Document:

EX-10.1

 Exhibit 10.1 

COOPERATION AGREEMENT 

This COOPERATION AGREEMENT (the “Agreement”), dated as of February 25, 2019 is made and entered into by NN, INC., a Delaware
corporation (the “Company”) and LEGION PARTNERS ASSET MANAGEMENT, LLC, a Delaware limited liability company, (together with its Affiliates “Legion Partners”) and each of the other persons listed on the signature
page to this Agreement (collectively with Legion Partners and together with any other Affiliates of Legion Partners, the “Investor Group” and each individually, an “Investor”). 

WHEREAS, the Company and the Investor Group have engaged in discussions regarding the Company; 

WHEREAS, as of the date of this Agreement, the Investor Group beneficially owns shares of the common stock of the Company, par value $0.01 per
share (the “Common Stock”) totaling, in the aggregate, 3,378,631 shares or approximately 8.0% of the Common Stock, outstanding as of the date of this Agreement; 

WHEREAS, William Dries, a Class III member of the Company’s Board of Directors (the “Board”), has informed the
Board that he will retire from the Board, will not stand for re-election as a Class III member of the Board at the 2019 annual meeting of stockholders of the Company (the “2019 Annual
Meeting”) and has tendered his resignation to be effective immediately prior to the commencement of the 2019 Annual Meeting; 

WHEREAS, the Company and the Investor Group believe that the best interests of the Company and its stockholders (including the Investor Group)
would be served at this time by, among other things, agreeing to appoint, subject to the terms and conditions of this Agreement, Jeri Harman to serve as a Class I member of the Board (the “Class I Designee”)
and Janice Stipp to serve as a Class III member of the Board (the “Class III Designee”) (collectively, the “New Directors” and each, a “New Director”), and by the Company and
the Investor Group agreeing to the other covenants and agreements contained herein. 
 NOW, THEREFORE, in consideration of the foregoing
premises and the mutual covenants and agreements contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties to this Agreement, intending to be legally bound by this
Agreement, agree as follows: 
 1.    Board Matters; Board Nominations; Board Policies and
Procedures. 
 (a)    Board Matters. The Governance Committee of the Board (the “Governance
Committee”) has reviewed and approved the qualifications of each New Director to serve as a member of the Board. In reliance on the information provided to the Company by the Investor Group and each New Director, the Board has confirmed
that each New Director is “independent” as defined by the applicable standards of The Nasdaq Stock Market LLC (“Nasdaq”) and by the Securities and Exchange Commission (“SEC”). In connection with the
foregoing, the Board has relied on information that each New Director has provided to the Company, including information required to be or customarily disclosed by directors or director candidates in proxy statements or other filings under
applicable law or stock exchange rules or listing standards, information in connection with assessing eligibility, independence and other 

 
criteria applicable to directors, and the Board has assumed that the director questionnaire and other customary director onboarding documentation provided by each New Director is or will be fully
completed, true and accurate. 
 Concurrently with the effectiveness of this Agreement, the Board will take all necessary actions to
increase the size of its membership by two (2) and appoint the Class III Designee as a Class III member of the Board with a term expiring at the 2019 Annual Meeting and the Class I Designee as a Class I member of the Board
with a term expiring at the 2020 annual meeting of stockholders of the Company (the “2020 Annual Meeting”). In addition, prior to the mailing of its definitive proxy statement for the 2019 Annual Meeting, the Board will take all
necessary actions to nominate the Class III Designee (or any Replacement pursuant to Section 1(c)) as a candidate for election to the Board in place of William Dries at the 2019 Annual Meeting to serve until the
expiration of such person’s elected term, or until such person’s earlier death, resignation, disqualification or removal. 
 At
the 2019 Annual Meeting, the Company agrees to recommend, support and solicit proxies for the election of the Class III Designee (or any Replacement pursuant to Section 1(c)) in the same manner as for other independent
director candidates nominated by the Company at the 2019 Annual Meeting. The Company agrees that each New Director shall receive (i) the same compensation for service as a director as the compensation received by other non-management directors on the Board, and (ii) such other benefits on the same basis as all other non-management directors on the Board. 

(b)    Board Policies and Procedures. Each party acknowledges that each New Director (and any Replacement), upon
election to the Board, shall be governed by (i) all applicable laws and regulations, and (ii) all of the same policies, processes, procedures, codes, rules, standards and guidelines applicable to members of the Board and shall be required
to strictly adhere to the policies on confidentiality imposed on all members of the Board. Each New Director (and any Replacement) shall be required to provide the Company with such information as reasonably requested from all members of the Board
as is required to be disclosed under applicable law or stock exchange regulations, in each case as promptly as necessary to enable the timely filing of the Company’s proxy statement and other periodic reports with the SEC. The Board shall
determine appropriate committee assignments for the New Directors taking into account the composition of the Board, committee assignments and needs of the committees. 

(c)    Replacements. If, following the date of this Agreement and prior to the expiration of the Standstill Period,
either of the New Directors is unable or unwilling to serve as an independent director of the Company for any reason (other than on account of failure of the Class III Designee to be elected at the 2019 Annual Meeting), the Company shall
reasonably consult with Legion Partners in selecting a replacement director who qualifies as “independent” as defined by the applicable standards of Nasdaq and by the SEC to be appointed to the Board, and shall consider in good faith
qualified candidates unaffiliated with (and independent of) Legion Partners who are proposed privately to the Company by Legion Partners (any director appointed as a replacement for either of the New Directors, a “Replacement”);
provided that the Company’s obligations pursuant to this Section 1(c) shall terminate at such time as the Investor Group ceases to have beneficial ownership of at least the lesser of (i) 4.0% of the outstanding
shares of Common Stock and (ii) 1,684,168 shares of Common Stock. 

  
 2 

 (d)    Size of Board. During the period commencing with the date
of this Agreement through the date of the 2019 Annual Meeting, the Board shall not increase the size of the Board to more than nine (9) directors, and following the conclusion of the 2019 Annual Meeting until the expiration of the Standstill
Period (as defined below), the Board shall not increase the size of the Board to more than eight (8) directors, in each case unless Legion Partners consents in writing to any proposal to increase the size of the Board; provided that the
Company’s obligations pursuant to this Section 1(d) shall terminate at such time as the Investor Group ceases to have beneficial ownership of at least the lesser of (i) 4.0% of the outstanding shares of Common Stock
and (ii) 1,684,168 shares of Common Stock. 
 2.    Amendments to Certificate of Incorporation and Bylaws.
At the time of the execution and delivery of this Agreement, the Board shall pass resolutions proposing amendments (and recommending that the stockholders of the Company vote in favor of such amendments at the Company’s 2019 Annual Meeting) to
the Company’s Restated Certificate of Incorporation (as may be amended from time to time, the “Certificate of Incorporation”) and the Company’s Amended and Restated Bylaws (as may be amended from time to time, the
“Bylaws”) (such amendments, in the form attached hereto as Exhibit A), as applicable, to eliminate Classes I, II and III of the Board so that the Board shall have no classification. The Company shall include the amendments to
the Certificate of Incorporation in its proxy statement for the 2019 Annual Meeting (the “Declassification Proposal”), and shall use its reasonable best efforts to cause the Declassification Proposal to be adopted by the
stockholders of the Company by the appropriate vote. All directors and executive officers of the Company and each Investor agrees to vote all shares beneficially owned by them or over which they have voting control in favor of the Declassification
Proposal. For the avoidance of doubt, in the event the Declassification Proposal is approved by the stockholders of the Company, the Board will make conforming changes to the Bylaws and the members of the Board will be elected for a one-year term. 
 3.    Voting. At each annual and special meeting of
shareholders held prior to the expiration of the Standstill Period, each of the Investors agrees to (i) appear at such stockholders’ meeting or otherwise cause all shares of Common Stock beneficially owned by each Investor and their
respective Affiliates to be counted as present for purposes of establishing a quorum, (ii) vote, or cause to be voted, all shares of Common Stock beneficially owned by each Investor and their respective Affiliates on the Company’s proxy
card or voting instruction form (a) in favor of each of the directors nominated by the Board and recommended by the Board in the election of directors, (b) against any other nominees to serve on the Board that have not been recommended by
the Board and (c) with respect to all other matters other than an Extraordinary Matter (as defined below), in accordance with the Board’s recommendations as identified in the Company’s proxy statement, including in favor of all other
matters recommended for stockholder approval by the Board, and (iii) not execute any proxy card or voting instruction form in respect of such stockholders’ meeting other than the proxy card and related voting instruction form being
solicited by or on behalf of the Board (such proxy card and/or form, the “Company’s card”); provided, however, in the event that both Institutional Shareholders Services Inc. (“ISS”) and Glass
Lewis & Co., LLC (“Glass Lewis”) recommend otherwise with respect to any proposal 

  
 3 

 
(other than the election of directors), each of the Investors shall have the right to vote on the Company’s card in accordance with the recommendation of ISS and Glass Lewis with respect to
such proposal so long as no Investor publicly discloses such vote; provided, further, that with respect to any Extraordinary Matter, each of the Investors shall have the ability to vote freely on the Company’s card. For purposes
of this Section 3, an “Extraordinary Matter” means, with respect to the Company: (i) any merger, acquisition, recapitalization, restructuring, financing, disposition, distribution, spin-off, sale or transfer of all or substantially all of the Company’s or any of its Affiliates’ assets in one or a series of transactions, joint venture or other business combination of the Company or
any of its Affiliates with a third party and (ii) any implementation of takeover defenses not in existence as of the date of this Agreement by the Company. 

4.    Standstill. 

(a)    From the date of this Agreement until the expiration of the Standstill Period, each Investor shall not, and shall
cause their respective Affiliates, principals, directors, general partners, officers, employees and, to the extent acting on their behalf, agents and representatives (collectively, the “Related Persons”) not to, directly or
indirectly: 
 (i)    make any announcement or proposal with respect to, or offer, seek, propose, or
indicate an interest in (A) any form of business combination or acquisition or other transaction relating to assets or securities of the Company or any of its subsidiaries, (B) any form of restructuring, recapitalization or similar
transaction with respect to the Company or any of its subsidiaries, or (C) any form of tender or exchange offer for the Common Stock, whether or not such transaction involves a Change of Control (as defined below) of the Company (it being
understood that the foregoing shall not prohibit Investors or their Affiliates from acquiring Common Stock within the limitations set forth in Section 4(a)(iii)); 

(ii)    engage in any solicitation of proxies or written consents to vote (or withhold the vote of) any
voting securities of the Company, or conduct any binding or nonbinding referendum with respect to any voting securities of the Company, or assist or participate in any other way, directly or indirectly, in any solicitation of proxies (or written
consents) with respect to any voting securities of the Company, or otherwise become a “participant” in a “solicitation,” as such terms are defined in Instruction 3 of Item 4 of Schedule 14A and Rule
14a-1 of Regulation 14A, respectively, under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to vote (or withhold the vote of) any securities of the Company; 

(iii)    purchase or otherwise acquire, or offer, seek, propose, or agree to acquire, ownership (including
beneficial ownership as defined in Rule 13d-3 under the Exchange Act) of any securities of the Company, any direct or indirect rights or options to acquire any such securities, any derivative securities or
contracts or instruments in any way related to the price of shares of Common Stock of the Company, or any assets or liabilities of the Company; provided that the Investor Group, in the aggregate, may acquire beneficial ownership of up to 9.9% of the
outstanding shares of Common Stock; 

  
 4 

 (iv)    seek to advise, encourage, or influence any
person with respect to the voting of (or execution of a written consent in respect of), acquisition of or disposition of any securities of the Company; 

(v)    sell, offer, or agree to sell, directly or indirectly, through swap or hedging transactions or
otherwise, the securities of the Company or any rights decoupled from the underlying securities held by the Investor Group to any person or entity not (A) a party to this Agreement or (B) an Affiliate of the Investor Group (any person or
entity not set forth in clauses (A) and (B) shall be referred to as a “Third Party”) that would knowingly result in such Third Party, together with its Affiliates, owning, controlling or otherwise having any, beneficial or
other ownership interest representing in the aggregate in excess of 4.9% of the shares of Common Stock outstanding at such time (except for Schedule 13G filers that are mutual funds, pension funds or index funds with no known history of activism);

 (vi)    take any action in support of or make any proposal or request that constitutes (or would
constitute if taken): (A) advising, controlling, changing, or influencing the Board or management of the Company, including any plans or proposals to change the voting standard with respect to director elections, number or term of directors or to
fill any vacancies on the Board, except as set forth in this Agreement, (B) any change in the capitalization, stock repurchase programs and practices, or dividend policy of the Company, (C) any other change in the Company’s
management, business, or corporate structure, (D) seeking to have the Company waive or make amendments or modifications to the Certificate of Incorporation or Bylaws, or other actions that may impede or facilitate the acquisition of control of
the Company by any person, (E) causing a class of securities of the Company to be delisted from, or to cease to be authorized to be quoted on, any securities exchange, or (F) causing a class of securities of the Company to become eligible
for termination of registration pursuant to Section 12(g)(4) of the Exchange Act; 

(vii)    communicate with stockholders of the Company or others pursuant to Rule 14a-1(l)(2)(iv) under the Exchange Act; 
 (viii)    engage in any
course of conduct with the purpose of causing stockholders of the Company to vote contrary to the recommendation of the Board on any matter presented to the Company’s stockholders for their vote at any meeting of the Company’s stockholders
or by written consent; 
 (ix)    call or seek to call, or request the call of, alone or in concert with
others, any meeting of stockholders, whether or not such a meeting is permitted by the Certificate of Incorporation or Bylaws, including a “town hall meeting”; 

(x)    deposit any Common Stock in any voting trust or subject any Common Stock to any arrangement or
agreement with respect to the voting of any Common Stock (other than any such voting trust, arrangement or agreement solely among the Investors or any Affiliates thereof that is otherwise in accordance with this Agreement); 

  
 5 

 (xi)    act, seek, facilitate or encourage any person to
submit nominations or proposals, whether in furtherance of a “contested solicitation” or otherwise, for the appointment, election or removal of directors or otherwise with respect to the Company or seek, facilitate, encourage, or take any
other action with respect to the appointment, election or removal of any directors; 
 (xii)    form,
join, or in any other way participate in any “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to the Common Stock; provided, however, that nothing in this Agreement shall limit the
ability of an Affiliate of the Investor Group to join the “group” following the execution of this Agreement, so long as any such Affiliate agrees to be bound in writing by the terms and conditions of this Agreement and, if required under
the Exchange Act, an Investor files a Schedule 13D within two (2) business days disclosing that such Investor has formed a group with such Affiliate (it being understood that such Schedule 13D and the contents thereof may not violate any of the
restrictions set forth in this Agreement); 
 (xiii)    demand a copy of the Company’s list of
stockholders or its other books and records or make any request under any statutory or regulatory provisions of Delaware law; 

(xiv)    commence, encourage, or support any derivative action in the name of the Company or any class
action against the Company or any of its officers or directors, in each case with the intent of circumventing the provisions of this Section 4, or take any action challenging the validity or enforceability of any of the
provisions of this Section 4; provided, however, that the foregoing shall not prevent any Investor from (A) bringing litigation against the Company to enforce the provisions of this Agreement,
(B) making counterclaims with respect to any proceeding initiated by, or on behalf of, the Company against an Investor, or (C) responding to or complying with a validly issued legal process that neither the Investor Group nor any of their
Affiliates initiated, encouraged or facilitated; 
 (xv)    make any request or submit any proposal to
amend or waive the terms of this Section 4 other than through non-public communications with the Company that would not be reasonably expected to result in or involve public
disclosure obligations for any party; or 
 (xvi)    enter into any discussions, negotiations, agreements
or understandings with any person or entity with respect to any action the Investors are prohibited from taking pursuant to this Section 4, or advise, assist, knowingly encourage or seek to persuade any person or entity to
take any action or make any statement with respect to any such action, or otherwise take or cause any action or make any statement inconsistent with any of the foregoing. 

Notwithstanding the foregoing, nothing in this Section 4 or elsewhere in this Agreement shall prohibit or restrict
the Investor Group from: (A) communicating privately with the Board or any executive officer or director of the Company, regarding any matter, so long as such communications are not intended to, and would not reasonably be expected to, require
any public 

  
 6 

 
disclosure of such communications or otherwise violate this Section 4; (B) taking any action necessary to comply with any law, rule or regulation or any action required
by any governmental or regulatory authority or stock exchange that has, or may have, jurisdiction over the Investor Group or any of their respective Affiliates or Associates, provided that a breach by the Investor Group of this Agreement is not the
cause of the applicable requirement and provided, that such Investor, to the extent legally permissible, must provide written notice to the Company of at least two (2) business days prior to taking any such action that would otherwise be
prohibited under this Agreement, and reasonably consider any comments of the Company regarding such proposed action; (C) privately communicating to any of their potential investors or investors publicly available factual information regarding
the Company consistent with prior practice in Legion Partners’ annual and quarterly investor letters, provided such communications are not reasonably expected to be publicly disclosed and are understood by all parties to be private
communications and do not otherwise violate this Section 4 or Section 7; and (D) privately communicating to any stockholders of the Company in a manner that otherwise does not violate this
Section 4 or Section 7 of this Agreement; provided that such communications are not reasonably expected to be publicly disclosed and are understood by all parties to be private
communications. 
 (b)    The provisions of this Section 4 shall not limit in any respect the
actions of any director of the Company in his or her capacity as such, recognizing that such actions are subject to such director’s fiduciary duties to the Company and its stockholders (it being understood and agreed that neither the Investors
nor any of their Affiliates shall seek to do indirectly through any director or other party anything that would be prohibited if done by any of the Investors or their Affiliates). 

(c)    For purposes of this Agreement: 

(i)    “Affiliate” shall mean any “Affiliate” as defined in Rule 12b-2 promulgated by the SEC under the Exchange Act; 

(ii)    “Associate” shall mean any “Associate” as defined in Rule 12b-2 promulgated by the SEC under the Exchange Act; 

(iii)    “beneficial owner” and “beneficial ownership” shall have the
same meanings as set forth in Rule 13d-3 promulgated by the SEC under the Exchange Act; 

(iv)    a “Change of Control” transaction shall be deemed to have taken place if
(1) any person is or becomes a beneficial owner, directly or indirectly, of securities of the Company representing more than 50% of the equity interests and voting power of the Company’s then outstanding equity securities, (2) the
Company effects a merger or a stock-for-stock transaction whereby immediately after the consummation of the transaction the Company’s stockholders retain less than
50% of the equity interests and voting power of the surviving entity’s then outstanding equity securities or (3) the Company sells substantially all of the Company’s assets; 

  
 7 

 (v)    “person” or
“persons” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture,
estate, trust, association, organization or other entity of any kind or nature; and 

(vi)    “Standstill Period” shall mean the period commencing on the date of this Agreement
and ending on the date that is 15 calendar days prior to the last day of the advance notice period for the submission by stockholders of director nominations for consideration at the 2020 Annual Meeting (as set forth in the advance notice provisions
of the Bylaws existing on the date hereof). 
 (d)    At any time during the Standstill Period, upon reasonable written
notice from the Company pursuant to Section 11 hereof, the Investor Group will promptly provide the Company with information regarding the amount of the securities of the Company beneficially or economically owned by each
such entity or individual. This ownership information provided to the Company will be kept strictly confidential unless required to be disclosed pursuant to applicable laws and regulations, any subpoena, legal process or other legal requirement or
in connection with any litigation or similar proceedings in connection with this Agreement. 

5.    Representations and Warranties of the Company. The Company represents and warrants to the Investors
that (a) the Company has the corporate power and authority to execute the Agreement and to bind the Company to this Agreement, (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a
valid and binding obligation and agreement of the Company, and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles and (c) the execution, delivery and performance of this Agreement by the Company does not violate or conflict with (i) any law,
rule, regulation, order, judgment or decree applicable to it, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could become a default) under or pursuant to, or result
in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, or any material agreement, contract, commitment, understanding or arrangement to which the Company is
a party or by which it is bound. 
 6.    Representations and Warranties of the Investors. Each Investor,
on behalf of itself, jointly and severally represents and warrants to the Company that (a) as of the date of this Agreement, such Investor beneficially owns, directly or indirectly, only the number of shares of Common Stock as described
opposite its name on Exhibit B and Exhibit B includes all Affiliates of any Investors that own any securities of the Company beneficially or of record and reflects all shares of Common Stock in which the Investors have any interest or
right to acquire, whether through derivative securities, voting agreements or otherwise, (b) this Agreement has been duly and validly authorized, executed and delivered by such Investor, and constitutes a valid and binding obligation and
agreement of such Investor, enforceable against such Investor in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws
generally affecting the rights of creditors and subject to general equity principles, (c) such Investor has the authority to execute the Agreement on behalf of itself and the applicable 

  
 8 

 
Investor associated with that signatory’s name, and to bind such Investor to the terms of this Agreement, (d) each of the Investors shall use its commercially reasonable efforts to
cause each of its respective Related Persons to comply with the terms of this Agreement, and (e) the execution, delivery and performance of this Agreement by such Investor does not violate or conflict with (i) any law, rule, regulation,
order, judgment or decree applicable to it, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could become a default) under or pursuant to, or result in the loss of a
material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which such member is a party or by which it is bound.
Each Investor further agrees that it shall not compensate any New Director for serving on the Board or enter into any contract, agreement, arrangement, commitment or understanding (whether written or oral) relating to the Company with any director
or officer of the Company. Each Investor represents and warrants that it has no voting commitments or other arrangements or understandings with any of the New Directors as of the date hereof. Each Investor represents and warrants that it does not
have, directly or indirectly, any agreements, arrangements or understandings with any person (other than their own Representatives) with respect to any potential transaction involving the Company, the acquisition, voting or disposition of any
securities of the Company, or the potential submission of any proposals or director nominations at the Company (other than Investor’s agreements, arrangements or understandings with any potential director candidate concerning Investor’s
nomination or potential nomination of such candidate to the Board, all of which matters have been subsequently addressed by this Agreement). 

7.    Non-Disparagement. 

(a)    Each Investor agrees that, until the expiration of the Standstill Period, neither it nor any of its Affiliates will,
and it will cause each of its Affiliates and Related Persons not to, directly or indirectly, in any capacity or manner, make, express, transmit, speak, write, verbalize or otherwise communicate in any way (or cause, further, assist, solicit,
encourage, support or participate in any of the foregoing), any remark, comment, message, information, declaration, communication or other statement of any kind, whether verbal, in writing, electronically transferred or otherwise, that might
reasonably be construed to be derogatory toward the Company or any of its past or present directors, officers, Affiliates, subsidiaries, employees, agents or representatives (collectively, the “Company Representatives”), or that
reveals, discloses, incorporates, is based upon, discusses, includes or otherwise involves any confidential or proprietary information of the Company or its subsidiaries or Affiliates, or to malign, harm, disparage, defame or damage the reputation
or good name of the Company, any Company Representative or the Company’s business; provided, however, that the foregoing shall not prevent the Investor Group from privately communicating to the Company, or any directors or
executive officers of the Company factual information based on publicly available information that does not otherwise violate Section 4 of this Agreement. 

(b)    The Company agrees that, until the expiration of the Standstill Period, neither it nor any of its executive
officers or directors will, directly or indirectly, in any capacity or manner, make, express, transmit, speak, write, verbalize or otherwise communicate in any way (or cause, further, assist, solicit, encourage, support or participate in any of the
foregoing), any remark, comment, message, information, declaration, communication or other statement of 

  
 9 

 
any kind, whether verbal, in writing, electronically transferred or otherwise, that might reasonably be construed to be derogatory toward any Investor or any of its past or present directors,
officers, Affiliates, subsidiaries, employees, agents or representatives (collectively, the “Investor Representatives”), or that reveals, discloses, incorporates, is based upon, discusses, includes or otherwise involves any
confidential or proprietary information of any Investor or its Affiliates, or to malign, harm, disparage, defame or damage the reputation or good name of any Investor, any Investor Representative or any Investor’s business; provided,
however, that the foregoing shall not prevent private communications to the Investor Group or Investor Representatives of factual information based on publicly available information. 

(c)    Notwithstanding the foregoing, nothing in this Section 7 or elsewhere in this Agreement
shall prohibit any party to this Agreement from making any statement or disclosure required under the federal securities laws or other applicable laws, rules or regulations so long as such requirement is not due to a breach by any party of this
Agreement; provided, that such party must, to the extent legally permissible and practicable, provide written notice to the other party at least five (5) business days prior to making any such statement or disclosure required under the
federal securities laws or other applicable laws that would otherwise be prohibited by the provisions of this Section 7, and shall reasonably consider any comments of the other party. 

(d)    The limitations set forth in Sections 7(a) and 7(b) shall not prevent any party to this Agreement
from responding to any public statement made by the other party of the nature described in Sections 7(a) and 7(b) if such statement by the other party was made in breach of this Agreement. 

8.    Public Announcements. Promptly following the execution of this Agreement, the Company and the Investor
Group shall issue a mutually agreeable press release (the “Press Release”) announcing this Agreement, substantially in the form attached to this Agreement as Exhibit C. Prior to the issuance of the Press Release, neither the
Company nor any of the Investors shall issue any press release or make any public announcement regarding this Agreement or take any action that would require public disclosure relating to such action without the prior written consent of the other
party. No party or any of its Affiliates shall make any public statement (including, without limitation, in any filing required under the Exchange Act) concerning the subject matter of this Agreement inconsistent with the Press Release. 

9.    SEC Filings. 

(a)    No later than four (4) business days following the execution of this Agreement, the Company shall file a
Current Report on Form 8-K with the SEC reporting the appointment of the New Directors and appending or incorporating by reference this Agreement as an exhibit. The Company shall provide the Investor Group
with a reasonable opportunity to review and comment on the Form 8-K prior to it being filed with the SEC and consider in good faith any comments of the Investor Group. 

(b)    No later than two (2) business days following the execution of this Agreement, the Investor Group shall file
an amendment to that certain Schedule 13D, dated January 18, 2019, as amended and may be amended (the “Schedule 13D”) with respect to the 

  
 10 

 
Company that has been filed with the SEC, reporting the entry into this Agreement and appending or incorporating by reference this Agreement as an exhibit thereto (the “Schedule 13D
Amendment”). The Investor Group shall provide the Company with a reasonable opportunity to review and comment on the Schedule 13D Amendment prior to it being filed with the SEC and consider in good faith any comments of the Company. 

(c)    Except for amendments to the Schedule 13D filed by the Investor Group made solely to report material changes to the
information contained therein, including a change in the level of ownership of Common Stock and the entry into this Agreement and the issuance of the Press Release, none of the Investors shall, during the Standstill Period, (i) issue a press
release in connection with this Agreement or the actions contemplated hereby or (ii) otherwise make any public statement, disclosure or announcement with respect to this Agreement or the actions contemplated hereby, in each case without the
prior written consent of the Company, unless required by applicable law, rules or regulations in which case the Investor shall first preview such disclosure or announcement with the Company in advance of making such disclosure or announcement and
consider comments by the Company. 
 10.    Specific Performance. Each of the Investors, on the one hand,
and the Company, on the other hand, acknowledges and agrees that irreparable injury to the other party to this Agreement would occur in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or
are otherwise breached and that such injury would not be adequately compensable in monetary damages. It is accordingly agreed that the Investors or any Investor, on the one hand, and the Company, on the other hand (the “Moving
Party”), shall each be entitled to specific enforcement of, and injunctive or other equitable relief as a remedy for any such breach or to prevent any violation or threatened violation of, the terms of this Agreement, and the other party to
this Agreement will not take action, directly or indirectly, in opposition to the Moving Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity. The parties further agree to waive any requirement
for the security or posting of any bond in connection with any such relief. Such remedies shall not be deemed to be the exclusive remedies for a breach of this Agreement but shall be in addition to all other remedies available at law or equity. 

11.    Notice. Any notices, consents, determinations, waivers or other communications required or permitted
to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by email or facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party
to receive the same. The addresses and facsimile numbers for such communications shall be: 

  
 11 

							
		  	If to the Company:
			
		  		  	NN, Inc.
		  		  	6210 Ardrey Kell Road
		  		  	Charlotte, NC 28277
		  		  	Attn: Matt Heiter
		  		  	Email: matt.heiter@nninc.com
		
		  	with a copy (which shall not constitute notice) to:
			
		  		  	Simpson Thacher & Bartlett LLP
		  		  	425 Lexington Avenue
		  		  	New York, NY 10017
		  		  	Attn:	  	Eric Swedenburg
		  		  	Email:	  	eswedenburg@stblaw.com
		
		  	If to any Investor:
			
		  		  	9401 Wilshire Boulevard, Suite 705
		  		  	Beverly Hills, California 90212
		  		  	Attn:	  	Christopher S. Kiper
		  		  	Email:	  	ckiper@legionpartners.com
		
		  	with copies (which shall not constitute notice) to:
			
		  		  	Olshan Frome Wolosky LLP
		  		  	1325 Avenue of the Americas
		  		  	New York, NY 10019
		  		  	Attn:	  	Steve Wolosky
		  		  		  	Elizabeth Gonzalez-Sussman
		  		  	Email:	  	swolosky@olshanlaw.com
		  		  		  	egonzalez@olshanlaw.com

 12.    Governing Law. This Agreement and any claim, controversy or dispute
arising under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be governed by and construed and enforced in accordance with the laws of the State
of New York, without regard to any conflict of laws provisions thereof. 
 13.    Jurisdiction. Each party
to this Agreement agrees, on behalf of itself and its Affiliates and Associates, that any actions, suits or proceedings arising out of or relating to this Agreement or the transactions contemplated by this Agreement will be brought solely and
exclusively in any state or federal court in the State of New York (and the parties agree not to commence any action, suit or proceeding relating to this Agreement or the transactions contemplated by this Agreement except in such courts), and
further agrees that service of any process, summons, notice or document by U.S. registered mail to the respective addresses set forth in Section 11 will be effective service of process for any such action, suit or proceeding

  
 12 

 
brought against any party in any such court. Each party, on behalf of itself and its Affiliates and Associates, irrevocably and unconditionally waives any objection to the laying of venue of any
action, suit or proceeding arising out of this Agreement or the transactions contemplated by this Agreement, in any state or federal court in the State of New York, and further irrevocably and unconditionally waives and agrees not to plead or claim
in any such court that any such action, suit or proceeding brought in any such court has been brought in an improper or inconvenient forum. 

14.    Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER
THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO
ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 14. 

15.    Representative. Each Investor irrevocably appoints Legion Partners Asset Management, LLC as its attorney-in-fact and representative (the “Legion Representative”), in such Investor’s place and stead, to do any and all things and to execute any and
all documents and give and receive any and all notices or instructions in connection with this Agreement and the transactions contemplated by this Agreement. The Company shall be entitled to rely, as being binding on each Investor, upon any action
taken by the Legion Representative or upon any document, notice, instruction or other writing given or executed by the Legion Representative. 

16.    Entire Agreement. This Agreement constitutes the full and entire understanding and agreement among
the parties with regard to the subject matter of this Agreement, and supersedes all prior and contemporaneous agreements, understandings and representations, whether oral or written, of the parties with respect to the subject matter of this
Agreement. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings, oral or written, between the parties other than those expressly set forth in this Agreement. 

17.    Headings. The section headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement. 
 18.    Waiver. No failure on the
part of any party to exercise, and no delay in exercising, any right, power or remedy under this Agreement shall operate as a waiver of such right, power or remedy, nor shall any single or partial exercise of such right, power or remedy by such
party preclude any other or further exercise of such right, power or remedy or the exercise of any other right, power or remedy. 

  
 13 

 19.    Remedies. All remedies under this Agreement are
cumulative and are not exclusive of any other remedies provided by law or equity. 
 20.    Construction.
When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement, unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Whenever the words “include,” “includes” and “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The
words “hereof, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The word “will” shall
be construed to have the same meaning as the word “shall.” The words “dates hereof” will refer to the date of this Agreement. The word “or” is not exclusive. The definitions contained in this Agreement are applicable to
the singular as well as the plural forms of such terms. Any agreement, instrument, law, rule or statute defined or referred to herein means, unless otherwise indicated, such agreement, instrument, law, rule or statute as from time to time amended,
modified or supplemented. 
 21.    Severability. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree shall remain in full force and
effect to the extent not held invalid or unenforceable. The parties further agree to replace such invalid or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the purposes of
such invalid or unenforceable provision. 
 22.    Amendment. This Agreement may be modified, amended or
otherwise changed only in a writing signed by the Company, on the one hand, and the Legion Representative (on behalf of itself and the other members of the Investor Group), on the other hand. 

23.    Termination. Upon the expiration of the Standstill Period in accordance with
Section 4(c)(vi) hereof or upon the public announcement by the Company of entry into a definitive agreement that would constitute a Change of Control, this Agreement shall immediately and automatically terminate.
Notwithstanding the foregoing, the provisions of Section 10 through Section 27 shall survive the termination of this Agreement. No termination of this Agreement shall relieve any party from
liability for any breach of this Agreement that occurred prior to such termination. 
 24.    Successors and
Assigns. The terms and conditions of this Agreement shall be binding upon and be enforceable by the parties hereto and the respective successors, heirs, executors, legal representatives and permitted assigns of the parties, and inure to the
benefit of any successor, heir, executor, legal representative or permitted assign of any of the parties; provided, however, that no party may assign this Agreement or any rights or obligations hereunder without, with respect to any
Investor, the express prior written consent of the Company, and with respect to the Company, the prior written consent of the Legion Representative. 

  
 14 

 25.    No Third-Party Beneficiaries. The representations,
warranties and agreements of the parties contained herein are intended solely for the benefit of the party to whom such representations, warranties or agreements are made, and shall confer no rights, benefits, remedies, obligations, or liabilities
hereunder, whether legal or equitable, in any other person or entity, and no other person or entity shall be entitled to rely thereon. 

26.    Counterparts; Facsimile / PDF Signatures. This Agreement and any amendments hereto may be signed in
any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party hereto shall have received a
counterpart hereof signed by the other parties hereto. In the event that any signature to this Agreement or any amendment hereto is delivered by facsimile transmission or by email delivery of a portable document format (.pdf or similar format) data
file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 27.    Expenses. Each of the Company and the Investors shall be responsible for its own fees and
expenses incurred in connection with the negotiation, execution, and effectuation of this Agreement and the transactions contemplated hereby, including, but not limited to attorneys’ fees incurred in connection with the negotiation and
execution of this Agreement and all other activities related to the foregoing; provided, however, that the Company shall reimburse the Investor Group, within 30 days of the date that the Company receives reasonably satisfactory
supporting documentation, for its reasonable and documented out-of-pocket third party expenses, including legal fees and expenses, as actually incurred in connection
with the Investor Group’s involvement with the Company prior to the date hereof and the negotiation and execution of this Agreement, in an amount not to exceed $50,000. 

[Signature Page Follows] 

  
 15 

 IN WITNESS WHEREOF the parties have duly executed and delivered this Agreement as of the
date first above written. 
  

			
	NN, INC,
		
	By:	 	 /s/ Richard D. Holder

	Name:	 	Richard D. Holder
	Title:	 	President and Chief Executive Officer

  

			
	LEGION PARTIES:
	
	LEGION PARTNERS, L.P. I
		
	By:	 	Legion Partners Asset Management, LLC
		 	Investment Advisor
		
	By:	 	 /s/ Christopher S. Kiper

	Name:	 	Christopher S. Kiper
	Title:	 	Managing Director
	
	LEGION PARTNERS, L.P. II
		
	By:	 	Legion Partners Asset Management, LLC
		 	Investment Advisor
		
	By:	 	 /s/ Christopher S. Kiper

	Name:	 	Christopher S. Kiper
	Title:	 	Managing Director
	
	LEGION PARTNERS SPECIAL OPPORTUNITIES, L.P. XI
		
	By:	 	Legion Partners Asset Management, LLC
		 	Investment Advisor
		
	By:	 	 /s/ Christopher S. Kiper

	Name:	 	Christopher S. Kiper
	Title:	 	Managing Director

  
 16 

 
			
	LEGION PARTNERS, LLC
		
	By:	 	Legion Partners Holdings, LLC
		 	Managing Member
		
	By:	 	 /s/ Christopher S. Kiper

	Name:	 	Christopher S. Kiper
	Title:	 	Managing Member
	
	LEGION PARTNERS ASSET MANAGEMENT, LLC
		
	By:	 	 /s/ Christopher S. Kiper

	Name:	 	Christopher S. Kiper
	Title:	 	Managing Director
	
	LEGION PARTNERS HOLDINGS, LLC
		
	By:	 	 /s/ Christopher S. Kiper

	Name:	 	Christopher S. Kiper
	Title:	 	Managing Member
	
	Christopher S. Kiper
	
	 /s/ Christopher S. Kiper

	
	Raymond White
	
	 /s/ Raymond White

  
 17Exhibit

Exhibit 10.1

WEC ENERGY GROUP 
SUPPLEMENTAL PENSION PLAN
Amended and Restated Effective as of January 1, 2018

TABLE OF CONTENTS

	
						
	 
	 
	 
	 
	Page
	

	 
	 
	 
	 
	 

	INTRODUCTION
	 
	1
	

	 
	 
	 
	 
	 

	ARTICLE 1 DEFINITIONS
	 
	2
	

	 
	 
	 
	 
	 

	ARTICLE 2 SERP BENEFIT
	 
	7
	

	 
	2.1
	Eligibility and Participation
	 
	7
	

	 
	2.2
	Vesting
	 
	7
	

	 
	2.3
	SERP Benefit A
	 
	7
	

	 
	2.4
	SERP Benefit B
	 
	9
	

	 
	 
	 
	 
	 

	ARTICLE 3 PENSION MAKE-WHOLE BENEFIT
	 
	9
	

	 
	3.1
	Eligibility and Participation
	 
	9
	

	 
	3.2
	Vesting
	 
	9
	

	 
	3.3
	Pension Make-Whole Benefit
	 
	9
	

	 
	 
	 
	 
	 

	ARTICLE 4 TIME AND FORM OF PAYMENT
	 
	10
	

	 
	4.1
	Application of Time and Form of Payment Provisions
	 
	10
	

	 
	4.2
	Time for Distribution
	 
	10
	

	 
	4.3
	Payment Form
	 
	11
	

	 
	4.4
	Election Form Requirements
	 
	12
	

	 
	4.5
	Discretion to Accelerate Distribution
	 
	13
	

	 
	 
	 
	 
	 

	ARTICLE 5 DEATH BENEFITS
	 
	14
	

	 
	5.1
	Death While in Pay Status or After a Separation from Service
	 
	14
	

	 
	5.2
	Death Prior to a Separation from Service
	 
	15
	

	 
	 
	 
	 
	 

	ARTICLE 6 BENEFICIARY DESIGNATION
	 
	15
	

	 
	6.1
	Beneficiary
	 
	15
	

	 
	6.2
	Beneficiary Designation; Change
	 
	15
	

	 
	6.3
	Acknowledgment
	 
	15
	

	 
	6.4
	No Beneficiary Designation
	 
	15
	

	 
	6.5
	Doubt as to Beneficiary
	 
	15
	

	 
	6.6
	Discharge of Obligations
	 
	16
	

	 
	 
	 
	 
	 

	ARTICLE 7 TERMINATION, AMENDMENT OR MODIFICATION
	 
	16
	

	 
	7.1
	Termination
	 
	16
	

	 
	7.2
	Amendment
	 
	16
	

	 
	7.3
	Effect of Payment
	 
	17
	

	 
	 
	 
	 
	 

	ARTICLE 8 ADMINISTRATION
	 
	17
	

	 
	8.1
	Plan Administration
	 
	17
	

	 
	8.2
	Powers, Duties and Procedures
	 
	17
	

	 
	8.3
	Administration Upon Change in Control
	 
	18
	

	 
	8.4
	Agents
	 
	18
	

	 
	8.5
	Binding Effect of Decisions
	 
	18
	

i

	
						
	TABLE OF CONTENTS

	(CONT)

	 
	 
	 
	 
	Page
	

	 
	 
	 
	 
	 

	 
	8.6
	Indemnity of Committee
	 
	18
	

	 
	8.7
	Employer Information
	 
	18
	

	 
	8.8
	Coordination with Other Benefits
	 
	19
	

	 
	 
	 
	 
	 

	ARTICLE 9 CLAIMS PROCEDURES
	 
	19
	

	 
	9.1
	Presentation of Claim
	 
	19
	

	 
	9.2
	Decision on Initial Claim
	 
	19
	

	 
	9.3
	Right to Review
	 
	20
	

	 
	9.4
	Decision on Review
	 
	20
	

	 
	9.5
	Form of Notice and Decision
	 
	21
	

	 
	9.6
	Legal Action
	 
	21
	

	 
	 
	 
	 
	 

	ARTICLE 10 TRUST
	 
	21
	

	 
	10.1
	Establishment of the Trust
	 
	21
	

	 
	10.2
	Interrelationship of the Plan and the Trust
	 
	21
	

	 
	10.3
	Distributions from the Trust
	 
	21
	

	 
	 
	 
	 
	 

	ARTICLE 11 MISCELLANEOUS
	 
	21
	

	 
	11.1
	Status of Plan
	 
	21
	

	 
	11.2
	Unsecured General Creditor
	 
	22
	

	 
	11.3
	Employer's Liability
	 
	22
	

	 
	11.4
	Nonassignability
	 
	22
	

	 
	11.5
	Not a Contract of Employment
	 
	22
	

	 
	11.6
	Furnishing Information
	 
	22
	

	 
	11.7
	Receipt and Release
	 
	22
	

	 
	11.8
	Incompetent
	 
	23
	

	 
	11.9
	Governing Law and Severability
	 
	23
	

	 
	11.10
	Notices and Communications
	 
	23
	

	 
	11.11
	Successors
	 
	23
	

	 
	11.12
	Insurance
	 
	23
	

	 
	11.13
	Legal Fees to Enforce Rights After Change in Control
	 
	23
	

	 
	11.14
	Terms
	 
	24
	

	 
	11.15
	Headings
	 
	24
	

	 
	 
	 
	 
	 

	APPENDIX A
	 
	A-1
	

ii

WEC ENERGY GROUP 
SUPPLEMENTAL PENSION PLAN
INTRODUCTION
The Plan was established effective January 1, 2005 and is known as the "WEC Energy Group Supplemental Pension Plan."  Prior to January 1, 2016, the Plan was known as the Wisconsin Energy Corporation Supplemental Pension Plan.
The Plan is maintained by WEC Energy Group, Inc. (the “Company”) to attract and retain key employees by providing such employees with supplemental pension benefits.  The Plan consolidates provisions applicable to supplemental pension benefits under the Legacy Plan and pension make-whole benefits under the Legacy EDCP, STPP and MEZ Plan.  As such, beginning January 1, 2005, all supplemental pension benefits accrued pursuant to the Legacy Plan formula and all pension make-whole benefits accrued pursuant to the Legacy EDCP, STPP and MEZ Plan formulas are provided under this Plan.  Pension make-whole benefits earned under the Legacy EDCP, STPP and MEZ Plans as of December 31, 2004 were immediately vested and are considered "grandfathered" within the meaning of Code Section 409A.  
The Plan is intended to comply with the provisions of Code Section 409A, and any guidance and regulations issued thereunder.  The Plan shall be interpreted and administered consistent with this intent and shall apply to all amounts credited under the Plan on or after January 1, 2005.  Such amounts include any amounts previously earned but not vested as of December 31, 2004 under the Legacy Plan, which the Company froze effective December 31, 2004.  The terms and conditions of the Legacy Plan govern any Legacy Plan benefits derived from compensation paid and credited to the Legacy Plan before January 1, 2005, provided the benefits were otherwise vested as of December 31, 2004.  Except as otherwise provided in the Plan, payment elections made at the end of the Code Section 409A transition period apply to benefits derived from compensation paid in 2005 and later and supersede any payment election or election to defer made during such period, in accordance with Code Section 409A relief provided in Notice 2006‐79, Notice 2007‐86 and proposed regulations promulgated under Code Section 409A.
The Plan was amended and restated on January 1, 2015 to exclude from participation any nonrepresented (management) employee hired, rehired, or transferred from a union position on or after January 1, 2015 since these employees are not eligible to participate in the RAP.  Instead, these employees are allocated an employer retirement contribution under the WEC Energy Group Employee Retirement Savings Plan (previously, the Wisconsin Energy Corporation Employee Retirement Savings Plan) and eligible employees receive supplemental benefits under the WEC Energy Group Non-qualified Retirement Savings Plan (previously, the Wisconsin Energy Corporation Non‐qualified Retirement Savings Plan).  Effective as of January 1, 2016, the Plan was restated to reflect the change in the name of the Company and Plan and to clarify certain administrative provisions.  Effective as of January 1, 2017, the Plan was restated to clarify eligibility provisions for the Pension Make-Whole Benefit.  Effective as of January 1, 2018, the Plan was amended to clarify certain definitions and to update the claims procedures to reflect changes to the claims procedures for the qualified plans.  These changes are not intended

to be material modifications for purposes of Code Section 162(m) as described in Internal Revenue Service Notice 2018-68.
ARTICLE 1
DEFINITIONS
Whenever used herein, the following terms have the meanings set forth below, unless a different meaning is clearly required by the context:
		
	1.1
	"Annual Incentive Plan" shall mean the WEC Energy Group Annual Incentive Pay Plan for Non-Executives, as amended from time to time, or any successor to such plan. 

		
	1.2
	"Annual Installment Method" shall mean equal annual installment payments over a specified number of years that is actuarially equivalent to the immediate life annuity that would have normally been payable to the Participant upon the Participant's benefit commencement date.  To determine the annual installment payments, the Plan will utilize the actuarial assumptions set forth under the RAP for determining lump sum distributions from the RAP.

		
	1.3
	“Base Annual Salary” shall mean the annual cash compensation relating to services performed during a Plan Year, whether or not paid in, or included on the Form W-2 for, such Plan Year, excluding severance payments, non-qualified supplemental pension payments, performance awards, bonuses, commissions, overtime, fringe benefits, relocation expenses, incentive payments, non-monetary awards, directors’ fees and other fees, automobile and other allowances paid to a Participant for employment services rendered (whether or not such allowances are included in the Participant’s gross income), stock options, restricted stock, performance shares or units, dividends, dividend equivalents and any other equity-based award provided under a plan or arrangement of an Employer.  Base Annual Salary shall include only amounts payable during the Plan Year, shall be calculated before it is deferred or contributed by the Participant under a qualified or non-qualified plan of an Employer and shall include amounts not otherwise included in the Participant’s gross income under Code Sections 125, 132(f)(4), 402(e)(3), 402(h) or 403(b) pursuant to plans established by an Employer; provided, however, that all such amounts shall be included in Base Annual Salary only to the extent that, had there been no such plan, the amount would have been paid in cash to the Participant during the Plan Year.

		
	1.4
	“Beneficiary” shall mean one or more persons, trusts, estates or other entities designated by the Participant in accordance with Article 6 that are entitled to receive benefits under this Plan upon the death of a Participant. 

		
	1.5
	“Board” shall mean the board of directors of the Company.

		
	1.6
	“Change in Control” shall mean, with respect to the Company, the occurrence of any one of the following dates, interpreted consistent with Treasury Regulation Section 1.409A‐3(i)(5).

2

		
	(a)
	Change in Ownership.  The date any one Person, or more than one Person Acting as a Group, acquires ownership of stock of the Company that, together with stock held by such Person or Group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company.  Notwithstanding the foregoing, for purposes of this paragraph, if any one Person, or more than one Person Acting as a Group, is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same Person or Persons is not considered to cause a Change in Control.

		
	(b)
	Change in Effective Control.

		
	(i)
	The date any one Person, or more than one Person Acting as a Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) ownership of stock of the Company possessing 30% or more of the total voting power of the stock of the Company.  Notwithstanding the foregoing, for purposes of this subparagraph, if any one Person, or more than one Person Acting as a Group, is considered to effectively control the Company, the acquisition of additional control of the Company by the same Person or Persons is not considered to cause a Change in Control; or

		
	(ii)
	The date a majority of the members of the Company’s Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board before the date of the appointment or election.

		
	(c)
	Change in Ownership of a Substantial Portion of the Company’s Assets.  The date any one Person, or more than one Person Acting as a Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions.  For purposes of this paragraph (c), “gross fair market value” means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.  Notwithstanding the foregoing, a transfer of assets is not treated as a Change in Control if the assets are transferred to:

		
	(i)
	An entity that is controlled by the shareholders of the transferring corporation;

		
	(ii)
	A shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock;

		
	(iii)
	An entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company;

3

		
	(iv)
	 A Person, or more than one Person Acting as a Group, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company; or 

		
	(v)
	An entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a Person described in clause (iv).

		
	(d)
	“Person” and “Acting as a Group.”

		
	(i)
	For purposes of this Section, “Person” shall have the meaning set forth in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended. 

		
	(ii)
	For purposes of this Section, Persons shall be considered to be “Acting as a Group” if they are owners of a corporation that enter into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.  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 the other shareholders only with respect to the ownership in that corporation before the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.  Notwithstanding the foregoing, Persons shall 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 the same public offering.

		
	1.7
	“Chief Executive Officer” shall mean the Chief Executive Officer of the Company.

		
	1.8
	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

		
	1.9
	“Committee” shall mean an internal administrative committee appointed by the Chief Executive Officer to administer the Plan in accordance with Article 8.  

		
	1.10
	“Company” shall mean WEC Energy Group, Inc., a Wisconsin corporation, and any successor to all or substantially all of the Company’s assets or business.  Prior to June 29, 2015, the Company was known as Wisconsin Energy Corporation.

		
	1.11
	“Compensation Committee” shall mean the Compensation Committee of the Board.

		
	1.12
	“EDCP” shall mean the WEC Energy Group Executive Deferred Compensation Plan, as amended from time to time, or any successor to such plan.  Prior to January 1, 2016, the EDCP was known as the Wisconsin Energy Corporation Executive Deferred Compensation Plan.

		
	1.13
	“Election Form” shall mean the form or forms established from time to time by the Committee that a Participant completes and submits in accordance with Committee rules

4

to designate a form of payment pursuant to Article 4.  To the extent authorized by the Committee, such form may be electronic or set forth in some other media.
		
	1.14
	“Employer” shall mean the Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired) that have employees participating in the Plan.  The Chief Executive Officer or the Board, in its discretion, may exclude one or more subsidiaries from participating in the Plan.

		
	1.15
	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time.

		
	1.16
	 “IRS Limitations” shall mean the limitation on tax-qualified benefits imposed by Code Section 415, Code Section 401(a)(17), or any other limitation on tax-qualified benefits to which a participant may be entitled under a plan sponsored by the Company.

		
	1.17
	“Legacy EDCP” shall mean the Legacy Wisconsin Energy Corporation Executive Deferred Compensation Plan.  Prior to January 1, 2005, the Legacy EDCP was known as the Wisconsin Energy Corporation Executive Deferred Compensation Plan.

		
	1.18
	“Legacy Plan” shall mean the Legacy Wisconsin Energy Corporation Supplemental Executive Retirement Plan.  Prior to January 1, 2005, the Legacy Plan was known as the Wisconsin Energy Corporation Supplemental Executive Retirement Plan.

		
	1.19
	“MEZ Plan” shall mean the 2003 Mezzanine Incentive Plan For We Power, LLC, as amended and restated effective as of January 1, 2005, and as may be amended from time to time thereafter, or any successor to such plan.

		
	1.20
	“Participant” shall mean an individual selected to participate in the Plan and earn a benefit under either Article 2 or Article 3.  A spouse or former spouse of a Participant shall not be treated as a Participant in the Plan, even if the spouse or former spouse has an interest in the Participant’s benefit as a result of applicable law or property settlements resulting from legal separation or divorce.

		
	1.21
	“Pension Eligible Earnings” shall mean a Participant’s established base salary for assigned responsibilities payable during the Plan Year, including payments for absences, without regard for any limitations imposed by the Code on benefits or compensation and including any amounts of base salary that would have been paid to the Participant during the Plan Year, but were not paid because of deferral elections made by the Participant under a savings or other deferred compensation plan, and including the total of any incentive performance award determined under the Annual Incentive Plan, the STPP or other bonus plan of the Company which has been approved by the Board, Committee or Chief Executive Officer for inclusion into Pension Eligible Earnings for this Plan.  Amounts of base salary and awards under the Annual Incentive Plan, STPP or other bonus plan shall be calculated without regard to any amounts deferred from such base salary, Annual Incentive Plan, STPP or other bonus plan compensation.  For purposes of this definition, base salary shall be defined with reference to the RAP, as modified above, as in effect from time to time for a Plan Year.

5

		
	1.22
	“Pension Make-Whole Benefit” shall mean the benefit provided pursuant to Article 3.

		
	1.23
	“Plan” shall mean the WEC Energy Group Supplemental Pension Plan, including any amendments adopted hereto.  Prior to January 1, 2016, the Plan was known as the Wisconsin Energy Corporation Supplemental Pension Plan.

		
	1.24
	“Plan Year” shall mean the calendar year.

		
	1.25
	“RAP” shall mean the WEC Energy Group Retirement Account Plan, as amended from time to time, or any successor to such plan.  Prior to January 1, 2016, the RAP was known as the Wisconsin Energy Corporation Retirement Account Plan.

		
	1.26
	“SERP Benefit” shall mean SERP Benefit A and/or SERP Benefit B provided pursuant to Article 2.

		
	1.27
	“SERP Benefit A” means the benefit provided pursuant to Section 2.3.

		
	1.28
	“SERP Benefit B” means the benefit provided pursuant to Section 2.4.

		
	1.29
	“Separation from Service” shall mean the Participant’s termination of employment with all Employers and other entities affiliated with the Company, voluntarily or involuntarily, for any reason other than on account of death, or as otherwise provided by the Department of Treasury in regulations promulgated under Code Section 409A.  For purposes of the foregoing, whether an entity is affiliated with the Company shall be determined pursuant to the controlled group rules of Code Section 414, as modified by Code Section 409A.  Unless the employment relationship is terminated earlier by the Employer or Participant, the following shall apply for determining a Separation from Service under the Plan:

		
	(a)
	Except as provided in paragraph (b), the Participant’s employment relationship with the Employer shall be treated as continuing intact while the individual is on a military leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed six months (or longer, if required by statute or contract).  If the period of the leave exceeds six months and the Participant’s right to reemployment is not provided either by statute or contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period.

		
	(b)
	Where a leave of absence 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 such impairment causes the Participant to be unable to perform the duties of the Participant's position of employment or any substantially similar position of employment,  the Participant's relationship with the Employer shall be treated as continuing intact for a period of 29 months and will be deemed to terminate on the first date immediately following such 29‐month period.

6

		
	1.30
	“STPP” shall mean the WEC Energy Group Short-Term Performance Plan, as amended from time to time, or any successor to such plan.  Prior to January 1, 2016, the STPP was known as the Wisconsin Energy Corporation Short-Term Performance Plan.

		
	1.31
	“Trust” shall mean any fund created by a rabbi trust agreement established by the Company referencing the Plan and as amended from time to time.

		
	1.32
	“Vest” or “Vested” shall mean the Participant has a nonforfeitable right to the SERP Benefit and/or Pension Make-Whole Benefit, as the case may be, as determined under Section 2.2 or Section 3.2.

ARTICLE 2
SERP BENEFIT
		
	2.1
	Eligibility and Participation.  The Chief Executive Officer, the Board or the Compensation Committee of the Board may designate those key employees of the Employer as a Participant for a SERP Benefit, provided that participation in the Plan shall be limited to a select group of management and highly compensated employees of the Employer (as defined in ERISA Sections 201(2), 301(a)(3) and 401(a)(1)) whose most recent date of hire, rehire, or transfer from a union position is prior to January 1, 2015.  An employee may be designated as a Participant for purposes of SERP Benefit A and/or SERP Benefit B.

The Chief Executive Officer, the Board or the Compensation Committee of the Board shall have the discretion to exclude a Participant from continued participation in the SERP Benefit with such exclusion becoming effective as of the first day of the immediately following Plan Year.  In such event, the Participant shall be eligible to receive a Pension Make-Whole Benefit in lieu of any SERP Benefit that accrued before such exclusion to avoid any duplication of benefits under the Plan.
		
	2.2
	Vesting.  A Participant shall become Vested in the Participant's SERP Benefit upon the earlier of (i) attaining age 60 while employed with an Employer, (ii) death or (iii) a Change in Control.  The Chief Executive Officer, the Board or the Compensation Committee of the Board has the authority to Vest a Participant who experiences a Separation from Service before age 60 or incurs a disability.  “Disability” shall mean the Participant is eligible for a benefit under the Company’s long-term disability program, as may be in effect from time to time.  In the event a Participant forfeits the SERP benefit due to a Separation from Service before becoming Vested, the Participant shall be entitled to a Pension Make-Whole Benefit, if any, pursuant to Article 3.

		
	2.3
	SERP Benefit A.  SERP Benefit A provides a supplemental pension benefit, the amount of which shall be equal to the greater of (a) or (b), if applicable, subject to (c) below.  

		
	(a)
	The benefit formula described in this paragraph (a) is intended to calculate a supplemental cash balance benefit that will be calculated as if it were held in an account (the “Account Balance”) for the Participant’s credit under the RAP.  This Account Balance is a lump sum amount that increases each year as additional amounts are credited in two ways: a benefit credit and an interest credit.

7

		
	(i)
	Benefit Credit.  Beginning as early as 1995, for each Plan Year in which a Participant is eligible to accrue a SERP Benefit A, the Participant’s Account Balance will be credited with a benefit credit equal to (i) the “relevant percentage” of the Participant's Pension Eligible Earnings for the Plan Year less (ii) the amount credited to the Participant’s RAP cash balance account for such year.  Notwithstanding the foregoing, if a Participant experiences a Separation from Service during the Plan Year, the Participant’s benefit credit will equal the relevant percentage of the Participant’s Pension Eligible Earnings through the Participant’s Separation from Service less the amount credited to the Participant's RAP cash balance account for the same time period.

For purposes of the above, the relevant percentage will be the same percentage as is determined under the RAP for the Plan Year of determination except that to be eligible for a relevant percentage of more than the minimum guaranteed benefit credit as determined under the RAP, the Participant must be actively employed on December 31 of that year.
		
	(ii)
	Interest Credit.  For each Plan Year, the Participant’s Account Balance will receive an interest credit on the Account Balance at the beginning of the year.  This interest credit will be the same percentage that has been applied to the RAP for that year.  If the Participant did not have an Account Balance at the beginning of the year, the Account Balance will not receive an interest credit at the end of the year.  If the Participant has a distribution from the Account Balance, either in whole or in part (under an installment payment or annuity) before December 31, a prorata Interest Credit will be credited for the Plan Year that includes the distribution, determined in the same manner as under the RAP.  Interest credits cease with the commencement of payment.

		
	(b)
	The benefit formula described in this paragraph (b) will be calculated for Participants who were actively employed by an Employer on December 31, 1995 and who were covered under the RAP as of such date, thereby entitling them to a grandfathered pension benefit.  Such Participants will be eligible to have their SERP Benefit A determined under the grandfathered minimum benefit, as described in Appendix A.

		
	(c)
	The SERP Benefit A provides a benefit for Participants who otherwise would lose benefits under the RAP due to certain limitations for included compensation under the RAP.  Effective January 1, 2008, eligible compensation for determining benefits under the RAP for both the cash balance and grandfathered minimum benefit formulas was expanded to include STPP awards.  As a result of this change, for certain participants, the total benefit payable as a final retirement benefit from both the RAP and this Plan may be fully payable from the RAP under the formula for the grandfathered minimum benefit.  In this case, no further benefit would be payable from this Plan.

8

		
	2.4
	SERP Benefit B.  SERP Benefit B provides Participants with a life annuity of 10% of the monthly average of the Participant’s Pension Eligible Earnings received from the Employer during whichever period of 36 consecutive months produces the highest monthly average.  The monthly average of Pension Eligible Earnings during such 36 month period includes the monthly average of:

		
	(a)
	Any performance award determined under the STPP or any other plan as designated by the Board, calculated as of the date of determination as if then paid in full as base salary, and

		
	(b)
	Any amounts of base salary that would have been paid to the Participant during such 36-month period but are not paid due to deferral elections made by the Participant under a savings or other deferred compensation plan.

Effective as of January 1, 2005, no new individuals are eligible to earn a SERP B Benefit.  The provisions relating to SERP Benefit B shall only apply to those Participants who were designated as eligible to earn a SERP Benefit B before January 1, 2005.
ARTICLE 3 
PENSION MAKE-WHOLE BENEFIT
		
	3.1
	Eligibility and Participation.  Participation in the Pension Make-Whole Benefit shall be limited to a select group of management and highly-compensated employees of the Employers whose most recent date of hire, rehire, or transfer from a union position is prior to January 1, 2015.  From that group, an employee shall be eligible to participate in the Pension Make-Whole Benefit on the date such employee first becomes eligible to participate in the EDCP.  The Chief Executive Officer, the Board or the Compensation Committee shall have the discretionary authority to exclude a Participant from continued participation in the Pension Make-Whole Benefit.  Any such exclusion shall become effective as of the first day of the immediately following Plan Year.  Such Participant shall remain a Participant until the accrued Pension Make-Whole Benefit is paid in full, unless such Participant becomes designated as eligible to earn a SERP Benefit.  

		
	3.2
	Vesting.  Pension Make-Whole Benefits are immediately vested, unless a Participant becomes designated as eligible for a SERP Benefit and Vested in the SERP Benefit.  If a Participant becomes eligible to earn a SERP Benefit and becomes Vested in such benefit, no Pension Make-Whole Benefit shall be paid to such Participant in order to avoid any duplication of supplemental pension benefits provided under the Plan. 

		
	3.3
	Pension Make-Whole Benefit.  The Pension Make-Whole Benefit provided pursuant to this Article shall equal (a) less (b), subject to (c) below: 

		
	(a)
	The pension benefit which would have accrued to the Participant’s credit under the RAP, calculated without regard to IRS Limitations and taking into account:

		
	(i)
	All Base Annual Salary, whether paid and/or deferred to the EDCP; 

9

		
	(ii)
	STPP and/or Annual Incentive Plan awards, whether paid and/or deferred to the EDCP;

		
	(iii)
	Any other bonus award which has been approved by the Board, Committee or Chief Executive Officer; and

		
	(iv)
	Any MEZ Plan award with respect to reaching the 2005 and/or 2008 MEZ Plan milestone, whether paid and/or deferred to the EDCP.

		
	(b)
	The pension benefit which has actually accrued to the credit of the Participant under the RAP.

		
	(c)
	The Pension Make-Whole Benefit provides a benefit for Participants who otherwise would lose benefits under the RAP due to certain limitations for included compensation under the RAP.  Effective January 1, 2008, eligible compensation for determining benefits under the RAP for both the cash balance and grandfathered minimum benefit formulas was expanded to include STPP awards.  As a result of this change, for certain participants, the total benefit payable as a final retirement benefit from both the RAP and this Plan may be fully payable from the RAP under the formula for the grandfathered minimum benefit.  In this case, no further Pension Make-Whole Benefit would be payable from this Plan.  

ARTICLE 4 
TIME AND FORM OF PAYMENT
		
	4.1
	Application of Time and Form of Payment Provisions.  The provisions of this Article apply to all supplemental pension benefits provided pursuant to Article 2 and Article 3, unless otherwise specified pursuant to a separate written agreement. 

		
	4.2
	Time for Distribution.  Distribution of a Participant’s SERP Benefit or Pension Make-Whole Benefit shall be made following the earliest to occur of:  

		
	(a)
	The Participant’s Separation from Service; or

		
	(b)
	The Participant’s death.

Payment shall be paid or begin to be paid by the end of the Plan Year in which the distribution event occurs or, if later, by the 15th day of the third month following the event.  If an Annual Installment Method is in effect, the second installment payment shall be made within the first 90 days of the Plan Year following the Plan Year in which the first installment payment was made and subsequent installment payments shall be made thereafter during the first 90 days of the Plan Year in which the installment is due. 
Notwithstanding anything in the Plan to the contrary, distributions made to “specified employees” (determined pursuant to Treasury Regulation Section 1.409A‐(a)) upon a Separation from Service for any reason other than death shall be paid or begin to be paid as of the first day of the seventh month following the Participant’s Separation from Service.  If a monthly annuity is payable, the monthly payments otherwise scheduled to

10

be made pending such six-month delay will be aggregated and paid in a lump sum payment as of the first day of the seventh month following the Participant’s Separation from Service.  No interest shall be payable on any amounts delayed due to the Participant’s status as a specified employee.
		
	4.3
	Payment Form.  The form in which a Participant’s benefit shall be paid is dependent upon the Participant’s accrued benefit value determined as of the first day of the month following the distribution event (the “determination date”), even if such payment is delayed for a specified employee pursuant to Section 4.2.

		
	(a)
	Separation from Service or Death. 

		
	(i)
	A Participant whose accrued benefit is $75,000 or less as of the determination date, payment shall be made in a lump sum.

		
	(ii)
	A Participant whose accrued benefit is greater than $75,000 may elect, pursuant to Section 4.4, to receive payment:

		
	(A)
	In any number of installments between five and ten, using the Annual Installment Method to determine the amount of each installment, or

		
	(B)
	In the form of a life annuity.

A Participant electing to receive payment in the form of a life annuity may select among actuarially equivalent life annuities, the forms of which shall be determined by the Committee in its sole discretion.  Actuarial equivalence shall be determined using the factors then in effect under the RAP.  Such annuity selection may be made at the time distribution of the Participant's benefit is to begin without such selection being treated as a subsequent change in election pursuant to Treasury Regulation Section 1.409A-2(b)(2).  In the event a Participant elected a life annuity but does not make a selection as to the specific annuity form, payment shall be made in the form of a single life annuity for unmarried Participants or a joint and 50% survivor annuity for married Participants.
Notwithstanding the foregoing, if no valid Election Form is in effect upon the distribution event, then payment shall be made in (1) a lump sum if the value of a Participant’s accrued benefit falls within the payment tier described in clause (i) and (2) five installments using the Annual Installment Method to determine the amount of each installment if the value of a Participant’s accrued benefit falls within the payment tier described in clause (ii).
		
	(b)
	Separation from Service After Change in Control.  A lump sum payment shall be made upon a Separation from Service that occurs within 18 months following a Change in Control.  Such lump sum payment shall be in an amount equal to the then present value of all benefits then accrued under this Plan, calculated using (i) an interest rate equal to a 36 consecutive month average, using the rates as of 

11

the last business day of each month (the "Month End Rate"), of the five-year United States Treasury Note yields (the "36 Month Average Rate") in effect ending with the Month End Rate immediately prior to the month in which the Separation from Service occurred as such yield is reported in the Wall Street Journal or comparable publication, and (ii) the mortality table used for purposes of determining lump sum amounts then in use under the RAP.
		
	4.4
	Election Form Requirements.  

		
	(a)
	Election Timing Generally.  At the times indicated below, a Participant may file with the Committee an Election Form indicating the desired form of payment in the event the Participant’s benefit has a value greater than $75,000. 

		
	(i)
	Participants eligible for a SERP Benefit A or Pension Make-Whole Benefit may file an Election Form with the Committee no later than January 30th of the Plan Year immediately following the first Plan Year in which the Participant began to accrue either benefit.  An Election Form is irrevocable as of January 30 of such Plan Year.  

		
	(ii)
	SERP Benefit B Participants must file an Election Form with the Committee before the beginning of the first Plan Year in which a benefit is accrued.  An Election Form is irrevocable as of the first day of the Plan Year in which the benefit first accrues.  

		
	(b)
	Changes to Elected Form of Payment.  A Participant may elect to change the form of payment for amounts that are subject to an election that is irrevocable.

		
	(i)
	A Participant who has an installment form of payment in effect may change such election to an annuity payment, provided the annuity commencement date shall be deferred to a date that is at least five years after the date the initial installment payment would otherwise have commenced.

		
	(ii)
	A Participant who has an annuity payment election in effect may change such election to an installment form of payment, provided that the first installment payment shall be deferred to a date that is at least five years after the date the annuity payments would otherwise have commenced.

		
	(iii)
	A Participant who has an installment election in effect may change the number of installments, provided that the first installment payment shall be deferred to a date that is at least five years after the date the initial installment payment would otherwise have commenced.

Any such election changes pursuant to this paragraph shall be completed in accordance with Committee rules and must be made at least 12 months before the event triggering distribution occurs.  Therefore, if the event triggering distribution occurs before such 12 month period has elapsed, then the election to change the payment form shall not take effect.

12

		
	(c)
	Elections Pursuant to §409A Transition Relief.  Notwithstanding the foregoing provisions of this Section, on or before December 31, 2008, Participants may make or change payment form elections consistent with transition relief provided by the Department of the Treasury in Notice 2006-79, Notice 2007-86 and proposed regulations promulgated under Code Section 409A.  If a Participant makes such an election or change, then the last election validly in effect as of December 31, 2008 shall be treated as the “initial” election.  Participants whose SERP Benefit A vested and began to be paid on and after January 1, 2005 and before January 1, 2009, received either the default payment form of a joint and survivor annuity payment or an actuarial equivalent form of annuity payment, as provided under the Legacy Plan’s form of payment provisions.  In addition, a Participant who began to be paid any portion of the Participant's Pension Make-Whole Benefit that is subject to Code Section 409A on and after January 1, 2005 and before January 1, 2009, received payment of such benefit in the form selected pursuant to the Participant's timely filed election(s), or if none, in a lump sum, as provided under the Legacy Plan.

		
	4.5
	Discretion to Accelerate Distribution.

		
	(a)
	The Committee shall have the discretion to make a distribution, or accelerate the time or schedule of payment of a Participant’s vested accrued benefit if payment is required for:

		
	(i)
	FICA, FUTA and/or the corresponding withholding provisions of applicable state and local taxes with respect to compensation accrued under the Plan.  Any such distribution shall not exceed the aggregate of such tax withholding and shall reduce the Participant’s accrued vested benefit to the extent of such distributions; or

		
	(ii)
	Payment of state, local or foreign tax obligations arising from participation in the Plan that apply to an amount accrued under the Plan and FUTA resulting from such payment.  Any such payment shall not exceed the amount of such taxes due as a result of Plan participation.   

		
	(b)
	The Committee or a Plan representative is authorized to accelerate the time or schedule of a payment under the Plan to an individual other than the Participant, or to make a payment under the Plan to an individual other than the Participant, to the extent necessary to fulfill a domestic relations order (as defined in Code Section 414(p)(1)(B)).  Payment to an alternate payee under a domestic relations order shall be made in a lump sum within 90 days after the Committee or Plan representative approves such order.

		
	(c)
	The Committee shall have the discretion to accelerate the time or schedule of a payment under the Plan if the Plan fails to meet the requirements of Code Section 409A and regulations promulgated thereunder, provided that any such payment does not exceed the amount required to be included in income as a result of such failure.  

13

ARTICLE 5 
DEATH BENEFITS
		
	5.1
	Death While in Pay Status or After a Separation from Service.  

		
	(a)
	Death After Payment Commencement.

		
	(i)
	Lump Sum.  If the Participant dies after the lump sum payment is made by the Plan, no further payments shall be made from the Plan. 

		
	(ii)
	Installment Payments.  If the Participant dies after installment payments begin, but before the entire benefit is paid in full, the Participant’s unpaid benefit payments shall continue to be paid to the Participant’s Beneficiary over the remaining number of years as that benefit would have been paid to the Participant had the Participant survived.  

		
	(iii)
	Joint and Survivor Annuity.  If payments to the Participant have begun under a joint and survivor annuity and the Participant then dies, the Participant’s spouse shall begin receiving the survivor annuity payments for the spouse's life.

		
	(iv)
	Single Annuity.  If payments to the Participant have begun under a single life annuity and the Participant then dies, all payments shall cease upon the Participant’s death.

		
	(b)
	Death After Separation from Service but Before Payment Commencement.  In the event a Participant dies after a Separation from Service and before payment of the Participant's benefit is scheduled to be made, whether a benefit is paid to a Beneficiary will depend on the form of payment the Participant was scheduled to receive, determined as follows:

		
	(i)
	Lump Sum or Installment Payments.  If payment to the Participant was scheduled to be made in a lump sum or installments, payment to the Participant’s Beneficiary shall be made or begin to be made pursuant to the Participant’s election during the first 90 days of the Plan Year following the Plan Year of the Participant’s Separation from Service.

		
	(ii)
	Joint and Survivor Annuity.  If payment to the Participant was scheduled to be made in a joint and 50% survivor annuity, the Participant’s spouse shall begin receiving the survivor annuity payments at the time the Participant would have begun receiving payments had the Participant survived.

		
	(iii)
	Single Annuity.  If payment to the Participant was scheduled to be made in a single life annuity, no further payment shall be made following the Participant’s death.

14

		
	5.2
	Death Prior to a Separation from Service.  If a Participant dies prior to a Separation from Service, the Participant’s benefit shall be paid to the Participant’s Beneficiary in a lump sum by the end of the Plan Year in which the Participant dies or, if later, by the 15th day of the third month following the Participant’s death, regardless of whether the Participant is a specified employee.

ARTICLE 6 
BENEFICIARY DESIGNATION
		
	6.1
	Beneficiary.  Each Participant may, at any time, designate one or more Beneficiaries (both primary as well as contingent) to receive any benefits payable under the Plan upon the Participant's death.  The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of an Employer in which the Participant participates.

		
	6.2
	Beneficiary Designation; Change.  A Participant shall designate a Beneficiary by completing a beneficiary designation form established by the Committee or its delegate, and returning it to the Committee or its designated agent.  To the extent authorized by the Committee, such form may be electronic or set forth in some other media or format.  A Participant may change a Beneficiary designation by completing and otherwise complying with the terms of the beneficiary designation form and the Committee’s rules and procedures, as in effect from time to time.  Upon the acceptance by the Committee of a new beneficiary designation form, all Beneficiary designations previously submitted shall be canceled.  The Committee shall rely on the last completed beneficiary designation form submitted by the Participant before the Participant's death.  In the event of a Participant's divorce, any designation of the Participant's former spouse as a Beneficiary shall be deemed void unless after the divorce the Participant completes a new designation naming such former spouse as a Beneficiary.

		
	6.3
	Acknowledgment.  No Beneficiary designation or change in Beneficiary designation shall be effective until accepted by the Committee or a Plan representative.

		
	6.4
	No Beneficiary Designation.  If a Participant fails to designate a Beneficiary as provided in this Article 6 or, if all designated Beneficiaries predecease the Participant or die before complete distribution of the Participant’s benefit (applicable only if an installment payment is in effect), then the Participant's remaining benefits shall be paid to the Participant’s surviving spouse, if none, to the Participant's descendants by right of representation or, if none, to the Participant's next of kin determined pursuant to the laws of the state in which the Company's principal place of business is located as if the Participant had died unmarried and intestate.  

		
	6.5
	Doubt as to Beneficiary.  If the Committee has any doubt as to the proper Beneficiary to receive payments under this Plan, the Committee may, in its sole discretion, require the Participant’s Employer to withhold such payments until the matter is resolved to the Committee’s satisfaction.

15

		
	6.6
	Discharge of Obligations.  The complete payment of benefits under the Plan to a Beneficiary shall fully and completely discharge all Employers and the Committee from all further obligations under this Plan with respect to the Participant, and the Participant’s Election Form shall terminate upon such full payment of benefits.

ARTICLE 7 
TERMINATION, AMENDMENT OR MODIFICATION
		
	7.1
	Termination.

		
	(a)
	Although each Employer anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that an Employer will continue the Plan or will not terminate the Plan at any time in the future.  Accordingly, each Employer reserves the right to discontinue its participation in the Plan and/or to terminate the Plan at any time with respect to all of its Participants, by action of its board of directors or compensation committee.  The termination of the Plan shall not reduce the amount of any benefit to which the Participant or Beneficiary is entitled to receive under the Plan as of the termination date.  Except as provided in paragraph (b) below, benefits shall be maintained under the Plan until such amounts would otherwise have been distributed in accordance with the terms of the Plan and Participants’ validly filed payment elections.

		
	(b)
	Notwithstanding any provision in the Plan to the contrary, upon termination of the Plan, the Board of Directors or Compensation Committee reserves the discretion to accelerate distribution of Participants’ benefits (including those Participants in pay status) in accordance with regulations promulgated by the Department of the Treasury under Code Section 409A.

		
	7.2
	Amendment.  The Company may, in its sole discretion, amend or modify the Plan at any time, in whole or in part, by action of its Board, Compensation Committee or the Committee; provided, however, that (i) no amendment shall decrease the amount of a Participant’s accrued benefit in existence at the time the amendment or modification is made, and (ii) no amendment shall adversely affect any benefit to which a Participant or Beneficiary has become entitled as of the date of the amendment, in either case, without the Participant's consent.  Further, during the pendency of a Potential Change in Control (as defined below) and at all times following a Change in Control, no amendment or modification may be made which in any way adversely affects the interests of any Participant with respect to benefits accrued as of the date of the amendment.  A “Potential Change in Control” shall be deemed to have occurred if one of the following events occurs:

		
	(a)
	The Company enters into an agreement, the consummation of which would result in the occurrence of a Change in Control;

		
	(b)
	The Company or any Person publicly announces an intention to take or to consider taking actions which, if consummated, would constitute a Change in Control;

16

		
	(c)
	Any Person becomes the Beneficial Owner (within the meaning of Rule 13d‐3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of Stock representing 15% or more of either the then outstanding shares of stock of the Company or the combined voting power of the Company’s then outstanding Stock (not including the Stock beneficially owned by such Person or any Stock acquired directly from the Company or its affiliates); or

		
	(d)
	The Board adopts a resolution to the effect that, for purposes of this Plan, a Potential Change in Control has occurred.

Except as otherwise noted, the capitalized terms in the above definition have the same meaning as set forth in Section 1.6.  The Company’s power to amend or modify the Plan includes the power to suspend or freeze participation in the Plan, provided such suspension or freeze does not cause a prohibited acceleration of compensation under Code Section 409A.  In such circumstance, the Company may, in its sole discretion, rescind such modification at any time, provided such action is taken consistent with Code Section 409A.  Such action may be taken by the Company’s Board of Directors, the Compensation Committee or the Committee.
		
	7.3
	Effect of Payment.  The full payment of the Participant’s benefit under any provision of the Plan shall completely discharge the Plan’s and Employer’s obligations to the Participant and the Participant's Beneficiaries under this Plan.

ARTICLE 8 
ADMINISTRATION
		
	8.1
	Plan Administration.  Except as otherwise provided in this Article 8 and as specifically referenced in the Plan, the Compensation Committee has delegated administration of the Plan to the Committee.  Members of the Committee may be Participants under this Plan.  Any individual serving on the Committee who is a Participant shall not vote or act on any matter relating solely to such individual.  The Chief Executive Officer may not act on any matter involving such officer’s own participation in the Plan.  All references to the Committee shall be deemed to include reference to the Chief Executive Officer.

		
	8.2
	Powers, Duties and Procedures.  The Committee (or the Chief Executive Officer if such individual chooses to so act) shall have full and complete discretionary authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of the Plan, and (ii) decide or resolve any and all questions including interpretations of the Plan, as may arise in connection with the claims procedures set forth in Article 9 or otherwise with regard to the Plan.  The Committee shall have complete control and authority to determine the rights and benefits of all claims, demands and actions arising out of the provisions of the Plan of any Participant or Beneficiary or other person having or claiming to have any interest under the Plan.  When making a determination or calculation, the Committee may rely on information furnished by a Participant or the Employer.  Benefits under the Plan shall be paid only if the Committee decides in its sole discretion that the Participant or Beneficiary is entitled to them.  The 

17

Committee or the Chief Executive Officer may delegate such powers and duties as it determines for the efficient administration of the Plan.  
		
	8.3
	Administration Upon Change in Control.  For purposes of this Plan, the Company shall be the “Administrator” at all times before a Change in Control.  Upon and after a Change in Control, the Administrator shall be an independent third party selected by the individual who, at any time before such event, was the Company’s Chief Executive Officer or, if there is no such officer or such officer does not act, by the Company’s then highest ranking officer (the “Appointing Officer”).  Upon a Change in Control, the Administrator shall have full and complete discretionary power to determine all questions arising in connection with the administration of the Plan and the interpretation of the Plan and Trust including, but not limited to, benefit entitlement determinations.  Upon and after a Change in Control, the Company shall (i) pay all reasonable administrative expenses and fees of the Administrator, (ii) indemnify the Administrator against any costs, expenses and liabilities (including, without limitation, attorney’s fees) of whatever kind and nature which may be imposed on, asserted against or incurred by the Administrator in connection with the performance of the duties hereunder, except with respect to matters resulting from the gross negligence or willful misconduct of the Administrator or its employees or agents, and (iii) supply full and timely information to the Administrator on all matters relating to the Plan, the Trust, the Participants and their Beneficiaries, the benefits of the Participants, including the dates of disability, death or Separation from Service and such other pertinent information as the Administrator may reasonably require. Upon and after a Change in Control, the Administrator may be terminated (and a replacement appointed) only by an Appointing Officer.  Upon and after a Change in Control, the Administrator may not be terminated by the Company.

		
	8.4
	Agents.  In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to an Employer.

		
	8.5
	Binding Effect of Decisions.  Notwithstanding any other provision of the Plan to the contrary, the Committee or its delegate shall have complete discretion to interpret the Plan and to decide all matters under the Plan.  Any such interpretation shall be final, conclusive and binding on all Participants, Beneficiaries and any person claiming under or through any Participant, in the absence of clear and convincing evidence that the Committee acted arbitrarily and capriciously. 

		
	8.6
	Indemnity of Committee.  All Employers shall indemnify and hold harmless the members of the Committee, and any other employee to whom the duties of the Committee may be delegated, and the Administrator, as defined in Section 8.3, against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Committee, any of its members or any such employee or the Administrator.

		
	8.7
	Employer Information.  To enable the Committee and/or Administrator to perform its functions, each Employer shall supply full and timely information to the Committee on

18

all matters relating to the compensation of its Participants, the dates of the disability, death or Separation from Service and such other pertinent information as the Committee may reasonably require.
		
	8.8
	Coordination with Other Benefits.  The benefits provided to a Participant and the Beneficiary under the Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of an Employer.  The Plan shall supplement and shall not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

ARTICLE 9 
CLAIMS PROCEDURES
		
	9.1
	Presentation of Claim.  Any Participant or Beneficiary (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Committee a written claim for benefits.  If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within 90 days after such notice was received by the Claimant.  All other claims shall be made within 180 days of the date on which the event that caused the claim to arise occurred.  The claim shall state with particularity the determination desired by the Claimant.  A claim shall be considered to have been made when a written communication made by the Claimant or the Claimant’s representative is received by the Committee.  

		
	9.2
	Decision on Initial Claim.  The Committee shall consider a Claimant’s claim and provide written notice to the Claimant of any denial within a reasonable time, but no later than 90 days after receipt of the claim.  If an extension of time beyond the initial 90-day period for processing is required, written notice of the extension shall be provided to the Claimant before the initial 90-day period expires indicating the special circumstances requiring an extension of time and the date by which the Committee expects to render a final decision.  In no event shall the period, as extended, exceed 180 days.  If the Committee denies, in whole or in part, the claim, the notice shall set forth in a manner calculated to be understood by the Claimant:

		
	(i)
	The specific reasons for the denial of the claim, or any part thereof;

		
	(ii)
	Specific references to pertinent Plan provisions upon which such denial was based;

		
	(iii)
	A description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary; and

		
	(iv)
	An explanation of the claim review procedure set forth in Section 9.3 below, which explanation shall also include a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following a denial of the claim upon review.

19

		
	9.3
	Right to Review.  A Claimant is entitled to appeal any claim that has been denied in whole or in part.  To do so, the Claimant must submit a written request for review with the Committee within 60 days after receiving a notice from the Committee that a claim has been denied, in whole or in part.  Absent receipt by the Committee of a written request for review within such 60-day period, the claim shall be deemed to be conclusively denied.  The Claimant (or the Claimant’s duly authorized representative) may:

		
	(a)
	Review and/or receive copies of, upon request and free of charge, all documents, records and other information relevant to the Claimant’s claim;

		
	(b)
	Submit written comments, documents, records or other information relating to the Claimant's claim, which the Committee shall take into account in considering the claim on review, without regard to whether such information was submitted or considered in the initial review of the claim; and/or

		
	(c)
	Request a hearing, which the Committee, in its sole discretion, may grant.

If a Claimant requests to review and/or receive copies of relevant information pursuant to paragraph (a) above before filing a written request for review, the 60-day period for submitting the written request for review will be tolled during the period beginning on the date the Claimant makes such request and ending on the date the Claimant reviews or receives such relevant information.
		
	9.4
	Decision on Review.  The Committee shall render its decision on review promptly, and not later than 60 days after it receives a written request for review of the denial, unless a hearing is held or other special circumstances require additional time.  In such case, the Committee will notify the Claimant, before the expiration of the initial 60-day period and in writing, of the need for additional time, the reason the additional time is necessary, and the date (no later than 60 days after expiration of the initial 60-day period) by which the Committee expects to render its decision on review.  Notwithstanding the foregoing, if the Committee determines that an extension of the initial 60-day period is required due to the Claimant's failure to submit information necessary for the Committee to decide the claim, the time period by which the Committee must make its determination on review shall be tolled from the date on which the notification of the extension is sent to the Claimant until the date on which the Claimant responds to the request for additional information.  The decision on review shall be written in a manner calculated to be understood by the Claimant, and shall contain:

		
	(a)
	Specific reasons for the decision;

		
	(b)
	Specific references to the pertinent Plan provisions upon which the decision was 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 or other information relevant (within the meaning of Department of Labor Regulation Section 2560.503-1(m)(8)) to the Claimant’s claim;

20

		
	(d)
	A statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following a wholly or partially denied claim for benefits; and

		
	(e)
	Such other matters as the Committee deems relevant.

		
	9.5
	Form of Notice and Decision.  Any notice or decision by the Committee under this Article 9 may be furnished electronically in accordance with Department of Labor Regulation Section 2520.104b‐(1)(c)(i), (iii) and (iv).

		
	9.6
	Legal Action.  Any final decision by the Committee shall be binding on all parties.  A Claimant’s compliance with the foregoing provisions of this Article 9 is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any claim for benefits under this Plan.  Any such legal action must be initiated no later than 365 days after the Committee renders its final decision.  If a final determination of the Committee is challenged in court, such determination shall not be subject to de novo review and shall not be overturned unless proven to be arbitrary and capricious based on the evidence considered by the Committee at the time of such determination.  Any claim or action by a Claimant relating to or arising under the Plan can only be brought in the U.S. District Court for the Eastern District of Wisconsin, and this court has personal jurisdiction over any Claimant named in the action.

ARTICLE 10 
TRUST
		
	10.1
	Establishment of the Trust.  The Company may establish a Trust and, if established, each Employer shall contribute such amounts to the Trust from time to time as it deems desirable.

		
	10.2
	Interrelationship of the Plan and the Trust.  The provisions of the Plan shall govern the rights of a Participant to receive distributions pursuant to the Plan.  The provisions of the Trust shall govern the rights of the Employers, Participants and the creditors of the Employers to the assets transferred to the Trust.  Each Employer shall at all times remain liable to carry out its obligations under the Plan.

		
	10.3
	Distributions from the Trust.  Each Employer’s obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution shall reduce the Employer’s obligations under this Plan.

ARTICLE 11 
MISCELLANEOUS
		
	11.1
	Status of Plan.  The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that is unfunded for tax purposes 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 ERISA).  The Plan shall be administered and interpreted in a manner consistent with that intent.

21

		
	11.2
	Unsecured General Creditor.  Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of an Employer, Company or of any other person and nothing in the Plan shall be construed to give any employee or any other person such rights.  The Plan constitutes a mere promise by the Company or Employer to make payments in accordance with the terms of the Plan and Participants and Beneficiaries shall have the status of general unsecured creditors solely of the Employer employing the Participant. 

		
	11.3
	Employer’s Liability.  The amount of an Employer’s liability for the payment of benefits shall be defined only by the Plan and any Election Forms, as entered into between the Employer and a Participant.  An Employer shall have no obligation to a Participant under the Plan except as expressly provided in the Plan.

		
	11.4
	Nonassignability.  Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable to the maximum extent allowed by law.  No part of the amounts payable shall, before actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, nor shall any part of the same, to the maximum extent allowed by law, be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency or, except as provided in Section 4.5(b), be transferable to a spouse as a result of a property settlement or otherwise.

		
	11.5
	Not a Contract of Employment.  The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between any Employer and the Participant.  Such employment is hereby acknowledged to be an “at will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided in a written employment agreement between an Employer and a Participant.  Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of any Employer as an employee, or to interfere with the right of any Employer to discipline or discharge the Participant at any time, with or without cause, or to modify the Base Annual Salary or annual or long-term performance award at any time.  

		
	11.6
	Furnishing Information.  A Participant or Beneficiary shall cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits hereunder.

		
	11.7
	Receipt and Release.  Any payment to any Participant or Beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full satisfaction of all claims against the Employer, the Committee and a trustee (if any) under the Plan, and the Committee may require such Participant or Beneficiary, as a condition precedent to such payment, to execute a receipt and release to such effect.  

22

		
	11.8
	Incompetent.  If the Committee determines in its discretion that a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling disposition of that person's property, the Committee may direct payment of such benefit to the guardian, legal representative or person having the care and custody of such minor, incompetent or incapable person.  The Committee may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit.  Any payment of a benefit shall be a payment for the Account of the Participant and the Participant's Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such payment amount.  

		
	11.9
	Governing Law and Severability.  To the extent not preempted by ERISA, the provisions of this Plan shall be construed, administered and interpreted according to the internal laws of the State of Wisconsin without regard to its conflicts of laws principles.  If any provision is held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective.  

		
	11.10
	Notices and Communications.  All notices, statements, reports and other communications from the Committee to any employee, Participant, Beneficiary or other person required or permitted under the Plan shall be deemed to have been duly given when personally delivered to, when transmitted via facsimile or other electronic media or when mailed overnight or by first-class mail, postage prepaid and addressed to, such employee, Participant, Beneficiary or other person at last known address on the Employer’s or Company’s records.  All elections, designations, requests, notices, instructions and other communications from a Participant, Beneficiary or other person to the Committee required or permitted under the Plan shall be in such form as is prescribed from time to time by the Committee, and shall be mailed by first-class mail, transmitted via facsimile or other electronic media or delivered to such location as shall be specified by the Committee.  Such communication shall be deemed to have been given and delivered only upon actual receipt by the Committee at such location.

		
	11.11
	Successors.  The provisions of this Plan shall bind and inure to the benefit of the Participant’s Employer and its successors and assigns and the Participant and the Participant’s designated Beneficiaries.

		
	11.12
	Insurance.  An Employer, on its own behalf or on behalf of the trustee of the Trust, and, in its sole discretion, may apply for and procure insurance on the life of the Participant, in such amounts and in such forms as the Employer may choose.  The Employer or the trustee of the Trust, as the case may be, shall be the sole owner and beneficiary of any such insurance.  The Participant shall have no interest whatsoever in any such policy or policies, and at the request of the Employer shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to whom the Employer has applied for insurance.  The Participant may elect not to be insured.

		
	11.13
	Legal Fees to Enforce Rights After Change in Control.  The Employer is aware that upon the occurrence of a Change in Control, the Board (which might then be composed of new members) or a shareholder of the Employer, or of any successor corporation, 

23

might then cause or attempt to cause the Employer or such successor to refuse to comply with its obligations under the Plan and might cause or attempt to cause the Employer to institute, or may institute, litigation seeking to deny Participants the benefits intended under the Plan.  In these circumstances, the purpose of the Plan could be frustrated.  Accordingly, if, following a Change in Control, it should appear to any Participant that the Employer or any successor corporation has failed to comply with any of its obligations under the Plan or any agreement thereunder or, if the Employer or any other person takes any action to declare the Plan void or unenforceable or institutes any litigation or other legal action designed to deny, diminish or to recover from any Participant the benefits intended to be provided, then the Employer irrevocably authorizes such Participant to retain counsel of the Participant's choice at the expense of the Employer (who shall be jointly and severally liable for all reasonable fees of such counsel) to represent such Participant in connection with the initiation or defense of any litigation or other legal action, whether by or against the Employer or any director, officer, shareholder or other person affiliated with the Employer or any successor thereto in any jurisdiction.  If paid by the Participant, the Employer shall reimburse such legal fees no later than December 31st of the year following the year in which the expense was incurred.
		
	11.14
	Terms.  Whenever 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.

		
	11.15
	Headings.  Headings and subheadings in the Plan are inserted for convenience only and shall not control or affect the meaning or construction of any of its provisions.

37517838v6

24

APPENDIX A
GRANDFATHERED MINIMUM BENEFITS FOR PARTICIPANTS WHO ON DECEMBER 31, 1995 WERE BOTH ACTIVELY EMPLOYED BY THE COMPANY AND COVERED UNDER THE WE RETIREMENT ACCOUNT PLAN
A Participant who was actively employed by the Company on December 31, 1995 and who was then covered by the WE Retirement Account Plan and who continued as an active employee of the Company until commencement of benefits under the WE Retirement Account Plan, shall be eligible for the Benefit A Grandfather Alternative.  The Benefit A Grandfather Alternative will be equal to the greater of (x) or (y), where:
		
	(x)
	is the benefit that would have accrued for such Participant under the provisions of the special formula minimum retirement income grandfather sections (the “Grandfathered Benefit Provisions”) of the WE Retirement Account Plan, if the WE Retirement Account Plan were administered using all Pension Eligible Earnings as defined in this Plan, less the amount of the qualified pension benefit that such Participant would be actually entitled to receive were the Grandfathered Benefit Provisions of the WE Retirement Account Plan applied, and

		
	(y)
	is the benefit that would have accrued for such Participant under the provisions of the cash balance formula of the WE Retirement Account Plan, if the WE Retirement Account Plan was administered using all Pension Eligible Earnings as defined in this Plan, less the amount of the qualified benefit that such Participant would be actually entitled to receive under the cash balance formula of the WE Retirement Account Plan were such formula applied.

Credited service and Pension Eligible Earnings after December 31, 2010, will not be used to calculate this Benefit A Grandfather Alternative, but existing early retirement reductions based upon the Participant’s age and service applicable to the Grandfathered Benefit Provisions will continue in accordance with the terms of the WE Retirement Account Plan.
An example of the Benefit A Grandfather Alternative is as follows:
Assume the Participant actually receives a cash payment at retirement from the WE Retirement Account Plan of $380,000.  At the time the Participant receives that benefit, calculations are made to convert the formula (x) benefit above into a lump sum amount that is the actuarial equivalent of a life annuity for the life of the Participant commencing at the later of age 60 or the Participant’s age at benefit commencement.  This is accomplished in three steps.  First, the portion of the formula (x) benefit calculated using all Pension Eligible Earnings is multiplied by the early retirement reduction factor as determined under the WE Retirement Account Plan.  Secondly, the resulting benefit is converted into a lump sum actuarial equivalent ($1,450,000 in the illustration below) of the life annuity form described above, with actuarial equivalency determined for this purpose by using the interest rate and mortality table referenced in Article VII (with such interest rate to be that in effect on the last business day on the month prior to payment).  Thirdly, the value of the lump sum to which the Participant would actually be entitled

A-1

Exhibit 10.1

under the WE Retirement Account were the Grandfathered Benefit Provisions applied is subtracted ($350,000 in the illustration below) to obtain the formula (x) net lump sum amount ($1,100,000 in the illustration below).  Calculations are also made under formula (y) which compare the lump sum account balance that would have been generated for the Participant using all Pension Eligible Earnings under the regular cash balance formula of the WE Retirement Account Plan ($520,000 in the illustration below) with the actual lump sum account balance that would be payable to the Participant were the regular cash balance formula applied ($380,000 in the illustration below).  The following comparisons result:
	
					
	WE Retirement Account Plan:
	 

	 
	 
	 

	 
	Cash Balance Formula
	$
	380,000
	

	 
	Grandfather Formula
	350,000
	

	 
	 
	 

	SERP Benefit A Grandfather Alternative, calculated under:

	 
	 
	 

	 
	Cash Balance Formula
	$
	520,000
	

	 
	Grandfather Formula
	1,450,000
	

Actual SERP Benefit A Grandfather is $1,100,000, which is the greater of
2(a) - 1(a) [$140,000] or 2(b) - 1(b) [$1,100,000].

A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00292-of-00352.parquet"}]]