Document:

ndsn-ex10j_162.htm

 

EXHIBT 10-j

VII. 2005 DIRECTORS’ DEFERRED COMPENSATION

The provisions of the Plan and these Rules apply to Directors’ Compensation deferred after December 31, 2004.  Directors’ Compensation deferred before January 1, 2005, remains subject to the provisions of the Plan and the Rules as in effect on October 3, 2004.

	
1.
	
Definitions.  The following definitions apply to Directors’ deferred compensation:

	
 
	
(a)
	
“Directors’ Compensation” means all or a portion of the fees (including quarterly retainer fees, meeting fees, stock awards and such special or other fees as may be authorized by the Board of Directors, but excluding Director Options) paid to the Directors by reason of their serving on the Board and, if applicable, on Committees of the Board.

	
2.
	
Directors’ Compensation.  Each Director will have the option to defer his or her Directors’ Compensation and have it either (i) credited to an account maintained for him or her by Nordson as cash or (ii) allocated to an account maintained for him or her by Nordson as Stock Equivalent Units. Restricted Stock Awards may be deferred in the form of Restricted Stock Units only. 

	
3.
	
Elections to Defer Directors’ Compensation.

	
 
	
(a)
	
Time of Election.  Any person who is appointed to fill a vacancy on the Board, or is newly elected as a Director, may elect within thirty days after the commencement of his or her term as a Director to defer the receipt of all or a specified portion of his or her Directors’ Compensation earned for services performed for the balance of the year in which the election is made and for succeeding years. Deferral of Restricted Stock Awards must be made prior to or on the grant date of such awards, except in the first instance of a Restricted Stock award, in which case the Director will have thirty (30) days from the date of grant to elect a deferral. 

	
 
	
(b)
	
Duration of an Election.  An election to defer Directors’ Compensation will be irrevocable and will continue from year to year until a Director terminates the election by written request or until the end of the year preceding the initial distribution to the Director under the schedule set forth in Section 5(a), whichever first occurs, but, in the event of a termination, the amount theretofore deferred will not be paid to the Director until the dates specified in the schedule set forth in Section 5(a).  Any termination of an election by written request shall be effective as of the first day of the year following the year in which the written request is made. Elections to defer Restricted Stock must be made on an annual basis and are irrevocable.

 

 

	
 
	
(c)
	
Election to Defer Less than All Directors’ Compensation.  In the event that any Director elects to defer less than all of the Directors’ Compensation payable to him or her for any period, Nordson will first pay the non‐deferred portion of the Directors’ Compensation to the Director in cash and will only commence to defer his or her Directors’ Compensation, whether as cash or as Stock Equivalent Units, at such time as the entire non‐deferred portion has been paid to the Director in cash.

	
4.
	
Election of Cash, Stock Equivalent Units, or Restricted Stock Units.

	
 
	
(a)
	
Designation as Cash or Stock Equivalent Units.  At the time that each Director makes an election to defer the receipt of all or a specified portion of his or her Directors’ Compensation paid in the form of cash, the Director will designate whether the amount of the cash compensation he or she elects to defer will be credited to his or her account as cash or allocated as Stock Equivalent Units.  With respect to Restricted Stock grants, any deferral will be in the form of Restricted Stock Units.  

	
 
	
(b)
	
Change of Designation from Cash to Stock Equivalent Units.  Each Director who previously designated cash may at any time elect to have his or her designation changed from cash to Stock Equivalent Units (but not from Stock Equivalent Units to cash) and all or a portion of the cash credited to his or her account converted to Stock Equivalent Units; provided that no such election may be made relating to all or a portion of the cash credited to his or her account within six months of (i) an election to receive an early distribution under Section 5(b) hereof (if such distribution is funded by the conversion of Stock Equivalent Units), (ii) an election to make an intra-plan transfer under Nordson’s Employees’ Savings Trust Plan (“NEST”) of funds held in a Nordson Common Share Fund account into any other Fund under the NEST, or (iii) an election to receive a cash distribution from the NEST, including a loan or hardship withdrawal, which is funded in whole or in part by the liquidation of Common Shares in the participant’s Nordson Common Share Fund account.  Upon making such an election, all or the designated portion of the cash credited to a Director’s account will be converted into Stock Equivalent Units based on the Fair Market Value of the Common Shares at the date of conversion. “Fair Market Value” for purposes of this Section 4(b) means the average of the high and low price quoted for Common Shares as reported in the NASDAQ Global Select Market on the date of conversion.

	
 
	
(c)
	
Cash Credits.  Nordson will maintain an account for each Director who elects to defer Directors’ Compensation paid in cash as cash and will credit his or her account (i) on the last day of each month with the amount of cash compensation he or she elects to defer which otherwise would have been paid to him or her during the month and (ii) on the last day of each quarter with interest on the balance in this account at a rate equal to the rate of interest of Ten Year Treasury Securities as reported in the Federal Reserve Bank Constant Maturity Series H‐15 Report for the last business day of the quarter, paid on the average daily balance in the account during the quarter.  A Director whose account is credited with cash shall receive all distributions in cash.

 

 

	
 
	
(d)
	
Stock Equivalent Units.  Nordson will maintain an account for each Director who elects to defer Directors’ Compensation (other than Restricted Stock) as Stock Equivalent Units.  After a Director makes such an election, Nordson will credit his or her account (i) on the day of each meeting attended by a Director with a number of Stock Equivalent Units equal to the quotient of the amount of meeting fees he or she elects to defer which otherwise would have been paid to him or her divided by the Fair Market Value of the Common Shares on that day (ii) on the last day of each fiscal quarter with a number of Stock Equivalent Units equal to the quotient of the amount of a Director’s retainer he or she elects to defer which otherwise would have been paid to him or her divided by the Fair Market Value of the Common Shares on that day; and (iii)on dividend payment dates with an additional number of Stock Equivalent Units equal to the product of the number of Stock Equivalent Units credited to this account immediately prior to the dividend payment date multiplied by a fraction, the numerator of which is the amount of the dividend per Common Share and the denominator of which is the Fair Market Value of the Common Shares on the dividend payment date. A Director whose account is credited with Stock Equivalent Units shall receive all distributions in Common Shares.  “Fair Market Value” for purposes of this Section 4(d) means the average of the high and low price quoted for Common Shares as reported in the NASDAQ Global Select Market on the day the Directors account is credited.

	
 
	
(e)
	
Restricted Stock Units.  Nordson will maintain an account for each Director who elects to defer the receipt of Restricted Stock as Restricted Stock Units.  After a Director makes such an election, Nordson will credit his or her account with a number of Restricted Stock Units equal to the Fair Market Value of the Common Shares on the date of grant.  On dividend payment dates, Nordson will credit his or her account with an additional number of Restricted Stock Units equal to the product of the number of Restricted Stock Units credited to this account immediately prior to the dividend payment date multiplied by a fraction, the numerator of which is the amount of the dividend per Common Share and the denominator of which is the Fair Market Value of the Common Shares on the dividend payment date. “Fair Market Value” for purposes of this Section 4(e) means the average of the high and low price quoted for Common Shares as reported in the NASDAQ Global Select Market on the day the Directors account is credited. Upon the lapse of restrictions accompanying a grant, Nordson will credit the Director’s account with a number of Stock Equivalent Units equal to the number of Restricted Stock Units in the Director’s account, including the additional Restricted Stock Units representing dividends paid during the restriction period.

	
 
	
(e)
	
Subject to Claims of General Creditors.  All Directors’ Compensation deferred and amounts credited to accounts as cash, Stock Equivalent Units or Restricted Stock Units under the terms of this Section 4 will remain part of the assets of Nordson and will be subject to the claims of its general creditors.

 

 

	
5.
	
Distribution.

	
 
	
(a)
	
Normal Distribution.  The account maintained for each Director who elects to defer Directors’ Compensation will be distributed in 16 quarterly installments (the amount of each to equal the balance in his or her account at the particular time divided by the number of remaining installments) beginning with the first day of the month immediately succeeding the month in which that Director ceases to be a Director.  The undistributed balance of any account will bear interest at the rate specified in Section 4(c)(ii), or be credited with additional Stock Equivalent Units upon the payment of dividends as provided in Section 4(d), until the account has been completely distributed.

	
 
	
(b)
	
Early Distribution in Event of Financial Emergency.  Notwithstanding the provisions of Section 5(a), a Director may, with the consent of the Committee, withdraw all or a portion of his or her accounts in the event of a financial emergency that is beyond the Director’s control, would cause the Director great hardship if early withdrawal were not permitted, and qualifies as an “unforeseeable emergency” within the meaning of Code Section 409A(a)(2)(B)(ii); provided that, no election to receive such an early withdrawal will be permitted if it would be funded, in whole or in part, by the conversion of Stock Equivalent Units into cash and such election occurs within six months of an election to have all or any portion of the Director’s cash account converted into Stock Equivalent Units or an election to make an intra-plan transfer under the NEST of funds from any Fund into the participant’s Nordson Common Share Fund account.  Any such early withdrawal shall be in the form of a cash distribution, with any Stock Equivalent Units converted into cash on the basis set forth in Section 5(b), and will be limited to the amount necessary to meet the emergency.

	
6.
	
Death of a Director.  A Director may elect whether, in the event of his or her death prior to the expiration of the period during which his or her account balance is distributable, the account balance will be distributed to his or her estate (or designated beneficiary) in a single distribution or in the installments contemplated by Section 5(a).  Such election will be made at the time of the election contemplated by Section 3; if no such election is made, the account balance will be distributed in a single distribution.

	
7.
	
Non‐Competition.  In the event a Director ceases to be a Director and becomes a proprietor, officer, partner, or employee of, or otherwise becomes affiliated with, any business that is in competition with the Company, his or her account balance will be distributed immediately to him or her in a single cash distribution.  Any Stock Equivalent Units allocated to the Director’s account will be converted into an amount of cash equal to the product of the number of Stock Equivalent Units allocated to his or her account multiplied by the Fair Market Value of the Common Shares on the date of the distribution. “Fair Market Value” for purposes of this Section 7 means the average of the high and low price quoted for Common Shares as reported in the NASDAQ Global Select Market on the date of distribution.ndsn-ex10o_160.htm

 

EXHIBIT 10-o

SUPPLEMENTAL RETIREMENT AGREEMENT 

BETWEEN NORDSON CORPORATION AND MICHAEL F. HILTON

DATED AS OF DECEMBER 9, 2009

This Supplemental Retirement Agreement Between Nordson Corporation and Michael F. Hilton (the “Agreement”), dated as of December 9, 2009, is made and entered into by and between Nordson Corporation, an Ohio corporation (the “Company”), and Michael F. Hilton (the “Executive”).

	
1.
	
Purpose.  The purpose of this Agreement is to provide for treatment of Executive as fully-vested under the Nordson Corporation Salaried Employee Pension Plan (the “Pension Plan”) and the Nordson Corporation Amended and Restated 2005 Excess Defined Benefit Pension Plan (the “Pension SERP”) in the event that his employment under that certain Employment Agreement between the Company and Executive (the “Employment Agreement”) is terminated, under certain circumstances, prior to the attainment of full vesting under the Pension Plan and Pension SERP.  

	
2.
	
Eligibility to Participate.  Only Michael F. Hilton shall be eligible to participate in the arrangement under this Agreement.

	
3.
	
Relationship To Pension Plan, Pension SERP and Employment Agreement.  To the extent necessary to interpret this Agreement and the obligations set forth herein, the written terms and definitions contained in the Pension Plan, the Pension SERP and the Employment Agreement are hereby incorporated by reference herein.  However, this Agreement explicitly does not amend or otherwise alter the Pension Plan, the Pension SERP or the Employment Agreement in any respect.  To the extent that this Agreement sets forth benefit obligations to Executive that are different from those set forth in the Pension Plan or the Pension SERP, such differing obligations shall relate only to Executive and shall have no applicability with respect to any other participant under the Pension Plan or the Pension SERP.

	
4.
	
Supplemental Benefit Entitlement.  Executive shall be entitled to the benefits described under Section 5 of this Agreement in the event that he experiences a Termination due to Death, Termination due to Disability, Termination without Cause, or Resignation with Good Reason (as each is respectively defined under the Employment Agreement, and whether or not such event occurs in connection with a Change in Control) prior to becoming one hundred percent (100%) vested in benefits under the Pension Plan or the Pension SERP.  In the event of Executive’s Termination due to Death, the benefit entitlement described under Section 5 of this Agreement shall be owed to Executive’s spouse (or if he has no spouse as of such time, his estate).

	
5.
	
Total Supplemental Benefit Amount.  The Total Supplemental Benefit payable under this Agreement shall be equal to the sum of (a) the Supplemental Pension Benefit and (b) the Supplemental SERP Benefit, as described below.

 

 

	
 
	
a.
	
Supplemental Pension Benefit.  The Supplemental Pension Benefit shall be equal to the difference between (i) and (ii):

	
 
	
i.
	
The benefit to which Executive would be entitled under the Pension Plan if he were one hundred percent (100%) vested thereunder; and 

	
 
	
ii.
	
The benefit to which Executive actually is entitled under the Pension Plan.

	
 
	
b.
	
Supplemental SERP Benefit.  The Supplemental SERP Benefit shall be equal to the difference between (i) and (ii):

	
 
	
i.
	
The benefit to which Executive would be entitled under the Pension SERP if he were one hundred percent (100%) vested thereunder; and 

	
 
	
ii.
	
The benefit to which Executive actually is entitled under the Pension SERP.

	
 
	
c.
	
Example.  Assume that Executive experiences a Termination without Cause at the end of his third year of employment.  Under this Agreement, he would not receive a benefit from or under the Pension Plan.  However, instead, he would receive a benefit under this Agreement equal to the benefit that he would have received under the Pension Plan had he been fully vested under the Pension Plan based upon three (3) years of benefit accrual service.  This is referred to as the Supplemental Pension Benefit and is described in Section 5(a) above.

In addition, Executive would receive a benefit under the Pension SERP equal to the benefit that he otherwise would have received under the Pension SERP had he been fully vested in such benefit (again, computed based on three years of benefit accrual service).  This is referred to as the Supplemental SERP Benefit and is described in Section 5(b) above.

	
 
	
d.
	
Modification of Supplemental Pension Benefit and Supplemental SERP Benefit In Event of Change in Control.  In the event that at Change in Control (as defined under the Change-in-Control Retention Agreement between the Company and Executive (“Change-in-Control Retention Agreement”)) occurs, and Executive experiences a Termination without Cause or Resignation for Good Reason (as defined under the Employment Agreement within two (2) years following the effective date of a Change in Control, the Supplemental Pension Benefit and Supplemental SERP Benefit described above shall be calculated by crediting Executive with an additional two (2) years service credit and adding an additional two (2) years to Executive’s age.

2

 

	
6.
	
Survivor Benefit.  In the event that Executive dies prior to the termination of the Employment Agreement, as well as prior to the attainment of full vesting under the Pension Plan and Pension SERP, Executive’s spouse shall be entitled to the benefits described in Section 5 of this Agreement based upon Executive’s benefit accrual service earned as of his date of death.  Such benefits shall be paid to Executive’s spouse in the same amount and in the same form, and at the same time, all as prescribed under Section 3A.1 of the Pension SERP.

	
7.
	
Supplemental Benefit Commencement.  Payment of the benefits described in Section 5 of this Agreement shall commence as soon as administratively practicable following Executive’s Date of Termination under the Employment Agreement (but in any event shall be paid in the same calendar year in which such Date of Termination occurs); provided, however, that any benefit payable under this Agreement shall comply with the following restrictions:

	
 
	
a.
	
If Executive’s termination or resignation does not constitute a “separation from service,” as such term is defined under Section 409A of the Internal Revenue Code (the “Code”), Executive shall nevertheless be entitled to receive all of the payments and benefits that Executive is entitled to receive under Section 5 of this Agreement on account of his termination of employment prior to the attainment of full vesting under the Pension Plan and Pension SERP.  However, the benefits that Executive is entitled to under Section 5 of this Agreement shall not be provided to Executive until such time as Executive has incurred a “separation from service” within the meaning of Section 409A of the Code.  Unless otherwise indicated under this Agreement, any payments to which Executive is entitled under Section 5 of this Agreement shall be made as soon as administratively practicable following Executive’s separation from service.

	
 
	
b.
	
Notwithstanding any provision of this Agreement to the contrary, if Executive is a “specified employee” (as defined by Section 409A of the Code) at the time of his termination of employment under the Employment Agreement (or, if later, his “separation from service” under Section 409A of the Code), to the extent that a benefit under Section 5 of this Agreement is considered to provide for a “deferral of compensation” (as determined under Section 409A of the Code), then such benefit shall not be paid or provided until six months after Executive’s separation from service, or his death, whichever occurs first.  Any benefits that are withheld under this provision for the first six months shall be payable in a lump sum on the 181st day after such termination of employment (or, if later, separation from service).

Section 7(g) and (h) of the Employment Agreement and the restrictions contained therein are specifically incorporated by reference herein, and any benefit payable under this Agreement shall commence only after such restrictions have been satisfied.

3

 

	
8.
	
Form of Payment for Supplemental Benefits.  The benefits described in Section 5 of this Agreement shall be paid in the form elected by Executive and shall be subject to the restrictions set forth in Sections 2.4 and 2.5 of the Pension SERP.  Executive hereby elects to receive the benefits described in Section 5 of this Agreement in a single lump sum.

	
9.
	
Nonduplication of Benefits.  To the extent, and only to the extent, a payment or benefit that is paid or provided under this Agreement would also be paid or provided under the terms of the applicable plan, program, agreement or arrangement, including, without limitation, the Change-in-Control Retention Agreement, such applicable plan, program, agreement or arrangement will be deemed to have been satisfied by the payment made or benefit provided under this Agreement.

	
10.
	
Source Of Benefits Under This Agreement.  The benefits described in Section 5 of this Agreement shall be paid by the Company from its general assets at the time and manner provided herein.  Benefits hereunder shall not be subject to assignment, pledge, alienation or anticipation by Executive, his spouse or his estate.  Neither Executive, his spouse or his estate shall have, by reason of this Agreement, any right, title or interest of any kind in or to any property of the Company.  To the extent that Executive has a right to receive payments from the Company under this Agreement, such right shall be no greater than the right of a general unsecured creditor.

	
11.
	
Administration.  The Compensation Committee of the Company (the “Committee”) shall be the “administrator” of this Agreement, as such term is defined under Section 3(16) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

	
12.
	
Amendment and Termination.  This Agreement may be amended or terminated by mutual written agreement between the Company and Executive; provided, however, that any such amendment or termination shall comply with Section 409A of the Code.  Notwithstanding the foregoing, at such time as Executive becomes one hundred percent (100%) vested in benefits under both the Pension Plan or the Pension SERP, the Company shall no longer have any obligations under this Agreement and this Agreement shall terminate.  In such case, no benefits shall be payable from or under this Agreement.

	
13.
	
Withholding. The Company shall have the right to deduct from any payment in accordance with this Agreement any amount required to satisfy its obligation to withhold federal, state and local taxes.

	
14.
	
Construction.  This Agreement is intended to qualify as a plan maintained for the benefit of a select group of management or highly compensated employees within the meaning of ERISA, and shall be construed in accordance with such intention.

	
15.
	
Effective Date.  This Agreement shall be effective January __, 2010.

4

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written. 

 

		
	
 
	
NORDSON CORPORATION

 

					
	
 
	
By:
	
 
	
 
	
 

	
 
	
Name:
	
 
	
 

	
 
	
Title:
	
 
	
 

 

		
	
 
	
EXECUTIVE

 

			
	
 
	
 
	
 

	
 
	
 

	
 
	
Address:

 

097488, 000001, 103099386.7 

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