Document:

Wolverine World Wide Exhibit 10.16 to Form 10-K - 02/28/07

EXHIBIT 10.16

WOLVERINE WORLD WIDE, INC.

409A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

EFFECTIVE FOR BENEFITS ACCRUED

BEGINNING JANUARY 1, 2005

TABLE OF CONTENTS

	
 
	
Page

	
 
	
 

	
ARTICLE 1 - Establishment of Plan
	
1

	
 
	
 

	
 
	
1.1
	
Establishment of Plan
	
1

	
 
	
 
	
(a)
	
ERISA Limited Applicability
	
1

	
 
	
 
	
(b)
	
Tax Status
	
1

	
 
	
 
	
(c)
	
Continuation
	
1

	
 
	
1.2
	
Rabbi Trust
	
1

	
 
	
1.3
	
Effective Date
	
1

	
 
	
 

	
ARTICLE 2 - Definitions
	
1

	
 
	
 

	
 
	
2.1
	
Employee
	
1

	
 
	
2.2
	
Employer; Company
	
1

	
 
	
2.3
	
Key Employee
	
1

	
 
	
 
	
(a)
	
Officer
	
1

	
 
	
 
	
(b)
	
5% Owner
	
1

	
 
	
 
	
(c)
	
1% Owner; $150,000 Compensation
	
1

	
 
	
2.4
	
Pension Plan
	
1

	
 
	
2.5
	
Plan Year
	
1

	
 
	
2.6
	
Present Value
	
2

	
 
	
2.7
	
Spouse/Married
	
2

	
 
	
2.8
	
Surviving Spouse
	
2

	
 
	
2.9
	
Termination of Employment
	
2

	
 
	
 
	
(a)
	
Period of Leave
	
2

	
 
	
 
	
(b)
	
Insignificant Services
	
2

	
 
	
 

	
ARTICLE 3 - Participant
	
1

	
 
	
 

	
 
	
3.1
	
Designation as Participant
	
1

	
 
	
3.2
	
Inactive Participant Status
	
1

	
 
	
 

	
ARTICLE 4 - Contributions/Funding
	
1

	
 
	
 

	
 
	
4.1
	
Amount
	
1

	
 
	
4.2
	
No Relationship to Benefits
	
1

	
 
	
4.3
	
Unfunded Plan
	
1

	
 
	
4.4
	
Unsecured Creditor Status
	
1

	
 
	
 

	
ARTICLE 5 - Amount of Benefits
	
1

	
 
	
 

	
 
	
5.1
	
Retirement Benefits
	
1

	
 
	
 
	
(a)
	
Annual Benefit
	
1

	
 
	
 
	
(b)
	
Before Age 65
	
2

	
 
	
 
	
(c)
	
Annual Pension Benefit
	
2

	
 
	
5.2
	
Death
	
2

	
 
	
 
	
(a)
	
Before Commencement of Benefits
	
2

	
 
	
 
	
(b)
	
After Retiring
	
2

-i-

	
 
	
5.3
	
Disability
	
3

	
 
	
 
	
(a)
	
Disabled Defined
	
3

	
 
	
 
	
(b)
	
Benefit if Participant Becomes Disabled Before Retiring
	
3

	
 
	
5.4
	
Minimum Benefit
	
3

	
 
	
 
	
(a)
	
Difference - Additional Benefit
	
3

	
 
	
 
	
(b)
	
Determinations
	
4

	
 
	
 

	
ARTICLE 6 - Forfeiture
	
1

	
 
	
 

	
 
	
6.1
	
Misconduct
	
1

	
 
	
6.2
	
Competitive Activity
	
1

	
 
	
6.3
	
Insurance Related
	
1

	
 
	
 

	
ARTICLE 7 - Payment of Benefits
	
1

	
 
	
 

	
 
	
7.1
	
Event of Distribution
	
1

	
 
	
7.2
	
Time of Payment
	
1

	
 
	
 
	
(a)
	
Retirement
	
1

	
 
	
 
	
(b)
	
Death or Disability
	
1

	
 
	
 
	
(c)
	
Lump Sum
	
1

	
 
	
 
	
(d)
	
Key Employee Postponement
	
1

	
 
	
7.3
	
Calculation
	
1

	
 
	
7.4
	
Form of Payment
	
2

	
 
	
 
	
(a)
	
Presumed Method
	
2

	
 
	
 
	
(b)
	
Optional Methods
	
2

	
 
	
 
	
(c)
	
Lump Sum
	
2

	
 
	
 
	
(d)
	
Key Employee Make Up Payment
	
2

	
 
	
7.5
	
Elective Postponement of Payments
	
2

	
 
	
 
	
(a)
	
Earliest Effective Date
	
2

	
 
	
 
	
(b)
	
Five Year Minimum
	
3

	
 
	
 
	
(c)
	
Twelve Months Prior
	
3

	
 
	
7.6
	
Acceleration of Payments
	
3

	
 
	
 
	
(a)
	
Unforeseeable Emergency
	
3

	
 
	
 
	
(b)
	
409A Income Inclusion
	
3

	
 
	
 
	
(c)
	
Plan Termination
	
3

	
 
	
7.7
	
Payment of Death Benefits
	
3

	
 
	
 
	
(a)
	
Spouse
	
3

	
 
	
 
	
(b)
	
Payment to Beneficiary
	
3

	
 
	
 
	
(c)
	
Beneficiary
	
4

	
 
	
 
	
(d)
	
Payment to Estate
	
4

	
 
	
 
	
(e)
	
Withholding Taxes
	
4

	
 
	
 
	
(f)
	
Generation-Skipping Transfer Tax
	
4

	
 
	
7.8
	
QDRO
	
4

	
 
	
 
	
(a)
	
Alternate Payee
	
4

	
 
	
 
	
(b)
	
Reason for Payments
	
4

	
 
	
 
	
(c)
	
Contents
	
5

	
 
	
 
	
(d)
	
Restrictions
	
5

	
 
	
 

-ii-

	
ARTICLE 8 - Administration
	
1

	
 
	
 

	
 
	
8.1
	
Duties, Powers, and Responsibilities of the Employer
	
1

	
 
	
 
	
(a)
	
Required
	
1

	
 
	
 
	
(b)
	
Discretionary
	
1

	
 
	
8.2
	
Employer Action
	
1

	
 
	
8.3
	
Plan Administrator
	
2

	
 
	
8.4
	
Duties, Powers, and Responsibilities of the Administrator
	
2

	
 
	
 
	
(a)
	
Plan Interpretation
	
2

	
 
	
 
	
(b)
	
Participant Rights
	
2

	
 
	
 
	
(c)
	
Claims and Elections
	
2

	
 
	
 
	
(d)
	
Benefit Payments
	
2

	
 
	
 
	
(e)
	
QDRO Determination
	
2

	
 
	
 
	
(f)
	
Administrative Information
	
2

	
 
	
 
	
(g)
	
Recordkeeping
	
2

	
 
	
 
	
(h)
	
Reporting and Disclosure
	
2

	
 
	
 
	
(i)
	
Advisers
	
2

	
 
	
 
	
(j)
	
Other Powers and Duties
	
3

	
 
	
8.5
	
Claims Procedure
	
3

	
 
	
 
	
(a)
	
Initial Determination
	
3

	
 
	
 
	
(b)
	
Method
	
3

	
 
	
 
	
(c)
	
Further Review
	
3

	
 
	
 
	
(d)
	
Redetermination
	
3

	
 
	
8.6
	
Participant's Responsibilities
	
3

	
 
	
 

	
ARTICLE 9 - Investment and Administration of Assets
	
1

	
 
	
 

	
 
	
9.1
	
Rabbi Trust
	
1

	
 
	
9.2
	
Insurance
	
1

	
 
	
9.3
	
Available to Creditors
	
1

	
 
	
9.4
	
No Trust or Fiduciary Relationship
	
1

	
 
	
9.5
	
Benefit Payments
	
1

	
 
	
 

	
ARTICLE 10 - Change in Control Benefit
	
1

	
 
	
 

	
 
	
10.1
	
Benefit
	
1

	
 
	
 
	
(a)
	
Standard Benefit
	
1

	
 
	
 
	
(b)
	
Minimum Benefit
	
1

	
 
	
10.2
	
Definitions
	
1

	
 
	
 
	
(a)
	
Cause
	
1

	
 
	
 
	
(b)
	
Change in Control
	
2

	
 
	
 
	
(c)
	
Common Stock
	
3

	
 
	
 
	
(d)
	
Date of Termination
	
3

	
 
	
 
	
(e)
	
Designated Period
	
3

	
 
	
 
	
(f)
	
Disability
	
3

	
 
	
 
	
(g)
	
Good Reason
	
3

	
 
	
 
	
(h)
	
Nonqualifying Termination
	
5

	
 
	
 
	
(i)
	
Notice of Termination
	
5

	
 
	
10.3
	
Method of Payment
	
5

-iii-

	
 
	
10.4
	
Successor Obligations in Change of Control Situation
	
6

	
 
	
 
	
(a)
	
Survival of Obligations
	
6

	
 
	
 
	
(b)
	
Assumption Required
	
6

	
 
	
10.5
	
Reimbursement of Expenses
	
6

	
 
	
 

	
ARTICLE 11 - General Provisions
	
1

	
 
	
 

	
 
	
11.1
	
Amendment; Termination
	
1

	
 
	
 
	
(a)
	
Vesting and Distribution
	
1

	
 
	
 
	
(b)
	
Termination Requirements
	
1

	
 
	
11.2
	
Employment Relationship
	
1

	
 
	
11.3
	
Confidentiality and Relationship
	
2

	
 
	
11.4
	
Rights Not Assignable
	
2

	
 
	
11.5
	
Construction
	
2

	
 
	
11.6
	
Governing Law
	
2

	
 
	
 

	
EXHIBIT A
	
 

	
 
	
 

	
EXHIBIT A - 1
	
 

	
 
	
 

	
EXHIBIT A - 2
	
 

-iv-

TABLE OF DEFINITIONS

	
Term
	
Location

	
 
	
 

	
Administrator
	
8.3

	
Annual Benefit
	
5.1(a)

	
Annual Pension Benefit
	
5.1(c)

	
Average Earnings
	
5.1(a)(ii)

	
Beneficiary
	
7.7(c)

	
 
	
 

	
Cause
	
10.2(a)

	
Change in Control
	
10.2(b)

	
Code
	
1.1(b)

	
Company
	
2.2

	
Common Stock
	
10.2(c)

	
 
	
 

	
Date of Termination
	
10.2(d)

	
Designated Percentage
	
5.1(a)

	
Designated Period
	
10.2(e)

	
Disability
	
10.2(f)

	
Earnings
	
5.1(a)(i)

	
 
	
 

	
Effective Date
	
1.4

	
Employee
	
2.1

	
Employer
	
2.2

	
ERISA
	
1.1(a)

	
Exchange Act
	
10.2(b)(1)

	
 
	
 

	
Good Reason
	
10.2(g)

	
Grandfathered SERP
	
1.1(c)

	
Inactive Participant
	
3.2

	
Incumbent Board
	
10.2(b)(3)

	
Insignificant Services
	
2.8(b)

	
 
	
 

	
Key Employee
	
2.3

	
Nonqualifying Termination
	
10.2(h)

	
Notice of Termination
	
10.2(i)

	
Outstanding Company Common Stock
	
10.2(b)(1)

	
Outstanding Securities
	
10.2(b)(1)

	
 
	
 

	
Participant
	
3.1

	
Plan Year
	
2.5

	
Pension Plan
	
2.4

	
Period of Leave
	
2.9(a)

	
Person
	
10.2(b)(1)

-v-

	
Term
	
Location

	
 
	
 

	
Present Value
	
2.6

	
QDRO
	
7.8

	
Rabbi Trust
	
1.2

	
Retire
	
5.1

	
Retiring
	
5.1

	
 
	
 

	
Spouse
	
2.7

	
Surviving Spouse
	
2.8

	
Termination of Employment
	
2.9

	
Third Party
	
10.2(b)(4)

	
Years of Service
	
5.1(a)(iii)

-vi-

WOLVERINE WORLD WIDE, INC.

409A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

          Wolverine World Wide, Inc. ("Wolverine") adopts the Wolverine World Wide, Inc. 409A Supplemental Executive Retirement Plan, a supplemental nonqualified plan for a select group of management personnel employed by Wolverine and any subsidiary of Wolverine.

ARTICLE 1

Establishment of Plan

1.1          Establishment of Plan.

          This Plan is a supplemental, nonqualified Plan and is intended to be a Plan for a select group of management and highly compensated employees of Wolverine and affiliates of Wolverine. 

          (a)          ERISA Limited Applicability. This Plan is intended to be a Plan described in Sections 201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). 

          (b)          Tax Status. As a supplemental nonqualified executive retirement program it is not subject to limitations in the Internal Revenue Code applicable to benefits provided through a qualified, tax-exempt employee benefit plan established under Section 401(a) of the Internal Revenue Code of 1986, as amended ("Code"). The Plan is intended to comply with the requirements of Code Section 409A.

          (c)          Continuation. This Plan is intended to be a continuation of the Wolverine Supplemental Executive Retirement Plan (the "Grandfathered SERP") adopted __________, 2001 and effective March 6, 2001. This document is separately drafted to preserve the grandfathered status of benefits accrued prior to January 1, 2005, and to assure compliance with Code Section 409A for benefits accrued beginning January 1, 2005.

1.2          Rabbi Trust.

          This Plan may be funded by contributions to a "Rabbi" trust which does not alter the "unfunded," nonqualified status of the Plan for federal tax purposes.

1.3          Effective Date.

          The "Effective Date" of this Plan is January 1, 2005. Each Plan provision applies until the effective date of an amendment of that provision.

ARTICLE 2

Definitions

2.1          Employee.

          "Employee" means an individual employed by the Employer who receives compensation for personal services performed for the Employer that is subject to withholding for federal income tax purposes.

2.2          Employer; Company.

          "Employer" and "Company" mean Wolverine World Wide, Inc. and any affiliate of Wolverine World Wide, Inc. which has adopted this Plan with the consent of Wolverine World Wide, Inc.

2.3          Key Employee. 

          "Key Employee" means an Employee or former Employee (including any deceased Employee) who, under Code Section 416(i) is or was, as of January 1 of the Plan Year that includes the Determination Date, one of the following:

          (a)          Officer. An officer of an Employer or Related Employer if the officer's Section 415 Compensation exceeds $130,000 (as adjusted under Code Section 416(i)(1) for Plan Years beginning after December 31, 2002);

          (b)          5% Owner. A 5% Owner; or

          (c)          1% Owner; $150,000 Compensation. A 1% owner, determined under the definition of 5% Owner but replacing "5%" with "1%," whose Section 415 Compensation exceeds $150,000.

                    Ownership under (b) and (c) shall be determined separately for each Employer and Related Employer. Compensation for (a) and (c) above for a Plan Year is determined without regard to the Annual Compensation Limit. 

2.4          Pension Plan.

          "Pension Plan" means the Wolverine Employees' Pension Plan, a qualified, tax-exempt defined benefit pension plan established and maintained by Wolverine under Code Sections 401(a) and 501(a).

2.5          Plan Year.

          "Plan Year" means the 12-month period beginning each January 1.

2-1

2.6          Present Value.

          "Present Value" means the present value as computed under the Pension Plan as of the end of the most recently completed Plan Year.

2.7          Spouse/Married.

          "Spouse" means the husband or wife to whom the Participant is married on the date the benefit is scheduled to be paid, or payment is scheduled to begin. The legal existence of the marital relationship shall be governed by the law of the state or other jurisdiction of domicile of the Participant.

2.8          Surviving Spouse.

          "Surviving Spouse" means the Spouse of the Participant at the time of the Participant's death who survives the Participant. If the Participant and Spouse die under circumstances which prevent ascertainment of the order of their deaths, it shall be presumed for this Plan that the Participant survived the Spouse.

2.9          Termination of Employment. 

          "Termination of Employment" means a Participant's ceasing to provide services after a six-month Period of Leave or ceasing to provide other than Insignificant Services to the Employer.

          (a)          Period of Leave. A "Period of Leave" means a period of military leave, sick leave or other leave of absence for which the Participant does not have a statutory or contractual right to reemployment.

          (b)          Insignificant Services. "Insignificant Services" means either:

                    (i)          Employee. Services as an Employee at an annual rate that is less than 20% of the average of services rendered necessary to obtain basic compensation and 20% of the average compensation earned during the immediately preceding three full calendar years of employment.

                    (ii)          Other Status. Services in a capacity other than as an Employee at an annual rate that is less than 50% of the average of services rendered necessary to obtain basic compensation and 50% of the average compensation earned during the immediately preceding three full calendar years of employment

          Subject to Article 10, a transfer of employment among the Company and its subsidiaries is not a Termination of Employment, nor shall a Participant's employment be deemed terminated if Participant is offered employment by a successor which purchases all or substantially all of the assets of the Company and who adopts this Plan.

2-2

ARTICLE 3

Participant

3.1          Designation as Participant.

          Only management and highly compensated Employees shall be eligible to participate in this Plan. Wolverine shall designate eligible Employees in Exhibit A who shall become participants ("Participant"). The designation shall become effective when both the Employer and the Employee have signed a Participation Agreement in the form attached as either Exhibit "A-1" or "A-2." A designated eligible Employee shall become a Participant on the date specified in the Participation Agreement.

3.2          Inactive Participant Status. 

          The Administrator may notify an Employee Participant in writing at any time that the Participant is being converted to Inactive Participant status. An Employee Participant will not accrue additional Years of Service under this Plan after the date of such notice, unless the Participant is subsequently designated as a Participant under Section 3.1.

3-1

ARTICLE 4

Contributions/Funding

4.1          Amount. 

          The Employer is not required to make contributions to fund the benefits under this Plan. The Employer may make contributions sufficient to prevent an unfunded liability from adversely affecting financial disclosures required under generally accepted accounting principles and to provide reasonable anticipated benefits under this Plan. Employees shall not make any contributions under this Agreement.

4.2          No Relationship to Benefits.

          The benefits provided by this Agreement shall be separate from and unrelated to any contributions made by Employer (including but not limited to assets held in a trust created under Article 9 of this Plan, if any).

4.3          Unfunded Plan.

          This shall be an unfunded Plan within the meaning of ERISA and the Code. Benefits payable under this Plan constitute only an unsecured contractual promise to pay in accordance with the terms of this Plan by the Employer.

4.4          Unsecured Creditor Status.

          A Participant shall be an unsecured general creditor of the Employer as to the payment of any benefit under this Plan. The right of any Participant or Beneficiary to be paid the amount promised in this Plan shall be no greater than the right of any other general, unsecured creditor of the Employer.

4-1

ARTICLE 5

Amount of Benefits

5.1          Retirement Benefits.

          A Participant who has 5 Years of Service after the earlier of execution of a Participation Agreement under this Plan or a Deferred Compensation Agreement, or who has reached age 65 before Retiring, will be entitled to a benefit computed under this Section, unless the benefit is forfeited under Article 6. For purposes of this Article 5, the terms "Retiring" or "Retire" shall include an Employee's Termination of Employment.

          (a)          Annual Benefit. The "Annual Benefit" under this Plan will be an amount computed by multiplying that percentage of the Participant's Average Earnings which is designated in the Participation Agreement ("Designated Percentage") by the Participant's Years of Service. The Annual Benefit shall be reduced by the Participant's Annual Pension Benefit (as defined in 5.1(c) below). Further, if the Participant receives payment before age 65, the Annual Benefit shall be reduced as provided in 5.1(b) below. 

                    (i)          Earnings. "Earnings" means Earnings as computed under the Pension Plan, excluding: 

                              (A)          Long-Term Incentive Plan. Any amounts paid to the Participant under the Wolverine Executive Long Term Incentive (Three Year) Plan or any comparable long-term bonus Plan, and 

                              (B)          Severance Payments. Any payments to the Participant under any severance agreement or policy.

                    (ii)          Average Earnings. "Average Earnings" means the average of a Participant's Earnings for the Participant's four consecutive highest earnings calendar years of the most recent ten consecutive Years of Service immediately prior to the date on which the Participant Retires, except that Years of Service during which a Participant receives a disability benefit under Section 5.3 of this Plan will be omitted from the calculation of Average Earnings if doing so will produce higher Average Earnings. In computing Average Earnings, a Participant's earnings for the calendar year of retirement or earlier termination of employment shall be annualized and the Participant shall be deemed to have received earnings during that entire calendar year.

                    (iii)          Years of Service. "Years of Service" means a Participant's Years of Service under the Pension Plan, except that: (i) periods during which a Participant is receiving a disability benefit under Section 5.3 of this Plan will count as Years of Service for computation of any benefit under this Plan other than a disability benefit, and will not count as Years of Service for computation of a disability benefit; (ii) periods during which a Participant is an Inactive Participant (as defined in Section 3.2) will not count as Years of Service under this Plan; (iii) upon the recommendation of the Compensation Committee, the Board of Directors of the Company may grant a Participant deemed

5-1

Years of Service for purposes of this Section; and (iv) the maximum number of Years of Service used in computing a benefit under this Plan shall be 25.

          (b)          Before Age 65. The benefit payable will be the benefit computed under (a) above, which shall be actuarially equivalent to payments commencing when the Participant attains age 65 payable at the later of age 55 or separation from service. 

                    (i)          Actuarial Equivalence. If the Participant begins receiving a benefit between age 60 and 65, the actuarially equivalent reduction in the benefit amount shall be .1666% (1/6 of 1%) for each month between the date benefits begin and the first day of the month following that in which the Participant would attain age 65. If the Participant begins receiving benefits between age 55 and 60, the actuarially equivalent reduction shall be .333% (1/3 of 1%) for each month between the date benefits begin and the first day of the month following that in which the Participant would attain age 60.

                    (ii)          Deemed Early Retirement Pension Election. A Participant who is eligible and in fact commences payment prior to the Participant's attainment of age 65 shall be deemed (for purposes of calculation of the Annual Pension benefit reduction in subsection (c) below) to have elected Early Retirement under the Pension Plan as of the later of the Participant's attainment of age 60 or the date that the Participant begins to receive benefits under this Plan.

          (c)          Annual Pension Benefit. A Participant's "Annual Pension Benefit" shall mean the amount of benefit payable to the Participant under the Pension Plan in the form of a life annuity, prior to any offset for workers compensation payments.

5.2          Death. 

          A death benefit shall be payable only under this section.

          (a)          Before Commencement of Benefits. If a Participant dies before beginning to receive benefits under Section 5.1 or 5.4, the Participant's Beneficiary will be paid a lump sum death benefit without regard to the 5-year service or minimum age requirements of Section 5.1. The death benefit shall be equal to the Present Value of the benefit computed under Section 5.1 as if the Participant had Retired on the date of death, had begun receiving benefits at age 65, and had continued to receive benefits for the remainder of the Participant's life expectancy. If the Participant has received a Disability benefit under Section 5.3, the lump sum death benefit under this subsection will be reduced by the actuarial value of benefits received under Section 5.3.

          (b)          After Retiring. If a Participant dies after beginning to receive benefit payments under Section 5.1, benefits shall cease unless the Participant was receiving benefits in the form of a 50% Joint and Survivor Annuity, or in any of the forms set forth in subsections 7.2(b).

5-2

5.3          Disability.

          A Participant (other than an Inactive Participant) who becomes Disabled while employed by the Employer shall receive the benefit provided by this section.

          (a)          Disabled Defined. A Participant is Disabled if the Participant is unable to engage in any substantial gainful activity due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months or, as the result of such an impairment, has received income replacement benefits for not less than three months under an accident or health plan covering Employees.

          (b)          Benefit if Participant Becomes Disabled Before Retiring. If a Participant becomes Disabled before Retiring, and is not an Inactive Participant at the time of application for a benefit under this Section 5.3, the Participant will receive a disability benefit, without regard to the 5-year service or minimum age requirement of Section 5.1. The benefit will equal 60% of the benefit computed under (a) above, based on Years of Service up to the date the Participant became Disabled. This benefit will continue until the earliest of the date of Participant's death, the date Participant reaches age 65 or the date as of which the Participant is no longer Disabled. Each benefit payment under this subparagraph (b) shall be reduced by any benefit for the same period payable under any employer funded disability plan. A reduction shall not be made for benefits from a disability plan funded by the employee either directly or through a written salary reduction agreement or program.

5.4          Minimum Benefit. 

          (a)          Difference - Additional Benefit. This Section 5.4 shall apply to Participants who are party to a Deferred Compensation Agreement which is designated in the Participation Agreement as eligible for the minimum benefit calculation in this Section 5.4. As of the first date on which such a Participant begins receiving a benefit under this Plan, or as of the date a Participant's Beneficiary becomes entitled to a lump sum payment under this Plan, the Administrator will compare the projected total benefits to be paid to or on behalf of such Participant under this Plan and the Grandfathered SERP and the current Pension Plan to the total benefits which would have been paid to or on behalf of such Participant if the Deferred Compensation Agreement had remained in effect, and the Participant had been eligible for an Annual Pension Benefit under the Pension Plan benefit formula in effect on December 31, 1994. If the Administrator determines that the total payments to or on behalf of the Participant under this Plan (before any reduction for the Participant's Annual Pension Benefit) would be less than the sum of:

                    (i)          the total payments which would have been made to or on behalf of the Participant under the Deferred Compensation Agreement; and 

                    (ii)          the Participant's Annual Pension Benefit computed using the Pension Plan benefit formula in effect on December 31, 1994; 

5-3

then the difference will be paid to the Participant as an additional monthly amount under the form of payment elected by the Participant, or, if a lump sum payment is being made, the difference will be added to the lump sum payment. 

          The Administrator will again make the comparison provided for by this subsection as of the date when all benefits cease under this Plan, and if additional amounts would be due under the formula set forth above, the Administrator shall cause a lump sum payment to be made to the Participant's designated beneficiary or estate.

          (b)          Determinations. In making this determination, the Administrator shall compute Deferred Compensation Agreement benefits under the terms of the Deferred Compensation Agreement, except that:

                    (i)          for purposes of computing a lump-sum benefit for which the Participant would have been eligible under the Deferred Compensation Agreement due to termination of his employment after a Change in Control, the terms "Change in Control," "Cause," "Disability," "Retirement," "Notice of Termination," and "Date of Termination" as used in any such Deferred Compensation Agreement shall be defined as provided in Article 10 of this Plan; and

                    (ii)          the Designated Period, as defined in Section 10.2 shall be used in determining whether the Participant would have been entitled to accelerated vesting under the Deferred Compensation Agreement, rather than the 5-year period provided for in the Deferred Compensation Agreement; and 

                    (iii)          the person entitled to receive the benefit will be determined under this Plan without regard to any former designation of beneficiary under the Deferred Compensation Agreement. 

                    In making the benefit comparison under this Section, the Administrator shall use the actual dates on which a Participant Retires, dies, or is determined to have become Disabled, and in making the projection called for the Administrator shall assume that the Participant and the Participant's Spouse will remain living for their respective life expectancies. If the dates on which benefits would have been paid under the Deferred Compensation Agreement differ from the dates on which benefits are actually paid under this Plan, the Administrator will make the determination called for by this Section based on the Present Value of both streams of payments as of the date payments begin under this Plan.

5-4

ARTICLE 6

Forfeiture

6.1          Misconduct. 

          Subject to Article 10, a Participant (or Participant's Spouse or Beneficiary) will not be entitled to any benefits under this Agreement if the Participant is discharged for dishonesty, commission of a misdemeanor or felony injurious to the Employer, or any action inimical to the interests of the Employer, or the Participant resigns while an investigation is ongoing to determine whether Participant should be discharged for any such reason and the Administrator determines that Participant would have been so discharged but for the resignation; 

6.2          Competitive Activity.

          A Participant (or such Participant's Spouse or Beneficiary) shall not be entitled to any benefit payment if, prior to the date on which such benefit payment is due, the Participant has acquired any ownership interest in a competing business (other than an ownership interest consisting of less than 5% of a class of publicly traded securities), or has been employed as director, officer, employee, consultant, adviser, partner or owner of a competing business. A "competing business" includes any business which is substantially similar to the whole or any part of the business conducted by the Employer. Upon the recommendation of the Compensation Committee, the Board of Directors may partially or completely waive the application of this provision.

6.3          Insurance Related.

          A Participant (or such Participant's Spouse or Beneficiary) shall not be entitled to any benefit payment if benefits are not payable under any policy of life or disability insurance obtained by the Employer to fund its obligations under this Plan, due to the Participant's suicide or the Participant's misrepresentation or omission of information required to be furnished to the insurer in connection with the issuance of such policy.

6-1

ARTICLE 7

Payment of Benefits

7.1          Event of Distribution.

          Benefit payments shall begin as provided in Article 5 following a Participant's death, Disability or Termination of Employment at the time and in the manner specified in this Article. 

7.2          Time of Payment. 

          Unless postponed for a Key Employee or by a Participant's election under this Section:

          (a)          Retirement. Retirement benefits shall begin on the first day of the later of the month following that in which the Participant attains age 55 or that in which the Participant Retires.

          (b)          Death or Disability. Death or Disability benefits shall begin on the first day of the month following the date of the Participant's death or Disability (subject to the provisions for timing of a Lump Sum in 7.4(c) below).

          (c)          Lump Sum. Any lump-sum benefit payable under Section 7.2(c) shall be paid on March 1 following the end of the calendar year in which the Participant's employment terminates or the Participant dies.

          (d)          Key Employee Postponement. Benefits of a Key Employee shall not be paid until the earlier of the Participant's death or six months following a Participant's Termination of Employment.

7.3          Calculation. 

          All benefit calculations shall be made as of the date the Participant's employment terminates or, if later, upon occurrence of the event which triggers payment of the benefit. Each form of benefit payment shall be actuarially equivalent to a life annuity and shall be based upon the actuarial assumptions and factors applicable in the Pension Plan in effect on the date the Participant's employment terminates. If the payment of benefits begins after the time specified for payment above, other than due to postponement of a Key Employee's benefits or a Participant's election, the benefit shall be adjusted for late payment in the same manner as under the Pension Plan (as in effect on the date the Participant's employment terminates).

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7.4          Form of Payment.

          (a)          Presumed Method. A Disability Benefit shall be paid in the form of a life annuity. Unless a Participant elects otherwise, a Retirement Benefit shall be paid in the form of a Joint and 50% Survivor Annuity to a married Participant, or in the form of a Life Annuity to any other Participant in lieu of the normal form of payment. 

          (b)          Optional Methods. A Participant may elect any of the following actuarially equivalent optional forms for a Retirement Benefit by notifying the Administrator in writing before the end of the calendar year preceding that in which the Participant begins receiving a benefit.

                    (i)          5 or 10-Year Certain and Life. A monthly amount for life to the Participant, and if the Participant dies before payment of 60 or 120 monthly benefit payments, the same monthly amount shall be paid to the Participant's Beneficiary until a total of 60/120 monthly payments have been made.

                    (ii)          Joint and 100% Spouse Annuity. A monthly amount to the Participant for the Participant's lifetime and in an equal monthly amount to the Participant's Surviving Spouse, if any, for life. 

          (c)          Lump Sum. A lump-sum benefit shall not be available except as provided in this subsection (c).

                    (i)          Eligible Participant/Beneficiary. A Participant (or Beneficiary) who has a benefit under subsection (a) with an actuarially equivalent Present Value which does not exceed $5,500; a Participant who is entitled to a Change in Control Benefit; or a Beneficiary who is entitled to a death benefit under Section 5.2(a) shall receive a lump-sum payment.

                    (ii)          Amount. Except as modified by the provisions of Section 10.1 for a Change of Control Benefit, the amount of the lump sum shall be the actuarially equivalent present value of the Participant's benefit payable under the Plan at the Participant's Normal Retirement Date (as defined in the Pension Plan).

          (d)          Key Employee Make Up Payment. If payments to a Key Employee are postponed (as provided in Section 7.4(d)), the postponed amounts shall be paid in addition to the otherwise payable benefit on the first day of the month following expiration of the postponement period.

7.5          Elective Postponement of Payments. 

          A Participant or Beneficiary entitled to payments may postpone payment if:

          (a)          Earliest Effective Date. The election does not take effect until at least 12 months after the date that the election is made.

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          (b)          Five Year Minimum. For payments other than those due to death, Disability or Unforeseeable Emergency, the first payment may not begin until a date which is not less than five years from the date that payment would otherwise have begun.

          (c)          Twelve Months Prior. For payments on account of Retirement, the election is made at least 12 months before the date of the first scheduled payment.

7.6          Acceleration of Payments. 

          Benefits may not begin before the dates specified in this Plan except:

          (a)          Unforeseeable Emergency. For amounts postponed under Section 7.5, the Administrator may, upon a Participant or Beneficiary's request, make payments reasonably necessary to satisfy the emergency need (including reasonably anticipated attributable taxes or penalties) which cannot be made through reimbursement or compensation from insurance or by liquidation of assets that would not cause severe financial hardship. Unforeseeable Emergency means a severe financial hardship resulting from an illness or accident of the Employee, Beneficiary, their spouses or dependents, loss of the Employee's or a Beneficiary's property due to casualty or other similar and extraordinary circumstances beyond the control of the service provider or Beneficiary (including but not limited to imminent foreclosure or eviction from the Employee's or Beneficiary's primary residence or the need to pay medical or funeral expenses of the Employee or Beneficiary or their spouse or dependent).

          (b)          409A Income Inclusion. Upon failure of the Plan to meet the requirements of Code Section 409A, in an amount required to pay all taxes attributable to an amount to be included in income as the result of the failure.

          (c)          Plan Termination. Twelve months following termination of the Plan which complies with the requirements of Section 11.1(b).

7.7          Payment of Death Benefits.

          Benefits shall cease upon a Participant's death unless continued under this section.

          (a)          Spouse. If a benefit is payable as a Joint and 50/100% Spouse Annuity and the married Participant dies, payment shall continue to the Participant's Surviving Spouse until the Spouse's death. 

          (b)          Payment to Beneficiary. If a benefit is payable as a 5 or 10-Year Certain and Life annuity and the Participant dies prior to payment of all amounts due under this Plan, payment of all remaining benefits shall be made to the Participant's Beneficiary.

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          (c)          Beneficiary. "Beneficiary" means the individual, trust or other entity designated by the Participant to receive any benefits payable under this Plan after the Participant's death. A Participant may designate or change a Beneficiary by filing a signed designation with the Administrator in the form approved by the Administrator. The Participant's Will is not effective for this purpose. If a designation has not been properly completed and filed with the Administrator or is ineffective for any other reason, the Beneficiary shall be the Participant's Surviving Spouse. Designation of a Beneficiary shall not in itself serve to revoke an actual election of a Joint and Survivor Annuity method of payment (or a deemed election under Section 7.2(a)).

          (d)          Payment to Estate. If there is not an effective designation and the Beneficiary/Participant does not have a Surviving Spouse, the remaining benefits, if any, shall be paid to the Participant's estate. If payment is to be made to the estate of a Participant, payment shall be made in a lump sum.

          (e)          Withholding Taxes. The Employer may withhold from all payments due to Participant (or his/her beneficiary or estate) hereunder all taxes which, by applicable federal, state, local or other law, the Employer is required to withhold therefrom.

          (f)          Generation-Skipping Transfer Tax. The Employer may withhold any benefits payable to a Beneficiary as a result of the death of a Participant or any other Beneficiary until it can be determined whether a generation-skipping transfer tax, as defined in Chapter 13 of the Code, or any substitute provision therefore, is payable and the amount of generation-skipping transfer tax, including interest, that is due. If a tax is payable, the benefits otherwise payable shall be reduced in an actuarially equivalent amount to reflect the payment of the generation-skipping transfer tax and interest. Any benefits withheld shall begin or resume as soon as there is a final determination of the applicable generation-skipping transfer tax and interest.

7.8          QDRO. 

          If the plan receives a QDRO, benefits to an alternate payee may begin as specified in the QDRO, but not before benefits would have otherwise been payable. "QDRO" means a qualified domestic relations order, as defined in Code Section 414(p), that is issued by a competent state court and that meets the following conditions:

          (a)          Alternate Payee. The alternate payee must be the Spouse or former Spouse or a child or other dependent of the Participant.

          (b)          Reason for Payments. The payments must relate to alimony, support of a child or other dependent, or a division of marital property.

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          (c)          Contents. The QDRO must contain the name and address of the Participant and the alternate payee, the amount of the distribution or percentage of the Participant's benefit to be paid to the alternate payee, the date as of which the amount or percentage is to be determined, and instructions concerning the timing and method of payment.

          (d)          Restrictions. A QDRO may not require (i) this Plan to pay more than the Actuarially Equivalent present value of the Participant's benefit to the Participant and all alternate payees; (ii) a method, payment date, or duration of payment not otherwise permitted under this article; or (iii) cancellation of the prior rights of another alternate payee.

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ARTICLE 8

Administration

8.1          Duties, Powers, and Responsibilities of the Employer. 

          (a)          Required. The Employer shall be responsible for:

                    (i)          Employer Contributions.

	 	
(A)
	
Amount. Determining the amount of Employer Contributions if any.

	 	 	 
	 	
(B)
	
Payment. Paying, ceasing, or suspending Employer Contributions if any.

                    (ii)          Agent of Service of Process. Serving as the agent for service of process;

                    (iii)          Amendment. Amending this Plan and trust; and

                    (iv)          Plan Termination. Revoking this instrument and terminating this Plan (and any related trust).

          (b)          Discretionary. The Employer may exercise the following responsibilities:

                    (i)          Alternate Administrator. Designating a Person other than the Employer as the Administrator; and

                    (ii)          Payment of Administrative Expenses. Paying administrative expenses incurred in the operation, administration, management, and control of the Plan.

                    (iii)          Reserved Powers. Designating Participants, crediting a Participant with deemed Years of Service, or waiving the competitive activity forfeiture provisions.

8.2          Employer Action. 

          An action required to be taken by the Employer shall be taken by its Board of Directors unless the board has delegated the power or responsibility to one or more Persons identified by its resolution.

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8.3          Plan Administrator. 

          "Administrator" means the Employer or a Person designated by the Employer. The Administrator is a named fiduciary for operation and management of the Plan and, if this Plan is subject to ERISA, shall have the responsibilities conferred by ERISA upon the "Administrator" as defined in ERISA Section 3(16).

8.4          Duties, Powers, and Responsibilities of the Administrator. 

          Except to the extent properly delegated, the Administrator shall have the following duties, powers, and responsibilities and shall:

          (a)          Plan Interpretation. Interpret this instrument (including resolving an inconsistency or ambiguity or to correcting an error or an omission). All questions of interpretation, construction, or application arising under this Agreement shall be decided by the Administrator whose decision shall be final and conclusive upon all persons, except that the Administrator's decision shall not be final and conclusive with regard to a Participant's entitlement to a benefit under Section 10.1;

          (b)          Participant Rights. Determine the rights of Participants and Beneficiaries under the terms of this Plan;

          (c)          Claims and Elections. Establish or approve the manner of making an election, designation, application, claim for benefits, and review of claims;

          (d)          Benefit Payments. Direct the time that payments are to be made or to begin, and the elected form of distribution;

          (e)          QDRO Determination. Establish procedures to determine whether or not a domestic relations order is a QDRO, to notify the Participant and any alternative payee of this determination, and to administer benefit payments pursuant to a QDRO;

          (f)          Administrative Information. Obtain to the extent reasonably possible all information necessary for the proper administration of this Plan;

          (g)          Recordkeeping. Establish procedures for and supervise the establishment and maintenance of all records necessary and appropriate for the proper administration of this Plan;

          (h)          Reporting and Disclosure. Prepare and file annual and periodic reports or disclosure documents required under ERISA and Regulations;

          (i)          Advisers. Employ attorneys, actuaries, accountants, clerical employees, agents, or other Persons who are necessary for operation, administration, and management of this Plan;

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          (j)          Other Powers and Duties. Exercise all other powers and duties necessary or appropriate under this Plan, except those powers and duties allocated to another named fiduciary.

8.5          Claims Procedure. 

          The Administrator shall determine all issues arising from the administration of this Plan.

          (a)          Initial Determination. Upon application by a Participant or Beneficiary, the Administrator shall make an initial determination and communicate the determination to the participant or Beneficiary within 90 days after the application. If the initial determination requires a longer period, the Administrator shall notify the Participant or Beneficiary that the 90-day period is extended to 180 days.

          (b)          Method. The decision of the Administrator shall be in writing. The decision shall set forth (i) the decision and the specific reason for the decision; (ii) specific reference to the Plan provisions on which the decision is based; (iii) a description of additional material, information, or acts that may change or modify the decision; and (iv) an explanation of the procedure for further review of the decision.

          (c)          Further Review. Within 60 days of receipt of the initial written decision, the Participant or Beneficiary filing the original application, or the applicant's authorized representative, may make a request for redetermination by the Administrator. The applicant (or the authorized representative) may review all pertinent documents and submit issues, comments, and arguments.

          (d)          Redetermination. Within 60 days of receipt of an application for redetermination, unless special circumstances require a longer period of time (but not longer than 120 days after receipt of the application), the Administrator shall provide the applicant with its final decision, setting forth specific reasons for the decision with specific reference to plan provisions on which the decision is based.

8.6          Participant's Responsibilities. 

          All requests for action of any kind by a Participant or Beneficiary under this Plan shall be in writing and executed by the Participant or Beneficiary.

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ARTICLE 9

Investment and Administration of Assets

9.1          Rabbi Trust. 

          Contributions to this Plan or assets purchased by Employer with the intent of defraying the cost of providing benefits under this Agreement may be held in a Rabbi Trust. The Trust will conform to the terms of the model Trust set forth in Revenue Procedure 92-65 (or a successor pronouncement by the Internal Revenue Service).

9.2          Insurance. 

          The Employer may purchase a policy of life insurance on the life of a Participant (in whom the Employer has an insurable interest) to assist it in providing the Benefits. The Employer shall be the sole applicant, owner, premium payer and beneficiary of the policy, and shall exercise all incidents of ownership. The Employer intends that the value of the policy while in force and that the death proceeds of the policy shall be excluded from taxation under Code Sections 7702 and 101(a) respectively.

9.3          Available to Creditors. 

          Any contribution made by Employer or asset held by Trustee related to this Agreement shall be available to the general creditors of the Employer as specified in the Trust.

9.4          No Trust or Fiduciary Relationship.

          Except as required by governing law, this Plan shall not create a trust or fiduciary relationship of any kind between the Participant (or the Participant's Spouse or Beneficiary) and the Employer or any third party.

9.5          Benefit Payments.

          Benefit payments shall be paid directly by the Employer or indirectly through a grantor trust (owned or maintained by the Employer) to the Participant or the Participant's Beneficiary. If a trust is established, the Employer shall not be relieved of its obligation and liability to pay the benefits of this Plan except to the extent payments are actually made from the trust.

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ARTICLE 10

Change in Control Benefit

10.1          Benefit.

          If a Participant's employment with the Company is terminated during the designated Period after Change in Control other than by reason of a nonqualifying Termination, then notwithstanding any other provision of this Plan, the Participant shall be paid, within 30 days following such termination and in lieu of any other benefit to which Participant, Participant's Spouse, or Participant's Beneficiary might have been entitled at any time under this Plan or under any Deferred Compensation Agreement, the Change in Control Benefit. The Change in Control Benefit shall be the greater of:

          (a)          Standard Benefit. A lump sum equal to 125% of the Present Value of the payments for which Participant would have been eligible beginning at Retirement without reduction for the actuarial equivalence factors set forth in Section 5.1(b), based on Participant's Years of Service as of the date Participant's employment terminates; or

          (b)          Minimum Benefit. The Minimum Benefit provided in Section 5.4. 

10.2          Definitions.

          As used in this Article 10, the following terms shall have the respective meanings set forth below:

          (a)          Cause. "Cause" means (1) the willful and continued failure by Participant to substantially perform his or her duties with Company and/or its subsidiaries (other than any such failure resulting from Participant's incapacity due to physical or mental illness, or any such actual or anticipated failure resulting from Participant's termination for Good Reason) after a demand for substantial performance is delivered to Participant by the Board and/or its Chairman (which demand shall specifically identify the manner in which the Board and/or its Chairman believes that Participant has not substantially performed his or her duties); or (2) the willful engaging by Participant in gross misconduct materially and demonstrably injurious to the Company and/or its subsidiaries. For purposes of this Section, no act or failure to act on the part of Participant shall be considered "willful" unless done or omitted to be done by Participant not in good faith and without reasonable belief that his or her action(s) or omission(s) was in the best interests of the Company and/or its subsidiaries. Notwithstanding the foregoing, Participant shall not be deemed to have been terminated for Cause unless and until the Company provides Participant with a copy of a resolution adopted by an affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for the purpose (after reasonable notice to Participant and an opportunity for Participant, with counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Participant has been guilty of conduct set forth in (1) or (2) above, setting forth the particulars in detail. A determination of Cause by the Board shall not be binding upon or entitled to deference by any finder of fact in the event of a dispute, it being the intent of the parties that such

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finder of fact shall make an independent determination of whether the termination was for "Cause" as defined in (1) and (2) above.

          (b)          Change in Control. "Change in Control" means:

                    (1)          the acquisition by any person, or more than one person acting as a group (a "Person"), including any "person" within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of 50% or more of either (i) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (ii) the total fair market value of the Company. The following acquisitions shall not constitute a Change in Control: (A) any acquisition by the Company, (B) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, (C) any acquisition by any corporation pursuant to a reorganization, merger, or consolidation involving the Company, if, immediately after such reorganization, merger, or consolidation, each of the following conditions is satisfied: (i) after more than 50% of the shares of Company common stock ("common stock") and 50% of the combined voting power of the outstanding securities ("outstanding securities") of the corporation entitled to vote for the election of directors is beneficially owned, directly or indirectly, by all the individuals or entities who were beneficial owners immediately prior to the reorganization, merger or consolidation, (ii) a Person (other than the Company, any employee benefit plan or related trust sponsored by the Company or the resulting corporation, a person which beneficially owned prior to the reorganization, merger or consolidation 20% or more of the outstanding common stock or outstanding Company voting securities) does not beneficially own directly or indirectly 20% of the common stock or outstanding securities, and (iii) at least a majority of the members of the Board of Directors were members of the Board immediately prior to the reorganization, merger, or consolidation, or (D) any acquisition by the Participant or any group of persons including the Participant;

                    (2)          acquisition by any one person, or more than one person acting as a group, during the 12-month period with the date of the most recent acquisition of 35% of ownership of the then outstanding company common stock;

                    (3)          a majority of individuals who constitute the Board (the "Incumbent Board") is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the directors prior to the date of the appointment or election provided that an individual who was initially elected as a director of the Company as a result of an actual or threatened election contest, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board, shall be deemed not to have been a member of the prior Board;

                    (4)          the acquisition during any 12-month period ending on the date of the most recent acquisition by any one person, or more than one person acting as a group, of assets from the Company having a total gross fair market value at least equal to 40% of the total gross fair market value of all the assets of the Company immediately before the acquisition. Fair market value shall be determined without regard to liabilities associated with the assets.

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          If Participant's employment is terminated prior to a Change in Control and Participant reasonably demonstrates that such termination was at the request of or in response to a third party who has indicated an intention or taken steps reasonably calculated to effect a Change in Control (a "Third Party") who effectuates a Change in Control, then for all purposes of this Agreement, the date of a Change of Control shall mean the date immediately prior to the date of such termination of Participant's employment.

          (c)          Common Stock. "Common Stock" means the common stock of the Company, $1 par value per share.

          (d)          Date of Termination. "Date of Termination" means: (1) the effective date on which Participant's employment by the Company and/or its subsidiaries terminates as specified in a Notice of Termination by the Company or Participant; (2) if Participant's employment by the Company and/or its subsidiaries terminates by reason of death, the date of death of Participant; (3)  if the Participant's employment is terminated for Disability (as defined in (f)), then the Date of Termination shall be no earlier than thirty (30) days following the date on which a Notice of Termination is received; and (4) if the Participant's employment is terminated by the Company and/or its subsidiaries other than for Cause, then the Date of Termination shall be no earlier than thirty (30) days following the date on which a Notice of Termination is received.

          (e)          Designated Period. "Designated Period" means the designated period set forth in the Participant's Participation Agreement.

          (f)          Disability. "Disability" means Participant's failure to substantially perform his/her duties with the Company and/or its subsidiaries on a full-time basis for at least one hundred eighty (180) consecutive days as a result of Participant's incapacity due to mental or physical illness. 

          (g)          Good Reason. "Good Reason" means, without Participant's express written consent, the occurrence of any of the following events after a Change in Control:

                    (1)          (a) the assignment to Participant of any duties inconsistent in any material adverse respect with Participant's position(s), duties, responsibilities, or status with the Company and/or its subsidiaries immediately prior to such Change in Control; (b) a material adverse change in Participant's reporting responsibilities, titles or offices with the Company and/or its subsidiaries as in effect immediately prior to such Change in Control; or (c) any removal or involuntary termination of Participant by the Company and/or its subsidiaries otherwise than as expressly permitted by this Agreement (including any purported termination of employment which is not effected by a Notice of Termination); or (d) any failure to re-elect Participant to any position with the Company and/or its subsidiaries held by Participant immediately prior to such Change in Control;

                    (2)          a reduction by the Company and/or its subsidiaries in Participant's rate of annual base salary as in effect immediately prior to such Change in Control or as the same may be increased from time to time thereafter;

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                    (3)          any requirement of the Company and/or its subsidiaries that Participant (i) be based anywhere other than the facility where Participant is located at the time of the Change in Control or reasonably equivalent facilities within twenty five (25) miles of such facility or (ii) travel for the business of the Company and/or its subsidiaries to an extent substantially more burdensome than the travel obligations of Participant immediately prior to such Change in Control;

                    (4)          the failure of the Company and/or its subsidiaries to continue the Company's executive incentive plans or bonus plans in which Participant is participating immediately prior to such Change in Control or a reduction of the Participant's target incentive award opportunity under the Company's Executive Long-Term Incentive (Three Year) Plan (three-year bonus plan), Executive Short Term Incentive Plan (annual bonus plan) or other bonus plan adopted by the Company;

                    (5)          the failure of the Company and/or its subsidiaries to (a) provide any employee benefit plan or compensation plan (including but not limited to stock option, restricted stock, incentive stock option or other similar programs) in which Participant is participating immediately prior to such Change in Control, in accordance with the most favorable plans, practices, programs and policies of the Company and/or its subsidiaries in effect for Participant immediately prior to the Change in Control, unless Participant is permitted to participate in other plans providing Participant with substantially comparable benefits; (b) provide Participant and Participant's dependents with welfare benefits (including, without limitation, medical, prescription, dental, disability, salary continuance, employee life, group life, accidental death and travel accident insurance plans and programs) in accordance with the most favorable plans, practices, programs, and policies of the Company and/or its subsidiaries in effect for Participant immediately prior to such Change in Control; (c) provide fringe benefits in accordance with the most favorable plans, practices, programs, and policies of the Company and/or its subsidiaries as in effect for Participant immediately prior to such Change in Control; or (d) provide Participant with paid vacation in accordance with the most favorable plans, policies, programs and practices of the Company and/or its subsidiaries as in effect for Participant immediately prior to such Change in Control; or the taking of any action by the Company and/or its subsidiaries which would adversely affect Participant's participation in or materially reduce Participant's benefits under any such plan;

                    (6)          the failure of the Company and/or its subsidiaries to pay any amounts owed Participant as salary, bonus, deferred compensation or other compensation;

                    (7)          the failure of the Company to obtain an assumption agreement from any successor as contemplated in Section 10.4; 

                    (8)          the refusal by the Company and/or its subsidiaries to continue to allow Participant to attend to matters or engage in activities which did not involve a substantial portion of a Participant's time and which are not directly related to the business of the Company and/or its subsidiaries which were permitted by the Company and/or its subsidiaries immediately prior to such Change in Control, including without limitation serving on the Boards of Directors of other companies or entities;

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                    (9)          Any amendment or termination of this Plan which unfavorably affects a Participant or reduces any protection afforded to a Participant (including a failure to continue to credit service with any successor after a change in control for purposes of this Plan).

                    (10)          Any purported termination of Participant's Employment which is not effected pursuant to a Notice of Termination; and

                    (11)          Any other material breach by Company of its obligations under any executive severance agreement between the Participant and the Company.

          For purposes of this Agreement, any good faith determination of Good Reason made by Participant shall be conclusive; provided, however, that an isolated and insubstantial action taken in good faith and which is remedied by the Company and/or its subsidiaries within ten (10) days after receipt of notice thereof given by Participant shall not constitute Good Reason. Any event or condition described in this subsection (g)(1) through (10) which occurs prior to a Change in Control, but which Participant reasonably demonstrates was at the request of or in response to a Third Party who effectuates a Change in Control, shall constitute Good Reason following a Change in Control for purposes of this Agreement notwithstanding that it occurred prior to the Change in Control.

          (h)          Nonqualifying Termination. "Nonqualifying Termination" means a termination of Participant's employment (1) by the Company and/or its subsidiaries for Cause, (2) by Participant for any reason other than for Good Reason with Notice of Termination, (3) as a result of Participant's death, and (4) by the Company and/or its subsidiaries due to Participant's Disability, unless within thirty (30) days after Notice of Termination is provided to Participant following such Disability Participant shall have returned to substantial performance of Participant's duties on a full-time basis.

          (i)          Notice of Termination. "Notice of Termination" means written notice of Participant's Date of Termination by the Company or Participant, as the case may be, to the other, which (1) indicates the specific termination provision in this Agreement relied upon, (2) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Participant's employment under the provision so indicated, and (3) specifies the termination date. The failure by Participant or the Company to set forth in such notice any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of Participant or the Company hereunder or preclude Participant or the Company from asserting such fact or circumstance in enforcing Participant's or the Company's rights hereunder.

10.3          Method of Payment.

          Payment shall be made, to the extent possible, by distribution of any insurance policy or policies purchased by the Company in connection with this Agreement and in effect on the date of a Change in Control, valued for distribution purposes at their cash surrender value. Any remaining balance of the distribution sum shall be paid in cash.

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10.4          Successor Obligations in Change of Control Situation.

          (a)          Survival of Obligations. Neither this Plan nor any Participation Agreement shall be terminated by any merger or consolidation of the Company whereby the Company is or is not the surviving or resulting corporation or as a result of any transfer of all or substantially all of the assets of the Company. In the event of any such merger, consolidation, or transfer of assets, the provisions of this Plan and of such Participation Agreements shall be binding upon the surviving or resulting corporation or the person or entity to which such assets are transferred.

          (b)          Assumption Required. The Company agrees that concurrently with any merger, consolidation or transfer of assets referred to in paragraph (a) of this Section 10.4, it will cause any successor or transferee unconditionally to assume, by written instrument delivered to each Participant (or his/her beneficiary or estate), all of the obligations of the Company hereunder. Failure of the Company to obtain such assumption prior to the effectiveness of any such merger, consolidation or transfer of assets shall constitute Good Reason hereunder. For purposes of implementing the foregoing, the date on which any such merger, consolidation, or transfer becomes effective shall be deemed the date Good Reason occurs, and shall be the Date of Termination if requested by Executive.

10.5          Reimbursement of Expenses.

          If any contest or dispute shall arise under this Plan or any Participation Agreement involving a Participant's entitlement to a benefit under Section 10.1, the Company shall reimburse Participant, on a current basis, for all legal fees and expenses, if any, incurred by Participant in connection with such contest or dispute regardless of the result thereof.

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ARTICLE 11

General Provisions

11.1          Amendment; Termination.

          Wolverine World Wide, Inc. may amend this Plan prospectively or retroactively, or to terminate this Plan, provided that an amendment or termination may not reduce or revoke the accrued benefits of any Participant who is already entitled as of the date of such amendment or termination to a benefit under Section 5.1 of this Plan, regardless of whether payment of such benefit has commenced. 

          (a)          Vesting and Distribution. Upon termination of or a discontinuation of further accrual of benefits under this Plan, the accrued benefits of affected Participants shall become nonforfeitable and shall be distributed in accordance with the provisions of this Plan.

          (b)          Termination Requirements. A termination may not permit acceleration of distributions unless: the termination is within 12 months of a corporation dissolution taxed under Code Section 331 or with the approval of a Bankruptcy Court under Chapter 11 of the Bankruptcy Code; the termination is within 30 days preceding or 12 months following a Change of Control as defined in Article 10, or; all aggregated plans subject to Code Section 409A are terminated, payments are not made for a period of 12 months following the date of termination, all payments are completed within 24 months of the date of termination, and the employer shall not adopt a plan that would be aggregated with any terminated plan within five years of the date of termination. If a termination does not meet the requirements for acceleration of payments, the accounts of Participants shall be administered and distributed under the otherwise applicable provisions of the Plan.

11.2          Employment Relationship.

          This Plan shall not be construed to create a contract of employment between the Employer and any Participant or to otherwise confer upon a Participant or other person a legal right to continuation of employment or any rights other than those specified herein. This Plan shall not limit or affect the right of the Employer to discharge or retire a Participant.

          This Plan does not constitute a contract on the part of the Employer to employ Employee until age 65 or to continue his employment for any given period of time, either fixed or contingent. Moreover, Employee does not by this writing agree to continue in the employment of the Employer for any specified interval of time. The employment relationship, therefore, shall continue for so long as, but only for so long as, such employment is mutually satisfactory to both parties. The Employer does not promise that Employee's employment will be continued for such interval as to enable Employee to obtain all or any part of the benefits under this Agreement.

11-1

11.3          Confidentiality and Relationship.

          Each Participant shall agree to refrain from divulging any information of a confidential nature including, but not restricted to, trade secrets, operating methods, the names of the Employer's customers and suppliers and the relations of the Employer with such customers and suppliers, or other confidential information; and to refrain from using or permitting the use of such information or confidences by any interests competitive with the Employer; irrespective of whether or not Participant is then employed by the Employer, and to refrain from including, and from causing inducements to be made to, the Employer's employees to terminate employment with the Employer or undertake employment with its competitors. The obligations herein assumed by Participant shall endure whether or not the remaining promises by either party remain to be performed or shall be only partially performed.

11.4          Rights Not Assignable.

          Except for designation of a Beneficiary or under a QDRO, benefits payable under this Plan shall not be subject to assignment, conveyance, transfer, anticipation, pledge, alienation, sale, encumbrance, or charge, whether voluntary or involuntary, by the Participant (or any Spouse or Beneficiary of the Participant). A benefit payable under this Plan shall not be used as collateral or security for a debt or be subject to garnishment, execution, assignment, levy, or to another form of judicial or administrative process or to the claim of a creditor through legal process or otherwise. An attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, or to otherwise dispose of benefits payable, before actual receipt of the benefits, or a right to receive benefits, shall be void and shall not be recognized.

11.5          Construction.

          The Plan shall be interpreted in a manner that makes it compliant with the limited application of ERISA and with the requirements of Code Section 409A. The singular includes the plural, and the plural includes the singular, unless the context clearly indicates the contrary. Capitalized terms (except those at the beginning of a sentence or part of a heading) have the meaning specified in this Plan. If a capitalized term is not defined in this Plan, the term shall have, for purposes of this Plan, the stated definitions of those terms in the Wolverine Retirement Income Plan as amended from time to time.

11.6          Governing Law.

          To the extent not preempted by applicable federal law, this Plan shall be governed by and interpreted under the laws of the State of Michigan.

11-2

EXHIBIT A

ELIGIBLE EMPLOYEES

	
Name of Employee
	
Type
	
Effective Dates/Status

A - 1

EXHIBIT A - 1

WOLVERINE WORLD WIDE, INC.

409A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

PARTICIPATION AGREEMENT

                                                                      ("Employee") has been notified by Wolverine World Wide, Inc. ("Employer") of the Employer's intent to designate the Employee as a Participant in the Wolverine World Wide, Inc. 409A Supplemental Executive Retirement Plan ("Plan"). Employer and Employee have signed this Agreement to effectuate Employee's Participant status and to agree on certain terms relating to Employee's Participant status. Therefore, Employer and Employee agree as follows:

          1.          Participation Date. Employee will become a Participant in the Plan effective                     , 20___. Employee agrees to be bound by the provisions of the Plan.

          2.          Years of Service. Employee's commencement date for purposes of computing Years of Service under the Plan is                                         . Employee currently has            Years of Service.

          3.          Average Earnings. Employee's current Average Earnings is $________.

          4.          Designated Percentage. The Designated Percentage under Plan Section 5.1(a) is 2.4%.

          5.          Designated Period. The Designated Period under Plan Section 10.1 is 3 years.

          6.          Deferred Compensation Agreement. Employer and Employee agree that:

[Check one of the following]

	
 
	
o
	
There is no deferred compensation agreement in effect as described in Plan Section 5.4(a).
	
 

	
 
	
 
	
 
	
 

	
 
	
o
	
There is a Deferred Compensation Agreement dated in effect as described in Section 5.4(a) of the Plan and attached. Employee hereby relinquishes all rights under such Deferred Compensation Agreement, and agrees to look solely to the terms of the Plan with regard to any computation of a Minimum Benefit as provided in the Plan.
	
 

          7.          Form of Payment. The Participant accepts the presumed method of payment under the Plan (single life annuity, if single, or joint and 50% survivor annuity, if married) unless one of the following actuarially equivalent forms is selected:

	
 
	
o
	
5 Year Certain and Life
	
o
	
Joint and 100% Spouse Annuity

	
 
	
o
	
10 Year Certain and Life
	
 
	
 

          8.          Employment Relationship. Employee agrees that the Plan shall not be construed to create a contract of employment between the Employer and the Employee or to otherwise confer upon the Employee or other person a legal right to continuation of employment or any rights other than those specified herein. This plan shall not limit or affect the right of the Employer to discharge or retire the Employee.

          This Plan does not constitute a contract on the part of the Employer to employ Employee until age 65 or to continue his employment for any given period of time, either fixed or contingent. Moreover, Employee does not by this writing agree to continue in the employment of the Employer for any specified interval of time. The employment relationship, therefore, shall continue for so long as, but only for so long as, such employment is mutually satisfactory to both parties. The Employer does not promise that Employee's employment will be continued for such interval as to enable Employee to obtain all or any part of the benefits under this Agreement.

          9.          Confidentiality and Relationship. Employee agrees to refrain from divulging any information of a confidential nature including, but not restricted to, trade secrets, operating methods, the names of the Employer's customers and suppliers and the relations of the Employer with such customers and suppliers, or other confidential information; and to refrain from using or permitting the use of such information or confidences by any interests competitive with the Employer; irrespective of whether or not Employee is then employed by the Employer, and to refrain from including, and from causing inducements to be made to, the Employer's employees to terminate employment with the Employer or undertake employment with its competitors. The obligations herein assumed by Participant shall endure whether or not the remaining promises by either party remain to be performed or shall be only partially performed.

          10.          Acknowledgments. Employee acknowledges the Employer's rights to:

          (a)          Amend or terminate the Plan at any time, subject to Section 11.1 of the Plan; and

          (b)          To designate the Employee as an Inactive Participant at any time, as provided in Section 3.2 of the Plan; and

          (c)          To make final decisions on any claim or dispute related to the Plan, as provided in Section 8.5 of the Plan; and

          (d)          To exercise any and all other rights of the Employer under the Plan, in the Employer's sole discretion, without any limitation other than as expressly set forth in the Plan.

                    Employee agrees that any amendment or termination of the Plan shall automatically amend or terminate this Agreement, to the extent permitted by the Plan.

          11.          Amendments. Employee agrees that this Agreement may not be amended orally, but only in a written amendment authorized by the Company's Board of Directors and signed by the Plan Administrator.

 

                    IN WITNESS WHEREOF, the parties have signed this Agreement.

	
 
	
 
	
 
	
WOLVERINE WORLD WIDE, INC.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
Date:
	
 

	
 
	
By:
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Its:
	
 

	
 
	
 
	
 
	
 
	
"Employer"

	
 
	
 
	
 
	
 
	
 

	
Date:
	
 

	
 
	
 

	
 
	
 
	
 
	
"Employee"

EXHIBIT A - 2

WOLVERINE WORLD WIDE, INC.

409A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

PARTICIPATION AGREEMENT

                                                             ("Employee") has been notified by Wolverine World Wide, Inc. ("Employer") of the Employer's intent to designate the Employee as a Participant in the Wolverine World Wide, Inc. 409A Supplemental Executive Retirement Plan ("Plan"). Employer and Employee have signed this Agreement to effectuate Employee's Participant status and to agree on certain terms relating to Employee's Participant status. Therefore, Employer and Employee agree as follows:

          1.          Participation Date. Employee will become a Participant in the Plan effective                     , 20__. Employee agrees to be bound by the provisions of the Plan.

          2.          Years of Service. Employee's commencement date for purposes of computing Years of Service under the Plan is                                         . Employee currently has            Years of Service.

          3.          Average Earnings. Employee's current Average Earnings is $_________.

          4.          Designated Percentage. The Designated Percentage under Plan Section 5.1(a) is 2.0%.

          5.          Designated Period. The Designated Period under Plan Section 10.1 is 2 years.

          6.          Deferred Compensation Agreement. Employer and Employee agree that:

[Check one of the following]

	
 
	
o
	
There is no deferred compensation agreement in effect as described in Plan Section 5.4(a).
	
 

	
 
	
 
	
 
	
 

	
 
	
o
	
There is a Deferred Compensation Agreement dated in effect as described in Section 5.4(a) of the Plan and attached. Employee hereby relinquishes all rights under such Deferred Compensation Agreement, and agrees to look solely to the terms of the Plan with regard to any computation of a Minimum Benefit as provided in the Plan.
	
 

          7.          Form of Payment. The Participant accepts the presumed method of payment under the Plan (single life annuity, if single, or joint and 50% survivor annuity, if married) unless one of the following actuarially equivalent forms is selected:

	
 
	
o
	
5 Year Certain and Life
	
o
	
Joint and 100% Spouse Annuity

	
 
	
o
	
10 Year Certain and Life
	
 
	
 

          8.          Employment Relationship. Employee agrees that the Plan shall not be construed to create a contract of employment between the Employer and the Employee or to otherwise confer upon the Employee or other person a legal right to continuation of employment or any rights other than those specified herein. This plan shall not limit or affect the right of the Employer to discharge or retire the Employee.

          This Plan does not constitute a contract on the part of the Employer to employ Employee until age 65 or to continue his employment for any given period of time, either fixed or contingent. Moreover, Employee does not by this writing agree to continue in the employment of the Employer for any specified interval of time. The employment relationship, therefore, shall continue for so long as, but only for so long as, such employment is mutually satisfactory to both parties. The Employer does not promise that Employee's employment will be continued for such interval as to enable Employee to obtain all or any part of the benefits under this Agreement.

          9.          Confidentiality and Relationship. Employee agrees to refrain from divulging any information of a confidential nature including, but not restricted to, trade secrets, operating methods, the names of the Employer's customers and suppliers and the relations of the Employer with such customers and suppliers, or other confidential information; and to refrain from using or permitting the use of such information or confidences by any interests competitive with the Employer; irrespective of whether or not Employee is then employed by the Employer, and to refrain from including, and from causing inducements to be made to, the Employer's employees to terminate employment with the Employer or undertake employment with its competitors. The obligations herein assumed by Participant shall endure whether or not the remaining promises by either party remain to be performed or shall be only partially performed.

          10.          Acknowledgments. Employee acknowledges the Employer's rights to:

          (a)          Amend or terminate the Plan at any time, subject to Section 11.1 of the Plan; and

          (b)          To designate the Employee as an Inactive Participant at any time, as provided in Section 3.2 of the Plan; and

          (c)          To make final decisions on any claim or dispute related to the Plan, as provided in Section 8.5 of the Plan; and

          (d)          To exercise any and all other rights of the Employer under the Plan, in the Employer's sole discretion, without any limitation other than as expressly set forth in the Plan.

                    Employee agrees that any amendment or termination of the Plan shall automatically amend or terminate this Agreement, to the extent permitted by the Plan.

          11.          Amendments. Employee agrees that this Agreement may not be amended orally, but only in a written amendment authorized by the Company's Board of Directors and signed by the Plan Administrator.

                    IN WITNESS WHEREOF, the parties have signed this Agreement.

	
 
	
 
	
 
	
WOLVERINE WORLD WIDE, INC.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
Date:
	
 

	
 
	
By:
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Its:
	
 

	
 
	
 
	
 
	
 
	
"Employer"

	
 
	
 
	
 
	
 
	
 

	
Date:
	
 

	
 
	
 

	
 
	
 
	
 
	
"Employee"

          The following executive officers have a percentage benefit multiplier under the Supplemental Executive Retirement Plan (the "Plan") of 2.4% or 2.0%, as indicated below:

	
 
	
2.4%
	
 
	
2.0%
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
Stephen L. Gulis, Jr.
	
 
	
Nicholas P. Ottenwess
	
 

	
 
	
Blake W. Krueger
	
 
	
 
	
 

	
 
	
Timothy J. O'Donovan<PAGE>

                                                                   EXHIBIT 10.29

(COTT LOGO)

December 13, 2006

WITHOUT PREJUDICE

DELIVERED VIA EMAIL TO: hycoray@aol.com

B. Clyde Preslar

Dear Mr. Preslar:

Re: Cott Corporation ("Cott") - Termination of Employment Services

We are writing to notify you that your employment services with Cott are hereby
terminated without cause, effective December 1, 2006.

Cott appreciates your contribution to the corporation and with a view to
resolving all matters on an amicable basis, has prepared the following severance
arrangements, which are in accordance with your July 22, 2005 Employment
Agreement in the event of a without-cause termination.

The severance arrangements are as follows:

1.   DATE OF TERMINATION

The effective date of termination of services was December 1, 2006 (the
"Termination Date").

2.   ACCRUED SALARY AND VACATION PAY

You will be paid your salary and accrued vacation pay to the Termination Date.
These payments will be less applicable statutory deductions and withholdings and
paid in a lump-sum payment during the next pay period immediately following the
Termination Date.

3.   TERMINATION OF SERVICES PAYMENT AND OUT-PLACEMENT

We have agreed to pay you a lump-sum payment in connection with salary and bonus
entitlements equal to $1,485,000.00, less applicable statutory withholdings and
deductions, to be paid on the later of (a) a date that falls between January 1,
2007 and January 5, 2007 and (b) within five (5) business days following the
expiry of the revocation period as set out in section 11 (d) herein.

In addition, we will pay for the out of pocket cost of the following
outplacement services for a maximum of six (6) months with Right Management
Consultants: EXECUTIVE SERVICE

4.   BENEFITS

We confirm that all benefits entitlement ceases as of the Termination Date and
that you have no further entitlement to any benefits beyond the Termination Date
other than any rights under applicable law to purchase continuation coverage
under Cott's group health plan.

<PAGE>

5.   EXPENSES

To the extent that you have incurred any proper travel, entertainment or other
business expenses, you will be reimbursed in accordance with Cott's policy. All
expense reports must be submitted within 30 days of your Termination Date.

6.   STOCK OPTIONS/SHARE PURCHASE PLAN/401K PLAN

All of your rights with respect to vested stock options and vested performance
share units that you hold personally will continue after the termination of your
employment, subject of course to the provisions of the Cott's Restated 1986
Common Share Option Plan as amended (the "Option Plan"), for 60 days following
the Termination Date, and thereafter such options and share units shall be null
and void.

All other rights under Cott's share purchase plans and other long-term incentive
plans, including, without limitation, all rights to unvested shares under the
Cott Corporation Executive Incentive Share Purchase Plan, 401k Plan, and all
rights under Cott's Performance Share Unit Plan, shall terminate on the
Termination Date in accordance with those plans.

7.   NO OTHER PAYMENTS

The payments and other entitlements set out in this letter constitute your
complete entitlement and Cott's complete obligations whatsoever, including with
respect to the cessation of your employment, whether at common law, statute or
contract. For greater certainty, we confirm that you are not entitled to any
further payment (including any bonus payments), benefits, perquisites,
allowances or entitlements earned or owing to you from Cott pursuant to any
employment or any other agreement, whether written or oral, whatsoever, all
having ceased on the Termination Date without further obligation from Cott. All
amounts paid to you pursuant to this letter shall be deemed to include all
amounts owing pursuant to the Employment Standards Act, 2000, and such payments
represent a greater right or benefit than that required under the Employment
Standards Act, 2000.

8.   RESIGNATION & RELEASE

You will resign as an officer and director of Cott (and any direct and indirect
affiliates, subsidiaries and associated companies) with effect as of the
Termination Date. In this respect, you agree to execute and deliver the
Resignation Notice attached hereto as Schedule "1" and such further
documentation as may be required by Cott, in its sole discretion, in order to
effect this resignation. You agree to sign the Release in the form attached as
Schedule "2" to this letter, which as set forth in your Employment Agreement is
a condition precedent to any severance payments.

9.   YOUR CONTINUING OBLIGATIONS

          (a)  You will continue to abide by all of the applicable provisions of
               your Employment Agreement, and the "Confidentiality Undertaking
               and Restrictive Covenant" dated July 22, 2005 ("the
               Confidentiality Agreement"), which are intended to continue
               following the cessation of your employment, including but not
               limited to the Confidentiality, Non-Solicitation, and Non-
               Competition covenants provided in Articles 1 and 5 of the
               Confidentiality Agreement, which in the case of the
               confidentiality covenant continues forever, and in the case of
               the Non-Solicitation and Non-Competition covenants, will apply
               for a period of twenty-four (24) months from the Termination
               Date.

<PAGE>

          (b)  You are required to return forthwith to Cott all of the property
               of Cott in your possession or in the possession of your family or
               agents including, without limitation, other wireless devices and
               accessories, computer and office equipment, keys, passes, credit
               cards, customer lists, sales materials, manuals, computer
               information, software and codes, files and all documentation (and
               all copies thereof) dealing with the finances, operations and
               activities of Cott, its clients, employees or suppliers. You
               shall be entitled to retain your cell phone provided all ongoing
               usage charges and invoices relating thereto from the date hereof
               shall be from your own account. It is your responsibility to make
               all of the necessary arrangements to effect the transfer of the
               usage charges to your own personal account as soon as possible,
               and in any event, within 10 days from the Termination Date. Cott
               acknowledges that you have returned your blackberry and computer.

          (c)  You will maintain the severance arrangements as set out in this
               letter in the strictest confidence and will not disclose them
               except to your immediate family, or to the extent that such
               disclosure may be required by law, or to permit you to obtain tax
               planning, legal or similar advice. Cott will also keep the terms
               of the settlement confidential, except to Cott's professional
               advisors, or to the extent that such disclosure may be required
               by law.

          (d)  You will agree to cooperate reasonably with Cott, and its legal
               advisors, at Cott's request, direction and reasonable cost, in
               connection with: (i) any Cott business matters in which you were
               involved during your employment with Cott; or (ii) any existing
               or potential claims, investigations, administrative proceedings,
               lawsuits and other legal and business matters which arose during
               your employment involving Cott; (iii) effecting routine
               administrative compliance with respect to any regulatory
               requirements that were applicable to Cott during the period of
               your employment; and (iv) completing any further documents
               required to give effect to the terms set out in this letter with
               respect to which you have knowledge of the underlying facts.

10.  TAXES

All payments referred to in this letter will be less applicable withholdings and
deductions, and you shall be responsible for all tax liability resulting from
your receipt of the payment and benefits referred to in this letter, except to
the extent that Cott has withheld funds for remittance to statutory authorities.

                                                                               3

<PAGE>

11.  GENERAL

     (a)  Entire Agreement: The agreement confirmed by this letter and the
          attached schedules constitutes the entire agreement between you and
          Cott with reference to any of the matters herein provided or with
          reference to your employment or office with Cott, or the cessation
          thereof. All promises, representations, collateral agreements, offers
          and understandings not expressly incorporated in this letter agreement
          are hereby superseded and have no further effect.

     (b)  Severability: The provisions of this letter agreement shall be deemed
          severable, and the invalidity or unenforceability of any provision set
          out herein shall not affect the validity or enforceability of the
          other provisions hereof, all of which shall continue in accordance
          with their terms.

     (c)  Period of Review: You have twenty-one (21) days from the date set
          forth above to consider this letter agreement, including attachments.
          No change to this letter agreement, whether material or immaterial,
          will initiate a new twenty-one (21) day period. If you so desire, you
          may voluntarily and knowingly sign, but are not required to sign, this
          letter agreement before the end of the twenty-one (21) day period.

     (d)  Right to Revoke: You may revoke your acceptance of this letter
          agreement at any time before the end of the seventh day after your
          execution of the letter. In order for your revocation to be effective,
          you must provide written notice of your intent to revoke to Sher Zaman
          at the following address prior to the end of the seventh day after
          execution:

                                Cott Corporation
                        207 Queen's Quay West, Suite 340
                               Toronto, ON M5J 1A7

          You understand that, in the event you revoke this letter agreement, it
          shall be of no effect, and you shall forfeit all of the consideration
          which is being provided to you in exchange for their entering into
          this letter agreement, including but not limited to Cott's promise to
          make the payments described herein.

     (e)  Full Understanding: By signing this letter, you confirm that: (i) you
          have had an adequate opportunity to read and consider the terms set
          out herein, including the Release attached, and that you fully
          understand them and their consequences; (ii) you have been advised,
          through this paragraph, to consult with legal counsel and have
          obtained such legal or other advice as you consider advisable with
          respect to this letter agreement, inducting attachments; and (iii) you
          are signing this letter voluntarily, without coercion, and without
          reliance on any representation, express or implied, by Cott, or by any
          director, trustee, officer, shareholder, employee or other
          representative of Cott.

     (f)  Arbitration: In the event any dispute arises between you and Cott with
          respect to the interpretation, effect or construction of any
          provisions of this Agreement, either Cott or you may refer the matter
          to final and binding arbitration without right of

                                                                               4

<PAGE>

          appeal, pursuant to the Arbitration Act, Ontario, for the disputed
          matters to be determined by an arbitrator that is to be mutually
          agreed upon, upon written notice to the other, whereupon, subject to
          the availability of such an arbitrator, the arbitration hearing will
          commence within 30 days of the said notice, without formality, with
          the costs of the arbitration to be shared equally between the parties,
          subject to such order for costs as the arbitrator may determine in his
          or her sole discretion.

     (g)  Currency: All dollar amounts set forth or referred to in this letter
          refer to U.S. currency.

     (h)  Governing Law: The agreement confirmed by this letter shall be
          governed by the laws of the Province of Ontario, Canada.

                                      * * *

If this offer is acceptable to you once you have had an opportunity to review
it, please sign the acknowledgement below to confirm your acceptance of same and
return to Abilio Gonzalez.

If you have any questions regarding the terms set out in this letter, please
feel free to contact Abilio Gonzalez.

Yours very truly,

COTT CORPORATION

PER:

/s/ Abilio Gonzalez
-------------------------------------

Enclosures:

1. Schedule "1" - Resignation Notice

2. Schedule "2" - Release

Acknowledgement and Acceptance

I acknowledge having been provided at least twenty-one (21) days to review this
letter and the attached Release and Resignation Notice. I also acknowledge that
I have been advised, by this paragraph, and have had the opportunity to obtain
independent legal advice and that the only consideration for the Release is as
referred to in this letter. I confirm that no other promises or representations
of any kind have been made to me to cause me to sign this acknowledgement and
acceptance.

/s/ B. Clyde Preslar                    12/14/06
-------------------------------------   ---------------
B. Clyde Preslar                        Date

                                                                               5

<PAGE>

                                  SCHEDULE "1"

                               RESIGNATION NOTICE

TO:       COTT CORPORATION

AND TO:   ALL DIRECT AND INDIRECT AFFILIATES, SUBSIDIARIES AND ASSOCIATED
          COMPANIES THEREOF

AND TO:   ALL DIRECTORS THEREOF

I, B. CLYDE PRESLAR confirm my resignation as a director and from all offices
held by me of COTT CORPORATION, including all direct and indirect affiliates,
subsidiaries, and associated companies, with effect as of December 1, 2006.

                                        /s/ B. Clyde Preslar
                                        ----------------------------------------
                                        B. CLYDE PRESLAR

                                                                               6

<PAGE>

                                  SCHEDULE "2"

                                    RELEASE

FROM:   B. CLYDE PRESLAR ("PRESLAR")

TO:     COTT CORPORATION ("COTT"), ITS RESPECTIVE DIRECT AND INDIRECT
        AFFILIATES, ASSOCIATES, SUBSIDIARIES, PARENTS AND RELATED ORGANIZATIONS
        AND ALL OF THEIR RESPECTIVE PAST AND PRESENT SHAREHOLDERS, PARTNERS,
        DIRECTORS, OFFICERS, EMPLOYEES, CONTRACTORS, CONSULTANTS, AGENTS,
        REPRESENTATIVES, TRUSTEES, ADMINISTRATORS, ATTORNEYS AND INSURERS (ALL
        COLLECTIVELY REFERRED TO AS "RELEASEES")

1.   In consideration of the terms as set out in the letter from Cott to Preslar
     dated December 13, 2006 (the "Agreement"), the receipt and sufficiency of
     which consideration are hereby acknowledged, and except for the obligations
     owed to Preslar and referred to in the Agreement, Preslar hereby remises,
     releases and forever discharges Cott and the other Releasees of and from
     all manner of actions, causes of action, suits, debts, dues, accounts,
     bonds, contracts, liens, claims and demands whatsoever which against the
     Releasees he now has, ever had or hereafter can, shall or may have for or
     by reason of any cause, matter or thing whatsoever existing to the present
     time, and particularly and without limiting the generality of the
     foregoing, of and from all claims and demands of every nature and kind in
     any way related to or arising from Preslar's employment or other engagement
     with Cott or the termination of such employment, engagement or other
     agreements, including all damages, salary, remuneration, commission,
     vacation pay, overtime pay, termination pay, severance pay, notice of
     termination, profit-sharing, stock options or other equity, bonuses,
     proceeds of any insurance or disability plans, pension or retirement
     benefits, or any other fringe benefit or perquisite of any kind whatsoever
     and including any claims Preslar may have under any United States, Canada,
     state, province, or local statute or ordinance, including without
     limitation the U.S. Age Discrimination In Employment Act, the U.S. Civil
     Rights Acts of 1964 and 1991, the U.S. Family and Medical Leave Act ,the
     U.S. Employment Retirement Income Security Act ("ERISA "); the Florida
     Civil Rights Act of 1992; any contract or agreement (except the Agreement);
     and any common law principle. The payments, benefits, and other
     entitlements referred to in the Agreement arc deemed to satisfy all
     requirements or money owing under all applicable laws including without
     limitation, any and all wages, vacation pay, termination and severance pay
     under the Employment Standards Act, 2000.

2.   Preslar confirms that the Agreement has been entered into by the parties
     for the purposes of fully and finally settling and compromising all
     possible claims that Preslar might have against the Releasees and,
     therefore, in this respect, Preslar covenants and agrees not to file any
     complaint or initiate any proceeding under the Employment Standards Act,
     2000, under the Ontario Human Rights Code, under the Workplace Safety and
     Insurance Act, under the Occupational Health & Safety Act, under the Labour
     Relations Act, under the Pay EquiAct, or pursuant to any other applicable
     law or legislation, including the statutes and laws set forth and/or
     referenced in the preceding paragraph, in any jurisdiction governing or
     related to Preslar's employment or other engagement with Cott.

<PAGE>

     In the event that Preslar hereafter makes any claim or demand or commences
     or threatens to commence any action, claim or proceeding or to make any
     complaint against Cott in this respect, this Release may be raised as an
     estoppel and complete bar to any such action, claim or proceeding. Preslar
     confirms that he has no right to re-instatement, re-call or re-employment
     with any of the Releasees, and Preslar waives and releases all rights he
     had or may have had in this regard. This paragraph shall not release any
     rights that may not legally be waived.

3.   Preslar further agrees not to make or assist in the commencement of any
     claims (expressly including any cross-claim, counterclaim, third party
     action or application) against any other person or corporation who might
     claim contribution or indemnity against the persons or corporations
     discharged by this Release, including under the provisions of the
     Negligence Act or any other statute.

4.   With the exception of disclosure to Preslar's immediate family or to his
     legal or professional advisors (but provided any such person agrees not to
     disclose such information to any other person), Preslar agrees that the
     terms and contents of this Release, the consideration included in the
     Agreement, the contents of the negotiations and discussions resulting in
     this Release, and any dispute resolved by this Release, shall all remain
     privileged and confidential and shall not be disclosed except to the extent
     required by law or as otherwise agreed to in writing by Cott.

5.   This Release shall be binding upon Preslar and his heirs, executors,
     administrators, successors and assigns and shall ensure to the benefit of
     Cott and to the benefit of all of the Cott's heirs, executors,
     administrators, successors and assigns.

6.   Preslar acknowledges that he has had an opportunity to review this Release
     for no less than twenty-one (21) days and the right to revoke his
     acceptance of the Release for a period of seven (7) days after his
     execution of the Release. Preslar also acknowledges that he has been
     advised to and has in fact obtained independent legal advice and that the
     only consideration for this Release is as referred to above. Preslar
     further confirms that no other promises or representations of any kind have
     been made to Preslar to cause him to sign this Release.

7.   Preslar acknowledges that this Release, the settlement of any dispute
     between Preslar and Cott, or the payment of any monies to Preslar, shall
     not constitute an admission of liability on the part of Cott, which
     liability is denied.

8.   Preslar agrees that he alone shall be responsible for all tax liability
     resulting from his receipt of the payments referred to in the Agreement,
     except to the extent that Cott has withheld funds for remittance to
     statutory authorities. Preslar agree to indemnify and save Cott harmless
     from any and all amounts payable or incurred by Cott (save and except any
     penalties and interest that are attributable to Cott's not having deducted
     sufficient funds by its own direction) if it is subsequently determined
     that any greater amount should have been withheld in respect of income tax
     or any other statutory withholding.

9.   Notwithstanding the foregoing or anything herein to the contrary, this
     Release in no way releases Cott or any of the other Releasees from any
     indemnification obligations such

                                                                               2

<PAGE>

     party or parties may hereafter have with respect to Preslar as provided for
     in, and subject to all limitations of, the charter documents, by laws or
     other agreements or documents of such parties, or by law, as the case may
     be, as of the date hereof, all of which shall continue to at least the same
     extent as currently exist with respect to Cott's directors and/or most
     senior officers.

SIGNED, SEALED AND DELIVERED THIS 14TH DAY OF DECEMBER, 2006

/s/ Beverly S. Weaver                   /s/ B. Clyde Preslar
-------------------------------------   ----------------------------------------
Witness                                 B. CLYDE PRESLAR

                                                                               3

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