Document:

Unassociated Document

Exhibit 10.4

AGREEMENT FOR PURCHASE AND SALE OF WESTERN PIPELINE CAPACITY

 

This Agreement for Purchase and Sale of Western Pipeline Capacity ("Agreement") is made and entered into this 19th  day of November , 2014, and is by and between Rangeview Metropolitan District, a quasi-municipal political subdivision of the State of Colorado ("Buyer") and Centennial Water & Sanitation District, Cottonwood Water and Sanitation District, Dominion Water & Sanitation District, Inverness Water & Sanitation District and Denver Southeast Suburban Water & Sanitation District d/b/a Pinery Water & Sanitation District, all quasi-municipal political subdivisions of the State of Colorado ("Sellers").

 

RECITALS

A. Sellers and Buyer are parties to the South Metro WISE Authority Formation and Organizational Intergovernmental Agreement ("Organizational Agreement"), the primary purpose of which is to create the South Metro WISE Authority ("Authority") to facilitate the WISE Project; and

B. Pursuant to Section 14 of the Organizational Agreement, Members of the Authority are authorized to sell and convey their rights in the WISE Project to one or more other Authority Members without restriction; and

 

C. The Authority is a party to the Purchase Agreement for the East Cherry Creek Valley Westem Pipeline and State Land Board Line ("Purchase Agreement") which defines assets purchased by the WISE Authority ("Western and SLB Pipelines").

D. The Sellers each hold a right to capacity in the Western and SLB Pipelines and WISE Asset Capacity as described in Exhibit A hereto ("Members Pipeline Capacity") and desire to sell portions of their respective Members Pipeline Capacity to Buyer; and

E. The Buyer desires to purchase a portion of the Sellers' Members Pipeline Capacity subject to the terms and conditions contained herein; and

F. The Buyer and the Sellers intend that this Agreement set forth their entire understanding and agreement regarding the terms and conditions upon which the Sellers are selling portions of their respective Members Pipeline Capacity to the Buyer. It is the intention of the parties that all prior negotiations, discussions, offers and agreements between them regarding the purchase of such rights be merged and incorporated in this Agreement, except as otherwise stated.

 

AGREEMENT

In consideration of the mutual promises and covenants herein contained, the Buyer and the Sellers agree as follows:

 

I .              Definitions. All capitalized terms in this Agreement not otherwise defined herein shall have the meaning as defined in the Organizational Agreement.

  

  

  

 

2. Sale of Members Pipeline Capacity. Subject to the terms of this Agreement, the Sellers agree to sell to Buyer the portion of their respective Members Pipeline Capacity described in Exhibit A (the "Purchased Shares") and transfer to the Buyer all rights and responsibilities of the individual Sellers associated with the Purchased Shares pursuant to the Organizational Agreement. Upon execution of this Agreement by the parties, Buyer shall have full use of the Purchased Shares and shall be fully responsible and pay when due all Authority operations and maintenance assessments, modifications assessments and other amounts due as calculated by the Authority and attributed to the Purchased Shares. The Buyer and Sellers shall notify the Authority of the new allocation of their respective Members Pipeline Capacity resulting from this Agreement as set forth in Exhibit A.

 

3. Purchase Price and Terms. The total purchase price for the Purchase Shares is One Million Three Hundred Eighty-one Thousand three Dollars and Sixty Seven Cents ($1,381,003.67). The purchase price shall be paid in installment payments by the Buyer to the Sellers with the first payment being made on or before December 1, 2015 and thereafter payments being made on or before December 1 of the next two years. The amount of the payments to each Seller shall be as set forth in the payment schedule in Exhibit A, attached hereto and incorporated herein ("Payments"). There shall be no pre-payment penalty for Payments made in advance of the schedule.

 

4. Payments.

a. Deposit of Funds. Payments shall be made on or before December 1 of each year (beginning in 2015) during the term of this Agreement. The Buyer may, at any time, prepay the total purchase price.

 

b. Good Funds. All amounts paid by the Buyer hereunder shall be in funds which comply with all applicable Colorado laws, which include cash, electronic transfer funds, certified check, savings and loan teller's check and cashier's check ("Good Funds") delivered as instructed by each Seller.

 

5. Term.

a. Duration of Agreement. This Agreement shall commence as of the date hereof. This Agreement shall run until December 1, 2017 ("Term"), or until all Payments have been made, unless otherwise extended or terminated pursuant to the terms hereof.

 

b. Termination of Agreement. This Agreement shall terminate upon the earliest of the following events:

(1) failure by the Buyer to make the Payments as set forth in Exhibit A and make the other allocated payments for the Purchased Shares as required under the Organizational Agreement and as set forth in Section 2 of this Agreement;

(2) the delivery of all Payment amounts and satisfaction of all requirements per this Agreement; or

(3) an uncured event of default by either party under this Agreement;

 

  

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(4)an uncured event of default by Buyer under the Organizational Agreement.

The parties shall give written notice of claim of default to the other party after which the defaulting party shall have thirty (30) days from receipt of notice to cure such default.

 

6. Remedies for Default.

a. Default By the Parties. Upon termination of this Agreement as a result of an uncured default by either of the Parties hereto pursuant to Section 5(b) above, any moneys received prior to such event by the Sellers shall be retained by the Sellers, and the Purchased Shares shall be allocated between Buyer and Sellers in proportion to the percentage of Payments that have been made. The Sellers shall receive back from Buyer the unpaid for Purchased Shares (pro rata in proportion to the relative amount sold as set forth in Exhibit A), and the parties shall notify the Authority of the allocation of Members Pipeline Capacity percentages resulting from such allocation. Buyer agrees to execute any documentation which may be required by the Authority to document the re-conveyance of the Purchased Shares and all related interests in the WISE project. If Buyer is in default, Buyer shall not receive any credit or refund for the costs or expenses paid by Buyer attributable to the use of the full Purchased Shares during the time prior to default. If Buyer has failed to make a payment required under this Agreement, Sellers may cure the default upon termination, but Buyer shall continue to be responsible to Sellers for any Late Fees or interest imposed by the Authority under the Organizational Agreement for late payment of costs. If Seller is in default, Buyer shall receive a refund for the costs and expenses paid by Buyer attributable to the use of the full Purchases Shares during the time of default but shall pay the pro-rated portion of such expenses based on the number of Purchased Shares it retains upon allocation of same after default per the above.

7. Representations. Covenants. and Agreements of the Sellers. The Sellers represent and covenant as follows:

a. Each of the Sellers is a political subdivision duly organized and existing under the Constitution and laws of the State of Colorado. Each of the Sellers has taken all necessary actions and is duly authorized to enter into this Agreement and to carry out its obligations hereunder.

b. There is no litigation or proceeding pending or, to the best of the Seller's knowledge, threatened against the Sellers affecting the right of each of the Sellers to execute this Agreement or the ability of the Sellers to take the actions required hereunder or to otherwise comply with the obligations contained herein.

 

c. The Sellers covenant and agree to comply with any applicable covenants and requirements set forth in the Organizational Agreement and to take such actions as necessary to facilitate the transfer of the Purchases Shares pursuant to the terms thereof.

 

8. Representations and Covenants of the Buyer.  The Buyer represents and covenants as follows:

 

a. The Buyer is a political subdivision of the State of Colorado which has the lawful authority to acquire the Purchased Shares from the Sellers.

 

  

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b. The Buyer shall not pledge or assign its right, title and interest in and to: (1) this Agreement; or (2) the Purchased Shares and attendant rights and obligations that may be derived under this Agreement or assign, pledge, mortgage, encumber or grant a security interest in its right, title and interest in, to and under this Agreement or the Purchased Shares until such time as all Payments have been made to Sellers.

c. There is no litigation or proceeding pending against the Buyer affecting the right of the Buyer to enter into this Agreement and perform its obligations hereunder or thereunder.

d. The Buyer shall be responsible for applying for, obtaining, and complying with any and all necessary requirements for the Buyer's use of the Purchased Shares under the Organizational Agreement and to take all actions necessary to facilitate the transfer of the Purchased Shares pursuant thereto.

 

9. No Encumbrance.  Mortgage,  or Pledge of the Purchased  Shares.  Except as may  be permitted by this Agreement, the Buyer shall not permit any lien mortgage or pledge to be established or remain against the Purchased Shares during the term of this Agreement. The Buyer shall not modify, amend or otherwise make any change in the nature or use of the Purchased Shares during the term of this Agreement without the Seller's written consent to same.

10. Future Cooperation. The Sellers and Buyers, for themselves, their respective agents, representatives and assigns, agree to provide to each other and the Authority, its agents, representatives, experts and attorneys, such information and documentation as may be reasonably necessary to implement this Agreement.

 

11. Waivers. The Buyer and the Sellers may waive any event of default under this Agreement and its consequences. In the event that any term of this Agreement is breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder, unless such Payment cures the non-payment of the Payment amount then due. Receipt of Payments by the Sellers shall not constitute a waiver of any then outstanding breach or default by the Buyer hereunder. Conversely, delivery of Payments by the Buyer shall not constitute a waiver of any then outstanding breach or default by the Sellers hereunder.

12. Notices. Notices under this Agreement and other mailings to the parties shall be sent to the parties at the address for notifications on file with the Authority and a copy of any notices hereunder shall be sent to the Authority.

13. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto.

14. Anti-Merger Clause. This Agreement shall not merge with the Organizational Agreement referenced herein or any other agreement.

15. Execution. This Agreement may be executed in duplicate originals as of the date first above written. When each party has executed a copy thereof, such copies taken together shall be deemed a full and complete agreement between the parties. The date last signed by either party shall be the execution date.

 

  

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16. Agents. The Sellers warrant that they have not retained any real estate broker or real estate agent who would be due a commission or other fee as a result of the closing of this transaction. The Buyer warrants that no commission is due to any broker from the Agreement amount contained herein.

17. Modification of Agreement. No subsequent modification of any of the terms of this Agreement shall be valid or enforceable unless made in writing and signed by both parties hereto.

18. No Third Party Beneficiaries. It is expressly understood and agreed that enforcement of the terms and conditions of this Agreement, and all rights of action relating to such enforcement, shall be strictly reserved to the Buyer and the Sellers and their respective successors and assigns, and nothing contained in this Agreement shall give or allow any such claim or right of action by any other or third person on this Agreement. It is the express intention of the Buyer and the Sellers that any person other than the Buyer or the Sellers receiving services or benefits under this Agreement shall be deemed to be an incidental beneficiary only.

19. Payments Due on Holidays. If the date for making any Payment or the last day for performance of any act or the exercising of any right, as provided in this Agreement, shall be a day other than a business day, such payment may be made or act performed or right exercised on the next succeeding business day, with the same force and effect as if done on the nominal date provided in this Agreement.

20. Captions. The captions or headings herein are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement.

21. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Colorado.

22. Entire Agreement. This Agreement constitutes the entire understanding between the parties relating to the subject thereof and any prior agreements pertaining thereto, whether oral or written, have been merged and integrated into this Agreement.

 

 

  

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SELLERS:

	
CENTENNIAL WATER & SANITATION DISTRICT

 

 

BY: /s/ John Kaufman                                                                

 

 

	
COTTONWOOD WATER AND

SANITATION DISTRICT

 

 

BY: /s/ Patrick Mulhern                                                               

 

	
DENVER SOUTHEAST SUBURBAN

WATER AND SANITATION DISTRICT

d/b/a PINERY WATER AND

WASTEWATER DISTRICT

 

 

BY: /s/ Charlie Krogh                                                                

 

	
DOMINION WATER AND SANITATION DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado, acting by and in its capacity as a water activity enterprise pursuant to Article 45.1, Title 37, C.R.S.

 

 

BY: /s/ Harold Smethills                                                               

 

 

	
INVERNESS WATER & SANITATION

DISTRICT

 

 

BY: /s/ Patrick Mulhern                                                               

 

	  

 

 

BUYER:

RANGEVIEW METROPOLITAN DISTRICT

 

BY: /s/ Mark Harding                                                                

 

  

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EXHIBIT A

 

 

	
 

Entity

	
 

WISE Assets Capacity to be Purchased by Rangeview

	
 

Cost of Wise Assets Capacity Purchased

	
 

3 annual payments of

	
 

Capacity purchased by Rangeview each year

	
 

WISE Assets Capacity prior to Rangeview purchase

	
WISE Assets capacity  share after Rangeview purchase

	
CWSD

	
1.183725142%

	
$370,739.24

	
$123,579.75

	
0.394575047%

	
13.386587491%

	
12.202862349%

	
Cottonwood

	
0.473490057%

	
$148,295.70

	
$49,431.90

	
0.157830019%

	
5.354634997%

	
4.881144940%

	
DWSD*

	
1.568435814%

	
$491,229.49

	
$163,743.16

	
0.522811938%

	
4.007852220%

	
2.439417416%

	  	  	  	  	  	  	  
	
Inverness

	
0.591862571%

	
$185,369.62

	
$61,789.87

	
0.197287524%

	
6.693293746%

	
6.101431175%

	
Pinery

	
0.591862571%

	
$185,369.62

	
$61,789.87

	
0.197287524%

	
6.693293746%

	
6.101431175%

	
Rangeview

	
n/a

	
n/a

	
n/a

	
n/a

	
1.692055020%

	
6.101431175%

	TOTAL 	 
4.409376155%

	 
$1,381,003.67

	 
$460,334.56 

	 
1.469792052%

	 	 

 

* Dominion Water and Sanitation District has an option to purchase  13.72938% from Castle Rock pursuant to lease purchase agreement between  Dominion and Castle Rock. which is not reflected  in the above table.ATU-2014.11.30 Exhibit 10.1

Exhibit 10.1
ACTUANT CORPORATION
OUTSIDE DIRECTORS’ DEFERRED COMPENSATION PLAN
(Conformed through the Second Amendment)
Actuant Corporation, a Wisconsin corporation, maintains the Actuant Corporation Outside Directors’ Deferred Compensation Plan (the “Plan”) for the benefit of non-employee Directors of the Company, to provide such Directors with certain deferred compensation benefits.  
The Plan is designed to comply with the American Jobs Creation Act of 2004, as amended (the “Jobs Act”), and Section 409A of the Code, and final Treasury regulations issued thereunder, with respect to Non-Grandfathered Amounts under the Plan.  “Grandfathered Amounts” shall mean the portion of the Participant’s Deferred Shares Account balance under the Plan (as defined below) as of December 31, 2004, the right to which was earned and vested (within the meaning of Treasury Regulation §1.409A-6(a)(2)) as of December 31, 2004, plus the right to future contributions to the Account the right to which was earned and vested (within the meaning of Treasury Regulation. §1.409A-6(a)(2)) as of December 31, 2004, to the extent such contributions are actually made, each determined by reference to the terms of the Plan in effect as of October 3, 2004, but only to the extent such Plan terms have not been materially modified (within the meaning of Treasury Regulation §1.409A-6(a)(4)) after October 3, 2004.  Grandfathered Amounts shall include any earnings (within the meaning of Treasury Regulation. §1.409A-1(o)) attributable thereto.  “Non-Grandfathered Amounts” shall mean the Participant’s Account balance under the Plan less any portion of the Participant’s Deferred Shares Account balance under the Plan constituting Grandfathered Amounts.   Prior to January 1, 2009, it is intended that the Plan be interpreted according to a good faith interpretation of the Jobs Act and Section 409A of the Code, and consistent with published guidance thereunder, including, without limitation, IRS Notice 2005-1 and the proposed and final Treasury regulations under Section 409A of the Code.  Treatment of amounts deferred under the Plan pursuant to and in accordance with any transition rules provided under all IRS published guidance and other applicable authorities in connection with the Jobs Act or Section 409A of the Code, including, without limitation, the adoption of the transition rules prescribed under Q&As 20 and 21 of IRS Notice 2005-1, shall be expressly authorized hereunder and shall be administered in accordance with procedures established by the Company or the Committee, as the case may be.  In the event of any inconsistency between the terms of the Plan and the Jobs Act or Section 409A of the Code with respect to Non-Grandfathered Amounts, the terms of the Jobs Act and Section 409A of the Code shall prevail and govern.
Section 1.Definitions
The following words and terms shall have the indicated meanings wherever they appear in the Plan:
		
	1.1
	“Annual Deferral Amount” shall mean that portion of a Participant’s compensation that Participant elects to have and is actually deferred for any annual term of office.

		
	1.2
	“Board of Directors”, “Directors” or “Director” shall mean, respectively, the Board of Directors, the Directors or a Director of the Company.

		
	1.3
	“Committee” shall mean the Compensation Committee of the Board of Directors. The plan shall be administered by the Committee, as provided in Section 6.3.

		
	1.4
	“Company” shall mean Actuant Corporation

		
	1.5
	“Deferred Shares” shall mean the notional shares credited to Deferred Shares Accounts.  The Market Price of Deferred Shares shall be equal to the Market Price of Shares.

		
	1.6
	“Deferred Shares Account” or “Account” shall mean the separate account established under the Plan for each Participant, as described in Section 3.2.

		
	1.7
	“Market Price” shall mean the closing sale price for Shares on a specified date or, if Shares were not then traded, on the most recent prior date when Shares were traded, all as is quoted in The Wall Street Journal reports of New York Stock Exchange Composite Transactions.

		
	1.8
	 “Participant” shall mean each Director of the Company who participates in the Plan in accordance with its terms and conditions.

		
	1.9
	“Plan” shall mean the Actuant Corporation Outside Directors’ Deferred Compensation Plan as set forth herein, or as it may be amended from time to time by the Board of Directors.

		
	1.10
	“Plan year” shall mean the calendar year.

		
	1.11
	“Shares” shall mean shares of Common Stock of the Company.

		
	1.12
	“Short-Term Payout” shall mean the payout set forth in Section 4.

		
	1.13
	“Treasurer” shall mean the Treasurer of the Company who shall have responsibility for those functions assigned under the Plan.

Section 2.    Participation
		
	2.1
	Each Director who receives compensation under Section 3.1 is eligible to participate in the Plan.  The effective date for his/her eligibility for participation in the Plan shall be the time of his/her first election as a Director for the ensuing term.   

		
	2.2
	(a)    Each eligible Director may elect to participate in the Plan in such form and manner as will be determined by the Committee.   
 
(b)    Any election by the Director to participate in the Plan must be made (i) within the first 30 days after the Director first becomes eligible to participate in the Plan (within the meaning of Treasury Regulation §1.409A-2(a)(7)(ii)) with respect to compensation paid for services to be performed after the election, or (ii) if that 30-day period has expired, no later than the December 31 preceding the year in which the Director will earn the compensation to be deferred (or such earlier date as determined by the Committee).  Such election shall remain in effect until the end of the calendar year for which the Director’s election is applicable.  In the event that the Director does not timely elect by December 31 of a given calendar year to participate in such manner as shall be determined by the Committee, s/he shall be deemed to have elected to defer no compensation during the subsequent calendar year, and such deemed election shall be irrevocable for that subsequent calendar year.

Section 3.    Compensation Deferred
		
	3.1
	A Participant may elect that the payment of all or a specified portion of the compensation otherwise payable to him in cash for services as a Director be deferred pursuant to the terms of this Plan.  Such compensation includes retainer fees but does not include travel expense allowance or any other expense reimbursement.  

		
	3.2
	(a)  A Deferred Shares Account shall be established for each Participant which shall be notionally credited with the number of Shares that could be acquired with the amount deferred by the Participant under Section 3.1 above.

(b)  In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering or any other change in the corporate structure or Shares of the Company, the Committee shall make such adjustment, if any, as it may deem appropriate in the number and kinds of Deferred Shares credited to the Deferred Shares Account.

		
	3.3
	Each Participant will receive a statement of the balance in his/her Account not less frequently than annually.

Section 4.    Short Term Payout
		
	4.1
	At the same time and in the same manner as a participant makes his/her election to defer his/her compensation into the Plan, all as determined by the Committee,  a participant may elect to receive a future Short-Term Payout from the Plan with respect to the Annual Deferral Amount.  The Short-Term Payout shall be a lump sum distribution of Shares equal to the number of the Deferred Shares in the Deferred Shares Account.  Subject to the other terms and conditions of this Plan, each Short-Term Payout elected shall be paid within 60 days of the earlier of (i) the date selected by the Participant (which must be at least 5 years from the first day of the Plan Year for which the Director’s deferral election is effective, or (ii) the date the Participant ceases to be a Director. 

Section 5.    Payment of Deferred Compensation
		
	5.1
	Upon the termination of a Participant’s services as a Director, and except as provided in Section 4.1, the payment of the Deferred Shares remaining in his/her Deferred Shares Account shall commence within 60 days following the date the Participant ceases to be a Director and shall be paid in accordance with the method elected by the Participant in such form and manner as determined by the Committee, as provided in Section 5.2.

		
	5.2
	Subject to Section 2.2 and this Section 5, and except as provided in Section 4.1 a Participant may elect any of the following methods of payment of the balance or balances in his/her Account:

(a)  a lump sum distribution of Shares equal to the number of Deferred Shares in such account on the last business day before such payment, plus a cash payment equal to the amount of any excess which it has not been possible to convert into Deferred Shares in accordance with Section 3.2(a); or
(b) distributions in annual installments for a term of five or ten years, in each case in Shares equal to the number of Deferred Shares in such Account on the last business day before such distribution. The installment shares will be calculated by prorating the total number of Deferred Shares in the Deferred Shares Account equally over the applicable payout period. The first such payment shall be made in the calendar year following the year in which the Participant’s services as a Director are terminated, and the last such payment will include a cash payment equal to the amount of any excess which it has not been possible to convert into Deferred Shares in accordance with Section 3.2(a) as well as the dividends earned on the undistributed Deferred Shares during the installment payout period.
		
	5.3
	In the event of a Participant’s death before the balance in his/her Account is fully paid out, payment of such balance shall be made to the beneficiary or beneficiaries designated by the Participant in accordance with Section 5.5 or, if the Participant has made no such designation or no beneficiary survives, to the Participant’s estate.  In either case, such payment shall be made in the same manner as provided with respect to payments to the Participant.

		
	5.4
	To the extent required by law in effect at the time any distribution is made from the Plan, the Company shall withhold any taxes and such other amounts required to be withheld by Federal, state or local governments.  Further, to the extent required by law, the Company shall report amounts deferred and/or amounts taxable under the Plan to the appropriate governmental authorities, including, without limitation, to the United States Internal Revenue Service.

		
	5.5
	Each Participant may, pursuant to such procedures as the Committee may specify, designate one or more beneficiaries.  A Participant may designate different beneficiaries (or may revoke a prior beneficiary designation) at any time by delivering a new designation (or revocation of a prior designation) in like manner.  Any designation or revocation shall be effective only if it is received by the Committee.  However, when so received, the designation or revocation shall be effective as of the date the notice is executed (whether or not 

the Participant still is living), but without prejudice to the Committee on account of any payment made before the change is recorded.  The last effective designation received by the Committee shall supersede all prior designations and shall apply to all amounts remaining in the Participant’s Account.  If a Participant dies without having effectively designated a beneficiary, or if no beneficiary survives the Participant, the Participant’s Account shall be payable to his or her surviving spouse, or, if the Participant is not survived by his or her spouse, the Account shall be paid to his or her estate.  If any individual to whom a benefit is payable under the Plan is a minor or legally incompetent, the Company or the Committee shall determine whether payment shall be made directly to the individual, any person acting as his/her custodian or legal guardian under the Uniform Transfers to Minors Act, his/her legal representative or a near relative, or directly for his/her support, maintenance or education.  Any payment made in accordance with the preceding sentence shall be a complete discharge of any and all obligations to make such payment under the Plan on behalf of such individual.
		
	5.6
	Each Participant and (in the event of death) his/her Beneficiary shall keep the Company advised of his/her current address.  If the Company is unable to locate a Participant to whom a Participant’s Account is payable under this Section 5, the Participant’s Account shall be held in suspense pending location of the Participant, without any prejudice to the Committee or the Company (and each of their respective authorized delegates), as the case may be, including, without limitation, for any additional tax liability resulting from such delay in payment.  If the Company is unable to locate a Beneficiary to whom a Participant’s Account is payable under this Section 5 within six (6) months (or, with respect to a Participant’s Non-Grandfathered Amounts, such other period during which payment must commence under this Section 5 or, if later, such other period permitted under Section 409A of the Code) of the Participant’s death, the Participant’s Account shall be paid to the Participant’s estate.

		
	5.7 
	An amount equal to the number of Deferred Shares in the Participant’s Account multiplied by the dividend (if any) paid on Shares on each dividend payment date shall be credited to the Participant’s Account in the form of additional Deferred Shares as soon as practicable following the dividend payment date of such Shares.

Section 6.    General
		
	6.1
	The Company shall establish a rabbi trust (the “Trust”) to fund its future liability under the Plan.  The Plan terms shall govern the rights of a Participant to receive distributions from the Plan.  The Trust terms shall govern the rights of the Company, Participants and the creditors of the Company to the Trust assets.  Participants and their beneficiaries shall have no legal or equitable rights, interests or claims in any property or assets of the Company.  The right of any Participant or beneficiary to receive payment of any unpaid balance in any Account of the Participant shall be an unsecured claim against the general assets of the Company.

		
	6.2
	During a Participant’s lifetime, any payment under the Plan shall be made only to him/her.  No sum or other interest under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt by a Participant or any beneficiary under the Plan to do so shall be void.  No interest under the Plan shall in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts of a Participant or beneficiary entitled thereto.

		
	6.3
	Except as otherwise provided herein, the Plan shall be administered by the Committee which shall have the authority, subject to the express provisions of the Plan, to adopt, amend and rescind rules and regulations relating to the Plan, and to interpret, construe and implement the provisions of the Plan.  Notwithstanding the foregoing, the Committee shall retain and exercise such discretion reserved hereunder only to the extent such retention and exercise of discretion does not violate the requirements of Section 409A of the Code with respect to a Participant’s Non-Grandfathered Amounts.  The Committee shall have the power to delegate to any one or more of its members or to any other person, jointly or severally, the authority to perform for or on behalf of the Committee any one or more functions of the Committee under the Plan, as permitted under Section 409A of the Code and any other applicable laws.

		
	6.4
	The Plan may at any time or from time to time be amended, modified, or terminated by the Board of Directors, provided that no amendment, modification or termination shall (a) adversely affect the balance in a Participant’s Deferred Shares Account without his/her consent or (b) permit payment of such balance prior to the date specified pursuant to Sections 4.1 and 5.2 (except for payments provided in Section 6.5) without his/her consent.

		
	6.5
	If the Plan is terminated pursuant to this Section 6, the balances credited to the Accounts of the affected Participants shall be distributed to them at the time and in the manner set forth in Section 5; provided, however, that the Committee, in its sole discretion, may authorize accelerated distribution of Participants’ Accounts as of any earlier date; provided that with respect to Non-Grandfathered Amounts, such discretion reserved to the Committee to accelerate the form and timing of the distribution of Participants’ Accounts shall be exercised only to the extent the termination of the Plan arises pursuant to and in accordance with one of the following provisions:

(a)    Corporate Dissolution or Bankruptcy.  The Plan is terminated and liquidated by the Company within 12 months of a corporate dissolution taxed under Section 331 of the Code, or with the approval of a bankruptcy court pursuant to Section 503(b)(1)(A) of the Bankruptcy Code, provided such amounts are included in the Participants’ gross incomes in the latest of the following years (of, if earlier, the taxable year in which such amounts are actually or constructively received) (i) the calendar year in which the Plan is terminated and liquidated, (ii) the first calendar year in which amounts are no longer subject to a substantial risk of forfeiture, or (iii) the first calendar year in which the payment is administratively practicable.
(b)    Change of Control Event.  The Company takes irrevocable action to terminate and liquidate the Plan within the 30 days before or 12 months after the occurrence of a Change of Control (as defined in Section 409A of the Code and the regulations thereunder), provided that all other plans sponsored by the Company after the Change of Control with which the Plan is required to be aggregated under Section 409A of the Code are terminated and liquidated with respect to each Participant that experienced the Change of Control, so that all such Participants are required to receive a distribution of the amounts deferred under the Plan and such aggregated plans within 12 months of the date the Company took such irrevocable action to terminate and liquidate all such aggregated plans.
(c)    Termination of All Similar Arrangements.  The Plan is terminated and liquidated by the Company, provided (i) the termination and liquidation does not occur proximate to a downturn in the financial health of the Company; (ii) the Company terminates and liquidates all other plans required to be aggregated under Section 409A if the same Company had deferrals of compensation under all such aggregated plans, (iii) no payments are made on account of the terminations (other than payments that would have been payable in the absence of the plan terminations) within 12 months of the date the Company takes irrevocable action to terminate and liquidate all such aggregated plans, (iv) all payments are made within 24 months of the of the date the Company takes irrevocable action to terminate and liquidate all such aggregated plans, and (vi) within three years following the date the Company takes irrevocable action to terminate and liquidate all such aggregated plans, the Company does not establish any new nonqualified deferred compensation plans that would otherwise have been aggregated with the Plan under Section 409A of the Code if the same Participant participated in both plans.
(d)    Other.  The Plan is terminated and liquidated pursuant to and in accordance such other events and conditions prescribed under Section 409A of the Code.
6.6    The Company shall, and hereby does, indemnify and hold harmless the Committee, the Company, and the members of the Committee (and each of their respective authorized delegates), from and against any and all losses, claims, damages or liabilities (including attorneys’ fees and amounts paid in settlement of any claim) arising out of or resulting from the implementation of a duty, act or decision with respect to the Plan, so long as such duty, act or 

decision does not involve gross negligence or willful misconduct on the part of the Committee, the Company, or any such member of the Committee.

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