin law in which event the applicable federal law
shall apply. The invalidity of any portion of the Plan shall not invalidate the
remainder hereof and said remainder shall continue in full force. The captions
and other titles herein are designed for convenience only and are not to be
resorted to for the purposes interpreting any provision of the Plan. The waiver
by the Company of any breach of any provision of the Plan shall not operate or
be construed as a waiver of any subsequent breach by that Participant or any
other Participant.

SECTION 12. BINDING AGREEMENT

The provisions of the Plan shall be binding upon the Participant, his or her
heirs, personal representatives and beneficiaries, and subject to the rights
granted to amend or terminate the Plan, the provisions of the Plan shall also be
binding upon the Company, its successors and assigns.

                                       13
<PAGE>

SECTION 13. NOTICE

Any notice or filing required or permitted to be given to the Company or a
Participant under this Plan shall be sufficient if in writing and
hand-delivered, or sent by registered or certified mail, in the case of the
Company, to the principal office of the Company, directed to the attention of
the Administrator, and in the case of a Participant, to the last known address
of such Participant indicated on the records of the Company. Such notice shall
be deemed given as of the date of delivery or, if delivery is made by mail, as
of the date shown on the postmark on the receipt for registration or
certification.

SECTION 14. ERRORS IN BENEFIT STATEMENT OR DISTRIBUTION

In the event an error is made in a benefit statement, such error shall be
corrected on the next benefit statement following the date such error is
discovered. In the event of an error in a distribution, the Participant's
Account(s) shall, immediately upon discovery of such error, be adjusted to
reflect such under or overpayment and, if possible, the next distribution shall
be increased or decreased to correct such prior error. If the remaining balance
of a Participant's Account(s) is insufficient to cover an erroneous overpayment,
the Company, may, at its discretion, offset any amount payable to the
Participant from the Company (including but not limited to subsequent annual
retainer fees and meeting fees) to recoup the amount of such overpayment.

Adopted by the Board of Directors: November 17, 2004

                                       14

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