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EXHIBIT 10(g)

THE SHERWIN-WILLIAMS COMPANY 2005

DEFERRED COMPENSATION SAVINGS AND PENSION EQUALIZATION PLAN

(AS AMENDED AND RESTATED)

          The Sherwin-Williams Company, an Ohio corporation (the “Company”), established this 2005
Deferred Compensation Savings and Pension Equalization Plan (the “Plan”), effective January 1,
2005, for the purpose of attracting high quality executives and promoting in its key executives
increased efficiency and an interest in the successful operation of the Company. This Plan is
intended to supplement benefits provided under the Company’s qualified plans for a select group of
management or highly compensated employees by accepting contributions which may not be placed in
the qualified plans because of limitations imposed by one or more limitations on contributions or
benefits in the Internal Revenue Code. The terms of the Plan, amended and restated as set forth
herein, apply to amounts that are deferred and vested under the Plan after December 31, 2004 and
that are subject to Section 409A of the Code. Notwithstanding anything to the contrary contained
herein, all amounts that were deferred and vested under the Plan prior to January 1, 2005 and any
additional amounts that are not subject to Section 409A of the Code shall continue to be subject
solely to the terms of the separate Plan in effect on October 3, 2004.

ARTICLE 1

Definitions

	1.1	 	Account shall mean the account or accounts established for a particular Participant
pursuant to Article 3 of the Plan.

	1.2	 	Administration Committee shall have the meaning given to such term under the Qualified
SPP.

	1.3	 	Affiliated Group shall mean the Company and all entities with which the Company would be
considered a single employer under Sections 414(b) and 414(c) of the Code, provided that in
applying Section 1563(a)(1), (2), and (3) of the Code for purposes of determining a controlled
group of corporations under Section 414(b) of the Code, the language “at least 50 percent” is
used instead of “at least 80 percent” each place it appears in Section 1563(a)(1), (2), and
(3) of the Code, and in applying Treasury Regulation § 1.414(c)-2 for purposes of determining
trades or businesses (whether or not incorporated) that are under common control for purposes
of Section 414(c) of the Code, “at least 50 percent” is used instead of “at least 80 percent”
each place it appears in that regulation. Such term shall be interpreted in a manner
consistent with the definition of “service recipient” contained in Section 409A of the Code.

	1.4	 	Base Salary shall mean the Participant’s annual base salary excluding incentive and
discretionary bonuses and other non-regular forms of compensation, determined before
reductions for contributions to or deferrals under any pension, deferred compensation or other
benefit plans sponsored by the Company.

	1.5	 	Beneficiary shall mean the person(s) or entity designated as such in accordance with
Article 10 of the Plan.

	1.6	 	Bonus shall mean amounts paid to the Participant by the Company annually in the form of a
discretionary or incentive compensation or any other bonus designated by the Administration
Committee, determined before reductions for contributions to or deferrals under any pension,
deferred compensation or other benefit plans sponsored by the Company.

	1.7	 	Code shall mean the Internal Revenue Code of 1986, as amended.
	 
	1.8	 	Company shall mean The Sherwin-Williams Company.

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	1.9  	 	Company Match Contributions shall mean contributions credited by the Company to a
Participant’s Account pursuant to Section 2.2 of the Plan.

	1.10	 	Company Makeup Contributions shall mean makeup contributions credited by the Company to a
Participant’s Account pursuant to Section 2.3 of the Plan.

	1.11	 	Crediting Rate shall mean the notional gains and losses credited on the Participant’s
Account balance which are based on the Participant’s choice among the investment alternatives
made available by the Administration Committee pursuant to Article 3 of the Plan.

	1.12	 	Designated Participant shall mean a Participant designated on Exhibit A attached
hereto as eligible to receive benefits pursuant to Section 2.4 of this Plan.

	1.13	 	Disability shall mean the condition whereby a Participant (a) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months; or (b) is, by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under any accident and health
plan covering employees of the Company.

	1.14	 	Eligible Compensation shall mean, with respect to any Plan Year, the portion of a
Participant’s Base Salary and Bonus payable to the Participant during such Plan Year that
exceeds the limit in effect for such Plan Year under Section 401(a)(17) of the Code.

	1.15	 	Eligible Executive shall mean any management employee of the Company, its subsidiaries or
affiliates as may be designated by the Administration Committee to be eligible to participate
in the Plan.
	 
	1.16	 	ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended.

	1.17	 	Financial Hardship shall mean a severe financial hardship resulting from the
Participant’s or the Participant’s dependent’s (as defined in Section 152(a) of the Code)
sudden and unexpected illness or accident, the Participant’s sudden and unexpected property
casualty loss, or other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant, which is not covered by insurance and
may not be relieved by cessation of Plan deferrals or by the liquidation of the Participant’s
assets provided that such liquidation would not cause a severe Financial Hardship, and which
is determined to qualify as a Financial Hardship by the Administration Committee. Cash needs
arising from foreseeable events such as the purchase of a residence or education expenses for
children shall not, alone, be considered a Financial Hardship.

	1.18	 	Participant shall mean an Eligible Executive who has been credited with a Company Match
Contribution, Company Makeup Contribution or other benefit pursuant to Article 2 of the Plan.

	1.19	 	Participant Election Form shall mean the agreement, in a form acceptable to the
Administration Committee, to make an election regarding the time or form of payment of a
Participant’s benefits, submitted by the Participant to the Administration Committee on a
timely basis pursuant to Articles 2 and 4 of the Plan. The Participant Election Form may take
the form of an electronic communication followed by appropriate written confirmation from the
Administration Committee according to specifications established by the Administration
Committee.

	1.20	 	Plan Year shall mean the calendar year.
	 
	1.21	 	Qualified Plans shall mean the Qualified PIP, Qualified SEPIP and the Qualified SPP.

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	1.22	 	Qualified PIP shall mean The Sherwin-Williams Company Salaried Employees’ Revised
Pension Investment Plan, as it may be amended from time to time.

	1.23	 	Qualified SEPIP shall mean The Sherwin-Williams Company Salaried Employees’ Pension
Investment Plan, as it may be amended from time to time.

	1.24	 	Qualified SPP shall mean The Sherwin-Williams Company Employee Stock Purchase and
Savings Plan, as it may be amended from time to time.

	1.25	 	Retirement shall mean Termination of Employment on or after the Retirement Eligibility
Date, other than as a result of the Participant’s death.

1.26   Retirement Eligibility Date shall mean the date on which the Participant attains age
fifty-five (55).

	1.27	 	Settlement Date shall mean the date by which a lump sum payment shall be made or the date
by which installment payments shall commence. The Settlement Date shall be no later than
ninety (90) days following the occurrence of the event triggering the payout; provided,
however, that if the event triggering the payout is the Participant’s Retirement, the
Settlement Date shall be the last day of January of the Plan Year following the year in which
the Participant’s Retirement occurs. Notwithstanding the foregoing, with respect to any
Participant who is a Specified Employee, to the extent required by Section 409A of the Code,
the Settlement Date shall be the first business day which is no less than six (6) months from
the Participant’s Termination of Employment.

	1.28	 	Specified Employee shall mean a Participant who is a “Key Employee” as determined by the
Company pursuant to Section 416 of the Code and Treasury Regulation § 1.409A-1(i).

	1.29	 	Statutory Limitations shall mean any statutory or regulatory limitations imposed by one
or more of Sections 401(a)(17), 401(k), 401(m), 402(g), 403(b), 408(k) or 415 or any other
limitation on contributions or benefits in the Code. The impact of such limits on the
Participant for purposes of this Plan shall be determined by the Administration Committee
based upon reasonable estimates and shall be final and binding as of the date the Company
Makeup Contribution is credited to the Participant’s Account. No subsequent adjustments shall
be made to increase a Company Makeup Contribution under this Plan as a result of any
adjustments ultimately required under the Qualified Plans due to actual employee contributions
or other factors.

	1.30	 	Termination of Employment shall mean the date of the Participant’s separation from
service (within the meaning of Treasury Regulation § 1.409A-1(h)) with the Affiliated Group
for any reason whatsoever, whether voluntary or involuntary, including as a result of the
Participant’s Retirement or death. Upon a sale or other disposition of the assets of the
Company or any other member of the Affiliated Group to an unrelated purchaser, the Company
reserves the right, to the extent permitted by Section 409A of the Code, to determine whether
Participants providing services to the purchaser after and in connection with such transaction
have experienced a Termination of Employment.

	1.31	 	Valuation Date shall mean the date through which earnings are credited and shall, if a
business day, be the date on which the payout or other event triggering the valuation occurs;
or if not a business day, the next succeeding business day.

ARTICLE 2

Participation

	2.1  	 	Elective Deferral. Effective beginning with Plan Year 2010, no Participant may
elect to defer any Base Salary or Bonus under the Plan for such Plan Year or any subsequent
Plan Year. Any Base Salary and Bonus deferred by a Participant for Plan Years prior to 2010
and credited to a Participant’s Retirement Account shall be paid in accordance with the terms of the Plan and
the form of payment (lump sum or installments over a

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specified period of not more than fifteen (15) years)
selected by the Participant on a Participant Election
Form filed prior to January 1, 2009; provided that
such a Participant may change the timing or form of
distribution of the Participant’s Account by filing a
new Participant Election Form at least twelve (12)
months prior to the intended effective date of such
change, and the change in the distribution date must,
to the extent required by Section 409A of the Code,
defer payment for at least an additional five (5)
years after the date that payment would otherwise be
made or commence.
	 
	2.2	 	Company Match Contributions.

	 	(i)	 	The Company shall credit a Company Match Contribution to this Plan on
behalf of each Participant with respect to each Plan Year. The amount of the Company
Match Contribution shall equal the sum of the following:

	 	(a)	 	One hundred percent (100%) of the first three percent (3%) of
the Participant’s Eligible Compensation for the Plan Year; and
	 
	 	(b)	 	Fifty percent (50%) of the next two percent (2%) of the
Participant’s Eligible Compensation for the Plan Year.

	 	(ii)	 	In addition to the Company Match Contribution amount determined in
accordance with Section 2.2(i), the Company may make an additional discretionary
Company Match Contribution on behalf of a Participant with respect to any Plan Year,
provided that the maximum amount of the additional discretionary Company Match
Contribution that the Company may credit to a Participant’s Account under this Section
2.2(ii) for any Plan Year is (a) minus (b), where (a) and (b) are as follows:

	 	(a)	 	One hundred percent (100%) of the first six percent (6%) of
the Participant’s Eligible Compensation for the Plan Year.
	 
	 	(b)	 	The total amount of the Company Match Contribution credited
to the Participant’s Account for the Plan Year pursuant to Section 2.2(i).

	2.3	 	Qualified PIP or Qualified SEPIP Makeup Contribution. The Company shall credit a
Company Makeup Contribution under this Plan to the Account of each Participant for each Plan
Year. The Qualified PIP or Qualified SEPIP Makeup Contribution shall equal the total Company
contributions that would have been made to Qualified PIP or Qualified SEPIP, as applicable, on
behalf of the Participant absent any Statutory Limitations. The Qualified PIP or Qualified
SEPIP Makeup Contribution shall be reduced by the amount of Company contributions actually
credited to the Participant under Qualified PIP or Qualified SEPIP for such Plan Year.
	 
	2.4	 	Crediting of Accrued Benefit. To the extent a Designated Participant accrues a
benefit pursuant to the final average pay formula applicable to certain participants covered
by Appendix B of the Qualified SEPIP, such Designated Participant shall be entitled to a
benefit hereunder equal to the total accrued benefit the Designated Participant would have
been entitled to receive based upon such formula absent any Statutory Limitations, reduced by
the amount of benefits actually payable from the Qualified SEPIP pursuant to the formula
specified in Appendix B thereof.

ARTICLE 3

Accounts

	3.1	 	Participant Accounts. Solely for recordkeeping purposes an Account shall be
maintained for each Participant and shall be credited with the Participant’s Company Match
Contributions and Company Makeup Contributions on or before March 15 of the Plan Year following the Plan Year to which the
Company Match Contributions and Company Makeup Contributions relate, provided that the
Participant is continuously 

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	 	 	employed by the Company, a subsidiary or an affiliate through
the last day of the Plan Year to which the Company Match Contributions and Company Makeup
Contributions relate. In addition, a Participant’s elective deferrals with respect to Plan
Years prior to 2010 shall have been credited to the Participant’s Account at the time such
amounts would otherwise have been paid to the Participant. Accounts shall be deemed to be
credited with notional gains or losses as provided in Section 3.2 from the date amounts are
credited to the Account through the Valuation Date. Amounts credited to a Participant’s
Account shall be fully vested at all times.
	 
	3.2	 	Crediting Rate. The Crediting Rate on amounts in a Participant’s Account shall
be based on the Participant’s choice among the investment alternatives made available from
time to time by the Administration Committee. The Administration Committee shall establish a
procedure by which a Participant may elect to have the Crediting Rate based on one or more
investment alternatives and by which the Participant may change investment elections at least
quarterly. The Administration Committee may provide only one investment option for a
particular class of contributions and may establish a separate subaccount for such
contributions which shall be paid out at the same time and under the same circumstances as the
Participant’s Account. The Participant’s Account balance shall reflect the investments
selected by the Participant. If an investment selected by a Participant sustains a loss, the
Participant’s Account shall be reduced to reflect such loss. The Participant’s choice among
investments shall be solely for purposes of calculation of the Crediting Rate. If the
Participant fails to elect an investment alternative the Crediting Rate shall be based on the
investment alternative selected for this purpose by the Administration Committee. The Company
shall have no obligation 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 of the Company.
During payout, the Participant’s Account shall continue to be credited at the Crediting Rate
selected by the Participant from among the investment alternatives or rates made available by
the Administration Committee for such purpose.

	3.3	 	Statement of Accounts. The Administration Committee shall provide each
Participant with statements at least annually setting forth the Participant’s Account balance
as of the end of each Plan Year.

ARTICLE 4

Benefits

	4.1	 	Retirement Benefits Attributable to Account. In the event of the Participant’s
Retirement, the Participant shall be entitled to receive an amount equal to the total balance
of the Participant’s Account credited with notional earnings as provided in Article 3 through
the Valuation Date. The benefits shall be paid as follows:

	 	(i)	 	For an Eligible Executive who is a Participant in the Plan as of December
31, 2009, in a single lump sum on the Settlement Date following Retirement unless,
prior to January 1, 2009 the Participant made a timely election to have the benefits
paid in substantially level annual installments over a specified period of not more
than fifteen (15) years.

	 	(ii)	 	For an Eligible Executive who becomes a Participant in the Plan on or after
January 1, 2010, in a single lump sum on the Settlement Date following Retirement.

	 	 	Except as otherwise provided herein, payments shall be made or commence on the Settlement
Date following Retirement. Notwithstanding the foregoing, a Participant may elect, at any
time at least twelve (12) months prior to the intended effective date of such change, to
change the time form of payment of benefits to installments over a specified period of not
more than fifteen (15) years, provided that any such change must , to the extent required by
Section 409A of the Code, defer payment, or the commencement of payment, for at least an
additional five (5) years after the date payment would otherwise be made or commence
pursuant to this Section 4.1. If benefits are payable in the form of annual installments pursuant to this
Section 4.1, annual payments will be made commencing on the Settlement Date following
Retirement (or the applicable anniversary thereof) and shall continue on each anniversary
thereof until the number of annual installments 

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	 	 	specified in the Participant’s timely
election has been paid. The amount of each such installment shall be determined by dividing
the Participant’s Account balance, determined as of December 31 of the year last
preceding the installment payment date, by the number of installment payments
remaining, without regard to anticipated earnings.

	4.2	 	Retirement Benefits Attributable to Accrued Benefit. Notwithstanding anything
herein to the contrary, a Designated Participant or his Beneficiary shall receive a
distribution of his accrued benefit credited pursuant to Section 2.4 hereof in the form of a
single life annuity, with annual annuity payments commencing on the Settlement Date following
the later of Termination of Employment or the Participant’s Retirement Eligibility Date.
Notwithstanding the foregoing, a Designated Participant may elect, at any time prior to the
Settlement Date, to receive his accrued benefit credited pursuant to Section 2.4 hereof in the
form of any other actuarially equivalent (within the meaning of Treasury Regulation §
1.409A-2(b)(2)(ii)) form of annuity permitted under the Qualified SEPIP.

	4.3	 	Termination Benefit. Upon Termination of Employment other than by reason of
Retirement or death, the Company shall pay to the Participant a termination benefit equal to
the balance on Termination of Employment of the Participant’s Account credited with notional
earnings as provided in Article 3 through the Valuation Date. The termination benefits shall
be paid in a single lump sum on the Settlement Date following Termination of Employment.

	4.4	 	Cash-Out Limit. Notwithstanding the foregoing, in the event the sum of all
benefits payable to the Participant under the Plan and any other plan or arrangement that is
aggregated with the Plan (or, as applicable, aggregated with a portion of the Plan) pursuant
to Treasury Regulation § 1.409A-1(c) is less than or equal to the applicable dollar amount
then in effect under section 402(g)(1)(B) of the Code, the Company may, in its sole
discretion, elect to pay such benefits in a single lump sum as provided in Treasury Regulation
§ 1.409A-3(j)(4)(v).

ARTICLE 5

Death Benefits

	5.1	 	Death Benefit. In the event of Termination of Employment as a result of the
Participant’s death, the Company shall pay to the Participant’s Beneficiary a death benefit
equal to the total balance of the Participant’s Account as of the date of the Participant’s
death credited with notional earnings as provided in Article 3 through the Valuation Date and
any accrued benefit credited to such Participant pursuant to Section 2.4 hereof. The death
benefit shall be paid in the same form as the Participant’s Retirement benefit would have
been paid under Article 4 and such payment shall be made or commence on the Settlement Date
following the Participant’s death, without regard to any 5-year deferral that may have been
applicable to benefits that would have been paid under Article 4.

	5.2	 	Cash-Out Limit. Notwithstanding the foregoing, in the event the sum of all
benefits payable to a Beneficiary under the Plan and any other plan or arrangement that is
aggregated with the Plan (or, as applicable, aggregated with a portion of the Plan) pursuant
to Treasury Regulation § 1.409A-1(c) is less than or equal to the applicable dollar amount
then in effect under section 402(g)(1)(B) of the Code, the Company may, in its sole
discretion, elect to pay such benefits in a single lump sum as provided in Treasury Regulation
§ 1.409A-3(j)(4)(v).

ARTICLE 6

Disability

In the event of a Participant’s Disability, deferral elections shall cease and the Company shall
pay to the Participant a Disability benefit equal to the balance of the Participant’s Account
credited with notional earnings as provided in

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Article 3 through the Valuation Date and any accrued
benefit credited to such Participant pursuant to Section 2.4 hereof. The Disability benefit shall
be paid in the same form as the Participant’s Retirement benefit would have been paid under Article
4 and such payment shall be made or commence on the Settlement Date following the Participant’s
Disability, without regard to any 5-year deferral that may have been applicable to benefits that
would have been paid under Article 4.

ARTICLE 7

Financial Hardship Distribution

Upon a finding that the Participant (or, after the Participant’s death, a Beneficiary) has suffered
a Financial Hardship, the Administration Committee may in its sole discretion, accelerate
distributions of benefits, in whole or in part, or approve reduction or cessation of current
deferrals under the Plan in the amount reasonably necessary to alleviate such Financial Hardship.
Notwithstanding the foregoing, in no event shall any amounts, or the present value thereof, accrued
pursuant to Section 2.4 hereof, be available for accelerated distribution under this Article 7.

ARTICLE 8

Amendment and Termination of Plan

	8.1	 	Amendment and Termination in General. The Company may, at any time, amend or
terminate the Plan, except that (i) no such amendment or termination may reduce a
Participant’s Account balance or benefit credited under Section 2.4 of the Plan, and (ii) no
such amendment or termination may result in the acceleration of payment of any benefits to any
Participant, Beneficiary or other person, except as may be permitted under Section 409A of the
Code.

	8.2	 	Payment of Benefits Following Termination. In the event that the Plan is
terminated, a Participant’s benefits shall be distributed to the Participant or Beneficiary on
the dates on which the Participant or Beneficiary would otherwise receive benefits hereunder
without regard to the termination of the Plan. Notwithstanding the preceding sentence, and to
the extent permitted under Section 409A of the Code, the Company, by action taken by its Board
of Directors or its designee, may terminate the Plan and accelerate the payment of
Participants’ benefits subject to the following conditions:

	 	(i)	 	Company’s Discretion. The termination does not occur “proximate to
a downturn in the financial health” of the Company (within the meaning of Treasury
Regulation §1.409A-3(j)(4)(ix)), and all other arrangements required to be aggregated
with the Plan (or any portion thereof) under Section 409A of the Code are also
terminated and liquidated. In such event, the entire benefits of all Participants
shall be paid at the time and pursuant to the schedule specified by the Company, so
long as all payments are required to be made no earlier than twelve (12) months, and no
later than twenty-four (24) months, after the date the Board of Directors or its
designee irrevocably approves the termination of the Plan. Notwithstanding the
foregoing, any payment that would otherwise be paid pursuant to the terms of the Plan
prior to the twelve (12) month anniversary of the date that the Board of Directors or
its designee irrevocably approves the termination of the Plan shall continue to be paid
in accordance with the terms of the Plan. If the Plan is terminated pursuant to this
Section 8.2(i), the Company shall be prohibited from adopting a new plan or arrangement
that would be aggregated with this Plan (or any portion thereof) under Section 409A of
the Code within three (3) years following the
date that the Board of Directors or its designee irrevocably approves the termination
and liquidation of the Plan.

	 	(ii)	 	Change of Control. The termination occurs pursuant to an
irrevocable action of the Board of Directors or its designee that is taken within the
thirty (30) days preceding or the twelve (12) months 

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	 	 	 	following a Change of Control (as
defined in Article 11), and all other plans sponsored by the Company (determined
immediately after the Change of Control) that are required to be aggregated with this
Plan under Section 409A of the Code are also terminated with respect to each
participant therein who experienced the Change of Control (each a “Change of Control
Participant”). In such event, the entire benefits of each Participant under the Plan
and each Change in Control Participant under all aggregated plans shall be paid at the
time and pursuant to the schedule specified by the Company, so long as all payments are
required to be made no later than twelve (12) months after the date that the Board of
Directors or its designee irrevocably approves the termination.

	 	(iii)	 	Dissolution; Bankruptcy Court Order. The termination occurs
within twelve (12) months after a corporate dissolution taxed under Section 331 of the
Code, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A).
In such event, the entire benefits of each Participant shall be paid at the time and
pursuant to the schedule specified by the Company, so long as all payments are required
to be made by the latest of: (A) the end of the calendar year in which the Plan
termination occurs, (B) the first calendar year in which the amount is no longer
subject to a substantial risk of forfeiture, or (C) the first calendar year in which
payment is administratively practicable.

	 	(iv)	 	Other Events. The termination occurs upon such other events and
conditions as the Internal Revenue Service may prescribe in generally applicable
guidance published in the Internal Revenue Bulletin.

	 	 	Notwithstanding anything contained in this Section 8.2 to the contrary, in no event may a
payment be accelerated following a Specified Employee’s Termination of Employment to a date
that is prior to the first business day which is no less than six (6) months following the
Specified Employee’s Termination of Employment (or if earlier, upon the Specified Employee’s
death).

	 	 	The provisions of paragraphs (i), (ii), (iii) and (iv) of this Section 8.2 are intended to
comply with the exception to accelerated payments under Treasury Regulation
§1.409A-3(j)(4)(ix) and shall be interpreted and administered accordingly. The term
“Company” as used in paragraphs (i) and (ii) of this Section 8.2 shall include the Company
and any entity which would be considered to be a single employer with the Company under
Sections 414(b) or 414(c) of the Code.

ARTICLE 9

Beneficiaries

	9.1	 	Beneficiary Designation. The Participant shall have the right, at any time, to
designate any person or persons as Beneficiary (both primary and contingent) to whom payment
under the Plan shall be made in the event of the Participant’s death. The Beneficiary
designation shall be effective when it is submitted in writing to and acknowledged by the
Administration Committee during the Participant’s lifetime on a form prescribed by the
Administration Committee.

	9.2	 	Revision of Designation. The submission of a new Beneficiary designation shall
cancel all prior Beneficiary designations. Any finalized divorce or marriage (other than a
common law marriage) of a Participant subsequent to the date of a Beneficiary designation
shall revoke such designation, unless in the case of divorce the previous spouse was not
designated as Beneficiary and unless in the case of marriage the Participant’s new spouse has
previously been designated as Beneficiary.

	9.3	 	Successor Beneficiary. If the primary Beneficiary dies prior to complete
distribution of the benefits provided in Article 5, the remaining Account balance shall be
paid to the contingent Beneficiary elected by the Participant.

	9.4	 	Absence of Valid Designation. If a Participant fails to designate a Beneficiary
as provided above, or if the Beneficiary designation is revoked by marriage, divorce, or
otherwise without execution of a new designation,

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		 	or if every person designated as Beneficiary
predeceases the Participant or dies prior to complete distribution of the Participant’s
benefits, then the Administration Committee shall direct the distribution of such benefits to
the relevant estate.

ARTICLE 10

Administration/Claims Procedures

	10.1	 	Administration. The Plan shall be administered by the Administration Committee,
which shall have the exclusive right and full discretion (i) to interpret the Plan, (ii) to
decide any and all matters arising hereunder (including the right to remedy possible
ambiguities, inconsistencies, or admissions), (iii) to make, amend and rescind such rules as
it deems necessary for the proper administration of the Plan and (iv) to make all other
determinations necessary or advisable for the administration of the Plan, including
determinations regarding eligibility for benefits payable under the Plan. All interpretations
of the Administration Committee with respect to any matter hereunder shall be final,
conclusive and binding on all persons affected thereby. No member of the Administration
Committee shall be liable for any determination, decision, or action made in good faith with
respect to the Plan. The Company will indemnify and hold harmless the members of the
Administration Committee from and against any and all liabilities, costs, and expenses
incurred by such persons as a result of any act, or omission, in connection with the
performance of such persons’ duties, responsibilities, and obligations under the Plan, other
than such liabilities, costs, and expenses as may result from the bad faith, willful
misconduct, or criminal acts of such persons.

	10.2	 	Claims Procedure. Any Participant, former Participant or Beneficiary may file a
written claim with the Administration Committee setting forth the nature of the benefit
claimed, the amount thereof, and the basis for claiming entitlement to such benefit. The
Administration Committee shall determine the validity of the claim and communicate a decision
to the claimant promptly and, in any event, not later than ninety (90) days after the date of
the claim. The claim may be deemed by the claimant to have been denied for purposes of
further review described below in the event a decision is not furnished to the claimant within
such ninety (90) day period. If additional information is necessary to make a determination
on a claim, the claimant shall be advised of the need for such additional information within
forty-five (45) days after the date of the claim. The claimant shall have up to one hundred
and eighty (180) days to supplement the claim information, and the claimant shall be advised
of the decision on the claim within forty-five (45) days after the earlier of the date the
supplemental information is supplied or the end of the one hundred and eighty (180) day
period. Every claim for benefits which is denied shall be denied by written notice setting
forth in a manner calculated to be understood by the claimant (i) the specific reason or
reasons for the denial, (ii) specific reference to any provisions of the Plan (including any
internal rules, guidelines, protocols, criteria, etc.) on which the denial is based, (iii)
description of any additional material or information that is necessary to process the claim,
and (iv) an explanation of the procedure for further reviewing the denial of the claim.

	10.3	 	Review Procedures. Within sixty (60) days after the receipt of a denial on a
claim, a claimant or his/her authorized representative may file a written request for review
of such denial. Such review shall be undertaken by the Administration Committee and shall be
a full and fair review. The claimant shall have the right to review all pertinent documents.
The Administration Committee shall issue a decision not later than sixty (60) days after
receipt of a request for review from a claimant unless special circumstances, such as the need
to hold a hearing, require a longer period of time, in which case a decision shall be rendered
as soon as possible but not later than one hundred and twenty (120) days after receipt of the
claimant’s request for review. The decision on review shall be in writing and shall include
specific reasons for the decision written in a manner calculated
to be understood by the claimant with specific reference to any provisions of the Plan on
which the decision is based.

9

 

ARTICLE 11

Change of Control

In the event of a Change of Control, the amounts to which Participants are entitled under this Plan
shall be immediately distributed in a lump sum cash payment to Participants within ninety (90) days
following the date of such Change of Control; provided, however, that with respect to any
Participant who is a Specified Employee and who Terminated Employment prior to the Change of
Control, to the extent required by Section 409A of the Code, such payment shall be made on the
first business day which is no less than six (6) months from the Participant’s Termination of
Employment. For purposes of this Plan, a Change of Control shall be deemed to occur on the date of
any of the following events:

	(i)	 	Any one person or more than one person acting as a group (within the meaning of the
Treasury Regulation § 1.409A-3(i)(5)(v)(B)) acquires ownership of stock of the Company that,
together with stock held by such person or group, constitutes more than 50% of the total fair
market value or total voting power of the stock of the Company. Notwithstanding the
foregoing, if any one person or group is considered to own more than 50% of the total fair
market value or total voting power of the stock of the Company, the acquisition of additional
stock by the same person or group is not considered to cause a Change of Control.
Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because
any person acquires ownership of more than 50% of the total voting power of the stock of the
Company as a result of the acquisition by the Company of stock of the Company which, by
reducing the number of shares outstanding, increases the percentage of shares beneficially
owned by such person; provided, that if a Change of Control would occur as a result of such an
acquisition by the Company (if not for the operation of this sentence), and after the
Company’s acquisition such person becomes the beneficial owner of additional stock of the
Company that increases the percentage of outstanding shares of stock of the Company owned by
such person, a Change of Control shall then occur.

	(ii)	 	Any one person or more than one person acting as a group (within the meaning of the
Treasury Regulation § 1.409A-3(i)(5)(v)(B)) acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person or group) ownership of
stock of the Company possessing 30% or more of the total voting power of the Company.
Notwithstanding the foregoing, if any one person or group is considered to own 30% or more of
the total voting power of the stock of the Company, the acquisition of additional stock by the
same person or group is not considered to cause a Change of Control. Notwithstanding the
foregoing, a Change of Control shall not be deemed to occur solely because any person acquires
ownership of more than 30% of the total voting power of the stock of the Company as a result
of the acquisition by the Company of stock of the Company which, by reducing the number of
shares outstanding, increases the percentage of shares beneficially owned by such person;
provided, that if a Change of Control would occur as a result of such an acquisition by the
Company (if not for the operation of this sentence), and after the Company’s acquisition such
person becomes the beneficial owner of additional stock of the Company that increases the
percentage of outstanding shares of stock of the Company owned by such person, a Change of
Control shall then occur.

	(iii)	 	A majority of the Company’s Board of Directors is replaced during any 12-month period by
directors whose appointment or election was not endorsed by at least two-thirds (2/3) of the
members of the Board of Directors prior to the date of such appointment or election.

	(iv)	 	Any one person or more than one person acting as a group (within the meaning of the
Treasury Regulation § 1.409A-3(i)(5)(v)(B)) acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition by such person or group) assets that
have a total gross fair market value equal to or more than 50% of the total gross fair market
value of all the assets of the Company immediately before such acquisition or acquisitions.
The gross fair market value of assets shall be determined without regard to liabilities
associated with such assets. Notwithstanding the foregoing, a transfer of assets shall not
result in a Change of Control if such transfer is to (a) a shareholder of the Company (immediately
before the asset transfer) in exchange for or with respect to its stock, (b) an entity 50%
or more of the total value or voting power of which is owned, directly or indirectly, by the
Company, (c) a person or group (within the meaning of the Treasury Regulation §
1.409A-3(i)(5)(v)(B)) that owns, directly or indirectly, 50% or more of the total

10

 

	 	 	value or
voting power of the stock of the Company, or (d) an entity, at least 50% of the total value
or voting power of which is owned, directly or indirectly by a person or group described in
clause (c) of this sentence.

Notwithstanding the foregoing, an acquisition of stock of the Company described in (i) or (ii)
above shall not be deemed to be a Change of Control by virtue of any of the following situations:
(a) an acquisition by the Company; (b) an acquisition by any of the Company’s subsidiaries in which
a majority of the voting power of the equity securities or equity interests of such subsidiary is
owned, directly or indirectly, by the Company; or (c) any employee benefit or stock ownership plan
of the Company or any trustee or fiduciary with respect to such a plan acting in such capacity.

ARTICLE 12

Conditions Related to Benefits

	12.1	 	Nonassignability. No amount payable to a Participant or Beneficiary under the
Plan will be subject in any manner to anticipation, alienation, attachment, garnishment, sale,
transfer, assignment (either at law or in equity), levy, execution, pledge, encumbrance,
charge or any other legal or equitable process by a Participant or Beneficiary, and any
attempt to do so will be void; nor will any benefit be in any manner liable for or subject to
the debts, contracts, liabilities, engagements or torts of the person entitled thereto.
However, (i) the withholding of taxes from Plan benefit payments, or (ii) the direct deposit
of benefit payments to an account in a banking institution (if not actually part of an
arrangement constituting an assignment or alienation) shall not be construed as an assignment
or alienation.

	12.2	 	No Right to Company Assets. The benefits paid under the Plan shall be paid from
the general funds of the Company, and the Participant and any Beneficiary shall be no more
than unsecured general creditors of the Company with no special or prior right to any assets
of the Company for payment of any obligations hereunder and the Plan constitutes a mere
promise by the Company to make benefit payments in the future.

	12.3	 	Protective Provisions. The Participant shall cooperate with the Company by
furnishing any and all information requested by the Administration Committee in order to
facilitate the payment of benefits hereunder, and taking such other actions as may be
requested by the Administration Committee. If the Participant refuses to so cooperate, the
Company shall have no further obligation to the Participant under the Plan.

	12.4	 	Section 16b Eligible Executives. In the event any Eligible Executive subject to
Rule 16b issued under the Securities Exchange Act of 1934 (or any successor rule to the same
effect) has, at any time, a Crediting Rate based upon an investment alternative consisting of
or the value of which is determined based upon the value of the Company’s common stock or any
security into which such common stock may be changed by reason of: (a) any stock dividend,
stock split, combination of shares, recapitalization or other change in the capital structure
of the Company; (b) any merger, consolidation, separation, reorganization or partial or
complete liquidation; or (c) any other corporate transaction or event having an effect similar
to the foregoing,, unless the transaction is otherwise exempt under Rule 16b-3, no transaction
with respect to the portion of the Participant’s Account attributable to such investment
alternative shall be permitted pursuant to this Plan until a date which is not less than six
(6) months and one (1) day from the date on which the investment alternative was selected or
transferred within the Participant’s Account.

	12.5	 	Withholding. The Participant shall make appropriate arrangements with the
Company for satisfaction of any federal, state or local income tax withholding requirements
and Social Security, Medicare or other employee tax requirements applicable to the payment of
benefits under the Plan. If no other arrangements
are made, the Company may provide, at its discretion, for such withholding and tax payments
as may be required, including, without limitation, by the reduction of other amounts payable
to the Participant.

11

 

	12.6	 	Assumptions and Methodology. The Administration Committee shall establish the
actuarial assumptions and method of calculation used in determining the present or future
value of benefits, earnings, payments, fees, expenses or any other amounts required to be
calculated under the terms of the Plan. Such assumptions and methodology shall be outlined in
detail in procedures established by the Administration Committee and made available to
Participants and may be changed from time to time by the Administration Committee.

	12.7	 	Trust. The Company shall be responsible for the payment of all benefits under
the Plan. At its discretion, the Company may establish one or more grantor trusts for the
purpose of providing for payment of benefits under the Plan; provided, however, that no such
trust shall be funded if the funding thereof would result in taxable income to a Participant
(i) due to the assets of such a trust being located or transferred outside of the United
States; (ii) due to the assets of such a trust being restricted to the provision of benefits
under the Plan in connection with a change in the employer’s financial health; (iii) due to
the assets being set aside, reserved or transferred to such a trust during any restricted
period (as defined in Section 409A(b)(3)(B) of the Code); or (iv) as otherwise provided
pursuant to Section 409A(b) of the Code. Such trust or trusts may be irrevocable, but the
assets thereof shall be subject to the claims of the Company’s creditors. Benefits paid to
the Participant from any such trust or trusts shall be considered paid by the Company for
purposes of meeting the obligations of the Company under the Plan. Neither the establishment
of the Plan or trust or any modification thereof, or the creation of any fund or account, or
the payment of any benefits shall be construed as giving to any Participant or other person
any legal or equitable right against the Company or any officer or employee thereof, except as
provided by law or by any Plan provision. The amounts in the Accounts shall remain the sole
property of the Company unless and until required to be distributed in accordance with the
provisions of the Plan, and shall not constitute a trust or be deemed to be held in trust for
the benefit of any Participant or Beneficiary hereunder or their personal representative. The
Company does not in any way guarantee the trust or any Participant’s benefit from loss or
depreciation. In no event shall the Company’s employees, officers, directors or stockholders
be liable to any person on account of any claim arising by reason of the provisions of the
Plan or of any instrument or instruments implementing its provisions, or for the failure of
any Participant, Beneficiary or other person to be entitled to any particular tax consequences
with respect to the Plan, the trust(s) or any contribution thereto or distribution therefrom.

ARTICLE 13

Miscellaneous

	13.1	 	Successors of the Company. The rights and obligations of the Company under the
Plan shall inure to the benefit of, and shall be binding upon, the successors and assigns of
the Company.

	13.2	 	Employment Not Guaranteed. Nothing contained in the Plan nor any action taken
hereunder shall be construed as a contract of employment or as giving any Participant any
right to continued employment with the Company.

	13.3	 	Gender, Singular and Plural. All pronouns and any variations thereof shall be
deemed to refer to the masculine, feminine, or neuter, as the identity of the person or
persons may require. As the context may require, the singular may be read as the plural and
the plural as the singular.

	13.4	 	Captions. The captions of the articles, paragraphs and sections of the Plan are
for convenience only and shall not control or affect the meaning or construction of any of its
provisions.

	13.5	 	Validity. In the event any provision of the Plan is held invalid, void or
unenforceable, the same shall not affect, in any respect whatsoever, the validity of any other
provisions of the Plan.

12

 

	13.6	 	Waiver of Breach. 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.

	13.7	 	Notice. Any notice or filing required or permitted to be given to the Company or
the Participant under this Agreement shall be sufficient if in writing and hand-delivered, or
sent by first class mail, in the case of the Company, to the principal office of the Company,
directed to the attention of the Administration Committee, and in the case of the Participant,
to the last known address of the Participant indicated on the employment 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. Notices to the Company may be permitted by electronic communication according
to specifications established by the Administration Committee.

	13.8	 	Errors in Benefit Statement or Distributions. 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.

	13.9	 	ERISA Plan. The Plan is intended to be an unfunded plan maintained primarily to
provide deferred compensation benefits for a select group of “management or highly compensated
employees” within the meaning of Sections 201, 301 and 401 of ERISA and therefore to be exempt
from Parts 2, 3 and 4 of Title I of ERISA.

	13.10	 	Applicable Law. In the event any provision of, or legal issue relating to, this
Plan is not fully preempted by ERISA, such issue or provision shall be governed by the laws of
the State of Ohio.

	13.11	 	Effect of Legislative or Regulatory Changes. Notwithstanding anything in this
Plan to the contrary, in the event of the enactment of any legislation or regulations which,
in the sole discretion of the Company, have an unfavorable impact on the Company and/or
Participants, the Company shall have the unilateral right to amend the Plan in whatever manner
it deems appropriate to mitigate the effects of such legislation or regulations, without the
necessity of obtaining further Board approval.

	13.12	 	Section 409A of the Code.

	 	(i)	 	In General. It is intended that the Plan comply with the provisions of
Section 409A of the Code, so as to prevent the inclusion in gross income of any amounts
deferred hereunder in a taxable year that is prior to the taxable year or years in
which such amounts would otherwise actually be paid or made available to Participants
or Beneficiaries. The Plan shall be construed, administered and governed in a manner
that effects such intent.

	 	(ii)	 	Discretionary Acceleration of Payments. To the extent permitted
by Section 409A of the Code, the Administration Committee may, in its sole discretion,
accelerate the time or schedule of a payment under the Plan as provided in this
Section. The provisions of this Section are intended to comply with the exception to
accelerated payments under Treasury Regulation §1.409A-3(j) and shall be interpreted
and administered accordingly.

	 	(a)	 	Domestic Relations Orders. The Administration Committee
may, in its sole discretion, accelerate the time or schedule of a payment under
the Plan to an individual other than the Participant as may be necessary to
fulfill a domestic relations order (as defined in Section 414(p)(1)(B) of the
Code).

	 	(b)	 	Conflicts of Interest. The Administration Committee may, in
its sole discretion, provide for the acceleration of the time or schedule of a
payment under the Plan to the extent necessary for any federal officer or employee in the executive branch to comply with an
ethics agreement with the federal government. Additionally, the
Administration Committee may, in its sole discretion, provide for the
acceleration of the time or schedule of a payment under

13

 

	 	 	 	the Plan the to the
extent reasonably necessary to avoid the violation of an applicable federal,
state, local, or foreign ethics law or conflicts of interest law (including
where such payment is reasonably necessary to permit the Participant to
participate in activities in the normal course of his or her position in which
the Participant would otherwise not be able to participate under an applicable
rule).

	 	(c)	 	Employment Taxes. The Administration Committee may, in its
sole discretion, provide for the acceleration of the time or schedule of a
payment under the Plan to pay the Federal Insurance Contributions Act (FICA) tax
imposed under Sections 3101, 3121(a), and 3121(v)(2) of the Code, or the
Railroad Retirement Act (RRTA) tax imposed under Sections 3201, 3211,
3231(e)(1), and 3231(e)(8) of the Code, where applicable, on compensation
deferred under the Plan (the FICA or RRTA amount). Additionally, the
Administration Committee may, in its sole discretion, provide for the
acceleration of the time or schedule of a payment, to pay the income tax at
source on wages imposed under Section 3401 of the Code or the corresponding
withholding provisions of applicable state, local, or foreign tax laws as a
result of the payment of the FICA or RRTA amount, and to pay the additional
income tax at source on wages attributable to the pyramiding Code Section 3401
wages and taxes. However, the total payment under this acceleration provision
must not exceed the aggregate of the FICA or RRTA amount, and the income tax
withholding related to such FICA or RRTA amount.

	 	(d)	 	Cash-Out Limit. The Administration Committee may, in its
sole discretion, provide for the acceleration of the time or schedule of a
payment under the Plan as provided in Sections 4.4 and 5.2 hereof.

	 	(e)	 	Payment Upon Income Inclusion Under Section 409A. The
Administration Committee may, in its sole discretion, provide for the
acceleration of the time or schedule of a payment under the Plan at any time the
Plan fails to meet the requirements of Section 409A of the Code. The payment may
not exceed the amount required to be included in income as a result of the
failure to comply with the requirements of Section 409A of the Code.

	 	(f)	 	Certain Payments to Avoid a Nonallocation Year under Section
409(p). The Administration Committee may, in its sole discretion, provide for
the acceleration of the time or schedule of a payment under the Plan to prevent
the occurrence of a nonallocation year (within the meaning of Section 409(p)(3)
of the Code) in the plan year of an employee stock ownership plan next following
the plan year in which such payment is made, provided that the amount paid may
not exceed 125 percent of the minimum amount of payment necessary to avoid the
occurrence of a nonallocation year.

	 	(g)	 	Payment of State, Local, or Foreign Taxes. The
Administration Committee may, in its sole discretion, provide for the
acceleration of the time or schedule of a payment under the Plan to reflect
payment of state, local, or foreign tax obligations arising from participation
in the Plan that apply to an amount deferred under the Plan before the amount is
paid or made available to the participant (the state, local, or foreign tax
amount). Such payment may not exceed the amount of such taxes due as a result of
participation in the Plan. The payment may be made in the form of withholding
pursuant to provisions of applicable state, local, or foreign law or by payment
directly to the participant. Additionally, the Administration Committee may, in
its sole discretion, provide for the acceleration of the time or schedule of a
payment under the Plan to pay the income tax at source on wages imposed under
Section 3401 of the Code as a result of such payment and to pay the additional
income tax at source on wages imposed under Section 3401 of the Code
attributable to such additional wages and taxes. However, the total payment under this acceleration provision must not exceed the

14

 

	 	 	 	aggregate
of the state, local, and foreign tax amount, and the income tax withholding
related to such state, local, and foreign tax amount.

	 	(h)	 	Certain Offsets. The Administration Committee may, in its
sole discretion, provide for the acceleration of the time or schedule of a
payment under the Plan as satisfaction of a debt of the Participant to the
Company (or any entity which would be considered to be a single employer with
the Company under Sections 414(b) or 414(c) of the Code), where such debt is
incurred in the ordinary course of the service relationship between the Company
(or any entity which would be considered to be a single employer with the
Company under Sections 414(b) or 414(c) of the Code) and the Participant, the
entire amount of reduction in any of the taxable years of the Company (or any
entity which would be considered to be a single employer with the Company under
Sections 414(b) or 414(c) of the Code) does not exceed $5,000, and the reduction
is made at the same time and in the same amount as the debt otherwise would have
been due and collected from the Participant.

	 	(i)	 	Bona Fide Disputes as to a Right to a Payment. The
Administration Committee may, in its sole discretion, provide for the
acceleration of the time or schedule of a payment under the Plan where such
payment occurs as part of a settlement between the Participant and the Company
(or any entity which would be considered to be a single employer with the
Company under Sections 414(b) or 414(c) of the Code) of an arm’s length, bona
fide dispute as to the Participant’s right to the deferred amount.

	 	(j)	 	Plan Terminations and Liquidations. The Administration
Committee may, in its sole discretion, provide for the acceleration of the time
or schedule of a payment under the Plan as provided in Section 8.2 hereof.

	 	(k)	 	Other Events and Conditions. A payment may be accelerated
upon such other events and conditions as the Internal Revenue Service may
prescribe in generally applicable guidance published in the Internal Revenue
Bulletin.

	 	 	 	Notwithstanding anything contained in this Section 13.12(ii) to the contrary, in no
event may a payment be accelerated under Sections 13.12(ii)(d), (e), (f), (g), (h),
(i) or (j) following a Specified Employee’s Termination of Employment to a date that
is prior to the first business day which is no less than six (6) months following the
Specified Employee’s Termination of Employment (or if earlier, upon the Specified
Employee’s death). Except as otherwise specifically provided in this Plan, including
but not limited to Section 4.4, Section 5.2, Article 6, Article 7, Section 8.2 and
this Section 13.12(ii) hereof, the Administration Committee may not accelerate the
time or schedule of any payment or amount scheduled to be paid under the Plan within
the meaning of Section 409A of the Code.

	 	(iii)	 	Delay of Payments. To the extent permitted under Section 409A of
the Code, the Administration Committee may, in its sole discretion, delay payment under
any of the following circumstances, provided that the Administration Committee treats
all payments to similarly situated Participants on a reasonably consistent basis:

	 	(a)	 	Federal Securities Laws or Other Applicable Law. A payment
may be delayed where the Administration Committee reasonably anticipates that
the making of the payment will violate federal securities laws or other
applicable law; provided that the delayed payment is made at the earliest date
at which the Administration Committee reasonably anticipates that the making of
the payment will not cause such violation. For purposes of the preceding
sentence, the making of a payment that would cause inclusion in gross income or
the application of any penalty provision or other provision of the Code is not
treated as a violation of applicable law.

15

 

	 	(b)	 	Payments Subject to Section 162(m) of the Code. A payment
may be delayed to the extent that the Administration Committee reasonably
anticipates that if the payment were made as scheduled, the Company’s deduction
with respect to such payment would not be permitted due to the application of
Section 162(m) of the Code. If a payment is delayed pursuant to this Section
13.12(iii)(b), then the payment must be made either (i) during the Company’s
first taxable year in which the Administration Committee reasonably anticipates,
or should reasonably anticipate, that if the payment is made during such year,
the deduction of such payment will not be barred by application of Section
162(m) of the Code, or (ii) during the period beginning with the first business
day that is at least six (6) months following the Participant’s Termination of
Employment (the “six-month date”) and ending on the later of (x) the last day
of the taxable year of the Company in which the Participant’s six-month date
occurs or (y) the 15th day of the third month following the six-month date.
Where any scheduled payment to a specific Participant in the Company’s taxable
year is delayed in accordance with this paragraph, all scheduled payments to
that Participant that could be delayed in accordance with this paragraph must
also be delayed. The Administration Committee may not provide the Participant
an election with respect to the timing of the payment under this Section
13.12(iii)(b). For purposes of this Section 13.12(iii)(b), the term Company
includes any entity which would be considered to be a single employer with the
Company under Section 414(b) or Section 414(c) of the Code.

	 	(c)	 	Other Events and Conditions. A payment may be delayed upon
such other events and conditions as the Internal Revenue Service may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin.

              IN WITNESS WHEREOF, the Company has caused this Plan to be amended and restated this 31st day
of December, 2010.

	 	 	 	 	 
	 	THE SHERWIN-WILLIAMS COMPANY

 	 
	 	By  	/s/
 	 
	 	 	Louis E. Stellato, Senior Vice President, 	 
	 	 	General Counsel and Secretary 	 

16

 

	 	 	 	 	 

EXHIBIT A

DESIGNATED PARTICIPANTS

ELIGIBLE TO RECEIVE BENEFITS UNDER SECTION 2.4

	•	 	Tom Coy

	•	 	Tom Seitz

17exv10wbb

EXHIBIT 10(bb)

THE SHERWIN-WILLIAMS COMPANY

2006 EQUITY AND PERFORMANCE INCENTIVE PLAN

(AMENDED AND RESTATED AS OF APRIL 21, 2010)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	1.
	 	Purpose	 	 	1
	2.

	 	Definitions
	 	 	1
	3.

	 	Shares Subject to this Plan
	 	 	7
	4.

	 	Option Rights
	 	 	9
	5.

	 	Appreciation Rights
	 	 	10
	6.

	 	Restricted Stock
	 	 	11
	7.

	 	Restricted Stock Units
	 	 	13
	8.

	 	Performance Shares and Performance Units
	 	 	14
	9.

	 	Other Awards
	 	 	15
	10.

	 	Administration of this Plan
	 	 	16
	11.

	 	Adjustments
	 	 	16
	12.

	 	Change of Control
	 	 	17
	13.

	 	Recapture Provisions
	 	 	21
	14.

	 	Non U.S. Participants
	 	 	21
	15.

	 	Transferability
	 	 	22
	16.

	 	Withholding Taxes
	 	 	22
	17.

	 	Compliance with Section 409A of the Code
	 	 	23
	18.

	 	Additional Restrictions with Respect to Qualified Performance-Based Awards
	 	 	24
	19.

	 	Effective Date
	 	 	25
	20.

	 	Amendments
	 	 	25
	21.

	 	Termination
	 	 	26
	22.

	 	Governing Law
	 	 	26
	23.

	 	Miscellaneous Provisions
	 	 	26

-i-

 

THE SHERWIN-WILLIAMS COMPANY

2006 Equity and Performance Incentive Plan

(Amended and Restated as of April 21, 2010)

	1.	 	Purpose. The purpose of this 2006 Equity and Performance Incentive Plan (Amended and
Restated as of April 21, 2010) is to attract and retain officers and other employees of The
Sherwin-Williams Company and its Subsidiaries and to provide to such persons incentives and
rewards for performance.
	 
	2.	 	Definitions. As used in this Plan,

	 	(a)	 	“Appreciation Right” means a right granted pursuant to Section 5 of this Plan, and
will include both Free-Standing Appreciation Rights and Tandem Appreciation Rights.
	 
	 	(b)	 	“Assumed” has the meaning provided in Section 12 of this Plan.
	 
	 	(c)	 	“Base Price” means the price to be used as the basis for determining the Spread
upon the exercise of a Free-Standing Appreciation Right or a Tandem Appreciation Right.
	 
	 	(d)	 	“Board” means the Board of Directors of the Company and, to the extent of any
delegation by the Board to a committee (or subcommittee thereof) pursuant to Section 10
of this Plan, such committee (or subcommittee).
	 
	 	(e)	 	“Cause” has the meaning provided in Section 12 of this Plan.
	 
	 	(f)	 	“Change of Control” means, except as may be otherwise prescribed by the Board in
any Evidence of Award, the occurrence of any of the following events:

	 	(i)	 	any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act) (a “Person”) is or becomes the beneficial owner
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or
more of the combined voting power of the then-outstanding Voting Stock of Company;
provided, however, that:

	 	(A)	 	for purposes of this Section 2(f)(i), the following
acquisitions will not constitute a Change in Control: (1) any acquisition of
Voting Stock directly from Company that is approved by a majority of the
Incumbent Directors, (2) any acquisition of Voting Stock by Company or any
Subsidiary, (3) any acquisition of Voting Stock by the trustee or other
fiduciary holding securities under any employee benefit plan (or related
trust) sponsored or maintained by Company or any Subsidiary, and (4) any
acquisition of Voting Stock by any Person pursuant to a Business Transaction
that complies with clauses (A), (B) and (C) of Section 2(f)(iii) below;

 

 

	 	(B)	 	if any Person is or becomes the beneficial owner of 30% or
more of combined voting power of the then-outstanding Voting Stock as a
result of a transaction described in clause (1) of Section 2(f)(i)(A) above
and such Person thereafter becomes the beneficial owner of any additional
 shares of Voting Stock representing 1% or more of the then-outstanding Voting
Stock, other than in an acquisition directly from Company that is approved by
a majority of the Incumbent Directors or other than as a result of a stock
dividend, stock split or similar transaction effected by Company in which all
holders of Voting Stock are treated equally, such subsequent acquisition
shall be treated as a Change in Control; or
	 
	 	(C)	 	a Change in Control will not be deemed to have occurred if
a Person is or becomes the beneficial owner of 30% or more of the Voting
Stock as a result of a reduction in the number of shares of Voting Stock
outstanding pursuant to a transaction or series of transactions that is
approved by a majority of the Incumbent Directors unless and until such
Person thereafter becomes the beneficial owner of any additional shares of
Voting Stock representing 1% or more of the then-outstanding Voting Stock,
other than as a result of a stock dividend, stock split or similar
transaction effected by Company in which all holders of Voting Stock are
treated equally; and
	 
	 	(D)	 	if at least a majority of the Incumbent Directors determine
in good faith that a Person has acquired beneficial ownership of 30% or more
of the Voting Stock inadvertently, and such Person divests as promptly as
practicable but no later than the date, if any, set by the Incumbent Board a
sufficient number of shares so that such Person beneficially owns less than
30% of the Voting Stock, then no Change in Control shall have occurred as a
result of such Person’s acquisition; or

	 	(ii)	 	a majority of the Board ceases to be comprised of Incumbent Directors;
or
	 
	 	(iii)	 	the consummation of a reorganization, merger or consolidation, or sale
or other disposition of all or substantially all of the assets of Company or the
acquisition of the stock or assets of another corporation, or other transaction
(each, a “Business Transaction”), unless, in each case, immediately following such
Business Transaction (A) the Voting Stock outstanding immediately prior to such
Business Transaction continues to represent (either by remaining outstanding or by
being converted into voting stock of the surviving entity or any parent thereof),
more than 50% of the combined voting power of the then outstanding shares of voting
stock of the entity resulting from such Business Transaction (including, without
limitation, an entity which as a result of such transaction owns Company or all or
substantially all of Company’s assets either directly or through one or more
subsidiaries), (B) no Person (other than Company, such entity resulting from such
Business Transaction, or any employee benefit plan (or related trust) sponsored or
maintained by Company, any Subsidiary or such entity resulting from such Business
Transaction) beneficially owns, directly or indirectly, 30% or more of the combined
voting

 - 2 - 

 

	 	 	 	power of the then outstanding shares of voting stock of the entity resulting from
such Business Transaction, and (C) at least a majority of the members of the board
of directors of the entity resulting from such Business Transaction were Incumbent
Directors at the time of the execution of the initial agreement or of the action
of the Board providing for such Business Transaction; or
	 
	 	(iv)	 	approval by the shareholders of Company of a complete liquidation or
dissolution of Company, except pursuant to a Business Transaction that complies
with clauses (A), (B) and (C) of Section 2(f)(iii).
	 
	 	(v)	 	For purposes of this Section 2(f), the term “Incumbent Directors” shall
mean, during any period of two consecutive years, individuals who at the beginning
of such period constituted the Board and any new director (other than a director
initially elected or nominated as a director as a result of an actual or threatened
election contest with respect to directors or any other actual or threatened
solicitation of proxies by or on behalf of such director) whose election by the
Board or nomination for election by the Company’s shareholders was approved by a
vote of at least two-thirds (2/3) of the directors then still in office who either
were directors at the beginning of the period or whose election or nomination for
election was previously so approved.

	 	(g)	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 
	 	(h)	 	“Common Stock” means Common Stock, par value $1.00 each, of the Company or any
security into which such shares of Common Stock may be changed by reason of any
transaction or event of the type referred to in Section 11 of this Plan.
	 
	 	(i)	 	“Company” means The Sherwin-Williams Company, an Ohio corporation, and its
successors.
	 
	 	(j)	 	“Covered Employee” means a Participant who is, or is determined by the Board to be
likely to become, a “covered employee” within the meaning of Section 162(m) of the Code
(or any successor provision).
	 
	 	(k)	 	“Date of Grant” means the date specified by the Board on which a grant of Option
Rights, Appreciation Rights, Performance Shares, Performance Units or Other Awards, or a
grant or sale of Restricted Stock, Restricted Stock Units or Other Awards, will become
effective (which date will not be earlier than the date on which the Board takes action
with respect thereto).
	 
	 	(l)	 	“Director” means a member of the Board of Directors of the Company.
	 
	 	(m)	 	“Effective Date” means the date immediately following the date that this Plan is
approved by the shareholders of the Company.
	 
	 	(n)	 	“Evidence of Award” means an agreement, certificate, resolution or other type or
form of writing or other evidence approved by the Board that sets forth the terms and
conditions of Option Rights, Appreciation Rights, Performance Shares, Performance

 - 3 - 

 

	 	 	 	Units or Other Awards granted, or a grant or sale of Restricted Stock, Restricted Stock
Units or Other Awards. An Evidence of Award may be in an electronic medium, may be
limited to notation on the books and records of the Company and, unless otherwise
determined by the Board, need not be signed by a representative of the Company or a
Participant.
	 
	 	(o)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations thereunder, as such law, rules and regulations may be amended from time
to time.
	 
	 	(p)	 	“Free-Standing Appreciation Right” means an Appreciation Right granted pursuant to
Section 5 of this Plan that is not granted in tandem with an Option Right.
	 
	 	(q)	 	“Good Reason” has the meaning provided in Section 12 of this Plan.
	 
	 	(r)	 	“Incentive Stock Options” means Option Rights that are intended to qualify as
“incentive stock options” under Section 422 of the Code or any successor provision.
	 
	 	(s)	 	“Management Objectives” means the measurable performance objective or objectives
established pursuant to this Plan for Participants who have received grants of
Performance Shares or Performance Units or, when so determined by the Board, Option
Rights, Appreciation Rights, Restricted Stock, Restricted Stock Units, Other Awards or
dividend credits pursuant to this Plan. Management Objectives may be described in terms
of Company-wide objectives or objectives that are related to the performance of the
individual Participant or of the Subsidiary, division, department, region or function
within the Company or Subsidiary in which the Participant is employed. The Management
Objectives may be made relative to the performance of one or more other companies or
subsidiaries, divisions, departments, regions or functions within such other companies,
and may be made relative to an index or one or more of the performance criteria
themselves. The Board may grant awards subject to Management Objectives that are either
Qualified Performance-Based Awards or are not Qualified Performance-Based Awards. The
Management Objectives applicable to any Qualified Performance-Based Award to a Covered
Employee will be based on one or more, or a combination, of the following criteria:

	 	(i)	 	Appreciation in value of shares;
	 
	 	(ii)	 	Total shareholder return;
	 
	 	(iii)	 	Earnings per share;
	 
	 	(iv)	 	Operating income;
	 
	 	(v)	 	Net income;
	 
	 	(vi)	 	Pretax earnings;
	 
	 	(vii)	 	Earnings before interest, taxes, depreciation and amortization;

 - 4 - 

 

	 	(viii)	 	Pro forma net income;
	 
	 	(ix)	 	Return on equity;
	 
	 	(x)	 	Return on designated assets;
	 
	 	(xi)	 	Return on capital;
	 
	 	(xii)	 	Economic value added;
	 
	 	(xiii)	 	Revenues;
	 
	 	(xiv)	 	Expenses;
	 
	 	(xv)	 	Operating profit margin;
	 
	 	(xvi)	 	Operating cash flow;
	 
	 	(xvii)	 	Free cash flow;
	 
	 	(xviii)	 	Cash flow return on investment;
	 
	 	(xix)	 	Operating margin or net profit margin; or
	 
	 	(xx)	 	Any of the above criteria as compared to the performance of a published
or a special index deemed applicable by the Board, including, but not limited to,
the Standard & Poor’s 500 Stock Index.

	 	 	 	If the Board determines that a change in the business, operations, corporate structure
or capital structure of the Company, or the manner in which it conducts its business, or
other events or circumstances render the Management Objectives unsuitable, the Board may
in its discretion modify such Management Objectives or the related level or levels of
achievement, in whole or in part, as the Board deems appropriate and equitable, except
in the case of a Qualified Performance-Based Award (other than in connection with a
Change of Control) where such action would result in the loss of the otherwise available
exemption of the award under Section 162(m) of the Code. In such case, the Board will
not make any modification of the Management Objectives or the level or levels of
achievement with respect to such Covered Employee.
	 
	 	(t)	 	“Market Value Per Share” means, as of any particular date, the average of the
highest and lowest reported sales prices of the Common Stock during normal trading hours
on the New York Stock Exchange Composite Tape or, if not listed on such exchange, on any
other national securities exchange on which the Common Stock is listed. If there is no
regular public trading market for such Common Stock, the Market Value Per Share of the
Common Stock shall be determined by the Board. The Board is authorized to adopt another
fair market value pricing method, provided such method is stated in the Evidence of
Award, and is in compliance with the fair market value pricing rules set forth in Section
409A of the Code.

 - 5 - 

 

	 	(u)	 	“Optionee” means the optionee named in an Evidence of Award evidencing an
outstanding Option Right.
	 
	 	(v)	 	“Option Price” means the purchase price payable on exercise of an Option Right.
	 
	 	(w)	 	“Option Right” means the right to purchase shares of Common Stock upon exercise of
an option granted pursuant to Section 4 of this Plan.
	 
	 	(x)	 	“Other Award” means an award granted pursuant to Section 9 of this Plan.
	 
	 	(y)	 	“Participant” means a person who is selected by the Board to receive benefits under
this Plan and who is at the time an officer or other employee of the Company or any one
or more of its Subsidiaries, or who has agreed to commence serving in any of such
capacities within 90 days of the Date of Grant. The term “Participant” shall also
include any person who provides services to the Company or a Subsidiary that are
substantially equivalent to those typically provided by an employee.
	 
	 	(z)	 	“Performance Period” means, in respect of a Performance Share or Performance Unit,
a period of time established pursuant to Section 8 of this Plan within which the
Management Objectives relating to such Performance Share or Performance Unit are to be
achieved.
	 
	 	(aa)	 	“Performance Share” means a bookkeeping entry that records the equivalent of one
share of Common Stock awarded pursuant to Section 8 of this Plan.
	 
	 	(bb)	 	“Performance Unit” means a bookkeeping entry awarded pursuant to Section 8 of this
Plan that records a unit equivalent to $1.00 or such other value as is determined by the
Board.
	 
	 	(cc)	 	“Plan” means The Sherwin-Williams Company 2006 Equity and Performance Incentive
Plan (Amended and Restated as of April 21, 2010), as may be further amended from time to
time.
	 
	 	(dd)	 	“Post-CIC Period” has the meaning provided in Section 12 of this Plan.
	 
	 	(ee)	 	“Qualified Performance-Based Award” means any award of Performance Shares,
Performance Units, Restricted Stock, Restricted Stock Units or Other Awards, or portion
of such award, to a Covered Employee that is intended to satisfy the requirements for
“qualified performance-based compensation” under Section 162(m) of the Code.
	 
	 	(ff)	 	“Restricted Stock” means shares of Common Stock granted or sold pursuant to Section
6 of this Plan as to which neither the substantial risk of forfeiture nor the prohibition
on transfer has expired.
	 
	 	(gg)	 	“Restriction Period” means the period of time during which Restricted Stock Units
are subject to restrictions, as provided in Section 7 of this Plan.

 - 6 - 

 

	 	(hh)	 	“Restricted Stock Unit” means an award made pursuant to Section 7 of this Plan of
the right to receive shares of Common Stock or cash at the end of a specified period.
	 
	 	(ii)	 	“Spread” means the excess of the Market Value Per Share on the date when an
Appreciation Right is exercised over the Option Price or Base Price provided for in the
related Option Right or Free-Standing Appreciation Right, respectively.
	 
	 	(jj)	 	“Subsidiary” means a corporation, company or other entity (i) at least 50 percent
of whose outstanding shares or securities (representing the right to vote for the
election of directors or other managing authority) are, or (ii) which does not have
outstanding shares or securities (as may be the case in a partnership, joint venture or
unincorporated association), but at least 50 percent of whose ownership interest
representing the right generally to make decisions for such other entity is, now or
hereafter, owned or controlled, directly or indirectly, by the Company except that for
purposes of determining whether any person may be a Participant for purposes of any grant
of Incentive Stock Options, “Subsidiary” means any corporation in which at the time the
Company owns or controls, directly or indirectly, at least 50 percent of the total
combined voting power represented by all classes of stock issued by such corporation.
	 
	 	(kk)	 	“Tandem Appreciation Right” means an Appreciation Right granted pursuant to Section
5 of this Plan that is granted in tandem with an Option Right.

	3.	 	Shares Subject to this Plan.

	 	(a)	 	Maximum Shares Available Under Plan.

	 	(i)	 	Subject to adjustment as provided in Section 11 of this Plan, the
number of shares of Common Stock that may be issued or transferred (A) upon the
exercise of Option Rights or Appreciation Rights; (B) as Restricted Stock and
released from substantial risks of forfeiture thereof; (C) in payment of Restricted
Stock Units; (D) in payment of Performance Shares or Performance Units that have
been earned; (E) as Other Awards or in payment of Other Awards, or (F) in payment
of dividend equivalents paid with respect to awards made under this Plan will not
exceed in the aggregate 19,200,000 shares of Common Stock (10,000,000 of which were
approved by shareholders in 2006 and 9,200,000 of which will be added upon approval
by shareholders in 2010), plus any shares of Common Stock relating to awards that
expire or are forfeited or are cancelled under this Plan. Such shares may be
shares of original issuance or treasury shares or a combination of the foregoing.
	 
	 	(ii)	 	Each share of Common Stock issued or transferred pursuant to an award
of Option Rights or Appreciation Rights will reduce the aggregate plan limit
described above in Section 3(a)(i) by one share of Common Stock. Each share of
Common Stock issued or transferred (and in the case of Restricted Shares, released
from all substantial risk of forfeiture) pursuant to an award other than Option
Rights or Appreciation Rights shall reduce the aggregate plan limit described above
in Section 3(a)(i) by (A) one share of Common Stock if issued

 - 7 - 

 

	 	 	 	or transferred pursuant to an award granted prior to the Effective Date and (B) 2
shares of Common Stock if issued or transferred pursuant to an award granted on or
after the Effective Date. Any shares of Common Stock that again become available
for issuance pursuant to this Section 3 shall be added back to the aggregate plan
limit in the same manner such shares were originally deducted from the aggregate
plan limit pursuant to this Section 3(a)(ii).
	 
	 	(iii)	 	Shares of Common Stock covered by an award granted under this Plan
shall not be counted as used unless and until they are actually issued and
delivered to a Participant and, therefore, the total number of shares available
under this Plan as of a given date shall not be reduced by any shares relating to
prior awards that have expired or have been forfeited or cancelled. Upon payment
in cash of the benefit provided by any award granted under this Plan, any shares of
Common Stock that were covered by that award will be available for issue or
transfer hereunder. Notwithstanding anything to the contrary contained herein: (A)
if shares of Common Stock are tendered or otherwise used in payment of the Option
Price of a Option Right, the total number of shares covered by the Option Right
being exercised shall count against the aggregate plan limit described above; (B)
shares of Common Stock withheld by the Company to satisfy the tax withholding
obligation shall count against the aggregate plan limit described above; (C) the
number of shares of Common Stock that are repurchased by the Company with Option
Right proceeds shall not increase the aggregate plan limit described above; and (D)
the number of shares of Common Stock covered by an Appreciation Right, to the
extent that it is exercised and settled in shares of Common Stock, whether or not
all shares of Common Stock covered by the award are actually issued to the
Participant upon exercise of the Appreciation Right, shall be considered issued or
transferred pursuant to this Plan. If, under this Plan, a Participant has elected
to give up the right to receive compensation in exchange for shares of Common Stock
based on fair market value, such shares of Common Stock shall not count against the
aggregate plan limit described above.

	 	(b)	 	Incentive Stock Option Limit. Notwithstanding anything in this Section 3,
or elsewhere in this Plan, to the contrary and subject to adjustment pursuant to Section
11 of this Plan, the aggregate number of shares of Common Stock actually issued or
transferred by the Company upon the exercise of Incentive Stock Options shall not exceed
19,200,000.
	 
	 	(c)	 	Individual Participant Limits. Notwithstanding anything in this Section 3,
or elsewhere in this Plan, to the contrary and subject to adjustment pursuant to Section
11 of this Plan:

	 	(i)	 	No Participant shall be granted Option Rights or Appreciation Rights,
in the aggregate, for more than 500,000 shares of Common Stock during any calendar
year.
	 
	 	(ii)	 	No Participant will be granted Qualified Performance-Based Awards of
Restricted Stock, Restricted Stock Units or Performance Shares or in the form

 - 8 - 

 

	 	 	 	of Other Awards payable in Common Stock, in the aggregate, for more than 200,000
shares of Common Stock during any calendar year.
	 
	 	(iii)	 	No Participant will receive in any calendar year a Qualified
Performance-Based Award of Performance Units having an aggregate maximum value as
of their respective Dates of Grant in excess of $5,000,000.
	 
	 	(iv)	 	No Participant will receive in any calendar year a Qualified
Performance-Based Award in the form of Other Awards payable in cash under Section
9(b) having an aggregate maximum value in excess of $5,000,000.
	 
	 	(v)	 	Exclusion from Certain Restrictions. Notwithstanding anything
in this Plan to the contrary, up to 5% of the maximum number of shares of Common
Stock provided for in Section 3(a)(i) above may be used for awards granted under
Sections 6 through 9 of this Plan that do not comply with the three-year
requirements set forth in Sections 6(c), 7(c) and 9(d) of this Plan and the
one-year requirements of Sections 6(e), 7(a), 8(b) and 9(d) of this Plan.

	4.	 	Option Rights. The Board may, from time to time and upon such terms and conditions as it may
determine, authorize the granting to Participants of options to purchase shares of Common
Stock. Each such grant will be subject to all of the requirements contained in the following
provisions:

	 	(a)	 	Each grant will specify the number of shares of Common Stock to which it pertains
subject to the limitations set forth in Section 3 of this Plan.
	 
	 	(b)	 	Each grant will specify an Option Price per share, which may not be less than the
Market Value Per Share on the Date of Grant.
	 
	 	(c)	 	Each grant will specify whether the Option Price will be payable (i) in cash or by
check acceptable to the Company or by wire transfer of immediately available funds, (ii)
by the actual or constructive transfer to the Company of shares of Common Stock owned by
the Optionee having a value at the time of exercise equal to the total Option Price,
(iii) by a combination of such methods of payment, or (iv) by such other methods as may
be approved by the Board.
	 
	 	(d)	 	To the extent permitted by law, any grant may provide for deferred payment of the
Option Price from the proceeds of sale through a bank or broker on a date satisfactory to
the Company of some or all of the shares to which such exercise relates.
	 
	 	(e)	 	Successive grants may be made to the same Participant whether or not any Option
Rights previously granted to such Participant remain unexercised.
	 
	 	(f)	 	Each grant will specify the period or periods of continuous service by the Optionee
with the Company or any Subsidiary that is necessary before the Option Rights or
installments thereof will become exercisable. A grant of Option Rights may provide for
the earlier exercise of such Option Rights in the event of the retirement, death or
disability of the Participant or a Change of Control.

 - 9 - 

 

	 	(g)	 	Any grant of Option Rights may specify Management Objectives that must be achieved
as a condition to the exercise of such rights. The grant of such Option Rights will
specify that, before the exercise of such rights, the Board must determine that the
Management Objectives have been satisfied.
	 
	 	(h)	 	Option Rights granted under this Plan may be (i) options, including, without
limitation, Incentive Stock Options, that are intended to qualify under particular
provisions of the Code, (ii) options that are not intended so to qualify, or (iii)
combinations of the foregoing. Incentive Stock Options may only be granted to
Participants who meet the definition of “employees” under Section 3401(c) of the Code.
	 
	 	(i)	 	The exercise of an Option Right will result in the cancellation on a share-
for-share basis of any Tandem Appreciation Right authorized under Section 5 of this Plan.
	 
	 	(j)	 	No Option Right will be exercisable more than 10 years from the Date of Grant.
	 
	 	(k)	 	Each grant of Option Rights will be evidenced by an Evidence of Award. Each
Evidence of Award shall be subject to this Plan and shall contain such terms and
provisions, consistent with this Plan, as the Board may approve.

	5.	 	Appreciation Rights.

	 	(a)	 	The Board may also, from time to time and upon such terms and conditions as it may
determine, authorize the granting (i) to any Optionee, of Tandem Appreciation Rights in
respect of Option Rights granted hereunder, and (ii) to any Participant, of Free-Standing
Appreciation Rights. A Tandem Appreciation Right will be a right of the Optionee,
exercisable by surrender of the related Option Right, to receive from the Company an
amount determined by the Board, which will be expressed as a percentage of the Spread
(not exceeding 100 percent) at the time of exercise. Tandem Appreciation Rights may be
granted at any time prior to the exercise or termination of the related Option Rights;
provided, however, that a Tandem Appreciation Right awarded in relation to an Incentive
Stock Option must be granted concurrently with such Incentive Stock Option. A
Free-Standing Appreciation Right will be a right of the Participant to receive from the
Company an amount determined by the Board, which will be expressed as a percentage of the
Spread (not exceeding 100 percent) at the time of exercise.
	 
	 	(b)	 	Each grant of Appreciation Rights may utilize any or all of the authorizations, and
will be subject to all of the requirements, contained in the following provisions:

	 	(i)	 	Any grant may specify that the amount payable on exercise of an
Appreciation Right may be paid by the Company in cash, in shares of Common Stock or
in any combination thereof and may either grant to the Participant or retain in the
Board the right to elect among those alternatives.
	 
	 	(ii)	 	Any grant may specify that the amount payable on exercise of an
Appreciation Right may not exceed a maximum specified by the Board at the Date of
Grant.

 - 10 - 

 

	 	(iii)	 	Any grant may specify waiting periods before exercise and permissible
exercise dates or periods.
	 
	 	(iv)	 	Any grant may specify that such Appreciation Right may be exercised
only in the event of, or earlier in the event of, the retirement, death or
disability of the Participant or a Change of Control.
	 
	 	(v)	 	Any grant of Appreciation Rights may specify Management Objectives that
must be achieved as a condition of the exercise of such Appreciation Rights. The
grant of such Appreciation Rights will specify that, before the exercise of such
Appreciation Rights, the Board must determine that the Management Objectives have
been satisfied.
	 
	 	(vi)	 	Each grant of Appreciation Rights will be evidenced by an Evidence of
Award, which Evidence of Award will describe such Appreciation Rights, identify the
related Option Rights (if applicable), and contain such other terms and provisions,
consistent with this Plan, as the Board may approve.

	 	(c)	 	Any grant of Tandem Appreciation Rights will provide that such Tandem Appreciation
Rights may be exercised only at a time when the related Option Right is also exercisable
and at a time when the Spread is positive, and by surrender of the related Option Right
for cancellation. Successive grants of Tandem Appreciation Rights may be made to the
same Participant regardless of whether any Tandem Appreciation Rights previously granted
to the Participant remain unexercised.
	 
	 	(d)	 	Regarding Free-Standing Appreciation Rights only:

	 	(i)	 	Each grant will specify in respect of each Free-Standing Appreciation
Right a Base Price, which may not be less than the Market Value Per Share on the
Date of Grant;
	 
	 	(ii)	 	Successive grants may be made to the same Participant regardless of
whether any Free-Standing Appreciation Rights previously granted to the Participant
remain unexercised; and
	 
	 	(iii)	 	No Free-Standing Appreciation Right granted under this Plan may be
exercised more than 10 years from the Date of Grant.

	6.	 	Restricted Stock. The Board may also, from time to time and upon such terms and conditions
as it may determine, authorize the grant or sale of Restricted Stock to Participants. Each
such grant or sale may utilize any or all of the authorizations, and will be subject to all of
the requirements, contained in the following provisions:

	 	(a)	 	Each such grant or sale will constitute an immediate transfer of the ownership of
shares of Common Stock to the Participant in consideration of the performance of
services, entitling such Participant to voting, dividend and other ownership rights, but
subject to the substantial risk of forfeiture and restrictions on transfer hereinafter
referred to.

 - 11 - 

 

	 	(b)	 	Each such grant or sale may be made without additional consideration or in
consideration of a payment by such Participant that is less than the Market Value Per
Share at the Date of Grant.
	 
	 	(c)	 	Each such grant or sale will provide that the Restricted Stock covered by such
grant or sale that vests upon the passage of time will be subject to a “substantial risk
of forfeiture” within the meaning of Section 83 of the Code for a period to be determined
by the Board at the Date of Grant or upon achievement of Management Objectives referred
to in Section 6(e) below. If the elimination of restrictions is based only on the
passage of time rather than the achievement of Management Objectives, the period of time
will be no shorter than three years, except that the restrictions may be removed no
sooner than ratably on an annual basis during the three-year period as determined by the
Board at the Date of Grant.
	 
	 	(d)	 	Each such grant or sale will provide that during or after the period for which such
substantial risk of forfeiture is to continue, the transferability of the Restricted
Stock will be prohibited or restricted in the manner and to the extent prescribed by the
Board at the Date of Grant (which restrictions may include, without limitation, rights of
repurchase or first refusal in the Company or provisions subjecting the Restricted Stock
to a continuing substantial risk of forfeiture in the hands of any transferee).
	 
	 	(e)	 	Any grant of Restricted Stock may specify Management Objectives that, if achieved,
will result in termination or early termination of the restrictions applicable to such
Restricted Stock; provided, however, that restrictions relating to Restricted Stock that
vests upon the achievement of Management Objectives may not terminate sooner than one
year from the Date of Grant. Each grant may specify in respect of such Management
Objectives a minimum acceptable level of achievement and may set forth a formula for
determining the number of shares of Restricted Stock on which restrictions will terminate
if performance is at or above the minimum level, but falls short of full achievement of
the specified Management Objectives. The grant of Restricted Stock will specify that,
before the termination or early termination of the restrictions applicable to such
Restricted Stock, the Board must determine that the Management Objectives have been
satisfied.
	 
	 	(f)	 	Notwithstanding anything to the contrary contained in this Plan, any grant or sale
of Restricted Stock may provide for the earlier lapse of the substantial risk of
forfeiture for such Restricted Stock in the event of the retirement, death or disability
of the Participant or a Change of Control.
	 
	 	(g)	 	Any such grant or sale of Restricted Stock may require that any or all dividends or
other distributions paid thereon during the period of such restrictions be automatically
deferred and reinvested in additional shares of Restricted Stock, which may be subject to
the same restrictions as the underlying award; provided, however, that dividends or other
distributions on Restricted Stock subject to restrictions that lapse as a result of the
achievement of Management Objectives shall be deferred until and paid contingent upon the
achievement of the applicable Management Objectives.

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	 	(h)	 	Each grant or sale of Restricted Stock will be evidenced by an Evidence of Award
and will contain such terms and provisions, consistent with this Plan, as the Board may
approve. Unless otherwise directed by the Board, (i) all certificates representing
 shares of Restricted Stock will be held in custody by the Company until all restrictions
thereon will have lapsed, together with a stock power or powers executed by the
Participant in whose name such certificates are registered, endorsed in blank and
covering such Shares, or (ii) all shares of Restricted Stock shall be held at the
Company’s transfer agent in book entry form with appropriate restrictions relating to the
transfer of such shares of Restricted Stock.

	7.	 	Restricted Stock Units. The Board may also, from time to time and upon such terms and
conditions as it may determine, authorize the granting or sale of Restricted Stock Units to
Participants. Each such grant or sale may utilize any or all of the authorizations, and will
be subject to all of the requirements, contained in the following provisions:

	 	(a)	 	Each such grant or sale will constitute the agreement by the Company to deliver
 shares of Common Stock or cash to the Participant in the future in consideration of the
performance of services, but subject to the fulfillment of such conditions (which may
include the achievement of Management Objectives) during the Restriction Period as the
Board may specify. If a grant of Restricted Stock Units specifies that the Restriction
Period will terminate upon the achievement of Management Objectives, such Restriction
Period may not terminate sooner than one year from the Date of Grant. Each grant may
specify in respect of such Management Objectives a minimum acceptable level of
achievement and may set forth a formula for determining the number of shares of
Restricted Stock Units on which restrictions will terminate if performance is at or above
the minimum level, but falls short of full achievement of the specified Management
Objectives. The grant of such Restricted Stock Units will specify that, before the
termination or early termination of the restrictions applicable to such Restricted Stock
Units, the Board must determine that the Management Objectives have been satisfied.
	 
	 	(b)	 	Each such grant or sale may be made without additional consideration or in
consideration of a payment by such Participant that is less than the Market Value Per
Share at the Date of Grant.
	 
	 	(c)	 	If the Restriction Period lapses only by the passage of time rather than the
achievement of Management Objectives, each such grant or sale will be subject to a
Restriction Period of not less than three years, except that a grant or sale may provide
that the Restriction Period shall expire not sooner than ratably on an annual basis
during the three-year period as determined by the Board at the Date of Grant.
	 
	 	(d)	 	Notwithstanding anything to the contrary contained in this Plan, any grant or sale
of Restricted Stock Units may provide for the earlier lapse or other modification of the
Restriction Period in the event of the retirement, death or disability of the Participant
or a Change of Control.
	 
	 	(e)	 	During the Restriction Period, the Participant will have no right to transfer any
rights under his or her award and will have no rights of ownership in the shares of
Common

 - 13 - 

 

	 	 	 	Stock deliverable upon payment of the Restricted Stock Units and shall have no right to
vote them, but the Board may at the Date of Grant, authorize the payment of dividend
equivalents on such Restricted Stock Units on either a current, deferred or contingent
basis, either in cash or in additional shares of Common Stock; provided, however, that
dividend equivalents on Restricted Stock Units subject to a Restriction Period that
lapses as a result of the achievement of Management Objectives shall be deferred until
and paid contingent upon the achievement of the applicable Management Objectives.
	 
	 	(f)	 	Each grant or sale will specify the time and manner of payment of Restricted Stock
Units that have been earned. Any grant or sale may specify that the amount payable with
respect thereto may be paid by the Company in cash, in shares of Common Stock or in any
combination thereof and may either grant to the Participant or retain in the Board the
right to elect among those alternatives.
	 
	 	(g)	 	Each grant or sale of Restricted Stock Units will be evidenced by an Evidence of
Award and will contain such terms and provisions, consistent with this Plan, as the Board
may approve.

	8.	 	Performance Shares and Performance Units. The Board may also, from time to time and upon
such terms and conditions as it may determine, authorize the granting of Performance Shares
and Performance Units that will become payable to a Participant upon achievement of specified
Management Objectives during the Performance Period. Each such grant may utilize any or all
of the authorizations, and will be subject to all of the requirements, contained in the
following provisions:

	 	(a)	 	Each grant will specify the number of Performance Shares or Performance Units to
which it pertains, which number may be subject to adjustment to reflect changes in
compensation or other factors; provided, however, that no such adjustment will be made in
the case of a Qualified Performance-Based Award (other than in connection with the death
or disability of the Participant or a Change of Control) where such action would result
in the loss of the otherwise available exemption of the award under Section 162(m) of the
Code.
	 
	 	(b)	 	The Performance Period with respect to each Performance Share or Performance Unit
will be such period of time (not less than one year), commencing with the Date of Grant
as will be determined by the Board at the time of grant which may be subject to earlier
lapse or other modification in the event of the retirement, death or disability of the
Participant or a Change of Control.
	 
	 	(c)	 	Any grant of Performance Shares or Performance Units will specify Management
Objectives which, if achieved, will result in payment or early payment of the award, and
each grant may specify in respect of such specified Management Objectives a minimum
acceptable level or levels of achievement and will set forth a formula for determining
the number of Performance Shares or Performance Units that will be earned if performance
is at or above the level(s), but falls short of full achievement of the specified
Management Objectives. The grant of Performance Shares or Performance Units will specify
that, before the Performance Shares or Performance

 - 14 - 

 

	 	 	 	Units will be earned and paid, the Board must determine that the Management Objectives
have been satisfied.
	 
	 	(d)	 	Each grant will specify the time and manner of payment of Performance Shares or
Performance Units that have been earned. Any grant may specify that the amount payable
with respect thereto may be paid by the Company in cash, in shares of Common Stock or in
any combination thereof and may either grant to the Participant or retain in the Board
the right to elect among those alternatives.
	 
	 	(e)	 	Any grant of Performance Shares may specify that the amount payable with respect
thereto may not exceed a maximum specified by the Board at the Date of Grant. Any grant
of Performance Units may specify that the amount payable or the number of shares of
Common Stock issued with respect thereto may not exceed maximums specified by the Board
at the Date of Grant.
	 
	 	(f)	 	The Board may at the Date of Grant of Performance Shares, provide for the payment
of dividend equivalents to the holder thereof, either in cash or in additional shares of
Common Stock, on a deferred basis contingent upon the achievement of the applicable
Management Objectives.
	 
	 	(g)	 	Each grant of Performance Shares or Performance Units will be evidenced by an
Evidence of Award and will contain such other terms and provisions, consistent with this
Plan, as the Board may approve.

	9.	 	Other Awards.

	 	(a)	 	The Board may, subject to limitations under applicable law, grant to any
Participant such other awards that may be denominated or payable in, valued in whole or
in part by reference to, or otherwise based on, or related to, shares of Common Stock or
factors that may influence the value of such shares, including, without limitation,
convertible or exchangeable debt securities, other rights convertible or exchangeable
into shares of Common Stock, purchase rights for shares of Common Stock, awards with
value and payment contingent upon performance of the Company or specified Subsidiaries,
affiliates or other business units thereof or any other factors designated by the Board,
and awards valued by reference to the book value of shares of Common Stock or the value
of securities of, or the performance of specified Subsidiaries or affiliates or other
business units of the Company. The Board shall determine the terms and conditions of
such awards. Shares of Common Stock delivered pursuant to an award in the nature of a
purchase right granted under this Section 9 shall be purchased for such consideration,
paid for at such time, by such methods, and in such forms, including, without limitation,
cash, shares of Common Stock, other awards, notes or other property, as the Board shall
determine.
	 
	 	(b)	 	Cash awards, as an element of or supplement to any other award granted under this
Plan, may also be granted pursuant to this Section 9 of this Plan.
	 
	 	(c)	 	The Board may grant shares of Common Stock as a bonus, or may grant other awards in
lieu of obligations of the Company or a Subsidiary to pay cash or deliver other

 - 15 - 

 

	 	 	 	property under this Plan or under other plans or compensatory arrangements, subject to
such terms as shall be determined by the Board in a manner that complies with Section
409A of the Code.
	 
	 	(d)	 	If the earning or vesting of, or elimination of restrictions applicable to, Other
Awards is based only on the passage of time rather than the achievement of Management
Objectives, the period of time shall be no shorter than three years, except that the
restrictions may be removed no sooner than ratably on an annual basis during the
three-year period as determined by the Board at the Date of Grant. If the earning or
vesting of, or elimination of restrictions applicable to, Other Awards is based on the
achievement of Management Objectives, the earning, vesting or restriction period may not
terminate sooner than one year from the Date of Grant.

	10.	 	Administration of this Plan.

	 	(a)	 	This Plan will be administered by the Board, which may from time to time delegate
all or any part of its authority under this Plan to the Compensation and Management
Development Committee or any other committee of the Board (or a subcommittee thereof), as
constituted from time to time. To the extent of any such delegation, references in this
Plan to the Board will be deemed to be references to such committee or subcommittee.
	 
	 	(b)	 	The interpretation and construction by the Board of any provision of this Plan or
of any agreement, notification or document evidencing the grant of Option Rights,
Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares,
Performance Units or Other Awards and any determination by the Board pursuant to any
provision of this Plan or of any such agreement, notification or document will be final
and conclusive.
	 
	 	(c)	 	To the extent permitted by Ohio law, the Board may, from time to time, delegate to
one or more officers of the Company the authority of the Board to grant and determine the
terms and conditions of awards granted under this Plan. In no event shall any such
delegation of authority be permitted with respect to awards to any executive officer or
any person subject to Section 162(m) of the Code or who is an officer, director or more
than 10% beneficial owner of any class of the Company’s equity securities that is
registered pursuant to Section 12 of the Exchange Act, as determined by the Board in
accordance with Section 16 of the Exchange Act.

	11.	 	Adjustments. The Board shall make or provide for such adjustments in the numbers of shares
of Common Stock covered by outstanding Option Rights, Appreciation Rights, Restricted Stock
Units, Performance Shares, Performance Units and, if applicable, in the number of shares of
Common Stock covered by outstanding Other Awards granted hereunder, in the Option Price and
Base Price provided in outstanding Appreciation Rights, and in the kind of shares covered
thereby, as the Board, in its sole discretion, may determine is equitably required to prevent
dilution or enlargement of the rights of Participants or Optionees that otherwise would result
from (a) any stock dividend, stock split, combination of shares, recapitalization or other
change in the capital structure of the Company, or (b) any merger, consolidation, spin-off,
split- off, spin-out, split-up, reorganization, partial or

 - 16 - 

 

	 	 	complete liquidation or other distribution of assets, issuance of rights or warrants to
purchase securities, or (c) any other corporate transaction or event having an effect similar
to any of the foregoing. Moreover, in the event of any such transaction or event, the Board,
in its discretion, may provide in substitution for any or all outstanding awards under this
Plan such alternative consideration (including cash), if any, as it may determine to be
equitable in the circumstances and may require in connection therewith the surrender of all
awards so replaced in a manner that complies with Section 409A of the Code. In addition, for
each Option Right or Appreciation Right with an Option Price or Base Price greater than the
consideration offered in connection with any such transaction or event or change of control,
the Board may in its sole discretion elect to cancel such Option Right or Appreciation Right
without any payment to the person holding such Option Right or Appreciation Right. The Board
shall also make or provide for such adjustments in the numbers of shares specified in Section
3 of this Plan as the Board in its sole discretion may determine is appropriate to reflect any
transaction or event described in this Section 11; provided, however, that any such adjustment
to the number specified in Section 3(b)(i) will be made only if and to the extent that such
adjustment would not cause any option intended to qualify as an Incentive Stock Option to fail
to so qualify.
	 
	12.	 	Change of Control. Notwithstanding anything to the contrary in this Plan, the following
provisions shall apply in connection with a Change of Control:

	 	(a)	 	Awards Assumed by Successor

	 	(i)	 	Upon the occurrence of a Change of Control, any awards made under this
Plan that are Assumed (as defined in Section 12(a)(v) below) by the entity
effecting the Change of Control shall continue to vest and become exercisable in
accordance with the terms of the original grant unless, during the three-year
period commencing on the date of the Change of Control (“Post-CIC Period”):

	 	(A)	 	the Participant is involuntarily terminated for reasons
other than for Cause (as defined in Section 12(a)(iii) below); or
	 
	 	(B)	 	the Participant terminates his or her employment for Good
Reason (as defined in Section 12(a)(iv) below).

	 	(ii)	 	If a Participant’s employment is terminated as described in Section
12(a)(i) above, any outstanding Option Rights and Appreciation Rights shall become
fully vested and exercisable, any restrictions that apply to awards made pursuant
to this Plan shall lapse, and awards made pursuant to this Plan that are subject to
Management Objectives shall immediately be earned or vest and shall become
immediately payable in accordance with their terms as if 100% of the Management
Objectives have been achieved, on the date of termination; provided, that any
Participant who terminates his or her employment for Good Reason must:

	 	(A)	 	provide the Company with a written notice of his her or her
intent to terminate employment for Good Reason within 60 days after the

 - 17 - 

 

	 	 	 	Participant becomes aware of the circumstances giving rise to Good Reason;
and
	 
	 	(B)	 	allow the Company thirty days to remedy such circumstances
to the extent curable.

	 	(iii)	 	Solely for purposes of this Section 12(a), “Cause” shall mean that the
Participant shall have:

	 	(A)	 	been convicted of a criminal violation involving, in each
case, fraud, embezzlement or theft in connection with Participant’s duties or
in the course of Participant’s employment with Company or any subsidiary;
	 
	 	(B)	 	committed intentional wrongful damage to property of
Company or any Subsidiary; or
	 
	 	(C)	 	committed intentional wrongful disclosure of secret
processes or confidential information of Company or any Subsidiary;

	 	 	 	and any such act shall have been demonstrably and materially harmful to Company.
For purposes of this Plan, no act or failure to act on the part of Participant
will be deemed “intentional” if it was due primarily to an error in judgment or
negligence, but will be deemed “intentional” only if done or omitted to be done by
Participant not in good faith and without reasonable belief that Participant’s
action or omission was in the best interest of Company.
	 
	 	(iv)	 	Solely for purposes of this Section 12(a), “Good Reason” shall mean the
occurrence, during the Post-CIC Period, of any of the following events without the
Participant’s written consent:

	 	(A)	 	failure to elect or reelect or otherwise to maintain
Participant in the office or the position, or a substantially equivalent or
better office or position, of or with Company and/or a Subsidiary (or any
successor thereto by operation of law or otherwise), as the case may be,
which Participant held immediately prior to a Change in Control, or the
removal of Participant as a Director of Company and/or a Subsidiary (or any
successor thereto) if Participant shall have been a Director of Company
and/or a Subsidiary immediately prior to the Change in Control;
	 
	 	(B)	 	failure of Company to remedy any of the following within 10
calendar days after receipt by Company of written notice thereof from
Participant: 1) a significant adverse change in the nature or scope of the
authorities, powers, functions, responsibilities or duties attached to the
position with Company and any Subsidiary which Participant held immediately
prior to the Change in Control, 2) a reduction in Participant’s Base Pay
received from Company and any Subsidiary; 3) a reduction in Participant’s
Incentive Pay opportunity as compared with the Incentive Pay opportunity most
recently paid prior to the Change in Control, or 4) the termination or

 - 18 - 

 

	 	 	 	denial of Participant’s rights to Employee Benefits or a reduction in the
scope or value thereof;
	 
	 	(C)	 	the liquidation, dissolution, merger, consolidation or
reorganization of Company or the transfer of all or substantially all of its
business and/or assets, unless the successor (by liquidation, merger,
consolidation, reorganization, transfer or otherwise) to which all or
substantially all of its business and/or assets have been transferred (by
operation of law or otherwise) assumed all duties and obligation of Company
under; or
	 
	 	(D)	 	Company requires Participant to have Participant’s
principal location of work changed to any location that is in excess of 30
miles from the location thereof immediately prior to the Change in Control,
or requires Participant to travel away from Participant’s office in the
course of discharging Participant’s responsibilities or duties hereunder at
least 20% more (in terms of aggregate days in any calendar year or in any
calendar quarter when annualized for purposes of comparison to any prior
year) than was required of Participant in any of the three full years
immediately prior to the Change in Control.
	 
	 	(E)	 	Definitions. As used in this Section 12(a),

	 	1)	 	“Base Pay” means Participant’s annual base
salary rate as in effect from time to time.
	 
	 	2)	 	“Incentive Pay” means an annual bonus,
incentive or other payment of compensation, in addition to Base Pay,
made or to be made in regard to services rendered in any year pursuant
to any bonus, incentive, profit-sharing, performance, discretionary pay
or similar agreement, policy, plan, program or arrangement (whether or
not funded) of Company or a Subsidiary, or any successor thereto.
“Incentive Pay” does not include any stock option, stock appreciation,
stock purchase, restricted stock, private equity, long-term incentive
or similar plan, program, arrangement or grant, whether or not provided
under a plan, program or arrangement described in the preceding
sentence.
	 
	 	3)	 	“Employee Benefits” means the perquisites,
benefits and service credit for benefits as provided under any and all
employee retirement income and welfare benefit policies, plans,
programs or arrangements in which Participant is entitled to
participate, including without limitation any stock option, performance
share, performance unit, stock purchase, stock appreciation, savings,
pension, supplemental executive retirement, or other retirement income
or welfare benefit, deferred compensation, incentive compensation,
group or other life, health, medical/hospital or other insurance
(whether funded by actual insurance or self-insured by Company or a
Subsidiary), disability, salary continuation, expense reimbursement and
other employee

 - 19 - 

 

	 	 	 	benefit policies, plans, programs or arrangements that may now exist or
any equivalent successor policies, plans, programs or arrangements that
may be adopted hereafter by Company or a Subsidiary, providing benefits
and service credit for benefits at least as great in the aggregate as
are payable thereunder immediately prior to a Change in Control.

	 	(iv)	 	For purposes of this Section 12(a), an award shall be considered
assumed (“Assumed”) if each of the following conditions are met:

	 	(A)	 	Option Rights, Appreciation Rights and Other Awards (to the
extent such Other Awards are payable in cash and not subject to Management
Objectives) are converted into replacement awards in a manner that complies
with Section 409A of the Code;
	 
	 	(B)	 	Restricted Stock Unit and Restricted Stock awards that are
not subject to Management Objectives are converted into replacement awards
covering a number of shares of the entity effecting the Change of Control (or
a successor or parent corporation), as determined in a manner substantially
similar to the treatment of an equal number of shares of Common Stock covered
by the awards; provided, that to the extent that any portion of the
consideration received by holders of shares of Common Stock in the Change
Control transaction is not in the form of the common stock of such entity (or
a successor or parent corporation), the number of shares covered by the
replacement awards shall be based on the average of the high and low selling
prices of the common stock of such entity (or a successor or parent
corporation) on the established stock exchange on the trading day immediately
preceding the date of the Change of Control;
	 
	 	(C)	 	Performance Shares, Performance Units and all other awards
subject to Management Objectives are converted into replacement awards that
preserve the value of such awards at the time of the Change of Control;
	 
	 	(D)	 	the replacement awards contain provisions for scheduled
vesting and treatment on termination of employment (including the definition
of Cause and Good Reason) that are no less favorable to the Participant than
the underlying awards being replaced, and all other terms of the replacement
awards (other than the security and number of shares represented by the
replacement awards) are substantially similar to, or more favorable to the
Participant than, the terms of the underlying awards; and
	 
	 	(E)	 	the security represented by the replacement awards, if any,
is of a class that is publicly held and widely traded on an established stock
exchange.

	 	(b)	 	Awards Not Assumed by Successor

	 	(i)	 	Upon the occurrence of a Change of Control, any awards made under this
Plan that are not Assumed by the entity effecting the Change of Control shall

 - 20 - 

 

	 	 	 	become fully vested and exercisable on the date of the Change of Control or shall
immediately vest and become immediately payable in accordance with their terms as
if 100% of the applicable Management Objectives have been achieved, and any
restrictions that apply to such awards shall lapse.
	 
	 	(ii)	 	For each Option Right and Appreciation Right, the Participant shall
receive a payment equal to the difference between the consideration (consisting of
cash or other property (including securities of a successor or parent corporation))
received by holders of Common Stock in the Change of Control transaction and the
exercise price of the applicable Option Right or Appreciation Right, if such
difference is positive. Such payment shall be made in the same form as the
consideration received by holders of Common Stock. Any Option Rights or
Appreciation Rights with an exercise price that is higher than the per share
consideration received by holders of Common Stock in connection with the Change of
Control shall be cancelled for no additional consideration.
	 
	 	(iii)	 	The Participant shall receive the consideration (consisting of cash or
other property (including securities of a successor or parent corporation)) that
such Participant would have received in the Change of Control transaction had he or
she been, immediately prior to such transaction, a holder of the number of shares
of Common Stock equal to the number of Restricted Stock Units and/or shares of
Restricted Stock covered by the award and the number of shares of Common Stock
payable under Section 12(b)(i) for awards subject to Management Objectives.
	 
	 	(iv)	 	The payments contemplated by Sections 12(b)(ii) and 12(b)(iii) shall be
made at the same time as consideration is paid to the holders of the Common Stock
in connection with the Change of Control.
	 
	 	(v)	 	Notwithstanding anything to the contrary in this Plan, if the Change of
Control does not constitute a 409A Change of Control and the payment or benefit
constitutes a deferral of compensation under Section 409A of the Code, then to the
extent necessary to comply with Section 409A of the Code payment or delivery shall
be made on the date of payment or delivery originally provided for such payment or
benefit.

	13.	 	Recapture Provisions. Any Evidence of Award may provide for the cancellation or forfeiture
of an award or the forfeiture and repayment to the Company of any gain related to an award, or
other provisions intended to have a similar effect, upon such terms and conditions as may be
determined by the Board in accordance with the Company’s Executive Adjustment and Recapture
Policy, as may be amended from time to time, any successor policy or otherwise.
	 
	14.	 	Non U.S. Participants. In order to facilitate the making of any grant or combination of
grants under this Plan, the Board may provide for such special terms for awards to
Participants who are foreign nationals or who are employed by the Company or any Subsidiary
outside of the United States of America or who provide services to the Company under an
agreement with a foreign nation or agency, as the Board may consider necessary or

 - 21 - 

 

	 	 	appropriate to accommodate differences in local law, tax policy or custom. Moreover, the
Board may approve such supplements to or amendments, restatements or alternative versions of
this Plan (including, without limitation, sub-plans) as it may consider necessary or
appropriate for such purposes, without thereby affecting the terms of this Plan as in effect
for any other purpose, and the Secretary or other appropriate officer of the Company may
certify any such document as having been approved and adopted in the same manner as this Plan.
No such special terms, supplements, amendments or restatements, however, will include any
provisions that are inconsistent with the terms of this Plan as then in effect unless this
Plan could have been amended to eliminate such inconsistency without further approval by the
shareholders of the Company.
	 
	15.	 	Transferability.

	 	(a)	 	No Option Right or Appreciation Right granted under this Plan shall be transferable
by the Participant except by will or the laws of descent and distribution, and in no
event shall any award granted under this Plan be transferred for value. Except as
otherwise determined by the Board, Option Rights and Appreciation Rights will be
exercisable during the Participant’s lifetime only by him or her or, in the event of the
Participant’s legal incapacity to do so, by his or her guardian or legal representative
acting on behalf of the Participant in a fiduciary capacity under state law and/or court
supervision.
	 
	 	(b)	 	The Board may specify at the Date of Grant that part or all of the shares of Common
Stock that are (i) to be issued or transferred by the Company upon the exercise of Option
Rights or Appreciation Rights, upon the termination of the Restriction Period applicable
to Restricted Stock Units or upon payment under any grant of Performance Shares,
Performance Units or Other Awards or (ii) no longer subject to the substantial risk of
forfeiture and restrictions on transfer referred to in Section 6 of this Plan, will be
subject to further restrictions on transfer.

	16.	 	Withholding Taxes. To the extent that the Company is required to withhold federal, state,
local or foreign taxes in connection with any payment made or benefit realized by a
Participant or other person under this Plan, and the amounts available to the Company for such
withholding are insufficient, it will be a condition to the receipt of such payment or the
realization of such benefit that the Participant or such other person make arrangements
satisfactory to the Company for payment of the balance of such taxes required to be withheld,
which arrangements (in the discretion of the Board) may include relinquishment of a portion of
such benefit. If a Participant’s benefit is to be received in the form of Common Stock, and
such Participant fails to make arrangements for the payment of tax, the Company shall withhold
such shares of Common Stock having a value equal to the amount required to be withheld.
Notwithstanding the foregoing, unless otherwise provided by the Board, when a Participant is
required to pay the Company an amount required to be withheld under applicable income and
employment tax laws, the Participant may elect to satisfy the obligation, in whole or in part,
by electing to have withheld, from the shares required to be delivered to the Participant, shares of Common Stock having a value equal to the amount required to be withheld (except in
the case of Restricted Stock where an election under Section 83(b) of the Code has been made),
or by delivering to the Company other shares of Common Stock held by such Participant. The shares used for tax withholding will

 - 22 - 

 

	 	 	be valued at an amount equal to the Market Value Per Share of such Common Stock on the date
the benefit is to be included in Participant’s income. In no event shall the Market Value Per
Share of the shares of Common Stock to be withheld and/or delivered pursuant to this Section
to satisfy applicable withholding taxes in connection with the benefit exceed the minimum
amount of taxes required to be withheld. Participants shall also make such arrangements as
the Company may require for the payment of any withholding tax obligation that may arise in
connection with the disposition of shares of Common Stock acquired upon the exercise of Option
Rights.
	 
	17.	 	Compliance with Section 409A of the Code.

	 	(a)	 	To the extent applicable, it is intended that this Plan and any grants made
hereunder comply with the provisions of Section 409A of the Code, so that the income
inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participants.
This Plan and any grants made hereunder shall be administered in a manner consistent with
this intent. Any reference in this Plan to Section 409A of the Code will also include
any regulations or any other formal guidance promulgated with respect to such Section by
the U.S. Department of the Treasury or the Internal Revenue Service.
	 
	 	(b)	 	Neither a Participant nor any of a Participant’s creditors or beneficiaries shall
have the right to subject any deferred compensation (within the meaning of Section 409A
of the Code) payable under this Plan and grants of deferred compensation hereunder to any
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment. Except as permitted under Section 409A of the Code, any deferred
compensation (within the meaning of Section 409A of the Code) payable to a Participant or
for a Participant’s benefit under this Plan and grants of deferred compensation hereunder
may not be reduced by, or offset against, any amount owing by a Participant to the
Company or any of its affiliates.
	 
	 	(c)	 	If, at the time of a Participant’s separation from service (within the meaning of
Section 409A of the Code), (i) the Participant shall be a specified employee (within the
meaning of Section 409A of the Code and using the identification methodology selected by
the Company from time to time) and (ii) the Company shall make a good faith determination
that an amount payable hereunder constitutes deferred compensation (within the meaning of
Section 409A of the Code) the payment of which is required to be delayed pursuant to the
six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or
penalties under Section 409A of the Code, then the Company shall not pay such amount on
the otherwise scheduled payment date but shall instead pay it, without interest, on the
first business day of the month after such six-month period.
	 
	 	(d)	 	For purposes of the Plan and its underlying agreements, a “409A Change in Control”
means the date on which any one of the following occurs: (i) any one person, or more
than one person acting as a group (as determined under Code Section 409A and the
regulations promulgated thereunder), acquires (or has acquired during the twelve (12)
month period ending on the date of the most recent acquisition by such person or persons)
ownership of stock of the Company possessing 30% or more of the total voting power of the
stock of the Company; or (ii) a majority of the members of the

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	 	 	 	Board is replaced during any 12-month period by directors whose appointment or election
is not endorsed by a majority of the members of the Board before the date of such
appointment or election; or (iii) any one person, or more than one person acting as a
group (as determined under Code Section 409A and the regulations promulgate thereunder),
acquires ownership of stock of the Company that, together with stock held by such person
or group, constitutes more than 50% of the total fair market value or total voting power
of the stock of the Company; or (iv) any one person, or more than one person acting as a
group (as determined under Code Section 409A and the regulation thereunder), acquires
(or has acquired during the twelve (12) month period ending on the date of the most
recent acquisition by such person or persons) assets from the Company that have a total
gross fair market value equal to or more than 40% of the total gross fair market value
of all of the assets of the Company before such acquisition or acquisitions. For this
purpose, “gross fair market value” means the value of the assets of the Company, or the
value of the assets being disposed of, determined without regard to any liabilities
associated with such assets.
	 
	 	(e)	 	Notwithstanding any provision of this Plan and grants hereunder to the contrary, in
light of the uncertainty with respect to the proper application of Section 409A of the
Code, the Company reserves the right to make amendments to this Plan and grants hereunder
as the Company deems necessary or desirable to avoid the imposition of taxes or penalties
under Section 409A of the Code. In any case, a Participant shall be solely responsible
and liable for the satisfaction of all taxes and penalties that may be imposed on a
Participant or for a Participant’s account in connection with this Plan and grants
hereunder (including any taxes and penalties under Section 409A of the Code), and neither
the Company nor any of its affiliates shall have any obligation to indemnify or otherwise
hold a Participant harmless from any or all of such taxes or penalties.

	18.	 	Additional Restrictions with Respect to Qualified Performance-Based Awards.

	 	(a)	 	Qualified Performance-Based Awards shall be granted by a committee, which may be
the Compensation and Management Development Committee or any other committee of the Board
(or a subcommittee thereof), provided that such committee consists solely of two or more
“outside directors” within the meaning of Section 162(m) of the Code.
	 
	 	(b)	 	To the extent that a Qualified Performance-Based Award shall be based on
achievement of Management Objectives, the committee shall establish and approve the
Management Objectives in writing prior to the latest possible date, but in no event more
than 90 days after the commencement of services to which the Management Objectives
relates, that will not jeopardize the award as qualifying as “qualified performance-based
compensation” under Section 162(m) of the Code.
	 
	 	(c)	 	Other than in connection with the Participant’s death or disability, or a Change in
Control, the terms of a Qualified Performance-Based Award may not be amended where such
action would result in the loss of the otherwise available exemption of the award under
Section 162(m) of the Code.

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	 	(d)	 	In no event shall a Participant’s Qualified Performance-Based Awards exceed the
Individual Participant Limits described in Section 3(c).
	 
	 	(e)	 	Qualified Performance-Based Awards are intended to satisfy the requirements for
“qualified performance-based compensation” under Section 162(m) of the Code and the terms
relating to such awards are to be interpreted and operated accordingly.

	19.	 	Effective Date. The Sherwin-Williams Company 2006 Equity and Performance Incentive Plan
first became effective on April 20, 2006, the date immediately following the date it was
approved by shareholders. No grants have been or are permitted under The Sherwin-Williams
Company 2003 Stock Plan on or after April 20, 2006. This Plan shall be effective as of the
Effective Date.
	 
	20.	 	Amendments.

	 	(a)	 	The Board may at any time and from time to time amend this Plan in whole or in
part; provided, however, that if an amendment to this Plan (i) would materially increase
the benefits accruing to Participants under this Plan, (ii) would materially increase the
number of securities which may be issued under this Plan, (iii) would materially modify
the requirements for participation in this Plan or (iv) must otherwise be approved by the
shareholders of the Company in order to comply with applicable law or the rules of the
New York Stock Exchange or, if the shares of Common Stock are not traded on the New York
Stock Exchange, the principal national securities exchange upon which the shares of
Common Stock are traded or quoted, then, such amendment will be subject to shareholder
approval and will not be effective unless and until such approval has been obtained.
	 
	 	(b)	 	Except in connection with a corporate transaction or event described in Section 11
of this Plan, the terms of outstanding awards may not be amended to reduce the Option
Price of outstanding Option Rights or the Base Price of outstanding Appreciation Rights,
or cancel outstanding Option Rights or Appreciation Rights in exchange for cash, other
awards or Option Rights or Appreciation Rights with an Option Price or Base Price, as
applicable, that is less than the Option Price of the original Option Rights or Base
Price of the original Appreciation Rights, as applicable, without shareholder approval.
This Section 20(b) is intended to prohibit the repricing of “underwater” Option Rights
and Appreciation Rights and will not be construed to prohibit the adjustments provided
for in Section 11 of this Plan. Notwithstanding any provision of this Plan to the
contrary, this Section 20(b) may not be amended without shareholder approval.
	 
	 	(c)	 	If permitted by Section 409A of the Code, but subject to the paragraph that
follows, in case of termination of employment by reason of death, disability or normal or
early retirement of a Participant who holds an Option Right or Appreciation Right not
immediately exercisable in full, or any shares of Restricted Stock as to which the
substantial risk of forfeiture or the prohibition or restriction on transfer has not
lapsed, or any Restricted Stock Units as to which the Restriction Period has not been
completed, or any Performance Shares or Performance Units which have not been fully
earned, or any Other Awards that have not been fully earned or that are subject

 - 25 - 

 

	 	 	 	to any vesting schedule or transfer restriction, or who holds shares of Common Stock
subject to any transfer restriction imposed pursuant to Section 15 of this Plan, or in
the case of a Change of Control, the Board may, in its sole discretion, accelerate the
time at which such Option Right, Appreciation Right or other award may be exercised or
the time at which such substantial risk of forfeiture or prohibition or restriction on
transfer will lapse or the time when such Restriction Period will end or the time at
which such Performance Shares or Performance Units will be deemed to have been fully
earned or the time when such Other Awards shall be deemed to have been fully earned or
vested or that such transfer restriction will terminate or may waive any other
limitation or requirement under any such award.
	 
	 	 	 	Subject to Section 17(b) hereof, the Board may amend the terms of any award theretofore
granted under this Plan prospectively or retroactively, except in the case of a
Qualified Performance-Based Award (other than in connection with the Participant’s death
or disability, or a Change of Control) where such action would result in the loss of the
otherwise available exemption of the award under Section 162(m) of the Code. In such
case, the Board will not make any modification of the Management Objectives or the level
or levels of achievement with respect to such Qualified Performance-Based Award.
Subject to Section 11 above, no such amendment shall impair the rights of any
Participant without his or her consent. The Board may, in its discretion, terminate
this Plan at any time. Termination of this Plan will not affect the rights of
Participants or their successors under any awards outstanding hereunder and not
exercised in full on the date of termination.

	21.	 	Termination. No grant will be made under this Plan after April 20, 2020 (more than 10 years
after the date on which this Plan is approved by the shareholders of the Company), but all
grants made on or prior to such date will continue in effect thereafter subject to the terms
thereof and of this Plan.
	 
	22.	 	Governing Law. This Plan and all grants and awards and actions taken thereunder shall be
governed by and construed in accordance with the internal substantive laws of the State of
Ohio.
	 
	23.	 	Miscellaneous Provisions.

	 	(a)	 	The Company will not be required to issue any fractional shares of Common Stock
pursuant to this Plan. The Board may provide for the elimination of fractions or for the
settlement of fractions in cash.
	 
	 	(b)	 	This Plan will not confer upon any Participant any right with respect to
continuance of employment or other service with the Company or any Subsidiary, nor will
it interfere in any way with any right the Company or any Subsidiary would otherwise have
to terminate such Participant’s employment or other service at any time.
	 
	 	(c)	 	To the extent that any provision of this Plan would prevent any Option Right that
was intended to qualify as an Incentive Stock Option from qualifying as such, that
provision will be null and void with respect to such Option Right. Such provision,

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	 	 	 	however, will remain in effect for other Option Rights and there will be no further
effect on any provision of this Plan.
	 
	 	(d)	 	No award under this Plan may be exercised by the holder thereof if such exercise,
and the receipt of cash or stock thereunder, would be, in the opinion of counsel selected
by the Board, contrary to law or the regulations of any duly constituted authority having
jurisdiction over this Plan.
	 
	 	(e)	 	Absence on leave approved by a duly constituted officer of the Company or any of
its Subsidiaries shall not be considered interruption or termination of service of any
employee for any purposes of this Plan or awards granted hereunder; however, in no event
will an award be granted to a Participant whom is on a long term leave of absence.
	 
	 	(f)	 	No Participant shall have any rights as a stockholder with respect to any shares
subject to awards granted to him or her under this Plan prior to the date as of which he
or she is actually recorded as the holder of such shares upon the stock records of the
Company.
	 
	 	(g)	 	The Board may condition the grant of any award or combination of awards authorized
under this Plan on the surrender or deferral by the Participant of his or her right to
receive a cash bonus or other compensation otherwise payable by the Company or a
Subsidiary to the Participant.
	 
	 	(h)	 	Participants shall provide the Company with a written election form setting forth
the name and contact information of the person who will have beneficial ownership rights
upon the death of the Participant.
	 
	 	(i)	 	If any provision of this Plan is or becomes invalid, illegal or unenforceable in
any jurisdiction, or would disqualify this Plan or any award under any law deemed
applicable by the Board, such provision shall be construed or deemed amended or limited
in scope to conform to applicable laws or, in the discretion of the Board, it shall be
stricken and the remainder of this Plan shall remain in full force and effect.

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