Document:

Exhibit

EXHIBIT 10.28
AMENDMENT 2019-1 
 
MERCURY GENERAL CORPORATION                                                                                         PROFIT SHARING PLAN 
WHEREAS, Mercury General Corporation (the “Company”) maintains the Mercury General Corporation Profit Sharing Plan (the “Plan”); 
WHEREAS, pursuant to Section 9.1 of the Plan, the Company is authorized to amend the Plan; and
WHEREAS, the Company desires to amend the Plan’s hardship distribution provisions to comply with certain provisions of the Bipartisan Budget Act of 2018.
NOW, THEREFORE, the Plan is amended, effective as of January 1, 2019, as follows:
1.    Subsection (a) of Section 7.2 of the Plan is amended to read as follows:
“(a)    Subject to the approval of the Committee and guidelines promulgated by the Committee, withdrawals from the Participant’s Compensation Deferral Account (including earnings thereon), Company Contributions Account, Employer Matching Contributions Account, ESOP Account and Rollover Account (collectively, his ‘Accounts’) may be permitted, subject to the approval of the Committee and guidelines promulgated by the Committee, to meet a financial hardship resulting from:
(1) Expenses for (or necessary to obtain) medical care that would be deductible under Section 213(d) of the Code, determined without regard to the limitations in Section 213(a) (relating to the applicable percentage of adjusted gross income and the recipients of the medical care);
 (2) Costs directly related to the purchase of a principal residence for the Participant (excluding mortgage payments);
 (3) Payment of tuition, related educational fees, and room and board expenses, for up to the next 12 months of post-secondary education for the Participant, for the Participant’s spouse, child or dependent (as defined in Section 152 of the Code without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B));
 (4) Payments necessary to prevent the eviction of the Participant from the Participant’s principal residence or foreclosure on the mortgage on that residence;
 (5) Payments for burial or funeral expenses for the Participant’s deceased parent, spouse, child or dependent (as defined in Section 152 of the Code without 

1

regard to section 152(d)(1)(B));
 (6) Expenses for the repair of damage to the Participant’s principal residence that would qualify for the casualty deduction under Section 165 of the Code (determined without regard to Section 165(h)(5) and whether the loss exceeds 10% of adjusted gross income); or
 (7) Expenses and losses (including loss of income) incurred by the Participant on account of a disaster declared by the Federal Emergency Management Agency (FEMA) under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 100-707, provided that the Participant’s principal residence or principal place of employment at the time of the disaster was located in an area designated by FEMA for individual assistance with respect to the disaster.
The Committee shall determine, in a non-discriminatory manner, whether a Participant has a financial hardship.  A distribution may be made under this Section 7.2(a) only if such distribution does not exceed the amount required to meet the immediate financial need created by the hardship and is not reasonably available from other resources of the Participant.”
2.    Subsection (c) of Section 7.2 of the Plan is deleted, and subsections (d) and (e) of Section 7.1 are redesignated as subsections (c) and (d), respectively.
3.    Subsection (c) of Section 7.2 of the Plan, as redesignated, is amended to read as follows:
“(c)    Effective January 1, 2019, any 6-month suspension of Compensation Deferrals still in effect with respect to a distribution made under this Section prior to January 1, 2019 shall cease.”
4.    Subsection (d) of Section 7.2 of the Plan, as redesignated, is amended to read as follows:
“(d)    A Participant shall not be permitted to make any withdrawals from his Accounts pursuant to this section until he has obtained all distributions, other than hardship distributions, currently available under all qualified profit sharing and retirement plans maintained by the Company or a Related Company.  However, a Participant is not required to obtain a loan prior to making a withdrawal under this section.”
IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Amendment 2019-1 to the Plan this 1st day of January, 2019.

2

MERCURY GENERAL CORPORATION

By: /s/ THEODORE STALICK
            
Its: Senior Vice President and Chief Financial Officer

3gpkexhibit1011201810k

                                                                  Management         Incentive               Plan                                                                                  PLAN DOCUMENT  As Amended and Restated as of December 5, 2016                                                                                                                                                        

 

                 MANAGEMENT INCENTIVE PLAN                                                                             Table of Contents                                               Section #                 Subject                  Page #      I     Plan Purpose                               3                                                            II     Eligibility                                3                                                            III    Financial Performance                     3-4                                                            IV     Award Determination and Approval           5                                                            V      Individual Performance Factors             5                 VI     Currency                                   5                                                            VII    Participation Level and New Participants   6                                                            VIII   Revisions to Plan                          6                 IX     Form and Timing of Awards                 6-7                                                            X      Employees on Leave                         7                                                            XI     Termination, Death or Disability           7                                                            XII    Other Plan Design Considerations           8                                                            XIII   Internal Revenue Code Section 409a         9      XIV    Clawbacks                                  9      XV     Effectiveness of Amendment & Restatement   9                                 

 

I.    PLAN PURPOSE:        The purpose of the Management Incentive Plan (the "Plan") is to offer a short-term incentive        award opportunity for eligible global employees (“Participants”) who make significant        contributions to the growth and profitability of Graphic Packaging Holding Company (together        with its subsidiaries, the "Company") and who demonstrate the performance that the        Company desires to encourage.  The Plan is designed to emphasize management’s        commitment to financial success and to a superior return on investment of its stockholders.         Each “Plan Year” for the Plan is January 1st to December 31st.    II.   ELIGIBILITY        Regular full-time and regular part-time salaried employees will be advised of their eligibility        for the Plan based on their position.  In addition, eligibility for participation in the Plan for a        Plan Year will be subject to the following conditions:        1.    Date of hire – A Participant must be employed by the Company on or before              September 30 of the Plan Year in a Salaried, eligible position;        2.    Active employment – A Participant must be an active employee on the date of the              management incentive plan payout or if not active, terminated under a status that              allows for payout;        3.    Performance – Participants must maintain at least a “Meets Expectations”              performance rating at the ending of the Plan Year to be eligible for payment of an              award for that year, regardless of corporate performance.  Sustained performance              problems may result in permanent disqualification of participation in the Plan.                      Company employees who work outside the United States or who are not paid on a U.S.-based        payroll (“International Employees”) are eligible to participate in the Plan to the extent        permitted under rules and guidelines for such participation as are established by the        Compensation and Benefits Committee.    III.  FINANCIAL PERFORMANCE:        The amounts of any award payouts under the Plan are substantially financially-driven and will        be based in large part on the results of the Company as a whole and/or any subsidiary,                                           3                                                                                                                                                                                                                      

 

affiliate or business unit of the Company, or a combination of these results. One or a  combination of the following performance measures may be used to measure such results:       Net earnings or net income (before or after taxes)       Earnings per share       Net sales growth       Net operating profit       Return measures (including, but not limited to, return on assets, capital, equity or        sales)       Cash flow (including, but not limited to, operating cash flow, free cash flow, and cash        flow return on capital)       Earnings before or after taxes, interest, depreciation and/or amortization       Gross or operating margins       Productivity ratios       Share price (including, but not limited to, growth measures and total shareholder        return)       Expense targets       Margins       Operating efficiency       Customer satisfaction       Working capital targets       Cost eliminations;       Debt reduction;       Employee engagement and cultural effectiveness; and       Ratios combining any of the performance measures.    The performance measures may, without limitation, be based upon the attainment of  specified levels of performance under one or more of the measures described above during  the Plan Year, relative to performance in prior periods, relative to pre-established targets, or  relative to the performance of other entities (or indices covering multiple entities).                                        4                                                                                                                                                                                                          

 

      Each Participant's incentive award opportunity for any given Plan Year is based on the specific        corporate performance measures established during the annual operating plan approval        process, and approved by the Company’s Compensation and Benefits Committee for that Plan        Year.    IV.   AWARD DETERMINATION AND APPROVAL:        The Plan is specifically designed to create substantial incentive opportunity for the        achievement of the Company’s most important financial goals and for continued service and        sustained effort through the date of payment of any award (the “Payment Date”). After the        conclusion of a Plan Year, the President and Chief Executive Officer (“CEO”) will make a        recommendation to the Compensation and Benefits Committee of Graphic Packaging Holding        Company regarding the payout under the Plan. This recommendation will be based upon the        President and CEO’s assessment of the degree to which the Company achieved the        performance measures applicable to that Plan Year and the degree to which each Participant        contributed to that achievement.  The Compensation and Benefits Committee approves the        percentage of target payout under the Plan and the award payout amounts for those officers        designated as Executive Officers by the Board of Directors, except for the President and CEO.        Separately, the Company’s Compensation and Benefits Committee will make a        recommendation to the full Board of Directors regarding the payout under the Plan for the        President and CEO.    V.    INDIVIDUAL AND TEAM PERFORMANCE FACTORS:        Award opportunities (before individual performance factors) range from 0% to 200% of an        individual’s target award.  Individual and team performance factors can further adjust a        Participant’s award payout by up to 20%, either up or down.  All adjustments to award        payouts based on individual performance factors are reviewed and approved by the President        and CEO.        VI.   CURRENCY:        All financial results will be stated on a U.S. dollar reporting basis for purposes of determining        actual performance against the applicable performance measures for any given Plan Year.                                             5                                                                                                                                                                                                                      

 

VII.  PARTICIPATION LEVEL AND NEW PARTICIPANTS:        Participation level is defined as the “target” incentive award opportunity provided to        Participants under the Plan.  Each Participant's approved participation level is determined and        communicated annually. The target incentive award opportunity is expressed as a percentage        of a Participant's annual base salary as of December 31 of the applicable Plan Year.          Participation level changes during the Plan Year will result in any awards earned being        calculated on a prorated basis for the number of days assigned to each participation level        during that Plan Year.          New Participants shall have any awards earned prorated by the number of days of        participation in their first Plan Year, subject to eligibility guidelines.    VIII. REVISIONS TO PLAN:        Revisions to applicable performance goals and the resulting payout percentage for any given        Plan Year may be considered to recognize circumstances beyond the control of Participants.         Such revisions will be rare in practice and only respond to extraordinary and unforeseeable        events.  It is understood that revisions may adjust for positive windfalls as well as negative        shortfalls. Revisions must be approved by the President and CEO of the Company, the        Compensation and Benefits Committee of the Board of Directors and the full Board of        Directors.    IX.   FORM AND TIMING OF AWARDS:        All awards under the Plan will be paid in cash and in local currency.  Awards will be subject to        all applicable social insurance, income tax and other withholding requirements effective at the        time of payment.          Awards paid to Participants in hyper-inflationary countries may be monetarily corrected to        adjust for currency devaluation between the close of the plan year and the award payment        date.                                              6                                                                                                                                                                                                                      

 

      All awards will be paid between January 2 and March 15 of the calendar year following the        close of each Plan Year.    X.    EMPLOYEES ON LEAVE:        Award payouts for employees who, during the plan year, have been on a paid or unpaid leave        of absence pursuant to the Family and Medical Leave Act (“FMLA”), the Company’s workers’        compensation program, the Company’s short term disability policy, or any other type of leave        will be prorated to exclude the time away from work.      XI.   TERMINATION, DEATH, OR DISABILITY:        Awards for a given Plan Year will be paid only to Participants who are actually employed on        the Payment Date.  A Participant whose employment terminates, whether by resignation or        by discharge, for any reason (or no reason) prior to the Payment Date for a Plan Year shall not        earn or have any right to an award from the Plan for such Plan Year and shall not be deemed        to have earned or become vested in any such award, except for Participants (i) who terminate        employment due to death, disability, or retirement (“retirement” for this purpose means an        employee whose age on the effective date of termination is at least 55 and whose        combination of age and years of service on that date is equal to or greater than 65); or (ii) who        are eligible for benefits under the Graphic Packaging International, Inc. Supplemental        Unemployment Benefits Plan or the Graphic Packaging International, Inc. Executive Severance        Plan, under Employment Agreements, and who sign and return (and do not revoke) a Release        under that Plan (“Special Circumstance Participants”). Under this provision, Special        Circumstance Participants may be paid a pro rata portion of any award earned based on their        date of termination, and all such prorated payments, if any, will be made at the time and in        the form received by all other Participants.  Notwithstanding the foregoing, any Participant        who is entitled to a payment in lieu of annual incentive compensation for the Plan Year upon        termination of employment under an employment agreement or any similar arrangement        with the Company shall not also be entitled to an award under the Plan for such year.                                                 7                                                                                                                                                                                                                      

 

XII.  OTHER PLAN DESIGN CONSIDERATIONS:        The Plan will be administered by the SVP-Human Resources.  Each determination of financial        performance or other action made or taken by the Compensation and Benefits Committee        hereunder will be final and conclusive for all purposes and upon all persons.            No Participant shall have the right to anticipate, alienate, sell, transfer, assign, pledge, or        encumber his or her right to receive any award payable under the Plan.          No Participant shall have any lien on any assets of the Company by reason of any award        payable under the Plan.          The Company specifically reserves the right to amend, modify, or terminate the Plan at any        time for any reason.  Neither the Plan nor any award under the Plan shall create any        employment contract or imply any relationship between the Company and any Participant,        other than employment terminable by either party at will.          The terms of the Plan are governed by the laws of the State of Georgia without regard to        conflict of laws principles.          The Company reserves the right for the President and Chief Executive Officer to recommend        to the Compensation and Benefits Committee and Board of Directors of Graphic Packaging        Holding Company that the Company increase, decrease, or eliminate any and all Plan awards,        including but not limited to any individual award, if, in the exercise of his business judgment,        such modifications would be in the best interest of the Company. The Board of Directors of        Graphic Packaging Holding Company (with respect to an award to the President and Chief        Executive Officer) and the Compensation and Benefits Committee (with respect to all other        awards) shall have absolute discretion in determining whether or not to issue an award and in        determining the amount of each award paid.                                                 8                                                                                                                                                                                                                      

 

XIII.   INTERNAL REVENUE CODE SECTION 409A:        The Plan is designed and intended to provide only for payments that are exempt from Section        409A of the Internal Revenue Code (the “Code”) under the exception in Treasury Regulation        Section 1.409A-1(b)(4) for certain short-term deferrals.  Nevertheless, if any amount under        the Plan is subject to 409A of the Code, the Plan shall be interpreted and administered so as        not to cause the acceleration of (or the imposition of additional) taxes provide for in Section        409A of the Code.    XIV.  CLAWBACKS:        Participants shall be required to forfeit or reimburse the Company with respect to any award        paid under the Plan to the extent required by any clawback or recoupment policy of the        Company now in effect or as may be adopted by the Company from time to time as required        by Section 304 of the Sarbanes-Oxley Act of 2002, Section 954 of the Dodd-Frank Wall Street        Reform and Consumer Protection Act, or as otherwise required by applicable law.    XV.   EFFECTIVENESS OF AMENDMENT AND RESTATEMENT:        The Management Incentive Plan as amended and restated as set forth herein, shall be        effective for the 2016 Plan year and thereafter until terminated or further amended by the        Board of Directors of the Company.                                           * * * *                                             9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}]]