Document:

Exhibit 10.31

Exhibit 10.31

HILLENBRAND, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(As Amended and Restated July 1, 2010)

 

 

 

TABLE OF CONTENTS

HILLENBRAND, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE I. DEFINITIONS
	 	 	1	 
	ARTICLE II. ADMINISTRATION OF THIS PLAN
	 	 	4	 
	2.1 Committee
	 	 	4	 
	2.2 Committee Duties
	 	 	4	 
	2.3 Agent
	 	 	5	 
	2.4 Binding Effect of Decisions
	 	 	5	 
	ARTICLE III. PARTICIPATION
	 	 	5	 
	3.1 Participants as of the Effective Date
	 	 	5	 
	3.2 Participants after the Effective Date
	 	 	5	 
	ARTICLE IV. SUPPLEMENTAL RETIREMENT BENEFIT
	 	 	5	 
	4.1 Supplemental Retirement Benefit
	 	 	5	 
	4.2 Subject To Pension Plan
	 	 	6	 
	4.3 Payment of Supplemental Retirement Benefits
	 	 	6	 
	4.4 Change in Control
	 	 	8	 
	4.5 Forfeiture of Supplement Retirement Benefit
	 	 	8	 
	4.6 Frozen Supplemental Retirement Benefit
	 	 	8	 
	4.7 Elections under the Prior SERP
	 	 	8	 
	4.8 Termination of Supplemental Retirement Benefits under the Prior SERP and Payments under this Plan
	 	 	8	 
	ARTICLE V. OFFSET FOR OBLIGATIONS TO EMPLOYER
	 	 	9	 
	ARTICLE VI. RIGHTS OF A PARTICIPANT
	 	 	9	 
	ARTICLE VII. AMENDMENT AND TERMINATION
	 	 	9	 
	7.1 Amendment
	 	 	9	 
	7.2 Termination
	 	 	9	 
	ARTICLE VIII. DETERMINATION OF BENEFITS
	 	 	10	 
	8.1 Claim
	 	 	10	 
	8.2 Claim Decision
	 	 	10	 
	8.3 Request for Review
	 	 	10	 
	8.4 Review of Decision
	 	 	11	 

 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE IX. NOTICES
	 	 	11	 
	ARTICLE X. GENERAL PROVISIONS
	 	 	11	 
	10.1 Controlling Law
	 	 	11	 
	10.2 Captions
	 	 	11	 
	10.3 Facility of Payment
	 	 	11	 
	10.4 Withholding of Payroll Taxes
	 	 	11	 
	10.5 Protective Provisions
	 	 	12	 
	10.6 Terms
	 	 	12	 
	10.7 Successor
	 	 	12	 
	ARTICLE XI. UNFUNDED STATUS OF PLAN
	 	 	12	 
	ARTICLE XII. RIGHTS TO BENEFITS
	 	 	12	 
	ARTICLE XIII. BOARD APPROVAL
	 	 	13	 

 

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HILLENBRAND, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

(As Amended and Restated July 1, 2010

W I T N E S S E T H:

WHEREAS, in accordance with that certain Distribution Agreement (as defined below),
Hillenbrand Industries, Inc. (to be re-named Hill-Rom Holdings, Inc. prior to or effective upon the
Distribution referred to below and hereinafter referred to in these recitals as “RemainCo” or
“Hill-Rom Holdings, Inc.”) proposes to distribute its entire ownership interest in Batesville
Holdings, Inc. (to be re-named Hillenbrand, Inc. prior to or effective upon the Distribution and
hereinafter referred to in these recitals as “SpinCo or “Hillenbrand, Inc.”) through a pro-rata
distribution of all of the outstanding shares of SpinCo common stock then owned by RemainCo to the
holders of RemainCo common stock (“Distribution”); and

WHEREAS, RemainCo and SpinCo have entered into that certain Employee Matters Agreement (as
defined below) for the purpose of continuing benefits for the pre-Distribution directors, employees
and consultants of RemainCo and its subsidiaries; and

WHEREAS, in accordance with Section 2.5 of the Employee Matters Agreement, SpinCo is to adopt
and implement a Supplemental Executive Retirement Plan with features that are comparable to the
Hillenbrand Industries, Inc. Supplemental Executive Retirement Plan, as amended to be effective as
of the date of the consummation of the transactions contemplated by the Distribution Agreement; and

WHEREAS, effective as of the date of the consummation of the transactions contemplated by the
Distribution Agreement (the “Effective Date”), Hillenbrand, Inc. (the “Employer”) establishes the
Hillenbrand, Inc. Supplemental Executive Retirement Plan (the “Plan”) to provide selected key
executives of the Employer and SpinCo Participants (as defined below) with competitive supplemental
retirement benefits and additional retirement income.

ARTICLE I.

DEFINITIONS

	1.1	 	“Base Salary” means the annual calendar earnings of a Participant including wages and salary
as reported for federal income tax purposes, but excluding all bonus payments of any kind,
commissions, incentive compensation, equity based compensation, long term performance
compensation, perquisites and other forms of additional compensation.

 

 

 

	1.2	 	“Beneficiary” means, with respect to the Supplemental Retirement Benefit (as defined in
paragraph 4.1(a)), the person, persons, trust or other entity designated by the Participant to
receive any benefits payable under the Pension Plan.

	 
	1.3	 	“Board” means the Board of Directors of Hillenbrand, Inc.

	 
	1.4	 	“Cause” means

	 	(i)	 	a Participant’s embezzlement or material misappropriation of funds or property
of the Employer, or

	 
	 	(ii)	 	the willful engaging by a Participant in conduct constituting a felony or gross
misconduct, which is materially and demonstrably injurious to the Employer.

	1.5	 	A “Change in Control” means

	 	(i)	 	the date that any person, corporation, partnership, syndicate, trust, estate or
other group acting with a view to the acquisition, holding or disposition of securities
of the Company, becomes, directly or. indirectly, the beneficial owner, as defined in
Rule 13d-3 under the Securities Exchange Act of 1934 (“Beneficial Owner”), of
securities of the Company representing 35% or more of the voting power of all
securities of the Company having the right under ordinary circumstances to vote at an
election of the Board (“Voting Securities”), other than by reason of (x) the
acquisition of securities of the Company by the Company or any of its Subsidiaries or
any employee benefit plan of the Company or any of its Subsidiaries, (y) the
acquisition of securities of the Company directly from the Company, or (z) the
acquisition of securities of the Company by one or more members of the Hillenbrand
Family (which term shall mean descendants of John A. Hillenbrand and their spouses,
trusts primarily for their benefit or entities controlled by them);

	 
	 	(ii)	 	the consummation of a merger or consolidation of the Company with another
corporation unless

(A) the shareholders of the Company, immediately prior to the merger or consolidation,
beneficially own, immediately after the merger or consolidation, shares entitling such shareholders
to 50% or more of the voting power of all securities of the corporation surviving the merger or
consolidation having the right under ordinary circumstances to vote at an election of directors in
substantially the same proportions as their ownership, immediately prior to such merger or
consolidation, of Voting Securities of the Company;

(B) no person, corporation, partnership, syndicate, trust, estate or other group beneficially
owns, directly or indirectly, 35% or more of the voting power of the outstanding
voting securities of the corporation resulting from such merger or consolidation except to the
extent that such ownership existed prior to such merger or consolidation; and

 

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(C) the members of the Company’s Board, immediately prior to the merger or consolidation,
constitute, immediately after the merger or consolidation, a majority of the board of directors of
the corporation issuing cash or securities in the merger;

	 	(iii)	 	the date on which a majority of the members of the Board consist of persons
other than Current Directors (which term shall mean any member of the Board on the date
hereof and any member whose nomination or election has been approved by a majority of
Current Directors then on the Board);

	 
	 	(iv)	 	the consummation of a sale or other disposition of all or substantially all of
the assets of the Company; or

	 
	 	(v)	 	the date of approval of the shareholders of the Company of a plan of complete
liquidation of the Company.

	1.6	 	“Code” means the Internal Revenue Code of 1986, as amended.

	 
	1.7	 	“Committee” means the Compensation and Management Development Committee of the Board.

	 
	1.8	 	“Company” means Hillenbrand, Inc. and its Subsidiaries.

	 
	1.9	 	“Distribution Agreement” means the Distribution Agreement by and between Hillenbrand
Industries, Inc. and Batesville Holdings, Inc. dated as of March 14, 2008.

	 
	1.10	 	“Employee Matters Agreement” means the Employee Matters Agreement by and between Hillenbrand
Industries, Inc. and Batesville Holdings, Inc. dated as of March 14, 2008.

	 
	1.11	 	“Employer” means the Company.

	 
	1.12	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

	 
	1.13	 	“Participant” means any SpinCo Participant as set forth in Section 3.1 and any individual who
is a non-bargained for, full-time or regular part-time employee of the Employer who is
selected for participation in this Plan pursuant to Article III.

	 
	1.14	 	“Prior SERP” means the Hillenbrand Industries, Inc. Supplemental Executive Retirement Plan as
in effect immediately prior to the Effective Date.

	 
	1.15	 	“Pension Plan” means the Hillenbrand, Inc. Pension Plan, as amended.

 

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	1.16	 	“SpinCo Participant” shall have the meaning set forth in Section 1.1 of the Employee Matters
Agreement.

	 
	1.17	 	“Subsidiary” means an operating company unit of which a majority equity interest is owned
directly or indirectly by the Company.

	 
	1.18	 	“Target Bonus” means the designated percentage of a Participant’s Base Salary utilized in the
Company’s short term incentive compensation plan, regardless of what percent of a
Participant’s Base Salary had been paid.

ARTICLE II.

ADMINISTRATION OF THIS PLAN

	2.1	 	Committee. This Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum and all decisions made by the Committee pursuant to
provisions of this Plan shall be made by a majority of the Committee members present at any
duly held regular or special meeting at which a quorum is present or by the unanimous written
consent of a majority of the Committee members in lieu of any such meeting.

	 
	2.2	 	Committee Duties. The Committee shall also have the authority to make, amend,
interpret, and enforce all appropriate rules and regulations for the administration of this
Plan and decide or resolve any and all questions, including interpretations of this Plan, as
may arise in connection with this Plan. The Committee shall have the sole discretionary
authority and all powers necessary to accomplish these purposes, including, but not by way of
limitation, the right, power, authority and duty:

	 	(a)	 	To make rules, regulations and procedures for the administration of this Plan
which are not inconsistent with the terms and provisions hereof, provided such rules,
regulations and procedures are evidenced in writing and copies thereof are delivered to
the Employer.

	 
	 	(b)	 	To construe and interpret all terms, provisions, conditions and limitations of
this Plan;

	 
	 	(c)	 	To correct any defect, supply any omission, construe any ambiguous or uncertain
provisions, or reconcile any inconsistency that may appear in this Plan, in such manner
and to such extent as it shall deem expedient to carry this Plan into effect;

	 
	 	(d)	 	To employ and compensate such accountants, attorneys, investment advisors and
other agents and employees as the Committee may deem necessary or advisable in the
proper and efficient administration of this Plan;

	 
	 	(e)	 	To determine all questions relating to eligibility;

 

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	 	(f)	 	To determine the amount, manner and time of payment of any benefits hereunder
and to prescribe procedures to be followed by distributees in obtaining benefits;

	 
	 	(g)	 	To prepare, file and distribute, in such manner as the Committee determines to
be appropriate, such information and material as is required by the reporting and
disclosure requirements of ERISA; and

	 
	 	(h)	 	To make a determination as to the right of any person to receive a benefit
under this Plan.

	2.3	 	Agent. In the administration of this Plan, the Committee may, from time to time,
employ an agent and delegate to it such administrative duties as it sees fit and may, from
time to time, consult with counsel who may be counsel to the Employer.

	 
	2.4	 	Binding Effect of Decisions. The decision or action of the Committee with respect to
any question arising out of or in connection with the administration, interpretation and
application of this Plan and the rules and regulations promulgated hereunder shall be final,
conclusive and binding upon all persons having any interest in this Plan and shall not be
subject to appeal except as provided in Article VIII.

ARTICLE III.

PARTICIPATION

	3.1	 	Participants as of the Effective Date. As of the Effective Date, a Participant in
the Plan shall include any SpinCo Participant who, as of the day before the Effective Date,
has earned a Supplemental Retirement Benefit (as defined in the Prior SERP) under the Prior
SERP.

	 
	3.2	 	Participants after the Effective Date. Except as provided in Section 3.1,
participation in this Plan shall be determined by the Committee or any person designated by
it. In no event shall any employee of the Employer become eligible to participate in this Plan
if such employee would not be considered a member of a select group of management or highly
compensated employees for purposes of ERISA.

ARTICLE IV.

SUPPLEMENTAL RETIREMENT BENEFIT

	4.1	 	Supplemental Retirement Benefit.

	 	(a)	 	For each Participant who participates in the Pension Plan and continues to
accrue a benefit thereunder while this Plan is in effect (“Traditional Participant”),
such Traditional Participant shall be paid a monthly benefit under this Plan
(“Supplemental Retirement Benefit”) equal in amount to (1) the monthly benefit payable
under the Pension Plan (i) without the limitations on maximum benefits
set forth in Section 415 of the Code, and (ii) with the changes to the calculation
of “Earnings” (as defined in the Pension Plan) as described in paragraph (b) of this
Section 4.1, less (2) the monthly benefit payable under the Pension Plan.

 

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	 	(b)	 	For purposes of calculating the Supplemental Retirement Benefit under this
Section 4.1, “Earnings” as defined in the Pension Plan shall include the amount of a
Traditional Participant’s Target Bonus (whether or not the target is attained and
whether or not the Target Bonus is paid) for a calendar year, including any Target
Bonus for calendar years prior to the Effective Date for the same years that Earnings
is used to determine the Participant’s monthly benefit payable under the Pension Plan,
and such Earnings shall not be limited by the compensation limits set forth in Code
Section 401(a)(17); provided however, that such “Earnings” may be limited in amount by
the Board or Committee, as they determine in their sole discretion, for any one or more
Traditional Participants.

	 
	 	(c)	 	Exhibit “A” attached hereto provides an example of the calculation of “Average
Monthly Earnings” (as defined in the Pension Plan) used in the calculation of a
Traditional Participant’s Supplemental Retirement Benefit hereunder.

	4.2	 	Subject To Pension Plan. Except as provided in Article 4.1 above and as provided
below in Section 4.3 with respect to the payment of the Supplemental Retirement Benefit, the
Supplemental Retirement Benefit to be paid a Traditional Participant shall be subject to all
provisions of the Pension Plan, including but not limited to, all monthly benefit
calculations, normal and early retirement, deferred vested benefits, disability retirement,
vesting, benefit election options, beneficiary designations and joint and survivor benefits.

	 
	4.3	 	Payment of Supplemental Retirement Benefits.

	 	(a)	 	Normal Supplemental Retirement Benefits. Except as provided in Section 4.3(d)
below, each Traditional Participant who attains his Normal Retirement Date (as defined
in the Pension Plan) shall receive a monthly benefit. Unless such Traditional
Participant elects a form of annuity set forth on Annex A attached hereto prior to the
date of his Normal Retirement Benefit Commencement Date (as defined below), such
Traditional Participant, if unmarried, shall receive a life annuity with guaranteed
payment for 24 months (“Single, Normal Form of Payment”), or if married, a 50% joint
and survivor annuity (“Married, Normal Form of Payment”). Monthly Normal Supplemental
Retirement Benefit payments shall be determined and paid as an annuity beginning as of
the first day of the calendar month following the date of a Traditional Participant’s
termination of employment (“Normal Retirement Benefit Commencement Date”) and shall be
paid monthly thereafter as of the first day of each succeeding month, except that the
first six monthly payments shall be suspended until, and shall be paid to the
Traditional Participant on, the first day of the seventh month following the date of
the Traditional Participant’s termination of employment.

 

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	 	(b)	 	Early Supplemental Retirement Benefits. Except as provided in Section
4.3(d) below, each Traditional Participant who attains his Early Retirement Date (as
defined in the Pension Plan) shall receive a monthly benefit. Unless such Traditional
Participant elects a form of annuity set forth on Annex A attached hereto prior to the
date his Early Retirement Benefit Commencement Date (as defined below), such
Traditional Participant, if unmarried, shall receive a Single, Normal Form of Payment,
or if married, a Married, Normal Form of Payment. Monthly Early Supplemental
Retirement Benefit payments shall be determined and paid as an annuity beginning on the
first day of the calendar month following the date of a Traditional Participant’s
termination of employment (“Early Retirement Benefit Commencement Date”) and shall be
paid monthly thereafter as of the first day of each succeeding month, except that the
first six monthly payments shall be suspended until, and shall be paid to the
Traditional Participant on, the first day of the seventh month following the date of
the Traditional Participant’s termination of employment. A Traditional Participant can
elect to change his Early Retirement Benefit Commencement Date so long as such election
is made a year prior to the Early Retirement Benefit Commencement Date and made before
attaining age 60. The new Early Retirement Benefit Commencement Date must be a date
after the 5th anniversary of the Early Retirement Benefit Commencement Date and must be
a date before he attains age 65.

	 
	 	(c)	 	Deferred Vested Supplemental Retirement Benefits. Except as provided in
Section 4.3(d) below, each Traditional Participant who attains his Vested Retirement
Date (as defined in the Pension Plan) shall receive a monthly benefit. Unless such
Traditional Participant elects a form of annuity set forth on Annex A attached hereto
prior to the date of his Deferred Vested Benefit Commencement Date (as defined below),
such Traditional Participant, if unmarried, shall receive a Single, Normal Form of
Payment, or if married, a Married, Normal Form of Payment. Monthly Deferred Vested
Supplemental Retirement Benefits shall be determined and paid as an annuity beginning
on the later to occur of (i) the first day of the calendar month following the date a
Traditional Participant attains age 55 or (ii) the first day of the calendar month
following the date of a Traditional Participant’s termination of employment (“Deferred
Vested Benefit Commencement Date”) and shall be paid monthly thereafter as of the first
day of each succeeding month, except that the first six monthly payments shall be
suspended until, and shall be paid to the Traditional Participant on, the first day of
the seventh month following the date of the Traditional Participant’s termination of
employment. A Traditional Participant can elect to change his Deferred Vested Benefit
Commencement Date so long as such election is made a year prior to the Deferred Vested
Benefit Commencement Date and made before attaining age 60. The new Early Retirement
Benefit Commencement Date must be a date after the
5th anniversary of the Deferred Vested Benefit Commencement Date and must be a date
before he attains age 65.

 

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	4.4	 	Change in Control. Notwithstanding the vesting requirement set forth in the Pension
Plan and except as provided in Section 4.4 below, upon the occurrence of a Change in Control a
Traditional Participant shall be credited with five (5) years of “Vesting Service” (as defined
in the Pension Plan) for purposes of determining whether a Traditional Participant is eligible
for a Supplemental Retirement Benefit.

	 
	4.5	 	Forfeiture of Supplement Retirement Benefit. Notwithstanding any other provision of
this Article IV, upon the termination of a Traditional Participant’s employment by the Company
or any of its Subsidiaries for Cause, such Traditional Participant shall forfeit all rights to
any Supplemental Retirement Benefit under this Article IV, and the Employer shall have no
obligation to make any such payments.

	 
	4.6	 	Frozen Supplemental Retirement Benefit. If the Committee (at its sole discretion)
should determine that a Traditional Participant is no longer eligible to earn or accrue a
Supplemental Retirement Benefit as provided for under this Article IV, then, on the date of
such determination by the Committee, the Traditional Participant’s Supplemental Retirement
Benefit shall be frozen as of such date and he or she will earn or accrue no Supplemental
Retirement Benefit thereafter.

	 
	4.7	 	Elections under the Prior SERP. Any and all elections made by a Participant under
the Prior SERP with respect to his or her Supplemental Retirement Benefit under the Prior SERP
shall be deemed to be an election under this Plan with respect to the Participant’s
Supplemental Retirement Benefit under this Article IV.

	 
	4.8	 	Termination of Supplemental Retirement Benefits under the Prior SERP and Payments under
this Plan. If a Participant is receiving payments under the Prior SERP as of the day
before the Effective Date, then as of the Effective Date, no further payments of his or her
Supplemental Retirement Benefit under the Prior SERP shall be paid to the Participant under
the Prior SERP, and as of the Effective Date, the remaining Supplemental Retirement Benefit
under the Prior SERP shall be the Supplemental Retirement Benefit of such Participant under
this Plan and shall be paid under this Plan in accordance with the elections made as set forth
in Section 4.7 above. If, as of the day before the Effective Date, a Participant has earned a
Supplemental Retirement Benefit under the Prior SERP but is not an employee of the Employer
and payments under the Prior SERP have not commenced, then as of the Effective Date, no
payments of such Supplemental Retirement Benefit under the Prior Plan shall be paid to such
Participant under the Prior SERP, and the Supplemental Retirement Benefit under the Prior SERP
as of the day before the Effective Date shall be the Participant’s Supplemental Retirement
Benefit under this Plan which shall be paid to the Participant as set forth in this Article
IV. If, as of the day before the Effective Date, a Participant who is an employee of the
Employer on the Effective Date has earned a Supplemental Retirement Benefit under the Prior
SERP, but payments under the Prior SERP have not commenced, then as of the Effective Date, no payments
of such Supplemental Retirement Benefit under the Prior SERP shall be paid to such
Participant under the prior SERP, and he or she shall only be entitled to the Supplemental
Retirement Benefit earned under this Plan. Notwithstanding anything herein to the contrary,
a Participant under Section 3.1 shall, on or after the Effective Date, only receive a
Supplemental Retirement Benefit under this Plan and shall receive no Supplemental Retirement
Benefit under the Prior SERP.

 

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ARTICLE V.

OFFSET FOR OBLIGATIONS TO EMPLOYER

If, at such time as the Participant becomes entitled to benefit payments hereunder, the Participant
has any debt, obligation or other liability representing an amount owing to the Company or any
Subsidiary, and if such debt, obligation, or other liability is due and owing at the time benefit
payments are payable hereunder, the Employer may offset the amount owed the Company or the
Subsidiary against the amount of benefits otherwise distributable hereunder.

ARTICLE VI.

RIGHTS OF A PARTICIPANT

Establishment of this Plan shall not be construed as giving any Participant the right to be
retained in the Employer’s service or employ or the right to receive any benefits not specifically
provided by this Plan.

Payments under this Plan will not be segregated from the general funds of the Employer and no
Participant will have any claim on any specific assets of the Employer. To the extent that any
Participant acquires a right to receive benefits under this Plan, his or her right will be no
greater than the right of any unsecured general creditor of the Employer and is not assignable or
transferable except to his or her Beneficiary or estate.

ARTICLE VII.

AMENDMENT AND TERMINATION

	7.1	 	Amendment. This Plan may be amended from time to time by resolution of the Board.
The amendment of any one or more provisions of this Plan shall not affect the remaining
provisions of this Plan. No amendment shall reduce any benefits accrued by any Participant
prior to the amendment.

	 
	7.2	 	Termination. The Board has the right to terminate this Plan at any time. Any
benefit accrued prior to this Plan’s termination will continue to be subject to the provisions
of this Plan.

 

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ARTICLE VIII.

DETERMINATION OF BENEFITS

	8.1	 	Claim. A person who believes that he is being denied a benefit to which he is
entitled under this Plan (hereinafter referred to as a “Claimant”) may file a written request
for such benefit with the Committee, setting forth his claim. The request must be addressed
to the Committee.

	 
	8.2	 	Claim Decision. Upon receipt of a claim, the Committee shall advise the Claimant
that a reply will be forthcoming within a reasonable time, but not later than 90 days from its
receipt of the claim and shall, in fact, deliver such reply within such period. The Committee
may, however, extend the reply period for an additional 90 days if the Committee determines
that special circumstances require such an extension. If an extension is required, written
notice shall be furnished to the Claimant prior to the termination of the initial 90-day
period. The extension notice shall indicate (i) the special circumstances requiring an
extension of time; and (ii) the date by which the Committee expects to tender the benefit
determination. If the claim is denied in whole or in part, the Committee shall adopt a
written opinion, using language calculated to be understood by the Claimant, setting forth:

	 	(a)	 	The specific reason for such denial;

	 
	 	(b)	 	The specific reference to pertinent provisions of this agreement upon which
such denial is based;

	 
	 	(c)	 	A description of any additional material or information necessary for the
Claimant to perfect his claim and an explanation why such material or such information
is necessary.

	 
	 	(d)	 	Appropriate information as to the steps to be taken if the Claimant wishes to
submit the claim for review, including the Claimant’s right to bring a civil action
following an adverse benefit determination on review; and

	 
	 	(e)	 	The time limits for requesting a review.

	8.3	 	Request for Review. Within sixty (60) days after the receipt by the Claimant of the
written opinion described above, the Claimant may request in writing that the Committee review
its determination. Such request must be addressed to the Committee. The Claimant or his duly
authorized representative may, but need not, review the pertinent documents, records and other
information, receive copies of such information, and submit documents, records, issues and
comments in writing for consideration by the Committee. If the Claimant does not request a
review of the Committee’s determination within such sixty (60) day period, he shall be barred
and estopped from challenging the Participating Employer’s determination.

 

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	8.4	 	Review of Decision. Within a reasonable time not later than sixty (60) days after
the Board of Directors’ receipt of a request for review, the Committee will review its
determinations. After considering all materials presented by the Claimant, the Committee will
render a written opinion, written in a manner calculated to be understood by the Claimant,
setting forth (a) the specific reasons for the decision; (b) and containing specific
references to the pertinent provisions of this Plan on which the decision is based; (c) a
statement that the Claimant is entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other information relevant to
the Claimant’s claim for benefits; and (d) a statement of the Claimant’s right to bring an
action under Section 502(a) of ERISA. If special circumstances require that the sixty (60)
day time period be extended, the Committee will so notify the Claimant prior to the
termination of the initial 60-day period and will render the decision as soon as possible, but
no later than one hundred twenty (120) days after the filing of the request for review. The
extension notice will set forth: (a) the special circumstances; and (b) the date as of which
the benefit determination will be made.

ARTICLE IX.

NOTICES

Notices and elections under this Plan must be in writing. A notice or election is deemed delivered
if it is delivered personally or mailed by registered or certified mail to the person at his or her
last known business address.

ARTICLE X.

GENERAL PROVISIONS

	10.1	 	Controlling Law. The provisions of this Plan shall be subject to regulation under
ERISA. To the extent not preempted by federal law, this Plan shall be construed and
interpreted according to the laws of the State of Indiana.

	 
	10.2	 	Captions. The captions of Articles and Sections of this Plan are for the convenience
of reference only and shall not control or affect the meaning or construction of any of its
provisions.

	 
	10.3	 	Facility of Payment. Any amounts payable hereunder to any Participant who is under
legal disability or who, in the judgment of the Committee, is unable to properly manage his or
her financial affairs may be paid to the legal representative of such Participant or may be
applied for the benefit of such Participant in any manner which the Committee may select, and
any such payment shall be deemed to be payment for such Participant’s account and shall be a
complete discharge of all liability of the Employer with respect to the amount so paid.

	 
	10.4	 	Withholding of Payroll Taxes. To the extent required by the laws in effect at the
time compensation or deferred compensation payments are made, the Employer shall withhold
from such compensation, or from deferred compensation payments made hereunder, any taxes
required to be withheld for federal, state or local government purposes.

 

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	10.5	 	Protective Provisions. A Participant will cooperate with the Employer by furnishing
any and all information requested by the Employer in order to facilitate the payment of
benefits hereunder.

	 
	10.6	 	Terms. Whenever any words are used herein in the masculine, they shall be construed
as though they were used in the feminine in all cases where they would so apply; and wherever
any words are used herein in the singular or in the plural, they shall be construed as though
they were used in the plural or the singular, as the case may be, in all cases where they
would so apply.

	 
	10.7	 	Successor. The provisions of this Plan shall bind and inure to the benefit of
Hillenbrand, Inc. and its successors and assigns. The terms successors and assigns as used
herein shall include any corporate or other business entity which shall, whether by merger,
consolidation, purchase or otherwise, acquire all or substantially all of the business and
assets of Hillenbrand, Inc. and successors of any such company or other business entity.

ARTICLE XI.

UNFUNDED STATUS OF PLAN

It is the intention of the parties that the arrangements herein described be unfunded for tax
purposes and for purposes of Title I or ERISA. Plan participants have the status of general
unsecured creditors of the Employer. This Plan constitutes a mere promise by the Employer to make
payments in the future.

ARTICLE XII.

RIGHTS TO BENEFITS

Subject to Article V, a Participant’s rights to benefit payments under this Plan are not subject in
any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors of the participant or the participant’s beneficiaries.

 

12

 

ARTICLE XIII.

BOARD APPROVAL

This Plan was approved by the Board originally on February 8, 2008, and, as amended and restated,
on                     , 2009.

IN WITNESS WHEREOF, the Employer has caused this Plan, as amended and restated, to be executed
this       day of                     , 2009.

	 	 	 	 	 	 	 
	 	 	HILLENBRAND, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 

	 	 
	 

	 	 	Name:	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	Title:	 	 	 
	 

	 	 	 	 

	 	 

 

13

 

EXHIBIT “A”

Example of

Average Monthly Earnings for

Supplemental Retirement Benefit

Calculation of Target Bonus

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Target	 	 	Target	 
	 	 	Base Salary	 	 	Bonus %	 	 	Bonus	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Year 5
	 	$	210,000	 	 	 	40	%	 	$	84,000	 
	Year 4
	 	 	201,500	 	 	 	30	%	 	 	60,450	 
	Year 3
	 	 	194,000	 	 	 	30	%	 	 	58,200	 
	Year 2
	 	 	185,500	 	 	 	24	%	 	 	44,520	 
	Year 1
	 	 	180,000	 	 	 	24	%	 	 	43,200	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Supplemental	 
	 	 	Earnings (Pension Plan)	 	 	 	 	 	 	Retirement	 
	 	 	w/o § 401(a)17 limits	 	 	Target Bonus	 	 	Earnings	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Year 5
	 	$	210,000	 	 	$	84,000	 	 	$	294,000	 
	Year 4
	 	 	201,500	 	 	 	60,450	 	 	 	261,950	 
	Year 3
	 	 	194,000	 	 	 	58,200	 	 	 	252,200	 
	Year 2
	 	 	185,500	 	 	 	44,520	 	 	 	230,020	 
	Year 1
	 	 	180,000	 	 	 	43,200	 	 	 	223,200	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	1,261,370	 
	 
	 	 	 	 	 	 	 	 	 	 	 

Average Monthly Earnings for Supplemental Retirement Benefit:

$ 1,261,370  ̧ 5  ̧ 12 = $21,023

 

14

 

ANNEX A

Payment Annuity Options

	1.	 	Single Life Annuity

	 
	2.	 	66-2/3% Joint and Survivor Annuity

	 
	3.	 	75% Joint and Survivor Annuity

	 
	4.	 	100% Joint and Survivor Annuity

	 
	5.	 	5-Year Certain and Life

	 
	6.	 	10-Year Certain and Life

	 
	7.	 	15-Year Certain and Life

	 
	8.	 	20-Year Certain and Life

 

15Exhibit 10.32

Exhibit 10.32

Hillenbrand, Inc. Supplemental Retirement Plan

IMPORTANT NOTE

This document has not been approved by the Department of Labor, Internal Revenue Service or any
other governmental entity. An adopting Employer must determine whether the Plan is subject to the
Federal securities laws and the securities laws of the various states. An adopting Employer may
not rely on this document to ensure any particular tax consequences or to ensure that the Plan is
“unfunded and maintained primarily for the purpose of providing deferred compensation to a select
group of management or highly compensated employees” under Title I of the Employee Retirement
Income Security Act of 1974, as amended, with respect to the Employer’s particular situation.
Fidelity Employer Services Company, its affiliates and employees cannot provide you with legal
advice in connection with the execution of this document. This document should be reviewed by the
Employer’s attorney prior to execution.

January 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	PREAMBLE
	 	 	 	 
	ARTICLE 1 - GENERAL
	 	 	1-1	 
	1.1 Plan
	 	 	1-1	 
	1.2 Effective Dates
	 	 	1-1	 
	1.3 Amounts Not Subject to Code Section 409A
	 	 	1-1	 
	 
	 	 	 	 
	ARTICLE 2 - DEFINITIONS
	 	 	2-1	 
	2.1 Account
	 	 	2-1	 
	2.2 Administrator
	 	 	2-1	 
	2.3 Adoption Agreement
	 	 	2-1	 
	2.4 Beneficiary
	 	 	2-1	 
	2.5 Board or Board of Directors
	 	 	2-1	 
	2.6 Bonus
	 	 	2-1	 
	2.7 Change in Control
	 	 	2-1	 
	2.8 Code
	 	 	2-1	 
	2.9 Compensation
	 	 	2-1	 
	2.10 Director
	 	 	2-1	 
	2.11 Disability
	 	 	2-2	 
	2.12 Eligible Employee
	 	 	2-2	 
	2.13 Employer
	 	 	2-2	 
	2.14 ERISA
	 	 	2-2	 
	2.15 Identification Date
	 	 	2-2	 
	2.16 Key Employee
	 	 	2-2	 
	2.17 Participant
	 	 	2-2	 
	2.18 Plan
	 	 	2-2	 
	2.19 Plan Sponsor
	 	 	2-2	 
	2.20 Plan Year
	 	 	2-2	 
	2.21 Related Employer
	 	 	2-3	 
	2.22 Retirement
	 	 	2-3	 
	2.23 Separation from Service
	 	 	2-3	 
	2.24 Unforeseeable Emergency
	 	 	2-4	 
	2.25 Valuation Date
	 	 	2-4	 
	2.26 Years of Service
	 	 	2-4	 
	 
	 	 	 	 
	ARTICLE 3 - PARTICIPATION
	 	 	3-1	 
	3.1 Participation
	 	 	3-1	 
	3.2 Termination of Participation
	 	 	3-1	 

 

 

 

	 	 	 	 	 
	ARTICLE 4 - PARTICIPANT ELECTIONS
	 	 	4-1	 
	4.1 Deferral Agreement
	 	 	4-1	 
	4.2 Amount of Deferral
	 	 	4-1	 
	4.3 Timing of Election to Defer
	 	 	4-1	 
	4.4 Election of Payment Schedule and Form of Payment
	 	 	4-2	 
	 
	 	 	 	 
	ARTICLE 5 - EMPLOYER CONTRIBUTIONS
	 	 	5-1	 
	5.1 Matching Contributions
	 	 	5-1	 
	5.2 Other Contributions
	 	 	5-1	 
	 
	 	 	 	 
	ARTICLE 6 - ACCOUNTS AND CREDITS
	 	 	6-1	 
	6.1 Establishment of Account
	 	 	6-1	 
	6.2 Credits to Account
	 	 	6-1	 
	 
	 	 	 	 
	ARTICLE 7 - INVESTMENT OF CONTRIBUTIONS
	 	 	7-1	 
	7.1 Investment Options
	 	 	7-1	 
	7.2 Adjustment of Accounts
	 	 	7-1	 
	 
	 	 	 	 
	ARTICLE 8 - RIGHT TO BENEFITS
	 	 	8-1	 
	8.1 Vesting
	 	 	8-1	 
	8.2 Death
	 	 	8-1	 
	8.3 Disability
	 	 	8-1	 
	 
	 	 	 	 
	ARTICLE 9 - DISTRIBUTION OF BENEFITS
	 	 	9-1	 
	9.1 Amount of Benefits
	 	 	9-1	 
	9.2 Method and Timing of Distributions
	 	 	9-1	 
	9.3 Unforeseeable Emergency
	 	 	9-1	 
	9.4 Payment Election Overrides
	 	 	9-2	 
	9.5 Cashouts of Amounts Not Exceeding Stated Limit
	 	 	9-2	 
	9.6 Required Delay in Payment to Key Employees
	 	 	9-2	 
	9.7 Change in Control
	 	 	9-3	 
	9.8 Permissible Delays in Payment
	 	 	9-7	 
	9.9 Permitted Acceleration of Payment
	 	 	9-8	 
	9.10 Securities Law Requirements
	 	 	9-10	 

 

 

 

	 	 	 	 	 
	ARTICLE 10 - AMENDMENT AND TERMINATION
	 	 	10-1	 
	10.1 Amendment by Plan Sponsor
	 	 	10-1	 
	10.2 Plan Termination Following Change in Control or Corporate Dissolution
	 	 	10-1	 
	10.3 Other Plan Terminations
	 	 	10-1	 
	 
	 	 	 	 
	ARTICLE 11 - THE TRUST
	 	 	11-1	 
	11.1 Establishment of Trust
	 	 	11-1	 
	11.2 Grantor Trust
	 	 	11-1	 
	11.3 Investment of Trust Funds
	 	 	11-1	 
	 
	 	 	 	 
	ARTICLE 12 - PLAN ADMINISTRATION
	 	 	12-1	 
	12.1 Powers and Responsibilities of the Administrator
	 	 	12-1	 
	12.2 Claims and Review Procedures
	 	 	12-2	 
	12.3 Plan Administrative Costs
	 	 	12-5	 
	 
	 	 	 	 
	ARTICLE 13- MISCELLANEOUS
	 	 	13-1	 
	13.1 Unsecured General Creditor of the Employer
	 	 	13-1	 
	13.2 Employer’s Liability
	 	 	13-1	 
	13.3 Limitation of Rights
	 	 	13-1	 
	13.4 Anti-Assignment
	 	 	13-1	 
	13.5 Facility of Payment
	 	 	13-2	 
	13.6 Notices
	 	 	13-2	 
	13.7 Tax Withholding
	 	 	13-2	 
	13.8 Indemnification
	 	 	13-2	 
	13.9 Successors
	 	 	13-3	 
	13.10 Disclaimer
	 	 	13-4	 
	13.11 Governing Law
	 	 	13-4	 

 

 

 

PREAMBLE

The Plan is intended to be a “plan which is unfunded and is maintained by an employer primarily for
the purpose of providing deferred compensation for a select group of management or highly
compensated employees” within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the
Employee Retirement Income Security Act of 1974, as amended, or an “excess benefit plan” within the
meaning of Section 3(36) of the Employee Retirement Income Security Act of 1974, as amended, or a
combination of both. The Plan is further intended to conform with the requirements of Internal
Revenue Code Section 409A and the final regulations issued thereunder and shall be interpreted,
implemented and administered in a manner consistent therewith.

 

 

 

ARTICLE 1 — GENERAL

	1.1	 	Plan. The Plan will be referred to by the name specified in the Adoption Agreement.
	 
	1.2	 	Effective Dates.

	 	(a)	 	Original Effective Date. The Original Effective Date is the date as of
which the Plan was initially adopted.
	 
	 	(b)	 	Amendment Effective Date. The Amendment Effective Date is the date
specified in the Adoption Agreement as of which the Plan is amended and restated.
Except to the extent otherwise provided herein or in the Adoption Agreement, the Plan
shall apply to amounts deferred and benefit payments made on or after the Amendment
Effective Date.
	 
	 	(c)	 	Special Effective Date. A Special Effective Date may apply to any
given provision if so specified in Appendix A of the Adoption Agreement. A Special
Effective Date will control over the Original Effective Date or Amendment Effective
Date, whichever is applicable, with respect to such provision of the Plan.

	1.3	 	Amounts Not Subject to Code Section 409A
	 
	 	 	Except as otherwise indicated by the Plan Sponsor in Section 1.01 of the Adoption Agreement,
amounts deferred before January 1, 2005 that are earned and vested on December 31, 2004 will
be separately accounted for and administered in accordance with the terms of the Plan as in
effect on December 31, 2004.

 

1-1

 

ARTICLE 2 — DEFINITIONS

Pronouns used in the Plan are in the masculine gender but include the feminine gender unless the
context clearly indicates otherwise. Wherever used herein, the following terms have the meanings
set forth below, unless a different meaning is clearly required by the context:

	2.1	 	“Account” means an account established for the purpose of recording amounts credited on
behalf of a Participant and any income, expenses, gains, losses or distributions included
thereon. The Account shall be a bookkeeping entry only and shall be utilized solely as a
device for the measurement and determination of the amounts to be paid to a Participant or to
the Participant’s Beneficiary pursuant to the Plan.
	 
	2.2	 	“Administrator” means the person or persons designated by the Plan Sponsor in Section 1.05 of
the Adoption Agreement to be responsible for the administration of the Plan. If no
Administrator is designated in the Adoption Agreement, the Administrator is the Plan Sponsor.
	 
	2.3	 	“Adoption Agreement” means the agreement adopted by the Plan Sponsor that establishes the
Plan.
	 
	2.4	 	“Beneficiary” means the persons, trusts, estates or other entities entitled under Section 8.2
to receive benefits under the Plan upon the death of a Participant.
	 
	2.5	 	“Board” or “Board of Directors” means the Board of Directors of the Plan Sponsor.
	 
	2.6	 	“Bonus” means an amount of cash incentive remuneration payable by the Employer to a
Participant.
	 
	2.7	 	“Change in Control” means the occurrence of an event involving the Plan Sponsor that is
described in Section 9.7.
	 
	2.8	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	2.9	 	“Compensation” has the meaning specified in Section 3.01 of the Adoption Agreement.
	 
	2.10	 	“Director” means a non-employee member of the Board who has been designated by the Employer
as eligible to participate in the Plan.

 

2-1

 

	2.11	 	“Disability” means a determination by the Administrator that the Participant is either (a)
unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months, or (b) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or last
for a continuous period of not less than twelve months, receiving income replacement benefits
for a period of not less than three months under an accident and health plan covering
employees of the Employer. A Participant will be considered to have incurred a Disability if
he is determined to be totally disabled by the Social Security Administration or the Railroad
Retirement Board or is considered disabled for purposes of eligibility to receive benefits
under the Employer’s long term disability plan.
	 
	2.12	 	“Eligible Employee” means an employee of the Employer who satisfies the requirements in
Section 2.01 of the Adoption Agreement.
	 
	2.13	 	“Employer” means the Plan Sponsor and any other entity which is authorized by the Plan
Sponsor to participate in and, in fact, does adopt the Plan.
	 
	2.14	 	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
	 
	2.15	 	“Identification Date” means the date as of which Key Employees are determined which is
specified in Section 1.06 of the Adoption Agreement.
	 
	2.16	 	“Key Employee” means an employee who satisfies the conditions set forth in Section 9.6.
	 
	2.17	 	“Participant” means an Eligible Employee or Director who commences participation in the Plan
in accordance with Article 3.
	 
	2.18	 	“Plan” means the unfunded plan of deferred compensation set forth herein, including the
Adoption Agreement and any trust agreement, as adopted by the Plan Sponsor and as amended from
time to time.
	 
	2.19	 	“Plan Sponsor” means the entity identified in Section 1.03 of the Adoption Agreement or any
successor by merger, consolidation or otherwise.
	 
	2.20	 	“Plan Year” means the period identified in Section 1.02 of the Adoption Agreement.

 

2-2

 

	2.21	 	“Related Employer” means the Employer and (a) any corporation that is a member of a
controlled group of corporations as defined in Code Section 414(b) that includes the
Employer and (b) any trade or business that is under common control as defined in Code
Section 414(c) that includes the Employer.
	 
	2.22	 	“Retirement” has the meaning specified in 6.01(f) of the Adoption Agreement.
	 
	2.23	 	“Separation from Service” means the date that the Participant dies, retires or otherwise has
a termination of employment with respect to all entities comprising the Related Employer. A
Separation from Service does not occur if the Participant is on military leave, sick leave or
other bona fide leave of absence if the period of leave does not exceed six months or such
longer period during which the Participant’s right to re-employment is provided by statute or
contract. If the period of leave exceeds six months and the Participant’s right to
re-employment is not provided either by statute or contract, a Separation from Service will be
deemed to have occurred on the first day following the six-month period. If the period of
leave is 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 six
months, where the impairment causes the Participant to be unable to perform the duties of his
or her position of employment or any substantially similar position of employment, a 29 month
period of absence may be substituted for the six month period.
	 
	 	 	Whether a termination of employment has occurred is based on whether the facts and
circumstances indicate that the Related Employer and the Participant reasonably anticipated
that no further services would be performed after a certain date or that the level of bona
fide services the Participant would perform after such date (whether as an employee or as an
independent contractor) would permanently decrease to no more than 20 percent of the average
level of bona fide services performed (whether as an employee or an independent contractor)
over the immediately preceding 36 month period (or the full period of services to the
Related Employer if the employee has been providing services to the Related Employer for
less than 36 months). If a Participant continues to provide services to a Related Employer
in a capacity other than as an employee, the Participant will not be deemed to have a
termination of employment if the Participant is providing services at an annual rate that is
at least 50 percent of the services rendered by such individual, on average, during the
immediately preceding 36 month period of employment (or such lesser period of employment)
and the annual remuneration for such services is at least 50 percent of the average annual
remuneration earned during the such 36 calendar months of employment (or such lesser period
of employment).
	 
	 	 	An independent contractor is considered to have experienced a Separation from Service with
the Related Employer upon the expiration of the contract (or, in the case of more than one
contract, all contracts) under which services are performed for the Related Employer if the
expiration constitutes a good-faith and complete termination of the contractual
relationship.

 

2-3

 

	 	 	If a Participant provides services as both an employee and an independent contractor of the
Related Employer, the Participant must separate from service both as an employee and as an
independent contractor to be treated as having incurred a Separation from Service. If a
Participant ceases providing services as an independent contractor and begins providing
services as an employee, or ceases providing services as an employee and begins providing
services as an independent contractor, the Participant will not be considered to have
experienced a Separation from Service until the Participant has ceased providing services in
both capacities.
	 
	 	 	If a Participant provides services both as an employee and as a member of the board of
directors of a corporate Related Employer (or an analogous position with respect to a
noncorporate Related Employer), the services provided as a director are not taken into
account in determining whether the Participant has incurred a Separation from Service as an
employee for purposes of a nonqualified deferred compensation plan in which the Participant
participates as an employee that is not aggregated under Code Section 409A with any plan in
which the Participant participates as a director.
	 
	 	 	If a Participant provides services both as an employee and as a member of the board of
directors of a corporate Related Employer (or an analogous position with respect to a
noncorporate Related Employer), the services provided as an employee are not taken into
account in determining whether the Participant has experienced a Separation from Service as
a director for purposes of a nonqualified deferred compensation plan in which the
Participant participates as a director that is not aggregated under Code Section 409A with
any plan in which the Participant participates as an employee.
	 
	 	 	All determinations of whether a Separation from Service has occurred will be made in a
manner consistent with Code Section 409A and the final regulations thereunder.
	 
	2.24	 	“Unforeseeable Emergency” means a severe financial hardship of the Participant resulting from
an illness or accident of the Participant, the Participant’s spouse, the Participant’s
Beneficiary, or the Participant’s dependent (as defined in Code Section 152, without regard to
Code section 152(b)(i), (b)(2) and (d)(i)(B); loss of the Participant’s property due to
casualty; or other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant.
	 
	2.25	 	“Valuation Date” means each business day of the Plan Year.
	 
	2.26	 	“Years of Service” means each one year period for which the Participant receives service
credit in accordance with the provisions of Section 7.01(d) of the Adoption Agreement.

 

2-4

 

ARTICLE 3 — PARTICIPATION

	3.1	 	Participation. The Participants in the Plan shall be those Directors and employees of the
Employer who satisfy the requirements of Section 2.01 of the Adoption Agreement.
	 
	3.2	 	Termination of Participation. The Administrator may terminate a Participant’s participation
in the Plan in a manner consistent with Code Section 409A. If the Employer terminates a
Participant’s participation before the Participant experiences a Separation from Service the
Participant’s vested Accounts shall be paid in accordance with the provisions of Article 9.

 

3-1

 

ARTICLE 4 — PARTICIPANT ELECTIONS

	4.1	 	Deferral Agreement. If permitted by the Plan Sponsor in accordance with Section 4.01 of the
Adoption Agreement, each Eligible Employee and Director may elect to defer his Compensation
within the meaning of Section 3.01 of the Adoption Agreement by executing in writing or
electronically, a deferral agreement in accordance with rules and procedures established by
the Administrator and the provisions of this Article 4.
	 
	 	 	A new deferral agreement must be timely executed for each Plan Year during which the
Eligible Employee or Director desires to defer Compensation. An Eligible Employee or
Director who does not timely execute a deferral agreement shall be deemed to have elected
zero deferrals of Compensation for such Plan Year.
	 
	 	 	A deferral agreement may be changed or revoked during the period specified by the
Administrator. Except as provided in Section 9.3 or in Section 4.01(c) of the Adoption
Agreement, a deferral agreement becomes irrevocable at the close of the specified period.
	 
	4.2	 	Amount of Deferral. An Eligible Employee or Director may elect to defer Compensation in any
amount permitted by Section 4.01(a) of the Adoption Agreement.
	 
	4.3	 	Timing of Election to Defer. Each Eligible Employee or Director who desires to defer
Compensation otherwise payable during a Plan Year must execute a deferral agreement within the
period preceding the Plan Year specified by the Administrator. Each Eligible Employee who
desires to defer Compensation that is a Bonus must execute a deferral agreement within the
period preceding the Plan Year during which the Bonus is earned that is specified by the
Administrator, except that if the Bonus can be treated as performance based compensation as
described in Code Section 409A(a)(4)(B)(iii), the deferral agreement may be executed within
the period specified by the Administrator, which period, in no event, shall end after the date
which is six months prior to the end of the period during which the Bonus is earned, provided
the Participant has performed services continuously from the later of the beginning of the
performance period or the date the performance criteria are established through the date the
Participant executed the deferral agreement and provided further that the compensation has not
yet become ‘readily ascertainable’ within the meaning of Reg. Sec 1.409A-2(a)(8). In
addition, if the Compensation qualifies as ‘fiscal year compensation’ within the meaning of
Reg. Sec. 1.409A -2(a)(6), the deferral agreement may be made not later than the end of the
Employer’s taxable year immediately preceding the first taxable year of the Employer in which
any services are performed for which such Compensation is payable.

 

4-1

 

	 	 	Except as otherwise provided below, an employee who is classified or designated as an
Eligible Employee during a Plan Year or a Director who is designated as eligible to
participate during a Plan Year may elect to defer Compensation otherwise payable during the
remainder of such Plan Year in accordance with the rules of this Section 4.3 by executing a
deferral agreement within the thirty (30) day period beginning on the date the employee is
classified or designated as an Eligible Employee or the date the Director is designated as
eligible, whichever is applicable, if permitted by Section 4.01(b)(ii) of the Adoption
Agreement. If Compensation is based on a specified performance period that begins before
the Eligible Employee or Director executes his deferral agreement, the election will be
deemed to apply to the portion of such Compensation equal to the total amount of
Compensation for the performance period multiplied by the ratio of the number of days
remaining in the performance period after the election becomes irrevocable and effective
over the total number of days in the performance period. The rules of this paragraph shall
not apply unless the Eligible Employee or Director can be treated as initially eligible in
accordance with Reg. Sec. 1.409A-2(a)(7).
	 
	4.4	 	Election of Payment Schedule and Form of Payment.
	 
	 	 	All elections of a payment schedule and a form of payment will be made in accordance with
rules and procedures established by the Administrator and the provisions of this Section
4.4.

	 	(a)	 	If the Plan Sponsor has elected to permit annual distribution elections in
accordance with Section 6.01(h) of the Adoption Agreement the following rules apply.
At the time an Eligible Employee or Director completes a deferral agreement, the
Eligible Employee or Director must elect a distribution event (which includes a
specified time) and a form of payment for the Compensation subject to the deferral
agreement from among the options the Plan Sponsor has made available for this purpose
and which are specified in 6.01(b) of the Adoption Agreement. Unless otherwise
provided in Section 6.01(b) of the Adoption Agreement, prior to the time required by
Reg. Sec. 1.409A-2, the Eligible Employee or Director shall elect a distribution event
(which includes a specified time) and a form of payment for any Employer contributions
that may be credited to the Participant’s Account during the Plan Year. If an Eligible
Employee or Director fails to elect a distribution event, he shall be deemed to have
elected Separation from Service as the distribution event. If he fails to elect a form
of payment, he shall be deemed to have elected a lump sum form of payment.

 

4-2

 

	 	(b)	 	If the Plan Sponsor has elected not to permit annual distribution elections in
accordance with Section 6.01(h) of the Adoption Agreement the following rules apply.
At the time an Eligible Employee or Director first completes a deferral agreement
but in no event later than the time required by Reg. Sec. 1.409A-2, the Eligible
Employee or Director must elect a distribution event (which includes a specified
time) and a form of payment for amounts credited to his Account from among the
options the Plan Sponsor has made available for this purpose and which are specified
in Section 6.01(b) of the Adoption Agreement. If an Eligible Employee or Director
fails to elect a distribution event, he shall be deemed to have elected Separation
from Service in the distribution event. If he fails to elect a form of payment, he
shall be deemed to have elected a lump sum form of payment.

 

4-3

 

ARTICLE 5 — EMPLOYER CONTRIBUTIONS

	5.1	 	Matching Contributions. If elected by the Plan Sponsor in Section 5.01(a) of the Adoption
Agreement, the Employer will credit the Participant’s Account with a matching contribution
determined in accordance with the formula specified in Section 5.01(a) of the Adoption
Agreement. The matching contribution will be treated as allocated to the Participant’s
Account at the time specified in Section 5.01(a)(iii) of the Adoption Agreement.
	 
	5.2	 	Other Contributions. If elected by the Plan Sponsor in Section 5.01(b) of the Adoption
Agreement, the Employer will credit the Participant’s Account with a contribution determined
in accordance with the formula or method specified in Section 5.01(b) of the Adoption
Agreement. The contribution will be treated as allocated to the Participant’s Account at the
time specified in Section 5.01(b)(iii) of the Adoption Agreement.

 

5-1

 

ARTICLE 6 — ACCOUNTS AND CREDITS

	6.1	 	Establishment of Account. For accounting and computational purposes only, the Administrator
will establish and maintain an Account on behalf of each Participant which will reflect the
credits made pursuant to Section 6.2, distributions or withdrawals, along with the earnings,
expenses, gains and losses allocated thereto, attributable to the hypothetical investments
made with the amounts in the Account as provided in Article 7. The Administrator will
establish and maintain such other records and accounts, as it decides in its discretion to be
reasonably required or appropriate to discharge its duties under the Plan.
	 
	6.2	 	Credits to Account. A Participant’s Account will be credited for each Plan Year with the
amount of his elective deferrals under Section 4.1 at the time the amount subject to the
deferral election would otherwise have been payable to the Participant and the amount of
Employer contributions treated as allocated on his behalf under Article 5. Deferrals of Plan
Sponsor stock awarded under the Hillenbrand, Inc. Stock Incentive Plan shall be credited to
and accounted for separately in a subaccount (the “Plan Sponsor Stock Account”) established
for this purpose by the Administrator.

 

6-1

 

ARTICLE 7 — INVESTMENT OF CONTRIBUTIONS

	7.1	 	Investment Options. The amount credited to each Account shall be treated as invested in the
investment options designated for this purpose by the Administrator.
	 
	7.2	 	Adjustment of Accounts. The amount credited to each Account shall be adjusted for
hypothetical investment earnings, expenses, gains or losses in an amount equal to the
earnings, expenses, gains or losses attributable to the investment options selected by the
party designated in Section 9.01 of the Adoption Agreement from among the investment options
provided in Section 7.1. If permitted by Section 9.01 of the Adoption Agreement, a
Participant (or the Participant’s Beneficiary after the death of the Participant) may, in
accordance with rules and procedures established by the Administrator, select the investments
from among the options provided in Section 7.1 to be used for the purpose of calculating
future hypothetical investment adjustments to the Account or to future credits to the Account
under Section 6.2 effective as of the Valuation Date coincident with or next following notice
to the Administrator. Each Account shall be adjusted as of each Valuation Date to reflect:
(a) the hypothetical earnings, expenses, gains and losses described above; (b) amounts
credited pursuant to Section 6.2; (c) dividends with respect to Plan Sponsor stock credited to
the subaccount described in Section 6.2; and (d) distributions or withdrawals. In addition,
each Account may be adjusted for its allocable share of the hypothetical costs and expenses
associated with the maintenance of the hypothetical investments provided in Section 7.1. The
number of shares of Plan Sponsor stock (if any), credited to the subaccount described in
Section 6.2 shall be adjusted by the Board of Directors of the Plan Sponsor, as it deems
appropriate, to reflect stock dividends, stock splits, reclassifications, spinoffs and other
extraordinary distributions.

 

7-1

 

ARTICLE 8 — RIGHT TO BENEFITS

	8.1	 	Vesting. A Participant, at all times, has the 100% nonforfeitable interest in the amounts
credited to his Account attributable to his elective deferrals made in accordance with Section
4.1.
	 
	 	 	A Participant’s right to the amounts credited to his Account attributable to Employer
contributions made in accordance with Article 5 shall be determined in accordance with the
relevant schedule and provisions in Section 7.01 of the Adoption Agreement. Upon a
Separation from Service and after application of the provisions of Section 7.01 of the
Adoption Agreement, the Participant shall forfeit the nonvested portion of his Account.
	 
	8.2	 	Death. The Plan Sponsor may elect to accelerate vesting upon the death of the Participant in
accordance with Section 7.01(c) of the Adoption Agreement and/or to accelerate distributions
upon Death in accordance with Section 6.01(b) or Section 6.01(d) of the Adoption Agreement.
If the Plan Sponsor does not elect to accelerate distributions upon death in accordance with
Section 6.01(b) or Section 6.01(d) of the Adoption Agreement, the vested amount credited to
the Participant’s Account will be paid in accordance with the provisions of Article 9.
	 
	 	 	A Participant may designate a Beneficiary or Beneficiaries, or change any prior designation
of Beneficiary or Beneficiaries in accordance with rules and procedures established by the
Administrator.
	 
	 	 	A copy of the death notice or other sufficient documentation must be filed with and approved
by the Administrator. If upon the death of the Participant there is, in the opinion of the
Administrator, no designated Beneficiary for part or all of the Participant’s vested
Account, such amount will be paid to his estate (such estate shall be deemed to be the
Beneficiary for purposes of the Plan) in accordance with the provisions of Article 9.
	 
	8.3	 	Disability. If the Plan Sponsor has elected to accelerate vesting upon the occurrence of a
Disability in accordance with Section 7.01(c) of the Adoption Agreement and/or to permit
distributions upon Disability in accordance with Section 6.01(b) or Section 6.01(d) of the
Adoption Agreement, the determination of whether a Participant has incurred a Disability shall
be made by the Administrator in its sole discretion in a manner consistent with the
requirements of Code Section 409A.

 

8-1

 

ARTICLE 9 — DISTRIBUTION OF BENEFITS

	9.1	 	Amount of Benefits. The vested amount credited to a Participant’s Account as determined
under Articles 6, 7 and 8 shall determine and constitute the basis for the value of benefits
payable to the Participant under the Plan.
	 
	9.2	 	Method and Timing of Distributions. Except as otherwise provided in this Article 9,
distributions under the Plan shall be made in accordance with the terms of the Plan and the
Adoption Agreement. Subject to the provisions of Section 9.6 requiring a six month delay for
certain distributions to Key Employees, distributions following a payment event shall commence
at the time specified in Section 6.01(a) of the Adoption Agreement. If permitted by Section
6.01(g) of the Adoption Agreement, a Participant may elect, at least twelve months before a
scheduled distribution event, to delay the payment date for a minimum period of sixty months
from the originally scheduled date of payment, provided the election does not take effect for
at least twelve months from the date on which the election is made. The distribution election
change must be made in accordance with procedures and rules established by the Administrator.
The Participant may, at the same time the date of payment is deferred, change the form of
payment but such change in the form of payment may not effect an acceleration of payment in
violation of Code Section 409A or the provisions of Reg. Sec. 1.409A-2(b). For purposes of
this Section 9.2, a series of installment payments is always treated as a single payment and
not as a series of separate payments. All distributions other than those attributable to the
Plan Sponsor Stock Account described in Section 6.2 shall be made in cash. Distributions
attributable to the Plan Sponsor Stock Account shall be made in Plan Sponsor Stock.
	 
	9.3	 	Unforeseeable Emergency. A Participant may request a distribution due to an Unforeseeable
Emergency if the Plan Sponsor has elected to permit Unforeseeable Emergency withdrawals under
Section 8.01(a) of the Adoption Agreement. The request must be in writing and must be
submitted to the Administrator along with evidence that the circumstances constitute an
Unforeseeable Emergency. The Administrator has the discretion to require whatever evidence it
deems necessary to determine whether a distribution is warranted, and may require the
Participant to certify that the need cannot be met from other sources reasonably available to
the Participant. Whether a Participant has incurred an Unforeseeable Emergency will be
determined by the Administrator on the basis of the relevant facts and circumstances in its
sole discretion, but, in no event, will an Unforeseeable Emergency be deemed to exist if the
hardship can be relieved: (a) through reimbursement or compensation by insurance or
otherwise, (b) by liquidation of the Participant’s assets to the extent such liquidation would
not itself cause severe financial hardship, or (c) by cessation of deferrals under the Plan.

 

9-1

 

	 	 	A distribution due to an Unforeseeable Emergency must be limited to the amount reasonably
necessary to satisfy the emergency need and may include any amounts necessary to pay any
federal, state, foreign or local income taxes and penalties reasonably anticipated to result
from the distribution. The distribution will be made in the form of a single lump sum cash
payment. If permitted by Section 8.01(b) of the Adoption Agreement, a Participant’s
deferral elections for the remainder of the Plan Year will be cancelled upon a withdrawal
due to an Unforeseeable Emergency. If the payment of all or any portion of the
Participant’s vested Account is being delayed in accordance with Section 9.6 at the time he
experiences an Unforeseeable Emergency, the amount being delayed shall not be subject to the
provisions of this Section 9.3 until the expiration of the six month period of delay
required by Section 9.6.
	 
	9.4	 	Payment Election Overrides. If the Plan Sponsor has elected one or more payment election
overrides in accordance with Section 6.01(d) of the Adoption Agreement, the following
provisions apply. Upon the occurrence of the first event selected by the Plan Sponsor, the
remaining vested amount credited to the Participant’s Account shall be paid in the form
designated to the Participant or his Beneficiary regardless of whether the Participant had
made different elections of time and /or form of payment or whether the Participant was
receiving installment payments at the time of the event.
	 
	9.5	 	Cashouts of Amounts Not Exceeding Stated Limit. If the vested amount credited to the
Participant’s Account does not exceed the limit established for this purpose by the Plan
Sponsor in Section 6.01(e) of the Adoption Agreement at the time he incurs a Separation from
Service for any reason, the Employer shall distribute such amount to the Participant at the
time specified in Section 6.01(a) of the Adoption Agreement in a single lump sum cash payment
following such Separation from Service regardless of whether the Participant had made
different elections of time or form of payment as to the vested amount credited to his Account
or whether the Participant was receiving installments at the time of such termination. A
Participant’s Account, for purposes of this Section 9.5, shall include any amounts described
in Section 1.3.
	 
	9.6	 	Required Delay in Payment to Key Employees. Except as otherwise provided in this Section
9.6, a distribution made on account of Separation from Service (or Retirement, if applicable)
to a Participant who is a Key Employee as of the date of his Separation from Service (or
Retirement, if applicable) shall not be made before the date which is six months after the
Separation from Service (or Retirement, if applicable).

 

9-2

 

	 	(a)	 	A Participant is treated as a Key Employee if (i) he is employed by a Related
Employer any of whose stock is publicly traded on an established securities market, and
(ii) he satisfies the requirements of Code Section 416(i)(1)(A)(i), (ii) or (iii),
determined without regard to Code Section 416(i)(5), at any time during the twelve
month period ending on the Identification Date.
	 
	 	(b)	 	A Participant who is a Key Employee on an Identification Date shall be treated
as a Key Employee for purposes of the six month delay in distributions for the twelve
month period beginning on the first day of a month no later than the fourth month
following the Identification Date. The Identification Date and the effective date of
the delay in distributions shall be determined in accordance with Section 1.06 of the
Adoption Agreement.
	 
	 	(c)	 	The Plan Sponsor may elect to apply an alternative method to identify
Participants who will be treated as Key Employees for purposes of the six month delay
in distributions if the method satisfies each of the following requirements. The
alternative method is reasonably designed to include all Key Employees, is an
objectively determinable standard providing no direct or indirect election to any
Participant regarding its application, and results in either all Key Employees or no
more than 200 Key Employees being identified in the class as of any date. Use of an
alternative method that satisfies the requirements of this Section 9.6(c) will not be
treated as a change in the time and form of payment for purposes of Reg. Sec.
1.409A-2(b).
	 
	 	(d)	 	The six month delay does not apply to payments described in Section 9.9(a),(b)
or (d) or to payments that occur after the death of the Participant. If the payment of
all or any portion of the Participant’s vested Account is being delayed in accordance
with this Section 9.6 at the time he incurs a Disability which would otherwise require
a distribution under the terms of the Plan, no amount shall be paid until the
expiration of the six month period of delay required by this Section 9.6.

	9.7	 	Change in Control. If the Plan Sponsor has elected to permit distributions upon a Change in
Control, the following provisions shall apply. A distribution made upon a Change in Control
will be made at the time specified in Section 6.01(a) of the Adoption Agreement in the form
elected by the Participant in accordance with the procedures described in Article 4.

 

9-3

 

	 	 	Alternatively, if the Plan Sponsor has elected in accordance with Section 11.02 of the
Adoption Agreement to require distributions upon a Change in Control, the Participant’s
remaining vested Account shall be paid to the Participant or the Participant’s Beneficiary
at the time specified in Section 6.01(a) of the Adoption Agreement as a single lump sum
payment. A Change in Control, for purposes of the Plan, will occur upon a change in the
ownership of the Plan Sponsor, a change in the effective control of the Plan Sponsor or a
change in the ownership of a substantial portion of the assets of the Plan Sponsor, but only
if elected by the Plan Sponsor in Section 11.03 of the Adoption Agreement. The Plan
Sponsor, for this purpose, includes any corporation identified in this Section 9.7. All
distributions made in accordance with this Section 9.7 are subject to the provisions of
Section 9.6.
	 
	 	 	If a Participant continues to make deferrals in accordance with Article 4 after he has
received a distribution due to a Change in Control, the residual amount payable to the
Participant shall be paid at the time and in the form specified in the elections he makes in
accordance with Article 4 or upon his death or Disability as provided in Article 8.
	 
	 	 	Whether a Change in Control has occurred will be determined by the Administrator in
accordance with the rules and definitions set forth in this Section 9.7. A distribution to
the Participant will be treated as occurring upon a Change in Control if the Plan Sponsor
terminates the Plan in accordance with Section 10.2 and distributes the Participant’s
benefits within twelve months of a Change in Control as provided in Section 10.3.

	 	(a)	 	Relevant Corporations. To constitute a Change in Control for purposes of the
Plan, the event must relate to (i) the corporation for whom the Participant is
performing services at the time of the Change in Control, (ii) the corporation that is
liable for the payment of the Participant’s benefits under the Plan (or all
corporations liable if more than one corporation is liable) but only if either the
deferred compensation is attributable to the performance of services by the Participant
for such corporation (or corporations) or there is a bona fide business purpose for
such corporation (or corporations) to be liable for such payment and, in either case,
no significant purpose of making such corporation (or corporations) liable for such
payment is the avoidance of federal income tax, or (iii) a corporation that is a
majority shareholder of a corporation identified in (i) or (ii), or any corporation in
a chain of corporations in which each corporation is a majority shareholder of another
corporation in the chain, ending in a corporation identified in (i) or (ii). A
majority shareholder is defined as a shareholder owning more than fifty percent (50%)
of the total fair market value and voting power of such corporation.

 

9-4

 

	 	(b)	 	Stock Ownership. Code Section 318(a) applies for purposes of determining stock
ownership. Stock underlying a vested option is considered owned by the individual who
owns the vested option (and the stock underlying an unvested option is not considered
owned by the individual who holds the unvested option). If, however, a vested option
is exercisable for stock that is not substantially vested (as defined by Treasury
Regulation Section 1.83-3(b) and (j)) the stock underlying the option is not treated
as owned by the individual who holds the option.
	 
	 	(c)	 	Change in the Ownership of a Corporation. A change in the ownership of a
corporation occurs on the date that any one person or more than one person acting as a
group, acquires ownership of stock of the corporation that, together with stock held by
such person or group, constitutes more than fifty percent (50%) of the total fair
market value or total voting power of the stock of such corporation. If any one person
or more than one person acting as a group is considered to own more than fifty percent
(50%) of the total fair market value or total voting power of the stock of a
corporation, the acquisition of additional stock by the same person or persons is not
considered to cause a change in the ownership of the corporation (or to cause a change
in the effective control of the corporation as discussed below in Section 9.7(d)). An
increase in the percentage of stock owned by any one person, or persons acting as a
group, as a result of a transaction in which the corporation acquires its stock in
exchange for property will be treated as an acquisition of stock. Section 9.7(c)
applies only when there is a transfer of stock of a corporation (or issuance of stock
of a corporation) and stock in such corporation remains outstanding after the
transaction. For purposes of this Section 9.7(c), persons will not be considered to be
acting as a group solely because they purchase or own stock of the same corporation at
the same time or as a result of a public offering. Persons will, however, be
considered to be acting as a group if they are owners of a corporation that enters into
a merger, consolidation, purchase or acquisition of stock, or similar business
transaction with the corporation. If a person, including an entity, owns stock in both
corporations that enter into a merger, consolidation, purchase or acquisition of stock,
or similar transaction, such shareholder is considered to be acting as a group with
other shareholders in a corporation prior to the transaction giving rise to the change
and not with respect to the ownership interest in the other corporation.

 

9-5

 

	 	(d)	 	Change in the Effective Control of a Corporation. A change in the effective control
of a corporation occurs on the date that either (i) any one person, or more than one
person acting as a group, acquires (or has acquired during the twelve month period
ending on the date of the most recent acquisition by such person or persons) ownership
of stock of the corporation possessing thirty percent (30%) or more of the total
voting power of the stock of such corporation, or (ii) a majority of members of the
corporation’s board of directors is replaced during any twelve month period by
directors whose appointment or election is not endorsed by a majority of the members
of the corporation’s board of directors prior to the date of the appointment or
election, provided that for purposes of this paragraph (ii), the term corporation
refers solely to the relevant corporation identified in Section 9.7(a) for which no
other corporation is a majority shareholder for purposes of Section 9.7(a). In the
absence of an event described in Section 9.7(d)(i) or (ii), a change in the effective
control of a corporation will not have occurred. A change in effective control may
also occur in any transaction in which either of the two corporations involved in the
transaction has a change in the ownership of such corporation as described in Section
9.7(c) or a change in the ownership of a substantial portion of the assets of such
corporation as described in Section 9.7(e). If any one person, or more than one
person acting as a group, is considered to effectively control a corporation within
the meaning of this Section 9.7(d), the acquisition of additional control of the
corporation by the same person or persons is not considered to cause a change in the
effective control of the corporation or to cause a change in the ownership of the
corporation within the meaning of Section 9.7(c). For purposes of this Section
9.7(d), persons will or will not be considered to be acting as a group in accordance
with rules similar to those set forth in Section 9.7(c) with the following exception.
If a person, including an entity, owns stock in both corporations that enter into a
merger, consolidation, purchase or acquisition of stock, or similar transaction, such
shareholder is considered to be acting as a group with other shareholders in a
corporation only with respect to the ownership in that corporation prior to the
transaction giving rise to the change and not with respect to the ownership interest
in the other corporation.

 

9-6

 

	 	(e)	 	Change in the Ownership of a Substantial Portion of a Corporation’s Assets. A change
in the ownership of a substantial portion of a corporation’s assets occurs on the date
that any one person, or more than one person acting as a group (as determined in
accordance with rules similar to those set forth in Section 9.7(d)), acquires (or has
acquired during the twelve month period ending on the date of the most recent
acquisition by such person or persons) assets from the corporation that have a total
gross fair market value equal to or more than forty percent (40%) of the total gross
fair market value of all of the assets of the corporation immediately prior to such
acquisition or acquisitions. For this purpose, gross fair market value means the
value of the assets of the corporation or the value of the assets being disposed of
determined without regard to any liabilities associated with such assets. There is no
Change in Control event under this Section 9.7(e) when there is a transfer to an
entity that is controlled by the shareholders of the transferring corporation
immediately after the transfer. A transfer of assets by a corporation is not treated
as a change in ownership of such assets if the assets are transferred to (i) a
shareholder of the corporation (immediately before the asset transfer) in exchange for
or with respect to its stock, (ii) an entity, fifty percent (50%) or more of the total
value or voting power of which is owned, directly or indirectly, by the corporation,
(iii) a person, or more than one person acting as a group, that owns, directly or
indirectly, fifty percent (50%) or more of the total value or voting power of all the
outstanding stock of the corporation, or (iv) an entity, at least fifty (50%) of the
total value or voting power of which is owned, directly or indirectly, by a person
described in Section 9.7(e)(iii). For purposes of the foregoing, and except as
otherwise provided, a person’s status is determined immediately after the transfer of
assets.

	9.8	 	Permissible Delays in Payment. Distributions may be delayed beyond the date payment would
otherwise occur in accordance with the provisions of Articles 8 and 9 in any of the following
circumstances as long as the Employer treats all payments to similarly situated Participants
on a reasonably consistent basis.

 

9-7

 

	 	(a)	 	The Employer may delay payment if it reasonably anticipates that its deduction with
respect to such payment would be limited or eliminated by the application of Code
Section 162(m). Payment must be made during the Participant’s first taxable year in
which the Employer reasonably anticipates, or should reasonably anticipate, that if
the payment is made during such year the deduction of such payment will not be barred
by the application of Code Section 162(m) or during the period beginning with the
Participant’s Separation from Service and ending on the later of the last day of the
Employer’s taxable year in which the Participant separates from service or the 15th
day of the third month following the Participant’s Separation from Service. If a
scheduled payment to a Participant is delayed in accordance with this Section 9.8(a),
all scheduled payments to the Participant that could be delayed in accordance with
this Section 9.8(a) will also be delayed.
	 
	 	(b)	 	The Employer may also delay payment if it reasonably anticipates that the
making of the payment will violate federal securities laws or other applicable laws
provided payment is made at the earliest date on which the Employer reasonably
anticipates that the making of the payment will not cause such violation.
	 
	 	(c)	 	The Employer reserves the right to amend the Plan to provide for a delay in
payment upon such other events and conditions as the Secretary of the Treasury may
prescribe in generally applicable guidance published in the Internal Revenue Bulletin.

	9.9	 	Permitted Acceleration of Payment. The Employer may permit acceleration of the time or
schedule of any payment or amount scheduled to be paid pursuant to a payment under the Plan
provided such acceleration would be permitted by the provisions of Reg. Sec. 1.409A-3(j)(4),
including the following events:

	 	(a)	 	Domestic Relations Order. A payment may be accelerated if such payment is made
to an alternate payee pursuant to and following the receipt and qualification of a
domestic relations order as defined in Code Section 414(p).
	 
	 	(b)	 	Compliance with Ethics Agreements and Legal Requirements. A payment may be
accelerated as may be necessary to comply with ethics agreements with the Federal
government or as may be reasonably necessary to avoid the violation of Federal, state,
local or foreign ethics law or conflicts of laws, in accordance with the requirements
of Code Section 409A.

 

9-8

 

	 	(c)	 	De Minimis Amounts. A payment will be accelerated if (i) the amount of the payment
is not greater than the applicable dollar amount under Code Section 402(g)(1)(B),
and (ii) at the time the payment is made the amount constitutes the Participant’s
entire interest under the Plan and all other plans that are aggregated with the Plan
under Reg. Sec. 1.409A-1(c)(2).
	 
	 	(d)	 	FICA Tax. A payment may be accelerated to the extent required to pay the
Federal Insurance Contributions Act tax imposed under Code Sections 3101, 3121(a) and
3121(v)(2) of the Code with respect to compensation deferred under the Plan (the “FICA
Amount”). Additionally, a payment may be accelerated to pay the income tax on wages
imposed under Code Section 3401 of the Code on the FICA Amount and to pay the
additional income tax at source on wages attributable to the pyramiding Code Section
3401 wages and taxes. The total payment under this subsection (d) may not exceed the
aggregate of the FICA Amount and the income tax withholding related to the FICA Amount.
	 
	 	(e)	 	Section 409A Additional Tax. A payment may be accelerated if the Plan fails to
meet the requirements of Code Section 409A; provided that such payment may not exceed
the amount required to be included in income as a result of the failure to comply with
the requirements of Code Section 409A.
	 
	 	(f)	 	Offset. A payment may be accelerated in the Employer’s discretion as
satisfaction of a debt of the Participant to the Employer, where such debt is incurred
in the ordinary course of the service relationship between the Participant and the
Employer, the entire amount of the reduction in any of the Employer’s taxable years
does not exceed $5,000, and the reduction is made at the same time and in the same
amount as the debt otherwise would have been due and collected from the Participant.
	 
	 	(g)	 	Other Events. A payment may be accelerated in the Administrator’s discretion
in connection with such other events and conditions as permitted by Code Section 409A.

 

9-9

 

	9.10	 	Securities Law Requirements. Each distribution under the Plan shall be subject to the
requirement that, if at any time the Administrator shall determine that (i) the listing,
registration or qualification of the Plan Sponsor Stock to be distributed upon any
securities exchange or market or under any state or federal law, or (ii) the consent or
approval of any government regulatory body with respect to such distribution or (iii) an
agreement by the Participant with respect to the disposition of Plan Sponsor Stock
distributed under the Plan is necessary or desirable in order to satisfy any legal
requirements, such distribution shall not be made, in whole or in part, unless such listing,
registration, qualification, consent, approval or agreement shall have been effected or
obtained free of any conditions not acceptable to the Administrator. The Plan Sponsor shall
have no obligation to effect any registration or qualification of the Plan Sponsor Stock
under federal or state laws or to compensate a Participant for any loss resulting from the
application of this Section.

 

9-10

 

ARTICLE 10 — AMENDMENT AND TERMINATION

	10.1	 	Amendment by Plan Sponsor. The Plan Sponsor reserves the right to amend the Plan (for itself
and each Employer) through action of its Board of Directors. No amendment can directly or
indirectly deprive any current or former Participant or Beneficiary of all or any portion of
his Account which had accrued and vested prior to the amendment.
	 
	10.2	 	Plan Termination Following Change in Control or Corporate Dissolution. If so elected by the
Plan Sponsor in 11.01 of the Adoption Agreement, the Plan Sponsor reserves the right to
terminate the Plan and distribute all amounts credited to all Participant Accounts within the
30 days preceding or the twelve months following a Change in Control as determined in
accordance with the rules set forth in Section 9.7. For this purpose, the Plan will be treated
as terminated only if all agreements, methods, programs and other arrangements sponsored by
the Related Employer immediately after the Change in Control which are treated as a single
plan under Reg. Sec. 1.409A-1(c)(2) are also terminated so that all participants under the
Plan and all similar arrangements are required to receive all amounts deferred under the
terminated arrangements within twelve months of the date the Plan Sponsor irrevocably takes
all necessary action to terminate the arrangements. In addition, the Plan Sponsor reserves the
right to terminate the Plan within twelve months of a corporate dissolution taxed under Code
Section 331 or with the approval of a bankruptcy court pursuant to 11 U. S. C. Section
503(b)(1)(A) provided that amounts deferred under the Plan are included in the gross incomes
of Participants in the latest of (a) the calendar year in which the termination occurs, (b)
the first calendar year in which the amount is no longer subject to a substantial risk of
forfeiture, or (c) the first calendar year in which payment is administratively practicable.
	 
	10.3	 	Other Plan Terminations. The Plan Sponsor retains the discretion to terminate the Plan if
(a) all arrangements sponsored by the Plan Sponsor that would be aggregated with any
terminated arrangement under Code Section 409A and Reg. Sec. 1.409A-1(c)(2) are terminated,
(b) no payments other than payments that would be payable under the terms of the arrangements
if the termination had not occurred are made within twelve months of the termination of the
arrangements, (c) all payments are made within twenty-four months of the termination of the
arrangements, (d) the Plan Sponsor does not adopt a new arrangement that would be aggregated
with any terminated arrangement under Code Section 409A and the regulations thereunder at any
time within the three year period following the date of termination of the arrangement, and
(e) the termination does not occur proximate to a downturn in the financial health of the Plan
sponsor.
	 
	 	 	The Plan Sponsor also reserves the right to amend the Plan to provide that termination of
the Plan will occur under such conditions and events as may be prescribed by the Secretary
of the Treasury in generally applicable guidance published in the Internal Revenue Bulletin.

 

10-1

 

ARTICLE 11 — THE TRUST

	11.1	 	Establishment of Trust. The Plan Sponsor may but is not required to establish a trust to
hold amounts which the Plan Sponsor may contribute from time to time to correspond to some or
all amounts credited to Participants under Section 6.2. If the Plan Sponsor elects to
establish a trust in accordance with Section 10.01 of the Adoption Agreement, the provisions
of Sections 11.2 and 11.3 shall become operative.
	 
	11.2	 	Grantor Trust. Any trust established by the Plan Sponsor shall be between the Plan Sponsor
and a trustee pursuant to a separate written agreement under which assets are held,
administered and managed, subject to the claims of the Plan Sponsor’s creditors in the event
of the Plan Sponsor’s insolvency. The trust is intended to be treated as a grantor trust
under the Code, and the establishment of the trust shall not cause the Participant to realize
current income on amounts contributed thereto. The Plan Sponsor must notify the trustee in
the event of a bankruptcy or insolvency.
	 
	11.3	 	Investment of Trust Funds. Any amounts contributed to the trust by the Plan Sponsor shall be
invested by the trustee in accordance with the provisions of the trust and the instructions of
the Administrator. Trust investments need not reflect the hypothetical investments selected
by Participants under Section 7.1 for the purpose of adjusting Accounts and the earnings or
investment results of the trust need not affect the hypothetical investment adjustments to
Participant Accounts under the Plan.

 

11-1

 

ARTICLE 12 — PLAN ADMINISTRATION

	12.1	 	Powers and Responsibilities of the Administrator. The Administrator has the full power and
the full responsibility to administer the Plan in all of its details, subject, however, to the
applicable requirements of ERISA. The Administrator’s powers and responsibilities include,
but are not limited to, the following:

	 	(a)	 	To make and enforce such rules and procedures as it deems necessary or proper
for the efficient administration of the Plan;
	 
	 	(b)	 	To interpret the Plan, its interpretation thereof to be final, except as
provided in Section 12.2, on all persons claiming benefits under the Plan;
	 
	 	(c)	 	To decide all questions concerning the Plan and the eligibility of any person
to participate in the Plan;
	 
	 	(d)	 	To administer the claims and review procedures specified in Section 12.2;
	 
	 	(e)	 	To compute the amount of benefits which will be payable to any Participant,
former Participant or Beneficiary in accordance with the provisions of the Plan;
	 
	 	(f)	 	To determine the person or persons to whom such benefits will be paid;
	 
	 	(g)	 	To authorize the payment of benefits;
	 
	 	(h)	 	To comply with the reporting and disclosure requirements of Part 1 of Subtitle
B of Title I of ERISA;
	 
	 	(i)	 	To appoint such agents, counsel, accountants, and consultants as may be
required to assist in administering the Plan;
	 
	 	(j)	 	By written instrument, to allocate and delegate its responsibilities, including
the formation of an Administrative Committee to administer the Plan.

 

12-1

 

	12.2	 	Claims and Review Procedures.

	 	(a)	 	Claims Procedure. If any person believes he is being denied any rights or
benefits under the Plan, such person may file a claim in writing with the
Administrator. If any such claim is wholly or partially denied, the Administrator will
notify such person of its decision in writing. Such notification will contain (i)
specific reasons for the denial, (ii) specific reference to pertinent Plan provisions,
(iii) a description of any additional material or information necessary for such person
to perfect such claim and an explanation of why such material or information is
necessary, and (iv) a description of the Plan’s review procedures and the time limits
applicable to such procedures, including a statement of the person’s right to bring a
civil action following an adverse decision on review. Such notification will be given
within 90 days after the claim is received by the Administrator. The Administrator may
extend the period for providing the notification by 90 days if special circumstances
require an extension of time for processing the claim and if written notice of such
extension and circumstance is given to such person within the initial 90 day period.
If such notification is not given within such period, the claim will be considered
denied as of the last day of such period and such person may request a review of his
claim.
	 
	 	(b)	 	Review Procedure. Within 60 days after the date on which a person receives a
written notification of denial of claim (or, if written notification is not provided,
within 60 days of the date denial is considered to have occurred), such person (or his
duly authorized representative) may (i) file a written request with the Administrator
for a review of his denied claim and of pertinent documents and (ii) submit written
issues and comments to the Administrator. The Administrator will notify such person of
its decision in writing. Such notification will be written in a manner calculated to
be understood by such person and will contain specific reasons for the decision as well
as specific references to pertinent Plan provisions. The notification will explain
that the person is entitled to receive, upon request and free of charge, reasonable
access to and copies of all pertinent documents and has the right to bring a civil
action following an adverse decision on review.
	 
	 	 	 	The decision on review will be made within 60 days. The Administrator may extend
the period for making the decision on review by 60 days if special circumstances
require an extension of time for processing the request such as an election by the
Administrator to hold a hearing, and if written notice of such extension and
circumstances is given to such person within the initial 60-day period. If the
decision on review is not made within such period, the claim will be considered
denied.

 

12-2

 

	 	(c)	 	Special Procedure for Claims Due to Disability. To the extent an application for
distribution as a result of a Disability requires the Administrator or the panel
reviewing the Administrator’s determination, as applicable, to make a determination
of Disability under the terms of the Plan, then such determination shall be subject
to all of the general rules described in this Section, except as they are expressly
modified by this Section 12(c).

	 	(i)	 	The initial decision on the claim for a Disability distribution
will be made within forty-five (45) days after the Plan receives the claimant’s
claim, unless special circumstances require additional time, in which case the
Administrator will notify the claimant before the end of the initial forty-five
(45)-day period of an extension of up to thirty (30) days. If necessary, the
Administrator may notify the claimant, prior to the end of the initial thirty
(30)-day extension period, of a second extension of up to thirty (30) days. If
an extension is due to the claimant’s failure to supply the necessary
information, then the notice of extension will describe the additional
information and the claimant will have forty-five (45) days to provide the
additional information. Moreover, the period for making the determination will
be delayed from the date the notification of extension was sent out until the
claimant responds to the request for additional information. No additional
extensions may be made, except with the claimant’s voluntary consent. The
contents of the notice shall be the same as described in Section 12.2(a) above.
If a disability distribution claim is denied in whole or in part, then the
claimant will receive notification, as described in Section 12.2(c).
	 
	 	(ii)	 	If an internal rule, guideline, protocol or similar criterion
is relied upon in making the adverse determination, then the denial notice to
the claimant will either set forth the internal rule, guideline, protocol or
similar criterion, or will state that such was relied upon and will be provided
free of charge to the claimant upon request (to the extent not
legally-privileged) and if the claimant’s claim was denied based on a medical
necessity or experimental treatment or similar exclusion or limit, then the
claimant will be provided a statement either explaining the decision or
indicating that an explanation will be provided to the claimant free of charge
upon request.

 

12-3

 

	 	(iii)	 	Any claimant whose application for a Disability distribution is denied in
whole or in part, may appeal the denial by submitting to the panel reviewing
the administrator’s determination (the “Review Panel”) a request for a review
of the application within one hundred and eighty (180) days after receiving
notice of the denial. The request for review shall be in the form and manner
prescribed by the Review Panel. In the event of such an appeal for review,
the provisions of Section 12.2(b) regarding the claimant’s rights and
responsibilities shall apply. Upon request, the Review Panel will identify
any medical or vocational expert whose advice was obtained on behalf of the
Review Panel in connection with the denial, without regard to whether the
advice was relied upon in making the determination. The entity or individual
appointed by the Review Panel to review the claim will consider the appeal
de novo, without any deference to the initial denial. The review will
not include any person who participated in the initial denial or who is the
subordinate of a person who participated in the initial denial.
	 
	 	(iv)	 	If the initial Disability distribution denial was based in
whole or in part on a medical judgment, then the Review Panel will consult with
a health care professional who has appropriate training and experience in the
field of medicine involved in the medical judgment, and who was neither
consulted in connection with the initial determination nor is the subordinate
of any person who was consulted in connection with that determination; and upon
notifying the claimant of an adverse determination on review, include in the
notice either an explanation of the clinical basis for the determination,
applying the terms of the Plan to the claimant’s medical circumstances, or a
statement that such explanation will be provided free of charge upon request.

 

12-4

 

	 	(v)	 	A decision on review shall be made promptly, but not later than forty-five
(45) days after receipt of a request for review, unless special circumstances
require an extension of time for processing. If an extension is required, the
claimant will be notified before the end of the initial forty-five (45)-day
period that an extension of time is required and the anticipated date that the
review will be completed. A decision will be given as soon as possible, but
not later than ninety (90) days after receipt of a request for review. The
Review Panel shall give notice of its decision to the claimant; such notice
shall comply with the requirements set forth in Section 12.2(a). In addition,
if the claimant’s claim was denied based on a medical necessity or
experimental treatment or similar exclusion, then the claimant will be
provided a statement explaining the decision, or a statement providing that
such explanation will be furnished to the claimant free of charge upon
request. The notice shall also contain the following statement: “You and
your Plan may have other voluntary alternative dispute resolution options,
such as mediation. One way to find out what may be available is to contact
your local U.S. Department of Labor Office and your State insurance regulatory
agency.”

	 	(d)	 	Exhaustion of Claims Procedure and Right to Bring Legal Claim.
No action in law or equity shall be brought more than one (1) year after the Review
Panel’s affirmation of a denial of the claim, or, if earlier, more than four (4)
years after the facts or events giving rise to the claimant’s allegation(s) or
claim(s) first occurred.

	12.3	 	Plan Administrative Costs. All reasonable costs and expenses (including legal, accounting,
and employee communication fees) incurred by the Administrator in administering the Plan shall
be paid by the Plan to the extent not paid by the Employer.

 

12-5

 

ARTICLE 13 — MISCELLANEOUS

	13.1	 	Unsecured General Creditor of the Employer. Participants and their Beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interests or claims in any
property or assets of the Employer. For purposes of the payment of benefits under the Plan,
any and all of the Employer’s assets shall be, and shall remain, the general, unpledged,
unrestricted assets of the Employer. Each Employer’s obligation under the Plan shall be
merely that of an unfunded and unsecured promise to pay money in the future.
	 
	13.2	 	Employer’s Liability. Each Employer’s liability for the payment of benefits under the Plan
shall be defined only by the Plan and by the deferral agreements entered into between a
Participant and the Employer. An Employer shall have no obligation or liability to a
Participant under the Plan except as provided by the Plan and a deferral agreement or
agreements. An Employer shall have no liability to Participants employed by other Employers.
	 
	13.3	 	Limitation of Rights. Neither the establishment of the Plan, nor any amendment thereof, nor
the creation of any fund or account, nor the payment of any benefits, will be construed as
giving to the Participant or any other person any legal or equitable right against the
Employer, the Plan or the Administrator, except as provided herein; and in no event will the
terms of employment or service of the Participant be modified or in any way affected hereby.
	 
	13.4	 	Anti-Assignment. Except as may be necessary to fulfill a domestic relations order within the
meaning of Code Section 414(p), none of the benefits or rights of a Participant or any
Beneficiary of a Participant shall be subject to the claim of any creditor. In particular, to
the fullest extent permitted by law, all such benefits and rights shall be free from
attachment, garnishment, or any other legal or equitable process available to any creditor of
the Participant and his or her Beneficiary. Neither the Participant nor his or her
Beneficiary shall have the right to alienate, anticipate, commute, pledge, encumber, or assign
any of the payments which he or she may expect to receive, contingently or otherwise, under
the Plan, except the right to designate a Beneficiary to receive death benefits provided
hereunder. Notwithstanding the preceding, the benefit payable from a Participant’s Account
may be reduced, at the discretion of the administrator, to satisfy any debt or liability to
the Employer.

 

13-1

 

	13.5	 	Facility of Payment. If the Administrator determines, on the basis of medical reports or
other evidence satisfactory to the Administrator, that the recipient of any benefit payments
under the Plan is incapable of handling his affairs by reason of minority, illness,
infirmity or other incapacity, the Administrator may direct the Employer to disburse such
payments to a person or institution designated by a court which has jurisdiction over such
recipient or a person or institution otherwise having the legal authority under State law
for the care and control of such recipient. The receipt by such person or institution of any
such payments therefore, and any such payment to the extent thereof, shall discharge the
liability of the Employer, the Plan and the Administrator for the payment of benefits
hereunder to such recipient.
	 
	13.6	 	Notices. Any notice or other communication to the Employer or Administrator in connection
with the Plan shall be deemed delivered in writing if addressed to the Plan Sponsor at the
address specified in Section 1.03 of the Adoption Agreement and if either actually delivered
at said address or, in the case or a letter, 5 business days shall have elapsed after the same
shall have been deposited in the United States mails, first-class postage prepaid and
registered or certified.
	 
	13.7	 	Tax Withholding. If the Employer concludes that tax is owing with respect to any deferral or
payment hereunder, the Employer shall withhold such amounts from any payments due the
Participant, as permitted by law, or otherwise make appropriate arrangements with the
Participant or his Beneficiary for satisfaction of such obligation. Tax, for purposes of this
Section 13.7 means any federal, state, local or any other governmental income tax, employment
or payroll tax, excise tax, or any other tax or assessment owing with respect to amounts
deferred, any earnings thereon, and any payments made to Participants under the Plan.
	 
	13.8	 	Indemnification.

	 	(a)	 	Each Indemnitee (as defined in Section 13.8(e)) shall be indemnified and held
harmless by the Employer for all actions taken by him and for all failures to take
action (regardless of the date of any such action or failure to take action), to the
fullest extent permitted by the law of the jurisdiction in which the Employer is
incorporated, against all expense, liability, and loss (including, without limitation,
attorneys’ fees, judgments, fines, taxes, penalties, and amounts paid or to be paid in
settlement) reasonably incurred or suffered by the Indemnitee in connection with any
Proceeding (as defined in Subsection (e)). No indemnification pursuant to this Section
shall be made, however, in any case where (1) the act or failure to act giving rise to
the claim for indemnification is determined by a court to have constituted willful
misconduct or recklessness or (2) there is a settlement to which the Employer does not
consent.

 

13-2

 

	 	(b)	 	The right to indemnification provided in this Section shall include the right
to have the expenses incurred by the Indemnitee in defending any Proceeding paid by the
Employer in advance of the final disposition of the Proceeding, to the fullest extent
permitted by the law of the jurisdiction in which the Employer is incorporated;
provided that, if such law requires, the payment of such expenses incurred by the
Indemnitee in advance of the final disposition of a Proceeding shall be made only on
delivery to the Employer of an undertaking, by or on behalf of the Indemnitee, to repay
all amounts so advanced without interest if it shall ultimately be determined that the
Indemnitee is not entitled to be indemnified under this Section or otherwise.
	 
	 	(c)	 	Indemnification pursuant to this Section shall continue as to an Indemnitee who
has ceased to be such and shall inure to the benefit of his heirs, executors, and
administrators. The Employer agrees that the undertakings made in this Section shall
be binding on its successors or assigns and shall survive the termination, amendment or
restatement of the Plan.
	 
	 	(d)	 	The foregoing right to indemnification shall be in addition to such other
rights as the Indemnitee may enjoy as a matter of law or by reason of insurance
coverage of any kind and is in addition to and not in lieu of any rights to
indemnification to which the Indemnitee may be entitled pursuant to the by-laws of the
Employer.
	 
	 	(e)	 	For the purposes of this Section, the following definitions shall apply:

	 	(1)	 	“Indemnitee” shall mean each person serving as an Administrator
(or any other person who is an employee, director, or officer of the Employer)
who was or is a party to, or is threatened to be made a party to, or is
otherwise involved in, any Proceeding, by reason of the fact that he is or was
performing administrative functions under the Plan.
	 
	 	(2)	 	“Proceeding” shall mean any threatened, pending, or completed
action, suit, or proceeding (including, without limitation, an action, suit, or
proceeding by or in the right of the Employer), whether civil, criminal,
administrative, investigative, or through arbitration.

	13.9	 	Successors. The provisions of the Plan shall bind and inure to the benefit of the Plan
Sponsor, the Employer and their successors and assigns and the Participant and the
Participant’s designated Beneficiaries.

 

13-3

 

	13.10	 	Disclaimer. It is the Plan Sponsor’s intention that the Plan comply with the
requirements of Code Section 409A. Neither the Plan Sponsor nor the Employer shall have any
liability to any Participant should any provision of the Plan fail to satisfy the
requirements of Code Section 409A.
	 
	13.12	 	Governing Law. The Plan will be construed, administered and enforced according to the laws
of the State specified by the Plan Sponsor in Section 12.01 of the Adoption Agreement.

 

13-4

 

ADOPTION AGREEMENT

	1.01	 	PREAMBLE

By the execution of this Adoption Agreement the Plan Sponsor
hereby [complete (a) or (b)]

	 	(a)	 	þ	 	adopts a new plan as of January 1, 2010 [month, day, year]
	 
	 	(b)	 	o	 	 amends and restates its existing plan as of                      [month,
day, year] which is the Amendment Restatement Date. Except as otherwise provided in
Appendix A, all amounts deferred under the Plan prior to the Amendment Restatement
Date shall be governed by the terms of the Plan as in effect on the day before the
Amendment Restatement Date.
	 
	 	 	 		 	Original Effective Date:                      [month, day, year]
	 
	 	 	 		 	Pre-409A Grandfathering: o Yes o No

	1.02	 	PLAN
	 
	 	 	Plan Name: Hillenbrand, Inc. Supplemental Retirement Plan
	 
	 	 	Plan Year: 1/1/ – 12/31
	 
	1.03	 	PLAN SPONSOR

	 	 	 
	Name:

	 	Hillenbrand, Inc.
	Address:

	 	One Batesville Boulevard, Batesville, IN 47006
	Phone #:

	 	(812) 934-7500
	EIN:

	 	26-1342272
	Fiscal Yr:

	 	10/1 – 9/30

Is stock of the Plan Sponsor, any Employer or any Related Employer publicly traded on an
established securities market?

þ Yes o No

January 2010

 

- 1 -

 

	1.04	 	EMPLOYER

The following entities have been authorized by the Plan Sponsor to participate in and have
adopted the Plan (insert “Not Applicable” if none have been authorized):

	 	 	 	 	 
	Entity	 	Publicly Traded on Est. Securities Market
	Hillenbrand, Inc.	 	Yes	 	No
	And any affiliates and subsidiaries
	 	þ	 	o
	                            
                                    
	 	o	 	o
	                            
                                    
	 	o	 	o
	                            
                                    
	 	o	 	o
	                            
                                    
	 	o	 	o
	                            
                                    
	 	o	 	o

	1.05	 	ADMINISTRATOR

The Plan Sponsor has designated the following party or parties to be responsible for the
administration of the Plan:

	 	 	 
	Name:

	 	Compensation and Management Development Committee of the Board of
Directors of the Plan Sponsor
	 
	 	 
	Address:

	 	See Section 1.03

			
	Note:	 	The Administrator is the person or persons designated by the Plan Sponsor to
be responsible for the administration of the Plan. Neither Fidelity Employer Services
Company nor any other Fidelity affiliate can be the Administrator.

	1.06	 	KEY EMPLOYEE DETERMINATION DATES

The Employer has designated                      as the Identification Date for
purposes of determining Key Employees.

In the absence of a designation, the Identification Date is December 31.

The Employer has designated January 1 as the effective date for purposes of applying the six
month delay in distributions to Key Employees.

In the absence of a designation, the effective date is the first day of the fourth month
following the Identification Date.

January 2010

 

- 2 -

 

	2.01	 	PARTICIPATION

	 	(a)	 	þ	 	 Employees [complete (i), (ii) or (iii)]

	 	(i)	 	þ	 	 Eligible Employees are selected by the Employer.
	 
	 	(ii)	 	o	 	 Eligible Employees are those employees of the Employer who satisfy the
following criteria:
	 	 	 	 	 	 

	 	 	 	 	 	 

	 	 	 	 	 	 

	 	 	 	 	 	 

	 	 	 	 	 	 

	 	(iii)	 	o	 	 Employees are not eligible to participate.

	 	(b)	 	þ	 	 Directors [complete (i), (ii) or (iii)]

	 	(i)	 	o	 	 All Directors are eligible to participate.
	 
	 	(ii)	 	þ	 	 Only Directors selected by the Employer are eligible to participate.
	 
	 	(iii)	 	o	 	 Directors are not eligible to participate.

January 2010

 

- 3 -

 

	3.01	 	COMPENSATION

For purposes of determining Participant contributions under Article 4 and Employer
contributions under Article 5, Compensation shall be defined in the following manner
[complete (a) or (b) and select (c) and/or (d), if applicable]:

	 	(a)	 	þ	 	 Compensation is defined as:
	 
	 	 	 	 	 	‘Compensation’ as determined under the Hillenbrand,
Inc. Savings Plan but without regard to the Code Section 401(a)(17) limitation in effect for the Plan Year.
	 
	 	(b)	 	o	 	 Compensation as defined in
 _____ 

[insert name of qualified plan]
without regard to the limitation in Section 401(a)(17) of the Code for
such Plan Year.
	 
	 	(c)	 	þ	 	 Director Compensation is defined, for any Plan Year, as:
	 
	 	 	 	 	 	The total amount of meeting fees and retainers for Director
services paid to the Director by the Employer plus SIP Grants.
	 
	 	(d)	 	o	 	 Compensation shall, for all Plan purposes, be limited to $_____.
	 
	 	(e)	 	o	 	 Not Applicable.

	3.02	 	BONUSES

Compensation, as defined in Section 3.01 of the Adoption Agreement, includes the following
type of bonuses:

	 	 	 	 	 
	 	 	Will be treated as Performance
	Type	 	Based Compensation
	 	 	Yes	 	No
	Short Term Incentive Compensation
	 	þ	 	o
	(STIC)
	 	o	 	o
	Stock Grants under Hillenbrand, Inc.
	 	o	 	þ
	Stock Incentive Plan (SIP Grants)
	 	o	 	o
	 
	 	o	 	o

 

	 	 	o	 	Not Applicable.

January 2010

 

- 4 -

 

	4.01	 	PARTICIPANT CONTRIBUTIONS

If Participant contributions are permitted, complete (a), (b), and (c). Otherwise
complete (d).

	 	(a)	 	Amount of Deferrals
	 
	 	 	 	A Participant may elect within the period specified in Section 4.01(b) of the
Adoption Agreement to defer the following amounts of remuneration. For each type of
remuneration listed, complete “dollar amount” and / or “percentage amount”.

	 	(i)	 	Compensation Other than Bonuses [do not complete if you
complete (iii)]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Dollar Amount	 	 	% Amount	 	 	 	 
	Type of Remuneration	 	Min	 	 	Max	 	 	Min	 	 	Max	 	 	Increment	 
	(a)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(b)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(c)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

			
	Note:	 	The increment is required to determine the permissible deferral amounts. For
example, a minimum of 0% and maximum of 20% with a 5% increment would allow an
individual to defer 0%, 5%, 10%, 15% or 20%.

	 	(ii)	 	Bonuses [do not complete if you complete (iii)]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Dollar Amount	 	 	% Amount	 	 	 	 
	Type of Bonus	 	Min	 	 	Max	 	 	Min	 	 	Max	 	 	Increment	 
	(a) STIC
	 	 	 	 	 	 	 	 	 	 	1	 	 	 	100	 	 	 	1	%
	(b)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(c)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	(iii)	 	Compensation [do not complete if you completed (i) and (ii)]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dollar Amount	 	 	% Amount	 	 	 	 
	Min	 	Max	 	 	Min	 	 	Max	 	 	Increment	 

	 	(iv)	 	Director Compensation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Dollar Amount	 	 	% Amount	 	 	 	 
	Type of Compensation	 	Min	 	 	Max	 	 	Min	 	 	Max	 	 	Increment	 
	Annual Retainer
	 	 	 	 	 	 	 	 	 	 	1	 	 	 	100	 	 	 	1	%
	Meeting Fees
	 	 	 	 	 	 	 	 	 	 	1	 	 	 	100	 	 	 	1	%
	Other: SIP Grants
	 	 	 	 	 	 	 	 	 	 	1	 	 	 	100	 	 	 	1	%
	Other:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

January 2010

 

- 5 -

 

	 	(b)	 	Election Period

	 	(i)	 	Performance Based Compensation
	 
	 	 	 	A special election period
	 
	 	 	 	þ Does o Does Not

apply to each eligible type of performance based compensation referenced in
Section 3.02 of the Adoption Agreement.

The special election period, if applicable, will be determined by the Employer.

	 	(ii)	 	Newly Eligible Participants
	 
	 	 	 	An employee who is classified or designated as an Eligible Employee during a
Plan Year
	 
	 	 	 	þ May o May Not

elect to defer Compensation earned during the remainder of the Plan Year by
completing a deferral agreement within the 30 day period beginning on the date
he is eligible to participate in the Plan.

	 	(c)	 	Revocation of Deferral Agreement
	 
	 	 	 	A Participant’s deferral agreement
	 
	 	 	 	þ Will
	 
	 	 	 	o Will Not
	 
	 	 	 	be cancelled for the remainder of any Plan Year during which he receives a hardship
distribution of elective deferrals from a qualified cash or deferred arrangement
maintained by the Employer. If cancellation occurs, the Participant may resume
participation in accordance with Article 4 of the Plan.
	 
	 	(d)	 	No Participant Contributions
	 
	 	 	 	o Participant contributions are not permitted under the Plan.

January 2010

 

- 6 -

 

	5.01	 	EMPLOYER CONTRIBUTIONS

If Employer contributions are permitted, complete (a) and/or (b). Otherwise
complete (c).

	 	(a)	 	Matching Contributions

	 	(i)	 	Amount
	 
	 	 	 	For each Plan Year, the Employer shall make a Matching Contribution on behalf of
each Participant who satisfies the requirements of Section 5.01(a)(ii) of the
Adoption Agreement equal to [complete the ones that are applicable]:

	 	(A)	 	o	 	____ [insert percentage] of the Compensation
the Participant has elected to defer for the Plan Year
	 
	 	(B)	 	o	 	 An amount determined by the Employer in its sole
discretion
	 
	 	(C)	 	o	 	 Matching Contributions for each Participant shall be
limited to $_____ 

and/or
 _____% of Compensation.
	 
	 	(D)	 	þ	 	 Other:
	 
	 	 	 		 	See attachment to Section 5.01(a)(i)(D)
	 
	 	(E)	 	o	 	 Not Applicable [Proceed to Section 5.01(b)]

	 	(ii)	 	Eligibility for Matching Contribution
	 
	 	 	 	A Participant shall receive an allocation of Matching Contributions determined
in accordance with Section 5.01(a)(i) provided he satisfies the following
requirements [complete the ones that are applicable]:

	 	(A)	 	þ	 	 Describe requirements:
	 
	 	 	 		 	See attachment to Section 5.01(a)(ii)(A)
	 
	 	(B)	 	o	 	 Is selected by the Employer in its sole discretion to receive an
allocation of Matching Contributions
	 
	 	(C)	 	o	 	 No requirements

January 2010

 

- 7 -

 

	 	(iii)	 	Time of Allocation
	 
	 	 	 	Matching Contributions, if made, shall be treated as allocated [select one]:

	 	(A)	 	o	 	 As of the last day of the Plan Year
	 
	 	(B)	 	þ	 	 At such times as the Employer shall determine in it sole discretion
	 
	 	(C)	 	o	 	 At the time the Compensation on account of which the Matching
Contribution is being made would otherwise have been paid to the
Participant
	 
	 	(D)	 	o	 	 Other:
	 	 	 	 	 	 

	 	 	 	 	 	 

	 	(b)	 	Other Contributions

	 	(i)	 	Amount
	 
	 	 	 	The Employer shall make a contribution on behalf of each Participant who
satisfies the requirements of Section 5.01(b)(ii) equal to [complete the ones
that are applicable]:

	 	(A)	 	o	 	 An amount equal to
 _____ 

[insert number] % of the Participant’s
Compensation
	 
	 	(B)	 	o	 	 An amount determined by the Employer in its sole discretion
	 
	 	(C)	 	o	 	 Contributions for each Participant shall be limited to $                    
	 
	 	(D)	 	þ	 	 Other:
	 
	 	 	 		 	See attachment to Section 5.01(b)(i)(D)
	 
	 	(E)	 	o	 	 Not Applicable [Proceed to Section 6.01]

January 2010

 

- 8 -

 

	 	(ii)	 	Eligibility for Other Contributions
	 
	 	 	 	A Participant shall receive an allocation of other Employer contributions
determined in accordance with Section 5.01(b)(i) for the Plan Year if he
satisfies the following requirements [complete the one that is applicable]:

	 	(A)	 	þ	 	 Describe requirements:
	 
	 	 	 		 	See Attachment to Section 5.01(b)(ii)(A)
	 
	 	(B)	 	o	 	Is selected by the Employer in its sole discretion to receive an
allocation of other Employer contributions
	 
	 	(C)	 	o	 	No requirements

	 	(iii)	 	Time of Allocation
	 
	 	 	 	Employer contributions, if made, shall be treated as allocated [select one]:

	 	(A)	 	o	 	 As of the last day of the Plan Year
	 
	 	(B)	 	þ	 	 At such time or times as the Employer shall determine in its sole
discretion
	 
	 	(C)	 	o	 	 Other:
	 
	 	 	 	 	 	 

	 	 	 	 	 	 

	 	 	 	 	 	 

	 	(c)	 	No Employer Contributions

	 	o	 	 Employer contributions are not permitted under the Plan.

January 2010

 

- 9 -

 

	6.01	 	DISTRIBUTIONS

The timing and form of payment of distributions made from the Participant’s vested Account
shall be made in accordance with the elections made in this Section 6.01 of the Adoption
Agreement except when Section 9.6 of the Plan requires a six month delay for certain
distributions to Key Employees of publicly traded companies.

	 	(a)	 	Timing of Distributions

	 	(i)	 	All distributions shall commence in accordance with the following [choose one]:

	 	(A)	 	o	 	 As soon as administratively feasible following the distribution
event
	 
	 	(B)	 	þ	 	 Monthly on specified day 10th [insert day]
	 
	 	(C)	 	o	 	 Annually on specified month and day
 _____ 

[insert month and day]
	 
	 	(D)	 	o	 	 Calendar quarter on specified month and day [_____ 

month of
quarter (insert 1,2 or 3);
 _____ 

day (insert day)]

	 	(ii)	 	The timing of distributions as determined in Section 6.01(a)(i) shall
be modified by the adoption of:

	 	(A)	 	o	 	 Event Delay — Distribution events other than those
based on Specified Date or Specified Age will be
treated as not having occurred for
 _____ 

months
[insert number of months].
	 
	 	(B)	 	o	 	 Hold Until Next Year — Distribution events other than
those based on Specified Date or Specified Age will
be treated as not having occurred for twelve months
from the date of the event if payment pursuant to
Section 6.01(a)(i) will thereby occur in the next
calendar year or on the first payment date in the
next calendar year in all other cases.
	 
	 	(C)	 	o	 	 Immediate Processing — The timing method selected by
the Plan Sponsor under Section 6.01(a)(i) shall be
overridden for the following distribution events
[insert events]:
	 	 	 	 	 	 

	 	 	 	 	 	 

	 
	 	(D)	 	þ	 	 Not applicable.

January 2010

 

- 10 -

 

	 	(b)	 	Distribution Events

Participants may elect the following payment events and the associated form or forms of
payment for amounts attributable to Participant contributions. If multiple events are
selected, the earliest to occur will trigger payment. For installments, insert the range
of available periods (e.g., 5-15) or insert the periods available (e.g., 5,7,9).

Amounts attributable to Employer contributions will be paid as a lump sum on the date
that is six months after Separation from Service.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Lump Sum	 	Installments
	(i)
	 	þ
	 	Specified Date
	 	X
	 	2 – 10 years
	 	 	 	 	 	 	 	 	 
	(ii)
	 	o
	 	Specified Age
	 	                    
	 	                    years
	 	 	 	 	 	 	 	 	 
	(iii)
	 	þ
	 	Separation from Service
	 	X
	 	2 – 10 years
	 	 	 	 	 	 	 	 	 
	(iv)
	 	o
	 	Separation from Service plus 6 months
	 	                    
	 	                     years
	 	 	 	 	 	 	 	 	 
	(v)
	 	o
	 	Separation from Service plus
 _____ 

months
[not to exceed
 _____ 

months]
	 	                    
	 	                     years
	 	 	 	 	 	 	 	 	 
	(vi)
	 	o
	 	Retirement
	 	                    
	 	                     years
	 	 	 	 	 	 	 	 	 
	(vii)
	 	o
	 	Retirement plus 6 months
	 	                    
	 	                     years
	 	 	 	 	 	 	 	 	 
	(viii)
	 	o
	 	Retirement plus
 _____ 

months [not to
exceed
 _____ 

months]
	 	                    
	 	                     years
	 	 	 	 	 	 	 	 	 
	(ix)
	 	o
	 	Later of Separation from Service or
Specified Age
	 	                    
	 	                     years
	 	 	 	 	 	 	 	 	 
	(x)
	 	þ
	 	Later of Separation from Service or
Specified Date
	 	X
	 	2 – 10 years
	 	 	 	 	 	 	 	 	 
	(xi)
	 	o
	 	Disability
	 	                    
	 	                     years
	 	 	 	 	 	 	 	 	 
	(xii)
	 	o
	 	Death
	 	                    
	 	                     years
	 	 	 	 	 	 	 	 	 
	(xiii)
	 	o
	 	Change in Control
	 	                    
	 	                     years

The
minimum deferral period for Specified Date or Specified Age event shall be N/A years.

Installments may be paid [select each that applies]

	 	 	 	 	 
	 

	 	o
	 	Monthly
	 
	 

	 	o
	 	Quarterly
	 
	 

	 	þ
	 	Annually

January 2010

 

- 11 -

 

	 	(c)	 	Specified Date and Specified Age elections may not extend beyond age 65
[insert age or “Not Applicable” if no maximum age applies].

	 	(d)	 	Payment Election Override
	 
	 	 	 	Payment of the remaining vested balance of the Participant’s Account will automatically
occur at the time specified in Section 6.01(a) of the Adoption Agreement in the form
indicated upon the earliest to occur of the following events [check each event that
applies and for each event include only a single form of payment]:

	 	 	 	 	 	 	 
	 	 	EVENTS	 	FORM OF PAYMENT
	o
	 	Separation from Service
	 	                     Lump sum
	 	                    Installments
	o
	 	Separation from
Service before Retirement
	 	                     Lump sum
	 	                    Installments
	þ
	 	Death
	 	þ Lump sum
	 	                    Installments
	þ
	 	Disability
	 	þ Lump sum
	 	                    Installments
	o
	 	Not Applicable	 	 	 	 

	 	(e)	 	Involuntary Cashouts

	 	 	 	 	 
	 

	 	o
	 	If the Participant’s vested Account at the time of his Separation from Service
does not exceed $______ distribution of the vested Account shall automatically be
made in the form of a single lump sum in accordance with Section 9.5 of the
Plan.
	 
	 	 	 	 
	 

	 	þ
	 	There are no involuntary cashouts.

	 	(f)	 	Retirement

	 	 	 	 	 
	 

	 	o
	 	Retirement shall be defined as a Separation from Service that occurs on or
after the Participant [insert description of requirements]:
	 
	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 

	 

	 	þ
	 	No special definition of Retirement applies.

January 2010

 

- 12 -

 

	 	(g)	 	Distribution Election Change
	 
	 	 	 	A Participant

	 	 	 	 	 
	 

	 	þ
	 	Shall
	 
	 

	 	o
	 	Shall Not

be permitted to modify a scheduled distribution date and/or payment option in
accordance with Section 9.2 of the Plan.

A Participant shall generally be permitted to elect such modification an unlimited
number of times.

Administratively, allowable distribution events will be modified to reflect all
options necessary to fulfill the distribution change election provision.

	 	(h)	 	Frequency of Elections
	 
	 	 	 	The Plan Sponsor

	 	 	 	 	 
	 

	 	þ
	 	Has
	 
	 

	 	o
	 	Has Not

Elected to permit annual elections of a time and form of payment for Participant
Contributions deferred under the Plan. Amounts attributable to Employer
Contributions shall be paid at the time and in the form provided in Section 6.01(b)
of the Adoption Agreement.

January 2010

 

- 13 -

 

	7.01	 	VESTING

	 	(a)	 	Matching Contributions

The Participant’s vested interest in the amount credited to his Account attributable to
Matching Contributions shall be based on the following schedule:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	þ
	 	Years of Service
	 	Vesting %
	 	 
	 

	 	 	 	 	0	 	 	 	0	 	 	(insert ‘100’ if there is immediate vesting)
	 

	 	 	 	 	1	 	 	 	0	 	 	 
	 

	 	 	 	 	2	 	 	 	0	 	 	 
	 

	 	 	 	 	3	 	 	 	100	 	 	 
	 

	 	 	 	 	4	 	 	                    
	 	 
	 

	 	 	 	 	5	 	 	                    
	 	 
	 

	 	 	 	 	6	 	 	                    
	 	 
	 

	 	 	 	 	7	 	 	                    
	 	 
	 

	 	 	 	 	8	 	 	                    
	 	 
	 

	 	 	 	 	9	 	 	                    
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	Other:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	Class year vesting applies.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	þ	 	Not applicable.	 	 

	 	(b)	 	Other Employer Contributions

The Participant’s vested interest in the amount credited to his Account attributable to
Employer contributions other than Matching Contributions shall be based on the following
schedule:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	þ	 	Years of Service
	 	Vesting %
	 	 
	 

	 	 	 	 	0	 	 	 	100	 	 	(insert ‘100’ if there is immediate vesting)
	 

	 	 	 	 	1	 	 	 	 	 	 	 
	 

	 	 	 	 	2	 	 	 	 	 	 	 
	 

	 	 	 	 	3	 	 	 	 	 	 	 
	 

	 	 	 	 	4	 	 	 	 	 	 	 
	 

	 	 	 	 	5	 	 	 	 	 	 	 
	 

	 	 	 	 	6	 	 	 	 	 	 	 
	 

	 	 	 	 	7	 	 	 	 	 	 	 
	 

	 	 	 	 	8	 	 	 	 	 	 	 
	 

	 	 	 	 	9	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	o
	 	Other:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	Class year vesting applies.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	o	 	Not applicable.	 	 

January 2010

 

- 14 -

 

	 	(c)	 	Acceleration of Vesting

A Participant’s vested interest in his Account will automatically be 100% upon the
occurrence of the following events: [select the ones that are applicable]:

	 	 	 	 	 	 	 
	 

	 	(i)
	 	þ
	 	Death
	 
	 	 	 	 	 	 
	 

	 	(ii)
	 	þ
	 	Disability
	 
	 	 	 	 	 	 
	 

	 	(iii)
	 	þ
	 	Change in Control
	 
	 	 	 	 	 	 
	 

	 	(iv)
	 	o
	 	Eligibility for Retirement
	 
	 	 	 	 	 	 
	 

	 	(v)
	 	o
	 	Other:                                         

 

	 	 	 	 	 	 	 
	 

	 	(vi)
	 	o	 	Not applicable.

	 	(d)	 	Years of Service

	 	(i)	 	A Participant’s Years of Service shall include all service performed
for the Employer and

	 	 	 	 	 
	 

	 	þ
	 	Shall
	 
	 

	 	o
	 	Shall Not

include service performed for the Related Employer.

	 	(ii)	 	Years of Service shall also include service performed for the following
entities:

 

 

 

 

 

 

	 	(iii)	 	Years of Service shall be determined in accordance with (select one)

	 	 	 	 	 	 	 
	 

	 	(A)
	 	þ
	 	The elapsed time method in Treas. Reg. Sec. 1.410(a)-7
	 
	 	 	 	 	 	 
	 

	 	(B)
	 	o
	 	The general method in DOL Reg. Sec. 2530.200b-1 through b-4
	 
	 	 	 	 	 	 
	 

	 	(C)
	 	o
	 	The Participant’s Years of Service credited under [insert name of plan]

 

	 	 	 	 	 	 	 
	 

	 	(D)
	 	o
	 	Other:          
                
               
               
               
           
           

 

 

	 	(iv)	o	Not applicable.

January 2010

 

- 15 -

 

	8.01	 	UNFORESEEABLE EMERGENCY

	 	(a)	 	A withdrawal due to an Unforeseeable Emergency as defined in Section 2.24:

	 	þ	 	Will
	 
	 	o	 	Will Not [if Unforeseeable Emergency withdrawals are not permitted, proceed to
Section 9.01]

be allowed.

	 	(b)	 	Upon a withdrawal due to an Unforeseeable Emergency, a Participant’s deferral
election for the remainder of the Plan Year:

	 	þ	 	 Will
	 
	 	o	 	Will Not

be cancelled. If cancellation occurs, the Participant may resume participation in
accordance with Article 4 of the Plan.

January 2010

 

- 16 -

 

	9.01	 	INVESTMENT DECISIONS

Investment decisions regarding the hypothetical amounts credited to a Participant’s Account
shall be made by [select one]:

	 	 	 	 	 	 	 
	 

	 	(a)
	 	þ
	 	The Participant or his Beneficiary
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	o
	 	The Employer

If (a) is selected and the Participant or Beneficiary fails to make an investment decision
with respect to some or all of the hypothetical amounts credited to the Participant’s
Account, such amounts shall be treated as invested in a default investment option selected
for this purpose by the Administrator.

January 2010

 

- 17 -

 

	10.01	 	GRANTOR TRUST

The Employer [select one]:

	 	þ	 	 Does
	 
	 	o	 	Does Not

intend to establish a grantor trust in connection with the Plan.

January 2010

 

- 18 -

 

	11.01	 	TERMINATION UPON CHANGE IN CONTROL

The Plan Sponsor

	 	þ	 	Reserves
	 
	 	o	 	Does Not Reserve

the right to terminate the Plan and distribute all vested amounts credited to Participant
Accounts upon a Change in Control as described in Section 9.7.

	11.02	 	AUTOMATIC DISTRIBUTION UPON CHANGE IN CONTROL

Distribution of the remaining vested balance of each Participant’s Account

	 	o	 	Shall
	 
	 	þ	 	Shall Not

automatically be paid as a lump sum payment upon the occurrence of a Change in Control as
provided in Section 9.7.

	11.03	 	CHANGE IN CONTROL

A Change in Control for Plan purposes includes the following [select each definition that
applies]:

	 	(a)	þ	A change in the ownership of the Employer as described in Section 9.7(c) of the
Plan.

	 	(b)	þ	A change in the effective control of the Employer as described in Section
9.7(d) of the Plan.

	 	(c)	þ	A change in the ownership of a substantial portion of the assets of the
Employer as described in Section 9.7(e) of the Plan.

	 	(d)	o	Not Applicable.

January 2010

 

- 19 -

 

	12.01	 	GOVERNING STATE LAW

The laws of Indiana shall apply in the administration of the Plan to the extent not
preempted by ERISA.

January 2010

 

- 20 -

 

EXECUTION
PAGE

The Plan Sponsor has caused this Adoption Agreement to be executed this
 _____ 

day
of
 _____, 2009.

	 	 	 	 	 	 	 	 	 
	 

	 	PLAN SPONSOR:
	 	Hillenbrand, Inc.
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

January 2010

 

- 21 -

 

APPENDIX A

SPECIAL EFFECTIVE DATES

The Hillenbrand, Inc. Executive Deferred Compensation Program, the Hillenbrand, Inc. Board of
Directors’ Deferred Compensation Plan and the portion of the Hillenbrand, Inc. Supplemental
Executive Retirement Plan attributable to defined contribution accounts were merged into the Plan
on the Plan’s Effective Date as defined in Section 1.01 of the Adoption Agreement. All amounts
deferred under the merged plans will be paid under the Plan in accordance with valid elections in
effect under the respective merged plans on July 1, 2010.

January 2010

 

- 22 -

 

ATTACHMENT TO SECTION 5.01(a)(i)(D) and 5.01(a)(ii)(A)

MATCHING CONTRIBUTIONS

Amount of and Eligibility for Matching Contributions

	•	 	Matching Contribution

For each Plan Year, the Employer shall make a Matching Contribution on behalf of each Participant
who is an Eligible Employee. The Employer, in its absolute discretion, shall determine which, if
any, Participants shall receive a Matching Contribution for a Plan Year. The amount of the Matching
Contribution shall equal the Participant’s Compensation in excess of the Code Section 401(a)(17)
limitation in effect for that Plan Year multiplied by 3% if the Participant does not participate in
the Hillenbrand, Inc. Pension Plan for the Plan Year.

For those eligible for the SERP contribution, the Matching Contribution, if any, shall equal the
‘target STIC percentage’ multiplied by the Participant’s Fiscal Year STIC Eligible Earnings. This
amount is then multiplied by 3% if the Participant does not participate in the Hillenbrand, Inc.
Pension Plan for the Plan Year. ‘Fiscal Year STIC Eligible Earnings’, for purposes of this Section
5.01(a), is defined as the amount of base compensation received from the Employer during the fiscal
year of the Employer.

January 2010

 

- 23 -

 

ATTACHMENT TO SECTION 5.01(b)(i)(D) and 5.01(b)(ii)(A)

OTHER CONTRIBUTIONS

Amount of and Eligibility for Other Contributions

	•	 	Excess Contributions

For each Plan Year, the Employer shall make an Excess Contribution on behalf of each Participant
who is an Eligible Employee. The amount of the Excess Contribution shall equal the Participant’s
Compensation in excess of the Code Section 401(a)(17) limitation in effect for that Plan Year
multiplied by 4% if the Participant does not participate in the Hillenbrand, Inc. Pension Plan for
the Plan Year and 3% if he does.

	•	 	SERP Contribution

For each Plan Year, the Employer may make a SERP Contribution on behalf of each Participant who is
an Eligible Employee. The Employer, in its absolute discretion, shall determine which, if any,
Participants shall receive a SERP Contribution for a Plan Year. The amount of the SERP
Contribution shall equal the ‘target STIC percentage’ multiplied by the Participant’s Fiscal Year
STIC Eligible Earnings. This amount is then multiplied by 4% if the Participant does not
participate in the Hillenbrand, Inc. Pension Plan for the Plan Year and 3% if he does. ‘Fiscal
Year STIC Eligible Earnings’, for purposes of this Section 5.01(b), is defined as the amount of
base compensation received from the Employer during the fiscal year of the Employer.

	•	 	Additional SERP Contribution

For each Plan Year, the Employer may make an Additional SERP Contribution on behalf of each
Participant who is an Eligible Employee. The Employer, in its absolute discretion, shall determine
which, if any, Participants shall receive an Additional SERP Contribution for a Plan Year. The
amount of the Additional SERP Contribution shall equal 3% multiplied by the sum of the
Participant’s (a) Fiscal Year STIC Eligible Earnings plus (b) Compensation in excess of the Code
Section 401(a)(17) limitation in effect for that Plan Year.

 

- 24 -

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