Document:

exv10w1

Exhibit 10.1

NORTHFIELD LABORATORIES INC.

2003 EQUITY COMPENSATION PLAN

AS AMENDED AND RESTATED EFFECTIVE AS OF AUGUST 1, 2008

     1. Purpose. The purposes of the Northfield Laboratories Inc. 2003 Equity
Compensation Plan (the “Plan”) are to (a) encourage outstanding individuals to accept or continue
service as employees, consultants and directors of Northfield Laboratories Inc. (the “Company”) and
(b) to furnish additional incentives to those persons to achieve the Company’s business goals and
objectives and to strengthen the mutuality of interest between those persons and the Company’s
stockholders by providing them stock options and other stock and cash incentives.

     2. Administration. The Plan will be administered by a Committee (the “Committee”) of
the Company’s Board of Directors consisting of two or more directors as the Board may designate
from time to time, each of whom will satisfy such requirements as:

	 	(a)	 	the Securities and Exchange Commission may establish for administrators
acting under plans intended to qualify for exemption under Rule 16b-3 or its
successor under the Securities Exchange Act of 1934, as amended (the “Exchange Act”);
	 
	 	(b)	 	the Nasdaq Stock Market, Inc. may establish pursuant to its rule-making
authority; and
	 
	 	(c)	 	the Internal Revenue Service may establish for outside directors acting
under plans intended to qualify for exemption under Section 162(m) of the Internal
Revenue Code of 1986, as amended (the “Code”).

     The Committee will have the authority to construe and interpret the Plan and any benefits
granted thereunder, to establish and amend rules for plan administration, to change the terms and
conditions of options and other benefits at or after grant, and to make all other determinations
which it deems necessary or advisable for the administration of the Plan. The determinations of the
Committee will be made in its sole discretion in accordance with its judgment as to the best
interests of the Company and its stockholders and in accordance with the purposes of the Plan. A
majority of the members of the Committee will constitute a quorum, and all determinations of the
Committee will be made by a majority of its members. Any determination of the Committee under the
Plan may be made without notice or meeting of the Committee, in writing signed by all the Committee
members. The Committee may authorize one or more officers of the Company to select employees to
participate in the Plan and to determine the number of option shares and other rights to be granted
to such participants, except with respect to awards to officers subject to Section 16 of the
Exchange Act or officers who are or may become “covered employees” within the meaning of Section
162(m) of the Code (“Covered Employees”), and any reference in the Plan to the Committee will
include such officer or officers.

     3. Participants. Participants will consist of all employees, consultants and
non-employee directors of the Company. Designation of a participant in any year will not require
the Committee to designate that person to receive a benefit in any other year or to receive the
same type or amount of benefit as granted to the participant in any other year or as granted to any
other participant in any year. The Committee may consider all factors that it deems relevant in
selecting participants and in determining the type and amount of their respective benefits.

1

 

     4. Shares Available under the Plan. There is hereby reserved for issuance under the
Plan an aggregate of 4,000,000 shares of the Company’s Common Stock, par value $.01 per share
(“Common Stock”). If there is a lapse, expiration, termination or cancellation of any Stock Option
issued under the Plan prior to the issuance of shares thereunder or if shares of Common Stock are
issued under the Plan and thereafter are reacquired by the Company, the shares subject to the Stock
Option and the reacquired shares will be added to the shares available for benefits under the Plan.
Shares covered by a benefit granted under the Plan will not be counted as used unless and until
they are actually issued and delivered to a participant. Any shares covered by a Stock Appreciation
Right will be counted as used only to the extent shares are actually issued to the participant upon
exercise of the right. In addition, any shares of Common Stock exchanged by an optionee as full or
partial payment to the Company of the exercise price under any Stock Option exercised under the
Plan, any shares retained by the Company pursuant to a participant’s tax withholding election, and
any shares covered by a benefit which is settled in cash will be added to the shares available for
benefits under the Plan. All shares issued under the Plan may be either authorized and unissued
shares or issued shares reacquired by the Company. Under the Plan, no participant may receive in
any calendar year (a) Stock Options relating to more than 200,000 shares, (b) Restricted Stock or
Restricted Stock Units that are subject to the attainment of Performance Goals (as defined in
Section 12) relating to more than 100,000 shares, (c) Stock Appreciation Rights relating to more
than 200,000 shares or (d) Performance Shares relating to more than 100,000 shares. No non-employee
director may receive in any calendar year Stock Options relating to more than 100,000 shares or
Restricted Stock Units relating to more than 50,000 shares. The shares reserved for issuance and
the limitations set forth above will be subject to adjustment in accordance with Section 13. All of
the available shares may, but need not, be issued pursuant to the exercise of Incentive Stock
Options.

     5. Types of Benefits. Benefits under the Plan will consist of Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Stock, Performance Units
and Other Stock or Cash Awards, all as described below.

     6. Stock Options. Stock Options may be granted to participants, at any time as
determined by the Committee. The Committee will determine the number of shares subject to each
option and whether the option is an Incentive Stock Option. The option price for each option will
be determined by the Committee but will not be less than 100% of the fair market value of the
Common Stock on the date the option is granted. Each option will expire at such time as the
Committee will determine at the time of grant. Options will be exercisable at such time and subject
to such terms and conditions as the Committee will determine; provided that no option will be
exercisable later than the tenth anniversary of its grant. The option price, upon exercise of any
option, will be payable to the Company in full by (a) cash payment or its equivalent, (b) tendering
previously acquired shares (held for at least six months) having a fair market value at the time of
exercise equal to the option price or certification of ownership of such previously-acquired
shares, (c) delivery of a properly executed exercise notice, together with irrevocable instructions
to a broker to promptly deliver to the Company the amount of sale proceeds from the option shares
or loan proceeds to pay the exercise price and any withholding taxes due to the Company and (d)
such other methods of payment as the Committee deems appropriate. In no event will the Committee
cancel any outstanding Stock Option for the purpose of reissuing the option to the participant at a
lower exercise price or reduce the option price of an outstanding option, in each case without
prior stockholder approval.

     7. Stock Appreciation Rights. Stock Appreciation Rights may be granted to
participants at any time as determined by the Committee. A Stock Appreciation right may be granted
in tandem with a Stock Option granted under the Plan or on a free-standing basis. The Committee
also may substitute Stock Appreciation Rights which can be settled only in stock for outstanding
Stock Options at any time. The grant price of a tandem or substitute Stock Appreciation Rights will
be equal to the option price of the related option. The grant price of a free-standing Stock
Appreciation Rights will be equal to the fair

2

 

market value of the Common Stock on the date of its grant. A Stock Appreciation Right may be
exercised upon such terms and conditions and for the term as the Committee determines; provided
that the term will not exceed the option term in the case of a tandem or substitute Stock
Appreciation Rights or ten years in the case of a free-standing Stock Appreciation Right and the
terms and conditions applicable to a substitute Stock Appreciation Right will be substantially the
same as those applicable to the Stock Option which it replaces. Upon exercise of a Stock
Appreciation Right, the participant will be entitled to receive payment from the Company in an
amount determined by multiplying the excess of the fair market value of a share of Common Stock on
the date of exercise over the grant price of the Stock Appreciation Right by the number of shares
with respect to which the Stock Appreciation Right is exercised. The payment may be made in cash or
stock, at the discretion of the Committee, except in the case of a substitute Stock Appreciation
Right, which may be made only in stock.

     8. Restricted Stock and Restricted Stock Units. Restricted Stock and Restricted
Stock Units may be awarded or sold to participants under such terms and conditions as may be
established by the Committee. Restricted Stock and Restricted Stock Units will be subject to such
restrictions as the Committee determines, including, without limitation, any of the following:

	 	(a)	 	a prohibition against sale, assignment, transfer, pledge, hypothecation or
other encumbrance for a specified period; or
	 
	 	(b)	 	a requirement that the holder forfeit (or in the case of shares or units
sold to the participant resell to the Company at cost) such shares or units in the
event of termination of employment during the period of restriction.

     All restrictions will expire at such times as the Committee may specify.

     9. Performance Stock. The Committee may designate the participants to whom long-term
performance stock (“Performance Stock”) is to be awarded and determine the number of shares, the
length of the performance period and the other terms and conditions of each such award. Each award
of Performance Stock will entitle the participant to a payment in the form of shares of Common
Stock upon the attainment of performance goals and other terms and conditions specified by the
Committee. Notwithstanding satisfaction of any performance goals, the number of shares issued under
a Performance Stock award may be adjusted by the Committee on the basis of such further
consideration as the Committee may determine; provided that the Committee may not, in any event,
increase the number of shares earned upon satisfaction of any performance goal by any participant
who is a Covered Employee. The Committee may make a cash payment equal to the fair market value of
shares of Common Stock otherwise required to be issued to a participant pursuant to a Performance
Stock award.

     10. Performance Units. The Committee may designate the participants to whom
long-term performance units (“Performance Units”) are to be awarded and determine the number of
units and the terms and conditions of each such award. Each Performance Unit award will entitle the
participant to a payment in cash upon the attainment of performance goals and other terms and
conditions specified by the Committee. Notwithstanding the satisfaction of any performance goals,
the amount to be paid under a Performance Unit award may be adjusted by the Committee on the basis
of such further consideration as the Committee will determine; provided that the Committee may not,
in any event, increase the amount earned under Performance Unit awards upon satisfaction of any
performance goal by any participant who is a Covered Employee and the maximum amount earned by a
Covered Employee in any calendar year may not exceed $500,000. The Committee may substitute actual
shares of Common Stock for the cash payment otherwise required to be made to a participant pursuant
to a Performance Unit award.

3

 

     11. Other Stock or Cash Awards. In addition to the incentives described in Sections
6 through 10, the Committee may grant other incentives payable in cash or in Common Stock under the
Plan as it determines to be in the best interests of the Company and its stockholders and subject
to such other terms and conditions as it deems appropriate.

     12. Performance Goals. Awards of Restricted Stock, Restricted Stock Units,
Performance Stock, Performance Units and other incentives under the Plan may be made subject to the
attainment of performance goals relating to one or more business criteria within the meaning of
Section 162(m) of the Code (“Performance Criteria”). Any Performance Criteria may be used to
measure the performance of the Company as a whole or any business unit of the Company and may be
measured relative to a peer group or index. Performance Criteria may be calculated in accordance
with the Company’s financial statements, generally accepted accounting principles or under a
methodology established by the Committee prior to the issuance of an award which is consistently
applied and identified in the audited financial statements, including footnotes, or the Management
Discussion and Analysis section of the Company’s annual report.

     13. Adjustment Provisions. If the Company at any time changes the number of issued
shares of Common Stock by stock dividend, stock split, spin-off, split-off, spin-out,
recapitalization, merger, consolidation, reorganization, combination or exchange of shares, the
total number of shares reserved for issuance under the Plan, the maximum number of shares which may
be made subject to an award in any calendar year, and the number of shares covered by each
outstanding award and the price therefor, if any, will be equitably adjusted by the Committee.

     14. Terminating Events. The Company, at its option, may give any or all of the
participants at least 10 business days written notice (or, if such notice period is not
practicable, such shorter notice period as the Company determines in good faith is practicable)
prior to the anticipated date of the consummation of a Terminating Event. Upon receipt of such
notice, and for a period of five business days thereafter (or such other period as may be specified
in the Company’s notice with respect to the Terminating Event), each participant receiving such
notice will be permitted to exercise, in whole or in part, the vested and unexercised portion of
each Stock Option or Stock Appreciation Right held by such participant in accordance with the terms
and conditions of the Plan and the award agreement relating to such Stock Option or Stock
Appreciation Right. Upon the consummation of the Terminating Event, all Stock Options and Stock
Appreciation Rights will be canceled and forfeited to the extent they have not been exercised in
accordance with the provisions of this Section 14. If the Terminating Event is not consummated, all
Stock Options and Stock Appreciation Rights exercised pursuant to the Company’s notice of the
Terminating Event will be deemed not to have been exercised and will thereafter be exercisable to
the same extent and on the same terms and conditions as if notice of the Terminating Event had not
been given by the Company. In lieu of delivering notice of a Terminating Event pursuant to this
Section 14, the Company, at its option, may cause the successor or acquiring corporation in
connection with any Terminating Event or, if applicable, the corporate parent of any such
corporation (the “Successor Corporation”), to assume in writing the obligations of the Company
under the Plan and the outstanding award agreements entered into pursuant to the Plan. In such
event, the number and kind of shares acquirable upon the exercise of the Stock Options and Stock
Appreciation Rights and the exercise price applicable thereto will be adjusted appropriately and
the Stock Options and Stock Appreciation Rights as so adjusted will be deemed solely to represent
rights to acquire shares of the Successor Corporation in the manner provided in the agreements
between the Company and the Successor Corporation. For purposes of this Section 14, “Terminating
Event” means any (a) sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the Company’s assets or (b) consolidation or
merger of the Company in which the Company is not the surviving or continuing corporation, or
pursuant to which shares of the Company’s Common Stock would be converted into cash, securities or
other property, other than a merger of the Company in which the holders of Common Stock

4

 

immediately prior to the merger have, directly or indirectly, at least an 80% ownership interest in
the outstanding Common Stock of the surviving corporation immediately after the merger.

     15. Nontransferability. Each benefit granted under the Plan will not be transferable
otherwise than by will or the laws of descent and distribution and each Stock Option and Stock
Appreciation Right will be exercisable during the participant’s lifetime only by the participant
or, in the event of disability, by the participant’s personal representative. In the event of the
death of a participant, exercise of any benefit or payment with respect to any benefit will be made
only by or to the executor or administrator of the estate of the deceased participant or the person
or persons to whom the deceased participant’s rights under the benefit will pass by will or the
laws of descent and distribution. Notwithstanding the foregoing, the Committee may permit the
transfer of a Stock Option or Stock Appreciation Right by the participant, subject to such terms
and conditions as may be established by the Committee.

     16. Taxes. The Company will be entitled to withhold the amount of any tax
attributable to any amounts payable or shares deliverable under the Plan, after giving the person
entitled to receive such payment or delivery notice and the Company may defer making payment or
delivery as to any award, if any such tax is payable until indemnified to its satisfaction. A
participant may pay all or a portion of any required withholding taxes arising in connection with
the exercise of a Stock Option or Stock Appreciation Right or the receipt or vesting of shares
hereunder by electing to have the Company withhold shares of Common Stock, having a fair market
value equal to the amount required to be withheld.

     17. Duration, Amendment and Termination. No award of any benefit under the Plan will
be made more than ten years after the date of adoption of the Plan by the Board of Directors;
provided that the terms and conditions applicable to any option granted on or before such date may
thereafter be amended or modified by mutual agreement between the Company and the participant, or
such other person as may then have an interest therein. The Board of Directors or the Committee may
amend the Plan from time to time or terminate the Plan at any time; provided that no such action
will reduce the amount of any existing award or change the terms and conditions thereof without the
participant’s consent. No material amendment of the Plan will be made without stockholder approval.

     18. Fair Market Value. The fair market value of the Common Stock at any time will be
determined in such manner as the Committee may deem equitable or as required by applicable law or
regulation.

     19. Other Provisions. The award of any benefit under the Plan may also be subject to
other provisions (whether or not applicable to the benefit awarded to any other participant) as the
Committee determines appropriate, including provisions intended to comply with federal or state
securities laws and stock exchange requirements, understandings or conditions as to the
participant’s employment, requirements or inducements for continued ownership of Common Stock after
exercise or vesting of benefits, acceleration of benefits upon the occurrence of a change in
control of the Company or other events determined by the Committee, forfeiture of awards in the
event of termination of employment after exercise or vesting, or breach of noncompetition or
confidentiality agreements following termination of employment, or provisions permitting the
deferral of the receipt of a benefit for such period and upon such terms as the Committee may
determine. If any benefit under the Plan is granted to an employee who is employed or providing
services outside the United States and who is not compensated from a payroll maintained in the
United States, the Committee may modify the provisions of the Plan as they pertain to such
individuals to comply with applicable law, regulation or accounting rules. The Committee may permit
or require a participant to have amounts or shares of Common Stock that otherwise would be paid or
delivered to the participant as a result of the exercise or settlement of an award under the Plan
credited

5

 

to a deferred compensation or stock unit account established for the participant by the Committee
on the Company’s books of account.

     20. Code Section 409A. To the extent applicable, the parties intend that the Plan and
award agreements will be interpreted and construed in compliance with Section 409A of the Code and
Treasury Department regulations and other interpretive guidance issued thereunder. Notwithstanding
the foregoing, the Company will not be required to assume any increased economic burden in
connection therewith. Although the Company intends to administer the Plan so that it will comply
with the requirements of Section 409A of the Code, the Company does not represent or warrant that
the Plan will comply with Section 409A of the Code or any other provision of federal, state, local
or non-United States law. Neither the Company nor any of its directors, officers, employees or
advisers will be liable to any participant (or any other individual claiming a benefit through the
participant) for any tax, interest or penalties the participant might owe as a result of
participation in the Plan.

     21. Governing Law. The Plan and any actions taken in connection herewith will be
governed by and construed in accordance with the laws of the State of Delaware without regard to
applicable conflict of law principles.

     22. Stockholder Approval. The Plan was originally adopted by the Board of Directors
on July 10, 2003 and approved by the stockholders of the Company on September 17, 2003. An
amendment and restatement of the Plan to increase the number of shares available under the Plan
from 750,000 to 2,250,000 shares of Common Stock was adopted by the Board of Directors on July 14,
2005 and approved by the stockholders of the Company on September 29, 2005. An amendment and
restatement of the Plan to further increase the number of shares available under the Plan from
2,250,000 to 4,000,000 shares of Common Stock was adopted by the Board of Directors on August 1,
2008, subject to stockholder approval. The foregoing amendment to the Plan will not become
effective if stockholder approval is not obtained at the Company’s next annual meeting of
stockholders and, in such event, the Plan in the form previously adopted and approved by the Board
of Directors and the Company’s stockholders will continue in full force and effect.

6EX-10.1

EXHIBIT 10.1

USG CORPORATION SUPPLEMENTAL RETIREMENT PLAN

(As Amended and Restated Effective as of January 1, 2007)

 

 

CERTIFICATE OF ADOPTION

     USG Corporation, acting through its duly authorized representative, hereby adopts the
amendment and restatement of the USG Corporation Supplemental Retirement Plan, effective as of
January 1, 2007, as set forth herein, this 10th day of December, 2008.

	 	 	 	 	 
	 	USG CORPORATION

 	 
	 	By:  	/s/ Brian J. Cook
 	 
	 	 	Senior Vice President 	 
	 	 	Human Resources 	 

 

 

	 	 	 	 	 

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	PAGE
	SECTION 1
	 	 	1	 
	Introduction
	 	 	1	 
	1.1 The Plan, the Company
	 	 	1	 
	1.2 Employers
	 	 	1	 
	1.3 Purpose
	 	 	1	 
	1.4 Plan Administration
	 	 	2	 
	1.5 Preservation of Benefits
	 	 	2	 
	 
	 	 	 	 
	SECTION 2
	 	 	3	 
	Eligibility for Participation
	 	 	3	 
	2.1 Covered Employee
	 	 	3	 
	2.2 Eligibility
	 	 	3	 
	2.3 Period of Participation
	 	 	3	 
	 
	 	 	 	 
	SECTION 3
	 	 	4	 
	Part A Supplemental Benefits
	 	 	4	 
	3.1 Intent
	 	 	4	 
	3.2 Limited Benefits, Unlimited Benefits, Part A
Supplemental Benefits and Part A Supplemental Death Benefits
	 	 	4	 
	3.3 Participant Contribution Requirement
	 	 	4	 
	3.4 Compensation Deferral Elections
	 	 	5	 
	3.5 Amount of Part A Supplemental Benefits
	 	 	6	 
	3.6 Payment of Part A Supplemental Benefits
	 	 	6	 
	3.7 Amount and Payment of Part A Supplemental Death Benefits
	 	 	7	 
	3.8 Offset/Reduction for Benefits Provided by Funding Accounts
	 	 	8	 
	 
	 	 	 	 
	SECTION 4
	 	 	9	 
	Spouses, Beneficiaries, Funding
	 	 	9	 
	4.1 Eligible Spouse
	 	 	9	 
	4.2 Supplemental Plan Beneficiary
	 	 	9	 
	4.3 Funding
	 	 	9	 
	 
	 	 	 	 
	SECTION 5
	 	 	10	 
	General Provisions
	 	 	10	 
	5.1 Statement of Accounts
	 	 	10	 
	5.2 Employment Rights
	 	 	10	 
	5.3 Interests Not Transferable
	 	 	10	 
	5.4 Controlling Law
	 	 	10	 
	5.5 Gender and Number
	 	 	10	 
	5.6 Action by the Company
	 	 	10	 
	5.7 Successor to the Company or Any Other Employer
	 	 	10	 
	5.8 Facility of Payment
	 	 	11	 

 -i-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 
	 	PAGE
	SECTION 6
	 	 	12	 
	Amendment and Termination
	 	 	12	 

-ii-

 

 

USG CORPORATION SUPPLEMENTAL RETIREMENT PLAN

SECTION 1

Introduction

1.1 The Plan, the Company

     Effective January 1, 1976 UNITED STATES GYPSUM COMPANY established UNITED STATES GYPSUM
COMPANY SUPPLEMENTAL RETIREMENT PLAN (the “Plan”). On January 1, 1985 UNITED STATES GYPSUM COMPANY
became a wholly-owned subsidiary of USG CORPORATION and effective as of that date USG CORPORATION
was substituted for UNITED STATES GYPSUM COMPANY as the “Company” under the Plan and the name of
the Plan was changed to USG CORPORATION SUPPLEMENTAL RETIREMENT PLAN. Previously, the Plan
included certain additional benefits (called Part B Supplemental Benefits) that supplemented
contributions made under the USG Corporation Investment Plan and other defined contribution plans
maintained by the Company or members of its controlled group. Effective November 8, 2000 the Plan
was amended to provide for the cessation of participant deferrals under Part B of the Plan and the
distribution of all Part B Supplemental Benefits. The Plan is being restated effective January 1,
2007 to eliminate reference to Part B Supplemental Benefit and to update the provisions relating to
the Part A Supplemental Benefits. The term “Company” as used in the Plan means UNITED STATES
GYPSUM COMPANY up to January 1, 1985 and USG CORPORATION (and any successor thereto) on and after
that date. Except as otherwise specifically provided, the provisions of this subsection and the
following provisions of the Plan constitute an amendment and restatement of the Plan, as previously
amended, effective as of January 1, 2007 (the “New Effective Date”), subject to any subsequent
amendments.

1.2 Employers

     Each subsidiary of the Company that is an employer under USG Corporation Retirement Plan (the
“Retirement Plan”) shall be an “Employer” under this Plan unless specified to the contrary by the
Company by writing filed with the Committee described in subsection 1.4.

1.3 Purpose

     The Company and certain of its subsidiaries maintain and are employers under the Retirement
Plan, which is intended to meet the requirements of a “qualified plan” under Section 401(a) of the
Internal Revenue Code. The purpose of this Plan, a nonqualified plan, is to provide for eligible
employees benefits that could have been earned and paid under the Retirement Plan and under any
other qualified defined benefit maintained by the controlled group of corporations of which the
Company is a member (“other USG Defined Benefit Plans”) but for the following limitations:

	 	(a)	 	Section 401(a)(4) of the Internal Revenue Code requires that contributions or
benefits provided under a qualified plan must not discriminate in favor of highly
compensated employees and therefore amounts deferred by employees, if any, under the
Company’s management incentive compensation programs, Part B of

-1-

 

	 	 	 	this Plan as in effect prior to November 8, 2000, and the USG Corporation Deferred
Compensation Plan until their retirement or other termination of employment may not
be considered as a part of their employment compensation in determining the amount
of their contributions, benefits provided with respect to their contributions, and
employer provided benefits under the Retirement Plan and other USG Defined Benefit
Plans.

	 	(b)	 	Sections 401(a)(17) and 404(l) of the Internal Revenue Code limit the amount of
employees’ annual compensation that may be taken into account in determining the
benefits that may be paid to them from the Retirement Plan and other USG Defined
Benefit Plans and the deductible Employer contributions that may be made to those plans
to provide such benefits.
	 
	 	(c)	 	Section 415 of the Internal Revenue Code places limitations on the amount of
benefits that may be paid from and contributions that may be made to the Retirement
Plan and other USG Defined Benefit Plans.

     In no event shall any benefits be payable under this Plan that would duplicate benefits that
become payable under any other qualified or nonqualified plan maintained by the Company, any other
Employer or any other member of the controlled group of corporations of which the Company is a
member.

1.4 Plan Administration

     The Plan is administered by the committee (the “Committee”) that is responsible for
administration of the Retirement Plan. To the extent appropriate, the Committee has the same
powers, rights, duties and obligations it has as to the Retirement Plan, including the right to
require the completion of such forms or applications with respect to benefit payments as it deems
appropriate.

1.5 Preservation of Benefits

     Benefits shall be provided under the Plan on and after the New Effective Date to, or with
respect to, former employees of the Company who became entitled to such benefits before that date
in accordance with the terms of the Plan as in effect at the time of their retirement or other
termination of employment. If an employee of an Employer was participating in the Plan immediately
prior to the New Effective Date and continues to participate in the Plan on and after that date,
benefits payable under Section 3 of this Plan to, or with respect to, such employee shall not be
less than what they would have been if the Plan as in effect immediately prior to the New Effective
Date continued in effect on and after that date without change, but only taking into account for
this purpose benefits accrued by the employee under the Retirement Plan and all other USG Defined
Benefit Plans prior to the New Effective Date.

-2-

 

SECTION 2

Eligibility for Participation

2.1 Covered Employee

     A “Covered Employee” for any calendar year means an employee of an Employer under the plan who
the Committee, in accordance with such rules as it may establish, anticipates will have
“compensation” (as defined below) for such year in excess of $100,000 (or such greater amount as
may be determined by the Secretary of the United States Treasury under Section 414(q)(1)(B)(i) of
the Internal Revenue Code), unless the Committee specifies that such employee shall not be
considered as a Covered Employee for any purpose of the plan by writing filed with the Secretary of
the Company prior to, or within 30 days after, the date the employee otherwise would become
eligible for participation in the plan. For purposes of this subsection 2.1, compensation shall
mean base salary.

2.2 Eligibility

     Subject to the conditions and limitations of the Plan, each employee of an Employer who was a
“Participant” in the Plan on December 31, 2006 shall continue as a Participant in the Plan after
that date. Subject to the conditions and limitations of the Plan, each other employee of an
Employer shall become eligible to enroll in this Plan and become a “Participant” on the first date
occurring on or after the New Effective Date on which:

	 	(a)	 	he is a Covered Employee; and
	 
	 	(b)	 	the benefits he accrues, or the contributions he is required to make or could
elect to make, or his share of employer derived contributions under one or more of the
Retirement Plan and other USG Defined Benefit Plans, are less than what they would have
been (or, as to elected contributions, could have been) as a result of the limitations
described in subsection 1.3.

Each employee will be notified of the date he is eligible to enroll in the Plan and become a
Participant and will be notified of the enrollment procedures established by the Committee.

2.3 Period of Participation

     An employee of an Employer who becomes a Participant in this Plan will continue as a
Participant in the Plan in accordance with its provisions until all benefits to which he is
entitled under the Plan have been distributed to him. However, a Participant will not be entitled
to make contributions or accrue additional benefit entitlements under this Plan for any period
during which he is not a Covered Employee.

-3-

 

SECTION 3

Part A Supplemental Benefits

3.1 Intent

     The Employers intend that benefits be provided pursuant to the provisions of this Section 3
that are actuarially equivalent to the benefits that would have been provided under the Retirement
Plan and other USG Defined Benefit Plans if the limitations described in subsection 1.3 did not
exist, if before-tax contributions the Participant makes pursuant to subsection 3.3 had been made
under the Retirement Plan and any other applicable USG Defined Benefit Plan on an after-tax basis,
and if amounts deferred under the Company’s 1989 and subsequent management incentive compensation
programs or deferred under Part B of this Plan prior to November 8, 2000 or deferred under the USG
Corporation Deferred Compensation Plan had not been deferred but instead paid at the proper time
and included in employment compensation for purposes of the Plans, provided that the contribution
requirement described in subsection 3.3 is met.

			
	3.2	 	Limited Benefits, Unlimited Benefits, Part A Supplemental Benefits and Part A Supplemental
Death Benefits

     For purposes of this Section 3, the term “Limited Benefits” means the benefits that become
payable to or with respect to a Participant under the Retirement Plan and all other USG Defined
Benefit Plans. The term “Unlimited Benefits” means the benefits that would have become payable to
or with respect to a Participant under such Plans if the limitations described in subsection 1.3
did not exist; if before-tax contributions the Participant makes pursuant to subsection 3.3 had
been made under the Retirement Plan and any other applicable USG Defined Benefit Plan on an
after-tax basis; and if amounts deferred by the Participant under the Company’s 1989 and subsequent
management incentive compensation programs, deferred under Part B of this Plan as in effect prior
to November 8, 2000, or deferred under the USG Corporation Deferred Compensation Plan had not been
deferred but instead paid to the Participant at the proper time during employment and then included
in the Participant’s employment compensation for purposes of those Plans. Benefits that become
payable under this Section 3 to a Participant are referred to as “Part A Supplemental Benefits”.
Benefits that become payable under this Section 3 to any person as a result of the death of a
Participant are referred to as “Part A Supplemental Death Benefits”.

3.3 Participant Contribution Requirement

     A Participant’s entitlement to Part A Supplemental Benefits and Part A Supplemental Death
Benefits described in subsections 3.5 and 3.7 is subject to the Participant making before-tax
contributions under this Plan. Such contributions must equal the after-tax contributions the
Participant would have been required to make under the Retirement Plan and all other USG Defined
Benefit Plans:

	 	(a)	 	if amounts contributed on a before-tax basis under this Plan, deferred by the
Participant under the Company’s management incentive compensation programs, or deferred
under the USG Corporation Deferred Compensation Plan had not been so contributed or
deferred but paid to the Participant at the proper time during

-4-

 

	 	 	 	employment and then included in the Participant’s employment compensation for
purposes of those plans;

	 	(b)	 	if the annual compensation limitation imposed by Section 401(a)(17) of the
Internal Revenue Code (as described in subparagraph 1.3(b)) did not apply to the
Participant; and
	 
	 	(c)	 	if the limitations imposed under Section 415 of the Internal Revenue Code (as
described in subparagraph 1.3(c)) did not apply to the Participant.
	 
	 	(d)	 	A Covered Employee who first becomes eligible to make before-tax contributions
under subsection 3.4 will be deemed to have elected to make before-tax contributions,
unless he elects otherwise in accordance with rules established by the Committee.

Notwithstanding the foregoing, a Participant may be eligible for and make after-tax contributions
under the Retirement Plan or another USG Defined Benefit Plan even though the limitations described
above in this subsection may prevent or limit his accrual of benefits under such plans. In such
case, the Participant will accrue benefits under this Plan based on such after-tax contributions as
if they had been made under this Plan on a before-tax basis. The Committee shall maintain a
bookkeeping account in the name of each Participant who makes before-tax contributions under this
subsection to reflect such contributions and, where required, interest on such contributions. The
term “interest” as used in this Plan with respect to Participants’ before-tax contributions made
under this subsection shall mean “interest” as defined in the Retirement Plan with respect to
participant contributions under that plan but shall not include a higher rate of interest required
to be applied under the Retirement Plan for certain purposes pursuant to Section 411(c)(2) of the
Internal Revenue Code.

3.4 Compensation Deferral Elections

     A Participant’s before-tax contributions under this Section 3 shall be made pursuant to a
compensation deferral election filed with his Employer prior to the calendar year such
contributions are to begin or, in the case of a Participant who first becomes eligible to make such
contributions during but after the beginning of a calendar year, filed with his Employer not more
than 30 days after so becoming eligible, subject to the following:

	 	(a)	 	The Participant’s election shall apply to employment compensation otherwise
payable after the later to occur of the date the Participant becomes eligible to make
before-tax contributions and the date the election is filed with his Employer.
	 
	 	(b)	 	Such election shall be automatically revoked as of the end of the calendar year
in which the Participant ceases to be a Covered Employee (but remains an Employee of an
Employer or affiliate) and such revocation shall be effective as to employment
compensation the Participant is entitled to receive after such date.
	 
	 	(c)	 	Such election may be voluntarily revoked by the Participant before the
beginning of any subsequent calendar year. A voluntary revocation shall be effective
as to employment compensation the Participant is entitled to receive during calendar

-5-

 

	 	 	 	years after the revocation election is made unless prior to the commencement of any
subsequent calendar year the Participant makes another compensation deferral
election. Such later election shall apply as to employment compensation otherwise
payable during calendar years beginning after the election is made.

	 	(d)	 	A Participant who separates from service and then is rehired as a Covered
Employee and becomes eligible to participate in the Plan, shall not become eligible
until the first day of the year following the year in which he is rehired; provided he
may elect within 30 days of rehire to participate if either (i) upon prior separation
from service he received the entire benefit to which he was entitled under this plan
and all other plans which are required to be aggregated with this plan under Internal
Revenue Code Section 409A; or (ii) the period during which he was not employed by an
Employer in at least 24 months.

Any period during which a Participant does not make contributions under the Plan (and, where
applicable, does not elect to make after-tax contributions under the Retirement Plan or another USG
Defined Benefit Plan upon which benefits would accrue under this Plan) shall be disregarded for
purposes of any subsequent calculation of compensation (as described in subsection 3.3 above for
purposes of determining contributions under this Plan) used in determining the Participant’s
Unlimited Benefits for a subsequent Plan year.

3.5 Amount of Part A Supplemental Benefits

     Subject to the contribution requirement described in subsection 3.3, Part A Supplemental
Benefits shall become payable under the Plan to a Participant upon the Participant’s retirement or
earlier termination of employment with the Company and its subsidiaries. A Participant’s Part A
Supplemental Benefits shall be in an amount that is actuarially equivalent to the amount by which
the Participant’s Unlimited Benefits exceed the Participant’s Limited Benefits. For purposes of
this Section 3, actuarially equivalent benefits shall be calculated on the basis of the actuarial
factors, assumptions and tables applied for that purpose under the Retirement Plan, to the extent
deemed appropriate by the Committee.

3.6 Payment of Part A Supplemental Benefits

     Subject to the provisions of this subsection 3.6, Part A Supplemental Benefits shall be paid
in a lump sum 30 days after the Participant separates from service with the Company and all
subsidiaries. Notwithstanding the foregoing provisions of this subsection:

	 	(a)	 	If a Participant’s death occurs while employed by the Company or any subsidiary
of the Company or if a Participant’s death occurs after he had become entitled to Part
A Supplemental Benefits but before payment of such benefits has commenced or has been
completed, Part A Supplemental Death Benefits shall be payable with respect to the
Participant only if and to the extent provided in subsection 3.7.
	 
	 	(b)	 	Spousal consent rules that apply under the Retirement Plan or any other USG
Defined Benefit Plan with respect to forms of payment of benefits shall not apply under
this Plan.

-6-

 

	 	(c)	 	Notwithstanding the above, distributions to be made to a Key Employee upon
retirement or other separation from service shall not be made before the date that is
six (6) months after the Key Employee’s retirement or other separation from service.
“Key Employee” means an employee who meets the Key employee requirements of Code
Section 416(i)(1)(A)(i), (ii) or (iii) (applied in accordance with the regulations
thereunder and disregarding Code Section 416(i)(5)) at any time during the 12-month
period ending each December 31st. If an employee meets the Key Employee requirements
as of any December 31st, the person is treated as a Key Employee for the 12-month
period beginning on the March 1st following that December 31st.
	 
	 	(d)	 	The provisions of this subsection 3.6 are effective January 1, 2005.

3.7 Amount and Payment of Part A Supplemental Death Benefits

     Part A Supplemental Death Benefits shall be payable under the Plan as follows:

	 	(a)	 	If a Participant’s death occurs while employed by the Company or a subsidiary
of the Company and if he had an Eligible Spouse (as defined in subsection 4.1)
immediately prior to his death, the Participant’s Eligible Spouse shall be entitled to
a lump sum Part A Supplemental Death Benefit under this Plan which is actuarially
equivalent (based on the age of the Eligible Spouse) to any additional monthly
pre-retirement survivor annuity benefits that would have been payable to the
Participant’s Eligible Spouse under the Retirement Plan and all other USG Defined
Benefit Plans if the Participant’s Limited Benefits equaled his Unlimited Benefits.
The Part A Supplemental Death Benefit under this subparagraph 3.7(a) shall be paid to
the Participant’s Eligible Spouse in a lump sum 30 days after the Participant’s death.
If the Participant did not have an Eligible Spouse at the time of his death, no Part A
Supplemental Death Benefits shall be payable under the Plan with respect to that
Participant other than payment to the Participant’s Supplemental Plan Beneficiary (as
defined in subsection 4.2) of an amount equal to the Participant’s before-tax
contributions under the Plan with interest as soon as practicable after the
Participant’s death.
	 
	 	(b)	 	If a Participant’s death occurs after he had both retired (or otherwise
separated from service) and become entitled to Part A Supplemental Benefits but before
payment of such benefits had been made or had commenced, and if he had an Eligible
Spouse at the time of his death, the Participant’s Eligible Spouse shall be entitled to
a lump sum Part A Supplemental Death Benefit which is actuarially equivalent (based on
the age of the Eligible Spouse) to any additional monthly pre-retirement survivor
annuity benefits that could have been payable to the Participant’s Eligible Spouse
under the Retirement Plan and all other USG Defined Benefit Plans if the Participant’s
Limited Benefits equaled his Unlimited Benefits. The Part A Supplemental Death Benefit
under this subparagraph 3.7(b) shall be paid to the Participant’s Eligible Spouse in a
lump sum 30 days after the Participant’s Death. If the Participant did not have an
Eligible Spouse at the time of his death, no Part A Supplemental Death Benefits shall
be payable under the

-7-

 

	 	 	 	Plan with respect to that Participant other than payment to the Participant’s
Supplemental Plan Beneficiary of an amount equal to the Participant’s before-tax
contributions under this Plan with interest as soon as practicable after the
Participant’s death.

3.8 Offset/Reduction for Benefits Provided by Funding Accounts

     Although the plan is an unfunded, non-qualified compensation arrangement, funds may have been
paid to the Participant or contributed to an individual trust intended to constitute a grantor
trust of a Participant under Section 671-678 of the Internal Revenue Code of 1986, as amended (the
‘Code’) or other funding account established and maintained by a Participant pursuant to a funding
agreement between the Participant and USG (a ‘Funding Agreement’). If amounts were paid to a
Participant or to a grantor trust on behalf of a Participant pursuant to a Funding Agreement with
USG, upon the Participant’s death or termination of employment for any reason, the Participant’s
Part A Supplemental Benefits and Part A Supplemental Death Benefits will be offset/reduced to the
extent provided in the Funding Agreement to reflect the value of payments made to the Participant
and his or her grantor trust.

-8-

 

SECTION 4

Spouses, Beneficiaries, Funding

4.1 Eligible Spouse

     The spouse of a Participant will be considered as an “Eligible Spouse” as of any date only if
at least six months prior thereto the Participant and his spouse were lawfully married under the
laws of the state where the marriage was contracted and the marriage remains legally effective.

4.2 Supplemental Plan Beneficiary

     A “Supplemental Plan Beneficiary” means a person who has been designated by a Participant as
such by writing signed by the Participant and filed with the Committee prior to the Participant’s
death. If a Participant failed to designate a Supplemental Plan Beneficiary or if the person he
designated predeceases the Participant, the Participant’s Beneficiary under the Retirement Plan
shall be his Supplemental Plan Beneficiary.

4.3 Funding

     Benefits payable under this Plan to a Participant or a Supplemental Plan Beneficiary shall be
paid directly by the Employers from their general assets in such proportion as the Company shall
determine to the extent such benefits are not paid from a Special Retirement Account (established
pursuant to Supplement A of this Plan) or pursuant to a Funding Agreement (as defined in subsection
3.8) or from a so-called ‘rabbi trust,’ an irrevocable grantor trust the assets of which are
subject to the claims of creditors of the Employers in the event of their insolvency. The
Employers shall not be required to segregate on their books or otherwise any amount to be used for
the payment of benefits under this Plan, except as to any amounts paid or payable to a Funding
Agreement or to a “rabbi trust”.

-9-

 

SECTION 5

General Provisions

5.1 Statement of Accounts

     The Committee shall furnish each Participant with a statement of his Supplemental Plan
benefits at such time as it may in its discretion determine.

5.2 Employment Rights

     Establishment of the Plan shall not be construed to give any Participant the right to be
retained in the employ of the Company or any other Employer or to any benefits not specifically
provided by this Plan.

5.3 Interests Not Transferable

     Except as to withholding of any tax under the laws of the United States or any state or
municipality, the interests of Participants and their Supplemental Plan Beneficiaries under the
Plan are not subject to the claims of their creditors and may not be voluntarily or involuntarily
transferred, assigned, alienated or encumbered.

5.4 Controlling Law

     The laws of Illinois shall be controlling in all matters relating to the Plan.

5.5 Gender and Number

     Where the context admits, words in the masculine gender shall include the feminine and neuter
genders, the plural shall include the singular and the singular shall include the plural.

5.6 Action by the Company

     Any action required of or permitted by the Company under the Plan shall be by resolution of
its Board of Directors or by a duly authorized committee of its Board of Directors, or by a person
or persons authorized by resolution of its Board of Directors or such committee.

5.7 Successor to the Company or Any Other Employer

     The term “Company” as used in the Plan shall include any successor to the Company by reason of
merger, consolidation, the purchase or transfer of all or substantially all of the Company’s
assets, or otherwise. The term “Employer” as used in the Plan with respect to the Company or any
subsidiary shall include any successor to that corporation by reason of merger, consolidation, the
purchase or transfer of all or substantially all of the assets of that corporation, or otherwise.

-10-

 

5.8 Facility of Payment

     Any amounts payable hereunder to any person under a legal disability or who, in the judgment
of the Committee, is unable to properly manage his affairs may be paid to the legal representative
of such person or may be applied for the benefit of such person in any manner which the Committee
may select. Any payment made in accordance with the next preceding sentence shall be a full and
complete discharge of any liability for such payment under the Plan.

-11-

 

SECTION 6

Amendment and Termination

     While the Employers expect to continue the Plan, the Company must necessarily reserve and
reserves the right to amend the Plan from time to time or to terminate the Plan at any time.
However, no amendment of the Plan nor the termination of the Plan may cause the reduction or
cessation of any benefits that, but for such amendment or termination, are payable under this Plan
or would become payable under this Plan after the date such amendment is made or the termination of
the Plan occurs.

-12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]