Document:

exv10w17

 

Exhibit 10.17

AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

         This agreement, dated as of November 1, 2004, amends the Employment
Agreement (the “Agreement”) dated as of September 1, 2001, between U.S.-China
Industrial Exchange, Inc.and Elyse Beth Silverberg.

	 	1.	 	The first paragraph of the Agreement is amended to read as follows:
	 	 	 	 
	 	 	 	“This Employment Agreement dated as of September 1, 2001, between Chindex
International, Inc., a Delaware Corporation currently having an address
at 7201 Wisconsin Avenue, Bethesda, Maryland 20815 (the “Company”) and
Elyse Beth Silverberg, an individual residing in River Gardens, Beijing,
China (“Employee”).”
	 	 	 	 
	 	2.	 	Paragraph (a) of Section 5 of the Agreement is amended by deleting the
words “One Hundred and Seventy Seven Thousand Dollars ($177,000) per year”
and substituting therefor the words “One Hundred and Ninety Seven Thousand
Dollars ($197,000) per year.”
	 	 	 	 
	 	 	 	IN WITNESS WHEREOF, the parties have executed this Agreement as of date
first above written.

	 	 	 	 	 
	EMPLOYEE
	 	COMPANY
	 
	 	 	 	 
	/S/ Elyse Beth Silverberg

	 	By:
	 	/S/ Robert C. Goodwin, Jr.
	 

	 	 	 	 
	Name: Elyse Beth Silverberg

	 	 	 	Name: Robert C. Goodwin, Jr.

Title:   Executive Vice Presidentexv10w18

 

Exhibit 10.18

AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

         This agreement, dated as of November 1, 2004, amends the Employment
Agreement (the “Agreement”) dated as of September 1, 2001, between U.S.-China
Industrial Exchange, Inc. and Lawrence Pemble.

	 	1.	 	The first paragraph of the Agreement is amended to read as follows:
	 	 	 	 
	 	 	 	“This Employment Agreement dated as of September 1, 2001, between Chindex
International, Inc., a Delaware Corporation currently having an address
at 7201 Wisconsin Avenue, Bethesda, Maryland 20815 (the “Company”) and
Lawrence Pemble, an individual residing at 499 Hinton Cemetary Road,
Sadieville, KY 40370 (“Employee”).”
	 	 	 	 
	 	2.	 	Paragraph (a) of Section 5 of the Agreement is amended by deleting the
words “One Hundred and Seventy One Thousand Dollars ($171,000) per year”
and substituting therefor the words “One Hundred and Ninety Five Thousand
Dollars ($195,000) per year.”
	 	 	 	 
	 	 	 	IN WITNESS WHEREOF, the parties have executed this Agreement as of date
first above written.

	 	 	 	 	 
	EMPLOYEE
	 	COMPANY
	 
	 	 	 	 
	/S/ Lawrence Pemble

	 	By:
	 	/S/ Robert C. Goodwin, Jr.
	 

	 	 	 	 
	Name: Lawrence Pemble

	 	 	 	Name: Robert C. Goodwin, Jr.

Title:   Executive Vice Presidentexv10w19

 

Exhibit 10.19

AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

         This agreement, dated as of November 1, 2004, amends the Employment
Agreement (the “Agreement”) dated as of September 1, 2001, between U.S.-China
Industrial Exchange, Inc. and Robert C. Goodwin, Jr.

	 	1.	 	The first paragraph of the Agreement is amended to read as follows:
	 	 	 	 
	 	 	 	“This Employment Agreement dated as of September 1, 2001, between Chindex
International, Inc., a Delaware Corporation currently having an address
at 7201 Wisconsin Avenue, Bethesda, Maryland 20815 (the “Company”) and
Robert C. Goodwin, Jr., an individual residing at 3710 Bradley Lane,
Chevy Chase, MD 20815 (“Employee”).”
	 	 	 	 
	 	2.	 	Paragraph (a) of Section 5 of the Agreement is amended by deleting the
words “One Hundred and Sixty Eight Thousand Dollars ($168,000) per year”
and substituting therefor the words “One Hundred and Ninety Thousand
Dollars ($190,000) per year.”
	 	 	 	 
	 	 	 	IN WITNESS WHEREOF, the parties have executed this Agreement as of date
first above written.

	 	 	 	 	 
	EMPLOYEE
	 	COMPANY
	 
	 	 	 	 
	/S/ Robert C. Goodwin, Jr.

	 	By:
	 	/S/ Lawrence Pemble
	 

	 	 	 	 
	Name: Robert C. Goodwin, Jr.

	 	 	 	Name: Lawrence Pemble

Title:   Executive Vice Presidentexv10w1

 

Exhibit 10.1

THE HILLMAN COMPANIES INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN

 

 

 

 

 

 

 

 

 

 

 

THE HILLMAN COMPANIES INC NONQUALIFIED DEFERRED COMPENSATION PLAN

Amended and Restated effective as of January 1, 2003

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 1	 	 	 	 
	 
	 	 	 	DEFINITIONS	 	 	 	 
	 
	 	1.1	 	ACCOUNT	 	 	1	 
	 
	 	1.2	 	BENEFICIAL OWNER	 	 	1	 
	 
	 	1.3	 	BENEFICIARY	 	 	1	 
	 
	 	1.4	 	BOARD	 	 	1	 
	 
	 	1.5	 	CHANGE OF CONTROL	 	 	1	 
	 
	 	1.6	 	CODE	 	 	2	 
	 
	 	1.7	 	COMPENSATION	 	 	2	 
	 
	 	1.8	 	COMPENSATION DEFERRALS	 	 	2	 
	 
	 	1.9	 	DESIGNATION DATE	 	 	2	 
	 
	 	1.10	 	EFFECTIVE DATE	 	 	2	 
	 
	 	1.11	 	ELIGIBLE EMPLOYEE	 	 	2	 
	 
	 	1.12	 	EMPLOYER	 	 	2	 
	 
	 	1.13	 	ENTRY DATE	 	 	2	 
	 
	 	1.14	 	EXCHANGE ACT	 	 	2	 
	 
	 	1.15	 	PARTICIPANT	 	 	2	 
	 
	 	1.16	 	PARTICIPANT ENROLLMENT AND ELECTION FORM	 	 	3	 
	 
	 	1.17	 	PLAN	 	 	3	 
	 
	 	1.18	 	PLAN YEAR	 	 	3	 
	 
	 	1.19	 	TOTAL AND PERMANENT DISABILITY	 	 	3	 
	 
	 	1.20	 	TRUST	 	 	3	 
	 
	 	1.21	 	TRUSTEE	 	 	3	 
	 
	 	1.22	 	VALUATION DATE	 	 	3	 
	 
	 	1.23	 	YEAR OF SERVICE	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 2	 	 	 	 
	 
	 	 	 	ELIGIBILITY AND PARTICIPATION	 	 	 	 
	 
	 	2.1	 	REQUIREMENTS	 	 	3	 
	 
	 	2.2	 	RE-EMPLOYMENT	 	 	3	 
	 
	 	2.3	 	CHANGE OF EMPLOYMENT CATEGORY	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 3	 	 	 	 
	 
	 	 	 	CONTRIBUTIONS AND CREDITS	 	 	 	 
	 
	 	3.1	 	PARTICIPANT CONTRIBUTIONS AND CREDITS	 	 	4	 
	 
	 	 	 	(a)          Compensation Deferrals	 	 	4	 
	 
	 	 	 	(b)          Compensation Deferral Account	 	 	4	 
	 
	 	3.2	 	EMPLOYER CONTRIBUTIONS	 	 	 	 
	 
	 	 	 	(a)          Employer Matching Contributions	 	 	4	 
	 
	 	 	 	(b)          Employer Contribution Account	 	 	4	 
	 
	 	 	 	(c)          Vesting in Employer Contributions	 	 	4	 
	 
	 	 	 	(d)          Forfeitures for Misconduct	 	 	5	 
	 
	 	3.3	 	CONTRIBUTIONS TO THE TRUST	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 4	 	 	 	 
	 
	 	 	 	ALLOCATION OF FUNDS	 	 	 	 
	 
	 	4.1	 	ALLOCATION OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS	 	 	5	 
	 
	 	4.2	 	ACCOUNTING FOR DISTRIBUTIONS	 	 	5	 
	 
	 	4.3	 	SEPARATE ACCOUNTS	 	 	6	 
	 
	 	4.4	 	INTERIM VALUATIONS	 	 	6	 
	 
	 	4.5	 	DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS	 	 	6	 
	 
	 	4.6	 	EXPENSES AND TAXES	 	 	7	 

 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 5	 	 	 	 
	 
	 	 	 	ENTITLEMENT TO BENEFITS	 	 	 	 
	 
	 	5.1	 	FIXED PAYMENT DATES; TERMINATION OF EMPLOYMENT	 	 	7	 
	 
	 	5.2	 	HARDSHIP DISTRIBUTIONS.	 	 	7	 
	 
	 	5.3	 	IMMEDIATE DISTRIBUTION ELECTION; TEN PERCENT PENALTY.	 	 	8	 
	 
	 	5.4	 	RE-EMPLOYMENT OF RECIPIENT	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 6	 	 	 	 
	 
	 	 	 	DISTRIBUTION OF BENEFITS	 	 	 	 
	 
	 	6.1	 	AMOUNT	 	 	8	 
	 
	 	6.2	 	METHOD OF PAYMENT	 	 	8	 
	 
	 	 	 	
(a)          Cash Or In-Kind Payments	 	 	8	 
	 
	 	 	 	(b)          Timing and Manner of Payment	 	 	8	 
	 
	 	6.3	 	DEATH OR DISABILITY BENEFITS	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 7	 	 	 	 
	 
	 	 	 	BENEFICIARIES; PARTICIPANT DATA	 	 	 	 
	 
	 	7.1	 	DESIGNATION OF BENEFICIARIES	 	 	9	 
	 
	 	7.2	 	INFORMATION TO BE FURNISHED BY PARTICIPANTS AND	 	 	 	 
	 
	 	 	 	BENEFICIARIES; INABILITY TO LOCATE PARTICIPANTS OR BENEFICIARIES	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 8	 	 	 	 
	 
	 	 	 	ADMINISTRATION	 	 	 	 
	 
	 	8.1	 	ADMINISTRATIVE AUTHORITY	 	 	10	 
	 
	 	8.2	 	UNIFORMITY OF DISCRETIONARY ACTS	 	 	10	 
	 
	 	8.3	 	LITIGATION	 	 	10	 
	 
	 	8.4	 	CLAIMS PROCEDURE	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 ARTICLE 9	 	 	 	 
	 
	 	 	 	 AMENDMENT	 	 	 	 
	 
	 	9.1	 	RIGHT TO AMEND	 	 	11	 
	 
	 	9.2	 	AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 ARTICLE 10	 	 	 	 
	 
	 	 	 	TERMINATION	 	 	 	 
	 
	 	10.1	 	EMPLOYER'S RIGHT TO TERMINATE OR SUSPEND PLAN	 	 	12	 
	 
	 	10.2	 	AUTOMATIC TERMINATION OF PLAN	 	 	12	 
	 
	 	10.3	 	SUSPENSION OF DEFERRALS	 	 	12	 
	 
	 	10.4	 	ALLOCATION AND DISTRIBUTION	 	 	12	 
	 
	 	10.5	 	SUCCESSOR TO EMPLOYER	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 11	 	 	 	 
	 
	 	 	 	THE TRUST	 	 	 	 
	 
	 	11.1	 	ESTABLISHMENT OF TRUST	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	ARTICLE 12	 	 	 	 
	 
	 	 	 	MISCELLANEOUS	 	 	 	 
	 
	 	12.1	 	LIMITATIONS ON LIABILITY OF EMPLOYER	 	 	13	 
	 
	 	12.2	 	CONSTRUCTION	 	 	13	 
	 
	 	12.3	 	SPENDTHRIFT PROVISION	 	 	13	 

 

 

THE HILLMAN COMPANIES INC. NONQUALIFIED DEFERRED COMPENSATION PLAN

Amended and Restated effective as of January 1, 2003

RECITALS

     The SunSource, Inc. Nonqualified Deferred Compensation Plan effective as
of August 1, 2000 is hereby amended and restated as The Hillman Companies Inc.
Nonqualified Deferred Compensation Plan (“Plan”) and hereby adopted by The
Hillman Companies Inc. (“Employer”). The purpose of the Plan is to offer those
employees an opportunity to elect to defer the receipt of compensation in order
to provide termination of employment and related benefits taxable pursuant to
section 451 of the Internal Revenue Code of 1986, as amended (the “Code”). The
Plan is intended to be a “top-hat” plan (i.e., an unfunded deferred
compensation plan maintained for a select group of management or
highly-compensated employees) under sections 201(2), 301(a)(3) and 401(a)(1) of
the Employee Retirement Income Security Act of 1974 (“ERISA”).

     Accordingly, the following Plan is amended and restated.

ARTICLE 1

DEFINITIONS

     1.1     ACCOUNT means the balance credited to a Participant’s or Beneficiary’s
Plan account, including amounts credited under the Compensation Deferral
Account and, if applicable, the vested and/or unvested portion(s) of the
Employer Contribution Account. A Participant’s or Beneficiary’s Account shall
be determined as of the date of reference.

     1.2     BENEFICIAL OWNER and the correlative term “Beneficially Own”
are used herein within the meaning of Rule 13d-3 under the Exchange
Act.

     1.3     BENEFICIARY means any person or person so designated in accordance
with the provisions of Article 7.

     1.4     BOARD means the Board of Directors of the Employer.

     1.5     CHANGE OF CONTROL means the occurrence of any of the following
events:

	 	(a)	 	Any “person” (as such term is used in Sections
3(a)(9) and 13(d)(3) of he Exchange Act) other than the
management group of Maurice Andrien, Joseph M. Corvino, and
Max W. Hillman, becomes a Beneficial Owner, directly or
indirectly, of securities of the Employer representing 20% or
more of the then outstanding securities of the Employer.
	 
	 	(b)	 	(1) A transaction is approved in which the
stockholders of the Employer immediately before the
transaction will not Beneficially Own, immediately after the
transaction, shares entitling such stockholders to 75% or
more of all votes to which all stockholders of the surviving
entity would be entitled in the election of directors or
other governing persons (excluding any election of directors
by a separate class vote), or where the members of the Board,
immediately prior to the transaction, would not, immediately
after the transaction, constitute a majority of the board of
directors of the surviving entity, (2) the sale or other
disposition of all or substantially all of the assets of the
Employer or it’s respective successors in interest or (3) a
liquidation or dissolution of the Employer, or it’s
respective successors in interest; provided, however, that
any such

1

 

	 	 	 	action shall not constitute a change of control so long as
the Employer continues to own directly or indirectly,
substantially all of the assets thereof.
	 
	 	(c)	 	Any person has commenced a tender offer or
exchange offer for 20% or more of the voting power of the
then outstanding shares of the Employer; or
	 
	 	(d)	 	A majority of the Board shall cease for any
reason to consist of (1) individuals who on the effective
date hereof are serving as directors of the Employer, or (2)
individuals who subsequently become members of the Board and
whose nomination for election or election to the Board is
recommended or approved by a majority of the Board.

     1.6     CODE means the Internal Revenue Code of 1986 and the regulations
thereunder, as amended from time to time.

     1.7     COMPENSATION means the total current cash remuneration, including
regular salary, bonus awards and commission paid by the Employer to an Eligible
Employee with respect to his or her service for the Employer (as determined by
the Employer, in its discretion), including any Compensation Deferrals in this
Plan or any 401(k) plan or section 125 plan maintained by the Employer.

     1.8     COMPENSATION DEFERRALS is defined in Section 3.1(a).

     1.9     DESIGNATION DATE means the date or dates as of which a designation of
deemed investment directions by an individual pursuant to Section 4.5, or any
change in a prior designation of deemed investment directions by an individual
pursuant to Section 4.5, shall become effective. The Designation Dates in any
Plan Year shall be designated by the Employer.

     1.10     EFFECTIVE DATE means the effective date of the amended and restated
Plan, which shall be January 1, 2003.

     1.11     ELIGIBLE EMPLOYEE and the correlative term “Employee” means, for any
Plan Year (or applicable portion thereof), a person employed by the Employer,
who is determined by the Employer to be a member of a select group of
management or highly compensated employees of the Employer and who is
designated by the Employer’s Board of Directors to be an Eligible Employee
under the Plan. By each November 1, the Employer shall notify those
individuals, if any, who will be Eligible Employees for the next Plan Year. If
the Employer determines that an individual first becomes an Eligible Employee
during a Plan Year, the Employer shall notify such individual of its
determination and of the date during the Plan Year on which the individual
shall first become an Eligible Employee.

     1.12     EMPLOYER means The Hillman Companies Inc. and its successors and
assigns unless otherwise herein provided, or any other corporation or business
organization which, with the consent of The Hillman Companies Inc., or its
successors or assigns, assumes the Employer’s obligations hereunder, or any
other corporation or business organization which agrees, with the consent of
The Hillman Companies Inc., to become a party to the Plan.

     1.13     ENTRY DATE with respect to an individual means the first day of the
pay period following the date on which the individual first becomes an Eligible
Employee.

     1.14     EXCHANGE ACT means Securities Exchange Act of 1934, as amended.

     1.15     PARTICIPANT means any person so designated in accordance with the
provisions of Article 2, including, where appropriate according to the context
of the Plan, any

2

 

former employee who is or may become (or whose Beneficiaries may become)
eligible to receive a benefit under the Plan.

     1.16     PARTICIPANT ENROLLMENT AND ELECTION FORM means the form or forms on
which a Participant elects to defer Compensation hereunder and on which the
Participant makes certain other designations as required thereon.

     1.17     PLAN means The Hillman Companies Inc. Nonqualified Deferred
Compensation Plan, as amended from time to time.

     1.18     PLAN YEAR means the twelve (12) month period ending on the December
31 of each year during which the Plan is in effect.

     1.19     TOTAL AND PERMANENT DISABILITY means the inability to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment that may be expected to result in death or which has
lasted or can be expected to last for a continuous period of not less than 12
months. The permanence and degree of such impairment shall be supported by
medical evidence. Disability will be determined to exist if the Participant is
receiving disability benefits under the Social Security Act or Railroad
Retirement Act.

     1.20     TRUST means the Trust described in Article 11.

     1.21     TRUSTEE means the trustee of the Trust described in Article 11.

     1.22     VALUATION DATE means the last day of each Plan Year and any other
date that the Employer, in its sole discretion, designates as a Valuation Date.

     1.23     YEAR OF SERVICE means the 12 consecutive month period measured by an
Eligible Employee’s date of hire and anniversaries each thereof during which
the Eligible Employee is a full-time employee of the Employer and at least
twenty-one (21) years of age.

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

     2.1     REQUIREMENTS. Every Eligible Employee on the Effective Date shall be
eligible to become a Participant on the Effective Date. Every other Eligible
Employee shall be eligible to become a Participant on the first Entry Date
occurring on or after the date on which he or she becomes an Eligible Employee.
No individual shall become a Participant, however, if he or she is not an
Eligible Employee on the date his or her participation is to begin.

               Participation in the Plan is voluntary. In order to participate in the
Plan, an otherwise Eligible Employee must make written application in such
manner as may be required by Section 3.1 and by the Employer and must agree to
make Compensation Deferrals as provided in Article 3.

     2.2     RE-EMPLOYMENT. If a Participant whose employment with the Employer is
terminated is subsequently re-employed, he or she shall become a Participant in
accordance with the provisions of Section 2.1.

     2.3     CHANGE OF EMPLOYMENT CATEGORY. During any period in which a
Participant remains in the employ of the Employer, but ceases to be an Eligible
Employee, he or she shall not be eligible to make Compensation Deferrals
hereunder.

3

 

ARTICLE 3

CONTRIBUTIONS AND CREDITS

     3.1     PARTICIPANT CONTRIBUTIONS AND CREDITS.

               (a) Compensation Deferrals. In accordance with rules established by the
Employer, a Participant may elect to defer Compensation of up to 25% of his or
her base salary, up to 25% of commissions and up to 100% of bonuses which are
due to be earned and which would otherwise be paid to the Participant, in a
lump sum or in any fixed periodic dollar amounts designated by the Participant.
Amounts so deferred will be considered a Participant’s “Compensation
Deferrals.” Ordinarily, a Participant shall make such an election with respect
to the coming twelve (12) month Plan Year during the period beginning on the
November 1 and ending on the December 15 of the prior calendar year, or during
such other period as might be established by the Employer. In the event that
an employee becomes eligible to participate in the Plan during the Plan Year,
the maximum amount of Compensation that may be deferred shall be prorated
according to the number of days remaining in the Plan Year.

               Compensation Deferrals shall be made through regular payroll deductions or
through an election by the Participant to defer commission or bonus not yet
payable to him or her at the time of the election. Once made, a Compensation
Deferral election shall continue in force only for the Plan Year for which the
election is first effective and may not be increased or decreased.
Compensation Deferrals shall be deducted by the Employer from the pay of a
deferring Participant and shall be credited to the Account of the deferring
Participant.

               (b) Compensation Deferral Account. There shall be established and
maintained by the Employer a separate Account in the name of each Participant
to which shall be credited or debited: (a) amounts equal to the Participant’s
Compensation Deferrals and (b) amounts equal to any deemed earnings or losses
(to the extent realized, based upon deemed fair market value of the Account’s
deemed assets, as determined by the Employer, in its discretion) attributable
or allocable thereto.

               A Participant shall at all times be 100% vested in amounts credited to his
or her Deferred Compensation Account.

     3.2     EMPLOYER CONTRIBUTIONS.

               (a) Employer Matching Contributions. Apart from Compensation deferrals,
the Employer shall make a 25% matching contributions up to $10,000 of a
Compensation Deferral according to the following schedule for each Participant
under this Plan.

	 	 	 	 	 
	Deferral Amount	 	Employer Matching Contribution
	Per Plan Year
	 	% Per Plan Year

	 Up
to $10,000
	 	 	25	%
	Above $10,000
	 	 	0 	%

               (b) Employer Contribution Account. There shall be established and
maintained by the Employer a separate Account in the name of each Participant
to which shall be credited or debited: (a) amounts equal to the Participant’s
Employer Matching Contributions and (b) amounts equal to any deemed earnings or
losses (to the extent realized, based upon deemed fair market value of the
Account’s deemed assets, as determined by the Employer, in its discretion)
attributable or allocable thereto.

               (c) Vesting in Employer Contributions. An Employee shall vest in amounts
allocated to his or her Account in accordance with the vesting schedule
provided below. Additionally, an Employee shall be 100% vested in his or her
Account, if on or before his or her

4

 

termination of employment, the Participant dies, experiences a Total and
Permanent Disability, or due to a Change in Control. Upon termination of
employment, the Participant shall irrevocably forfeit any unvested portion(s)
of his or her Employer Contribution Account.

	 	 	 	 	 
	Years of Service
	 	Vested Percentage

	Less than 1
	 	 	0 	%
	1, but less than 2
	 	 	20 	%
	2, but less than 3
	 	 	40 	%
	3, but less than 4
	 	 	60 	%
	4, but less than 5
	 	 	80 	%
	5 or more
	 	 	100 	%

               (d) Forfeitures for Misconduct If an employee terminates employment with
the Employer as a result of the employee’s gross misconduct, within the meaning
of Part 6 of Title I of ERISA, regarding group health continuation coverage, or
if the employee engages in unlawful business competition with the Employer, the
employee shall forfeit all amounts allocated to his or her Employer
Contribution Account(s) under Section 3.2(a), 3.2 (b), and 3.2(c) above. Such
forfeitures shall be retained by the Employer.

     3.3     CONTRIBUTIONS TO THE TRUST. An amount shall be contributed by the
Employer to the Trust maintained under Section 11.1 equal to the amount(s)
required to be credited to the Participant’s Account under Sections 3.1 and
3.2. The Employer shall make a good faith effort to contribute these amounts
to the Trust as soon as practicable following the date on which the
contribution credit amount(s) are determined.

     ARTICLE
4

ALLOCATION OF FUNDS

     4.1     ALLOCATION OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS. Subject to
Section 4.5, each Participant shall have the right to direct the Employer as to
how amounts in his or her Plan Account shall be deemed to be invested. Subject
to such limitations as may from time to time be required by law, imposed by the
Employer or the Trustee or contained elsewhere in the Plan, and subject to such
operating rules and procedures as may be imposed from time to time by the
Employer, prior to the date on which a direction will become effective, the
Participant shall have the right to direct the Employer as to how amounts in
his or her Account shall be deemed to be invested. The Employer shall direct
the Trustee to invest the account maintained in the Trust on behalf of the
Participant pursuant to the deemed investment directions the Employer properly
has received from the Participant.

               The value of the Participant’s Account shall be equal to the value of the
account maintained under the Trust on behalf of the Participant. As of each
Valuation Date of the Trust, the Participant’s Account will be credited or
debited to reflect the Participant’s deemed investments of the Trust. The
Participant’s Plan Account will be credited or debited with the increase or
decrease in the realizable net asset value or credited interest, as applicable,
of the designated deemed investments, as follows. As of each Valuation Date,
an amount equal to the net increase or decrease in realizable net asset value
or credited interest, as applicable (as determined by the Trustee), of each
deemed investment option within the Account since the preceding Valuation Date
shall be allocated among all Participants’ Accounts deemed to be invested in
that investment option in accordance with the ratio which the portion of the
Account of each Participant which is deemed to be invested within that
investment option, determined as provided herein, bears to the aggregate of all
amounts deemed to be invested within that investment option.

     4.2     ACCOUNTING FOR DISTRIBUTIONS. As of the date of any distribution
hereunder, the distribution made hereunder to the Participant or his or her
Beneficiary or Beneficiaries shall be charged to such Participant’s Account.
Such amounts shall be charged on

5

 

a pro rata basis against the investments of the Trust in which the
Participant’s Account is deemed to be invested.

     4.3     SEPARATE ACCOUNTS. A separate account under the Plan shall be
established and maintained by the Employer to reflect the Account for each
Participant with sub-accounts to show separately the deemed earnings and losses
credited or debited to such Account, and the applicable deemed investments of
the Account.

     4.4     INTERIM VALUATIONS. If it is determined by the Employer that the
value of a Participant’s Account as of any date on which distributions are to
be made differs materially from the value of the Participant’s Account on the
prior Valuation Date upon which the distribution is to be based, the Employer,
in its discretion, shall have the right to designate any date in the interim as
a Valuation Date for the purpose of revaluing the Participant’s Account so that
the Account will, prior to the distribution, reflect its share of such material
difference in value.

     4.5     DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS. Subject to such
limitations as may from time to time be required by law, imposed by the
Employer or the Trustee or contained elsewhere in the Plan, and subject to such
operating rules and procedures as may be imposed from time to time by the
Employer, prior to and effective for each Designation Date, each Participant
may communicate to the Employer a direction (in accordance with (a), below) as
to how his or her Plan Account(s) should be deemed to be invested among such
categories of deemed investments as may be made available by the Employer
hereunder. Such direction shall designate the percentage (in any whole percent
multiples) of each portion of the Participant’s Plan Account(s) which is
requested to be deemed to be invested in such categories of deemed investments,
and shall be subject to the following rules:

               (a) Any initial or subsequent deemed investment direction shall be in
writing, on a form supplied by and filed with the Employer, and/or, as required
or permitted by the Employer, shall be by oral designation and/or electronic
transmission designation. A designation shall be effective as of the
Designation Date next following the date the direction is received and accepted
by the Employer on which it would be reasonably practicable for the Employer to
effect the designation.

               (b) All amounts credited to the Participant’s Account shall be deemed to
be invested in accordance with the then effective deemed investment direction,
and as of the Designation Date with respect to any new deemed investment
direction, all or a portion of the Participant’s Account at that date shall be
reallocated among the designated deemed investment funds according to the
percentages specified in the new deemed investment direction unless and until a
subsequent deemed investment direction shall be filed and become effective. An
election concerning deemed investment choices shall continue indefinitely as
provided in the Participant’s most recent Participant Enrollment and Election
Form, or other form specified by the Employer.

               (c) If the Employer receives an initial or revised deemed investment
direction which it deems to be incomplete, unclear or improper, the
Participant’s investment direction then in effect shall remain in effect (or,
in the case of a deficiency in an initial deemed investment direction, the
Participant shall be deemed to have filed no deemed investment direction) until
the next Designation Date, unless the Employer provides for, and permits the
application of, corrective action prior thereto.

               (d) If the Employer possesses (or is deemed to possess as provided in (c),
above) at any time directions as to the deemed investment of less than all of a
Participant’s Account, the Participant shall be deemed to have directed that
the undesignated portion of the Account be deemed to be invested in a money
market, fixed income or similar fund made available under the Plan as
determined by the Employer in its discretion.

6

 

               (e) Each Participant hereunder, as a condition to his or her participation
hereunder, agrees to indemnify and hold harmless the Employer and its agents
and representatives from any losses or damages of any kind relating to the
deemed investment of the Participant’s Account hereunder.

               (f) Each reference in this Section to a Participant shall be deemed to
include, where applicable, a reference to a Beneficiary.

     4.6     EXPENSES AND TAXES. Expenses, including Trustee fees, associated with
the administration or operation of the Plan shall be debited from the Trust
account. Any taxes allocable to an Account (or portion thereof) maintained
under the Plan which are payable prior to the distribution of the Account (or
portion thereof), as determined by the Employer, shall be paid by the Employer.

ARTICLE 5

ENTITLEMENT TO BENEFITS

     5.1     FIXED PAYMENT DATES; TERMINATION OF EMPLOYMENT. On his or her
Participant Enrollment and Election Form, a Participant may select a fixed
payment date for the payment of his or her Account, which will be valued and
payable according to the provisions of Article 6. Such payment dates may be
extended to later dates so long as elections to so extend the dates are made by
the Participant at least twelve (12) months prior to the date on which the
distribution is to be made or commence. Such payment dates may not be
accelerated.

               A Participant who selects payment of his or her Account on a fixed date
shall receive payment of his or her Account at the earlier of such fixed
payment date or dates (as extended, if applicable) or his or her termination of
employment with the Employer.

               Any fixed payment date elected by a Participant as provided above must be
a date no earlier than the latter of (a) January 1 of the calendar year after
the calendar year for which the election is effective, or (b) a date at least
twelve (12) months after the election date.

               If a Participant does not make an election as provided above for any
particular amounts hereunder, and the Participant terminates employment with
the Employer for any reason, the Participant’s vested Account at the date of
such termination shall be valued and payable at or commencing at such
termination according to the provisions of Article 6.

     5.2     HARDSHIP DISTRIBUTIONS. In the event of financial hardship of the
Participant, as hereinafter defined, the Participant may apply to the Employer
for the distribution of all or any part of his or her vested Account. The
Employer shall consider the circumstances of each such case, and the best
interests of the Participant and his or her family, and shall have the right,
in its sole discretion, if applicable, to allow such distribution, or, if
applicable, to direct a distribution of part of the amount requested, or to
refuse to allow any distribution. Upon a finding of financial hardship, the
Employer shall make the appropriate distribution to the Participant from
amounts held by the Employer in respect of the Participant’s vested Account. In
no event shall the aggregate amount of the distribution exceed either the full
value of the Participant’s vested Account or the amount determined by the
Employer to be necessary to alleviate the Participant’s financial hardship
(which financial hardship may be considered to include any taxes due because of
the distribution occurring because of this Section), and which is not
reasonably available from other resources of the Participant. For purposes of
this Section, the value of the Participant’s vested Account shall be determined
as of the date of the distribution. “Financial hardship” means (a) a severe
financial hardship to the Participant resulting from a sudden and unexpected
illness or accident of the Participant or of a dependent (as defined in Code
section 152(a)) of the Participant, (b) loss of the Participant’s property due
to casualty, or (c) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the

7

 

Participant, each as determined to exist by the Employer. A distribution
may be made under this Section only with the consent of the Employer.

     5.3     IMMEDIATE DISTRIBUTION ELECTION; TEN PERCENT PENALTY. In addition to
a Participant’s option to have payment or commencement of payment of his or her
vested account occur on the fixed payment date described in Section 5.1 or on
the Participant’s termination of employment as described in Section 5.1, a
Participant may elect to have his or her vested Account (or a portion thereof)
paid or commence to be paid as soon as possible upon his or her election. For
purposes of this Section, the value of the Participant’s vested Account shall
be determined as of the date of the distribution. Any amount paid pursuant to
this Section shall be subject to a ten percent (10%) penalty, with the amount
of the penalty being returned to the Employer (which may be used to offset or
reduce Employer Contributions and Plan expenses). In the event of an immediate
distribution elected under this Section, the ten percent (10%) penalty on the
entire vested portion of the account to be distributed under this Section
shall be returned to the Employer on or about the date of the distribution.

     5.4     RE-EMPLOYMENT OF RECIPIENT. If a Participant receiving installment
distributions pursuant to Section 6.2 is re-employed by the Employer, the
remaining distributions due to the Participant shall be suspended until such
time as the Participant (or his or her Beneficiary) once again becomes eligible
for benefits under Section 5.1 or 5.2, at which time such distribution shall
commence, subject to the limitations and conditions contained in this Plan.

ARTICLE 6

DISTRIBUTION OF BENEFITS

     6.1     AMOUNT. A Participant (or his or her Beneficiary) shall become
entitled to receive, on or about earlier of the Participant’s termination of
employment with the Employer or the date or dates selected by the Participant
on his or her Participant Enrollment and Election Form (or, if no such
selection is made, on or about the date of the Participant’s termination of
employment with the Employer) (or earlier as provided in Article 5), a
distribution in an aggregate amount equal to the Participant’s vested Account.
Any payment due hereunder from the Trust which is not paid by the Trust for any
reason will be paid by the Employer from its general assets.

     6.2     METHOD OF PAYMENT.

       
        (a) Cash Or
In-Kind Payments. Payments under the Plan shall be made in
cash or in-kind, as elected by the Participant, as permitted by the Employer in
its sole and absolute discretion and subject to applicable restrictions on
transfer as may be applicable legally or contractually.

  
             (b) Timing
and Manner of Payment. In the case of distributions to a
Participant by virtue of an entitlement due to termination of employment, an
aggregate amount equal to the Participant’s vested Account will be paid by the
Trust or the Employer, as provided in Section 6.1, in a lump sum or in five
(5), ten (10), or fifteen (15) substantially equal annual installments
(adjusted for gains and losses), as selected by the Participant as provided in
Article 5. If a Participant fails to designate properly the manner of payment
of the Participant’s benefit under the Plan, such payment will be in a lump
sum. At any time no less than twelve (12) months prior to his or her
termination of employment, the Participant may, by delivering written
designation (on a form provided by the Employer) to the Employer, change the
manner of payment for such amounts he or she would become entitled to upon
termination of employment.

               In the case of distributions to the Participant by virtue of an
entitlement due to the election of a Fixed Payment Date, the applicable vested
portion of the Participant’s Account shall be paid in a lump sum as soon as
administratively practicable after such date. Fixed Payments shall be valued
paid in on the first day of each Plan Year, or as soon as administratively
practicable thereafter.

8

 

               If the whole or any part of a payment hereunder is to be in installments,
the total to be so paid shall continue to be deemed to be invested pursuant to
Sections 4.1 and 4.5 under such procedures as the Employer may establish, in
which case any deemed income, gain, loss or expense or tax allocable thereto
(as determined by the Trustee, in its discretion) shall be reflected in the
installment payments, in such equitable manner as the Trustee shall determine.

     6.3     DEATH OR DISABILITY BENEFITS. If a Participant dies or experiences a
Total and Permanent Disability before terminating his or her employment with
the Employer and before the commencement of payments to the Participant
hereunder, the entire value of the Participant’s Account shall be paid, at the
time(s) selected by the Participant under Article 5 and in the manner provided
in Section 6.2, to the person or persons designated in accordance with Section
7.1.

     Upon the death of a Participant after payments hereunder have begun but
before he or she has received all payments to which he or she is entitled under
the Plan, the remaining benefit payments shall be paid to the person or persons
designated in accordance with Section 7.1, in the manner in which such benefits
were payable to the Participant.

ARTICLE 7

BENEFICIARIES; PARTICIPANT DATA

     7.1     DESIGNATION OF BENEFICIARIES. Each Participant from time to time may
designate any person or persons (who may be named contingently or successively)
to receive such benefits as may be payable under the Plan upon or after the
Participant’s death, and such designation may be changed from time to time by
the Participant by filing a new designation. Each designation will revoke all
prior designations by the same Participant, shall be in a form prescribed by
the Employer, and will be effective only when filed in writing with the
Employer during the Participant’s lifetime.

               In the absence of a valid Beneficiary designation, or if, at the time any
benefit payment is due to a Beneficiary, there is no living Beneficiary validly
named by the Participant, the Employer shall pay any such benefit payment to
the Participant’s spouse, if then living, but otherwise to the Participant’s
then living descendants, if any, per stirpes, but, if none, to the
Participant’s estate. In determining the existence or identity of anyone
entitled to a benefit payment, the Employer may rely conclusively upon
information supplied by the Participant’s personal representative, executor or
administrator. If a question arises as to the existence or identity of anyone
entitled to receive a benefit payment as aforesaid, or if a dispute arises with
respect to any such payment, then, notwithstanding the foregoing, the Employer,
in its sole discretion, may distribute such payment to the Participant’s estate
without liability for any tax or other consequences which might flow there
from, or may take such other action as the Employer deems to be appropriate.

     7.2     INFORMATION TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES;
INABILITY TO LOCATE PARTICIPANTS OR BENEFICIARIES. Any communication,
statement or notice addressed to a Participant or to a Beneficiary at his or
her last post office address as shown on the Employer’s records shall be
binding on the Participant or Beneficiary for all purposes of the Plan. The
Employer shall not be obliged to search for any Participant or Beneficiary
beyond the sending of a registered letter to such last known address. If the
Employer notifies any Participant or Beneficiary that he or she is entitled to
an amount under the Plan and the Participant or Beneficiary fails to claim such
amount or make his or her location known to the Employer within three (3) years
thereafter, then, except as otherwise required by law, if the location of one
or more of the next of kin of the Participant is known to the Employer, the
Employer may direct distribution of such amount to any one or more or all of
such next of kin, and in such proportions as the Employer determines. If the
location of none of the foregoing persons can be determined, the Employer shall
have the right to direct that the amount payable shall be deemed to be a
forfeiture, except that the dollar amount of the forfeiture, unadjusted for

9

 

deemed gains or losses in the interim, shall be paid by the Employer if a
claim for the benefit subsequently is made by the Participant or the
Beneficiary to whom it was payable. If a benefit payable to an unlocated
Participant or Beneficiary is subject to escheat pursuant to applicable state
law, the Employer shall not be liable to any person for any payment made in
accordance with such law.

ARTICLE 8

ADMINISTRATION

     8.1     ADMINISTRATIVE AUTHORITY. Except as otherwise specifically provided
herein, the Employer shall have the sole responsibility for and the sole
control of the operation and administration of the Plan, and shall have the
power and authority to take all action and to make all decisions and
interpretations which may be necessary or appropriate in order to administer
and operate the Plan, including, without limiting the generality of the
foregoing, the power, duty and responsibility to:

               (a) Resolve and determine all disputes or questions arising under the
Plan, and to remedy any ambiguities, inconsistencies or omissions in the Plan.

               (b) Adopt such rules of procedure and regulations as in its opinion may be
necessary for the proper and efficient administration of the Plan and as are
consistent with the Plan.

               (c) Implement the Plan in accordance with its terms and the rules and
regulations adopted as above.

               (d) Make determinations with respect to the eligibility of any Eligible
Employee as a Participant and make determinations concerning the crediting of
Plan Accounts.

               (e) Appoint any persons or firms, or otherwise act to secure specialized
advice or assistance, as it deems necessary or desirable in connection with the
administration and operation of the Plan, and the Employer shall be entitled to
rely conclusively upon, and shall be fully protected in any action or omission
taken by it in good faith reliance upon, the advice or opinion of such firms or
persons. The Employer shall have the power and authority to delegate from time
to time by written instrument all or any part of its duties, powers or
responsibilities under the Plan, both ministerial and discretionary, as it
deems appropriate, to any person or committee, and in the same manner to revoke
any such delegation of duties, powers or responsibilities. Any action of such
person or committee in the exercise of such delegated duties, powers or
responsibilities shall have the same force and effect for all purposes
hereunder as if such action had been taken by the Employer. Further, the
Employer may authorize one or more persons to execute any certificate or
document on behalf of the Employer, in which event any person notified by the
Employer of such authorization shall be entitled to accept and conclusively
rely upon any such certificate or document executed by such person as
representing action by the Employer until such notified person shall have been
notified of the revocation of such authority.

     8.2     UNIFORMITY OF DISCRETIONARY ACTS. Whenever in the administration or
operation of the Plan discretionary actions by the Employer are required or
permitted, such actions shall be consistently and uniformly applied to all
persons similarly situated, and no such action shall be taken which shall
discriminate in favor of any particular person or group of persons.

     8.3     LITIGATION. Except as may be otherwise required by law, in any action
or judicial proceeding affecting the Plan, no Participant or Beneficiary shall
be entitled to any notice or service of process, and any final judgment entered
in such action shall be binding on all persons interested in, or claiming
under, the Plan.

10

 

     8.4     CLAIMS PROCEDURE. Any person claiming a benefit under the Plan (a
“Claimant”) shall present the claim, in writing, to the Employer, and the
Employer shall respond in writing. If the claim is denied, the written notice
of denial shall state, in a manner calculated to be understood by the Claimant:

               (a) The specific reason or reasons for the denial, with specific
references to the Plan provisions on which the denial is based;

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

               (c) An explanation of the Plan’s claims review procedure.

               The written notice denying or granting the Claimant’s claim shall be
provided to the Claimant within ninety (90) days after the Employer’s receipt
of the claim, unless special circumstances require an extension of time for
processing the claim. If such an extension is required, written notice of the
extension shall be furnished by the Employer to the Claimant within the initial
ninety (90) day period and in no event shall such an extension exceed a period
of ninety (90) days from the end of the initial ninety (90) day period. Any
extension notice shall indicate the special circumstances requiring the
extension and the date on which the Employer expects to render a decision on
the claim. Any claim not granted or denied within the period noted above shall
be deemed to have been denied.

               Any Claimant whose claim is denied, or deemed to have been denied under
the preceding sentence (or such Claimant’s authorized representative), may,
within sixty (60) days after the Claimant’s receipt of notice of the denial, or
after the date of the deemed denial, request a review of the denial by notice
given, in writing, to the Employer. Upon such a request for review, the claim
shall be reviewed by the Employer (or its designated representative) which may,
but shall not be required to, grant the Claimant a hearing. In connection with
the review, the Claimant may have representation, may examine pertinent
documents, and may submit issues and comments in writing.

               The decision on review normally shall be made within sixty (60) days of
the Employer’s receipt of the request for review. If an extension of time is
required due to special circumstances, the Claimant shall be notified, in
writing, by the Employer, and the time limit for the decision on review shall
be extended to one hundred twenty (120) days. The decision on review shall be
in writing and shall state, in a manner calculated to be understood by the
Claimant, the specific reasons for the decision and shall include references to
the relevant Plan provisions on which the decision is based. The written
decision on review shall be given to the Claimant within the sixty (60) day
(or, if applicable, the one hundred twenty (120) day) time limit discussed
above. If the decision on review is not communicated to the Claimant within
the sixty (60) day (or, if applicable, the one hundred twenty (120) day) period
discussed above, the claim shall be deemed to have been denied upon review.
All decisions on review shall be final and binding with respect to all
concerned parties.

ARTICLE 9

AMENDMENT

     9.1     RIGHT TO AMEND. The Employer, by action of its Board of Directors,
shall have the right to amend the Plan, at any time and with respect to any
provisions hereof, and all parties hereto or claiming any interest hereunder
shall be bound by such amendment; provided, however, that no such amendment
shall deprive a Participant or a Beneficiary of a right accrued hereunder prior
to the date of the amendment.

11

 

     9.2     AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN. Notwithstanding
the provisions of Section 9.1, the Plan may be amended by the Employer, by
action of its Board of Directors, at any time, retroactively if required, if
found necessary, in the opinion of the Employer, in order to ensure that the
Plan is characterized as “top-hat” plan of deferred compensation maintained for
a select group of management or highly compensated employees as described under
ERISA sections 201(2), 301(a)(3), and 401(a)(1), and to conform the Plan to the
provisions and requirements of any applicable law (including ERISA and the
Code). No such amendment shall be considered prejudicial to any interest of a
Participant or a Beneficiary hereunder.

ARTICLE 10

TERMINATION

     10.1     EMPLOYER’S RIGHT TO TERMINATE OR SUSPEND PLAN. The Employer reserves
the right to terminate the Plan and/or its obligation to make further credits
to Plan Accounts, by action of its Board of Directors. The Employer also
reserves the right to suspend the operation of the Plan for a fixed or
indeterminate period of time, by action of its Board of Directors.

     10.2     AUTOMATIC TERMINATION OF PLAN. The Plan automatically shall
terminate upon the dissolution of the Employer, or upon its merger into or
consolidation with any other corporation or business organization if there is a
failure by the surviving corporation or business organization to adopt
specifically and agree to continue the Plan.

     10.3     SUSPENSION OF DEFERRALS. In the event of a suspension of the Plan,
the Employer shall continue all aspects of the Plan, other than Compensation
Deferrals, during the period of the suspension, in which event payments
hereunder will continue to be made during the period of the suspension in
accordance with Articles 5 and 6.

     10.4     ALLOCATION AND DISTRIBUTION. This Section shall become operative on
a complete termination of the Plan. The provisions of this Section also shall
become operative in the event of a partial termination of the Plan, as
determined by the Employer, but only with respect to that portion of the Plan
attributable to the Participants to whom the partial termination is applicable.
Upon the effective date of any such event, notwithstanding any other
provisions of the Plan, no persons who were not theretofore Participants shall
be eligible to become Participants, the value of the interest of all
Participants and Beneficiaries shall be determined and, after deduction of
estimated expenses in liquidating and, if applicable, paying Plan benefits,
paid to them as soon as is practicable after such termination.

     10.5     SUCCESSOR TO EMPLOYER. Any corporation or other business
organization which is a successor to the Employer by reason of a consolidation,
merger or purchase of substantially all of the assets of the Employer shall
have the right to become a party to the Plan by adopting the same by resolution
of the entity’s board of directors or other appropriate governing body. If,
within ninety (90) days from the effective date of such consolidation, merger
or sale of assets, such new entity does not become a party hereto, as above
provided, the Plan automatically shall be terminated, and the provisions of
Section 10.4 shall become operative.

12

 

ARTICLE 11

THE TRUST

     11.1     ESTABLISHMENT OF TRUST. The Employer shall establish the Trust with
the Trustee pursuant to such terms and conditions as are set forth in the Trust
agreement to be entered into between the Employer and the Trustee or the
Employer shall cause to be maintained one or more separate subaccounts in an
existing Trust maintained with the Trustee with respect to one or more other
plans of the Employer, which subaccount or subaccounts represent Participants’
interests in the Plan. Any such Trust shall be intended to be treated as a
“grantor trust” under the Code and the establishment of the Trust or the
utilization of any existing Trust for Plan benefits, as applicable, shall not
be intended to cause any Participant to realize current income on amounts
contributed thereto, and the Trust shall be so interpreted.

ARTICLE 12

MISCELLANEOUS

     12.1     LIMITATIONS ON LIABILITY OF EMPLOYER. Neither the establishment of
the Plan nor any modification thereof, nor the creation of any account under
the Plan, nor the payment of any benefits under the Plan shall be construed as
giving to any Participant or other person any legal or equitable right against
the Employer, or any officer or employer thereof except as provided by law or
by any Plan provision. The Employer does not in any way guarantee any
Participant’s Account from loss or depreciation, whether caused by poor
investment performance of a deemed investment or the inability to realize upon
an investment due to an insolvency affecting an investment vehicle or any other
reason. In no event shall the Employer, or any successor, employee, officer,
director or stockholder of the Employer, be liable to any person on account of
any claim arising by reason of the provisions of the Plan or of any instrument
or instruments implementing its provisions, or for the failure of any
Participant, Beneficiary or other person to be entitled to any particular tax
consequences with respect to the Plan, or any credit or distribution hereunder.

     12.2     CONSTRUCTION. If any provision of the Plan is held to be illegal or
void, such illegality or invalidity shall not affect the remaining provisions
of the Plan, but shall be fully severable, and the Plan shall be construed and
enforced as if said illegal or invalid provision had never been inserted
herein. For all purposes of the Plan, where the context admits, the singular
shall include the plural, and the plural shall include the singular. Headings
of Articles and Sections herein are inserted only for convenience of reference
and are not to be considered in the construction of the Plan. The laws of the
State of Delaware shall govern, control and determine all questions of law
arising with respect to the Plan and the interpretation and validity of its
respective provisions, except where those laws are preempted by the laws of the
United States. Participation under the Plan will not give any Participant the
right to be retained in the service of the Employer nor any right or claim to
any benefit under the Plan unless such right or claim has specifically accrued
hereunder.

               The Plan is intended to be and at all times shall be interpreted and
administered so as to qualify as an unfunded deferred compensation plan, and no
provision of the Plan shall be interpreted so as to give any individual any
right in any assets of the Employer which right is greater than the rights of a
general unsecured creditor of the Employer.

     12.3     SPENDTHRIFT PROVISION. No amount payable to a Participant or a
Beneficiary under the Plan will, except as otherwise specifically provided by
law, be subject in any manner to anticipation, alienation, attachment,
garnishment, sale, transfer, assignment (either at law or in equity), levy,
execution, pledge, encumbrance, charge or any other legal or equitable process,
and any attempt to do so will be void; nor will any benefit be in any manner
liable for or subject to the debts, contracts, liabilities, engagements or
torts of the person entitled thereto. Further, (i) the withholding of taxes
from Plan benefit payments, (ii) the recovery under the Plan of overpayments of
benefits previously made to a Participant or Beneficiary, (iii) if applicable,
the

13

 

transfer of benefit rights from the Plan to another plan, or (iv) the
direct deposit of benefit payments to an account in a banking institution (if
not actually part of an arrangement constituting an assignment or alienation)
shall not be construed as an assignment or alienation.

     In the event that any Participant’s or Beneficiary’s benefits hereunder
are garnished or attached by order of any court, the Employer or Trustee may
bring an action or a declaratory judgment in a court of competent jurisdiction
to determine the proper recipient of the benefits to be paid under the Plan.
During the pendency of said action, any benefits that become payable shall be
held as credits to the Participant’s or Beneficiary’s Account or, if the
Employer or Trustee prefers, paid into the court as they become payable, to be
distributed by the court to the recipient as the court deems proper at the
close of said action.

     IN WITNESS WHEREOF, the Employer has caused the Plan to be amended and
restated and its seal to be affixed hereto, effective as of the ___ day of
___________.

	 	 	 	 	 
	ATTEST/WITNESS:	 	THE HILLMAN COMPANIES INC.
	 	 	 	 	 
	By:	____________________ 	 	By:	____________________
	 	 	 	 	 
	Print:	____________________	 	Print:	____________________
	 	 	 	 	 
	Date:	____________________	 	Title:	____________________
	 	 	 	 	 
	 	 	 	Date:	____________________

14

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