Document:

exv10w36

Exhibit 10.36

WATERS CORPORATION

MANAGEMENT INCENTIVE PLAN

 

 

WATERS CORPORATION

Management Incentive Plan

1. Purpose

     The purpose of this Plan is to (i) align the interests of eligible employees with the
Company’s shareholders, (ii) motivate eligible employees to achieve annual financial and operating
targets, (iii) provide increasing levels of incentive plan payout opportunity consistent with
increasing levels of annual financial performance, (iv) enhance individual accountability for goal
achievement and align employee interests and objectives worldwide, and (v) attract and retain key
employees.

2. Definitions

     As used in this Plan, the following terms shall have the following meanings:

     2.1. Affiliate means any corporation, partnership, limited liability company, business
trust, or other entity controlling, controlled by or under common control with the Company.

     2.2.
Award means a right to receive a cash incentive payment pursuant to the terms and
conditions of the Plan.

     2.3. Board means the Company’s Board of Directors.

     2.4. Code means the Internal Revenue Code of 1986, as amended from time to time, or
any successor statute thereto, and any regulations issued from time to time thereunder.

     2.5. Committee means the Compensation Committee of the Board, which in general is
responsible for the administration of the Plan, as provided in Section 3 of this Plan. For any
period during which no such committee is in existence “Committee” shall mean the Board and all
authority and responsibility assigned to the Committee under the Plan shall be exercised, if at
all, by the Board.

     2.6. Company means Waters Corporation, a corporation organized under the laws of the
State of Delaware.

     2.7.
Covered Employee means a Participant who is a “covered employee” within the meaning of
Section 162(m) of the Code.

     2.8. Participant means an employee who is a holder of an Award under the Plan.

     2.9.
Performance Criteria means the criteria that the Committee selects for purposes of
establishing the Performance Goal or Performance Goals for a Participant for a Performance Period.
Solely with respect to Awards to Covered Employees, the Performance Criteria used to establish
Performance Goals are limited to: (i) cash flow (before or after dividends), (ii) earnings per
share (including, without limitation, earnings before interest, taxes, depreciation and
amortization), (iii) stock price, (iv) return on equity, (v) stockholder return or total
stockholder return, (vi) return on capital (including, without limitation, return on total capital
or return on invested capital), (vii) return on investment, (viii) return on assets or net assets,
(ix) market

 

-2-

capitalization, (x) economic value added, (xi) debt leverage (debt to capital), (xii) revenue,
(xiii) sales or net sales, (xiv) backlog, (xv) income, pre-tax income or net income,
(xvi) operating income or pre-tax profit, (xvii) operating profit, net operating profit or economic
profit, (xviii) gross margin, operating margin or profit margin, (xix) return on operating revenue
or return on operating assets, (xx) cash from operations, (xxi) operating ratio, (xxii) operating
revenue, (xxiii) market share improvement, (xxiv) general and administrative expenses and
(xxv) customer service. The Performance Criteria used to establish Performance Goals for
Participants who are not Covered Employees shall not be so limited solely by reason of this
Section.

     2.10.
Performance Goals means, for a Performance Period, the written goal or goals established
by the Committee for the Performance Period based upon the Performance Criteria. The Performance
Goals may be expressed in terms of overall Company performance or the performance of a division,
business unit, subsidiary, or an individual, either individually, alternatively or in any
combination, applied to either the Company as a whole or to a business unit or Affiliate, either
individually, alternatively or in any combination, and measured either quarterly, annually or
cumulatively over a period of years, on an absolute basis or relative to a pre-established target,
to previous years’ results or to a designated comparison group, in each case as specified by the
Committee. The Committee will, in the manner and within the time prescribed by Section 162(m) of
the Code in the case of Qualified Performance-Based Awards, objectively define the manner of
calculating the Performance Goal or Goals it selects to use for such Performance Period for any
Participant. Solely with respect to Awards to Covered Employees, and to the extent consistent with
Section 162(m) of the Code (in the case of Qualified Performance-Based Awards), the Committee may
appropriately adjust any evaluation of performance against a Performance Goal to exclude any of the
following events that occurs during a Performance Period: (i) asset write-downs, (ii) litigation,
claims, judgments or settlements, (iii) the effect of changes in tax law, accounting principles or
other such laws or provisions affecting reported results, (iv) accruals for reorganization and
restructuring programs and (v) any extraordinary, unusual, non-recurring or non-comparable items
(A) as described in Accounting Principles Board Opinion No. 30, (B) as described in management’s
discussion and analysis of financial condition and results of operations appearing in the Company’s
Annual Report to stockholders for the applicable year, or (C) publicly announced by the Company in
a press release or conference call relating to the Company’s results of operations or financial
condition for a completed quarterly or annual fiscal period. With respect to Awards to
Participants who are not Covered Employees, the Committee may exclude or otherwise take into
account such other events that occur during a Performance Period as it deems appropriate in its
sole discretion.

     2.11.
Performance Period means a period of one calendar year over which the attainment of one
or more Performance Goals or other business objectives will be measured for purposes of determining
a Participant’s right to payment pursuant to an Award.

     2.12. Plan means this Management Incentive Plan of the Company, as amended from time
to time, and including any attachments or addenda hereto.

     2.13.
Qualified Performance-Based Awards means Awards intended to qualify as
“performance-based compensation” under Section 162(m) of the Code.

 

-3-

3. Administration

     The Plan shall be administered by the Committee; provided, however, that at any time and on
any one or more occasions the Board may itself exercise any of the powers and responsibilities
assigned the Committee under the Plan and when so acting shall have the benefit of all of the
provisions of the Plan pertaining to the Committee’s exercise of its authorities hereunder; and
provided, further, that with respect to Awards to Participants who are not Covered Employees, the
Committee may delegate to an executive officer, officer or employee the authority to exercise any
of the powers and responsibilities assigned to the Committee under the Plan including the authority
to grant Awards to such Participants. Subject to the provisions of the Plan, the Committee shall
have complete authority, in its discretion, to make or to select the manner of making all
determinations with respect to the Plan. In making such determinations, the Committee may take
into account the nature of the services rendered by employees, their present and potential
contributions to the success of the Company and its Affiliates, and such other factors as the
Committee in its discretion shall deem relevant. Subject to the provisions of the Plan, the
Committee shall also have complete authority to interpret the Plan, to prescribe, amend and rescind
rules and regulations relating to it, and to make all other determinations necessary or advisable
for the administration of the Plan. The Committee’s determinations made in good faith on matters
referred to in the Plan shall be final, binding and conclusive on all persons having or claiming
any interest under the Plan or an Award granted pursuant hereto.

4. Eligibility for Awards

     4.1.
Eligibility. The Committee may from time to time and at any time prior to the
termination of the Plan grant Awards to any employee of one or more of the Company and its
Affiliates.

     4.2.
Effect of Termination of
Employment, Etc. Unless the Committee shall provide otherwise
with respect to any Award, in order to be eligible to receive payment pursuant to an Award, a
Participant must have remained in the continuous employ of the Company and its Affiliates through
the end of the applicable Performance Period and until date on which the Award payment is paid,
except as follows:

          (a) In the event of a Participant’s termination of employment during the Performance Period
due to death or disability the Committee may, in its sole discretion, authorize the Company or the
applicable Affiliate to make payment, in full or on a prorated basis, pursuant to an Award,
subject, unless the Committee determines otherwise, to achievement of the Performance Goal or Goals
within the applicable Performance Period.

          (b) In the event of the retirement (as determined by the Committee) of a Participant who is
not a Covered Employee during the Performance Period, the Committee may, in its sole discretion,
authorize the Company or the applicable Affiliate to make payment, in full or on a prorated basis,
pursuant to an Award, subject, unless the Committee determines otherwise, to achievement of the
Performance Goal or Goals within the applicable Performance Period.

          (c) In the event of the retirement (as determined by the Committee) during the Performance
Period of a Participant who is a Covered Employee, the Committee may, in its sole discretion,
authorize the Company or the applicable Affiliate to make payment, in full or on a prorated basis,
pursuant to an Award so long as the Committee has determined that the applicable Performance Goal
or Goals were achieved within the applicable Performance Period.

 

-4-

5. Terms of Awards

     5.1.
General Terms. A Participant’s eligibility for an Award shall be subject to all
applicable terms and conditions of the Plan and such other terms and conditions, not inconsistent
with the terms of the Plan, as the Committee may prescribe. No prospective Participant shall have
any rights with respect to an Award, unless and until such Participant shall have complied with the
applicable terms and conditions of such Award. The Committee shall set Performance Goals or other
business objectives in its discretion which, depending on the extent to which they are met within
the applicable Performance Period, will determine the payment to be made to the Participant
pursuant to the terms of his or her Award. After the applicable Performance Period has ended, the
Participant shall be entitled to payment pursuant to the terms of his or her Award, to be
determined as a function of the extent to which the corresponding Performance Goals or other
business objectives have been achieved.

     5.2. Payments. Payment pursuant to an Award which is subject to U.S. taxation shall
be made in a single lump sum on or before the March 15th next following the close of the applicable
Performance Period. Payment pursuant to an Award which is not subject to U.S. taxation shall be
made in a single lump sum on or about the March 15th next following the close of the applicable
Performance Period or as soon as practicable thereafter.

     5.3.
Qualified Performance-Based Awards.

          (a) Purpose. The purpose of this Section 5.3 is to provide the Committee the ability
to qualify Awards as “performance-based compensation” under Section 162(m) of the Code. If the
Committee, in its discretion, decides to grant an Award as a Qualified Performance-Based Award, the
provisions of this Section 5.3 will control over any contrary provision contained in the Plan. In
the course of granting any Award, the Committee may specifically designate the Award as intended to
qualify as a Qualified Performance-Based Award. However, no Award shall be considered to have
failed to qualify as a Qualified Performance-Based Award solely because the Award is not expressly
designated as a Qualified Performance-Based Award, if the Award otherwise satisfies the provisions
of this Section 5.3 and the requirements of Section 162(m) of the Code and the regulations
promulgated thereunder applicable to “performance-based compensation.”

          (b) Authority. All grants of Awards intended to qualify as Qualified Performance-Based Awards
and determination of terms applicable thereto shall be made by the Committee or, if not all of the
members thereof qualify as “outside directors” within the meaning of applicable IRS regulations
under Section 162 of the Code, a subcommittee of the Committee consisting of such of the members of
the Committee as do so qualify. Any action by such a subcommittee shall be considered the action
of the Committee for purposes of the Plan.

          (c) Applicability. This Section 5.3 will apply only to those Covered Employees, or to
those persons who the Committee determines are reasonably likely to become Covered Employees in the
period covered by an Award, selected by the Committee to receive Qualified Performance-Based
Awards. The Committee may, in its discretion, grant Awards to Covered Employees that do not
satisfy the requirements of this Section 5.3.

          (d) Discretion
of Committee with Respect to
Qualified Performance-Based Awards. Each Award
intended to qualify as a Qualified Performance-Based Award shall be subject to satisfaction of one
or more Performance Goals. The Committee will have full

 

-5-

discretion to select the length of any applicable Performance Period, the kind and/or level of
the applicable Performance Goal, and whether the Performance Goal is to apply to the Company, an
Affiliate or any division or business unit, or to the individual. Any Performance Goal or Goals
applicable to Qualified Performance-Based Awards shall be objective, shall be established not later
than ninety (90) days after the beginning of any applicable Performance Period (or at such other
date as may be required or permitted for “performance-based compensation” under Section 162(m) of
the Code) and shall otherwise meet the requirements of Section 162(m) of the Code, including the
requirement that the outcome of the Performance Goal or Goals be substantially uncertain (as
defined in the regulations under Section 162(m) of the Code) at the time established.

          (e) Payment of Qualified Performance-Based Awards. Except as otherwise provided in Section
4.2(a), a Participant will be eligible to receive payment under a Qualified Performance-Based Award
which is subject to achievement of a Performance Goal or Goals only if the applicable Performance
Goal or Goals are achieved within the applicable Performance Period, as determined by the
Committee. In determining the actual size of an individual Qualified Performance-Based Award, the
Committee may reduce or eliminate the amount of the Qualified Performance-Based Award earned for
the Performance Period, if in its sole and absolute discretion, such reduction or elimination is
appropriate.

          (f) Maximum Amount Payable. The maximum amount payable pursuant to Qualified
Performance-Based Awards to all Participants under the Plan (and, therefore, to any one Participant
under the Plan) for any Performance Period is $5,000,000.

          (g) Limitation on Adjustments for Certain Events. Unless otherwise approved by the Committee,
no adjustment of any Qualified Performance-Based Award pursuant to Section 6 shall be made except
on such basis, if any, as will not cause such Award to provide other than “performance-based
compensation” within the meaning of Section 162(m) of the Code.

6. Adjustment Provisions

     6.1. Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. In
the event of any corporate action including but not limited to a merger or consolidation of the
Company with or into another entity, a sale, transfer, or other disposition of all or substantially
all of the Company’s assets to one or more other persons in a single transaction or series of
related transactions, a liquidation or dissolution of the Company, a reorganization, a
recapitalization, a reclassification, a stock dividend, a stock split, a reverse stock split, or
other similar distribution, the Committee may make such adjustment of outstanding Awards and their
terms, if any, as it, in its sole discretion, may deem equitable and appropriate in the
circumstances. In addition, the Committee may make adjustments in the terms and conditions of, and
the Performance Criteria included in Awards in recognition of unusual or nonrecurring events
(including, without limitation, the events described in this Section) affecting the Company or the
financial statements of the Company or of changes in applicable laws, regulations, or accounting
principles, whenever the Committee determines that such adjustments are appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan.

     6.2. Related Matters. Any adjustment in Awards made pursuant to Section 6.1 shall be
determined and made, if at all, by the Committee, acting in its sole discretion, and shall include
any correlative modification of terms, including Performance Goals and other financial

 

-6-

objectives which the Committee may deem necessary or appropriate so as to ensure the rights of
the Participants in their respective Awards are not substantially diminished nor enlarged as a
result of the adjustment and corporate action other than as expressly contemplated in this Section
6.

7. No Special Service Rights

     Nothing contained in the Plan or in any Award Agreement shall confer upon any Participant any
right with respect to the continuation of his or her employment with the Company (or any
Affiliate), or interfere in any way with the right of the Company (or any Affiliate), subject to
the terms of any separate employment agreement or provision of law or corporate articles or by-laws
to the contrary, at any time to terminate such employment relationship or to increase or decrease,
or otherwise adjust, the other terms and conditions of the Participant’s employment with the
Company and its Affiliates.

8. Section 409A; Unfunded Status of Plan

     This Plan is intended to be exempt from Section 409A of the Code and the rules and regulations
promulgated thereunder (collectively, “Section 409A”). By participating in the Plan, each
Participant acknowledges that he or she bears the entire risk of any adverse federal and State tax
consequences and penalty taxes in the event any payment pursuant to this Plan is deemed to be
subject to Section 409A and that no representations have been made to Participant relating to the
tax treatment of any payment pursuant to this Plan under Section 409A of the Code and the
corresponding provisions of any applicable State income tax laws.

     The Plan is intended to constitute an “unfunded” plan for incentive compensation, and the Plan
is not intended to constitute a plan subject to the provisions of the Employee Retirement Income
Security Act of 1974, as amended. With respect to any payments not yet made to a Participant by
the Company, nothing contained herein shall give any such Participant any rights that are greater
than those of a general creditor of the Company. In its sole discretion, the Committee may
authorize the creation of trusts or other arrangements to meet the obligations created under the
Plan, provided, however, that the existence of such trusts or other arrangements is consistent with
the unfunded status of the Plan.

9. Termination and Amendment of the Plan

     9.1. Termination or Amendment of the Plan. The Board may at any time terminate the Plan or
make such modifications of the Plan as it shall deem advisable. Unless the Board otherwise
expressly provides, no amendment of the Plan shall affect the terms of any Award outstanding on the
date of such amendment.

     9.2. Amendment of Outstanding Awards. The Committee may amend the terms of any Award
theretofore granted, prospectively or retroactively, provided that the Award as amended is
consistent with the terms of the Plan.

     9.3. Limitations on Amendments, Etc. Except as otherwise provided herein, no amendment or
modification of the Plan by the Board, or of an outstanding Award by the Committee, shall impair
the rights of the recipient of any Award outstanding on the date of such amendment or modification
of such Award, as the case may be, without the Participant’s consent; provided, however, that no
such consent shall be required if (i) the Board or Committee, as the

 

-7-

case may be, determines in its sole discretion and prior to the date of any change of control
that such amendment or alteration either is required or advisable in order for the Company, the
Plan or the Award to satisfy any law or regulation, including without limitation the provisions of
Section 409A of the Code, or to meet the requirements of or avoid adverse financial accounting
consequences under any accounting standard, or (ii) the Board or Committee, as the case may be,
determines in its sole discretion and prior to the date of any change of control that such
amendment or alteration is not reasonably likely to significantly diminish the benefits provided
under the Award, or that any such diminution has been adequately compensated.

10. Notices and Other Communications

     Any notice, demand, request or other communication hereunder to any party shall be deemed to
be sufficient if contained in a written instrument delivered in person or duly sent by first class
registered, certified or overnight mail, postage prepaid, or telecopied with a confirmation copy by
regular, certified or overnight mail, addressed or telecopied, as the case may be, (i) if to a
Participant, at his or her residence address last filed with the Company and (ii) if to the
Company, at its principal place of business, addressed to the attention of its Treasurer, or to
such other address or telecopier number, as the case may be, as the addressee may have designated
by notice to the addressor. All such notices, requests, demands and other communications shall be
deemed to have been received: (i) in the case of personal delivery, on the date of such delivery;
(ii) in the case of mailing, when received by the addressee; and (iii) in the case of facsimile
transmission, when confirmed by facsimile machine report.

11. Governing Law

     The Plan and all Awards and actions taken thereunder shall be governed, interpreted and
enforced in accordance with the laws of the State of Delaware without regard to the conflict of
laws principles thereof.exv10w49

Exhibit 10.49

WATERS

RETIREMENT RESTORATION PLAN

Amended and Restated Effective January 1, 2008

(except as otherwise provided herein)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	PREAMBLE
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II ELIGIBILITY
	 	 	4	 
	 
	 	 	 	 
	2.1 Generally
	 	 	 4	 
	 
	 	 	 	 
	ARTICLE III PARTICIPANT ACCOUNTS
	 	 	5	 
	 
	 	 	 	 
	3.1 Generally
	 	 	 5	 
	3.2 Amount Credited to Participant
	 	 	 5	 
	3.3 Termination of Account
	 	 	 6	 
	 
	 	 	 	 
	ARTICLE IV FORM AND TIMING OF BENEFITS
	 	 	7	 
	 
	 	 	 	 
	4.1 Distributable Events
	 	 	 7	 
	4.2 Form of Benefit
	 	 	 7	 
	4.3 Timing of Distribution
	 	 	 8	 
	4.4 Small Payments
	 	 	 9	 
	4.5 Restriction on Timing of Distributions
	 	 	 9	 
	 
	 	 	 	 
	ARTICLE V VESTING
	 	 	10	 
	 
	 	 	 	 
	ARTICLE VI ADMINISTRATION, AMENDMENT/TERMINATION AND FUNDING
	 	 	11	 
	 
	 	 	 	 
	6.1 Administration
	 	 	11	 
	6.2 Right to Amend or Terminate
	 	 	11	 
	6.3 Funding
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VII GENERAL PROVISIONS
	 	 	12	 
	 
	 	 	 	 
	7.1 Compliance with Section 409A
	 	 	12	 
	7.2 Payment to Minors and Incompetents
	 	 	12	 
	7.3 No Contract
	 	 	12	 
	7.4 Use of Masculine and Feminine; Singular and Plural
	 	 	12	 
	7.5 Non-Alienation of Benefits
	 	 	12	 
	7.6 Governing Law
	 	 	12	 
	 
	 	 	 	 
	APPENDIX A PROVISIONS APPLICABLE TO CERTAIN EMPLOYEES OF WATERS-TA INSTRUMENTS LLC
	 	 	1	 
	 
	 	 	 	 
	INTRODUCTION
	 	 	2	 
	ARTICLE A1 DEFINITIONS
	 	 	3	 
	ARTICLE A2 ELIGIBILITY
	 	 	4	 
	ARTICLE A3 AMOUNT OF BENEFIT
	 	 	5	 

 i 

 

 

PREAMBLE

Effective January 1, 1995, Waters Technologies Corporation (the “Corporation”) established this
non-qualified defined benefit pension plan referred to as the Waters Retirement Restoration Plan
(the “Plan”). The Plan is intended to provide participants in the Waters Retirement Plan (the
“Basic Plan”), and their designated beneficiaries, with the benefits which cannot be paid under the
Basic Plan because of the benefit restrictions of Section 415 of the Internal Revenue Code (the
“Code”) and regulations thereunder and the compensation limitations of Section 401(a)(17) of the
Code and regulations thereunder.

Effective January 1, 2008, the Basic Plan was amended to provide that no further Annual Pay Credits
were to be made to the Basic Plan for Plan Years beginning after December 31, 2007, except as
otherwise provided for certain non-highly compensated Employees of Waters-TA Instruments LLC. The
Basic Plan was also amended on that date to close the Basic Plan to new participants as of January
1, 2008.

The Plan is amended and restated effective January 1, 2008 to incorporate by reference certain
changes in the structure of the Basic Plan, and to close the Plan to new Participants effective as
of January 1, 2008, except as otherwise provided herein, in accordance with the closure of the
Basic Plan to new participants. Additionally, the Plan has been revised to comply with current
laws and regulations, including, but not limited to, Section 409A of the Code and its accompanying
regulations.

1

 

ARTICLE I

DEFINITIONS

The following words and phrases when used in the Plan shall have the meanings indicated in this
Article I unless a different meaning is plainly required by the context:

	1.1	 	“Affiliate” means any corporation which is a member of a controlled group of
corporations (as defined in Section 414(b) of the Code) which includes the Corporation; any
trade or business (whether or not incorporated) which is under common control (as defined in
Section 414(c) of the Code) with the Corporation; any organization (whether or not
incorporated) which is a member of an affiliated service group (as defined in Section 414(m)
of the Code) which includes the Corporation; and any other entity required to be aggregated
with the Corporation pursuant to regulations under Section 414(o) of the Code.
	 
	1.2	 	“Account” means the notional account described in Section 3.1 maintained for each
Participant.
	 
	1.3	 	“Basic Plan” means the Waters Retirement Plan as in effect from time to time.
	 
	1.4	 	“Beneficiary” means the individual designated by a Participant to receive benefits
under this Plan in the event of the Participant’s death. In the event that no Beneficiary has
been effectively designated, the Participant’s spouse shall be deemed the designated
Beneficiary, or if the Participant has no spouse, his children, if any, per stirpes, and if
none, the estate of the Participant shall be deemed the designated Beneficiary.
	 
	1.5	 	“Board” means the Board of Directors of Waters Technologies Corporation.
	 
	1.6	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
regulations issued thereunder.
	 
	1.7	 	“Committee” means the persons appointed pursuant to Article IX of the Basic Plan to
administer the Basic Plan.
	 
	1.8	 	“Corporation” means Waters Technologies Corporation, a corporation organized and
existing under the laws of the State of Delaware, or its successor or successors.
	 
	1.9	 	“Disability” means a physical or mental incapacity that entitles a Participant to
benefits under the Corporation’s group long-term disability (LTD) plan and either (i) the
Participant is unable to engage in any substantial gainful activity by reason of such
incapacity that can be expected to result in death or can be expected to last for a continuous
period not less than twelve (12) months or (ii) such incapacity is expected to result in death
or can be expected to last for a continuous period of not less than twelve (12) months and the
Participant has been receiving benefits under the group LTD plan for at least six (6) months.

2

 

	1.10	 	“Effective Date” means January 1, 1995, except that this amendment and restatement
shall be effective January 1, 2008.
	 
	1.11	 	“Employee” means any person employed on a regular full-time or a regular part-time
basis by a Participating Employer.
	 
	1.12	 	“Participant” means an Employee participating in the Plan pursuant to Article II.
	 
	1.13	 	“Participating Employer” means Waters Technologies Corporation and any Affiliate
which has been authorized by the Board to participate in the Plan and has elected to do so.
	 
	1.14	 	“Pay” means the annual compensation that would otherwise be recognized under the
Basic Plan for benefit accrual purposes without regard to the limit on pensionable
compensation under Code Section 401(a)(17).
	 
	1.15	 	“Plan” means the Waters Retirement Restoration Plan as set forth in this document and
as it may be amended from time to time.
	 
	1.16	 	“Plan Year” means each twelve (12) month period beginning on January 1 and ending on
the following December 31.
	 
	1.17	 	“Separation from Service” means a termination of employment as defined in Treas.
Regs. § 1.409A-1(h)(1) using a decrease in the level of bona fide services performed to twenty
percent (20%) or less as constituting a Separation from Service.
	 
	1.18	 	“Specified Employee” means a Participant who is a key employee (as defined in Section
416(i) of the Code without regard to paragraph (5) thereof). A Participant will be considered
a key employee for the period commencing April 1 and ending on the March 31 thereafter if he
or she was a key employee on the previous December 31 and such designation shall be effective
solely for that period.

3

 

ARTICLE II

ELIGIBILITY

2.1 Generally.

     A Basic Plan participant shall become a Participant hereunder if either:

	 	(a)	 	his Basic Plan retirement benefit is restricted or reduced by the Code Section
415 limitations on maximum pensions; or
	 
	 	(b)	 	his Pay is not fully recognized under the Basic Plan because of the limitations
imposed by Code Section 401(a)(17), and his annual base salary as of November 1, 2007
is at least $130,232.35 for 2008 Plan Year eligibility (increased each November 1st
thereafter to reflect increases in the Consumer Price Index for the twelve-month period
ending on the immediately preceding September 30 under section 215(i)(2)(A) of the
Social Security Act).

Notwithstanding the foregoing, in no event will any Employee become a Participant on or
after January 1, 2008 except as otherwise provided in Section A2.1 of the Plan.

4

 

ARTICLE III

PARTICIPANT ACCOUNTS

	3.1	 	Generally.
	 
	 	 	A notional Account shall be established and maintained for each Participant. A
Participant’s Account shall be credited with Annual Pay Credits and Interest Credits, as
defined in the Basic Plan, in accordance with Sections 3.2 and 3.3. Notwithstanding the
foregoing, in no event will a Participant’s Account be credited with Annual Pay Credits for
any Plan Year beginning on or after December 31, 2007.

	3.2	 	Amount Credited to Participant.

	 	(a)	 	For Plan Years commencing prior to January 1, 2008, the amount credited to a
Participant’s Account each Plan Year shall be equal to the sum of (i) and (ii), where
(i) and (ii) are:

	 	(i)	 	An Annual Pay Credit equal to the excess, if any, of (A) over
(B), where:

(A) is the Annual Pay Credit (as that term is defined under the Basic Plan)
which would have been accrued by such Participant under the Basic Plan, if
the provisions of the Basic Plan were administered without regard to the
benefit limitations of Code Section 415 and regulations thereunder and the
compensation limitations of Code Section 401(a)(17) and regulations
thereunder; and

(B) is the Annual Pay Credit (as that term is defined under the Basic Plan)
which is accrued by such Participant under the Basic Plan.

	 	(ii)	 	An Interest Credit based on the amount of the Participant’s
Account as of the first day of each Plan Year. The Interest Credit shall be
added to each Participant’s Account as of the last day of the Plan Year.

	 	(b)	 	For Plan Years commencing on or after January 1, 2008, an Interest Credit shall
be credited to each Participant’s Account. Such Interest Credit shall be based on the
amount of the Participant’s Account as of the first day of each Plan Year, and shall be
added to each Participant’s Account as of the last day of the Plan Year.
	 
	 	(c)	 	Except as otherwise provided in paragraph (d), for any year in which a Plan
distribution is made to a Participant, his or her Interest Credit shall be based on the
amount of the Participant’s Account as of the first day of the Plan Year for the period
from the first day of such Plan Year to the end of the month preceding the month in
which he or she receives a distribution from this Plan. In no event will Interest
Credits continue after benefits have commenced.
	 
	 	(d)	 	If a Participant elects to receive his or her Account in installments as set
forth in Section 4.2(a)(ii), he or shall continue to receive Interest Credits until the
year in

5

 

	 	 	 	which the final installment is paid. For such year, the Participant’s Interest
Credit shall be based on the amount of the Participant’s Account as of the first day
of the Plan Year for the period from the first day of such Plan Year to the end of
the month preceding the month in which he or she receives the final installment
payment from the Plan. In no event will Interest Credits continue after the final
installment payment has been made.
	 
	 	(e)	 	The rate of interest used to determine the amount of the Interest Credit shall
be the one year constant maturity treasury yield on all actively traded U.S. Treasury
Securities that have one-year left to maturity as of the first business day in November
preceding the Plan Year (as published in the Wall Street Journal) plus 1/2%. In no
event will the interest rate be less than 5% nor more than 10% for any twelve (12)
month Plan Year. For the purposes of this paragraph, the constant maturity Treasury
Bill rate shall be determined by calculating the yields on all actively traded U.S.
Treasury securities and interpolating the yield for a Treasury Bill with exactly one
year to maturity.

	3.3	 	Termination of Account.
	 
	 	 	Upon the payment of a Participant’s Account in full in either a lump sum or installment
payments, such Account shall cease to exist.

6

 

ARTICLE IV

FORM AND TIMING OF BENEFITS

	4.1	 	Distributable Events.
	 
	 	 	Benefits shall only be distributable from the Plan upon the occurrence of one of the
following events:

	 	(a)	 	the Participant’s Separation from Service, other than due to death or Disability;
	 
	 	(b)	 	the Participant’s death; or
	 
	 	(c)	 	the Participant’s Disability.

	 	 	Benefits shall continue to be paid under this Plan regardless of whether the Participant is
reemployed by the Corporation or an Affiliate.
	 
	4.2	 	Form of Benefit.

(a) Except as otherwise provided in Section A3.2, a Participant’s Account shall be
distributed in one of the following forms:

	 	(i)	 	a single lump sum payment equal to the value of the
Participant’s Account or the Actuarial Equivalent (as that term is defined in
the Basic Plan) of the benefits provided in Appendix A; or
	 
	 	(ii)	 	a series of annual installment payments where a Participant can
choose to receive between two (2) and ten (10) such payments.

	 	 	If a Participant elects to receive his or her Account in the form described in subparagraph
(ii), he or she shall receive an initial installment payment equal to the balance of his or
her Account multiplied by a ratio, the numerator of which is one and the denominator of
which is the number of installments elected under subparagraph (ii) above. For each
following year for which an installment payment is due, the amount of a Participant’s
installment payment shall be equal to the remaining amount in his or her Account, plus the
Interest Credit credited for such year, multiplied by a ratio, the numerator of which is one
and the denominator of which is equal to the denominator used to calculate the first
installment payment reduced by one for each installment payment that has previously been
made to the Participant.

(b) A Participant shall make a written election concerning the form of payment for the
distribution of his or her Account or Accrued Benefit (as that term is defined in the
applicable appendix of the Basic Plan) no later than December 31, 2008. In the event that a
Participant fails to make such written election, the Participant shall be deemed to have
elected a single lump sum payment following the later of: (i) the date of his or her
Separation from Service; or (ii) January 1, 2009. Any Participant who terminated employment
prior to January 1, 2008 shall be permitted to make an election as to the

7

 

form of his or her benefit payment (or initial payment if such benefit is paid in
installments) and as to the date distribution shall commence to such Participant.

(c) A Participant may elect to change the form of his or her distribution, or the timing of
such distribution, or both, at the times permitted by the Committee, provided that:

	 	(i)	 	such election shall not take effect for a period of twelve (12)
months from the date such election is submitted to Committee in the form
required by Committee; and
	 
	 	(ii)	 	the Participant’s Account shall not be distributed earlier than
the fifth (5th) anniversary of the date the Participant’s Account
would have been distributed based on his or her initial election, or, in the
absence of an initial election, the default election made on his or her behalf.
Notwithstanding the foregoing, a Participant’s Account shall be payable upon
the earlier of the Participant’s death or Disability.

(d) Notwithstanding any provision of the Plan to the contrary, upon payment of a
Participant’s Account, no other benefit shall be payable hereunder to the Participant
or his Beneficiary.

(e) Upon the death of a Participant who has chosen to receive benefits in
installments as described in Section 4.2(a)(ii) and has received a least one (1)
installment payment, any remaining installment payments shall be paid to such
Participant’s Beneficiary in the form of a single lump sum payment made upon the
earlier of: (i) the ninetieth (90th) day following the Participant’s death;
or (ii) as soon as practicable after the date on which the Plan is made aware of the
Participant’s death. The exact date of such payment within the ninety-day period shall
be determined by the Corporation in its discretion.

	4.3	 	Timing of Distribution.
	 
	 	 	Except as otherwise provided under Section 4.4 or Section 4.5, a
Participant’s distribution shall occur at the following time:

	 	(a)	 	Lump Sum Payment. Lump sum distributions shall be made on or before
the ninetieth (90th) day immediately following the date on which the
Participant incurs a Separation from Service with the Participating Employer. The
exact date of such payment within the ninety-day period shall be determined by the
Corporation in its discretion.
	 
	 	(b)	 	Installment Payments. Annual installment payments shall commence
within 90 days after the date of the Participant’s date of Separation from Service, and
shall be made on each subsequent anniversary of the date of the Participant’s
Separation from Service until all installment payments have been made.

8

 

	4.4	 	Small Payments.
	 
	 	 	Notwithstanding Section 4.2 above, if the value of a Participant’s Account under this Plan
is not greater than the applicable amount under Code Section 402(g)(1)(B) ($15,500 for
2008), determined as of the date of the Participant’s Separation from Service with the
Participating Employer, an automatic lump sum payment of such amount shall be made to the
Participant (or his Beneficiary in the event of the Participant’s death before commencement
of his retirement benefit) on or before the ninetieth (90th) day immediately
following the date of the Participant’s Separation from Service.
	 
	 	 	Notwithstanding any provision of the Plan to the contrary, upon payment of such lump sum
distribution, no other benefit shall be payable hereunder to the Participant or his
Beneficiary.

	4.5	 	Restriction on Timing of Distributions.
	 
	 	 	In the event that any stock of the Corporation or any entity within the same controlled
group (as defined in Section 414(b) of the Code), is publicly traded on an established
securities market as defined in Section 1.409A-1(i) of the regulations under Section 409A of
the Code, distributions to a Specified Employee may not commence before the date that is six
(6) months after the Specified Employee’s date of Separation from Service, or, if earlier
than the end of the six-month period, the date of the death of the Specified Employee.
	 
	 	 	If a Participant’s distribution is restricted under this Section 4.5, such restricted
distribution shall be made on the earlier of the first day of the seventh month following
the date of the Participant’s Separation from Service or the date of the Specified
Employee’s death. All subsequent distributions shall be paid in the manner specified in
Section 4.2.

9

 

ARTICLE V

VESTING

Subject to Article VI, a Participant has a non-forfeitable interest in his Account under this Plan
beginning at the same time and under the same conditions as the vesting of his Basic Plan benefit.

10

 

ARTICLE VI

ADMINISTRATION, AMENDMENT/TERMINATION AND FUNDING

	6.1	 	Administration.
	 
	 	 	This Plan shall be administered by the Corporation through the Committee in a manner
consistent with the administration of the Basic Plan as set forth in the Basic Plan, except
as specifically provided herein.
	 
	 	 	The Committee shall have full discretion to interpret and administer this Plan and its
decision in any matter involving the interpretation and application of this Plan shall be
final and binding on all parties.

	6.2	 	Right to Amend or Terminate.
	 
	 	 	The Corporation reserves the right to amend, modify, suspend or terminate this Plan in whole
or in part at any time by action of its Board or the Board’s duly appointed delegate. No
amendment shall reduce a Participant’s Account under this Plan as of the amendment date,
except to the extent that the Participant agrees in writing to such reduction.

	6.3	 	Funding.
	 
	 	 	This Plan is unfunded. Benefits under this Plan will be paid from the general assets of the
Participating Employer. The rights of a Participant or Beneficiary shall be those of an
unsecured creditor of the Corporation and the Participating Employers.

11

 

ARTICLE VII

GENERAL PROVISIONS

	7.1	 	Compliance with Section 409A.
	 
	 	 	This Plan is intended to be operated in good faith compliance with the requirements of
Section 409A of the Code and its accompanying regulations, and any additional guidance
issued under Section 409A. To the extent that any provision of this Plan violates Section
409A, such provision shall be deemed inoperative and the remaining provisions of the Plan
shall continue to be fully effective.
	 
	7.2	 	Payment to Minors and Incompetents.
	 
	 	 	If any Participant or Beneficiary entitled to receive any benefits hereunder is a minor or
is deemed by the Committee or is adjudged to be legally incapable of giving valid receipt
and discharge for such benefits, they will be paid to such person or institution as the
Committee may designate or to the, duly appointed guardian. Such payment shall, to the
extent made, be deemed a complete discharge of any such payment under the Plan.
	 
	7.3	 	No Contract.
	 
	 	 	This Plan shall not be deemed a contract of employment with any Participant, nor shall any
provision of the Plan affect the right of the Corporation or any Affiliate to terminate a
Participant’s employment.
	 
	7.4	 	Use of Masculine and Feminine; Singular and Plural.
	 
	 	 	Wherever used in this Plan, the masculine gender will include the feminine gender and the
singular will include the plural, unless the context indicates otherwise.
	 
	7.5	 	Non-Alienation of Benefits.
	 
	 	 	No amount payable to, or held under the Plan for the account of, any Participant or
Beneficiary shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell,
transfer, assign, pledge, encumber, or charge the same shall be void; nor shall any amount
payable to, or held under the Plan for the account of, any Participant be in any manner
liable for his debts, contracts, liabilities, engagements, or torts, or be subject to any
legal process to levy upon or attach.
	 
	7.6	 	Governing Law.
	 
	 	 	The provisions of the Plan shall be interpreted, construed, and administered in accordance
with the laws of the Commonwealth of Massachusetts.

12

 

	7.7	 	Captions.
	 
	 	 	The captions contained in the Plan are inserted only as a matter of convenience and for
reference and in no way define, limit, enlarge, or describe the scope or intent of the Plan,
nor in any way affect the construction of any provision of the Plan.

13

 

APPENDIX A

PROVISIONS APPLICABLE TO CERTAIN EMPLOYEES OF

WATERS-TA INSTRUMENTS LLC

A-1 

 

INTRODUCTION

The purpose of this Appendix A is to document the terms of the Plan as they apply to certain
employees of Waters-TA Instruments LLC (“TA”). The provisions of this Appendix A shall apply
notwithstanding any other provision of the Plan to the contrary. Except as otherwise provided by
this Appendix A, the terms of the Plan shall apply.

A-2 

 

ARTICLE A1

DEFINITIONS

	 	 	 
	A1.1

	 	“Frozen TA Participant” means a Grandfathered TA Participant (as that
term is defined in the Basic Plan) who was a participant in the Basic
Plan on December 31, 2007 and who ceased to accrue a benefit under
the Basic Plan for Plan Years commencing after December 31, 2007 as a
result of the freeze of the Basic Plan.
	 
	 	 
	A1.2

	 	 “Special TA Participant” means a Protected TA Participant (as that
term is defined in the Basic Plan) who was designated by the
Corporation to be eligible to participate in the Plan pursuant to
Section A2.1(a) and is entitled to a benefit as described in Section
A3.1.
	 
	 	 
	A1.3

	 	“TA” means the TA Instruments division of Waters-TA Instruments LLC
or its successor or successors.
	 
	 	 
	A1.4

	 	“TA Plan” means the TA Instruments, Inc. Employees Pension Plan in
effect as of December 31, 1996.

A-3 

 

ARTICLE A2

ELIGIBILITY

	A2.1	 	 Eligibility

	 	(a)	 	A Protected TA Participant (as that term is defined in the Basic Plan) shall
become a Participant hereunder if he or she is designated as a Participant hereunder by
the Corporation pursuant to a certification signed by the Committee.
	 
	 	(b)	 	A Frozen TA Participant shall be eligible to participate in the Plan effective
January 1, 2008 pursuant to a certification signed by the Committee.

A-4 

 

ARTICLE A3

AMOUNT OF BENEFIT

	A3.1 	 	Special TA Participant Benefits.

	 	 	 	The benefit payable under this Plan to a Special TA Participant shall equal the excess, if
any, of (a) over (b) where:

	 	(a)	 	is the benefit such Participant would have been entitled to under the TA
Instruments Inc. Employees Pension Plan as in effect as of December 31, 1996 had he
continued to actively participate in such plan until the date he terminates employment
with TA and determined as if the provisions of such plan were administered without
regard to the benefit limitations of Code Section 415 and regulations thereunder and,
solely with respect to Pay earned on and after January 1, 1997, the compensation
limitations of Code Section 401(a)(17) and regulations thereunder; and
	 
	 	(b)	 	is the Accrued Benefit which is payable to such Participant under the Basic
Plan.

	A3.2 	 	Frozen TA Participant Benefits.
	 
	  	 	The benefit payable under this Plan to a Frozen TA Participant shall equal the excess, if
any, of (a) over (b) where:

	 	(a)	 	is the Accrued Benefit (as that term is defined under the Basic Plan) which
would have been paid to such Participant under the Basic Plan under the terms of the
Basic Plan as if such terms continued to be in effect after December 31, 2007, if the
provisions of the Basic Plan were administered without regard to the benefit
limitations of Code Section 415 and regulations thereunder and, solely with respect to
Pay earned on and after January 1, 1997, the compensation limitations of Code Section
401(a)(17) and regulations thereunder; and
	 
	 	(b)	 	is the Accrued Benefit which is payable to such Participant under the Basic
Plan.

Notwithstanding any provision of this Plan to the contrary, a Frozen TA Participant shall
only be eligible to receive his benefit from this Plan in the form of a single lump sum
payment and payable as provided in Section 4.3(a).

A-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]