Document:

Exhibit 10(IV)--Exec. Deferred Comp. Plan

 

EXHIBIT 10(iv)

COOPER TIRE & RUBBER COMPANY

EXECUTIVE DEFERRED COMPENSATION PLAN

TABLE OF CONTENTS

ARTICLE I. PURPOSE

      Section 1.1 Statement of Purpose; Effective Date

ARTICLE II. DEFINITIONS AND CONSTRUCTION

      Section 2.1. Definitions

      Section 2.2. Construction

ARTICLE III. PARTICIPATION AND DEFERRALS

      Section 3.1. Eligibility and Participation

      Section 3.2. Ineligible Participant

ARTICLE IV. DEFERRAL OF BASE SALARY; CASH AWARDS AND GAIN SHARES

      Section 4.1. Deferral of Base Salary

      Section 4.2. Deferral of Cash Awards

      Section 4.3. Deferral of Receipt of Gain Shares

ARTICLE V. PARTICIPANTS’ ACCOUNTS

      Section 5.1. Establishment of Accounts

      Section 5.2. Crediting of Base Salary and Cash Awards Deferrals

      Section 5.3. Crediting of Deferred Gain Shares

      Section 5.4. Determination of Accounts

      Section 5.5. Adjustments to Accounts

      Section 5.6. Statement of Accounts

      Section 5.7. Vesting of Accounts

ARTICLE VI. FINANCING OF BENEFITS

      Section 6.1. Investment of Accounts

      Section 6.2. Financing of Benefits

      Section 6.3. Funding

ARTICLE VII. DISTRIBUTION OF BENEFITS

      Section 7.1. Settlement Date

      Section 7.2. Amount to be Distributed

      Section 7.3. Death or Termination for Cause Distribution

      Section 7.4. In-Service Distribution

      Section 7.5. Form of Distribution

      Section 7.6. Hardship Distributions

      Section 7.7. Special Distributions

      Section 7.8. Small Benefit

ARTICLE VIII. BENEFICIARY DESIGNATION

      Section 8.1. Beneficiary Designation

      Section 8.2. Facility of Payment

      Section 8.3. Amendments

ARTICLE IX. ADMINISTRATION

      Section 9.1. Administration

      Section 9.2. Plan Administrator

      Section 9.3. Binding Effect of Decisions

      Section 9.4. Successors

      Section 9.5. Indemnity of Committee and Administrator

      Section 9.6. Claims Procedure

      Section 9.7. Expenses

 

 

ARTICLE X. AMENDMENT AND TERMINATION OF PLAN

      Section 10.1. Amendment

      Section 10.2. Termination

ARTICLE XI. MISCELLANEOUS

      Section 11.1. No Guarantee of Employment

      Section 11.2. Governing Law

      Section 11.3. Nonassignability

      Section 11.4. Severability

      Section 11.5. Withholding Taxes

      Section 11.6. Legal Fees, Expenses Following a Change in Control

      Section 11.7. Top-Hat Plan

      Section 11.8. Relationship to Other Plans

 

 

COOPER TIRE & RUBBER COMPANY

EXECUTIVE DEFERRED COMPENSATION PLAN

ARTICLE I. PURPOSE

Section 1.1 Statement of Purpose; Effective Date. This is the Cooper Tire &
Rubber Company Executive Deferred Compensation Plan made in the form of this
Plan and in related agreements made between the Company and certain management
and highly compensated employees of the Company or its Affiliates. The Plan is
hereby established to provide designated management and highly compensated
employees with the option to defer the receipt of a portion of their regular
compensation, annual and multi-year cash incentives under the 2001 Incentive
Compensation Plan and 1998 Incentive Compensation Plan and any successor to
such plans and gains from the exercise of nonqualified stock options granted
under the 2001 Incentive Compensation Plan, 1998 Incentive Compensation Plan,
1986 Incentive Stock Option Plan, 1981 Incentive Stock Option Plan, and any
subsequent plans pursuant to which nonqualified stock options or annual and
multi-year cash incentives are granted. It is intended that the Plan will
assist in attracting and retaining employees of exceptional ability by
providing these benefits. The Plan shall be effective as the Effective Date.
The terms and conditions of the Plan are set forth below.

ARTICLE II. DEFINITIONS AND CONSTRUCTION

Section 2.1 Definitions. Whenever the following terms are used in this Plan
they shall have the meanings specified below unless the context clearly
indicates to the contrary:

         (a)  “Account” means the bookkeeping account maintained on the books of the
Company pursuant to Articles IV and V for the purpose of accounting for (i) the
amount of Base Salary that a Participant elects to defer under the Plan, (ii)
the amount of Cash Award that a Participant elects to defer under the Plan, and
(iii) the unrealized gains from the exercise of a nonqualified stock option
that a Participant elects to defer in Gain Shares under the Plan. A
Participant’s Account shall consist of (i) a “Common Shares” Subaccount if the
Participant elects to defer the receipt of Gain Shares, (ii) a “Cash”
Subaccount if the Participant elects to defer the receipt of Base Salary or
Cash Awards, and (iii) one or more Subaccounts for Investments.

         (b)  “Accounting Date” means the last business day of each month and any
other date selected by the Committee.

         (c)  “Accounting Period” means the period beginning on the day immediately
following an Accounting Date and ending on the next following Accounting Date.

         (d)  “Administrator” means a committee consisting of one or more
persons who shall be appointed by and serve at the pleasure of the Committee.

         (e)  “Affiliate” means any corporation, limited liability company, joint
venture, partnership, or other legal entity in which the Company owns, directly
or indirectly, or has previously owned at least fifty percent (50%) of the
capital stock, profits, interest or capital interest.

         (f)  “Automotive Group” means the automotive operating business of the
Company, which manufactures plastic, rubber and other related products.

 

 

         (g)  “Base Salary” means a Participant’s base earnings paid by the Company
without any regard to any increases or decreases in base earnings as a result
of an election to defer base earnings under this Plan, or an election between
benefits or cash provided under a plan of the Company maintained pursuant to
Section 125 or 401(k) of the Code.

         (h)  “Beneficiary” means the person or persons (natural or otherwise)
designated or deemed to be designated by the Participant pursuant to Article
VIII to receive benefits payable under the Plan in the event of Participant’s
death.

         (i)  “Board” means the Board of Directors of the Company.

         (j)  “Cash Award” means an Employee’s awards for a Plan Year which may
consist of (i) the annual cash award under the Incentive Compensation Plans
which is earned with respect to services performed by the Employee during such
Plan Year, whether or not such award is actually paid to the Employee during
such Plan Year, and (ii) a multi-year cash incentive bonus under the 1998
Incentive Compensation Plan, 2001 Incentive Compensation Plan, or successor
incentive compensation plan, which is earned with respect to a period of
service performed by the Employee ending in such Plan Year, whether or not such
award is actually paid to the Employee during such Plan Year.

	 	(k)	 	“Cause” means termination of the Participant’s employment
with the Company or an Affiliate by the Board because of:

		
	 	          (i) the willful and continued failure by the Participant to perform
substantially the duties of the Participant’s position; or
	 
	 	          (ii) the willful engaging by the Participant in conduct which is
demonstrably injurious to the Company or an Affiliate, monetarily or
otherwise; or the conviction of a criminal violation involving fraud,
embezzlement or theft in connection with Participant’s duties or in the
course of Participant’s employment with the Company or an Affiliate.

         (1)  “Change in Control” means the occurrence of any of the following
events:

		
	 	          (i) the Company merges into itself, or is merged or consolidated
with, another entity and as a result of such merger or consolidation less
than 51% of the voting power of the then-outstanding voting securities of
the surviving or resulting entity immediately after such transaction are
directly or indirectly beneficially owned in the aggregate by the former
stockholders of the Company immediately prior to such transaction;
	 
	 	          (ii) (A) all or substantially all the assets accounted for on
the consolidated balance sheet of the Company are sold or transferred to
one or more corporations or persons, and as a result of such sale or
transfer less than 51% of the voting power of the then-outstanding voting
securities of such entity or person immediately after such sale or
transfer is directly or indirectly beneficially held in the aggregate by
the former stockholders of the Company immediately prior to such
transaction or series of transactions or (B) all or substantially all of
the assets of the Tire Group, Automotive Group or such other group of the
Company so designated by the Board, and to the extent of any delegation
of the Board to a committee, by such committee, are sold or transferred
to one or more corporations or persons;

 

 

		
	 	          (iii) a person, within the meaning of Section 3(a)(9) or 13(d)(3) (as
in effect on the date of this Agreement) of the Exchange Act become the
beneficial owner (as defined in Rule 13d-3 of the Securities and Exchange
Commission pursuant to the Exchange Act) of (i) 15% or more but less than
35% of the voting power of the then outstanding voting securities of the
Company without prior approval of the Board, or (ii) 35% or more of the
voting power of the then-outstanding voting securities of the Company;
provided, however, that the foregoing does not apply to any such
acquisition that is made by (w) any Affiliate of the Company; (x) any
employee benefit plan of the Company or any Affiliate; or (y) any person
or group of which employees of the Company or of any Affiliate control a
greater than 25% interest unless the Board determines that such person or
group is making a “hostile acquisition;” or (z) any person or group that
directly or indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with, the Participant; or
	 
	 	          (iv) a majority of the members of the Board are not Continuing
Directors, where a "Continuing Director” is any member of the Board who
(x) was a member of the Board on the date of this Plan or (y) was
nominated for election or elected to such Board with the affirmative vote
of a majority of the Continuing Directors who were members of such Board
at the time of such nomination or election.

         (m)  “Claimant” has the meaning set forth in Section 9.6(a).

         (n)  “Code” means the Internal Revenue Code of 1986, as amended from time
to time; any reference to a provision of the Code shall also include any
successor provision thereto.

         (o)  “Committee” means the Compensation Committee of the Board.

         (p)  “Common Shares” means shares of the Company’s common stock, par
value $1.00 per share.

         (q)  “Common Stock Fund” means the Cooper Tire & Rubber Company Stock Fund
under the Cooper Tire & Rubber Company Thrift and Profit Sharing Plan, as
amended.

         (r)  “Company” means Cooper Tire & Rubber Company and any successor or
successors thereto.

         (s)  “Disability” means when the Participant has been totally disabled by
bodily injury or disease so as to prevent him from being physically able to
perform Participant’s assigned duties, and such total disability shall have:
(i) continued for five (5) consecutive months, and in the opinion of a
qualified physician selected by the Company, such disability will presumably be
permanent and continuous during the remainder of the Participant’s life; (ii)
entitled the Participant to benefits under any long-term disability plan
sponsored by the Company or an Affiliate; or (iii) entitled the Participant to
benefits under the Social Security Act of the United States.

         (t)  “Effective Date” means January 1, 2002.

         (u)  “Employee” means any employee of the Company or an Affiliate who is,
as determined by the Committee, a member of a “select group of management or
highly compensated employees” of the Company, within the meaning of Sections
201, 301 and 401 of ERISA, and who is designated by the Committee as an
Employee eligible to participate in the Plan.

 

 

         (v)  “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time; any reference to a provision of ERISA shall also
include any successor provision thereto.

         (w)  “Exchange Act” means the Securities Exchange Act of 1934, as amended
from time to time, and any rules promulgated thereunder (or any successor
provision thereto).

         (x)  “Fair Market Value” means, with respect to the Company’s Common
Shares, the fair market value thereof as of the relevant date of determination,
as determined in accordance with a valuation methodology approved by the
Committee. In the absence of any alternative valuation methodology approved by
the Committee, the Fair Market Value of the Company’s Common Shares shall equal
the average of the highest and the lowest quoted selling price of a share of
common stock as reported on the composite tape for securities listed on the New
York Stock Exchange, or such other national securities exchange as may be
designated by the Committee, or, in the event that the Common Shares are not
listed for trading on a national securities exchange but is quoted on an
automated system, on such automated system, in any such case on the valuation
date (or, if there were no sales on the valuation date, the average of the
highest and the lowest quoted selling prices as reported on said composite tape
or automated system for the most recent day during which a sale occurred).

         (y)  “Financial Hardship” means an unforeseeable financial emergency of the
Participant, determined by the Administrator as provided in Section 7.6 on the
basis of information supplied by the Participant, arising from an illness,
Disability, casualty loss, sudden financial reversal or other such
unforeseeable occurrence, but not including foreseeable events such as the
purchase of a house or education expenses for children.

         (z)  “Gain Shares” means the difference between the number of Common Shares
deliverable upon exercise of the related Options and the number of Common
Shares delivered by the Participant in satisfaction of the exercise price for
such Options.

         (aa)  “Incentive Compensation Plans” means the Cooper Tire & Rubber Company
2001 Incentive Compensation Plan, the Cooper Tire & Rubber Company 1998
Incentive Compensation Plan (the “1998 Incentive Compensation Plan”), the
Cooper Tire & Rubber Company 1986 Incentive Stock Option Plan and the Cooper
Tire & Rubber Company 1981 Incentive Stock Option Plan, as amended, and any
successor or subsequent incentive compensation plan.

         (bb)  “Insider Participant” means any Participant who is required to file
reports with the Securities and Exchange Commission pursuant to Section 16(a)
of the Exchange Act.

         (cc)  “Investments” has the meaning set forth in Section 6.1(a).

         (dd)  “Options” means any stock option, other than an “incentive stock
option” as defined in Section 422 of the Code, granted to a Participant under
the Incentive Compensation Plans.

         (ee)  “Participant” means an Employee participating in the Plan in
accordance with the provisions of Section 3.1, or a former Employee retaining
benefits under the Plan that have not been fully paid.

         (ff)  “Participation Agreement” means the agreement(s) submitted by a
Participant to the Administrator as provided in Section 3.1(b) in the form
approved by the Administrator.

 

 

         (gg)  “Plan” means this Cooper Tire & Rubber Company Executive Deferred
Compensation Plan as it may, from time to time, be amended.

         (hh)  “Plan Year” means the 12-month period beginning January 1 and ending
the following December 31.

         (ii)  “Request” has the meaning set forth in Section 6.1(b).

         (jj) 
“Retirement” means termination of employment with the Company and its Affiliates on or after (i) attainment of age 65 or (ii) attainment of the
age and service necessary to qualify for early retirement under the Company’s
Salaried Employees’ Retirement Plan, effective January 1, 1989, as amended.

         (kk)  “Retirement Committee” has the meaning set forth in Article XIV of
the Cooper Tire & Rubber Company Thrift and Profit Sharing Plan, effective
September 1, 1994, as amended.

         (ll)  “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act (or
any successor rule to the same effect), as in effect from time to time.

         (mm)  “Settlement Date” means the date on which a Participant terminates
employment with the Company. Leaves of absence granted by the Company will not
be considered as termination of employment during the term of such leave.
Settlement Date shall also include with respect to any deferral the date prior
or subsequent to termination of employment selected by a Participant in a
Participation Agreement for distribution of all or a portion of the amounts
deferred during a Plan Year as provided in Section 7.5.

         (nn)  “Terminated Participant” has the meaning set forth in Section
11.3(a).

         (oo)  “Tire Group” means the tire operating business of the Company, which
manufactures tires, inner tubes, retreading and other related products.

         (pp)  “Trust” has the meaning set forth in Section 6.3(a).

         (qq)  “Trust Agreement” has the meaning set forth in Section 6.3(a).

         (rr)  “Trustee” has the meaning set forth in Section 6.3(a).

Section 2.2. Construction. The masculine gender, where appearing in the
Plan, shall be deemed to include the feminine gender, and the singular may
include the plural, unless the context clearly indicates to the contrary. The
words “hereof,” “herein,” “hereunder,” and other similar compounds of the word
“here” shall mean and refer to the entire Plan, and not to any particular
provision or Section.

ARTICLE III. PARTICIPATION AND DEFERRALS

         Section 3.1 Eligibility and Participation.

         (a)  Eligibility. Eligibility to participate in the Plan for any Plan Year
is limited to those management and/or highly compensated Employees who are
designated, from time to time, by the Committee.

         (b)  Participation. Participation in the Plan shall be limited to eligible
Employees who elect to participate in the Plan by filing a Participation
Agreement with the Administrator. A properly completed and
executed Participation Agreement shall be filed (i) on or prior to the

 

 

December 31 immediately preceding the Plan Year in which the Participant’s
participation in the Plan will commence with respect to deferral of Base
Salary, (ii) on or prior to the June 30 of the Plan Year with respect to which
an annual Cash Award will be earned, (iii) on or prior to the twelve (12)
months preceding the last Plan Year with respect to which a multi-year Cash
Award will be earned or (iv) at least six (6) months prior to the exercise date
of each Option with respect to which the Gain Shares relate. The election to
participate shall be effective as provided therein following receipt by the
Administrator of the Participation Agreement. Each Participation Agreement for
the Plan shall be effective only with regard to Base Salary, Cash Awards and
Gain Shares earned and payable following the later of the effective date of the
Participation Agreement or the date the Participation Agreement is filed with
the Administrator.

         (c)  Initial Year of Participation. Notwithstanding Section 3.1(b), a
Participant who first becomes an eligible Employee during a Plan Year may,
within 30 days after he becomes an eligible Employee, elect to participate in
the Plan for such Plan Year and any Plan Year thereafter by filing a
Participation Agreement with the Administrator, and his Participation Agreement
shall be effective only with regard to Base Salary, Cash Awards and Gain Shares
earned following the filing of the Participation Agreement with the
Administrator.

         (d)  Termination of Participation. Participation in the Plan shall
continue as long as the Participant is eligible to receive benefits under the
Plan. A Participant may elect to terminate his or her participation in the
Plan by filing a written notice thereof with the Committee. The termination
shall be effective at any time specified by the Participant in the notice, but
not earlier than the first day of the next Plan Year following receipt by the
Administrator. Amounts credited to such Participant’s Account with respect to
periods prior to the effective date of such termination shall continue to be
payable pursuant to, receive earnings and be credited with gains and debited
with losses thereon (where applicable), and otherwise governed by, the terms of
the Plan. Notwithstanding any other provision of this Article III, a
Participant who is actively employed by the Company and who elects a
distribution pursuant to Section 7.7 shall immediately terminate his or her
participation in the Plan for the balance, if any, of the Plan Year during
which the Participant’s election is submitted to the Administrator and for the
next two Plan Years.

         Section 3.2. Ineligible Participant. Notwithstanding any other
provisions of this Plan to the contrary, if the Administrator determines that
any Participant may not qualify as a “management or highly compensated
employee” within the meaning of ERISA or regulations thereunder, the
Administrator may determine, in its sole discretion, that such Participant
shall cease to be eligible to participate in this Plan. Upon such
determination, the Company shall make an immediate lump sum payment to the
Participant equal to the amount credited to his Account. Upon such payment no
benefit shall thereafter be payable under this Plan either to the Participant
or any Beneficiary of the Participant, and all of the Participant’s elections
as to the time and manner of payment of his Account shall be deemed to be
cancelled. Such payment shall completely discharge the Company’s obligations
under this Plan.

ARTICLE IV. DEFERRAL OF BASE SALARY; CASH AWARDS AND GAIN SHARES

         Section 4.1. Deferral of Base Salary. With respect to each Plan Year, a
Participant may elect
to defer a specified dollar amount or percentage of Base Salary, up to 80%
of the Participant’s Base Salary, provided the total amount of Base Salary the
Participant elects to defer under this Plan shall

 

 

not be less than $10,000
annually. A Participant may change the dollar amount or percentage of
Participant’s Base Salary to be deferred by filing a written notice thereof
with the Administrator. Any such change shall be effective as of the first day
of the Plan Year following the Plan Year in which such notice is filed with the
Administrator.

         Section 4.2 Deferral of Cash Awards. With respect to each Plan Year, a
Participant may elect to defer a specified dollar amount or percentage of
Participant’s annual and/or multi-year Cash Awards, up to the full amount of
the Participant’s annual and multi-year Cash Awards, provided that the total
amount of annual or multi-year Cash Awards the Participant elects to defer
under this Plan shall not be less than $10,000 annually. A Participant may
change the dollar amount or percentage of Participant’s annual or multi-year
Cash Award to be deferred by filing a written notice thereof with the
Administrator. Any such change shall be effective following the receipt by the
Administrator of such notice, if such notice is filed at least (i) six (6)
months prior to the closing of the current performance period, as determined by
the Committee, for an annual Cash Award or (ii) twelve (12) months prior to the
closing of a current multi-year performance period, as determined by the
Committee, for a multi-year Cash Award.

         Section 4.3 Deferral of Receipt of Gain Shares.

         (a)  With respect to each Plan Year, a Participant may elect to specify the
number of shares and award date(s) of the Options to which the Participant
elects to defer the receipt of Gain Shares, up to the full amount of the
Participant’s Gain Shares, provided that the total value of Gain Shares the
Participant elects to defer under this Plan shall not be less than $10,000
annually. By delivering a Participation Agreement for the deferral of Gain
Shares to the Administrator, the Participant irrevocably waives his rights
under the related Options to (i) exercise the Options for cash at any time that
the Participant remains eligible to participate in the Plan and (ii) exercise
the Options in any manner during the period commencing on the effective date of
the Participation Agreement and ending six (6) months thereafter; provided,
however, that such waiver shall be null and void in the event that during such
six-month period (a) the Participant’s employment is terminated by the Company
or an Affiliate without Cause, (b) the Participant’s employment terminates as a
result of his death, Retirement or Disability, or (c) there is a Change in
Control of the Company. A Participant may change the number of shares and award
date(s) of the Options with respect to the Gain Shares to be deferred by filing
a written notice thereof with the Administrator. Any such change shall be
effective following the receipt of such notice by the Administrator, if such
notice is received by the last business day that is six (6) months prior to the
exercise date of the Participant’s Options, or if not so timely filed, then
such change shall be effective as of the first day of the next succeeding Plan
Year.

         (b)  In order to exercise Options with respect to which a Participant has
filed a Participation Agreement that remains in effect, the Participant must
tender, in satisfaction of the Option exercise price, Common Shares which the
Participant has owned for at least six (6) months having a Fair Market Value as
of the exercise date that is equal to the aggregate exercise price for the
Options exercised. Upon such exercise, the Company shall (i) deliver to the
Participant a number of Common Shares equal to the number of Common Shares
surrendered by the Participant in payment of the exercise price and (ii) credit
the Gain Shares to the Participant’s Common Shares Subaccount.

 

 

ARTICLE V. PARTICIPANTS’ ACCOUNTS

         Section 5.1. Establishment of Accounts. The Company, through its
accounting records, shall establish an Account for each Participant. In
addition, the Company may establish one or more subaccounts of a Participant’s
Account, if the Company determines that such subaccounts are necessary or
appropriate in administering the Plan. For a Participant who elects to defer
the receipt of Gain Shares, the Account of such Participant shall include a
Common Shares Subaccount.

         Section 5.2. Crediting of Base Salary and Cash Awards Deferrals. The
portion of a Participant’s Base Salary or Cash Awards that is deferred pursuant
to a Participation Agreement shall be initially credited to the Participant’s
Cash Subaccount as of the date the corresponding non-deferred portion of his
award would have been paid to the Participant. Any withholding of taxes or
other amounts with respect to any deferred award which is required by state,
federal or local law shall be withheld from the Participant’s non-deferred
compensation.

         Section 5.3. Crediting of Deferred Gain Shares.

         (a)  The portion of a Participant’s Gain Shares that is deferred pursuant
to a Participation Agreement shall be credited to the Participant’s Common
Shares Subaccount as of the date the Participant exercises his Options. A
Participant’s Common Shares Subaccount shall be deemed to be invested in Common
Shares and shall be credited with stock dividends declared thereon. Such
dividends shall be credited to the Common Shares Subaccount as whole and
fractional Common Shares based on the Fair Market Value on the dividend payment
date. Any withholding of taxes or other amounts with respect to any deferred
Gain Shares which is required by state, federal or local law shall be withheld
pursuant to the terms of the Incentive Compensation Plans under which the
exercised Options were granted.

         (b)  A Participant’s Cash Subaccount shall be credited on the date cash or
other property dividends (including cash dividends on Common Shares) are paid
with an amount equal to the amount of the cash (or fair market value of other
property) dividend with respect to Common Shares multiplied by the number of
Common Shares credited to the Participant’s Common Shares Subaccount as of the
record date for the corresponding dividend.

         Section 5.4. Determination of Accounts.

         (a)  Determination of Accounts. The amount credited to each Participant’s
Account as of a particular date shall equal the deemed balance of such Account
as of such date. The balance in the Account shall equal the amount credited
pursuant to Section 5.2 and Section 5.3, and shall be adjusted in the manner
provided in Section 5.5.

         (b)  Accounting. The Company, through its accounting records, shall
maintain a separate and distinct record of the amount in each Account as
adjusted to reflect income, gains, losses and distributions.

         Section 5.5. Adjustments to Accounts.

         (a)  The Participant’s Account shall next be credited or debited, as the
case may be, with an income (loss) and expense factor equal to an amount
determined by multiplying (i) the balance credited to the Participant’s Account
as of the immediately preceding Accounting Date (as adjusted pursuant to
Section 5.2, Section 5.3, Section 5.5(a) and Section 5.5(c) for the current
Accounting Period) by (ii) the rate of return net of expenses as determined by
the Administrator for the Accounting Period or portion thereof ending on such
Accounting Date on deemed Investments provided for in Section 6.1.

 

 

         (b)  After the crediting or debiting described in subsection (a) above,
each Participant’s Account shall be immediately debited with the amount of any
distributions under the Plan to or on behalf of the Participant or, in the
event of his death, the Participant’s Beneficiary.

         (c)  The Committee may make or provide for such adjustments in the number
of Common Shares credited to Participants’ Common Shares Subaccounts and in the
kind of shares so credited, as the Committee in its sole discretion, exercised
in good faith, may determine is equitably required to prevent dilution or
enlargement of the rights of Participants that otherwise would result from (i)
any stock dividend, stock split, combination of shares, recapitalization or
other change in the capital structure of the Company, or (ii) any merger,
consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial
or complete liquidation or other distribution of assets, issuance of rights or
warrants to purchase securities or (iii) any other corporate transaction or
event having an effect similar to any of the foregoing.

         Section 5.6. Statement of Accounts. At least annually, a statement
shall be furnished to each Participant or, in the event of his death, to his
Beneficiary showing the status of his Account as of the end of the most recent
Accounting Period, any changes in his Account since the date of the most recent
statement furnished to the Participant, and such other information as the
Administrator shall determine.

         Section 5.7. Vesting of Accounts. Each Participant shall at all times
have a nonforfeitable interest in his Account balance.

ARTICLE VI. FINANCING OF BENEFITS

         Section 6.1. Investment of Accounts.

         (a)  As soon as practicable after the crediting of any amount other than
Gain Shares to a Participant’s Account, the Company may, in its sole
discretion, direct that the Retirement Committee invest the amount credited, in
whole or in part, in one or more separate investment funds or vehicles,
including, without limitation, certificates of deposit, mutual funds, money
market accounts or funds, limited partnerships, real, personal, tangible or
intangible property, or debt or equity securities, including equity securities
of the Company (measured by market value, book value or any formula selected by
the Retirement Committee), (collectively the “Investments"), as the Retirement
Committee shall direct, or may direct that the Company retain the amount
credited as cash to be added to its general assets. The Company shall be the
sole owner and beneficiary of all Investments, and all contracts and other
evidences of the Investments shall be registered in the name of the Company.
The Company, under the direction of the Retirement Committee, shall have the
unrestricted right to sell any of
the Investments included in any Participant’s Account, and the
unrestricted right to reinvest the proceeds of the sale in other Investments or
to credit the proceeds of the sale to a Participant’s Account as cash.

         (b)  Each Participant shall file a Request to be effective as of the
beginning of the next Accounting Period with respect to the amounts other than
Gains Shares credited to his Account and amounts subsequently credited to his
Account. A Request will advise the Administrator as to the Participant’s
preference with respect to investment vehicles for all or some portion of such
amounts in specified multiples of 5%. The Administrator may, but is under no
obligation to, deem such amounts to be invested in accordance with the Request
made by the Participant, or the Committee may, instead, in

 

 

its sole discretion,
deem such amounts to be invested in any deemed Investments selected by the
Retirement Committee.

         (c)  A Request, unless modified as described below, shall apply to all
amounts other than Gain Shares credited to a Participant’s Account with respect
to each subsequent Plan Year. A Request may be changed with respect to such
amounts previously credited to a Participant’s Account as of such date and
amounts other than Gain Shares subsequently credited to his Account by giving
the Administrator prior written notice. Any such modified Request shall be
effective upon processing by the Administrator but not later than the fifth
business day following the day the Request is received by the Administrator.

         (d)  Notwithstanding the foregoing, if an Insider Participant modifies his
Request to have the deemed investment of any portion of the amounts other than
Gain Shares previously credited to such Insider Participant’s Account changed
(x) to the Company’s Common Stock Fund consisting of the Common Shares of the
Company from any of the other investment funds or (y) from the Company’s Common
Stock Fund consisting of the Common Shares of the Company to any of the other
investment funds, then in either such case such Request will not be processed
by the Administrator if, in the sole judgment of the Administrator, the
processing of such Request would result in the Insider Participant being liable
to the Company under Section 16(b) of the Exchange Act, as amended. The
provisions of this
Section 6.1(d) with respect to Insider Participants shall apply to any
Participant immediately upon the time such Participant becomes an Insider
Participant and shall continue until such time as such Participant is no longer
an Insider Participant.

         (e)  Earnings on any amounts deemed to have been invested in any
Investments shall be deemed to have been reinvested in such Investments.

         Section 6.2. Financing of Benefits. Benefits payable under the Plan to a
Participant or, in the event of his death, to his Beneficiary shall be paid by
the Company from its general assets. Notwithstanding the fact that the
Participants’ Accounts may be adjusted by an amount that is measured by
reference to the performance of any deemed Investments as provided in Section
6.1, no person entitled to payment under the Plan shall have any claim, right,
security interest or other interest in any fund, trust, account, insurance
contract, or asset of the Company which may be responsible for such payment.

         Section 6.3. Funding.

         (a)  Notwithstanding the provisions of Section 6.2, nothing in this Plan
shall preclude the Company from setting aside amounts in trust (the “Trust")
pursuant to one or more trust agreements between a trustee and the Company.
However, Participants, their Beneficiaries, and their heirs, successors and
assigns, shall have no secured interest or claim in any property or assets of
the Company or the Trust. The Company’s obligation
under the Plan shall be merely that of an unfunded and unsecured promise
of the Company to pay money in the future. Notwithstanding the foregoing, upon
the earlier to occur of (i) a Change in Control or (ii) a declaration by the
Board that a Change in Control is imminent, the Company shall promptly, to the
extent it has not previously done so, and in any event within five (5) business
days after such Change in Control (or on such fifth business day if the Board
has declared that a Change in Control is imminent), create an irrevocable trust
to hold funds to be used in payment of the obligations of the Company under the
Plan, and the Company shall fund such trust by transferring for the Accounts of
those Participants whom the Board has identified to the Trustee as having been
affected by such Change in Control an amount sufficient to fund no less than
the total value of such

 

 

Participants’ Accounts under the Plan as of the most
recent Accounting Date to National City Bank or its successor (the “Trustee")
to be added to the principal of the trust under the Cooper Tire & Rubber
Company Master Grantor Trust Agreement, between the Company and Trustee (the
“Trust Agreement"), provided that any funds contained therein or in the Trust
shall remain liable for the claims of the Company’s general creditors.

         (b)  Any payments of benefits by the Trustee to the Participant pursuant to
the Trust Agreement shall, to the extent thereof, discharge the Company’s
obligation to pay benefits under the terms of this Plan, it being the intent of
the Company that assets in the Trust be held as security for the Company’s
obligation to pay benefits under this Plan.

ARTICLE VII. DISTRIBUTION OF BENEFITS

         Section 7.1. Settlement Date. A Participant or, in the event of his
death, his Beneficiary shall be entitled to distribution of all or a part of
the balance of his Account, as provided in this Article VII, following his
Settlement Date or Dates.

         Section 7.2. Amount to be Distributed. The amount to which a Participant or,
in the event of his death, his Beneficiary is entitled in accordance with the
following provisions of this Article shall be based on the Participant’s
adjusted account balance determined as of the Accounting Date coincident with
or next following his Settlement Date or Dates.

         Section 7.3 Death or Termination for Cause Distribution. Upon the earlier
of (i) termination of service of the Participant as an Employee of the Company
for Cause, or (ii) the death of a Participant, the Company shall, in accordance
with this Article VII, pay to the Participant or his Beneficiary (or, upon the
death of a Beneficiary, to the Beneficiary’s estate), as the case may be, the
balance of his Account in a lump sum. Such payment shall completely discharge
the Company’s obligations under this Plan.

         Section 7.4. In-Service Distribution. A Participant may irrevocably elect
to receive an in-service distribution of his deferred Base Salary, Cash Awards
and Gain Shares and earnings thereon for any Plan Year on or commencing not
earlier than the beginning of the third Plan Year following the Plan Year in
which such Base Salary, Cash Awards and Gain Shares otherwise would have been
first payable. A Participant’s election of an in-service distribution shall be
made in the Participation Agreement filed as provided in Section 3.1. The
Participant shall elect irrevocably to receive such Base Salary, Cash Awards
and Gain Shares as an in-service distribution under one of the forms provided
in Section 7.5(b)(i) and Section 7.5(c)(i); provided, however, that Section
7.5(d) shall not apply to an in-service
distribution. Any benefits paid to the Participant as an in-service
distribution shall reduce the Participant’s Account.

         Section 7.5. Form of Distribution.

         (a)  As soon as practicable after the end of the Accounting Period in which
a Participant’s Settlement Date occurs, but in no event later than 30 days
following the end of such Accounting Period, the Company shall distribute or
cause to be distributed to the Participant the balance of the Participant’s
Account as determined under Section 7.2, under one of the forms provided in
this Section. Notwithstanding the foregoing, except as provided in Section
7.3, if elected by the Participant, the distribution of all or a portion of the
Participant’s Account may be made or commence on a date

 

 

between the Settlement
Date and the date the Participant attains age sixty-five (65).

         (b)  Distribution of a Participant’s Cash Subaccount with respect to any
Plan Year shall be made in one of the following forms as elected by the
Participant:

		
	 	          (i) by payment in cash in a specified sum;
	 
	 	          (ii) by payment in cash in not greater than ten annual
installments, provided, however, that each payment is not less than
$10,000; or a combination of (i) and (ii) above. The Participant shall
designate the percentage payable under each option.

         (c)  Distribution of a Participant’s Common Shares Subaccount with respect
to any Plan Year shall be made in one of the following forms as elected by the
Participant:

		
	 	          (i) by delivery of a specified number of Common Shares;
	 
	 	          (ii) by delivery of Common Shares in not greater than ten annual
installments, provided, however, that the Fair Market Value of each
installment is not less than $10,000; or
	 
	 	          (iii) a combination of (i) and (ii) above. The Participant shall
designate the percentage payable under each option.

         (d)  The Participant’s election of the form of distribution shall be made
by written notice filed with the Administrator at least one (1) year prior to
the Participant’s voluntary termination of employment with, or Retirement from,
the Company. Any such election may be changed by the Participant at any time
and from time to time without the consent of any other person by filing a later
signed written election with the Administrator; provided that any election made
less than one (1) year prior to the Participant’s voluntary termination of
employment or Retirement shall not be valid, and in such case payment shall be
made in accordance with the Participant’s prior election; and provided,
further, that the Administrator may, in its sole discretion, waive such one (1)
year period upon a request of the Participant made while an active or inactive
Employee of the Company.

         (e)  The amount of each installment under Section 7.5(b) or Section 7.5(c)
shall be equal to the quotient obtained by dividing the Participant’s Account
balance as of the date of such installment payment by the number of installment
payments remaining to be made to or in respect of such Participant at the time
of calculation.

         (f)  If a Participant fails to make an election in a timely manner as
provided in this Section 7.5, distribution shall be made in cash and Common
Shares, as applicable, in a single lump sum.

         Section 7.6 Hardship Distributions. Upon a finding by the Administrator
that a Participant has suffered a Financial Hardship, the Administrator may, in
its sole discretion, distribute, or direct the Trustee to distribute, to the
Participant an amount which does not exceed the amount required to meet the
immediate financial needs created by the Financial Hardship and not reasonably
available from other sources of the Participant; provided, however, that in no
event shall any amount attributable to a Participation Agreement be distributed
less than six (6) months after the date of the applicable Participation
Agreement. No distributions pursuant to

 

 

this Section 7.6 may be made in excess
of the value of the Participant’s Account at the time of such distribution.

         Section 7.7 Special Distributions. Notwithstanding any other provision
of this Article VII, a Participant, whether or not in pay status, may elect to
receive a distribution of part or all of his Account in one or more
distributions if (and only if) the amount in the Participant’s Account subject
to such distribution is reduced by ten percent (10%). Any distribution made
pursuant to such an election shall be made as soon as practicable following the
date such election is submitted to the Administrator. The remaining ten
percent (10%) of the portion of the electing Participant’s Account subject to
such distribution shall be forfeited.

         Section 7.8 Small Benefit. In the event the Committee determines that
the balance of the Participant’s Account is less than $10,000 at the time of
commencement of payments, the Company may pay the benefit in the form of a lump
sum payment, notwithstanding any provision of the Plan to the contrary. Such
lump sum payment shall be equal to the balance of the Participant’s Account, or
the portion thereof payable to a Beneficiary.

ARTICLE VIII. BENEFICIARY DESIGNATION

         Section 8.1. Beneficiary Designation.

         (a)  As used in the Plan the term “Beneficiary” means:

		
	 	          (i) The person last designated as Beneficiary by the Participant in
a writing on a form prescribed by the Administrator;
	 
	 	          (ii) If there is no designated Beneficiary or if the person so
designated shall not survive the Participant, such Participant’s spouse;
or
	 
	 	          (iii) If no such designated Beneficiary and no such spouse is living
upon the death of a Participant, or if all such persons die prior to the
full distribution of the Participant’s Account balance, then the legal
representative of the last survivor of the Participant and such persons,
or, if the Administrator shall not receive notice of the appointment of
any such legal representative within one (1) year after such death, the
heirs-at-law of such survivor shall be the Beneficiaries to whom the then
remaining balance of the Participant’s
Account shall be distributed (in the proportions in which they would
inherit his intestate personal property).

         (b)  Any Beneficiary designation may be changed from time to time by the
filing of written notice filed with the Administrator. No notice given under
this Section shall be effective unless and until the Administrator actually
receives such notice.

         Section 8.2. Facility of Payment. Whenever and as often as any
Participant or his Beneficiary entitled to payments hereunder shall be under a
legal Disability or, in the sole judgment of the Administrator, shall otherwise
be unable to apply such payments to his own best interests and advantage, the
Administrator in the exercise of its discretion may direct all or any portion
of such payments to be made in any one or more of the following ways: (i)
directly to him; (ii) to his legal guardian or conservator; or (iii) to his
spouse or to any other person, to be expended

 

 

for his benefit; and the decision
of the Administrator, shall in each case be final and binding upon all persons
in interest.

         Section 8.3. Amendments. Any Beneficiary designation may be changed by
a Participant by the filing of a new Beneficiary designation, which will cancel
all Beneficiary designations previously filed.

ARTICLE IX. ADMINISTRATION

         Section 9.1. Administration.

         (a)  The Plan shall be administered by the Administrator. The
Administrator shall have total and exclusive responsibility to control,
operate, manage and administer the Plan in accordance with its terms.

         (b)  The Administrator shall have sole and absolute discretion to interpret
the provisions of the Plan (including, without limitation, by supplying
omissions from, correcting deficiencies in, or resolving inconsistencies or
ambiguities in, the language of the Plan), to make factual findings with
respect to any issue arising under the Plan, to determine the rights and status
under the Plan of Participants and other persons, to decide disputes arising
under the Plan and to make any determinations and findings (including factual
findings) with respect to the benefits payable thereunder and the persons
entitled thereto as may be required for the purposes of the Plan. In
furtherance of, but without limiting the foregoing, the Administrator is hereby
granted the following specific authorities, which it shall discharge in its
sole and absolute discretion in accordance with the terms of the Plan (as
interpreted, to the extent necessary, by the Administrator):

		
	 	          (i) To determine the amount of benefits, if any, payable to any
person under the Plan (including, to the extent necessary, making any
factual findings with respect thereto); and
	 
	 	          (ii) To conduct the claims procedures specified in Section 9.6.

	 	 	All decisions of the Administrator as to the facts of any case, as to the
interpretation of any provision of the Plan or its application to any
case, and as to any other interpretative matter or other
determination or question under the Plan shall be final and binding on
all parties affected thereby, subject to the provisions of Section 9.6.

         (c)  The Administrator may, from time to time, employ agents and delegate
to them such administrative duties as it sees fit, and may from time to time
consult with legal counsel who may be counsel to the Company.

         Section 9.2. Plan Administrator. The Company shall be the
“administrator” under the Plan for purposes of ERISA.

         Section 9.3. Binding Effect of Decisions. All decisions and
determinations by the Administrator shall be final and binding on all parties.
All decisions of the Administrator shall be made by the vote of the majority,
including actions in writing taken without a meeting. All elections, notices
and directions under the Plan by a Participant shall be made on such forms as
the Administrator shall prescribe.

         Section 9.4. Successors. The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation, reorganization
or otherwise) to all or substantially all of the business and/or assets of the
Company expressly to assume and to agree to perform this

 

 

Plan in the same
manner and to the same extent the Company would be required to perform if no
such succession had taken place. This Plan shall be binding upon and inure to
the benefit of the Company and any successor of or to the Company, including
without limitation any persons acquiring directly or indirectly all or
substantially all of the business and/or assets of the Company whether by sale,
merger, consolidation, reorganization or otherwise (and such successor shall
thereafter be deemed the “Company” for the purposes of this Plan), and the
heirs, Beneficiaries, executors and administrators of each Participant.

         Section 9.5. Indemnity of Committee and Administrator. The Company
shall indemnify and hold harmless the members of the Committee and the Administrator
and their duly appointed agents against any and all claims, loss, damage,
expense or liability arising from any action or failure to act with respect to
the Plan, except in the case of gross negligence or willful misconduct by any
such member or agent of the Committee and the Administrator.

         Section 9.6. Claims Procedure.

         (a) 
the Participant or his designated beneficiary (the “Claimant”) may
file a written claim for payments under this Plan with the Administrator.
Except under special circumstances, such claims shall be approved or denied
within ninety (90) days. Any denial of such claim shall be by written notice
from the Administrator stating:

		
	 	          (i) the specific reason for the denial;
	 
	 	          (ii) the specific provisions of the Plan or related agreements on
which the denial is based;
	 
	 	          (iii) a description of any additional material or
information necessary for the Claimant to perfect the claim, along with
an explanation as to why such material or information is necessary; and
	 
	 	          (iv) information as to how the Claimant may submit the claim to the
Administrator for review.

         (b)  The Claimant, within ninety (90) days of such notice, may file with
the Administrator a written request for a review of the denial. Except under
special circumstances, the Administrator’s decision on review shall be made
within sixty (60) days of the request. Such decision shall be by a written
notice stating the reasons for the decision, and such decision shall be final.

         Section 9.7. Expenses. All direct expenses of the Plan shall be paid
by the Company.

ARTICLE X AMENDMENT AND TERMINATION OF PLAN

         Section 10.1. Amendment. The Company may at any time amend, suspend or
reinstate any or all of the provisions of the Plan, except that no such
amendment, suspension or reinstatement may adversely affect any Participant’s
Account, as it existed as of the effective date of such amendment, suspension
or reinstatement, without such Participant’s prior written consent. Written
notice of any amendment or other action with respect to the Plan shall be given
to each Participant.

         Section 10.2. Termination. The Company, in its sole discretion, may
terminate this Plan at any time and for any reason whatsoever. Upon

 

 

termination of the Plan, the Administrator shall take those actions necessary
to administer any Accounts existing prior to the effective date of such
termination; provided, however, that a termination of the Plan shall not
adversely affect the value of a Participant’s Account, the earnings credited to
a Participant’s Account under Section 5.5(b) or the timing or method of
distribution of a Participant’s Account without the Participation’s prior
written consent.

ARTICLE XI. MISCELLANEOUS

         Section 11.1. No Guarantee of Employment. Nothing contained in the
Plan
shall be construed as a contract of employment between the Company and any
Employee, or as a right of any Employee, to be continued in the employment of
the Company, or as a limitation of the right of the Company to discharge any of
its Employees, with or without Cause.

         Section 11.2. Governing Law. All questions arising in respect of the
Plan, including those pertaining to its validity, interpretation and
administration, shall be governed, controlled and determined in accordance with
the applicable provisions of federal law and, to the extent not preempted by
federal law, the laws of the State of Ohio.

         Section 11.3. Nonassignability.

         (a)  No right or interest under the Plan of a Participant or his or her
Beneficiary (or any person claiming through or under any of them), other than
the surviving spouse of any deceased Participant, shall be assignable or
transferable in any manner or be subject to alienation, anticipation, sale,
pledge, encumbrance or other legal process or in any manner be liable for or
subject to the debts or liabilities of any such Participant or Beneficiary.
If any Participant or Beneficiary (other than the surviving spouse of any
deceased Participant) shall attempt to or shall transfer, assign, alienate,
anticipate, sell, pledge or otherwise encumber his or her benefits hereunder or
any part thereof, or if by reason of his or her bankruptcy or other event
happening at any time such benefits would devolve upon anyone else or would not
be enjoyed by him or her, then the Committee, in its discretion, may terminate
his or her interest in any such benefit to the extent the Committee considers
necessary or advisable to prevent or limit the effects of such occurrence.
Termination shall be effected by filing a written “termination declaration”
with the General Counsel of the Company and making reasonable efforts to
deliver a copy to the Participant or Beneficiary whose interest is adversely
affected (the “Terminated Participant”).

         (b)  As long as the Terminated Participant is alive, any benefits affected
by the termination shall be retained by the Company and, in the Committee’s
sole and absolute judgment, may be paid to or expended for the benefit of the
Terminated Participant, his or her spouse, his or her children or any other
person or persons in fact dependent upon him or her in such a manner as the
Committee shall deem proper. Upon the death of the Terminated Participant, all
benefits withheld from him or her and not paid to others in accordance with the
preceding sentence shall be disposed of according to the provisions of the Plan
that would apply if he or she died prior to the time that all benefits to which
he or she was entitled were paid to him or her.

         Section 11.4. Severability. Each section, subsection and lesser
section of this Plan constitutes a separate and distinct undertaking, covenant
and/or provision hereof. Whenever possible, each provision of this Plan shall
be interpreted in such manner as to be effective and valid under applicable
law. In the event that any provision of this Plan shall finally

 

 

be determined
to be unlawful, such provision shall be deemed severed from this Plan, but
every other provision of this Plan shall remain in full force and effect, and
in substitution for any such provision held unlawful, there shall be
substituted a provision of similar import reflecting the original intention of
the parties hereto to the extent permissible under law.

         Section 11.5. Withholding Taxes. If the Company is required to
withhold any taxes or other amounts from a Participant’s Account pursuant to
any state, federal or local law, such amounts shall be withheld from the
amounts paid under the Plan.

         Section 11.6. Legal Fees, Expenses Following a Change in Control. It is
the intent of the Company that following a Change in Control no Employee or
former Employee be required to incur the expenses associated with the
enforcement of his or her rights under this Plan by litigation or other legal
action because the cost and expense thereof would substantially detract from
the benefits intended to be extended to an Employee hereunder. Accordingly, if
following a Change in Control it should appear that the Company has failed to
comply with any of its obligations under this Plan or in the event that the
Company or any other person takes any action to declare this Plan void or
unenforceable, or institutes any litigation designed to deny, or to recover
from, the Employee the benefits intended to be provided to such Employee
hereunder, the Company irrevocably authorizes such Employee from time to time
to retain counsel of his or her choice, at the expense of the Company, as
hereafter provided, to represent such Employee in connection with the
initiation or defense of any litigation or other legal action, whether by or
against the Company or any director, officer, stockholder or other person
affiliated with the Company in any jurisdiction. Notwithstanding any existing
or prior attorney-client relationship between the Company and such counsel, the
Company irrevocably consents to such Employee’s entering into an
attorney-client relationship with such counsel,
and in that connection the Company and such Employee agree that a
confidential relationship shall exist between such Employee and such counsel.
Following a Change in Control, the Company shall pay and be solely responsible
for any and all attorneys’ and related fees and expenses incurred by such
Employee as a result of the Company’s failure to perform under this Plan or any
provision thereof; or as a result of the Company or any person contesting the
validity or enforceability of this Plan or any provision thereof.

         Section 11.7. Top-Hat Plan. The Plan is intended to be a plan which is
unfunded and maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees
within the meaning of Sections 201, 301 and 401 of ERISA, and therefore to be
exempt from the provisions of Parts 2, 3 and 4 of Title I of ERISA.
Accordingly, notwithstanding any other provision of the Plan, the Plan will
terminate and no further benefits will accrue hereunder in the event it is
determined by a court of competent jurisdiction or by an opinion of counsel
based upon a change in law that the Plan constitutes an employee pension
benefit plan within the meaning of Section 3(2) of ERISA, which is not so
exempt. In addition and notwithstanding any other provision of the Plan, in
the absolute discretion of the Committee, the amount credited to each
Participant’s Account under the Plan as of the date of termination, which shall
be an Accounting Date for purposes of the Plan, will be paid immediately to
such Participant in a single lump sum cash payment. Such payment shall
completely discharge the Company’s obligations under this Plan.

         Section 11.8. Relationship to Other Plans. This Plan is intended to
serve the purposes of and to be consistent with the Incentive Compensation
Plans and any similar plan approved by the Committee for purposes of this Plan.
The issuance or transfer of Common Shares pursuant to this Plan shall be
subject in all respects to the terms and conditions of the Incentive
Compensation Plans and any successor plan and any other such plan. Without

 

 

limiting the generality of the foregoing, Common Shares credited to the
Participants’ Common Shares Subaccount pursuant to this Plan shall take into
account the shares available for issuance under the Incentive Compensation
Plans and for purposes of the corresponding provisions of any other such plan.

IN WITNESS WHEREOF, Cooper Tire & Rubber Company has caused this instrument to
be executed in its name as of the Effective Date.

	 	 	 	 	 
	 	 	COOPER TIRE & RUBBER COMPANY
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:
	 	/s/ Philip G. Weaver
	 	 	 	 	

	 	 	
Its:
	 	Vice President & CFO
	 	 	 	 	

Attest:

     /s/ Richard N. Jacobson<PAGE>
                                                                 EXHIBIT 10.2.59
                              EMPLOYMENT AGREEMENT

     This Employment Agreement is made and entered into effective as of July 1,
2001 (the "Effective Date"), by and between NEOPROBE CORPORATION, a Delaware
Corporation with a place of business at 425 Metro Place North, Suite 300,
Dublin, Ohio 43017-1367 (the "Company") and DAVID C. BUPP of Dublin, Ohio (the
"Employee").

     WHEREAS, the Company and the Employee entered into an Employment Agreement
dated as of January 1, 1996 (the "1996 Employment Agreement"); and

     WHEREAS, the Company and the Employee entered into an Employment Agreement
dated as of January 1, 1998 (the "1998 Employment Agreement"); and

     WHEREAS, the Company and the Employee entered into an Employment Agreement
dated as of July 1, 1999 (the "1999 Employment Agreement"); and

     WHEREAS, the Company and the Employee entered into an Employment Agreement
dated as of July 1, 2000 (the "2000 Employment Agreement"); and

     WHEREAS, the Company and the Employee wish to establish new terms,
covenants, and conditions for the Employee's continued employment with the
Company through this agreement ("Employment Agreement").

     NOW, THEREFORE, in consideration of the mutual agreements herein set forth,
the parties hereto agree as follows:

     1.  DUTIES. From and after the Effective Date, and based upon the terms and
         conditions set forth herein, the Company agrees to employ the Employee
         and the Employee agrees to be employed by the Company, as President and
         Chief Executive Officer of the Company and in such equivalent,
         additional or higher executive level position or positions as shall be
         assigned to him by the Company's Board of Directors. While serving in
         such executive level position or positions, the Employee shall report
         to, be responsible to, and shall take direction from the Board of
         Directors of the Company. The Board of Directors shall not require the
         Employee to perform any task that is inconsistent with the office of
         President or the position of Chief Executive Officer. During the Term
         of this Employment Agreement (as defined in Section 2 below), the
         Employee agrees to devote substantially all of his working time to the
         position he holds with the Company and to faithfully, industriously,
         and to the best of his ability, experience and talent, perform the
         duties which are assigned to him. The Employee shall observe and abide
         by the reasonable corporate policies and decisions of the Company in
         all business matters.

         The Employee represents and warrants to the Company that Exhibit A
         attached hereto sets forth a true and complete list of (a) all offices,
         directorships and other positions held by the Employee in corporations
         and firms other than the Company and its subsidiaries and (b) any
         investment or ownership interest in any corporation or firm other than
         the Company beneficially owned by the Employee (excluding investments
         in life insurance policies, bank deposits, publicly traded securities
         that are less than five percent (5%) of their class and real estate).
         The Employee will promptly notify the Board of Directors of the Company
         of any additional positions undertaken or investments made by the
         Employee during the Term of this Employment Agreement if they are of a
         type which, if they had existed on the date hereof, should have been
         listed on Exhibit A hereto. As long as the Employee's other positions
         or investments in other firms do not create a conflict of interest,
         violate the Employee's obligations under Section 7 below or cause the
         Employee to neglect his duties hereunder, such activities and positions
         shall not be deemed to be a breach of this Employment Agreement.
<PAGE>
     2.   TERM OF THIS EMPLOYMENT AGREEMENT. Subject to Sections 4 and 5 hereof,
          the Term of this Employment Agreement shall be for a period of
          thirty-six (36) months, commencing July 1, 2001 and terminating June
          30, 2004.

     3.   COMPENSATION. During the Term of this Employment Agreement, the
          Company shall pay, and the Employee agrees to accept as full
          consideration for the services to be rendered by the Employee
          hereunder, compensation consisting of the following:

          A.   SALARY. Beginning on the first day of the Term of this Employment
               Agreement, the Company shall pay the Employee a salary of Three
               Hundred Ten Thousand Dollars ($310,000) per year, payable in
               semi-monthly or monthly installments as requested by the
               Employee.

               Beginning on July 1, 2003, the Company shall pay the Employee a
               salary of Three Hundred Twenty-Five Thousand Dollars ($325,000)
               per year, payable in semi-monthly or monthly installments as
               requested by the Employee.

          B.   BONUS. The Compensation Committee of the Board of Directors will,
               on an annual basis, review the performance of the Company and of
               the Employee and will pay such bonus as it deems appropriate, in
               its discretion, to the Employee based upon such review. Such
               review and bonus shall be consistent with any bonus plan adopted
               by the Compensation Committee, which covers the executive
               officers and employees of the Company generally.

          C.   BENEFITS. During the Term of this Employment Agreement, the
               Employee will receive such employee benefits as are generally
               available to all employees of the Company.

          D.   STOCK OPTIONS. The Compensation Committee of the Board of
               Directors may, from time-to-time, grant stock options, restricted
               stock purchase opportunities and such other forms of stock-based
               incentive compensation as it deems appropriate, in its
               discretion, to the Employee under the Company's Stock Option and
               Restricted Stock Purchase Plan and the 1996 Stock Incentive Plan
               (the "Stock Plans"). The terms of the relevant award agreements
               shall govern the rights of the Employee and the Company
               thereunder in the event of any conflict between such agreement
               and this Employment Agreement.

          E.   VACATION. The Employee shall be entitled to twenty-five (25) days
               of vacation during each calendar year during the Term of this
               Employment Agreement.

          F.   EXPENSES. The Company shall reimburse the Employee for all
               reasonable out-of-pocket expenses incurred by him in the
               performance of his duties hereunder, including expenses for
               travel, entertainment and similar items, promptly after the
               presentation by the Employee, from time-to-time, of an itemized
               account of such expenses.

     4.   TERMINATION.

          A.   FOR CAUSE. The Company may terminate the employment of the
               Employee prior to the end of the Term of this Employment
               Agreement "for cause." Termination "for cause" shall be defined
               as a termination by the Company of the employment of the Employee
               occasioned by the failure by the Employee to cure a willful
               breach of a material duty imposed on the Employee under this
               Employment Agreement within 15 days after written notice thereof
               by the Company or the continuation by the Employee after written
               notice by the Company of a willful and continued neglect of a
               duty imposed on the Employee under this Employment Agreement. In
               the event of termination by the Company "for cause," all salary,
               benefits and other payments shall cease at the time of
               termination, and the Company shall have no further obligations to
               the Employee.

          B.   RESIGNATION. If the Employee resigns for any reason, all salary,
               benefits and other payments (except as otherwise provided in
               paragraph G of this Section 4 below) shall cease at the time such
               resignation becomes effective. At the time

                                      -2-
<PAGE>
               of any such resignation, the Company shall pay the Employee the
               value of any accrued but unused vacation time, and the amount of
               all accrued but previously unpaid base salary through the date of
               such termination. The Company shall promptly reimburse the
               Employee for the amount of any expenses incurred prior to such
               termination by the Employee as required under paragraph F of
               Section 3 above.

          C.   DISABILITY, DEATH. The Company may terminate the employment of
               the Employee prior to the end of the Term of this Employment
               Agreement if the Employee has been unable to perform his duties
               hereunder for a continuous period of six (6) months due to a
               physical or mental condition that, in the opinion of a licensed
               physician, will be of indefinite duration or is without a
               reasonable probability of recovery. The Employee agrees to submit
               to an examination by a licensed physician of his choice in order
               to obtain such opinion, at the request of the Company, made after
               the Employee has been absent from his place of employment for at
               least six (6) months. Such examination shall be paid for by the
               Company. However, this provision does not abrogate either the
               Company's or the Employee's rights and obligations pursuant to
               the Family and Medical Leave Act of 1993, and a termination of
               employment under this paragraph C shall not be deemed to be a
               termination for cause.

               If during the Term of this Employment Agreement, the Employee
               dies or his employment is terminated because of his disability,
               all salary, benefits and other payments shall cease at the time
               of death or disability, provided, however, that the Company shall
               provide such health, dental and similar insurance or benefits as
               were provided to Employee immediately before his termination by
               reason of death or disability, to Employee or his family for the
               longer of twelve (12) months after such termination or the full
               unexpired Term of this Employment Agreement on the same terms and
               conditions (including cost) as were applicable before such
               termination. In addition, for the first six (6) months of
               disability, the Company shall pay to the Employee the difference,
               if any, between any cash benefits received by the Employee from a
               Company-sponsored disability insurance policy and the Employee's
               salary hereunder. At the time of any such termination, the
               Company shall pay the Employee, the value of any accrued but
               unused vacation time, and the amount of all accrued but
               previously unpaid base salary through the date of such
               termination. The Company shall promptly reimburse the Employee
               for the amount of any expenses incurred prior to such termination
               by the Employee as required under paragraph F of Section 3 above.

          D.   TERMINATION WITHOUT CAUSE. A termination without cause is a
               termination of the employment of the Employee by the Company that
               is not "for cause" and not occasioned by the resignation, death
               or disability of the Employee. If the Company terminates the
               employment of the Employee without cause, (whether before the end
               of the Term of this Employment Agreement or, if the Employee is
               employed by the Company under paragraph E of this Section 4
               below, after the Term of this Employment Agreement has ended) the
               Company shall, at the time of such termination, pay to the
               Employee the severance payment provided in paragraph F of this
               Section 4 below together with the value of any accrued but unused
               vacation time and the amount of all accrued but previously unpaid
               base salary through the date of such termination and shall
               provide him with all of his benefits under paragraph C of Section
               3 above for the longer of twenty-four (24) months or the full
               unexpired Term of this Employment Agreement. The Company shall
               promptly reimburse the Employee for the amount of any expenses
               incurred prior to such termination by the Employee as required
               under paragraph F of Section 3 above.

               If the Company terminates the employment of the Employee because
               it has ceased to do business or substantially completed the
               liquidation of its assets or because it has relocated to another
               city and the Employee has decided not to relocate also, such
               termination of employment shall be deemed to be without cause.

          E.   END OF THE TERM OF THIS EMPLOYMENT AGREEMENT. Except as otherwise
               provided in paragraphs F and G of this Section 4 below, the
               Company may terminate the employment of

                                      -3-
<PAGE>
               the Employee at the end of the Term of this Employment Agreement
               without any liability on the part of the Company to the Employee
               but, if the Employee continues to be an employee of the Company
               after the Term of this Employment Agreement ends, his employment
               shall be governed by the terms and conditions of this Agreement,
               but he shall be an employee at will and his employment may be
               terminated at any time by either the Company or the Employee
               without notice and for any reason not prohibited by law or no
               reason at all. If the Company terminates the employment of the
               Employee at the end of the Term of this Employment Agreement, the
               Company shall, at the time of such termination, pay to the
               Employee the severance payment provided in paragraph F of this
               Section 4 below together with the value of any accrued but unused
               vacation time and the amount of all accrued but previously unpaid
               base salary through the date of such termination. The Company
               shall promptly reimburse the Employee for the amount of any
               reasonable expenses incurred prior to such termination by the
               Employee as required under paragraph F of Section 3 above.

          F.   SEVERANCE. If the employment of the Employee is terminated by the
               Company, at the end of the Term of this Employment Agreement or,
               without cause (whether before the end of the Term of this
               Employment Agreement or, if the Employee is employed by the
               Company under paragraph E of this Section 4 above, after the Term
               of this Employment Agreement has ended), the Employee shall be
               paid, as a severance payment at the time of such termination, the
               amount of Four Hundred Six Thousand Two Hundred Fifty Dollars
               ($406,250) together with the value of any accrued but unused
               vacation time. If any such termination occurs at or after the
               substantial completion of the liquidation of the assets of the
               Company, the severance payment shall be increased by adding
               Eighty-One Thousand Two Hundred Fifty Dollars ($81,250) to such
               amount.

          G.   CHANGE OF CONTROL SEVERANCE. In addition to the rights of the
               Employee under the Company's employee benefit plans (paragraphs C
               of Section 3 above) but in lieu of any severance payment under
               paragraph F of this Section 4 above, if there is a Change in
               Control of the Company (as defined below) and the employment of
               the Employee is concurrently or subsequently terminated (a) by
               the Company without cause, (b) by the expiration of the Term of
               this Employment Agreement, or (c) by the resignation of the
               Employee because he has reasonably determined in good faith that
               his titles, authorities, responsibilities, salary, bonus
               opportunities or benefits have been materially diminished, that a
               material adverse change in his working conditions has occurred,
               that his services are no longer required in light of the
               Company's business plan, or the Company has breached this
               Employment Agreement, the Company shall pay the Employee, as a
               severance payment, at the time of such termination, the amount of
               Six Hundred Fifty Thousand Dollars ($650,000) together with the
               value of any accrued but unused vacation time, and the amount of
               all accrued but previously unpaid base salary through the date of
               termination and shall provide him with all of this benefits under
               paragraph C of Section 3 above for the longer of six (6) months
               or the full unexpired Term of this Employment Agreement. If any
               such termination occurs at or after the substantial completion of
               the liquidation of the assets of the Company, the severance
               payment shall be increased by adding Eighty-One Thousand Two
               Hundred Fifty Dollars ($81,250) to such amount. The Company shall
               promptly reimburse the Employee for the amount of any expenses
               incurred prior to such termination by the Employee as required
               under paragraph F of Section 3 above.

               For the purpose of this Employment Agreement, a Change in Control
               of the Company has occurred when: (a) any person (defined for the
               purposes of this paragraph G to mean any person within the
               meaning of Section 13 (d) of the Securities Exchange Act of 1934
               (the "Exchange Act")), other than Neoprobe or an employee benefit
               plan created by its Board of Directors for the benefit of its
               employees, either directly or indirectly, acquires beneficial
               ownership (determined under Rule 13d-3 of the Regulations
               promulgated by the Securities and Exchange Commission under
               Section 13(d) of the Exchange Act) of securities issued by
               Neoprobe having fifteen percent (15%) or more of the voting power
               of all the voting securities issued by Neoprobe in the election
               of Directors at the next meeting of the holders of voting

                                      -4-
<PAGE>
               securities to be held for such purpose; (b) a majority of the
               Directors elected at any meeting of the holders of voting
               securities of Neoprobe are persons who were not nominated for
               such election by the Board of Directors or a duly constituted
               committee of the Board of Directors having authority in such
               matters; (c) the stockholders of Neoprobe approve a merger or
               consolidation of Neoprobe with another person other than a merger
               or consolidation in which the holders of Neoprobe's voting
               securities issued and outstanding immediately before such merger
               or consolidation continue to hold voting securities in the
               surviving or resulting corporation (in the same relative
               proportions to each other as existed before such event)
               comprising eighty percent (80%) or more of the voting power for
               all purposes of the surviving or resulting corporation; or (d)
               the stockholders of Neoprobe approve a transfer of substantially
               all of the assets of Neoprobe to another person other than a
               transfer to a transferee, eighty percent (80%) or more of the
               voting power of which is owned or controlled by Neoprobe or by
               the holders of Neoprobe's voting securities issued and
               outstanding immediately before such transfer in the same relative
               proportions to each other as existed before such event. The
               parties hereto agree that for the purpose of determining the time
               when a Change of Control has occurred that if any transaction
               results from a definite proposal that was made before the end of
               the Term of this Employment Agreement but which continued until
               after the end of the Term of this Employment Agreement and such
               transaction is consummated after the end of the Term of this
               Employment Agreement, such transaction shall be deemed to have
               occurred when the definite proposal was made for the purposes of
               the first sentence of this paragraph G of this Section 4.

          H.   BENEFIT AND STOCK PLANS. In the event that a benefit plan or
               Stock Plan which covers the Employee has specific provisions
               concerning termination of employment, or the death or disability
               of an employee (e.g., life insurance or disability insurance),
               then such benefit plan or Stock Plan shall control the
               disposition of the benefits or stock options.

     5.   PROPRIETARY INFORMATION AGREEMENT. Employee has executed a Proprietary
          Information Agreement as a condition of employment with the Company.
          The Proprietary Information Agreement shall not be limited by this
          Employment Agreement in any manner, and the Employee shall act in
          accordance with the provisions of the Proprietary Information
          Agreement at all times during the Term of this Employment Agreement.

     6.   NON-COMPETITION. Employee agrees that for so long as he is employed by
          the Company under this Employment Agreement and for one (1) year
          thereafter, the Employee will not:

          A.   enter into the employ of or render any services to any person,
               firm, or corporation, which is engaged, in any part, in a
               Competitive Business (as defined below);

          B.   engage in any directly Competitive Business for his own account;

          C.   become associated with or interested in through retention or by
               employment any Competitive Business as an individual, partner,
               shareholder, creditor, director, officer, principal, agent,
               employee, trustee, consultant, advisor, or in any other
               relationship or capacity; or

          D.   solicit, interfere with, or endeavor to entice away from the
               Company, any of its customers, strategic partners, or sources of
               supply.

          Nothing in this Employment Agreement shall preclude Employee from
          taking employment in the banking or related financial services
          industries nor from investing his personal assets in the securities or
          any Competitive Business if such securities are traded on a national
          stock exchange or in the over-the-counter market and if such
          investment does not result in his beneficially owning, at any time,
          more than one percent (1%) of the publicly-traded equity securities of
          such Competitive Business. "Competitive Business" for purposes of this
          Employment Agreement shall mean any business or enterprise which:

                                      -5-
<PAGE>
          a.   is engaged in the development and/or commercialization of
               products and/or systems for use in intraoperative detection of
               cancer, or

          b.   reasonably understood to be competitive in the relevant market
               with products and/or systems described in clause a above, or

          c.   the Company engages in during the Term of this Employment
               Agreement pursuant to a determination of the Board of Directors
               and from which the Company derives a material amount of revenue
               or in which the Company has made a material capital investment.

          The covenant set forth in this Section 6 shall terminate immediately
          upon the substantial completion of the liquidation of assets of the
          Company or the termination of the employment of the Employee by the
          Company without cause or at the end of the Term of this Employment
          Agreement.

     7.   ARBITRATION. Any dispute or controversy arising under or in connection
          with this Employment Agreement shall be settled exclusively by
          arbitration in Columbus, Ohio, in accordance with the non-union
          employment arbitration rules of the American Arbitration Association
          ("AAA") then in effect. If specific non-union employment dispute rules
          are not in effect, then AAA commercial arbitration rules shall govern
          the dispute. If the amount claimed exceeds $100,000, the arbitration
          shall be before a panel of three arbitrators. Judgment may be entered
          on the arbitrator's award in any court having jurisdiction. The
          Company shall indemnify the Employee against and hold him harmless
          from any attorney's fees, court costs and other expenses incurred by
          the Employee in connection with the preparation, commencement,
          prosecution, defense, or enforcement of any arbitration, award,
          confirmation or judgment in order to assert or defend any right or
          obtain any payment under paragraph C of Section 4 above or under this
          sentence; without regard to the success of the Employee or his
          attorney in any such arbitration or proceeding.

     8.   GOVERNING LAW. The Employment Agreement shall be governed by and
          construed in accordance with the laws of the State of Ohio.

     9.   VALIDITY. The invalidity or unenforceability of any provision or
          provisions of this Employment Agreement shall not affect the validity
          or enforceability of any other provision of the Employment Agreement,
          which shall remain in full force and effect.

     10.  ENTIRE AGREEMENT.

          A.   The 2000 Employment Agreement is terminated as of the effective
               date of this Employment Agreement, except that awards under the
               Stock Plans granted to the Employee in the 2000 Employment
               Agreement or in any previous employment agreement or by the
               Compensation Committee remain in full force and effect, and
               survive the termination of the 1999 Employment Agreement and
               except that the bonus opportunities granted to the Employee in
               paragraph 3 of the letter agreement dated February 16, 1995
               remain in full force and effect, and survive the termination of
               the 2000 Employment Agreement.

          B.   This Employment Agreement constitutes the entire understanding
               between the parties with respect to the subject matter hereof,
               superseding all negotiations, prior discussions, and preliminary
               agreements. This Employment Agreement may not be amended except
               in writing executed by the parties hereto.

     11.  EFFECT ON SUCCESSORS OF INTEREST. This Employment Agreement shall
          inure to the benefit of and be binding upon heirs, administrators,
          executors, successors and assigns of each of the parties hereto.
          Notwithstanding the above, the Employee recognizes and agrees that his
          obligation under this Employment Agreement may not be assigned without
          the consent of the Company.

                                      -6-
<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Employment Agreement as of the date first written above.

NEOPROBE CORPORATION                                          EMPLOYEE

By:  /s/ Michael Moore                                        /s/ David Bupp
   ------------------------------                           -------------------
     Michael P. Moore, Chairman                               David C. Bupp
     Compensation Committee

                                      -7-
<PAGE>
                                    EXHIBIT A

         Non-salaried consultant to NuRigs, Ltd.

                                      -8-

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