Document:

Exhibit 10.1

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

This SECOND AMENDMENT TO EMPLOYMENT AGREEMENT (this “Second Amendment”) is made and entered into as of April 21, 2017, by and among United Continental Holdings, Inc., a Delaware corporation (the “Company”), United Airlines, Inc., a Delaware corporation (“United”) (the Company and United are hereinafter collectively referred to as the “Employers”), and Oscar Munoz (“Executive”).

 

WHEREAS, the Employers and Executive entered into an Employment Agreement, dated December 31, 2015, as amended by the Amendment to Employment Agreement, dated as of April 19, 2016 (the “Employment Agreement”);

 

WHEREAS, the Employment Agreement provides that it is the expectation of the Company that Executive shall be appointed Chairman of the Company’s Board of Directors (the “Board”) on the date of the Company’s 2018 annual meeting of stockholders; and

 

WHEREAS, Executive desires to remove the provisions in the Employment Agreement related to the future appointment of Executive as Chairman of the Board, and to leave future determinations related to the Chairman position to the discretion of the Board, and the Board is willing to agree to such change.

 

NOW, THEREFORE, in consideration of the sum of one dollar ($1.00) and the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.              Amendments.

 

(a)         The third sentence of Section 2 of the Employment Agreement is hereby deleted in its entirety.

 

(b)         Clause (iv) of the definition of “Good Reason” contained in Section 4(e) of the Employment Agreement is hereby deleted in its entirety and clauses (v) and (vi) are renumbered accordingly.

 

2.              Effective Date.  This Second Amendment is effective as of the date first set forth above.

 

3.              Governing Law.  This Second Amendment shall be governed by the internal laws (as opposed to the conflicts of law provisions) of the State of Illinois.

 

4.              Effect of Amendment.  Except as modified hereby, the Employment Agreement is reaffirmed in all respects, and all references therein to “the Agreement” shall mean the Employment Agreement, as modified hereby.

 

5.              Execution in Counterparts.  This Second Amendment may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall

 

 

constitute one and the same instrument.  Signatures delivered via facsimile or electronic file shall be the same as original signatures.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the date first set forth above.

 

 

	
 
    	
UNITED   CONTINENTAL HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
/s/   Brett J. Hart
    
	
 
    	
By:   Brett J. Hart
    
	
 
    	
Its:   Executive Vice President and General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
UNITED   AIRLINES, INC.
    
	
 
    	
 
    
	
 
    	
/s/   Brett J. Hart
    
	
 
    	
By:   Brett J. Hart
    
	
 
    	
Its:   Executive Vice President and General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OSCAR   MUNOZ
    
	
 
    	
 
    
	
 
    	
/s/   Oscar Munoz
    
	
 
    	
By:   Oscar MunozExhibit

EXHIBIT 10.1

THE SHERWIN-WILLIAMS COMPANY 2005
DIRECTOR DEFERRED FEE PLAN
(Amended and Restated Effective as of April 18, 2017)

		
	1.
	PURPOSE.  The purpose of The Sherwin-Williams Company 2005 Director Deferred Fee Plan (the "Plan") is to provide non-employee Directors of the Company with the opportunity to defer taxation of all or a portion of such Director's Board Retainer and/or Meeting Fees and to help build loyalty to the Company through increased opportunity to invest in Company Common Stock.  The terms of this Plan, amended and restated as set forth herein, apply to amounts deferred under this Plan after April 17, 2017.  

Notwithstanding anything to the contrary contained herein, amounts deferred under this Plan on or before April 17, 2017 shall be governed by the terms of this Plan effective at the time of deferral, provided that, all amounts that were deferred and vested under this Plan prior to January 1, 2005 and any additional amounts that are not subject to Section 409A of the Code shall continue to be subject solely to the terms of the separate Plan in effect on October 3, 2004.

		
	2.
	DEFINITIONS.  The following terms when used herein with initial capital letters shall have the following respective meanings unless the text clearly indicates otherwise:

		
	(a)
	Board of Directors.  "Board of Directors" means the Board of Directors of the Company.

		
	(b)
	Board Retainer.  "Board Retainer" means the compensation payable monthly to Directors.

		
	(c)
	Code.  "Code" means the Internal Revenue Code of 1986, as amended.

		
	(d)
	Committee.  “Committee” means the Compensation and Management Development Committee of the Board of Directors, or a sub-committee of that Committee.

		
	(e)
	Common Stock.  "Common Stock" means the common stock of the Company or any security into which such Common Stock may be changed by reason of:  (i) any stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (ii) any merger, consolidation, separation, reorganization or partial or complete liquidation, or (iii) any other corporate transaction or event having an effect similar to any of the foregoing.

		
	(f)
	Common Stock Account.  "Common Stock Account" means the bookkeeping account established and maintained under this Plan which is credited with Common Stock in accordance with Section 5(b).

		
	(g)
	Company.  "Company" means The Sherwin-Williams Company, an Ohio corporation or its successor(s) in interest.

		
	(h)
	Deferred Cash Account.  "Deferred Cash Account" means the bookkeeping account established and maintained under this Plan which is valued in accordance with Section 5(a).

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	(i)
	Deferred Compensation.  "Deferred Compensation" means the amount of the Board Retainer and/or Meeting Fee of the Participant deferred pursuant to this Plan.

		
	(j)
	Director.  "Director" means a member of the Board of Directors.

		
	(k)
	Eligible Director.  "Eligible Director" means a Director who is not an employee of the Company or a Subsidiary.

		
	(l)
	Fair Market Value.  "Fair Market Value" of Common Stock means the average between the highest and the lowest quoted selling price per share of the Company's Common Stock on the New York Stock Exchange or any successor exchange.

		
	(m)
	Fees.  "Fees" means the compensation payable to Directors for their services as a director, including the Board Retainer and Meeting Fee.

		
	(n)
	Meeting Fee.  "Meeting Fee" means the compensation payable at the time of a meeting to a Director for each meeting of the Board of Directors or committee of the Board of Directors that such Director attends and/or chairs.

		
	(o)
	Participant.  "Participant" means an Eligible Director who has elected to participate in this Plan.

		
	(p)
	Payment Date.  "Payment Date" means, with respect to the payment of any Deferred Compensation, the first Friday after the first business day of each calendar quarter.

		
	(q)
	Plan.  "Plan" means this plan set forth in this instrument, and known as "The Sherwin-Williams Company 2005 Director Deferred Fee Plan", amended and restated effective as of April 18, 2017.

		
	(r)
	Plan Year.  "Plan Year" means a calendar year.

		
	(s)
	Shadow Stock.  "Shadow Stock" means a unit of interest equivalent to a share of Common Stock that is paid in cash.

		
	(t)
	Shadow Stock Account.  "Shadow Stock Account" means the bookkeeping account established and maintained under this Plan credited with Shadow Stock in accordance with Section 5(c).

		
	(u)
	Subsidiary.  “Subsidiary” means a corporation, company or other entity (i) at least 50 percent of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture or unincorporated association), but at least 50 percent of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the Company.

		
	(v)
	Trust.  "Trust" means one or more trust funds established for the purpose of (i) providing a source from which to pay benefits under this Plan and (ii) purchasing and holding assets, including shares of Common Stock.  Any such trust funds shall be subject to the claims of the Company's creditors in the event of the Company's insolvency, though such trust funds may not necessarily hold sufficient assets to satisfy all of the benefits to be provided under this Plan.

		
	(w)
	Unforeseeable Emergency.  "Unforeseeable Emergency" means a severe financial hardship arising from (i) the illness or accident of the Participant, the Participant’s spouse, or the Participant’s dependent (as defined in Section 152(a) of the Code), 

    

2

(ii) loss of the Participant’s property due to casualty, or (iii) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  The determination of whether a Participant has incurred an Unforeseeable Emergency shall be made by the Committee, in its sole discretion, in accordance with Section 409A of the Code and Treasury Regulations thereunder.

		
	3.
	ELIGIBILITY.  An Eligible Director shall become a Participant upon completion of an Election (as defined in Section 4) or as otherwise provided in Section 4.

		
	4.
	ELECTION PROCEDURE.  An Eligible Director wishing to participate in this Plan must file a written notice on the Notice of Election form electing to defer payment for a Plan Year of all or a portion of his or her Fees as a Director ("Election").  Any such Election must be filed prior to the first day of the Plan Year in which the Director’s annual service period begins and shall be effective only with respect to Fees earned after the end of the Plan Year in which the Election is filed. If, however, the Election is with respect to the first year a Director is eligible to participate in this Plan, the Committee may permit a Director to make the Election within 30 days after the date on which the Director is first eligible; provided, however, any such Election will only apply with respect to Fees earned after the effective date of the Election.  Any such Election will continue in effect until the Director modifies or terminates such Election effective as of the beginning of a subsequent Plan Year.  An effective Election may be terminated or modified for any subsequent Plan Year by filing either a new Notice of Election form to effect modifications, or a Notice of Termination form to effect terminations, on or before the December 31st immediately preceding the Plan Year for which such modification or termination is to become effective.  An Election shall not be effective until receipt of the fully and properly completed Notice of Election form by the Secretary of the Company.  A fully and properly completed Notice of Election form must indicate: (i) the percentage of Fees to be deferred; (ii) manner of payment upon distribution; (iii) payment commencement date; and (iv) deemed investment election.  Once effective for a Plan Year, an Election is irrevocable and may not be changed for that Plan Year.  No subsequent election may change the manner of payment, the payment commencement date or the deemed investment of the Fees previously deferred.  An Election shall apply to Fees payable with respect to each subsequent Plan Year, unless terminated or modified as described herein.  A person for whom an effective Election is terminated may thereafter file a new Notice of Election form, in the manner described above, for future Plan Years for which he or she is eligible to participate in this Plan.  

		
	5.
	INVESTMENT ACCOUNTS.  The amount of a Participant's Deferred Compensation pursuant to an Election shall be deemed credited to the investment options specified in this Section 5 in the manner elected by the Participant.  A Participant's election as to the investment options in which his or her Deferred Compensation for a Plan Year shall be deemed to be invested shall be irrevocable by the Participant with respect to Deferred Compensation and deemed earnings thereon, and Deferred Compensation and deemed earnings thereon cannot be transferred between investment accounts.  A Participant may elect to credit no less than twenty-five percent (25%) of his or her Deferred 

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Compensation for a Plan Year (the "Minimum Election") to any particular investment option.  Any amounts in excess of the Minimum Election shall be made in five percent (5%) increments.  If a Participant fails to direct the investment of any Deferred Compensation, all such Deferred Compensation will be credited to the Participant's Deferred Cash Account.  A Participant may elect to have his or her Deferred Compensation deemed to be invested in one or more of the following investment accounts:

		
	(a)
	DEFERRED CASH ACCOUNT.  Each Participant's Deferred Cash Account shall accrue interest computed using the Fidelity Government Money Market Fund.  The interest shall be computed on the actual balance in each Participant's Deferred Cash Account during the previous calendar quarter.

		
	(b)
	COMMON STOCK ACCOUNT.  The Participant's Common Stock Account shall be credited with that quantity of Common Stock equal to the number of full and fractional shares (to the nearest thousandths) which could have been purchased by the Trust with the portion of Deferred Compensation a Participant has elected to allocate to the Common Stock Account based on the Fair Market Value of such Common Stock on each Payment Date. There will be credited to each Participant's Common Stock Account amounts equal to the cash dividends, and other distributions, paid on shares of issued and outstanding Common Stock represented by the Participant's Common Stock Account which the Participant would have received had he or she been a record owner of shares of Common Stock equal to the amount of Common Stock in his or her Common Stock Account at the time of payment of such cash dividends or other distributions.  The Participant's Common Stock Account shall be credited with a quantity of shares of Common Stock and fractions thereof (to the nearest thousandths) that could have been purchased with the dividends or other distributions based on the Fair Market Value of Common Stock on the date of payment of such dividends or other distributions.

		
	(c)
	SHADOW STOCK ACCOUNT.  The Participant's Shadow Stock Account shall be credited with a quantity of Shadow Stock units and fractions thereof (to the nearest thousandths) equal to the value of Common Stock that could have been purchased with the portion of the Deferred Compensation credited to the Shadow Stock Account on each Payment Date based on the Fair Market Value of Common Stock on such Payment Date. There will be credited to each Participant's Shadow Stock Account amounts equal to the cash dividends, and other distributions, paid on shares of issued and outstanding Common Stock represented by the Participant's Shadow Stock Account which the Participant would have received had he or she been a record owner of a number of shares of Common Stock equal to the amount of Shadow Stock in his or her Shadow Stock Account at the time of payment of such cash dividends or other distributions.  The Participant's Shadow Stock Account shall be credited with a quantity of Shadow Stock units and fractions thereof (to the nearest thousandths) that could have been purchased with the dividends or other distributions based on the Fair Market Value of Common Stock on the date of payment of such dividends or other distributions.

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	6.
	DEPOSITS TO THE TRUST.  The Company shall deposit into the Trust the following cash amounts :  (i) all accrued interest on Participants' Deferred Cash Accounts and (ii) an amount equal to cash dividends and other distributions paid on shares of Common Stock represented by units of Shadow Stock and shares of Common Stock credited to Participants' Shadow Stock Accounts and Common Stock Accounts, respectively..  Notwithstanding the foregoing, the Trust shall not be funded if the funding thereof would result in taxable income to a Participant (i) due to the assets of the Trust being located or transferred outside of the United States; (ii) due to the assets of the Trust being restricted to the provision of benefits under this Plan in connection with a change in the Company's financial health; (iii) due to the assets being set aside, reserved or transferred to the Trust during any restricted period (as defined in Section 409A(b)(3)(B) of the Code); or (iv) as otherwise provided pursuant to Section 409A(b) of the Code.   

		
	7.
	PAYMENT OF DEFERRED COMPENSATION.  

		
	(a)
	Amount of Payment.  The benefit that a Participant will receive from the Company in accordance with this Plan shall be: (i) the number of full shares of Common Stock credited to the Participant's Common Stock Account; and (ii) cash equal to the sum of (I) the cash amount credited to the Participant's Deferred Cash Account; (II) the Fair Market Value, in cash, of the fractional shares (to the nearest thousandths) of Common Stock on the date such fractional shares were credited to the Participant's Common Stock Account; and (III) the cash value of the Shadow Stock units and fractions thereof (to the nearest thousandths) credited to the Participant's Shadow Stock Account.  The value of a Participant's Deferred Cash Account, fractional shares of Common Stock and Shadow Stock Account shall be determined by the Company on the last business day of the calendar quarter immediately preceding the calendar quarter in which a Participant is entitled to a distribution hereunder in accordance with Section 7(c) below.  Notwithstanding the preceding sentence to the contrary, in the event of a Change of Control or termination and liquidation of this Plan as provided in Sections 9 and 13, respectively, the value of a Participant's Deferred Cash Account, Shadow Stock Account and Common Stock Account shall be determined by the Company immediately following such an event.    

		
	(b)
	Manner of Payment.  A Participant's Deferred Compensation, as adjusted for deemed earnings or losses thereon, will be paid by the Company to him or her or, in the event of his or her death, to the Participant's beneficiary in a lump sum, unless the Participant makes a timely election in accordance with Section 4, to have the benefits paid in substantially equal annual cash installments over a period not exceeding ten (10) years. To the extent that benefits are payable in the form of annual installments pursuant to this Section 7(b), annual payments will be made commencing on the payment commencement date determined pursuant to Section 7(c) and shall continue on each anniversary thereof until the number of annual installments specified in the Participant's timely election has been paid.  The amount of each such installment payment shall be determined by dividing the sum of the balances of the Participant's Deferred Cash Account and Shadow 

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Stock Account, determined on the last business day of the calendar quarter preceding the first installment payment date, by the number of installment payments, without regard to anticipated earnings. Notwithstanding the foregoing, a Participant's Deferred Compensation invested in the Common Stock Account shall only be distributed to the Participant, in kind, in a lump sum.  Amounts credited to a Participant's Deferred Cash Account held pending distribution pursuant to this Section 7(b) shall continue to be credited with interest in accordance with the provisions of Section 5(a) above.
		
	(c)
	Payment Commencement Date. Payments of Deferred Compensation and earnings thereon shall commence within two (2) business days following the first business day of the first calendar quarter beginning after the earlier of the date the Participant elected to receive payment in accordance with Section 4 or the date the Participant ceases to be a Director.  Notwithstanding a Participant's manner of payment election hereunder, if a Participant ceases to be a Director as a result of the Participant's death, the Company shall pay to the Participant's beneficiary or beneficiaries a lump sum on the first business day of the first calendar quarter beginning after the Participant's death.

		
	(d)
	Unforeseeable Emergency.  In the event a Participant has elected to receive distribution from this Plan in the form of installment payments, the Committee may, nonetheless, upon request of the Participant, in its sole discretion, accelerate payment of all or any portion of the Participant's remaining account under this Plan, if the Committee determines that the Participant has experienced an Unforeseeable Emergency.  The amount of any such accelerated payment shall be limited to the amount necessary to alleviate the Unforeseeable Emergency.

		
	8.
	BENEFICIARIES.  A Participant may, by executing and delivering to the Secretary of the Company prior to the Participant's death a Beneficiary Election form, designate a beneficiary or beneficiaries to whom distribution of his or her interest under this Plan shall be made in the event of his or her death prior to the full receipt of his or her interest under this Plan, and he or she may designate the portions to be distributed to each such designated beneficiary if there is more than one.  Any such designation may be revoked or changed by the Participant at any time and from time to time by filing, prior to the Participant's death, with the Secretary of the Company an executed Beneficiary Election form.  If there is no such designated beneficiary living upon the death of the Participant, or if all such designated beneficiaries die prior to the full distribution of the Participant's interest, then any remaining unpaid amounts shall be paid to the estate of the Participant or Participant's beneficiaries.

		
	9.
	CHANGE OF CONTROL. In the event of a Change of Control, the amounts to which Participants are entitled under this Plan shall be immediately distributed in a lump sum cash payment to Participants within ninety (90) days following the date of such Change of Control.  For purposes of this Plan, a Change of Control shall be deemed to occur on the date of any of the following events:

		
	(a)
	any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange 

    

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Act”)) (a “Person”) is or becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of the combined voting power of the then-outstanding Voting Stock (as defined below) of the Company; provided, however, that: 
		
	(i) 
	the following acquisitions will not constitute a Change of Control: (1) any acquisition of Voting Stock directly from the Company that is approved by a majority of the Incumbent Directors (as defined below), (2) any acquisition of Voting Stock by the Company or any Subsidiary, (3) any acquisition of Voting Stock by the trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, and (4) any acquisition of Voting Stock by any Person pursuant to a Business Transaction that complies with clauses (i), (ii) and (iii) of Section 9(c) below;

		
	(ii)
	if any Person is or becomes the beneficial owner of 30% or more of combined voting power of the then-outstanding Voting Stock as a result of a transaction described in clause (1) of Section 9(a)(i) above and such Person thereafter becomes the beneficial owner of any additional shares of Voting Stock representing 1% or more of the then-outstanding Voting Stock, other than in an acquisition directly from the Company that is approved by a majority of the Incumbent Directors or other than as a result of a stock dividend, stock split or similar transaction effected by the Company in which all holders of Voting Stock are treated equally, such subsequent acquisition shall be treated as a Change of Control;

		
	(iii)
	a Change of Control will not be deemed to have occurred if a Person is or becomes the beneficial owner of 30% or more of the Voting Stock as a result of a reduction in the number of shares of Voting Stock outstanding pursuant to a transaction or series of transactions that is approved by a majority of the Incumbent Directors unless and until such Person thereafter becomes the beneficial owner of any additional shares of Voting Stock representing 1% or more of the then-outstanding Voting Stock, other than as a result of a stock dividend, stock split or similar transaction effected by the Company in which all holders of Voting Stock are treated equally; and

		
	(iv)
	if at least a majority of the Incumbent Directors determine in good faith that a Person has acquired beneficial ownership of 30% or more of the Voting Stock inadvertently, and such Person divests as promptly as practicable but no later than the date, if any, set by the Incumbent Directors a sufficient number of shares so that such Person beneficially owns less than 30% of the Voting Stock, then no Change of Control shall have occurred as a result of such Person’s acquisition; or

		
	(b)
	a majority of the Board of Directors ceases to be comprised of Incumbent Directors; or 

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	(c) 
	the consummation of a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of the stock or assets of another corporation, or other similar transaction (each, a “Business Transaction”), unless, in each case, immediately following such Business Transaction (i) the Voting Stock outstanding immediately prior to such Business Transaction continues to represent (either by remaining outstanding or by being converted into voting stock of the surviving entity or any parent thereof), more than 50% of the combined voting power of the then outstanding shares of voting stock of the entity resulting from such Business Transaction (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (ii) no Person (other than the Company, such entity resulting from such Business Transaction, or any employee benefit plan (or related trust) sponsored or maintained by the Company, any Subsidiary or such entity resulting from such Business Transaction) beneficially owns, directly or indirectly, 30% or more of the combined voting power of the then outstanding shares of voting stock of the entity resulting from such Business Transaction, and (iii) at least a majority of the members of the board of directors of the entity resulting from such Business Transaction were Incumbent Directors at the time of the execution of the initial agreement or of the action of the Board of Directors providing for such Business Transaction; or 

		
	(d)
	the consummation of the liquidation or dissolution of the Company, except pursuant to a Business Transaction that complies with clauses (i), (ii) and (iii) of Section 9(c); or 

		
	(e)
	For purposes of this Section 9, the terms (i) “Incumbent Directors” shall mean, during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors and any new Director (other than a Director initially elected or nominated as a Director as a result of an actual or threatened election contest with respect to Directors or any other actual or threatened solicitation of proxies by or on behalf of such Director, including any Director nominated or elected to the Board of Directors pursuant to any proxy access procedures included in the Company’s organizational documents) whose election by the Board of Directors or nomination for election by the Company's shareholders was approved by a vote of at least two-thirds (2/3) of the Directors then still in office who either were Directors at the beginning of the period or whose election or nomination for election was previously so approved and (B) “Voting Stock” shall mean the voting securities of the Company which have the right to vote on the election of members of the Board of Directors.

		
	10.
	NON-ASSIGNABILITY.  Neither a Participant nor any beneficiary designated by him shall have any right to, directly or indirectly, alienate, assign or encumber any amount that is or may be payable hereunder.

		
	11.
	ADMINISTRATION OF PLAN.  Full discretionary power and authority to construe, interpret and administer this Plan shall be vested in the Committee.  The Committee shall 

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have the power and authority to allocate among themselves and to delegate any responsibility or power reserved to it hereunder to any person or persons or any committee of the Board of Directors, as it may, in its sole discretion, deem appropriate.  Pursuant to this Section 11, the Senior Vice President - Human Resources of the Company shall be delegated authority by the Committee to conduct administrative functions with respect to this Plan and make changes to this Plan as he deems appropriate, provided that such changes do not impact the investment options and any amounts payable or benefits granted under this Plan without first obtaining the approval of the Committee.  Decisions of the Committee or its designee shall be final, conclusive and binding upon all persons affected thereby.  

		
	12.
	GOVERNING LAW.  To the extent not preempted by federal law, the provisions of this Plan shall be interpreted and construed in accordance with the laws of the State of Ohio (without giving effect to the conflict of law provisions thereof).

		
	13.
	AMENDMENT/TERMINATION.  

		
	(a)
	Amendment and Termination in General.  The Committee may amend, suspend or terminate this Plan at any time; provided that no such amendment, suspension or termination shall adversely affect the amounts in any then-existing account.  Further, no amendment, suspension or termination of this Plan may result in the acceleration of payment of any benefits to any Participant, beneficiary or other person, except as may be permitted under Section 409A of the Code.  

		
	(b)
	Payment of Benefits Following Termination.  In the event that this Plan is terminated, a Participant's benefits shall be distributed to the Participant or beneficiary on the dates on which the Participant or beneficiary would otherwise receive benefits hereunder without regard to the termination of this Plan.  Notwithstanding the preceding sentence, and to the extent permitted under Section 409A of the Code, the Committee may terminate this Plan and accelerate the payment of Participants' benefits subject to the following conditions:

		
	(i)  
	Company's Discretion.  The termination does not occur "proximate to a downturn in the financial health" of the Company (within the meaning of Treasury Regulation §1.409A-3(j)(4)(ix)), and all other arrangements required to be aggregated with this Plan under Section 409A of the Code are also terminated and liquidated.   In such event, the entire benefits of all Participants shall be paid at the time and pursuant to the schedule specified by the Company, so long as all payments are required to be made no earlier than twelve (12) months, and no later than twenty-four (24) months, after the date the Committee irrevocably approves the termination of this Plan.  Notwithstanding the foregoing, any payment that would otherwise be paid pursuant to the terms of this Plan prior to the twelve (12) month anniversary of the date that the Board of Directors irrevocably approves the termination of this Plan shall continue to be paid in accordance with the terms of this Plan.  If this Plan is terminated pursuant to this Section 13(b)(i), the Company shall be prohibited from adopting a 

9

new plan or arrangement that would be aggregated with this Plan under Section 409A of the Code within three (3) years following the date that the Committee irrevocably approves the termination and liquidation of this Plan.
		
	(ii)  
	Change of Control.  The termination occurs pursuant to an irrevocable action of the Committee that is taken within the thirty (30) days preceding or the twelve (12) months following a Change of Control (as defined in Section 9), and all other plans sponsored by the Company (determined immediately after the Change of Control) that are required to be aggregated with this Plan under Section 409A of the Code are also terminated with respect to each participant therein who experienced the Change of Control (each a "Change of Control Participant").   In such event, the entire benefits of each Participant under this Plan and each Change of Control Participant under all aggregated plans shall be paid at the time and pursuant to the schedule specified by the Company, so long as all payments are required to be made no later than twelve (12) months after the date that the Committee irrevocably approves the termination.

		
	(iii)  
	Dissolution; Bankruptcy Court Order.  The termination occurs within twelve (12) months after a corporate dissolution taxed under Section 331 of the Code, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A).   In such event, the entire benefits of each Participant shall be paid at the time and pursuant to the schedule specified by the Company, so long as all payments are required to be made by the latest of: (A) the end of the calendar year in which this Plan termination occurs, (B) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture, or (C) the first calendar year in which payment is administratively practicable. 

		
	(iv)  
	Other Events.  The termination occurs upon such other events and conditions as the Internal Revenue Service may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.

The provisions of subsections (i), (ii), (iii) and (iv) of this Section 13(b) are intended to comply with the exception to accelerated payments under Treasury Regulation §1.409A-3(j)(4)(ix) and shall be interpreted and administered accordingly.  The term "Company" as used in subsections (i) and (ii) of this Section 13(b) shall include the Company and any entity which would be considered to be a single employer with the Company under Sections 414(b) or 414(c) of the Code.

		
	14.
	SECTION 409A OF THE CODE.  

		
	(a)
	It is intended that this Plan comply with the provisions of Section 409A of the Code, so as to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year that is prior to the taxable year or years in which such 

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amounts would otherwise actually be paid or made available to Participants or beneficiaries.  This Plan shall be construed, administered and governed in a manner that effects such intent.  In furtherance of that intent, to the extent necessary to comply with Section 409A of the Code: (i) a Participant will be deemed to cease to be a Director on the date of the Participant's "separation from service" (within the meaning of Section 409A of the Code); and (ii) notwithstanding any other provision of this Plan to the contrary other than Sections 14(b)(i) and 14(b)(ii), in the event that a Participant is a "specified employee" (within the meaning of Section 409A of the Code), any payment that would otherwise be made or commence as a result of such separation from service shall be paid or commence on the first business day which is no less than six (6) months after the Participant's separation from service.
		
	(b)
	Discretionary Acceleration of Payments.  To the extent permitted by Section 409A of the Code, the Committee may, in its sole discretion, accelerate the time or schedule of a payment under this Plan as provided in this Section.  The provisions of this Section are intended to comply with the exception to accelerated payments under Treasury Regulation §1.409A-3(j) and shall be interpreted and administered accordingly.

		
	(i)  
	Domestic Relations Orders.   The Committee may, in its sole discretion, accelerate the time or schedule of a payment under this Plan to an individual other than the Participant as may be necessary to fulfill a domestic relations order (as defined in Section 414(p)(1)(B) of the Code).

		
	(ii)  
	Conflicts of Interest.  The Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a payment under this Plan to the extent necessary for any federal officer or employee in the executive branch to comply with an ethics agreement with the federal government.  Additionally, the Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a payment under this Plan to the extent reasonably necessary to avoid the violation of an applicable federal, state, local, or foreign ethics law or conflicts of interest law (including where such payment is reasonably necessary to permit the Participant to participate in activities in the normal course of his or her position in which the Participant would otherwise not be able to participate under an applicable rule).

		
	(iii)  
	Limited Cash-Outs.  The Committee may, in its sole discretion, require a mandatory lump sum payment of amounts deferred under this Plan that do not exceed the applicable dollar amount under Section 402(g)(1)(B) of the Code, provided that the payment results in the termination and liquidation of the entirety of the Participant's interest under this Plan, including all agreements, methods, programs or other arrangements that are aggregated with this Plan pursuant to Treasury Regulation § 1.409A-1(c).

11

		
	(iv)  
	Payment Upon Income Inclusion Under Section 409A.  The Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a payment under this Plan at any time this Plan fails to meet the requirements of Section 409A of the Code.  The payment may not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Section 409A of the Code.

		
	(v)
	Cancellation of Deferral Election Due to Unforeseeable Emergency.  The Committee may, in its sole discretion, cancel a Participant's deferral election due an Unforeseeable Emergency.

		
	(vi)  
	Certain Payments to Avoid a Nonallocation Year under Section 409(p).  The Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a payment under this Plan to prevent the occurrence of a nonallocation year (within the meaning of Section 409(p)(3) of the Code) in the plan year of an employee stock ownership plan next following the plan year in which such payment is made, provided that the amount paid may not exceed 125 percent of the minimum amount of payment necessary to avoid the occurrence of a nonallocation year.

		
	(vii)  
	Payment of State, Local, or Foreign Taxes.  The Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a payment under this Plan to reflect payment of state, local, or foreign tax obligations arising from participation in this Plan that apply to an amount deferred under this Plan before the amount is paid or made available to the Participant (the state, local, or foreign tax amount). Such payment may not exceed the amount of such taxes due as a result of participation in this Plan. The payment may be made in the form of withholding pursuant to provisions of applicable state, local, or foreign law or by payment directly to the Participant.

		
	(viii)
	Cancellation of Deferral Election Due to Disability.  The Committee may, in its sole discretion, cancel a Participant's deferral election in the event that a Participant incurs a disability, provided that such cancellation occurs by the later of the end of the calendar year in which the Participant incurs a disability or the 15th day of the third month following the dated the Participant incurs a disability.  For purposes of this Section 14(b)(viii), a disability refers to any medically determinable physical or mental impairment resulting in the Participant's inability to perform the duties of his or her position or any substantially similar position, where such impairment can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months.

		
	(ix)  
	Certain Offsets.  The Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a payment under this Plan as 

12

satisfaction of a debt of the Participant to the Company (or any entity which would be considered to be a single employer with the Company under Sections 414(b) or 414(c) of the Code), where such debt is incurred in the ordinary course of the service relationship between the Company (or any entity which would be considered to be a single employer with the Company under Sections 414(b) or 414(c) of the Code) and the Participant, the entire amount of reduction in any of the taxable years of the Company (or any entity which would be considered to be a single employer with the Company under Sections 414(b) or 414(c) of the Code) does not exceed $5,000, and the reduction is made at the same time and in the same amount as the debt otherwise would have been due and collected from the Participant.

		
	(x)  
	Bona Fide Disputes as to a Right to a Payment.  The Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a payment under this Plan where such payment occurs as part of a settlement between the Participant and the Company (or any entity which would be considered to be a single employer with the Company under Sections 414(b) or 414(c) of the Code) of an arm’s length, bona fide dispute as to the Participant's right to the deferred amount.

		
	(xi)  
	Plan Terminations and Liquidations.  The Committee may, in its sole discretion, provide for the acceleration of the time or schedule of a payment under this Plan as provided in Section 13(b) hereof.

		
	(xii)  
	Other Events and Conditions.  A payment may be accelerated upon such other events and conditions as the Internal Revenue Service may prescribe in generally applicable guidance.

Except as otherwise specifically provided in this Plan, including but not limited to Section 7(d), Section 13(b) and this Section 14(b) hereof, the Committee may not accelerate the time or schedule of any payment or amount scheduled to be paid under this Plan within the meaning of Code Section 409A.

		
	(c)  
	Delay of Payments.   To the extent permitted under Section 409A of the Code, the Committee may, in its sole discretion, delay payment under any of the following circumstances, provided that the Committee treats all payments to similarly situated Participants on a reasonably consistent basis:

		
	(i)  
	Federal Securities Laws or Other Applicable Law.  A payment may be delayed where the Committee reasonably anticipates that the making of the payment will violate federal securities laws or other applicable law; provided that the delayed payment is made at the earliest date at which the Committee reasonably anticipates that the making of the payment will not cause such violation.  For purposes of the preceding sentence, the making of a payment that would cause inclusion in gross income or the application 

13

of any penalty provision or other provision of the Code is not treated as a violation of applicable law.

		
	(ii)  
	Other Events and Conditions.  A payment may be delayed upon such other events and conditions as the Internal Revenue Service may prescribe in generally applicable guidance.

14

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