Document:

Exhibit

Exhibit 10(c)
KIMBALL SEVERANCE BENEFITS PLAN SUPPLEMENT
A.  Introduction

Kimball International, Inc. (the "Company") has established and restated, effective as of July 1, 2014, the Kimball Severance Benefits Plan (the "Plan") to provide severance benefits to Eligible Employees who lose their jobs under certain circumstances.  The Company also restates, also effective as of July 1, 2014, this Kimball Severance Benefits Plan Supplement (the "Supplement") to provide, for Designated Employees, severance benefits greater than the severance benefits otherwise available to participants in the Plan.  As provided in Section 3 of the Plan, this Supplement is part of the Plan, and the benefits provided under this Supplement are subject to all the terms of the Plan, except as otherwise expressly provided in this Supplement.
The Supplement uses certain defined terms that appear as capitalized words or phrases.  When you encounter a capitalized word or term, you should turn to the Plan Glossary or to the Supplemental Glossary (Section C) to find its meaning.
B.  Enhanced Severance Benefits

1.Severance Benefits.  Instead of Severance Benefits provided under Section B.1. of the Plan, you will receive the Enhanced Severance Benefits described in this section if you experience a Qualifying Termination as a Designated Employee and satisfy the following additional conditions: (i) remain employed until the termination date selected by the Company; (ii) timely sign a Release Agreement acceptable to the Company; and (iii) do not revoke the Release Agreement during the Revocation Period:
(a)Enhanced Severance Pay.  If you incur an initial Qualifying Termination as a Designated Employee, the amount of your enhanced severance pay will equal one weeks of Base Pay for each week of your Enhanced Severance Period.  If the Qualifying Termination also entitles you, under the laws of a foreign country, to severance benefits or similar compensation, your severance pay under this Supplement will be reduced by the equivalent amount of your foreign severance benefits.  You will receive the severance pay in a single payment as soon as administratively feasible after signing, without revoking, the Release Agreement.
(b)Enhanced Medical Insurance.  If you are covered by the Company's medical insurance plan at the time of a Qualifying Termination, the Company will pay you, as an Enhanced Medical Insurance Allowance, an amount equal to the product of (i) the number of weeks in your Enhanced Severance Period and (ii) the weekly COBRA premium amount for the coverage you had immediately before termination.  The Company will also pay you a special reimbursement amount equal to your expected income tax liability, as determined by the Plan Administrator in its sole discretion, on the sum of the Enhanced Medical Insurance Allowance and the special reimbursement amount.  You will receive the Enhanced Medical Insurance Allowance and the special reimbursement amount in a single payment as soon as administratively feasible after termination.
(c)Bonus.  As soon as feasible following termination, the Company will pay you any deferred and unpaid bonus amounts due for the fiscal year immediately preceding your termination and a prorated amount of the bonus at Target for the bonus period in which your termination date 

occurs.  The prorated bonus payment will be in an amount equal to the product of (i) the bonus at Target for the bonus period and (ii) a fraction, the numerator of which is the number of days from the first day of the bonus period to your termination date, and the denominator of which is the number of days in the bonus period.
(d)Outplacement Assistance.  To assist you in obtaining replacement employment, the Company will reimburse you for the cost, up to a maximum reimbursement amount, of outplacement services during the first twelve months following your termination.  The Plan Administrator will establish, and notify you personally, of the maximum reimbursement amount that applies to your position.
(e)Acceleration of Rights and Payment.  
(1)     Incentive Plan Rights.  As of your termination date, (i) your Options and related Stock Appreciation Rights awarded under the Amended and Restated 2003 Stock Plan (the “2003 Stock Plan”) or its replacement will become fully vested and payable as provided in this Plan; (ii) the Restricted Period will end for your Restricted Shares awarded under the 2003 Stock Plan; (iii) your Deferred Share Units (also referred to as "Restricted Stock Units") awarded under the 2003 Stock Plan will become fully vested and payable; (iv) you will become entitled to payment at Target for all Performance Shares or Performance Units awarded under the 2003 Stock Plan; and (v) you will become entitled, under the Amended and Restated 2010 Profit Sharing Incentive Bonus Plan or its replacement (the “Incentive Bonus Plan”), to receive any bonus payments due for the fiscal year immediately preceding the Termination Date and a prorated share of bonus payments for the fiscal year in which the Termination Date occurs.  As soon as practicable following the Termination Date and signing of Release Agreement without revoking, the Company will make a single payment to you equal to the aggregate Value of all benefits under the plans identified in this subsection (1), in the form of cash, Shares, or a combination of cash and Shares, as determined by the Compensation Committee of the Board of Directors, or its designee, in its sole discretion.  That single payment will constitute payment in full and complete satisfaction of your rights and benefits under all of your award agreements and the applicable plans.
(2)     SERP Rights.  As of the Termination Date, you will become fully vested in the Makeup Contributions Account in the Supplemental Employee Retirement Plan and will receive all benefit amounts under that plan in accordance with your payment elections previously made under that plan, as soon as practicable following your employment termination.  
(3)     Amendment of Award Agreements.  To the extent that the provisions of this subsection are inconsistent with the provisions of your Award Agreements, those Award Agreements are amended, upon your execution of the Release Agreement, to include the provisions of this subsection, which supersede any inconsistent provisions of the Award Agreements.  
C.  Supplemental Glossary
Wherever used in this document, the following terms have the following meanings, unless a different meaning is clearly indicated by the context.

Designated Employee means an Employee selected by the Plan Administrator for coverage under this Supplement.
Enhanced Medical Insurance Allowance means the medical insurance allowance described in Section B.1(b).
Enhanced Severance Benefits means the benefits described in Section B.1.
Enhanced Severance Period means, with respect to a Designated Employee, the number of weeks, subject to a minimum of four weeks and a maximum of 26 weeks, equal to the product of (i) two and (ii) the Designated Employee's Years of Service.
Shares means unrestricted shares of the Company's publicly-traded common stock (KBAL or its replacement) awarded pursuant to the 2003 Stock Plan.
Target means the Tier IV economic profit performance level as defined in the Company’s Amended and Restated 2010 Profit Sharing Incentive Bonus Plan or the equivalent in any successor plan.
Value means, with respect to plan benefits, the following amounts, computed without regard to any termination of rights that would otherwise occur under the applicable plan because of Designated Employee's cessation of continuous service as of that determination date: (i) for Designated Employee's Options and related Stock Appreciation Rights awarded under the 2003 Stock Plan, the excess, if any, of (A) the Market Value as of the determination date of all Shares subject to Designated Employee's option awards over (B) the aggregate exercise price for those Shares under those option awards; (ii) for Designated Employee's Restricted Shares awarded under the 2003 Stock Plan, the Market Value of those Shares as of the determination date; (iii) for Designated Employee's Deferred Share Units awarded under the 2003 Stock Plan, the product of (A) the number of Designated Employee's Deferred Share Units and (B) the sum of the Market Value of a Share as of the determination date and all dividends credited on a Share as of that date under the applicable award agreement; (iv) for Designated Employee's Performance Shares awarded under the 2003 Stock Plan, the Market Value of the Shares as of the determination date; (v) for Designated Employee's Performance Units awarded under the 2003 Stock Plan, the product of (A) Designated Employee's Performance Units and (B) the Market Value of Share as of the determination date; and (vi) for Designated Employee’s benefits under the Amended and Restated 2010 Profit Sharing Incentive Bonus Plan, the cash value of those benefits.  For purposes of this definition, the term "Market Price" has the same meaning as the term “Market Value” defined in the 2003 Stock Plan.EXHIBIT 10.1

 

 

MORGAN STANLEY & CO. LLC

LISTED DERIVATIVES

U.S. TREASURY SECURITIES PURCHASE AUTHORIZATION AGREEMENT

This Agreement governs the service (“Service”) made available to each Fund set forth in Annex A hereto (each such Fund, the “Customer”) by Morgan Stanley & Co. LLC (“MS&Co.”) and is effective as of June 1, 2015.  This Agreement is in addition to and supplements Customer’s Commodity Futures Customer Agreement (the “Futures Agreement”).  Unless otherwise specified in this Agreement, all capitalized terms used herein shall have the meanings set forth in the Futures Agreement and references herein and in the Futures Agreement to the “Agreement” shall be construed to mean the Futures Agreement as amended and supplemented by this Agreement.  Except as otherwise modified by this Agreement, the terms and conditions of the Futures Agreement remain in full force and effect.

1.  The Service.   The Service consists of: (i) the purchase of U.S. Treasury securities with Available Cash from Customer’s Account; and (ii) actions taken from time to time with respect to such U.S. Treasury securities by MS&Co., each as instructed and authorized by Customer in accordance with the terms of this Agreement, as further set forth below.  The term “Available Cash” means the amount of any excess equity in the form of cash in the Account, which would, consistent with Applicable Law, be available on demand for withdrawal or transfer in accordance with Customer’s instructions.

2.  Authorizations.   MS&Co. is hereby authorized and instructed to: (a) purchase with Available Cash U.S. Treasury securities in accordance with a written purchase order substantially in the form of Annex B hereto; provided, however, that at no time shall the Available Cash be debited from the Customer’s Account unless the U.S. Treasuries are simultaneously credited to the Segregated Account (as defined below); (b) transfer proceeds from the sale or disposition (whether at maturity or obtained via automatic redemption, sale or otherwise) of U.S. Treasury securities to the Futures Account to, (i) satisfy debits and margin calls in the Account, (ii) fund settlement of transactions Customer or Advisor or Customer’s designated and duly authorized Account controller has executed for the Account,  in the case of (i) and (ii), only if the Withholding Amount is insufficient and (iii) in the absence of Customer instructions to the contrary, redeem proceeds from the maturity of U.S. Treasury securities and use such proceeds to purchase U.S. Treasury securities in the next available tenor of the same or substantially comparable maturities as the U.S. Treasury securities just redeemed; (c) discharge Customer’s instructions as set forth in this Agreement without any further authorizations or consents; and (d) present this Agreement to any regulator, governmental authority or self-regulatory authority or in any administrative or judicial proceeding as verification that MS&Co. has authority to take action with respect to such U.S. Treasury securities on behalf of Customer as instructed herein.

3.  Relationship to MS&Co.  Customer understands and agrees as follows:

	
(a)

	
U.S. Treasury securities purchased pursuant to this Agreement will at all times be held by MS&Co. for the benefit of Customer in segregation in an omnibus customer account (each, as applicable, a “Segregated Account”) in accordance with the provisions of Section 4d(a) of the Commodity Exchange Act (“Act”) and Regulation 1.20 or Regulation 30.7, as applicable, of the regulations of the Commodity Futures Trading Commission (“CFTC”) promulgated thereunder, and will at all times be reflected on MS&Co.’s books and records as customer segregated assets, in accordance with the applicable requirements of the Act and the CFTC’s regulations thereunder.  MS&Co. will mark its books and records to indicate the amount of U.S. Treasury securities held for each Fund in the Segregated Account.

	
(b)

	
U.S. Treasury securities purchased pursuant to this Agreement will, so long as they are custodied in a Segregated Account, be eligible to satisfy Customer’s margin requirements for its Futures Account with MS&Co., subject to the relevant provisions of the Futures Agreement;

	
(c)

	
MS&Co. shall have no duties or responsibilities to Customer in connection with the Service except those duties and responsibilities expressly set forth herein and as may exist under Applicable Law;

 

 

 

 

 

 

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(d)

	
MS&Co. is not in any way acting as Customer’s fiduciary in connection with the Service or the authorizations and instructions set forth herein, and Customer is not relying on any communications or statements (written or oral) of MS&Co. as investment advice or as a recommendation from MS&Co. or its employees to purchase or sell U.S. Treasury securities;

	
(e)

	
U.S. Treasury securities custodied in a Segregated Account will be reflected on MS&Co.’s statements of Customer’s collateral held in segregation pursuant to Section 4d(a)(2) of the Act or as 30.7 customer funds pursuant to CFTC Regulation 30.7, as applicable;

	
(f)

	
Customer bears the sole risk of any decline in the value of the U.S. Treasury securities and understands that any such decline in value may, to the extent that such U.S. Treasury securities are being held as Collateral under the Futures Agreement, give rise to a shortfall in its margin requirement under the Futures Agreement; and

	
(g)

	
This Agreement and the Service is not an offer to buy or sell or a solicitation of an offer to buy or sell U.S. Treasury securities or to participate in any particular trading strategy.

4.  Revocation of Authorizations.  The authorizations and instructions set forth herein shall remain in full force and effect until MS&Co. receives a written notice of revocation from Customer and MS&Co. acknowledges such revocation to Customer in writing within two (2) business days of MS&Co.’s receipt of such written notice.

5.  Termination of the Service.  MS&Co. may terminate the Service at any time and for any reason upon notice to Customer.  Customer shall remain responsible for all authorized charges that arise prior to such termination.  Notwithstanding any such termination, MS&Co shall provide the Service until the maturity date of the U.S. Treasuries held in the Customer’s Account at the time the notice to terminate was received by the Customer.

6.  U.S. Treasury Securities as Collateral.  Customer agrees that all U.S. Treasury securities purchased through the Service will be deemed “Collateral” (as that term is used in the Futures Agreement) held in and for the Account.

7. Liens and Other Secured Interests.  Customer hereby (i) assigns, pledges and transfers to MS&Co. all of Customer’s right, title and interest in the U.S. Treasury securities purchased pursuant to this Agreement and (ii) understands and agrees that MS&Co. may use any U.S. Treasury securities held in a Segregated Account for the purpose of collateralizing Customer’s obligations under the Futures Agreement (in accordance with the terms thereof).  MS&Co. shall, at all times when U.S. Treasury securities are custodied in a Segregated Account, retain a security interest and right of setoff, to the extent set forth in the Futures Agreement with respect to “Collateral” as defined therein, in and with respect to such U.S. Treasury securities.  For the avoidance of doubt, the parties hereto acknowledge and agree that the purchase of U.S. Treasury securities with Available Cash from Customer’s Futures Account as part of the Service shall not constitute a “permitted investment” as defined in CFTC Regulation 1.25.

8.   Certain Procedures.  MS&Co. is hereby authorized and instructed to calculate Available Cash through the following procedures.  MS&Co. shall first calculate Customer’s excess equity in the form of available USD cash balances held on Customer’s behalf by MS&Co. in the Account subject to and in accordance with the provisions of the Futures Agreement (the “Excess Equity”).  For the avoidance of doubt, Excess Equity may, at the discretion of MS&Co., be determined after taking into account any rights of set-off, netting and any other application of Customer’s cash balances to its obligations owed to MS&Co. (or, if applicable, its affiliates) to the extent permitted under the Futures Agreement.  MS&Co. shall then subtract the Withholding Amount from the Excess Equity. (  The resulting amount is then available for the purchase of U.S. Treasury Securities in connection with MS&Co.’s provision of the Service pursuant to the terms of this Agreement.

MS&Co. is hereby authorized and instructed to withhold from inclusion in its computation of Excess Equity a percentage of available cash, as determined by Customer in its discretion (the “Withholding Amount”), for the purpose of (i) satisfying Customer’s obligations in respect of the Futures Account for that day; (ii) satisfying  Customer’s margin requirements in respect of the Futures Account for that day and (iii) protecting against the possibility of adverse market moves causing Customer to incur a debit balance in the Futures Account.

9.  ERISA.  Except as disclosed to MS&Co. in writing, Customer continuously represents that it is not (a) an employee benefit plan (hereinafter an “ERISA Plan”), as defined in Section 3 (3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), subject to Title I of ERISA or Section 4975 of the Internal Revenue Code of 1986, as amended (“Code”), or subject to any other statute, regulation, procedure or restriction that is materially similar to Section 406 of ERISA or Section 4975 of the Code or which contain any prohibition against entering into any transaction under this Agreement (together with ERISA Plans, “Plans”), (b) a person acting on behalf of a Plan or (c) a person the assets of whom constitute assets of a Plan.  Customer will provide notice to MS&Co. in the event that it is aware that it is in breach of any aspect of this representation or is aware that with the passing of time, giving of notice or expiry of any applicable grace period, it will breach this representation.

 

 

 

 

 

 

 

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10.   Miscellaneous Provisions.  Those provisions in Customer’s Futures Agreement with MS&Co. regarding matters not otherwise expressly addressed in this Agreement shall have the same meaning and effect as if the provisions were part of this Agreement.

Customer represents that it is authorized to enter into this Agreement and utilize the Service and has obtained any consents and made any disclosures necessary regarding its investment in U.S. Treasury securities and the fees and expenses associated with such investment.

In witness whereof, Customer has caused this Agreement to be executed by its officer or duly authorized representative as of the date first above written.

CUSTOMER-: Each fund set forth on Annex A (which may be amended from time to time in accordance with the provisions of the Futures Agreement), attached hereto, in their individual capacity.

 

 

	
Signature: /s/ Patrick T. Egan                                                              

	 
	
Title:  President & Director – Ceres Managed Futures LLC           

	 
	
Date:   October 29, 2015                                                                       

	 
	 	 
	
Acknowledged and agreed by:

	 
	 	 
	
MORGAN STANLEY & CO. LLC

	 
	 	 
	
Signature:  /s/ Craig Abruzzo                                                              

	 
	
Title:  Managing Director                                                                    

	 
	
Date: October 29, 2015                                                                        

	 

 

 

 

 

 

 

 

 

 

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Annex A

List of Funds

	
Managed Futures Premier Aventis II L.P.

 

 

 

 

 

 

 

 

 

 

 

 

 

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ANNEX B

U.S. Treasury Securities Specifications

 

	 	
Characteristic

 

	
Specification

 

	 
	 	
Type:

 

	 	 
	 	
Denomination:

 

	 	 
	 	
Tenor/Maturity Date:

 

	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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