Document:

ex105to10q01196_06302009.htm

    Exhibit 10.5

     

    
      UNITED
CAPITAL CORP.

      

      INDEMNITY
AGREEMENT

      

      

      This
Indemnity Agreement (the “Agreement”) is made as of _____________, by and
between UNITED CAPITAL CORP., a Delaware Corporation (the “Company”), and
__________________, (the “Indemnitee”), a director of the Company.

      

      WHEREAS,
the Indemnitee is currently serving as a director of the Company and in such
capacity renders valuable services to the Company; and

      

      WHEREAS,
the Company has investigated whether additional protective measures are
warranted to adequately protect its officers and directors against various legal
risks and potential liabilities to which such individuals are subject due to
their position with the Company and has concluded that additional protective
measures are warranted; and

      

      WHEREAS,
in order to induce and encourage highly experienced and capable persons such as
the Indemnitee to continue to serve as officers and directors of the Company and
its subsidiaries, the Board of Directors has determined, after due
consideration, that this Agreement is reasonable and prudent and necessary to
promote and ensure the best interests of the Company and its
stockholders;

      

      NOW,
THEREFORE, in consideration of the continued services of the Indemnitee as
provided below, and other good and valuable consideration, the company and the
Indemnitee do hereby agree as follows:

      

      1.      Definitions.    As used in
this Agreement:

      

      (a)       The
term “Proceeding” shall include any threatened, pending or completed action,
suit or proceeding, whether brought in the name of the Company or otherwise and
whether of a civil, criminal or administrative or investigative nature, by
reason of the fact that the Indemnitee is or was a director, officer, employee
or agent of the Company, or is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, whether or not he is serving in such a
capacity at the time any liability or Expense (hereinafter defined) is incurred
for which indemnification or reimbursement is to be provided under this
Agreement.

      

      (b)       The
term “Expenses” shall include, without limitation, legal fees, disbursements and
retainers, accounting and witness fees, travel and deposition costs, expenses of
investigations, judicial or administrative proceedings or appeals, amounts paid
in settlement by or on behalf of Indemnitee, and any expenses of establishing a
right to indemnification, pursuant to this Agreement or otherwise, including
reasonable compensation for time spent by the Indemnitee in connection with the
investigation, defense, appeal or settlement of a Proceeding or any action to
establish a right to indemnification pursuant to this Agreement or otherwise for
which he is not otherwise compensated by any third party even if he is not then
regularly employed by the Company or subsidiary or an affiliate
thereof.  The term “Expenses” does not include the amount of
judgments, fines, penalties or ERISA excise taxes actually levied against the
Indemnitee.

      

      (c)       Discharge
by the Company of Indemnitee’s employment for “cause” shall mean termination
upon (i) the willful and continued failure by Indemnitee to substantially
perform his material duties with the Company (other than any such failure
resulting from incapacity due to physical or mental illness) after a written
demand for substantial performance is delivered to Indemnitee by the Board,
which demand specifically identifies the material duties that the Board believes
that Indemnitee has not substantially performed, or (ii) the willful or grossly
negligent engaging by Indemnitee in conduct that is materially injurious to the
Company, monetarily or otherwise, or that involves fraud or dishonesty by the
Indemnitee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      2.      Agreement to
Serve.     The Indemnitee agrees to continue to
serve as a director of the Company at the will of the Company for so long as
Indemnitee is duly elected or appointed or until such time as Indemnitee tenders
a resignation in writing.

      

      3.      Indemnification in Third
Party Actions.     The Company shall indemnify
the Indemnitee in accordance with the provisions of this section if the
Indemnitee is a party to or threatened to be made a party to or otherwise
involved in any Proceeding (other than a Proceeding by or in the name of the
Company to procure a judgment in its favor), by reason of the fact that the
Indemnitee is or was a director, officer, employee or agent of the Company, or
is or was serving at the request of the Company as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other
enterprise, against all Expenses actually and reasonably incurred by the
Indemnitee in connection with the defense or settlement of such Proceeding and
judgments, fines, penalties and ERISA excise taxes (including all interest,
assessments and other charges paid or payable in respect thereto) actually
levied against the Indemnitee, to the fullest extent permitted by Delaware law;
provided that any settlement shall be approved in writing by the
Company.  Notwithstanding the foregoing, any and all obligations of
the Company to indemnify the Indemnitee in accordance with the provisions of
this section shall cease upon the discharge from employment, for cause, of the
Indemnitee by the Company.

      

      4.      Indemnification in
Proceedings by or in the Name of the Company.  The Company
shall indemnify the Indemnitee in accordance with the provisions of this section
if the Indemnitee is a party to or threatened to be made a party to or otherwise
involved in any Proceeding by or in the name of the Company to procure a
judgment in its favor by reason of the fact that Indemnitee was or is a
director, officer, employee or agent of the Company, or is or was serving at the
request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against all
Expenses actually and reasonably incurred by Indemnitee in connection with the
defense or settlement of such proceeding, to the fullest extent permitted by
Delaware law.  Notwithstanding the foregoing, any and all obligations
of the Company to indemnify the Indemnitee in accordance with the provisions of
this section shall cease upon the discharge from employment, for cause, of the
Indemnitee by the Company.

      

      5.      Conclusive Presumption
Regarding Standard of
Conduct.       If a determination is
required to be made as to compliance by the Indemnitee with the relevant
standards of conduct as defined by Delaware law for indemnification pursuant to
this Agreement or concerning the rights of the Indemnitee to payments for
indemnification and advancement of Expenses under this Agreement or any other
agreement or Company By-Law now or hereafter in effect relating to claims for
indemnification, the Company shall seek the written opinion of independent
counsel as to whether and to what extent the Indemnitee would be permitted to be
indemnified under applicable law, and the Company shall indemnify the Indemnitee
to the full extent set forth herein to the extent permitted in such written
opinion.  Such counsel shall be selected by the Company and approved
by the Indemnitee (which approval shall not be unreasonably
withheld).  The Company agrees to pay the fees and disbursements of
such counsel referred to above.

      

      6.      Indemnification of Expenses
of Successful Party.     Any other provisions of
this Agreement to the contrary notwithstanding, to the extent that the
Indemnitee has been successful in defense of any Proceeding or in defense of any
claim, issue or matter therein, on the merits or otherwise, including, without
limitation, the dismissal of a Proceeding without prejudice, the Indemnitee
shall be indemnified against all Expenses actually and reasonably incurred in
connection therewith to the fullest extent permitted by Delaware
law.

      

      7.      Advances of
Expenses.     The Expenses incurred by the
Indemnitee in any Proceeding shall, at the written request of the Indemnitee, be
paid in full by the Company in advance of the final disposition of the
Proceeding, and on no less than a bi-monthly basis, upon submission in each
instance of documentation of such Expenses actually and reasonably incurred by
the Indemnitee and not previously paid by the Company; provided that if Delaware
law in effect at the time so requires, the Indemnitee shall undertake in writing
to repay all such amounts to the extent  that it is ultimately
determined that the Indemnitee is not entitled to indemnification.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      8.      Partial
Indemnification.     If the Indemnitee is
entitled under any provision of this Agreement to indemnification by the Company
for some or a portion of the Expenses, actually and reasonably incurred by
Indemnitee in the investigation, defense, appeal or settlement of any Proceeding
or for some or a portion of judgments, fines, penalties or ERISA excise taxes
actually levied against the Indemnitee, but not, however, for the total amount
thereof, the Company shall nevertheless indemnify the Indemnitee for the portion
of such Expenses, judgments, fines, penalties or ERISA excise taxes to which the
Indemnitee is entitled.

      

      9.      Indemnification Procedure;
Determination of Right to Indemnification.

      

      (a)       Promptly
after receipt by the Indemnitee of notice of the commencement of any Proceeding,
the Indemnitee shall, if a claim in respect thereof is to be made against the
Company under this Agreement, notify the Company of the commencement
thereof.  The omission so to notify the Company shall not relieve it
from any liability that it may have to the Indemnitee (i) hereunder unless, and
then only to the extent that, the Company has been prejudiced by such omission,
or (ii) otherwise than under this Agreement.

      

      (b)       If
a claim for Expenses properly made under this Agreement is not paid by the
Company within 30 days of receipt of written notice, the right to
indemnification as provided by this Agreement shall be enforceable by the
Indemnitee in any court of competent jurisdiction.  It shall be
defense to any such action (other than an action brought to enforce a claim for
Expenses incurred in defending any Proceeding in advance of its final
disposition where the required undertaking, if any is required, has been
tendered to the Company, unless the Company is acting under advice of counsel
pursuant to Section 5 hereof) that the Indemnitee has failed to meet a standard
of conduct that makes it permissible under Delaware law for the Company to
indemnify the Indemnitee for the amount claimed.  The burden of
proving that indemnification is not appropriate shall be on the
Company.  Neither the failure to have made a determination prior to
the commencement of such action that indemnification or advances met the
applicable standard of conduct, nor an actual determination that the Indemnitee
has not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that the Indemnitee has not met the applicable
standard of conduct.

      

      (c)       The
Indemnitee’s Expenses incurred in connection with any action concerning the
Indemnitee’s right to Indemnification or advances in whole or in part pursuant
to this Agreement shall also be indemnified by the Company regardless of the
outcome of such action, unless the underlying claim as to a right of
indemnification was not made in good faith or was frivolous.

      

      (d)       With
respect to any proceeding for which indemnification is requested, the Company
will be entitled to participate therein at its own expense and, except as
otherwise provided below, to the extent that it may wish, the Company may assume
the defense thereof, with counsel reasonably satisfactory to the
Indemnitee.  After notice from the Company to the Indemnitee of its
election to assume the defense of a Proceeding, the Company will not be liable
to the Indemnitee under this Agreement for any legal or other Expenses
subsequently incurred by the Indemnitee without the prior written consent of the
Company in connection with the defense thereof other than as provided
below.  The Company shall not settle any Proceeding in any manner that
would impose any penalty or limitation on the Indemnitee without the
Indemnitee’s written consent.  The Indemnitee shall have the right to
employ counsel in any proceeding, but the fees and expenses of such counsel
incurred after notice from the Company of its assumption of the defense thereof
shall be at the expense of the Indemnitee, unless (i) the employment of counsel
by the Indemnitee has been authorized by the Company, (ii) the Indemnitee shall
have reasonably concluded, based on written advice of counsel, that there are
conflicting legal defenses between the Company and the Indemnitee in the conduct
of the defense of a Proceeding, or (iii) the Company shall not in fact have
employed counsel to assume the defense of a Proceeding, in each of which cases
the fees and expenses of the Indemnitee’s counsel shall be at the expense of the
Company and shall be payable as provided in and subject to Section 7
hereof.  The Company shall not be entitled to assume the defense of
any Proceeding brought by or on behalf of the Company or as to which the
Indemnitee has made a reasonable conclusion, based on written advice of counsel,
that there are conflicting legal defenses between the Company and the
Indemnitee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      10.           Limitations on
Indemnification.     No payments pursuant to
this Agreement shall be made by the Company:

      

      (a)       To
indemnify or advance Expenses to the Indemnitee with respect to Proceedings
initiated or brought voluntarily by the Indemnitee and not by way of defense,
except with respect to Proceedings brought to establish or enforce a right to
indemnification under this Agreement or any other statue or law or otherwise as
required under Delaware law, but such indemnification or advancement of Expenses
may be provided by the Company in specific cases if a majority of the Board of
Directors finds it to be appropriate;

      

      (b)       To
indemnify the Indemnitee for any Expenses, judgments, fines, penalties or ERISA
excise taxes for which payment is actually made to the Indemnitee under a valid
and collectible insurance policy, except in respect of any excess beyond the
actual amount of payment under such insurance;

      

      (c)       To
indemnify the Indemnitee for any Expenses, judgments, fines or penalties
sustained in any Proceeding for an accounting of profits made from the purchase
or sale by Indemnitee of securities of the Company pursuant to the provisions of
Section 16 (b) of the Securities Exchange Act of 1934 (the “Exchange Act”), the
rules and regulations promulgated thereunder and amendments thereto or similar
provisions of any federal, state or local statutory law; or

      

      (d)       If
a court of competent jurisdiction shall finally determine that any
indemnification hereunder is unlawful, from which determination all rights of
appeal have been exhausted or lapsed.

      

      11.           Limitation of Actions and
Release of Claims.     No proceeding shall be
brought and no cause of action shall be asserted by or on behalf of the Company
or any subsidiary against the Indemnitee, Indemnitee’s spouse, heirs, estate
executors or administrators after the expiration of two years from the act or
omission of the Indemnitee upon which such Proceeding is based; however, in a
case where Indemnitee fraudulently conceals the facts underlying such cause
of  action, no Proceeding shall be brought and no cause of action
shall be asserted after the expiration of two years from the earlier of (i) the
date the Company or any subsidiary of the Company discovers such facts, or (ii)
the date the Company or any subsidiary of the Company could have discovered such
facts by the exercise of reasonable diligence.  Any claim or cause of
action of the Company or any subsidiary of the Company including claims
predicted upon the negligent act or omission of the Indemnitee, shall be
extinguished and deemed released unless asserted by filing of a legal action
within such period.  This section shall not apply to any cause of
action that has accrued on the date hereof and of which the Company has no
actual knowledge apart from the Indemnitee’s knowledge.

      

      12.           No
Presumption.     For purposes of this Agreement,
the termination of any claim, action, suit or proceeding, by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a
plea of nolo contendere, or its equivalent, shall not create a presumption that
the Indemnitee did not meet any particular standard of conduct or have any
particular belief or that a court has determined that indemnification is not
permitted by applicable law.

      

      13.           Indemnification Hereunder
Not Exclusive.     The indemnification provided
by this Agreement shall not be deemed to limit or preclude any other rights to
which the Indemnitee may be entitled under the Certificate of Incorporation, the
By-Laws, any agreement, any vote of stockholders or of disinterested directors,
Delaware Law, or otherwise, both as to action in Indemnitee’s official capacity
and as to action in another capacity on behalf of the Company while holding such
office.  To the extent that a change in the Delaware General
Corporation Law (whether by statue or judicial decision) permits greater
indemnification by agreements than would be afforded under the By-Laws or this
Agreement, as then in effect, it is the intent of the parties hereto that the
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
such change.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      14.           Successors and
Assigns.     This Agreement shall be binding
upon, and shall inure to the benefit of the Indemnitee and Indemnitee’s heirs,
personal representatives and assigns, and the Company and its successors and
assigns.

      

      15.           Separability.     Each
provision of this Agreement is a separate and distinct agreement and independent
of the others, so that if any provision hereof shall be held to be invalid or
unenforceable for any reason, such invalidity or unenforceability shall not
affect the validity or enforceability of the other provisions
hereof.  To the extend required, any provision of this Agreement may
be modified by a court of competent jurisdiction to preserve its validity and to
provide the Indemnitee with the broadest possible indemnification permitted
under Delaware law.

      

      16.           Savings
Clause.     In the event this Agreement or any
portion thereof is invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify Indemnitee as to
expenses, judgments, fines, penalties or ERISA excise taxes with respect to any
Proceeding to the full extent permitted by any applicable portion of this
Agreement that shall not have been invalidated or by any applicable provision of
the law of Delaware or the law of any other jurisdiction.

      

      17.           Interpretation; Governing
Law.     This Agreement shall be construed as a
whole and in accordance with its fair meaning.  Headings are for
convenience only and shall not be used in construing meaning.  This
Agreement shall be governed and interpreted in accordance with the laws of the
State of Delaware governing contracts executed and performed in
Delaware.

      

      18.           Amendments.     No
amendment, waiver, modification, termination or cancellation of this Agreement
shall be effective unless in writing signed by the party against whom
enforcement is sought.  The indemnification rights afforded to the
Indemnitee hereby are contract rights and may not be diminished, eliminated or
otherwise affected by amendments to the Company’s Certificate of Incorporation,
By-Laws or other agreements including directors’ and officers’ liability
insurance policies.

      

      19.           Counterparts.     This
Agreement may be executed in counterparts, all of which shall be considered one
and the same agreement and shall become effective when signed by or on behalf of
each party and delivered to the other.

      

      20.           Notices.     Any
notice required to be given under this Agreement shall be directed to the
Company at
______________________________________________________________________, with a
copy to ______________________________________________________________________,
and to the Indemnitee at ___________________________________________________, or
to such other address as either shall designate in writing.

      

      21.           Subject
Matter.     The intended purpose of this
Agreement is to provide for indemnification, and this Agreement is not intended
to affect any other aspect of any relationship between Indemnitee and
Company.

      

      IN
WITNESS WHEREOF, the Indemnitee has executed this Agreement and the Company has
caused this Agreement to be executed by its duly authorized officer as of the
date first written above.

      

      
        
          	
                  INDEMNITEE

                
	 
      
	 
      
	
                  Name:

                
	 
      
	 
      
	
                  UNITED
      CAPITAL CORP.

                
	 
      
	 
      
	
                  By:ex106to10q01196_06302009.htm

    Exhibit 10.6

     

    
      METAL
TEXTILES CORPORATION

      SUPPLEMENTAL
RETIREMENT AND DEATH BENEFIT PROGRAM

      (As
Amended and Restated)

      

      ARTICLE
I

      Purposes

      

      The
purposes of this Program are to enable Metal Textiles, by providing benefits
from executives which supplement existing employee security benefits, (a) to
retain in its employ personnel serving in Executive Positions and personnel in
lesser positions who hold promise for promotion to Executive Positions; and (b)
to enable Metal Textiles to attract to its employ persons of outstanding ability
to fill future vacancies in Executive Positions.

      

      ARTICLE
II

      Definitions

      

      The terms
used in this Program shall have the following meanings:

      

      2.1           “Board”
means the Board of Directors of Metal Textiles Corporation.

      

      2.2           “Designated
Beneficiary” means the person (which may be a Participant’s estate or a trust
created by the Participant) designated by a Participant to receive the
Supplemental Death Benefit or the balance of the Supplemental Retirement Benefit
payable after the Participant’s death in accordance with the provisions of this
Program.  The term “Designated Beneficiary” includes the estate of a
Participant in the event of the Participant shall have failed to designate a
beneficiary under this Program during his lifetime or in the event no such
beneficiary shall have survived the Participant

      

      2.3           “Early
Retirement” means Retirement at age 55 or thereafter prior to attaining age
65.

      

      2.4           “Employee”
means any person employed by Metal Textiles on a full-time permanent
basis.

      

      2.5           “Executive
Positions” means those employment positions presently classified by Metal
Textiles as Grade 10-15, inclusive, provided, however, nothing contained in this
Program shall be construed as preventing or limiting Metal Textiles or the
Board, for the purpose of this Program or otherwise, from modifying, eliminating
or establishing different employment classifications.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      2.6           “Insurer”
means the insurance company authorized by the Board from time to time to provide
funds to Metal Textiles to pay all or any portion of the benefits provided under
this Program.

      

      2.7           “Metal
Textiles” means Metal Textiles Corporation, a New York corporation, and those
subsidiaries of Metal Textiles Corporation, whether presently existing or
hereafter formed or acquired, which the Board shall determine to include in this
Program.

      

      2.8           “Normal
Retirement” means Retirement at age 65 or thereafter and includes “deferred
retirement” as such term is used in the Metal Textiles Corporation Employees’
Retirement Plan as presently constituted or as it may be amended
hereafter.

      

      2.9           “Participant”
means any Employee who meets the eligibility and insurability requirements
specified in Article III of this Program.

      

      2.10           “Program”
means the Metal Textiles Corporation Supplemental Retirement and Death Benefit
Program as presently constituted or as it may be modified or amended by the
Board hereafter.

      

      2.11           “Retirement”
means the retirement of a Participant from active service with Metal Textiles in
the manner contemplated by the Metal Textiles Corporation Employees’ Retirement
Plan as presently constituted or as it may be amended hereafter, but is not a
termination of employment as set forth in the exception in the first sentence of
Section 4.2 of such Retirement Plan.

      

      2.12           “Supplemental
Death Benefit,” “Supplemental Retirement Benefit,” “Supplemental Normal
Retirement Benefit,” “Supplemental Early Retirement Benefit,” “Full Supplemental
Early Retirement Benefit” and “Reduced Supplemental Early Retirement Benefit”
shall have the meanings assigned to such terms in Articles IV and V,
respectively.

      

      2.13           “Year
of Service” means 12 months of continuous full-time permanent employment by
Metal Textiles.  In computing Years of Service for the purpose of this
Program, all periods of full-time permanent employment shall be included,
whether rendered before or after the effective date of this
Program.  Leaves of absence which have been approved by an authorized
representative of Metal Textiles shall not be considered a break in continuity
of service in computing Years of Service.

      

      ARTICLE
III

      Eligibility

      

      Employees
who meet the following conditions are eligible to participate in this
Program:

       

      a)           Completion
of two Years of Service.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      b)           Hold
an Executive Position and be less than age 55 at either the effective date of
this Program or on the anniversary of the Employee’s second Year of Service
after the effective date of this Program.

       

      c)           At
such time as an Employee meets the conditions specified in subparagraphs (a) and
(b) — i.e., at either the effective date of this Program or the anniversary of
his second Year of Service after such effective date, as applicable — be
certified to Metal Textiles by the Insurer as “insurable” at standard premium
rates at the time in effect for persons of the particular Employee’s then
age.  If the particular Employee is certified as being “insurable”
only on a “rated” basis, the Employee may participate in the Program only on
such basis as the Board shall determine and any benefits so made available to
such “rated” Employee shall be in lieu of the benefits specified in Articles IV
and V of this Program.

      

      ARTICLE
IV

      Supplemental Death
Benefit

      

      Section
4.1.                      Circumstances of
Death:      In the event a Participant shall die
while in the service of Metal Textiles or after Retirement but prior to the time
when any payment on account of the Supplemental Retirement Benefit shall have
been made, Metal Textiles will pay to the Designated Beneficiaries of the
Participant, a Supplemental Death Benefit in the amount and at the times
specified in Section 4.3.  The Supplemental Death Benefit is in
addition to any insurance that may be payable to the Participant’s Designated
Beneficiaries under the Metal Textiles Corporation Group Insurance
Plan.

      

      Section
4.2.                      Benefit Amounts and Number
of Installments:     The total and installment
amounts of the Supplemental Death Benefit based on the Executive Position held
by a Participant at the date of his death and the number of installment payments
are set forth in the following table; provided, however, if the Participant dies
on or after his 55th
birthday, his beneficiary or his estate will receive only the amount of
Supplemental Death Benefit the Participant was eligible to receive on his
55th
birthday:

      

      
        
          	
                  Executive

                  Position

                	 
      	
                  Total

                  Amount

                	 
      	
                  Amount
      of

                  Each Installment

                	 
      	
                  Number
      of Installments

                

        

        
          
            	
                    Grade
      10

                  	 
      	
                    $50,000

                  	 
      	
                    $10,000

                  	 
      	
                    5

                  
	
                    Grade
      11

                  	 
      	
                    75,000

                  	 
      	
                    10,000

                  	*	
                      
      7*

                  
	
                    Grade
      12

                  	 
      	
                    100,000

                  	 
      	
                    10,000

                  	 
      	
                    10

                  
	
                    Grade
      13

                  	 
      	
                    150,000

                  	 
      	
                    15,000

                  	 
      	
                    10

                  
	
                    Grade
      14

                  	 
      	
                    200,000

                  	 
      	
                    20,000

                  	 
      	
                    10

                  
	
                    Grade
      15

                  	 
      	
                    250,000

                  	 
      	
                    25,000

                  	 
      	
                    10

                  

          

        

      

       

      * Final
installment (8th
installment) will be in the amount of $5,000.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Section
4.3.                      Timing of
Installments:      The Supplemental Death
Benefit will be payable in the number of installments for each Executive
Position set forth in the table under the caption “Number of Installments” set
forth in Section 4.2.  The first installment will be payable 60 days
after Metal Textiles receives notice of a Participant’s death, except if the
Supplemental Death Benefit is payable to the Participant’s estate or the trustee
of a testamentary trust under the Participant’s will, the first installment will
be payable 30 days after Metal Textiles receives notice of the appointment of
the representative of the Participant’s estate or the testamentary trustee, as
applicable.  Thereafter, each installment will be paid on the
anniversary date of the participant’s death until the Supplemental Death Benefit
has been fully paid.  See Schedule 4.3 attached to and forming part of
this Program for the schedule of installment payments.

      

      ARTICLE
V

      Supplemental Retirement
Benefits

      

      Section
5.1.                      Normal Retirement:
     Upon the Normal Retirement of a Participant, a
Supplemental Normal Retirement Benefit equal to 75% of the total amount of the
Supplemental Death Benefit for the Participant at the date of his Retirement is
payable to the Participant in 40 equal consecutive quarterly installments, commencing on the first day
of the first calendar quarter after the date of Retirement, except if the
Participant retires in the last month of a calendar quarter, the first
installment will be paid on the first day of the second calendar month after the
date of Retirement.  For example, if a Participant retired on January
31, the first installment would be payable on the following April 1, but
Retirement on March 15 would result in the first installment being payable on
the following May 1.  For Participants certified as being “insurable”,
the following table sets forth the respective amounts of quarterly installments
based on Executive Positions:

      
        
          
            	
                    Grade

                  	 
      	
                    Amount
      of

                    Quarterly

                    Installment

                  

            
              
                	
                        10

                      	 
      	
                        $   937.50

                      	 
	
                        11

                      	 
      	
                        1,406.25

                      	 
	
                        12

                      	 
      	
                        1,875.00

                      	 
	
                        13

                      	 
      	
                        2,812.50

                      	 
	
                        14

                      	 
      	
                        3,750.00

                      	 
	
                        15

                      	 
      	
                        4,687.50

                      	 

              

            

          

        

      

      

      Notwithstanding
the foregoing, the total amount of Supplemental Normal Retirement Benefit that a
participant shall be entitled to receive may never exceed the total amount of
Supplemental Normal Retirement Benefit the Participant was eligible to receive
on his 55th
birthday.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Section
5.2.                      Early
Retirement:

      

      a)           Full Supplemental Early
Retirement Benefit:     Upon the Early
Retirement of a Participant, a Full Supplemental Early Retirement Benefit equal
to the product of the following formula will be payable to the Participant
commencing after the Participant’s 65th
birthday in the number of installments and in accordance with the payment
schedule set forth in Section 5.1 to a Participant having at least 10 Years of
Service and 5 continuous years of participation in the Program (an approved
leave of absence shall not be deemed a break in continuity of participation and
shall be included in computing years of participation):

       

      
        
          
            
              	
                      Values

                    
	 
      	
                      A  =
      Amount of Participant’s Supplemental Normal Retirement
    Benefit

                    
	 
      	
                      B  =
      Participant’s actual number of Years of Service.*

                    
	 
      	
                      C  =
      Number of Years of Service assuming Participant’s Retirement at age
      65.*

                    
	 
      	
                      X  =
      Amount of Supplemental Early Retirement Benefit.

                    
	 
      	
                      *
      Rounded to the nearest whole year.

                    
	
                      Formula

                    
	
                      A x
      B / C = X

                    

            

          

        

         

      

      b)           Reduced Supplemental Early
Retirement Benefit:     Notwithstanding the
provisions of Section 5.2 (a), a Participant in his application for Early
Retirement may elect to receive a Reduced Supplemental Early Retirement Benefit
which shall be payable commencing on the first day of the first calendar quarter
after the date of Early Retirement, except if the date of Early Retirement is in
the last month of a calendar quarter, installment payments will commence on the
first day of the second calendar month after the date of Early
Retirement.  The total amount of the Reduced Supplemental Early
Retirement Benefit shall be calculated by subtracting from (A) the total amount
of the Full Supplemental Early Retirement Benefit for such Participant
[calculated as provided in Section 5.2 (a)], (B) the product of the following
multiplications:

      

      (.005 x
Total Amount of Participant’s Full Supplemental Early Retirement Benefit) x
Number of Calendar Months Early Retirement Date Precedes Participant’s 65th
Birthday.

      

      For the
purpose of calculating the number of months in the above formula, the month in
which the participant’s 65th
birthday occurs shall not be counted and the month in which the date of Early
Retirement occurs shall be counted.

      

      c)           Number of
Installments:     Each Supplemental Early
Retirement Benefit will be payable in 40 equal consecutive quarterly
installment.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Section
5.3.                      Early Retirement
Application:      No Supplemental Early
Retirement Benefit shall be paid unless a Participant shall have completed an
application for the payment of such Benefit, in the form prescribed by Metal
Textiles, and such application shall have been submitted to and approved by the
Executive Committee of the Board.

      

      Section
5.4.                      Post-Retirement
Death:      In the event of a Participants death
after Retirement and the making of a payment on account of his Supplemental
Retirement Benefit but prior to the payment of all installments of such
Supplemental Retirement Benefit, the remaining installments will be paid to the
Participant’s Designated Beneficiaries, in Accordance with the installments
payment schedule set forth in Section 5.1.

      

      ARTICLE
VI

      Additional Conditions to
Payment of Benefits

      

      Section
6.1.                      Additional
Conditions:      In addition to the conditions
to the payment of Benefits set forth in Articles IV and V, the payment of a
benefit to a Participant or the Designated Beneficiary of a Participant under
this Program shall be made only if all of the following conditions, to the
extent applicable to the particular case, are fully satisfied at the time a
benefit installment is payable:

      

      a)           The
Participant’s employment shall not have been terminated, except by
Retirement.  An approved leave of absence, as specified in the
definition of “Year of Service” in Article II, shall not be deemed a termination
of employment for this purpose.

      

      b)           The
Participant shall not have engaged in any of the following conduct: (i)
engagement before or after Retirement, directly or indirectly, in the operation
or management of any business, whether as an officer, director, partner,
proprietor, employee or consultant, which, in the sole judgment of the Board, is
detrimental to or in competition with Metal Textiles; or (i) disclosure to an
unauthorized person of any confidential information or knowledge as to the
business affairs of Metal Textiles which the Participant received during the
time of his employment by Metal Textiles; or (iii) engagement in other conduct,
which in the sole judgment of the Board, is contrary to the best interests of
Metal Textiles.

      

      Section
6.2.                      Termination of
Rights:      In the event that any of the
conditions to payment set forth in Articles IV and V and in Section 6.1 shall
not be fully satisfied at the time that any benefit installment is to be paid to
a particular Participant or his Designated Beneficiary, or if the Participant
violates any of the conditions specified in Section  6.1 (b), then all
benefits standing to the Participant’s credit at such time shall lapse and be
credited to the general funds of Metal Textiles, and neither the Participant nor
any of his Designated Beneficiaries or legal representatives shall thereafter
have any rights under this Program.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Section
6.3.                      Benefits Conditioned on
Insurance:      Inasmuch as the source of funds
for the payment of the benefits to be provided under this Program is to be
through insurance maintained by and payable to Metal Textiles, Metal Textiles
shall have no liability to pay any benefit if for any reason Metal Textiles is
not able to collect from the Insurer the amount necessary to fund the payment of
such benefit, including as the result of the termination of this Program
pursuant to Section 7.2.

      

      ARTICLE
VII

      Miscellaneous

      

      Section
7.1.                      Administration and
Interpretation:      Full power and authority to
construe, interprete and administer this Program is vested in the Board and its
decision shall be final, conclusive and binding upon all parties.  The
place of administration of this Program shall be conclusively deemed to be
within the State of New Jersey and the validity, construction, interpretation
and administration and effect of the Program and the rights of any and all
personnel having or claiming to have an interest therein or thereunder shall be
governed by and determined exclusively and solely in accordance with the laws of
the State of New Jersey.  Nothing contained in this Program and no
action taken by the Board pursuant to its provisions shall create or be
construed to create a trust of any kind, or a fiduciary relationship between
Metal Textiles or the Board, or either of them, and any Employee, Designated
beneficiary or other person.

      

      Section
7.2.                      Amendment or Termination of
Plan:      While Metal Textiles hopes to
continue this Program indefinitely, it reserves the right in the Board to amend,
modify, supplement, suspend or terminate this Program at any
time.  Accordingly, no Employee or any person claiming under or
through an Employee shall have any vested right or interest in this Program or
in any benefit provided hereunder or in any specific asset of Metal Textiles,
except to the extent that, after suspension or termination of the Program, (i)
Metal Textiles actually collects from the Insurer the money necessary to fund
the payment of any benefit which would have been paid upon the death or
retirement of a Participant but for such suspension or termination and (ii) all
conditions established by the Program for the payment of such benefit have then
been satisfied (other than conditions relating to Years of Service or years of
participation in the Program which must be satisfied prior to such suspension or
termination).

      

      Section
7.3.                      Designation of
Beneficiary:      A Participant may designate a
Designated Beneficiary or change such Beneficiary (without the consent of any
prior Designated Beneficiary) on a form provided by Metal Textiles and delivered
to it prior to the Participant’s death.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Section
7.4.                      Limitation on
Liability:      No member of the Board shall be
liable with respect to this Program for any act, whether of commission or
omission, taken by any other member of the Board or by any officer, agent or
employee of Metal Textiles, nor, except in circumstances involving his own bad
faith, for anything done or omitted by himself.

      

      Section
7.5.                      Expenses of
Administration:      All expenses of the
administration of this Program shall be borne by Metal Textiles.

      

      Section
7.6.                      Nontransferability:
     The right of a Participant or any other person to
the payment of any benefit hereunder shall not be assigned, transferred, pledged
or encumbered and shall not be subject to execution, attachment or similar
process.  Any attempted assignment, transfer, pledge or encumbrance or
other disposition of such right, contrary to the foregoing provisions, or the
levy of any attachment or similar process thereon, shall be null and void and
without effect.

      

      Section
7.7.                      Effective Date:
     This Program shall become effective on such date
as it shall be declared effective by the Board.

      

      1997
AMENDMENT

       

      Effective
January 1, 1977, the Program is hereby terminated.  All Participants
as of the January 1, 1977 will continue to be eligible for benefits in
accordance with their employment status at such date, including those
participants not fully vested at such time.  Subsequent changes in a
Participant’s employment status will be in accordance with the provisions of the
Program, however, in no event will such benefits be increased from those
determined as of January 1, 1977.  Should a Participant fail to meet
the eligibility requirement of the Program at a later date, the Participant will
be eliminated from the Program in accordance with current
provisions.  All other provisions of the Program will remain as
currently provided.

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