Document:

iivi-ex1008_342.htm

 

Exhibit 10.08 

II-VI

Incorporated

II-VIINCORPORATED, 375 Saxonburg Boulevard, Saxonburg, PA 16056

 

	
General Offices: 724-352-4455
	
 
	
Sales: 724-352-1504
	
 
	
FAX: 724-352-980
	
 
	
Telex: 469864

 

EMPLOYMENT AGREEMENT

THIS AGREEMENT (“Agreement”) made and entered into this 10th day of November, 2008.

BY AND BETWEEN

II-VI INCORPORATED, a Pennsylvania corporation, having a principal place of business at 375 Saxonburg Boulevard, Saxonburg, Butler County, Pennsylvania 16056, hereinafter referred to as “Employer”,

AND

DAVID G. WAGNER, of 8000 North Shoreline Drive, Holland, OH 43528, hereinafter referred to as the “Employee”.

WHEREAS, Employer currently employs the Employee as its Corporate Director of Human Resources;

WHEREAS, the Employee is employed in a position of confidentiality, trust and importance with the Employer, and has information, knowledge and experience with the Employer which would be hard to replace and which would also place the Employer at a competitive disadvantage should Employee accept employment with or otherwise assist a competitor; and

WHEREAS, the Employer has determined to provide the Employee with certain additional benefits as hereinafter defined.

NOW, THEREFORE, in consideration of the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree to the following:

1.            Employer shall employ the Employee as Corporate Director of Human Resources to perform such duties as may be determined and assigned to him by the President of Employer. This Agreement shall be effective as of November 10, 2008 and shall remain in effect until terminated in accordance with Section 9.

2.            In consideration of the services to be performed by the Employee, the Employer agrees to pay the Employee a salary of $140,000.00 per annum in equal installments at the regularly scheduled pay dates of the Employer together with such cash bonuses as the Employer shall determine from time to time at Employer’s discretion. Employer also agrees to provide the Employee with fringe benefits and all other benefits from time to time provided to similarly situated executive employees including, without limitation participation in Employer’s omnibus incentive plan and other bonus plans.

3.            Employee covenants and agrees to devote all of his business time and efforts to the faithful performance of the duties assigned to him from time to time by the Employer, except to the extent that outside time and effort is approved by the Employer.

4.            The Employee, during the term of his employment, has and will continue to have access to and become familiar with various trade or business secrets, including but not limited to drawings, processes, technical information and data, scientific data, business methods, forms and contracts, as well as compilations of information, 

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records and specifications, customer lists and marketing and sales data, which are owned by Employer or its customers (“Information”). During the term of this Agreement and at all times after termination of this Agreement, unless authorized in writing by Employer, Employee will not use the Information for Employee’s or any third party’s benefit or advantage or disclose the Information or cause it to be disclosed, or permit disclosure of it to any third party, or use the Information in any way which would be detrimental to the Employer. Employee will not be liable to the Employer for the disclosure of Information:

(a)            which was known to the Employee on a non-confidential basis prior to the Employee’s employment with Employer and Employee’s prior knowledge is established by written documents in Employee’s files which predate the execution of this Agreement; or

(b)            which is received rightfully by Employee on a non-confidential basis; or

(c)            which is subject to any disclosure laws; or

(d)            which is or becomes within the public domain through no act of the Employee.

In any judicial proceeding, it will be presumed that the Information constitutes protectable trade secrets and Employee will bear the burden of proving that any Information is publicly or rightfully known by Employee. All Information and equipment relating to the business of Employer shall not be removed from the premises of Employer under any circumstances whatsoever without the prior written consent of Employer.

5.            Any and all developments, discoveries, inventions, enhancements, modifications and improvements, (“Inventions”) created or developed by Employee alone or with others during the term of his or her employment, whether or not during working hours and whether on the Employer’s premises or elsewhere, will be the sole and exclusive property of Employer if the Invention is:

(a)            within the scope of Employee’s duties assigned or implied in accordance with his or her position; or

(b)            a product, service, or other item which would be in competition with the products or services offered by Employer or which is related to Employer’s products or services, whether presently existing, under development, or under active consideration; or

(c)            in whole or in part, the result of Employee’s use of Employer’s resources, including without limitation personnel, computers, equipment, facilities or otherwise.

Employee will disclose promptly to Employer any and all Inventions and will reduce such disclosure to a detailed writing upon request by Employer.  During the term of Employee’s employment with Employer and after termination of such employment, if Employer should then so request, Employee agrees to assign and does hereby assign to Employer all rights in the Inventions. Employee agrees to execute and deliver to Employer any instruments Employer deems necessary to vest in Employer the sole title to and all exclusive rights in the Inventions. Employee agrees to execute and deliver to Employer all proper papers for use in applying for, obtaining, maintaining, amending and enforcing any legal protections as the Employer may desire. Employee further agrees to assist fully the Employer or its nominees in the preparation and prosecution of any litigation connected with the Inventions. Employee’s obligations and covenants in this Section will be binding upon Employee’s heirs, legal representatives, successors and assigns. Employee represents that he is not the owner of any patents. Any patent, patent pending, copyright, trademark, trade name, invention, writing, drawing and the like which has been previously made by or conceived by Employee or which occurred under his management in connection with his prior employment is believed to be the property of the prior employer and/or its assigns and is not owned by Employee.

6.            The Employee covenants and agrees that at no time during the term of his employment hereunder, or for a period of one (1) year immediately following the termination of his employment for any reason will he, for himself, or on behalf of any other person, persons, firm, partnership, corporation, or company, call upon any 

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customers of Employer for the purpose of soliciting, selling, or both, to any of said customers, any services or products that are the same or similar to those provided and/or produced by Employer; nor will Employee, in any way directly or indirectly, for himself or on behalf of or in conjunction with any Competitor, solicit, divert, or take away any such customers of Employer during the term of his employment or for one (1) year immediately following the termination of this Agreement. For purposes of this Agreement, “Employer” shall also include any corporations which are part of a controlled group of corporations which includes II-VI Incorporated.

7.            The Employee covenants and agrees that upon the termination of his employment for any reason the Employee will not enter into or engage generally in direct or indirect competition with Employer within the Restricted Territory whether as an individual, or as a partner or joint venturer, or as an employee or agent for any Competitor, or as a five percent (5%) or more investor, officer, director, shareholder or otherwise of a Competitor, for a period of one (I) year after the date of termination of his employment hereunder. For purposes of this Agreement, (i) a “Competitor” shall mean any corporation, partnership, sole proprietorship or other entity who sells, manufactures, produces or modifies a product or products similar to, the same as or a substitute for those sold, manufactured, produced or modified by Employer (“Employer Products”) and (ii) “Restricted Territory” means anywhere in the world where Employer’s Products are marketed or sold. This covenant on the part of the Employee shall be construed as an agreement independent of any other provision of this Agreement; and the existence of any claim or cause of action of the Employee against Employer, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Employer of this covenant.

8.            The Employee covenants and agrees that at no time during the term of his employment or for a period of one (1) year immediately following the termination of his employment for any reason, will he, for himself, or on behalf of any other person, persons, firm, partnership, corporation, or company hire any person who is employed by the Employer or has been employed by the Employer within one (1) year of such termination date.

9.            The employment relationship of the parties hereto may be terminated by either party upon thirty (30) days written notice to the other party at any time, with or without cause. The Employer shall continue the payment of wages and benefits through such period although the parties hereto agree that the Employer may request the Employee to stop performing any duties on behalf of the Employer. In any event, the Employee shall remain an employee of the Employer through the end of such thirty (30) day period.

10.           (a)            Termination Without Cause. If, other than in connection with a change of control, the employment of the Employee is terminated by Employer without Cause, the Employer will pay no severance pay to the Employee if Employee has less than four (4) months of service with Employer at the date of termination. If the Employee has at least four (4) months but less than three (3) years of service with Employer at the date of termination, Employer agrees to pay the Employee severance pay in an amount equal to two (2) months of the salary which the Employee is receiving at the time of termination. If the Employee has at least three (3) years of service with Employer at the date of termination, Employer agrees to pay the Employee severance pay in an amount equal to one (1) month of the monthly salary which the Employee is receiving at the time of termination for each year of service Employee has with Employer at the date of termination, up to a maximum severance amount of nine (9) months of monthly salary. The severance pay will be paid to the Employee no later than sixty (60) days after the date of termination. The severance pay will not be considered compensation for the purpose of any other fringe benefit program of the Employer. No bonus or any other fringe benefits will be due the Employee except for his accrued vacation. To the extent the Employee elects to continue health insurance coverage under COBRA, the Company will pay the premiums for such coverage for a period equal to the months of severance actually earned up to nine (9) months under the terms specified in Section 10(b)(1) below.

(b)            Termination after Change in Control. If the Employer terminates the Employee’s employment without Cause or the Employee terminates the Employee’s employment for Good Reason, and such termination is coincident with or within an eighteen (18) month period following the occurrence of a Change in Control, the Employer shall pay Employee severance pay in an amount equal to (a) 0.5, multiplied by (b) the Employee’s Average Annual Base Salary, multiplied by (c) each year of service Employee has with Employer at the date of termination, up to a maximum amount of four (4) years of service; in no case shall the product of (a) multiplied by (b) multiplied by (c) be greater than two (2) times the Employee’s Average Annual Base Salary. For purposes of this subparagraph “Average Annual Base Salary” shall be calculated as the Employee’s Annual Base Pay for the preceding five (5) fiscal years of the Employer divided by five (5).  Should the Employee have less than 

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five (5) fiscal years of service with the Employer at the date of termination, the Average Annual Base Salary shall be calculated as the average of the Employee’s Annual Base Pay using the applicable fiscal years of service with the Employer. The severance pay will be paid to the Employee within the period specified in Section 10(b)(3) below after the expiration of any applicable revocation periods set forth in the Release.  This severance payment will not be considered compensation for the purpose of any other fringe benefit plan of the Employer.

(1)            To the extent  permitted by applicable law and the Employer’s benefit plans, the Employer shall maintain the Employee’s paid coverage for health insurance through the payment of the Employee’s COBRA premiums until the earlier to occur of: (a) the date the Employee is provided by another employer benefits substantially comparable to the health insurance benefits provided by the Employer (which the Employee must provide prompt notice with respect thereto to the Employer), or (b) the expiration of the COBRA Continuation Period. During the applicable period of coverage described in the foregoing sentence, the Employee shall be entitled to benefits on substantially the same basis as would have otherwise been provided had the Employee not been terminated and the Employer will have no obligation to pay any benefits to or premiums on behalf of the Employee after such period ends.  To the extent that such benefits are available under the Employer’s benefit plans and the Employee had such coverage immediately prior to termination of employment, such continuation of benefits for the Employee shall also cover the Employee’s dependents for so long as the Employee is receiving such benefits under this Section 10(b)(l). The COBRA Continuation Period for health insurance under this Section 10(b)(l) shall be deemed to run concurrent with the continuation period federally mandated by COBRA (generally 18 months), or any other legally mandated and applicable federal, state, or local coverage period for benefits provided to terminated employees under the health care plan(s).

(2)            A lump sum cash payment of One Thousand ($1,000.00) Dollars in order to cover expenses associated with seeking another employment position.

(3)            All payments to be made pursuant to this Section 10(b) shall be made, in lump sum, no later than sixty (60) days after the date of termination; provided, however, that all benefits due under Section 10(b)(1) shall be provided as specified thereunder.

(c)            Reduction of Severance Payments.  Notwithstanding anything to the contrary contained in Section 10(b) above, in the event the Employer determines that part or all of the consideration, compensation or benefits to be paid to the Employee under this Agreement constitute “parachute payments” under Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the “IRC”), then, if the aggregate present value of such parachute payments, together with the aggregate present value of any consideration, compensation or benefits to be paid to the Employee under any other plan, arrangement or agreement which constitute “parachute payments” (collectively, the “Parachute Amount”) exceeds 2.99 times the Employee’s “base amount”, as defined in Section 280G(b)(3) of the IRC (the “Employee’s Base Amount”), the amounts payable hereunder constituting “parachute payments” which would otherwise be payable to or for the benefit of the Employee shall be reduced to the extent necessary so that the Parachute Amount is equal to 2.99 times the Employee’s Base Amount.

(d)            Conditions  to  Receipt  of  Severance  Benefits/Repayment  of Severance Benefits.

(1)            As a condition to receiving any severance benefits to which the Employee may otherwise be entitled under Sections 10(a) and 10(b) of this Agreement (the “Severance Benefits”), the Employee shall execute, deliver and not revoke a release and waiver (the “Release”), in a form provided by the Employee, of any claims, whether arising under Federal, state or local statute, common law or otherwise, against the Employer and its subsidiaries.  Unless otherwise required by applicable law, the release must be executed by the Employee within thirty (30) days of the date of termination. If the Employee fails or otherwise refuses to execute a Release within the time specified herein, or revokes the Release, the Employee will not be entitled to any such Severance Benefits and the Employer shall have no further obligations with respect to the payment of the Severance Benefits.  In addition, if following a termination of employment that gives the Employee a right to the payment of Severance Benefits, the Employee engages in any activities that would have violated any of the covenants in Sections 4, 5, 6, 7, and 8 of this Agreement, the Employee shall have no further right or claim to any Severance Benefits from and after the date on which the Employee engages in such activities and the Employer shall have no further obligations with respect to the payment of the Severance Benefits.

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(2)            If Employee violates any of the Employee’s obligations set forth in Sections 4, 5, 6, 7 and 8 of this Agreement, the Employer after becoming aware of such violation may provide written notice of such violation or breach to the Employee and request repayment of Severance Benefits. The Employee agrees that, in the event of a such a violation, within ten (10) days after the date the Employer provides notice to the Employee, the Employee shall pay to the Employer, in a form acceptable to the Employer, a dollar amount equal to any Severance Benefits paid to or on behalf of the Employee pursuant to this Agreement.  The Employee agrees that failure to make such timely payment to the Employer constitutes an independent and material breach of the terms and conditions of this Agreement, for which the Employer may seek recovery of the unpaid amount as liquidated damages, in addition to all other rights and remedies the Employer may have resulting from the Employee’s breach of the obligations set forth in Sections 4, 5, 6, 7, and 8 of this Agreement. The Employee agrees that timely payment to the Employer as set forth in this Section 10(d)(2) is reasonable and necessary because the compensatory damages that will result from breaches of Sections 4, 5, 6, 7 and 8 of this Agreement cannot readily be ascertained.  Further, the Employee agrees that timely payment to the Employer as set forth in this Section 10(d)(2)is not a penalty, and it does not preclude the Employer from seeking all other remedies including injunctive relief that may be available to the Employer.

(e)            Section 409A/Termination of Employment. The provisions of this Agreement will be administered, interpreted and construed in a manner intended to comply with Section 409A of the Internal Revenue Code (“Section 409A”), the regulations issued thereunder or any exception thereto (or disregarded to the extent such provision cannot be so administered, interpreted, or construed).

(1)            For purposes of the Agreement, the Employee shall be considered to have experienced a termination of employment only if the Employee has terminated employment with the Employer and all of its controlled group members within the meaning of Section 409A of the Code.  For purposes hereof, the determination of controlled group members shall be made pursuant to the provisions of Section 414(b) and 414(c) of the Code; provided that the language “at least 50 percent” shall be used instead of “at least 80 percent” in each place it appears in Section 1563(a)(1),(2) and (3) of the Code and Treas. Reg. § 1.414(c)-2; provided, further, where legitimate business reasons exist (within the meaning of Treas. Reg. § 1.409A-1(h)(3)), the language “at least 20 percent” shall be used instead of “at least 80 percent” in each place it appears. Whether the Employee has terminated employment will be determined based on all of the facts and circumstances and in accordance with the guidance issued under Section 409A of the Code.

(2)            For purposes of Section 409A, each severance benefit payment shall be treated as a separate payment. Each payment under this Agreement is intended to be excepted from Section 409A to the maximum extent provided under Section 409A as follows: (i) each payment that is scheduled to be made following the Employee’s termination date and within the applicable 2 1⁄2 month period specified in Treas. Reg. § 1.409A-l(b)(4) is intended to be excepted under the short-term deferral exception as specified in Treas. Reg. § 1.409A-l(b)(4); (ii) post-termination medical benefits are intended to be excepted under the medical benefits exception as specified in Treas. Reg.§ 1.409A-l(b)(9)(v)(B), and (iii) each payment that is not otherwise excepted under the short-term deferral exception or medical benefits exception is intended to be excepted under the involuntary pay exception as specified in Treas. Reg. § 1.409A-1(b)(9)(iii). The Employee shall have no right to designate the date of any payment under this Agreement.

(3)            With respect to payments subject to Section 409A of the Code (and not excepted therefrom), if any, it is intended that each payment is paid on permissible distribution event and at a specified time consistent with Section 409A of the Code.  The Employer reserves the right to accelerate and/or defer any payment to the extent permitted and consistent with Section 409A. Notwithstanding any provision of this Agreement to the contrary, to the extent that a payment hereunder is subject to Section 409A of the Code (and not excepted therefrom) and payable on account or a termination of employment, such payment shall be delayed for a period of six months after the date of termination (or, if earlier, the death of the Employee) if the Employee is a “specified employee” (as defined in Section 409A of the Code and determined in accordance with the procedures established by the Employer). Any payment that would otherwise have been due or owing during such six-month period will be paid immediately following the end of the six-month period in the month following the month containing the six (6) month anniversary of the date of termination. Notwithstanding any provision of this Agreement to the contrary, to the extent the timing of any severance benefit payment due under this Agreement was modified pursuant to the transition guidance provided by the IRS concerning the time and form of payment, any 

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such modification shall only apply to amounts that would not otherwise be payable in 2008 and may not cause an amount to be paid in 2008 that would not otherwise be paid in 2008. To the extent any such payment can not be made in 2008 under the transition guidance, such payment will be made in January 2009.

(f)            Definitions. For purposes of this Agreement, the following definitions shall have the following meanings:

(1)            “Cause” shall mean a determination by the Employer’s Board of Directors, in the exercise of its reasonable judgment, that any of the following has occurred:

	
(i)
	
the willful and continued failure by the Employee to perform his duties and responsibilities with the Employer under the Agreement (other than any such failure resulting from incapacity due to physical or mental illness or disability) which is not cured within thirty (30) days of receiving written notice from the Employer specifying in reasonable detail the duties and responsibilities which the Employer believes are not being adequately performed;

	
(ii)
	
the willful engaging by the Employee in any act which is materially damaging to the Employer;

	
(iii)
	
the conviction of the Employee of, or a plea of “guilty” or “no contest” to, (A) any felony or (B) a criminal offense involving fraud, dishonesty or other moral turpitude;

	
(iv)
	
any material breach by the Employee of the terms of the Agreement or any other written agreement between the Employee and the Employer relating to proprietary information, confidentiality, non-competition or non­ solicitation; or

	
(v)
	
the engaging by the Employee in any intentional act of dishonesty resulting or intended to result, directly or indirectly, in personal gain to the Employee at the Employer’s expense.

(2)            “Change in Control” shall be deemed to have occurred when:

	
(i)
	
the Employer is merged or consolidated with another entity the result of which is that immediately following such transaction (A) the persons who were the shareholders of the Employer immediately prior to such transaction have less than a majority of the voting power of the Employer or the entity owing or controlling the Employer or (B) the individuals who comprised the Board of Directors of the Employer immediately prior to such transaction cease to be at least a majority of the members of the Board of Directors of the Employer or of the entity controlling the Employer, or

	
(ii)
	
a majority of the Employer’s assets are sold or otherwise transferred to another corporation not controlled by or under common control with the Employer or to a partnership, firm, entity or one or more individuals not so controlled, or

	
(iii)
	
a majority of the members of the Employer’s Board of Directors consists of persons who were not nominated for election as directors by or on behalf of the Employer’s Board of Directors or with the express concurrence of the Employer’s Board of Directors, or

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(iv)
	
a single person, or a group of persons acting in concert, obtains voting control over a majority of the Employer’s outstanding voting shares; provided, however, that a Change in Control shall not have occurred as of result of any transaction in which Carl J. Johnson, and/or his affiliates, including the II-VI Incorporated Foundation, directly or indirectly, acquire more than a majority of the assets or stock of the Employer or of the entity controlling the Employer.

(3)            “Good Reason” means, without the Employee’s express written consent:

	
(i)
	
a material reduction of Employee’s employment responsibilities;

	
(ii)
	
a material reduction by the Employer of the Employee’s eligibility for Total Target Compensation as in effect immediately prior to such reduction. “Total Target Compensation” shall mean the Employee’s annual base salary plus the cash and stock compensation the Employee is eligible to receive at 100% performance, whether sales incentive, bonus or otherwise;

	
(iii)
	
a material increase in the amount of Employee’s business travel which  produces a constructive  relocation  of Employee;

	
(iv)
	
a material reduction by the Employer in the kind or level of employee benefits to which the Employee is entitled immediately prior to such reduction with the result that the Employee’s overall benefits package is significantly reduced; or

	
(v)
	
the relocation of the Employee to a facility or a location more than fifty (50) miles from Saxonburg, Pennsylvania’.

In order for the Employee to terminate for Good Reason, (A) the Employer must be notified by the Employee in writing within ninety (90) days of the event constituting Good Reason, (B) the event must remain uncorrected by the Employer for thirty (30) days following such notice (the “Notice Period”), and (C) such termination must occur within sixty (60) days after the expiration of the Notice Period.

11.           Employee agrees, upon the termination of his employment with Employer for any reason whatsoever, to return to an officer of Employer all equipment, records, copies of records, papers and other work product pertaining to any work performed by Employee while associated with Employer.  The Employee shall also provide the Employer, if requested to do so, the name of the new employer of Employee. In the event Employee shall fail to comply with the provisions of this paragraph, or in the event Employee shall violate this Agreement, Employee shall forfeit all claims to unpaid compensation without affecting the right of Employer to compel the return of said records and papers.

12.           In the event that, and if for any reason, any portion of this Agreement shall be held to be invalid or unenforceable, it is agreed that the remaining covenants and restrictions or portions thereof shall remain in full force and effect, and that if the validity or unenforceability is due to the unreasonableness of the time or geographical area covered by said covenants and restrictions, said covenants and restrictions of this Agreement shall nevertheless be effective for such period of time and for such area as may be determined to be reasonable by a Court of competent jurisdiction.

13.           Both parties agree not to make any disparaging statements that reflect negatively on the reputation or good name of the other.

14.           This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of the Employee by the Employer and contains all of the covenants and agreements between the parties with respect to such employment in any manner whatsoever. No alterations, 

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amendments, changes or additions to this Agreement will be binding upon either Employer or Employee unless in writing and signed by both parties. No waiver of any right arising under this Agreement made by either party will be valid unless set forth in writing signed by both parties. Notwithstanding the foregoing or any provision of this Agreement to the contrary, the Employer may at any time (after consultation with the Employee) modify, amend or terminate any or all of the provisions of this Agreement or take any other action, to the extent necessary or advisable to conform the provisions of this Agreement or the benefits provided thereunder with Section 409A of the Code, the regulations issued thereunder or an exception thereto.

15.           This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

16.           Employee warrants and represents that he has provided the Employer with copies of all agreements with previous employers that might still be applicable and that Employee’s performance under this Agreement will not violate any agreement to which Employee is a party and that Employee will not bring any materials which are proprietary to a third party to Employer without the prior written consent of such third party.

17.           Employee agrees to indemnify and hold harmless Employer, its directors, officers and employees against any liabilities and expenses, including amounts paid in settlement, incurred by any of them in connection with any claim by any of Employee’s prior employers that (a) the termination of Employee’s employment with such prior employer or (b) Employee’s employment by Employer or (c) Employee’s use of any skills, knowledge or materials in the scope of his or her employment with Employer is a breach of any contract to which Employee is a party.

18.           This Agreement is binding upon the parties hereto and their respective heirs, personal representatives, successors and assigns. Employee agrees that the obligations of Sections 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18 and 19 of this Agreement will survive the termination of this Agreement.

19.           Employer may assign its rights under this Agreement to an affiliate, subsidiary, or parent of Employer or to any corporation acquiring all or substantially all of the assets of Employer or to any other corporation into which Employer may be liquidated, merged, or consolidated. The terms of this Agreement will survive such assignment unless termination of the Agreement is provided prior to such assignment.  In the event of an assignment by Employer of this Agreement, the assignee or successor party shall have the same rights and obligations under this Agreement as Employer.

IN WITNESS WHEREOF, the parties hereto intending to be legally bound have set their hands and seals the day and year first above written.

 

	
ATTEST:
	
 
	
II-VI INCORPORATED

	
 
	
 
	
 
	
 

	
/s/ Craig Creaturo
	
 
	
By:
	
/s/ Francis J. Kramer              11/6/08

	
Craig Creaturo, Treasurer
	
 
	
 
	
Francis J. Kramer, President

	
 
	
 
	
 
	
 

	
WITNESS:
	
 
	
EMPLOYEE:

	
 
	
 
	
 
	
 

	
/s/ Robert D. Wagner
	
 
	
/s/ David G. Wagner

	
Robert D. Wagner
	
 
	
David G. Wagner

 

8iivi-ex1017_328.htm

 

Exhibit 10.17

THE EXECUTIVE NONQUALIFIED EXCESS PLAN

PLAN DOCUMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DD 2326-5

 

 

THE EXECUTIVE NONQUALIFIED EXCESS PLAN

Section 1.       Purpose:

By execution of the Adoption Agreement, the Employer has adopted the Plan set forth herein, and in the Adoption Agreement, to provide a means by which certain management Employees or Independent Contractors of the Employer may elect to defer receipt of current Compensation from the Employer in order to provide retirement and other benefits on behalf of such Employees or Independent Contractors of the Employer, as selected in the Adoption Agreement. The Plan is intended to be a nonqualified deferred compensation plan that complies with the provisions of Section 409A of the Internal Revenue Code (the “Code”). The Plan is also intended to be an unfunded plan maintained primarily for the purpose of providing deferred compensation benefits for a select group of management or highly compensated employees under Sections 201(2), 301(a)(3) and 401(a)(l) of the Employee Retirement Income Security Act of 1974 (“ERISA”) and independent contractors. Notwithstanding any other provision of this Plan, this Plan shall be interpreted, operated and administered in a manner consistent with these intentions.

Section 2.       Definitions:

As used in the Plan, including this Section 2, references to one gender shall include the other, unless otherwise indicated by the context:

2.1        “Active Participant” means, with respect to any day or date, a Participant who is in Service on such day or date; provided, that a Participant shall cease to be an Active Participant (i) immediately upon a determination by the Committee that the Participant has ceased to be an Employee or Independent Contractor, or (ii) at the end of the Plan Year that the Committee determines the Participant no longer meets the eligibility requirements of the Plan.

2.2        “Adoption Agreement” means the written agreement pursuant to which the Employer adopts the Plan. The Adoption Agreement is a part of the Plan as applied to the Employer.

2.3        “Beneficiary” means the person, persons, entity or entities designated or determined pursuant to the provisions of Section 13 of the Plan.

2.4        “Board” means the Board of Directors of the Company, if the Company is a corporation. If the Company is not a corporation, “Board” shall mean the Company.

2.5        “Change in Control Event” means an event described in Section 409A(a)(2)(A)(v) of the Code (or any successor provision thereto) and the regulations

thereunder.

2.6        “Committee” means the persons or entity designated in the Adoption Agreement to administer the Plan. If the Committee designated in the Adoption Agreement is unable to serve, the Employer shall satisfy the duties of the Committee provided for in Section 9.

2.7        “Company” means the company designated in the Adoption Agreement as such.

2.8        “Compensation” shall have the meaning designated in the Adoption Agreement.

2.9        “Crediting Date” means the date designated in the Adoption Agreement for crediting the amount of any Participant Deferral Credits or Employer Credits to the Deferred Compensation Account of a Participant.

2.10      “Deferred Compensation Account” means the account maintained with respect to each Participant under the Plan. The Deferred Compensation Account shall be credited with Participant Deferral Credits and Employer Credits, credited or debited for deemed investment gains or losses, and adjusted for payments in accordance with the rules and elections in effect under Section 8. The Deferred Compensation Account of a Participant shall include any In-Service or Education Account of the Participant, if applicable.

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2.11      “Disabled” means Disabled within the meaning of Section 409A of the Code and the regulations thereunder. Generally, this means that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering Employees of the Employer.

2.12      “Education Account” is an In-Service Account which will be used by the Participant for educational purposes.

2.13      “Effective Date” shall be the date designated in the Adoption Agreement.

2.14      “Employee” means an individual in the Service of the Employer if the relationship between the individual and the Employer is the legal relationship of employer and employee. An individual shall cease to be an Employee upon the Employee’s separation from Service.

2.15      “Employer” means the Company, as identified in the Adoption Agreement, and any Participating Employer which adopts this Plan. An Employer may be a corporation, a limited liability company, a partnership or sole proprietorship.

2.16      “Employer Credits” means the amounts credited to the Participant’s Deferred Compensation Account by the Employer pursuant to the provisions of Section 4.2.

2.17      “Grandfathered Amounts” means, if applicable, the amounts that were deferred under the Plan and were earned and vested within the meaning of Section 409A of the Code and regulations thereunder as of 
December 31, 2004. Grandfathered Amounts shall be subject to the terms designated in the Adoption Agreement.

2.18      “Independent Contractor” means an individual in the Service of the Employer if the relationship between the individual and the Employer is not the legal relationship of employer and employee. An individual shall cease to be an Independent Contractor upon the termination of the Independent Contractor’s Service. An Independent Contractor shall include a director of the Employer who is not an Employee.

2.19      “In-Service Account” means a separate account to be kept for each Participant that has elected to take in-service distributions as described in Section 5.4. The In-Service Account shall be adjusted in the same manner and at the same time as the Deferred Compensation Account under Section 8 and in accordance with the rules and elections in effect under Section 8.

2.20      “Normal Retirement Age” of a Participant means the age designated in the Adoption Agreement.

2.21      “Participant” means with respect to any Plan Year an Employee or Independent Contractor who has been designated by the Committee as a Participant and who has entered the Plan or who has a Deferred Compensation Account under the Plan; provided that if the Participant is an Employee, the individual must be a highly compensated or management employee of the Employer within the meaning of Sections

201(2), 301(a)(3) and 401(a)(1) of ERISA.

2.22      “Participant Deferral Credits” means the amounts credited to the Participant’s Deferred Compensation Account by the Employer pursuant to the provisions of Section 4.1.

2.23      “Participating Employer” means any trade or business (whether or not incorporated) which adopts this Plan with the consent of the Company identified in the Adoption Agreement.

2.24      “Participation Agreement” means a written agreement entered into between a Participant and the Employer pursuant to the provisions of Section 4.1

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2.25      “Performance-Based Compensation” means compensation where the amount of, or entitlement to, the compensation is contingent on the satisfaction of preestablished organizational or individual performance criteria relating to a performance period of at least twelve months. Organizational or individual performance criteria are considered preestablished if established in writing within 90 days after the commencement of the period of service to which the criteria relates, provided that the outcome is substantially uncertain at the time the criteria are established. Performance-based compensation may include payments based upon subjective performance criteria as provided in regulations and administrative guidance promulgated under Section 409A of the Code.

2.26      “Plan” means The Executive Nonqualified Excess Plan, as herein set out and as set out in the Adoption Agreement, or as duly amended. The name of the Plan as applied to the Employer shall be designated in the Adoption Agreement.

2.27      “Plan-Approved Domestic Relations Order” shall mean a judgment, decree, or order (including the approval of a settlement agreement) which is:

2.27.1     Issued pursuant to a State’s domestic relations law;

2.27.2     Relates to the provision of child support, alimony payments or marital property rights to a Spouse, former Spouse, child or other dependent of the Participant;

2.27.3     Creates or recognizes the right of a Spouse, former Spouse, child or other dependent of the Participant to receive all or a portion of the Participant’s benefits under the Plan;

2.27.4     Requires payment to such person of their interest in the Participant’s benefits in a lump sum payment at a specific time; and

2.27.5     Meets such other requirements established by the Committee.

2.28      “Plan Year” means the twelve-month period ending on the last day of the month designated in the Adoption Agreement; provided that the initial Plan Year may have fewer than twelve months.

2.29      “Qualifying Distribution Event” means (i) the Separation from Service of the Participant, (ii) the date the Participant becomes Disabled, (iii) the death of the Participant, (iv) the time specified by the Participant for an In-Service or Education Distribution, (v) a Change in Control Event, or (vi) an Unforeseeable Emergency, each to the extent provided in Section 5.

2.30      “Seniority Date” shall have the meaning designated in the Adoption Agreement.

2.31      “Separation from Service” or “Separates from Service” means a “separation from service” within the meaning of Section 409A of the Code.

2.32      “Service” means employment by the Employer as an Employee. For purposes of the Plan, the employment relationship is treated as continuing intact while the Employee is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Employee’s right to reemployment is provided either by statute or contract. If the Participant is an Independent Contractor, “Service” shall mean the period during which the contractual relationship exists between the Employer and the Participant. The contractual relationship is not terminated if the Participant anticipates a renewal of the contract or becomes an Employee.

2.33      “Service Bonus” means any bonus paid to a Participant by the Employer which is not Performance-Based Compensation.

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2.34      “Specified Employee” means an employee who meets the requirements for key employee treatment under Section 416(i)(l)(A)(i), (ii) or (iii) of the Code (applied in accordance with the regulations thereunder and without regard to Section 416(i)(5) of the Code) at any time during the twelve month period ending on December 31 of each year (the “identification date”). Unless binding corporate action is taken to establish different rules for determining Specified Employees for all plans of the Company and its controlled group members that are subject to Section 409A of the Code, the foregoing rules and the other default rules under the regulations of Section 409A of the Code shall apply. If the person is a key employee as of any identification date, the person is treated as a Specified Employee for the twelve-month period beginning on the first day of the fourth month following the identification date.

2.35      “Spouse” or “Surviving Spouse” means, except as otherwise provided in the Plan, a person who is the legally married spouse or surviving spouse of a Participant.

2.36      “Unforeseeable Emergency” means an “unforeseeable emergency” within the meaning of Section 409A of the Code.

2.37      “Years of Service” means each Plan Year of Service completed by the Participant. For vesting purposes, Years of Service shall be calculated from the date designated in the Adoption Agreement and Service shall be based on service with the Company and all Participating Employers.

Section 3.       Participation:

The Committee in its discretion shall designate each Employee or Independent Contractor who is eligible to participate in the Plan. A Participant who separates from Service with the Employer and who later returns to Service will not be an Active Participant under the Plan except upon satisfaction of such terms and conditions as the Committee shall establish upon the Participant’s return to Service, whether or not the Participant shall have a balance remaining in the Deferred Compensation Account under the Plan on the date of the return to Service.

Section 4.       Credits to Deferred Compensation Account:

4.1       Participant Deferral Credits. To the extent provided in the Adoption Agreement, each Active Participant may elect, by entering into a Participation Agreement with the Employer, to defer the receipt of Compensation from the Employer by a dollar amount or percentage specified in the Participation Agreement. The amount of Compensation the Participant elects to defer, the Participant Deferral Credit, shall be credited by the Employer to the Deferred Compensation Account maintained for the Participant pursuant to Section 8. The following special provisions shall apply with respect to the Participant Deferral Credits of a Participant:

4.1.1    The Employer shall credit to the Participant’s Deferred Compensation Account on each Crediting Date an amount equal to the total Participant Deferral Credit for the period ending on such Crediting Date.

4.1.2    An election pursuant to this Section 4.1 shall be made by the Participant by executing and delivering a Participation Agreement to the Committee. Except as otherwise provided in this Section 4.1, the Participation Agreement shall become effective with respect to such Participant as of the first day of January following the date such Participation Agreement is received by the Committee. A Participant’s election may be changed at any time prior to the last permissible date for making the election as permitted in this Section 4.1, and shall thereafter be irrevocable. The election of a Participant shall continue in effect for subsequent years until modified by the Participant as permitted in this Section 4.1.

4.1.3    A Participant may execute and deliver a Participation Agreement to the Committee within 30 days after the date the Participant first becomes eligible to participate in the Plan to be effective as of the first payroll period next following the date the Participation Agreement is fully executed by the Participant. Whether a Participant is treated as newly eligible for participation under this Section shall be determined in accordance with Section 409A of the Code and the regulations thereunder, including (i) rules that treat all elective deferral account balance plans as one plan, and (ii) rules that treat a previously eligible employee as newly eligible if his benefits had been previously distributed or if he has been ineligible for 24 months. For Compensation that is earned based upon a 

5

 

specified performance period (for example, an annual bonus), where a deferral election is made under this Section but after the beginning of the performance period, the election will only apply to the portion of the Compensation equal to the total amount of the Compensation for the service period multiplied by the ratio of the number of days remaining in the performance period after the election over the total number of days in the performance period.

4.1.4    A Participant may unilaterally modify a Participation Agreement (either to terminate, increase or decrease the portion of his future Compensation which is subject to deferral within the percentage limits set forth in Section 4.1 of the Adoption Agreement) by providing a written modification of the Participation Agreement to the Committee. The modification shall become effective as of the first day of January following the date such written modification is received by the Committee.

4.1.5    If the Participant performed services continuously from the later of the beginning of the performance period or the date upon which the performance criteria are established through the date upon which the Participant makes an initial deferral election, a Participation Agreement relating to the deferral of Performance-Based Compensation may be executed and delivered to the Committee no later than the date which is 6 months prior to the end of the performance period, provided that in no event may an election to defer Performance-Based Compensation be made after such Compensation has become readily ascertainable. 

4.1.6    If the Employer has a fiscal year other than the calendar year, Compensation relating to Service in the fiscal year of the Employer (such as a bonus based on the fiscal year of the Employer), of which no amount is paid or payable during the fiscal year, may be deferred at the Participant’s election if the election to defer is made not later than the close of the Employer’s fiscal year next preceding the first fiscal year in which the Participant performs any services for which such Compensation is payable.

4.1.7    Compensation payable after the last day of the Participant’s taxable year solely for services provided during the final payroll period containing the last day of the Participant’s taxable year (i.e., December 31) is treated for purposes of this Section 4.1 as Compensation for services performed in the subsequent taxable year. 

4.1.8    The Committee may from time to time establish policies or rules consistent with the requirements of Section 409A of the Code to govern the manner in which Participant Deferral Credits may be made. 

4.1.9    If a Participant becomes Disabled, or applies for and is eligible for a distribution on account of an Unforeseeable Emergency during a Plan Year or as required due to a hardship distribution under Section 1.401(k)-1(d)(3) of the Code, his deferral election for such Plan Year shall be cancelled. 

4.2       Employer Credits. If designated by the Employer in the Adoption Agreement, the Employer shall cause the Committee to credit to the Deferred Compensation Account of each Active Participant an Employer Credit as determined in accordance with the Adoption Agreement. A Participant must make distribution elections with respect to any Employer Credits credited to his Deferred Compensation Account by the deadline that would apply under Section 4.1 for distribution elections with respect to Participant Deferral Credits credited at the same time, on a Participation Agreement that is timely executed and delivered to the Committee pursuant to Section 4.1.

4.3       Deferred Compensation Account. All Participant Deferral Credits and Employer Credits shall be credited to the Deferred Compensation Account of the Participant as provided in Section 8. 

Section 5.       Qualifying Distribution Events:

5.1       Separation from Service. If the Participant Separates from Service with the Employer, the vested balance in the Deferred Compensation Account shall be paid to the Participant by the Employer as provided in Section 7. Notwithstanding the foregoing, no distribution shall be made earlier than six months after the date of Separation from Service (or, if earlier, the date of death) with respect to a Participant who as of the date of Separation from Service is a Specified Employee of a corporation the stock in which is traded on an established securities market or otherwise. Any payments to which such Specified Employee would be entitled during the first six months following the date of Separation from Service shall be accumulated and paid on the first day of the seventh month following the date of Separation from Service. 

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5.2       Disability. If the Employer designates in the Adoption Agreement that distributions are permitted under the Plan when a Participant becomes Disabled, and the Participant becomes Disabled while in Service, the vested balance in the Deferred Compensation Account shall be paid to the Participant by the Employer as provided in Section 7.

5.3       Death. If the Participant dies while in Service, the Employer shall pay a benefit to the Participant’s Beneficiary in the amount designated in the Adoption Agreement. Payment of such benefit shall be made by the Employer as provided in Section 7.

5.4       In-Service or Education Distributions. If the Employer designates in the Adoption Agreement that in-service or education distributions are permitted under the Plan, a Participant may designate in the Participation Agreement to have a specified amount credited to the Participant’s In-Service or Education Account for in-service or education distributions at the date specified by the Participant. In no event may an in-service or education distribution of an amount be made before the date that is two years after the first day of the year in which such amount was credited to the In-Service or Education Account. Notwithstanding the foregoing, if a Participant incurs a Qualifying Distribution Event prior to the date on which the entire balance in the In-Service or Education Account has been distributed, then the balance in the In-Service or Education Account on the date of the Qualifying Distribution Event shall be paid as provided under Section 7.1 for payments on such Qualifying Distribution Event. 

5.5       Change in Control Event. If the Employer designates in the Adoption Agreement that distributions are permitted under the Plan upon the occurrence of a Change in Control Event, the Participant may designate in the Participation Agreement to have the vested balance in the Deferred Compensation Account paid to the Participant upon a Change in Control Event by the Employer as provided in Section 7. 

5.6       Unforeseeable Emergency. If the Employer designates in the Adoption Agreement that distributions are permitted under the Plan upon the occurrence of an Unforeseeable Emergency event, a distribution from the Deferred Compensation Account may be made to a Participant in the event of an Unforeseeable Emergency, subject to the following provisions: 

5.6.1    A Participant may, at any time prior to his Separation from Service for any reason, make application to the Committee to receive a distribution in a lump sum of all or a portion of the vested balance in the Deferred Compensation Account (determined as of the date the distribution, if any, is made under this Section 5.6) because of an Unforeseeable Emergency. A distribution because of an Unforeseeable Emergency shall not exceed the amount required to satisfy the Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of such distribution, after taking into account the extent to which the Unforeseeable Emergency may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship) or by stopping current deferrals under the Plan pursuant to Section 4.1.9. 

5.6.2    The Participant’s request for a distribution on account of Unforeseeable Emergency must be made in writing to the Committee. The request must specify the nature of the financial hardship, the total amount requested to be distributed from the Deferred Compensation Account, and the total amount of the actual expense incurred or to be incurred on account of the Unforeseeable Emergency. 

5.6.3    If a distribution under this Section 5.6 is approved by the Committee, such distribution will be made as soon as practicable following the date it is approved. The processing of the request shall be completed as soon as practicable from the date on which the Committee receives the properly completed written request for a distribution on account of an Unforeseeable Emergency. If a Participant’s Separation from Service occurs after a request is approved in accordance with this Section 5.6.3, but prior to distribution of the full amount approved, the approval of the request shall be automatically null and void and the benefits which the Participant is entitled to receive under the Plan shall be distributed in accordance with the applicable distribution provisions of the Plan. 

5.6.4    The Committee may from time to time adopt additional policies or rules consistent with the requirements of Section 409A of the Code to govern the manner in which such distributions may be made so that the Plan may be conveniently administered. 

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Section 6.       Vesting:

A Participant shall be fully vested in the portion of his Deferred Compensation Account attributable to Participant Deferral Credits, and all income, gains and losses attributable thereto. A Participant shall become fully vested in the portion of his Deferred Compensation Account attributable to Employer Credits, and income, gains and losses attributable thereto, in accordance with the vesting schedule and provisions designated by the Employer in the Adoption Agreement. If a Participant’s Deferred Compensation Account is not fully vested upon Separation from Service, the portion of the Deferred Compensation Account that is not fully vested shall thereupon be forfeited. 

Section 7.       Distribution Rules:

7.1       Payment Options. The Employer shall designate in the Adoption Agreement the payment options which may be elected by the Participant (lump sum, annual installments, or a combination of both). Different payment options may be made available for each Qualifying Distribution Event, and different payment options may be available for different types of Separations from Service, all as designated in the Adoption Agreement. The Participant shall elect in the Participation Agreement the method under which the vested balance in the Deferred Compensation Account will be distributed from among the designated payment options. The Participant may at such time elect a different method of payment for each Qualifying Distribution Event as specified in the Adoption Agreement. If the Participant is permitted by the Employer in the Adoption Agreement to elect different payment options and does not make a valid election, the vested balance in the Deferred Compensation Account will be distributed as a lump sum. 

Notwithstanding the foregoing, if certain Qualifying Distribution Events occur prior to the date on which the vested balance of a Participant’s Deferred Compensation Account is completely paid pursuant to this Section 7.1 following the occurrence of certain initial Qualifying Distribution Events, the following rules apply: 

7.1.1    If the initial Qualifying Distribution Event is a Separation from Service or Disability, and the Participant subsequently dies, the remaining unpaid vested balance of a Participant’s Deferred Compensation Account shall be paid as a lump sum. 

7.1.2    If the initial Qualifying Distribution Event is a Change in Control Event, and any subsequent Qualifying Distribution Event occurs (except an In-Service or Education Distribution described in Section 2.29(iv)), the remaining unpaid vested balance of a Participant’s Deferred Compensation Account shall be paid as provided under Section 7.1 for payments on such subsequent Qualifying Distribution Event. 

7.2       Timing of Payments. Payment shall be made in the manner elected by the Participant and shall commence as soon as practicable after (but no later than 60 days after) the distribution date elected for the Qualifying Distribution Event. In the event the Participant fails to make a valid election of the payment method, the distribution will be made in a single lump sum payment as soon as practicable after (but no later than 60 days after) the Qualifying Distribution Event. A payment may be further delayed to the extent permitted in accordance with regulations and guidance under Section 409A of the Code.

7.3       Installment Payments. If the Participant elects to receive installment payments upon a Qualifying Distribution Event, the payment of each annual installment shall be made on the anniversary of the date of the first installment payment, and the amount of the annual installment shall be adjusted on such anniversary for credits or debits to the Participant’s account pursuant to Section 8 of the Plan. Such adjustment shall be made by dividing the balance in the Deferred Compensation Account on such date by the number of annual installments remaining to be paid hereunder; provided that the last annual installment due under the Plan shall be the entire amount credited to the Participant’s account on the date of payment. 

7.4       De Minimis Amounts. Notwithstanding any payment election made by the Participant, if the Employer designates a pre-determined de minimis amount in the Adoption Agreement, the vested balance in the Deferred Compensation Account of the Participant will be distributed in a single lump sum payment if at the time of a permitted Qualifying Distribution Event the vested balance does not exceed such pre-determined de minimis amount; provided, however, that such distribution will be made only where the Qualifying Distribution Event is a 

8

 

Separation from Service, death, Disability (if applicable) or Change in Control Event (if applicable). Such payment shall be made on or before the later of (i) December 31 of the calendar year in which the Qualifying Distribution Event occurs, or (ii) the date that is 2-1/2 months after the Qualifying Distribution Event occurs. In addition, the Employer may distribute a Participant’s vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant’s entire interest in the Plan as provided under Section 409A of the Code.

7.5       Subsequent Elections. With the consent of the Committee, a Participant may delay or change the method of payment of the Deferred Compensation Account subject to the following requirements: 

7.5.1    The new election may not take effect until at least 12 months after the date on which the new election is made. 

7.5.2    If the new election relates to a payment for a Qualifying Distribution Event other than the death of the Participant, the Participant becoming Disabled, or an Unforeseeable Emergency, the new election must provide for the deferral of the payment for a period of at least five years from the date such payment would otherwise have been made.

7.5.3    If the new election relates to a payment from the In-Service or Education Account, the new election must be made at least 12 months prior to the date of the first scheduled payment from such account. 

For purposes of this Section 7.5 and Section 7.6, a payment is each separately identified amount to which the Participant is entitled under the Plan; provided, that entitlement to a series of installment payments is treated as the entitlement to a single payment. 

7.6       Acceleration Prohibited. The acceleration of the time or schedule of any payment due under the Plan is prohibited except as expressly provided in regulations and administrative guidance promulgated under Section 409A of the Code (such as accelerations for domestic relations orders and employment taxes). It is not an acceleration of the time or schedule of payment if the Employer waives or accelerates the vesting requirements applicable to a benefit under the Plan. 

Section 8.       Accounts; Deemed Investment; Adjustments to Account:

8.1       Accounts. The Committee shall establish a book reserve account, entitled the “Deferred Compensation Account,” on behalf of each Participant. The Committee shall also establish an In-Service or Education Account as a part of the Deferred Compensation Account of each Participant, if applicable. The amount credited to the Deferred Compensation Account shall be adjusted pursuant to the provisions of Section 8.3.

8.2       Deemed Investments. The Deferred Compensation Account of a Participant shall be credited with an investment return determined as if the account were invested in one or more investment funds made available by the Committee. The Participant shall elect the investment funds in which his Deferred Compensation Account shall be deemed to be invested. Such election shall be made in the manner prescribed by the Committee and shall take effect upon the entry of the Participant into the Plan. The investment election of the Participant shall remain in effect until a new election is made by the Participant. In the event the Participant fails for any reason to make an effective election of the investment return to be credited to his account, the investment return shall be determined by the Committee. 

8.3       Adjustments to Deferred Compensation Account. With respect to each Participant who has a Deferred Compensation Account under the Plan, the amount credited to such account shall be adjusted by the following debits and credits, at the times and in the order stated: 

8.3.1    The Deferred Compensation Account shall be debited each business day with the total amount of any payments made from such account since the last preceding business day to him or for his benefit. Unless otherwise specified by the Employer, each deemed investment fund will be debited pro-rata based on the value of the investment funds as of the end of the preceding business day. 

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8.3.2    The Deferred Compensation Account shall be credited on each Crediting Date with the total amount of any Participant Deferral Credits and Employer Credits to such account since the last preceding Crediting Date. 

8.3.3    The Deferred Compensation Account shall be credited or debited on each day securities are traded on a national stock exchange with the amount of deemed investment gain or loss resulting from the performance of the investment funds elected by the Participant in accordance with Section 8.2. The amount of such deemed investment gain or loss shall be determined by the Committee and such determination shall be final and conclusive upon all concerned. 

Section 9.       Administration by Committee:

9.1       Membership of Committee. If the Committee consists of individuals appointed by the Board, they will serve at the pleasure of the Board. Any member of the Committee may resign, and his successor, if any, shall be appointed by the Board.

9.2       General Administration. The Committee shall be responsible for the operation and administration of the Plan and for carrying out its provisions. The Committee shall have the full authority and discretion to make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan and decide or resolve any and all questions, including interpretations of this Plan, as may arise in connection with this Plan. Any such action taken by the Committee shall be final and conclusive on any party. To the extent the Committee has been granted discretionary authority under the Plan, the Committee’s prior exercise of such authority shall not obligate it to exercise its authority in a like fashion thereafter. The Committee shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and reports furnished by any actuary, accountant, controller, counsel or other person employed or engaged by the Employer with respect to the Plan. The Committee may, from time to time, employ agents and delegate to such agents, including employees of the Employer, such administrative or other duties as it sees fit.

9.3       Indemnification. To the extent not covered by insurance, the Employer shall indemnify the Committee, each employee, officer, director, and agent of the Employer, and all persons formerly serving in such capacities, against any and all liabilities or expenses, including all legal fees relating thereto, arising in connection with the exercise of their duties and responsibilities with respect to the Plan, provided however that the Employer shall not indemnify any person for liabilities or expenses due to that person’s own gross negligence or willful misconduct. 

Section 10.     Contractual Liability, Trust:

10.1     Contractual Liability. Unless otherwise elected in the Adoption Agreement, the Company shall be obligated to make all payments hereunder. This obligation shall constitute a contractual liability of the Company to the Participants, and such payments shall be made from the general funds of the Company. The Company shall not be required to establish or maintain any special or separate fund, or otherwise to segregate assets to assure that such payments shall be made, and the Participants shall not have any interest in any particular assets of the Company by reason of its obligations hereunder. To the extent that any person acquires a right to receive payment from the Company, such right shall be no greater than the right of an unsecured creditor of the Company.

10.2     Trust. The Employer may establish a trust to assist it in meeting its obligations under the Plan. Any such trust shall conform to the requirements of a grantor trust under Revenue Procedures 92-64 and 92-65 and at all times during the continuance of the trust the principal and income of the trust shall be subject to claims of general creditors of the Employer under federal and state law. The establishment of such a trust would not be intended to cause Participants to realize current income on amounts contributed thereto, and the trust would be so interpreted and administered.

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Section 11.     Allocation of Responsibilities:

The persons responsible for the Plan and the duties and responsibilities allocated to each are as follows: 

	
11.1
	
Board. 

	
(i)
	
To amend the Plan; 

	
(ii)
	
To appoint and remove members of the Committee; and 

	
(iii)
	
To terminate the Plan as permitted in Section 14. 

	
11.2
	
Committee. 

	
(i)
	
To designate Participants; 

	
(ii)
	
To interpret the provisions of the Plan and to determine the rights  of the Participants under the Plan, except to the extent otherwise provided in Section 16 relating to claims procedure;

	
(iii)
	
To administer the Plan in accordance with its terms, except to the extent powers to administer the Plan are specifically delegated to another person or persons as provided in the Plan; 

	
(iv)
	
To account for the amount credited to the Deferred Compensation Account of a Participant;

	
(v)
	
To direct the Employer in the payment of benefits; 

	
(vi)
	
To file such reports as may be required with the United States Department of Labor, the Internal Revenue Service and any other government agency to which reports may be required to be submitted from time to time; and 

	
(vii)
	
To administer the claims procedure to the extent provided in Section 16. 

Section 12.     Benefits Not Assignable; Facility of Payments:

12.1     Benefits Not Assignable. No portion of any benefit credited or paid under the Plan with respect to any Participant shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void, nor shall any portion of such benefit be in any manner payable to any assignee, receiver or any one trustee, or be liable for his debts, contracts, liabilities, engagements or torts. Notwithstanding the foregoing, in the event that all or any portion of the benefit of a Participant is transferred to the former Spouse of the Participant incident to a divorce, the Committee shall maintain such amount for the benefit of the former Spouse until distributed in the manner required by an order of any court having jurisdiction over the divorce, and the former Spouse shall be entitled to the same rights as the Participant with respect to such benefit. 

12.2     Plan-Approved Domestic Relations Orders. The Committee shall establish procedures for determining whether an order directed to the Plan is a Plan-Approved Domestic Relations Order. If the Committee determines that an order is a Plan-Approved Domestic Relations Order, the Committee shall cause the payment of amounts pursuant to or segregate a separate account as provided by (and to prevent any payment or act which might be inconsistent with) the Plan-Approved Domestic Relations Order.

12.3     Payments to Minors and Others. If any individual entitled to receive a payment under the Plan shall be physically, mentally or legally incapable of receiving or acknowledging receipt of such payment, the Committee, upon the receipt of satisfactory evidence of his incapacity and satisfactory evidence that another person or institution is maintaining him and that no guardian or committee has been appointed for him, may cause any payment 

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otherwise payable to him to be made to such person or institution so maintaining him. Payment to such person or institution shall be in full satisfaction of all claims by or through the Participant to the extent of the amount thereof. 

Section 13.     Beneficiary:

The Participant’s beneficiary shall be the person, persons, entity or entities designated by the Participant on the beneficiary designation form provided by and filed with the Committee or its designee. If the Participant does not designate a beneficiary, the beneficiary shall be his Surviving Spouse. If the Participant does not designate a beneficiary and has no Surviving Spouse, the beneficiary shall be the Participant’s estate. The designation of a beneficiary may be changed or revoked only by filing a new beneficiary designation form with the Committee or its designee. If a beneficiary (the “primary beneficiary”) is receiving or is entitled to receive payments under the Plan and dies before receiving all of the payments due him, the balance to which he is entitled shall be paid to the contingent beneficiary, if any, named in the Participant’s current beneficiary designation form. If there is no contingent beneficiary, the balance shall be paid to the estate of the primary beneficiary. Any beneficiary may disclaim all or any part of any benefit to which such beneficiary shall be entitled hereunder by filing a written disclaimer with the Committee before payment of such benefit is to be made. Such a disclaimer shall be made in a form satisfactory to the Committee and shall be irrevocable when filed. Any benefit disclaimed shall be payable from the Plan in the same manner as if the beneficiary who filed the disclaimer had predeceased the Participant. 

Section 14.     Amendment and Termination of Plan:

The Company may amend any provision of the Plan or terminate the Plan at any time; provided, that in no event shall such amendment or termination reduce the balance in any Participant’s Deferred Compensation Account as of the date of such amendment or termination, nor shall any such amendment affect the terms of the Plan relating to the payment of such Deferred Compensation Account. Notwithstanding the foregoing, the following special provisions shall apply: 

14.1     Termination in the Discretion of the Employer. Except as otherwise provided in Sections 14.2, the Company in its discretion may terminate the Plan and distribute benefits to Participants subject to the following requirements and any others specified under Section 409A of the Code: 

14.1.1  All arrangements sponsored by the Employer that would be aggregated with the Plan under Section 1.409A-l(c) of the Treasury Regulations are terminated. 

14.1.2  No payments other than payments that would be payable under the terms of the Plan if the termination had not occurred are made within 12 months of the termination date. 

14.1.3  All benefits under the Plan are paid within 24 months of the termination date.

14.1.4  The Employer does not adopt a new arrangement that would be aggregated with the Plan under Section 1.409A-1(c) of the Treasury Regulations providing for the deferral of compensation at any time within 3 years following the date of termination of  the Plan.

14.1.5  The termination does not occur proximate to a downturn in the financial health of the Employer. 

14.2     Termination Upon Change in Control Event. If the Company terminates the Plan within thirty days preceding or twelve months following a Change in Control Event, the Deferred Compensation Account of each Participant shall become fully vested and payable to the Participant in a lump sum within twelve months following 

the date of termination, subject to the requirements of Section 409A of the Code. 

Section 15.     Communication to Participants:

The Employer shall make a copy of the Plan available for inspection by Participants and their beneficiaries during reasonable hours at the principal office of the Employer. 

12

 

Section 16.     Claims Procedure:

The following claims procedure shall apply with respect to the Plan: 

16.1     Filing of a Claim for Benefits. If a Participant or Beneficiary (the “claimant”) believes that he is entitled to benefits under the Plan which are not being paid to him or which are not being accrued for his benefit, he shall file a written claim therefore with the Committee. 

16.2     Notification to Claimant of Decision. Within 90 days after receipt of a claim by the Committee (or within 180 days if special circumstances require an extension of time), the Committee shall notify the claimant of the decision with regard to the claim.  In the event of such special circumstances requiring an extension of time, there shall be furnished to the claimant prior to expiration of the initial 90-day period written notice of the extension, which notice shall set forth the special circumstances and the date by which the decision shall be furnished. If such claim shall be wholly or partially denied, notice thereof shall be in writing and worded in a manner calculated to be understood by the claimant, and shall set forth: (i) the specific reason or reasons for the denial; (ii) specific reference to pertinent provisions of the Plan on which the denial is based; (iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) an explanation of the procedure for review of the denial and the time limits applicable to such procedures, including a statement of the claimant’s right to bring a civil action under ERISA following an adverse benefit determination on review. Notwithstanding the foregoing, if the claim relates to a disability determination, the Committee shall notify the claimant of the decision within 45 days (which may be extended for an additional 30 days if required by special circumstances). 

16.3     Procedure for Review. Within 60 days following receipt by the claimant of notice denying his claim, in whole or in part, or, if such notice shall not be given, within 60 days following the latest date on which such notice could have been timely given, the claimant may appeal denial of the claim by filing a written application for review with the Committee. Following such request for review, the Committee shall fully and fairly review the decision denying the claim. Prior to the decision of the Committee, the claimant shall be given an opportunity to review pertinent documents and to submit issues and comments in writing. 

16.4     Decision on Review. The decision on review of a claim denied in whole or in part by the Committee shall be made in the following manner: 

16.4.1  Within 60 days following receipt by the Committee of the request for review (or within 120 days if special circumstances require an extension of time), the Committee shall notify the claimant in writing of its decision with regard to the claim. In the event of such special circumstances requiring an extension of time, written notice of the extension shall be furnished to the claimant prior to the commencement of the extension. Notwithstanding the foregoing, if the claim relates to a disability determination, the Committee shall notify the claimant of the decision within 45 days (which may be extended for an additional 45 days if required by special circumstances). 

16.4.2  With respect to a claim that is denied in whole or in part, the decision on review shall set forth specific reasons for the decision, shall be written in a manner calculated to be understood by the claimant, and shall set forth: 

	
(i)
	
the specific reason or reasons for the adverse determination; 

	
(ii)
	
specific reference to pertinent Plan provisions on which the adverse determination is based; 

	
(iii)
	
a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits; and 

	
(iv)
	
a statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain the information about such procedures, as well as a statement of the claimant’s right to bring an action under ERISA section 502(a). 

13

 

16.4.3  The decision of the Committee shall be final and conclusive. 

16.5     Action by Authorized Representative of Claimant. All actions set forth in this Section 16 to be taken by the claimant may likewise be taken by a representative of the claimant duly authorized by him to act in his behalf on such matters. The Committee may require such evidence as either may reasonably deem necessary or advisable of the authority to act of any such representative. 

Section 17.     Miscellaneous Provisions:

17.1     Set off. Notwithstanding any other provision of this Plan, the Employer may reduce the amount of any payment otherwise payable to or on behalf of a Participant hereunder (net of any required withholdings) at the time payment is due by the amount of any loan, cash advance, extension of credit or other obligation of the Participant to the Employer that is then due and payable, and the Participant shall be deemed to have consented to such reduction. In addition, the Employer may at any time offset a Participant’s Deferral Compensation Account by an amount up to $5,000 to collect any such amount in accordance with the requirements of Section 409A of the Code. 

17.2     Notices. Each Participant who is not in Service and each Beneficiary shall be responsible for furnishing the Committee or its designee with his current address for the mailing of notices and benefit payments. Any notice required or permitted to be given to such Participant or Beneficiary shall be deemed given if directed to such address and mailed by regular United States mail, first class, postage prepaid. If any check mailed to such address is returned as undeliverable to the addressee, mailing of checks will be suspended until the Participant or Beneficiary furnishes the proper address. This provision shall not be construed as requiring the mailing of any notice or notification otherwise permitted to be given by posting or by other publication. 

17.3     Lost Distributees. A benefit shall be deemed forfeited if the Committee is unable to locate the Participant or Beneficiary to whom payment is due on or before the fifth anniversary of the date payment is to be made or commence; provided, that the deemed investment rate of return pursuant to Section 8.2 shall cease to be applied to the Participant’s account following the first anniversary of such date; provided further, however, that such benefit shall be reinstated if a valid claim is made by or on behalf of the Participant or Beneficiary for all or part of the forfeited benefit. 

17.4     Reliance on Data. The Employer and the Committee shall have the right to rely on any data provided by the Participant or by any Beneficiary. Representations of such data shall be binding upon any party seeking to claim a benefit through a Participant, and the Employer and the Committee shall have no obligation to inquire into the accuracy of any representation made at any time by a Participant or Beneficiary. 

17.5     Receipt and Release for Payments. Subject to the provisions of Section 17.1, any payment made from the Plan to or with respect to any Participant or Beneficiary, or pursuant to a disclaimer by a Beneficiary, shall, to the extent thereof, be in full satisfaction of all claims hereunder against the Plan and the Employer with respect to the Plan. The recipient of any payment from the Plan may be required by the Committee, as a condition precedent to such payment, to execute a receipt and release with respect thereto in such form as shall be acceptable to the Committee. 

17.6     Headings. The headings and subheadings of the Plan have been inserted for convenience of reference and are to be ignored in any construction of the provisions hereof.

17.7     Continuation of Employment. The establishment of the Plan shall not be construed as conferring any legal or other rights upon any Employee or any persons for continuation of employment, nor shall it interfere with the right of the Employer to discharge any Employee or to deal with him without regard to the effect thereof under the Plan.

17.8     Merger or Consolidation; Assumption of Plan. No Employer shall consolidate or merge into or with another corporation or entity, or transfer all or substantially all of its assets to another corporation, partnership, trust or other entity (a “Successor Entity”) unless such Successor Entity shall assume the rights, obligations and liabilities of the Employer under the Plan and upon such assumption, the Successor Entity shall become obligated to perform 

14

 

the terms and conditions of the Plan. Nothing herein shall prohibit the assumption of the obligations and liabilities of the Employer under the Plan by any Successor Entity. 

17.9     Construction. The Employer shall designate in the Adoption Agreement the state according to whose laws the provisions of the Plan shall be construed and enforced, except to the extent that such laws are superseded by ERISA and the applicable requirements of the Code. 

17.10   Taxes. The Employer or other payor may withhold a benefit payment under the Plan or a Participant’s wages, or the Employer may reduce a Participant’s Account balance, in order to meet any federal, state, or local or employment tax withholding obligations with respect to Plan benefits, as permitted under Section 409A of the Code. The Employer or other payor shall report Plan payments and other Plan-related information to the appropriate governmental agencies as required under applicable laws. 

Section 18.     Transition Rules:

This Section 18 does not apply to plans newly established on or after January 1, 2009. 

18.1     2005 Election Termination. Notwithstanding Section 4.1.4, at any time during 2005, a Participant may terminate a Participation Agreement, or modify a Participation Agreement to reduce the amount of Compensation subject to the deferral election, so long as the Compensation subject to the terminated or modified Participation Agreement is includible in the income of the Participant in 2005 or, if later, in the taxable year in which the amounts are earned and vested. 

18.2     2005 Deferral Election. The requirements of Section 4.1.2 relating to the timing of the Participation Agreement shall not apply to any deferral elections made on or before March 15, 2005, provided that (a) the amounts to which the deferral election relate have not been paid or become payable at the time of the election, (b) the Plan was in existence on or before December 31, 2004, (c) the election to defer compensation is made in accordance with the terms of the Plan as in effect on December 31, 2005 (other than a requirement to make a deferral election after March 15, 2005), and (d) the Plan is otherwise operated in accordance with the requirements of Section 409A of the Code. 

18.3     2005 Termination of Participation; Distribution. Notwithstanding anything in this Plan to the contrary, at any time during 2005, a Participant may terminate his or her participation in the Plan and receive a distribution of his Deferred Compensation Account balance on account of that termination, so long as the full amount of such distribution is includible in the Participant’s income in 2005 or, if later, in the taxable year of the Participant in which the amount is earned and vested. 

18.4     Payment Elections. Notwithstanding the provisions of Sections 7.1 or 7.5 of the Plan, a Participant may elect on or before December 31, 2008, the time or form of payment of amounts subject to Section 409A of the Code provided that such election applies only to amounts that would not otherwise be payable in the year of the election and does not cause an amount to paid in the year of the election that would not otherwise be payable in such year. 

 

15

 

 

			
	

	
The Executive

Nonqualified “Excess” Plantm
	
ADPTN AGMT

Adoption Agreement

THIS AGREEMENT is made the 1st day of October, 2002, by II-VI, Incorporated (the “Employer”), having its principal office at 375 Saxonburg Blvd., Saxonburg, PA 16056-9499 and EXECUTIVE BENEFIT SERVICES, INC. (the “Sponsor”), having its principal office at 434 Fayetteville Street, Suite 1160, Raleigh, North Carolina 27601.

W I T N E S S E T H:

WHEREAS, the Sponsor has established The Executive Nonqualified Excess PlanTM (the “Plan”); and

WHEREAS, the Employer desires to adopt the Plan as an unfunded, nonqualified deferred compensation plan, for the benefit of the Employer’s x Employees and/or o Independent Contractors;

NOW, THEREFORE, the Employer hereby adopts the Plan in accordance with the terms and conditions set forth in this Adoption Agreement:

ARTICLE I

Terms used in this Adoption Agreement shall have the same meaning as in the Plan, unless some other meaning is expressly herein set forth. The Employer hereby represents and warrants that the Plan has been adopted by the Employer upon proper authorization and the Employer hereby elects to adopt the Plan for the benefit of its Participants as referred to in the Plan. By the execution of this Adoption Agreement, the Employer hereby agrees to be bound by the terms of the Plan.

This Adoption Agreement may only be used in connection with The Executive Nonqualified Excess Plan. The Sponsor will inform the Employer of any amendments to the Plan or of the discontinuance or abandonment of the Plan. For questions concerning the Plan, the Employer may call the Sponsor at (919) 833-1042.

ARTICLE II

The Employer hereby makes the following designations or elections for the purpose of the Plan [Section references below correspond to Section references in the Plan]:

© 2000 Executive Benefit Services, Inc.

16

 

2.4      Adjustment Date: The Deferred Compensation Account of Participants shall be adjusted for the amount of any Salary Deferral Credits, Employer Matching Credits and Employer Performance Incentive Credits to such account on the last business day of each Plan Year and such other times as may be designated below [check any additional desired Adjustment Dates]:

 

	
 
	
___
	
 
	
(a)
	
 
	
The last business day of each calendar quarter during the Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
The last business day of each month during the Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
The last business day of each payroll period during the Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(d)
	
 
	
Each day securities are traded on a national stock exchange [when received by EBS].

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(e)
	
 
	
Other [specify]
	
                                                                       

	
 
	
 
	
 
	
 
	
 
	
                                                                                                  
	
.

2.9       Compensation: The “Compensation” of a Participant shall mean all of each Participant’s [check desired option(s)]:

 

	
 
	
___
	
 
	
(a)
	
 
	
Compensation received as an Employee reportable in box 1, Wages. Tips and other Compensation, on Form W-2.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
Annual base salary.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(c)
	
 
	
Annual bonus.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(d)
	
 
	
Long term incentive plan compensation.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(e)
	
 
	
Compensation received as an Independent Contractor reportable on Form 1099.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(f)
	
 
	
Other [specify]:
	
                                                                       

	
 
	
 
	
 
	
 
	
 
	
                                                                                                  
	
.

Notwithstanding the foregoing, Compensation x SHALL o SHALL NOT include Salary Deferral Credits under this Plan and amounts contributed by the Participant pursuant to a Salary Deferral Agreement to another employee benefit plan of the Employer which are not includible in the gross income of the Employee under Section 125, 402(e)(3), 402(h) or 403(b) of the Code.

2.13     Effective Date: [check desired option]:

 

	
 
	
___
	
 
	
(a)
	
 
	
This is a newly-established Plan, and the Effective Date of the Plan is                                .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
This is an amendment and restatement of the II-VI Incorporated Deferred Compensation Plan with an original effective date of June 30, 1996, and the effective date of this amended and restated Plan is October 1, 2002. This is amendment number 2.

 

17

 

2.20     Normal Retirement Age: The Normal Retirement Age of a Participant shall be [check desired option]:

 

	
 
	
___
	
 
	
(a)
	
 
	
Age                   .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
The later of age 65 or the 5th anniversary of the participation commencement date. The participation commencement date is the first day of the first Plan Year in which the Participant commenced participation in the Plan.

2.22     Participating Employer(s): As of the Effective Date, the following Participating Employer(s) are parties to the Plan [list all employer-parties, including the Employer]:

 

	
Name of Employer
	
 
	
Address
	
 
	
Telephone No.
	
 
	
EIN

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
II-VI, Incorporated
	
 
	
375 Saxonburg Blvd.
	
 
	
724-352-4455
	
 
	
25-1214948

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Saxonburg, PA 16056
	
 
	
 
	
 
	
 

2.23     Plan: The name of the Plan as applied to the Employer is:

            II-VI Incorporated Deferred Compensation Plan.

2.24     Plan Administrator: The Plan Administrator shall be [check desired option]:

 

	
 
	
     
	
 
	
(a)
	
 
	
Committee.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
     
	
 
	
(c)
	
 
	
Other (specify):
	
                                                                                                                   .

2.25       Plan Year: The Plan Year shall be the 12 consecutive calendar month period ending on the last day of the month of June, and each anniversary thereof.

2.34      Trust: [check desired option]:

 

	
 
	
XX
	
 
	
(a)
	
 
	
The Employer does desire to establish a “rabbi” trust for the purpose of setting aside assets of the Employer contributed thereto for the payment of benefits under the Plan.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
If a trust is established and the value of the assets of the trust exceed             % (insert desired percentage greater than 100%) of the amount required to pay benefits under the Plan, then the Trustee is authorized to return such excess assets to the Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
The Employer does not desire to establish a “rabbi” trust for the purpose of setting aside assets of the Employer contributed thereto for the payment of benefits under the Plan.

18

 

2.36       Years of Service: For vesting purposes, Years of Service of a Participant shall be calculated from the date designated below [check desired option]:

 

	
 
	
XX
	
 
	
(a)
	
 
	
First Day of Service.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
Effective Date of Plan Entry.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
Each Contribution Date. Under this option (iii), each Employer Matching Credit or Performance Incentive Credit shall vest in accordance with the applicable schedule selected in Section 7 of this Adoption Agreement based on the Years of Service of a Participant from the Adjustment Date on which each Employer Matching Credit or Performance Incentive Credit is credited to his or her Deferred Compensation Account.

3.1          Salary Deferral Credits: A Participant may elect to have his Compensation (as selected in Section 2.9 of this Adoption Agreement) reduced by the following percentage or amount per pay period, or for a specified pay period or periods, as designated in writing to the Committee [check the applicable options]:

 

	
 
	
___
	
 
	
(a)
	
 
	
Annual base salary:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
[complete the following blanks only if a minimum or maximum deferral is desired]:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
minimum deferral: $                           or                           %

	
 
	
 
	
 
	
 
	
 
	
maximum deferral: $                           or                           %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
Annual bonus:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
[complete the following blanks only if a minimum or maximum deferral is desired]:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
minimum deferral: $                           or                           %

	
 
	
 
	
 
	
 
	
 
	
maximum deferral: $                           or                           %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
Other [please specify type, as selected in Section 2.9 of this Adoption Agreement]:                 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
[complete the following blanks only if a minimum or maximum deferral is desired]:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
minimum deferral: $                           or                           %

	
 
	
 
	
 
	
 
	
 
	
maximum deferral: $                           or                           %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(d)
	
 
	
No Salary Deferral provision.

3.1.3      Termination of Salary Deferrals: A Participant may terminate his Salary Deferral Agreement effective as of [check desired option]:

 

	
 
	
XX
	
 
	
(a)
	
 
	
The first full payroll period commencing after the date written notice of the termination is received by the Committee.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
The January 1 occurring after the date written notice of the termination is received by the Committee.

19

 

3.2       Employer Matching Credits: The Employer may make Matching Credits to the Deferred Compensation Account of each Participant in an amount determined as follows [check desired option(s)]:

 

	
 
	
___
	
 
	
(a)
	
 
	
                   % of the Participant’s Salary Deferral Credits.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
                    % of the first                    % of the Participant’s Compensation which is elected as a Salary Deferral Credit.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(c)
	
 
	
An amount determined each Plan Year by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(d)
	
 
	
The Employer shall decide from year to year whether Matching Credits will be made and shall notify Participants annually of the manner in which Matching Credits will be calculated for the subsequent year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(e)
	
 
	
The Employer shall not match amounts provided above in excess of $                  , or in excess of      % of the Participant’s Compensation per Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(f)
	
 
	
No Employer Matching Credits provision.

3.3        Employer Performance Incentive Credits: The Employer may make Performance Incentive Credits to the Deferred Compensation Account of each Active Participant in an amount determined as follows:

 

	
 
	
___
	
 
	
(a)
	
 
	
Such amount out of the current or accumulated net profit of the Employer for such year as the Employer in its sole discretion shall determine.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
Such amount as the Employer in its sole discretion shall determine without regard to current or accumulated net profit.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
The Employer shall not make Performance Incentive Credits in excess of $               , or in excess of          % of the Participant’s Compensation per Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(d)
	
 
	
No Employer Performance Incentive Credits provision.

4.1       Death of a Participant: If the Participant dies while in Service, the Employer shall pay a benefit to the Beneficiary in an amount equal to the accrued benefit of the Participant determined as of the date payments to the Beneficiary commence, plus [check desired option]:

 

	
 
	
___
	
 
	
(a)
	
 
	
An amount to be determined by the Committee.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
A lump sum of $                                           .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
          times the annual base salary of the Participant at his date of death.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(d)
	
 
	
Other [specify]:

                                                                                              .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(e)
	
 
	
No additional benefits.

20

 

4.4.2     Early Retirement: The Employer may elect to provide for Early Retirement. If Early Retirement is permitted, it shall be subject to the following eligibility requirements [check desired option]:

 

	
 
	
___
	
 
	
(a)
	
 
	
Completion of             Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
Attainment of age           .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
Completion of            Years of Service and attainment of age           .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(d)
	
 
	
No Early Retirement provisions.

5.1        Regular In-Service withdrawals: [check desired option]:

 

	
 
	
___
	
 
	
(a)
	
 
	
The Employer does elect to permit regular in-service withdrawals by a Participant from his Deferred Compensation Account.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
The Employer does not elect to permit regular in-service withdrawals by a Participant from his Deferred Compensation Account.

5.3       “Haircut” Withdrawals: [check desired option]:

 

	
 
	
XX
	
 
	
(a)
	
 
	
The Employer does elect to permit “haircut” withdrawals by a Participant from his Deferred Compensation Account.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Specify percentage (not less than 10%) of amount withdrawn that shall be forfeited: 10%

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
The Employer does not elect to permit “haircut” withdrawals by a Participant from his Deferred Compensation Account.

5.4        College Education Withdrawals: [check desired option]:

 

	
 
	
___
	
 
	
(a)
	
 
	
The Employer does elect to permit college education withdrawals by a Participant from his Deferred Compensation Account.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
The Employer does not elect to permit college education withdrawals by a Participant from his Deferred Compensation Account.

6.1       Payment Options: Any benefit payable under the Plan may be made to the Participant or his Beneficiary (as applicable) in any of the following payment forms, as selected by the Participant upon his entry into the Plan [check desired option(s)]:

 

	
 
	
XX
	
 
	
(a)
	
 
	
A lump sum in cash as soon as feasible following the date Participant’s service with the Employer terminates for any reason (including Retirement, Disability or death).

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
Approximately equal annual installments over a term of 2, 5 or 10 years as elected by the Participant upon his entry into the Plan.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
An amount specified by the Participant in a Lump Sum, with the remainder in approximately equal annual installments over a period of                years.

	
 
	
 
	
 
	
 
	
 
	
 

 

21

 

	
 
	
 
	
 
	
 
	
 
	
Payment of the benefit shall commence as of the following date [select desired option]:

 

	
 
	
___
	
 
	
(i)
	
 
	
The first business day of the calendar year following the date Participant’s service with the Employer terminates for any reason (including Retirement, Disability or death).

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(ii)
	
 
	
The first business day of the calendar quarter following the date Participant’s service with the Employer terminates for any reason (including Retirement, Disability or death).

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(iii)
	
 
	
The first business day of the calendar month following the date Participant’s service with the Employer terminates for any reason (including Retirement, Disability or death).

 

	
 
	
 
	
 
	
 
	
 
	
The payment of each annual installment shall be made on the anniversary of the date selected for the commencement of the installment payments in this subsection (ii). The amount of the annual installment shall be adjusted on each anniversary date of the commencement of the installment payments for credits or debits to the Participant’s account pursuant to Section 8 of the Plan.  Such adjustment shall be made by dividing the balance in the Deferred Compensation Account on each such date (following adjustment on such date) by the number of annual installments remaining to be paid hereunder; provided that the last annual installment due under the Plan shall be the entire amount credited to the Participant’s account on the date of payment.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
Other [specify]:                                                                      

22

 

7.        Vesting:

 

	
 
	
(a)
	
 
	
Vesting of Employer Matching Credits: The nonforfeitable percentage of each Participant in his Accrued Benefit attributable to any applicable Employer Matching Credits shall be as follows [check one]:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
XX
	
 
	
(i)
	
 
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(ii)
	
 
	
100% vesting after          Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(iii)
	
 
	
100% vesting at age         .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(iv)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
 
	
 
	
0%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
 
	
 
	
20%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
 
	
 
	
40%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
 
	
 
	
60%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
 
	
 
	
80%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
or more
	
 
	
100%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(v)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
3
	
 
	
 
	
0%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
 
	
 
	
20%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
 
	
 
	
40%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
 
	
 
	
60%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
 
	
 
	
80%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
or more
	
 
	
100%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(vi)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
8
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10
	
 or more
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(vii)
	
 
	
Not applicable
	
 
	
 
	
 
	
 

In addition, the forfeitable percentage of each Participant in his Accrued Benefit attributable to any applicable Employer Matching Credits x SHALL o SHALL NOT become 100% vested at the Death or Disability of the Participant.

23

 

 

	
 
	
(b)
	
 
	
Vesting of Employer Performance Incentive Credits: The nonforfeitable percentage of each Participant in his Accrued Benefit attributable to any applicable Employer Performance Incentive Credits shall be as follows [check one]:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(i)
	
 
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(ii)
	
 
	
100% vesting after           Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(iii)
	
 
	
100% vesting at age          .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(iv)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
 
	
 
	
0%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
 
	
 
	
20%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
 
	
 
	
40%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
 
	
 
	
60%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
 
	
 
	
80%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
or more
	
 
	
100%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(v)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
3
	
 
	
 
	
0%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
 
	
 
	
20%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
 
	
 
	
40%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
 
	
 
	
60%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
 
	
 
	
80%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
or more
	
 
	
100%
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
___
	
 
	
(vi)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
8
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9
	
 
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10
	
 or more
	
 
	
      %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
XX
	
 
	
(vii)
	
 
	
Not applicable
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

In addition, the forfeitable percentage of each Participant in his Accrued Benefit attributable to any applicable Employer Performance Incentive Credits o SHALL o SHALL NOT become 100% vested at the Death or Disability of the Participant.

24

 

14.        Amendment or Termination of Plan: [check or complete all that apply]:

 

	
 
	
___
	
 
	
(a)
	
 
	
Notwithstanding any provision in this Adoption Agreement or the Plan to the contrary, Section         of the Plan shall be amended to read as follows:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
See attached Exhibit        .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
The Plan shall be terminated upon the occurrence of one or more of the following events [check if desired]:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(i)      The amount of shareholders equity shown on the financial statements of the Employer for each of the two most recent fiscal years is less than $              .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(ii)      The aggregate net loss (after tax) as reported on the financial statements of the Employer for the two most recent fiscal years is greater than $              .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(iii)      There is a change of control of the Employer. For this purpose, a “change of control” shall be deemed to have occurred if: (A) any person other than an officer who is an employee of the Employer for at least one year preceding the change of control, acquires or becomes the beneficial owner, directly or indirectly, of securities of the Employer representing        % [insert percentage] or more of the combined voting power of the Employer’s then outstanding securities and thereafter, the membership of the Board becomes such that a majority are persons who were not members of the Board at the time of the acquisition of securities; or (B) the Employer, or its assets, are acquired by or combined with another entity and less than a majority of the outstanding voting shares of such entity after the acquisition or combination are owned, immediately after the acquisition or combination, by the owners of voting shares of the Employer immediately prior to the acquisition or combination.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(iv)      Other [specify]:

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

17.9       Construction: The provisions of the Plan and Trust (if any) shall be construed and enforced according to the laws of the State of Pennsylvania, except to the extent that such laws are superseded by ERISA.

IN WITNESS WHEREOF, this Agreement has been executed as of the day and year first above stated.

 

	
II-VI, Incorporated

	
Name of Employer

	
 
	
 
	
 

	
By:
	
 
	
/s/ Francis J. Kramer

	
 
	
 
	
Authorized Person

	
 
	
 
	
Francis J. Kramer

	
 
	
 
	
President and Chief Operating Officer

NOTE: Execution of this Adoption Agreement creates a legal liability of the Employer with significant tax consequences to the Employer and Participants. The Employer should obtain legal and tax advice from its professional advisors before adopting the Plan. The Sponsor disclaims all liability for the legal and tax consequences which result from the elections made by the Employer in this Adoption Agreement.

 

 

 

25

 

	

	
Principal Life Insurance Company

Raleigh, NC 27612

1-800-999-4031

A member of the Principal Financial Group®
	
 
	
The Executive

Nonqualified “Excess” PlanSM

ADOPTION AGREEMENT

THIS AGREEMENT is the adoption by II - VI Incorporated (the “Employer”) of the Executive Nonqualified Excess Plan (“Plan”).

W I TN E S S E T H:

WHEREAS, the Employer desires to adopt the Plan as an unfunded, nonqualified deferred compensation plan; and

WHEREAS, the provisions of the Plan are intended to comply with the requirements of Section 409A of the Code and the regulations thereunder, and shall apply to amounts deferred after January 1, 2005, and to amounts deferred under the terms of any predecessor plan which are not earned and vested before January 1, 2005; and

WHEREAS, the Employer has been advised by Principal Life Insurance Company to obtain legal and tax advice from its professional advisors before adopting the Plan, and Principal Life Insurance Company disclaims all liability for the legal and tax consequences which result from the elections made by the Employer in this Adoption Agreement;

NOW, THEREFORE, the Employer hereby adopts the Plan in accordance with the terms and conditions set forth in this Adoption Agreement:

ARTICLE I

Terms used in this Adoption Agreement shall have the same meaning as in the Plan, unless some other meaning is expressly herein set forth. The Employer hereby represents and warrants that the Plan has been adopted by the Employer upon proper authorization and the Employer hereby elects to adopt the Plan for the benefit of its Participants as referred to in the Plan. By the execution of this Adoption Agreement, the Employer hereby agrees to be bound by the terms of the Plan.

 

 

 

 

DD 2320-1

 

 

ARTICLE II

The Employer hereby makes the following designations or elections for the purpose of the Plan:

2.6     Committee: The duties of the Committee set forth in the Plan shall be satisfied by:

 

	
 
	
___
	
 
	
(a)
	
 
	
The administrative committee of at least three individuals appointed by the Board to serve at the pleasure of the Board. 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
Other (specify):                                                                .

2.7     Compensation: The “Compensation” of a Participant shall mean all of a Participant’s:

 

	
 
	
XX
	
 
	
(a)
	
 
	
Base salary.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
Service Bonus.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(c)
	
 
	
Performance-Based Compensation earned in a period of 12 months or more.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(d)
	
 
	
Commissions.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(e)
	
 
	
Compensation received as an Independent Contractor reportable on Form 1099.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(f)
	
 
	
Other: Performance Shares and Restricted Stock.

2.8     Crediting Date: The Deferred Compensation Account of a Participant shall be credited with the amount of any Participant Deferrals to such account at the time designated below:

 

	
 
	
___
	
 
	
(a)
	
 
	
The last business day of each Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
The last business day of each calendar quarter during the Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
The last business day of each month during the Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(d)
	
 
	
The last business day of each payroll period during the Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(e)
	
 
	
Each pay day as reported by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(f)
	
 
	
Any business day on which Participant Deferrals are received by the Provider.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(g)
	
 
	
Other:                                                                             .

DD 2320-1

2

 

2.12   Effective Date:

 

	
 
	
___
	
 
	
(a)
	
 
	
This is a newly-established Plan, and the Effective Date of the Plan is

                     .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
This is an amendment and restatement of a plan named II-VI Incorporated Deferred Compensation Plan with an effective date of June 30, 1996 and amended October 1, 2002. The Effective Date of this amended and restated Plan is January 1, 2005. This is amendment number 3.

2.18   Normal Retirement Age: The Normal Retirement Age of a Participant shall be:

 

	
 
	
___
	
 
	
(a)
	
 
	
Age      .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
The later of age 65 or the 5th anniversary of the participation commencement date. The participation commencement date is the first day of the first Plan Year in which the Participant commenced participation in the Plan.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
Other:                                                         .

2.22   Participating Employer(s): As of the Effective Date, the following Participating Employer(s) are parties to the Plan:

 

	
Name of Employer
	
 
	
Address
	
 
	
Telephone No.
	
 
	
EIN

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
II-V I incorporated
	
 
	
375 Saxonburg Blvd.
	
 
	
(724) 352-4455
	
 
	
25-1214948

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Saxonburg, PA 16056
	
 
	
 
	
 
	
 

2.24   Plan: The name of the Plan as applied to the Employer is

II-VI Incorporated Deferred Compensation Plan.

2.25   Plan Administrator: The Plan Administrator shall be:

 

	
 
	
___
	
 
	
(a)
	
 
	
Committee.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
Other:                                                          .

2.27    Plan Year: The Plan Year shall end each year on the last day of the month of June.

 

2.35    Trust:

 

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(a)
	
The Employer does desire to establish a “rabbi” trust for the purpose of setting aside assets of the Employer contributed thereto for the payment of benefits under the Plan.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
The Employer does not desire to establish a “rabbi” trust for the purpose of setting aside assets of the Employer contributed thereto for the payment of benefits under the Plan.

	
 
	
 
	
 
	
 
	
 

DD 2320-1

3

 

	
 
	
___
	
 
	
(c)
	
The Employer desires to establish a “rabbi” trust for the purpose of setting aside assets of the Employer contributed thereto for the payment of benefits under the Plan upon the occurrence of a Change in Control.

4.1      Participant Deferral Credits: Subject to the limitations in Section 4.1 of the Plan, a Participant may elect to have his Compensation (as selected in Section 2.7 of this Adoption Agreement) deferred within the annual limits below by the following percentage or amount as designated in writing to the Committee:

 

	
 
	
XX
	
 
	
(a)
	
 
	
Base salary:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
           maximum deferral: $
	
 
	
or
	
 
	
%

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
Service Bonus:
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
           maximum deferral: $
	
 
	
or
	
 
	
%

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(c)
	
 
	
Performance-Based Compensation:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
           maximum deferral: $
	
 
	
or
	
 
	
%

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(d)
	
 
	
Other: Performance Shares and Restricted Stock.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
           maximum deferral: $
	
 
	
or
	
 
	
%

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(e)
	
 
	
Participant deferrals not allowed.

4.2      Employer Credits: The Employer will make Employer Credits in the following manner:

 

	
 
	
XX
	
 
	
(a)
	
 
	
Employer Discretionary Credits: The Employer may make discretionary credits to the 

	
 
	
 
	
 
	
Deferred Compensation Account of each Participant in an amount determined as follows:

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(i)
	
An amount determined each Plan Year by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(ii)
	
Other:
	
 
	
.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
Employer Profit Sharing Credits: The Employer may make profit sharing credits to the 

	
 
	
 
	
 
	
Deferred Compensation Account of each Active Participant in an amount determined as follows:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(i)
	
An amount determined each Plan Year by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(ii)
	
Other:
	
 
	
.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(c)
	
 
	
Other:
	
 
	
 
	
.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(d)
	
 
	
Employer Credits not allowed.

	
 
	
 
	
 
	
 
	
 
	
 

DD 2320-1

4

 

5.3      Death of a Participant: If the Participant dies while in Service, the Employer shall pay a benefit to the Beneficiary in an amount equal to the vested balance in the Deferred Compensation Account of the Participant determined as of the date payments to the Beneficiary commence, plus:

 

	
 
	
___
	
 
	
(a)
	
 
	
An amount to be determined by the Committee.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
Other:
	
 
	
 
	
.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(c)
	
 
	
No additional benefits.

 

5.4      In-Service Distributions: In-service accounts are permitted under the Plan:

 

	
 
	
XX
	
 
	
(a)
	
 
	
Yes, with respect to:

	
 
	
 
	
 
	
 
	
 
	
XX
	
Participant Deferral Credits only.

	
 
	
 
	
 
	
 
	
 
	
___
	
Employer Credits only.

	
 
	
 
	
 
	
 
	
 
	
___
	
Participant Deferral and Employer Credits.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
In-service distributions may be made in the following manner:

	
 
	
 
	
 
	
 
	
 
	
XX
	
Single lump sum payment.

	
 
	
 
	
 
	
 
	
 
	
XX
	
Annual installment payments over 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
If applicable, amounts not vested at the specified time of distribution will be:

	
 
	
 
	
 
	
 
	
 
	
___
	
Forfeited

	
 
	
 
	
 
	
 
	
 
	
___
	
Distributed annually when vested

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
No in-service distributions permitted.

 

5.5      Education Distributions: Education accounts are permitted under the Plan:

 

	
 
	
XX
	
 
	
(a)
	
 
	
Yes, with respect to:

	
 
	
 
	
 
	
 
	
 
	
XX
	
Participant Deferral Credits only.

	
 
	
 
	
 
	
 
	
 
	
___
	
Employer Credits only.

	
 
	
 
	
 
	
 
	
 
	
___
	
Participant Deferral and Employer Credits.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Education distributions may be made in the following manner:

	
 
	
 
	
 
	
 
	
 
	
XX
	
Single lump sum payment.

	
 
	
 
	
 
	
 
	
 
	
XX
	
Annual installment payments over no more than 4 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
If applicable, amounts not vested at the specified time of distribution will be:

	
 
	
 
	
 
	
 
	
 
	
___
	
Forfeited

	
 
	
 
	
 
	
 
	
 
	
___
	
Distributed annually when vested

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
No education distributions permitted.

 

5.6      Change in Control: Participant may elect to receive distributions under the Plan upon a Change in Control:

 

	
 
	
XX
	
 
	
(a)
	
 
	
Yes, Participants may elect upon initial enrollment to have accounts distributed upon a Change in Control.

	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
Participants may not elect to have accounts distributed upon a Change in Control.

DD 2320-1

5

 

6.1       Payment Options: Any benefit payable under the Plan upon a Qualifying Distribution Event may be made to the Participant or his Beneficiary (as applicable) in any of the following payment forms, as selected by the Participant in the Participant Deferral Agreement:

 

	
 
	
1.
	
 
	
Separation from Service other than Retirement (Retirement is defined by the Employer)

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(a)
	
A lump sum in cash as soon as practicable following the date of the Qualifying Distribution Event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(b)
	
Approximately equal annual installments over a term certain as elected by the Participant upon his entry into the Plan of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(c)
	
Other:
	
                                                                                                                         .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
2.
	
 
	
Separation from Service due to Retirement

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(a)
	
A lump sum in cash as soon as practicable following the date of the Qualifying Distribution Event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(b)
	
Approximately equal annual installments over a term certain as elected by the Participant upon his entry into the Plan of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(c)
	
Other:
	
                                                                                                                         .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
3.
	
 
	
Death

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(a)
	
A lump sum in cash upon the date of the Qualifying Distribution Event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(b)
	
Approximately equal annual installments over a term certain as elected by the Participant upon his entry into the Plan of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(c)
	
Other:
	
                                                                                                                         .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
4.
	
 
	
Disability

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(a)
	
A lump sum in cash upon the date of the Qualifying Distribution Event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(b)
	
Approximately equal annual installments over a term certain as elected by the Participant upon his entry into the Plan of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(c)
	
Other:
	
                                                                                                                         .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

DD 2320-1

6

 

	
 
	
5.
	
 
	
Change in Control

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
(a)
	
A lump sum in cash upon the date of the Qualifying Distribution Event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(b)
	
Approximately equal annual installments over a term certain as elected by the Participant upon his entry into the Plan not to exceed          years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(c)
	
Other:
	
                                                                                                                         .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
___
	
 
	
(d)
	
Not applicable.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

6.2       De Minimis Amounts. Notwithstanding any payment election made by the Participant, the vested balance in the Deferred Compensation Account of the Participant will be distributed in a single lump sum payment if the payment accompanies the termination of the Participant’s entire interest in the Plan and the amount of such payment does not exceed $10,000.

7.      Vesting: An Active Participant shall be fully vested in the Employer Credits made to the Deferred Compensation Account upon the first to occur of the following events:

 

	
 
	
XX
	
 
	
(a)
	
 
	
Normal Retirement Age.

	
 
	
XX
	
 
	
(b)
	
 
	
Death.

	
 
	
XX
	
 
	
(c)
	
 
	
Disability.

	
 
	
XX
	
 
	
(d)
	
 
	
Change in Control.

	
 
	
___
	
 
	
(e)
	
 
	
Other:                                                                                .

	
 
	
XX
	
 
	
(f)
	
 
	
Satisfaction of the vesting requirement specified below:

 

	
 
	
XX
	
Employer Discretionary Credits:

	
 
	
 
	
 

	
 
	
 
	
XX
	
 
	
(i)
	
 
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
(ii)
	
 
	
100% vesting after      Years of Service.

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
(iii)
	
 
	
100% vesting at age     .

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
(iv)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Less than
	
1
	
 
	
     %
	
 

	
 
	
 
	
 
	
1
	
 
	
     %
	
 

	
 
	
 
	
 
	
2
	
 
	
     %
	
 

	
 
	
 
	
 
	
3
	
 
	
     %
	
 

	
 
	
 
	
 
	
4
	
 
	
     %
	
 

	
 
	
 
	
 
	
5
	
 
	
     %
	
 

	
 
	
 
	
 
	
6
	
 
	
     %
	
 

	
 
	
 
	
 
	
7
	
 
	
     %
	
 

	
 
	
 
	
 
	
8
	
 
	
     %
	
 

	
 
	
 
	
 
	
9
	
 
	
     %
	
 

	
 
	
 
	
 
	
10 or more
	
 
	
     %
	
 

DD 2320-1

7

 

 

	
 
	
 
	
For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

	
 
	
 
	
 

	
 
	
 
	
___
	
(1)
	
 
	
First Day of Service.

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
(2)
	
 
	
Effective Date of Plan Participation.

	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(3)
	
 
	
Each Crediting Date. Under this option (3), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary Credit is made to his or her Deferred Compensation Account. Notwithstanding the vesting schedule elected above, all Employer Discretionary Credits to the Deferred Compensation Account shall be 100% vested upon the following event(s):                             .

 

	
 
	
___
	
Employer Profit Sharing Credits:

	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(i)
	
 
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
(ii)
	
 
	
100% vesting after      Years of Service.

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
(iii)
	
 
	
100% vesting at age     .

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
(iv)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Less than
	
1
	
 
	
     %
	
 

	
 
	
 
	
 
	
1
	
 
	
     %
	
 

	
 
	
 
	
 
	
2
	
 
	
     %
	
 

	
 
	
 
	
 
	
3
	
 
	
     %
	
 

	
 
	
 
	
 
	
4
	
 
	
     %
	
 

	
 
	
 
	
 
	
5
	
 
	
     %
	
 

	
 
	
 
	
 
	
6
	
 
	
     %
	
 

	
 
	
 
	
 
	
7
	
 
	
     %
	
 

	
 
	
 
	
 
	
8
	
 
	
     %
	
 

	
 
	
 
	
 
	
9
	
 
	
     %
	
 

	
 
	
 
	
 
	
10 or more
	
 
	
     %
	
 

 

	
 
	
 
	
For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(1)
	
 
	
First Day of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(2)
	
 
	
Effective Date of Plan Participation.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(3)
	
 
	
Each Crediting Date. Under this option (3), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary Credit is made to his or her Deferred Compensation Account. Notwithstanding the vesting schedule elected above, all Employer Discretionary Credits to the Deferred Compensation Account shall be 100% vested upon the following event(s):                             .

 

DD 2320-1

8

 

	
 
	
___
	
Other Employer Credits:

	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(i)
	
 
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(ii)
	
 
	
100% vesting after      Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(iii)
	
 
	
100% vesting at age     .

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(iv)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Less than
	
1
	
 
	
     %
	
 

	
 
	
 
	
 
	
1
	
 
	
     %
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
 
	
     %
	
 

	
 
	
 
	
3
	
 
	
     %
	
 

	
 
	
 
	
4
	
 
	
     %
	
 

	
 
	
 
	
5
	
 
	
     %
	
 

	
 
	
 
	
6
	
 
	
     %
	
 

	
 
	
 
	
7
	
 
	
     %
	
 

	
 
	
 
	
8
	
 
	
     %
	
 

	
 
	
 
	
9
	
 
	
     %
	
 

	
 
	
 
	
10 or more
	
 
	
     %
	
 

 

	
 
	
 
	
For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(1)
	
 
	
First Day of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(2)
	
 
	
Effective Date of Plan Participation.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
___
	
 
	
(3)
	
 
	
Each Crediting Date. Under this option (3), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary Credit is made to his or her Deferred Compensation Account. Notwithstanding the vesting schedule elected above, all Employer Discretionary Credits to the Deferred Compensation Account shall be 100% vested upon the following event(s):                            .

14.       Amendment and Termination of Plan: Notwithstanding any provision in this Adoption Agreement or the Plan to the contrary, Section 8.2 of the Plan shall be amended to read as provided in attached Exhibit A.

         There are no amendments to the Plan.

17.9      Construction: The provisions of the Plan and Trust (if any) shall be construed and enforced according to the laws of the State of Pennsylvania, except to the extent that such laws are superseded by ERISA and the applicable provisions of the Code.

DD 2320-1

9

 

IN WITNESS WHEREOF, this Agreement has been executed as of the day and year first above stated. 

 

				
	
 

	
II-VI, Incorporated

	
Name of Employer

	
 

	
By:
	
 /s/ Francis J. Kramer

	
Authorized person
	
Francis J. Kramer

	
Date:
	
June 01, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE: Execution of this Adoption Agreement creates a legal liability of the Employer with significant tax consequences to the Employer and Participants. The Employer should obtain legal and tax advice from its professional advisors before adopting the Plan. Principal Life Insurance Company disclaims all liability for the legal and tax consequences which result from the elections made by the Employer in this Adoption Agreement.

 

 

 

DD 2320-1

10

 

EXHIBIT A

ADDENDUM TO THE II-VI, INCORPORATED DEFERRED COMPENSATION PLAN

A. Section 8.2 Deemed Investments shall be amended by adding the following language after the current final sentence.

    The Committee is making available to the Participant an investment fund that is entirely invested in Employer stock (the “Stock Investment Fund”). Amounts credited to that account may be adjusted as described in Section 8.3.

    However, notwithstanding any language in the plan to the contrary:

 

A) The participant may not reallocate the balance in the Stock Investment Fund to any other investment fund that is made available; and

 

B) The Participant will receive any Qualifying Event distribution from the Stock Investment Fund account in shares of Employer Stock with partial shares redeemed in cash calculated as of the appropriate valuation date.

    This amendment is effective June 1, 2007 and applies to all current and future balances of the Stock Investment Fund as well as credits to the fund and distributions there from.

 

 

 

 

CHARLOTTE #238471 v 7   11

 

NOTE: Execution of this Adoption Agreement creates a legal liability of the Employer with significant tax consequences to the Employer and Participants. The Employer should obtain legal and tax advice from its professional advisors before adopting the Plan. Principal Life Insurance Company disclaims all liability for the legal and tax consequences which result from the elections made by the Employer in this Adoption Agreement.

 

	
Principal Life Insurance Company, Raleigh, NC 27612

	
A member of the Principal Financial Group®

THE EXECUTIVE NONQUALIFIED “EXCESS” PLAN

ADOPTION AGREEMENT

THIS AGREEMENT is the adoption by II-VI Incorporated (the “Company”) of the Executive Nonqualified Excess Plan (“Plan”).

W I T N E S S E T H:

WHEREAS, the Company desires to adopt the Plan as an unfunded, nonqualified deferred compensation plan; and

WHEREAS, the provisions of the Plan are intended to comply with the requirements of Section 409A of the Code and the regulations thereunder and shall apply to amounts subject to section 409A; and

WHEREAS, the Company has been advised by Principal Life Insurance Company to obtain legal and tax advice from its professional advisors before adopting the Plan,

NOW, THEREFORE, the Company hereby adopts the Plan in accordance with the terms and conditions set forth in this Adoption Agreement:

ARTICLE I

Terms used in this Adoption Agreement shall have the same meaning as in the Plan, unless some other meaning is expressly herein set forth. The Employer hereby represents and warrants that the Plan has been adopted by the Employer upon proper authorization and the Employer hereby elects to adopt the Plan for the benefit of its Participants as referred to in the Plan. By the execution of this Adoption Agreement, the Employer hereby agrees to be bound by the terms of the Plan.

ARTICLE II

The Employer hereby makes the following designations or elections for the purpose of the Plan:

2.6    Committee:The duties of the Committee set forth in the Plan shall be satisfied by:

 

	
 
	
XX
	
(a)
	
 
	
Company

	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(b)
	
 
	
The administrative committee  appointed  by the Board to serve at the pleasure of the Board.

	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(c)
	
 
	
Board.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(d)
	
 
	
Other (specify): 
	
                                                                .
	
 

 

 

DD2320-4

2

 

2.8    Compensation:The “Compensation” of a Participant shall mean all of a Participant’s:

 

					
	
 
	
XX
	
(a)
	
 
	
Base salary.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(b)
	
 
	
Service Bonus.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(c)
	
 
	
Performance-Based Compensation  earned in a period of 12 months or more.

	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(d)
	
 
	
Commissions.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(e)
	
 
	
Compensation received as an Independent Contractor reportable on Form l099.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(f)
	
 
	
Other: Performance Shares  and Restricted Stock

 

2.9    Crediting Date: The Deferred Compensation Account of a Participant shall be credited with the amount of any Participant Deferral to such account at the time designated below:

 

	
 
	
3⁄4
	
(a)
	
 
	
The last business day of each Plan Year.

	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(b)
	
 
	
The last business day of each calendar quarter during the Plan Year. 

	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(c)
	
 
	
The last business day of each month during the Plan Year.

	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(d)
	
 
	
The last business day of each payroll period during the Plan Year.

	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(e)
	
 
	
Each pay day as reported by the Employer.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(f)
	
 
	
Any business day on which Participant Deferrals are received by the administrative recordkeeper.

	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(g)
	
 
	
Other:
	
                                             .

2.13   Effective Date:

 

	
 
	
3⁄4
	
(a)
	
 
	
This is a newly-established Plan, and the Effective Date of the Plan is

                                  .

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(b)
	
 
	
This is an amendment and restatement of a plan named II-VI Incorporated Deferred Compensation Plan  with an effective date of June 30, 1996, and amended October 1, 2002 The Effective Date of this amended and restated Plan is January 1, 2005. This is amendment number 4.

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
3⁄4
	
(i)
	
All amounts in Deferred Compensation Accounts shall be subject to the provisions of this amended and restated Plan.

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
XX
	
(ii)
	
Any Grandfathered Amounts shall be subject to the Plan rules in effect on October 3, 2004.

 

 

DD2320-4

3

 

2.20   Normal Retirement Age: The Normal Retirement Age of a Participant shall be:

 

							
	
 
	
3⁄4
	
(a)
	
 
	
Age      .

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(b)
	
 
	
The later of age 65 or the 5th anniversary of the participation commencement date. The participation commencement date is the first day of the first Plan Year in which the Participant commenced participation in the Plan.

	
 
	
 
	
 
	
 
	
 

	
 
	
3⁄4
	
(c)
	
 
	
Other:
	
.
	
 

 

2.23   Participating Employer(s): As of the Effective Date, the following Participating Employer(s) are parties to the Plan:

 

								
	
 
	
Name of Employer
	
 
	
Address
	
 
	
Telephone No.
	
 
	
EIN

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
II-VI Incorporated
	
 
	
375 Saxonburg Boulevard
	
 
	
(724) 352-4455
	
 
	
25-1214948

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Saxonburg, PA 16056
	
 
	
 
	
 
	
 

2.26   Plan: The name of the Plan is

II-VI  Incorporated Deferred Compensation Plan.

2.28   Plan  Year:The Plan Year shall end each year on the last day of the month of June.

2.30   Seniority Date: The date on which a Participant has: (See Exhibit A) 

 

					
	
 
	
___
	
(a)
	
 
	
Attained age      .

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(b)
	
 
	
Completed      Years of Service from First Date of Service.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(c)
	
 
	
Attained age    and completed    Years of Service from First Date of Service.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(d)
	
 
	
Attained an age as elected by the Participant.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(e)
	
 
	
Not applicable-distribution elections for Separation  from Service  are not based on Seniority  Date

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

 

 

DD2320-4

4

 

4.1        Participant Deferral Credits: Subject to the limitations in Section 4.1 of the Plan, a Participant may elect to have his Compensation (as selected in Section 2.8 of this Adoption Agreement) deferred within the annual limits below by the following percentage or amount as designated in writing to the Committee:

 

							
	
 
	
XX
	
 
	
(a)
	
 
	
Base salary:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
minimum deferral:                     %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
maximum deferral:  $                   or                   %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
Service Bonus:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
minimum deferral:                     %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
maximum deferral:  $                   or                   %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(c)
	
 
	
Performance-Based Compensation:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
minimum deferral:                     %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
maximum deferral:  $                   or                   %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(d)
	
 
	
Commissions:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
minimum deferral:                     %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
maximum deferral:  $                   or                   %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(e)
	
 
	
Form 1099 Compensation:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
minimum deferral:                     %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
maximum deferral:  $                   or                   %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(f)
	
 
	
Other: Performance Shares and  Restricted Stock

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
minimum deferral:                     %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
maximum deferral:  $                   or                   %

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(g)
	
 
	
Participant deferrals not allowed.

 

 

DD2320-4

5

 

4.2        Employer Credits: Employer Credits will be made in the following manner:

 

										
	
 
	
XX
	
 
	
(a)
	
 
	
Employer  Discretionary Credits: The Employer may make discretionary credits to the Deferred Compensation  Account of each Active Participant  in an amount determined as follows:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
XX
	
 
	
(i)
	
 
	
An amount determined each Plan Year by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(ii)
	
 
	
Other:                                                                                 .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
Other Employer Credits: The Employer may make other credits to the Deferred Compensation Account of each Active Participant in an amount determined as follows:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(i)
	
 
	
An amount determined each Plan Year by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(ii)
	
 
	
Other:                                                                                 .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
(c)
	
 
	
Employer Credits not allowed.

 

5.2        Disability of a Participant:

 

						
	
 
	
XX
	
 
	
(a)
	
 
	
A Participant’s becoming Disabled shall be a Qualifying Distribution Event and the Deferred Compensation Account shall be paid by the Employer as provided in Section 7.1.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
A Participant becoming Disabled shall not be a Qualifying Distribution Event.

5.3        Death of a Participant: If the Participant dies while in Service, the Employer shall pay a benefit to the Beneficiary in an amount equal to the vested balance in the Deferred Compensation Account of the Participant determined as of the date payments to the Beneficiary commence, plus:

 

						
	
 
	
___
	
 
	
(a)
	
 
	
An amount to be determined by the Committee.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
Other:                                                                                 .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(c)
	
 
	
No additional benefits.

 

DD2320-4

6

 

5.4        In-Service or Education Distributions: In-Service and Education Accounts are permitted under the Plan:

 

								
	
 
	
XX
	
 
	
(a)
	
 
	
In-Service Accounts are allowed with respect to:

	
 
	
 
	
 
	
 
	
 
	
XX
	
 
	
Participant Deferral Credits only.

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
Employer Credits only.

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
Participant Deferral and Employer Credits.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
In-service distributions may be made in the following manner:

	
 
	
 
	
 
	
 
	
 
	
XX
	
 
	
Single lump sum payment.

	
 
	
 
	
 
	
 
	
 
	
XX
	
 
	
Annual installments over a term of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Education Accounts are allowed with respect to:

	
 
	
 
	
 
	
 
	
 
	
XX
	
 
	
Participant Deferral Credits only.

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
Employer Credits only.

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
Participant Deferral and Employer Credits.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Education Accounts distributions may be made in the following manner:

	
 
	
 
	
 
	
 
	
 
	
XX
	
 
	
Single lump sum payment.

	
 
	
 
	
 
	
 
	
 
	
XX
	
 
	
Annual installments over a term certain not to exceed 4 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
Forfeited

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
Distributed at Separation from Service if vested at that time

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
No In-Service or Education Distributions permitted.

 

5.5        Change in Control Event:

 

						
	
 
	
XX
	
 
	
(a)
	
 
	
Participants may elect upon initial enrollment to have accounts distributed upon a Change in Control Event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
A Change in Control shall not be a Qualifying Distribution Event.

 

5.6        Unforeseeable Emergency Event:

 

						
	
 
	
XX
	
 
	
(a)
	
 
	
Participants may apply to have accounts distributed upon an Unforeseeable Emergency event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(b)
	
 
	
An Unforeseeable Emergency shall not be a Qualifying Distribution Event

 

 

DD2320-4

7

 

6.         Vesting: An Active Participant shall be fully vested in the Employer Credits made to the Employer Credits made to the Deferred Compensation Account upon the first to occur of the following events:

 

	
 
	
XX
	
 
	
(a)
	
 
	
Normal Retirement  Age.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(b)
	
 
	
Death.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(c)
	
 
	
Disability.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(d)
	
 
	
Change in Control Event

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
 
	
(e)
	
 
	
Other:                                                                                 .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
 
	
(f)
	
 
	
Satisfaction of the vesting requirement as specified below:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
 
	
Employer Discretionary Credits:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
XX
	
 
	
(i)
	
 
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(ii)
	
 
	
100% vesting after      Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(iii)
	
 
	
100% vesting at age     .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(iv)
	
 
	
Number of Years of Service
	
 
	
Vested

Percentage

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
8
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10 or more
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
For this purpose, Years of Service of a Participant  shall be calculated from the date designated below:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(1)
	
 
	
First Day of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(2)
	
 
	
Effective Date of Plan Participation.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(3)
	
 
	
Each Crediting Date. Under this option (3), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting  Date on which each Employer Discretionary Credit is made to his or her Deferred Compensation  Account.

 

DD2320-4

8

 

 

	
 
	
 
	
 
	
___
	
 
	
Other Employer Credits:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(i)
	
 
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(ii)
	
 
	
100% vesting after      Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(iii)
	
 
	
100% vesting at age     .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(iv)
	
 
	
Number of Years of Service
	
 
	
Vested

Percentage

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
8
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10 or more
	
     %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
For this purpose, Years of Service of a Participant  shall be calculated from the date designated below:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(1)
	
 
	
First Day of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(2)
	
 
	
Effective Date of Plan Participation.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
___
	
 
	
(3)
	
 
	
Each Crediting Date. Under this option (3), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting  Date on which each Employer Discretionary Credit is made to his or her Deferred Compensation  Account.

 

7.1         Payment Options: Any benefit payable under the Plan upon a permitted Qualifying Distribution Event may be made to the Participant or his Beneficiary (as applicable) in any of the following payment forms, as selected by the Participant in the Participation Agreement:

 

					
	
(a)
	
Separation from Service prior to Seniority Date, or Separation from Service if Seniority Date is Not Applicable

	
 

	
 
	
XX
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(iii)
	
 
	
Other:                                                                        .

	
 
	
 
	
 
	
 
	
 

	
(b)
	
Separation from Service on or After Seniority Date, If Applicable

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(i)
	
 
	
A lump sum.

 

DD2320-4

9

 

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
(c)
	
Separation from Service Upon a Change in Control Event

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
(d)
	
Death

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
(e)
	
Disability

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(iv)
	
 
	
Not applicable.

 

 

					
	
 
	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	
 
	
 

	
 
	
___
	
 
	
Forfeited

	
 
	
___
	
 
	
Distributed at Separation from Service if vested at that time

	
 
	
 
	
 

	
(f)
	
Change in Control  Event

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant not to exceed ___ years.

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(iv)
	
 
	
Not applicable.

	
 
	
 
	
 
	
 
	
 

 

DD2320-4

10

 

	
 
	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	
 
	
 

	
 
	
___
	
 
	
Forfeited

	
 
	
___
	
 
	
Distributed at Separation from Service if vested at that time

	
 
	
 
	
 
	
 

	
7.4      De Minimis Amounts.

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(a)
	
 
	
Notwithstanding any payment election made by the Participant, the vested balance in the Deferred Compensation Account of the Participant will be distributed in a single lump sum payment at the time designated under the Plan if at the time of a permitted Qualifying Distribution Event that is either a Separation from Service, death, Disability (if applicable) or Change in Control Event (if applicable) the vested balance does not exceed $ 10,000. In addition, the Employer  may distribute a Participant’s vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination  of the Participant’s entire interest in the Plan

	
 
	
 
	
 
	
 
	
 

	
 
	
___
	
(b)
	
 
	
There shall be no pre-determined de minimis amount under the Plan; however, the Employer may distribute a Participant’s vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination  of the Participant’s entire interest in the Plan.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 

	
10.1     Contractual Liability: Liability for payments  under the Plan shall be the responsibility of the:

	
 
	
 
	
 
	
 

	
 
	
XX
	
(a)
	
 
	
Company.

	
 
	
 
	
 
	
 

	
 
	
___
	
(b)
	
 
	
Employer or Participating Employer who employed the Participant when amounts were deferred.

	
 
	
 
	
 
	
 
	
 

	
14.       Amendment and Termination of Plan: Notwithstanding any provision in this Adoption Agreement or the Plan to the contrary, Sections 2.30 and 8.2 of the Plan shall be amended to read as provided in attached Exhibit A

	
 
	
___
	
 
	
There are no amendments to the Plan.

	
 
	
 

	
17.9      Construction: The provisions of the Plan shall be construed and enforced according to the laws of the State of Pennsylvania, except to the extent that such laws are superseded by ERISA and the applicable provisions of the Code.

 

DD2320-4

11

 

IN WITNESS WHEREOF, this Agreement has been executed as of the day and year stated below.

 

		
	
II-VI Incorporated

	
Name of Employer

	
 
	
 

	
By:
	
/s/ Craig A. Creaturo

	
Authorized Person Craig A. Creaturo

	
Date:
	
4-17-09

The Plan is adopted by the following Participating Employers:

 

		
	
 

	
Name of Employer

	
 
	
 

	
By:
	
 

	
Authorized Person

	
Date:
	
 

 

		
	
 

	
Name of Employer

	
 
	
 

	
By:
	
 

	
Authorized Person

	
Date:
	
 

 

		
	
 

	
Name of Employer

	
 
	
 

	
By:
	
 

	
Authorized Person

	
Date:
	
 

 

 

 

 

DD2320-4

12

 

EXHIBIT A

2.30 Seniority Date: The date on which a Participant has:

The later of age 65 or the 5th anniversary of the participation commencement date. The participation commencement date is the first day of the first Plan Year in which the Participant commenced participation in the Plan.

Section 8.2 Deemed Investments shall be amended by adding the following language after the current final sentence.

The Committee is making available to the Participant an investment fund that is entirely invested in Employer stock (the “Stock lnvestment Fund”). Amounts credited to that account may be adjusted as described in Section 8.3.

However, notwithstanding any language in the plan to the contrary:

	
A)
	
The participant may not reallocate the balance in the Stock Investment Fund to any other investment fund that is made available; and

	
B)
	
The Participant will receive any Qualifying Event distribution from the Stock Investment Fund account in shares of Employer Stock with partial shares redeemed in cash calculated as of the appropriate valuation date.

This amendment is effective June l, 2007 and applies to all current and future balances of the Stock Investment Fund as well as credits to the fund and distributions there from.

 

 

 

DD2320-4

13

 

NOTE: Execution of this Adoption Agreement creates a legal liability of the Employer with significant tax consequences to the Employer and Participants. The Employer should obtain legal and tax advice from its professional advisors before adopting the Plan. Principal Life Insurance Company disclaims all liability for the legal and tax consequences which result from the elections made by the Employer in this Adoption Agreement.

Principal Life Insurance Company, Raleigh, NC 27612

A member of the Principal Financial Group®

THE EXECUTIVE NONQUALIFIED “EXCESS” PLAN

ADOPTION AGREEMENT

THIS AGREEMENT is the adoption by II-VI Incorporated (the “Company”) of the Executive Nonqualified Excess Plan (“Plan”).

W I T N E S S E T H:

WHEREAS, the Company desires to adopt the Plan as an unfunded, nonqualified deferred compensation plan; and

WHEREAS, the provisions of the Plan are intended to comply with the requirements of Section 409A of the Code and the regulations thereunder and shall apply to amounts subject to section 409A; and

WHEREAS, the Company has been advised by Principal Life Insurance Company to obtain legal and tax advice from its professional advisors before adopting the Plan,

NOW, THEREFORE, the Company hereby adopts the Plan in accordance with the terms and conditions set forth in this Adoption Agreement:

ARTICLE I

Terms used in this Adoption Agreement shall have the same meaning as in the Plan, unless some other meaning is expressly herein set forth. The Employer hereby represents and warrants that the Plan has been adopted by the Employer upon proper authorization and the Employer hereby elects to adopt the Plan for the benefit of its Participants as referred to in the Plan. By the execution of this Adoption Agreement, the Employer hereby agrees to be bound by the terms of the Plan.

ARTICLE II

The Employer hereby makes the following designations or elections for the purpose of the Plan:

2.6     Committee: The duties of the Committee set forth in the Plan shall be satisfied by:

 

	
 
	
 X 
	
 
	
(a)
	
 
	
Company

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(b)
	
 
	
The administrative committee appointed by the Board to serve at the pleasure of the Board.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(c)
	
 
	
Board.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(d)
	
 
	
Other (specify):                                           .

 

 

 

 

DD2320-3

 

 

 

	
2.8     Compensation: The “Compensation” of a Participant shall mean all of a Participant’s:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(a)
	
 
	
Base salary.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(b)
	
 
	
Service Bonus.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(c)
	
 
	
Performance-Based Compensation earned in a period of 12 months or more.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(d)
	
 
	
Commissions.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(e)
	
 
	
Compensation received as an Independent Contractor reportable on Form 1099.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(f)
	
 
	
Other: Performance Shares and Restricted Stock.

 

	
2.9     Crediting Date: The Deferred Compensation Account of a Participant shall be credited with the amount of any Participant Deferral to such account at the time designated below:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(a)
	
 
	
The last business day of each Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(b)
	
 
	
The last business day of each calendar quarter during the Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(c)
	
 
	
The last business day of each month during the Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(d)
	
 
	
The last business day of each payroll period during the Plan Year.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(e)
	
 
	
Each pay day as reported by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(f)
	
 
	
Any business day on which Participant Deferrals are received by the Provider.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(g)
	
 
	
Other:

 

	
2.13   Effective Date:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(a)
	
 
	
This is a newly-established  Plan, and the Effective Date of the Plan is                                      .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(b)
	
 
	
This is an amendment  and restatement of a plan named II-VI Incorporated Deferred 

	
Compensation  Plan with an effective date of June 30, 1996 and amended October 1, 2002.  The Effective Date of this amended and restated Plan is November 1, 2010.  This is amendment number 5.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(i)
	
 
	
All amounts in Deferred Compensation  Accounts shall be subject to the provisions of this amended and restated Plan.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
(ii)
	
 
	
Any Grandfathered Amounts shall be subject to the Plan rules in effect on October 3, 2004.

DD2320-5

 

 

	
2.20   Normal Retirement Age: The Normal Retirement Age of a Participant shall be:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(a)
	
 
	
Age          .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(b)
	
 
	
The later of age 65 or the 5th anniversary of the participation commencement date. The participation commencement date is the first day of the first Plan Year in which  the Participant commenced participation in the Plan.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(c)
	
 
	
Other:.

	
 
	
 
	
 
	
 
	
 
	
 

	
2.23   Participating Employer(s):  As of the Effective Date, the following Participating Employer(s) are parties to the Plan:

 

	
 
	
Name of Employer
	
 
	
Address
	
 
	
Telephone No.
	
 
	
EIN

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
II-VI, Incorporated
	
 
	
375 Saxonburg Blvd.
	
 
	
(724) 352-4455 ext.
	
 
	
25-1214948

	
 
	
 
	
 
	
Saxonburg, PA 16056
	
 
	
 
	
 
	
 

 

	
2.26   Plan: The name of the Plan is II-VI Incorporated Deferred Compensation Plan.

	
 
	
 
	
 
	
 
	
 
	
 

	
2.28   Plan Year: The Plan Year shall end each year on the last day of the month of June.

	
 
	
 
	
 
	
 
	
 
	
 

	
2.30   Seniority Date: The date on which a Participant has:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(a)
	
 
	
Attained age       .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(b)
	
 
	
Completed         Years of Service from First Date of Service.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(c)
	
 
	
Attained age         and completed         Years of Service from First Date of Service.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(d)
	
 
	
Attained an age as elected by the Participant.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(e)
	
 
	
Not applicable ‒ distribution elections for Separation from Service are not based on Seniority Date

 

	
4.1     Participant Deferral Credits: Subject to the limitations in Section 4.1 of the Plan, a Participant may elect to have his Compensation (as selected in Section 2.8 of this Adoption Agreement) deferred within the annual limits below by the following percentage or amount as designated in writing to the Committee:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(a)
	
 
	
Base salary:

 

	
 
	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
            %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
            or 100%

 

	
 
	
 X 
	
 
	
(b)
	
 
	
Service Bonus:

 

	
 
	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
            %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
            or 100%

 

DD2320-5

 

	
 
	
 X 
	
 
	
(c)
	
 
	
Performance-Based  Compensation:

 

	
 
	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
            %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
            or 100%

 

	
 
	
 X 
	
 
	
(d)
	
 
	
Commissions:

 

	
 
	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
            %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
            or 100%

 

	
 
	
 X 
	
 
	
(e)
	
 
	
Form 1099 Compensation:

 

	
 
	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
            %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
            or 100%

 

	
 
	
 X 
	
 
	
(f)
	
 
	
Other:  Performance Shares and Restricted Stock

 

	
 
	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
            %

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
            or 100%

 

	
 
	
__
	
 
	
(g)
	
 
	
Participant deferrals not allowed.

 

	
4.2     Employer Credits: Employer Credits will be made in the following manner:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(a)
	
 
	
Employer Discretionary Credits: The Employer may make discretionary credits to the Deferred Compensation  Account of each Active Participant  in an amount determined as follows:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
(i)
	
 
	
An amount determined each Plan Year by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(ii)
	
 
	
Other:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(b)
	
 
	
Other Employer Credits: The Employer may make other credits to the Deferred Compensation Account of each Active Participant  in an amount determined as follows:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(i)
	
 
	
An amount determined each Plan Year by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(ii)
	
 
	
Other:                                  .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(c)
	
 
	
Employer Credits not allowed.

 

	
5.2     Disability of a Participant:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(a)
	
 
	
Participants may elect upon initial enrollment to have accounts distributed upon becoming Disabled.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(b)
	
 
	
Participants may not elect to have accounts distributed upon becoming Disabled.

DD2320-5

 

 

	
5.3     Death of a Participant: If the Participant dies while in Service, the Employer shall pay a benefit to the Beneficiary in an amount equal to the vested balance in the Deferred Compensation Account of the Participant determined as of the date payments to the Beneficiary  commence,  plus:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(a)
	
 
	
An amount to be determined by the Committee.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(b)
	
 
	
Other:                                  .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(c)
	
 
	
No additional benefits.

 

	
5.4     In-Service or Education Distributions: In-Service and Education Accounts are permitted under the Plan:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(a)
	
 
	
In-Service Accounts are allowed with respect to:

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
Participant Deferral Credits only.

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
Employer Credits only.

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
Participant Deferral and Employer Credits.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
In-service distributions may be made in the following manner:

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
Single lump sum payment.

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
Annual installments over a term certain not to exceed 2, 5, or 10 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Education  Accounts are allowed with respect to:

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
Participant Deferral Credits only.

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
Employer Credits only.

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
Participant Deferral and Employer Credits.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Education  Accounts distributions may be made in the following manner:

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
Single lump sum payment.

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
Annual installments over a term certain not to exceed 4 years.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
Forfeited.

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
Distributed at Separation from Service if vested at that time.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(b)
	
 
	
No In-Service or Education Distributions permitted.

 

	
5.5     Change in Control Event:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(a)
	
 
	
Participants may elect upon initial enrollment to have accounts distributed upon a Change in Control Event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(b)
	
 
	
Participants may not elect to have accounts distributed upon a Change in Control Event.

 

	
5.6     Unforeseeable Emergency Event:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(a)
	
 
	
Participants may apply to have accounts distributed upon an Unforeseeable Emergency event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(b)
	
 
	
Participants may not apply to have accounts distributed upon a Unforeseeable Emergency event.

 

DD2320-5

 

	
6.       Vesting: An Active Participant shall be fully vested in the Employer Credits made to the Deferred Compensation  Account upon the first to occur of the following events:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(a)
	
 
	
Normal Retirement Age.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(b)
	
 
	
Death.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(c)
	
 
	
Disability.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(d)
	
 
	
Change in Control Event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
(e)
	
 
	
Other:                                     .

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
 
	
(f)
	
 
	
Satisfaction of the vesting requirement as specified below:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 X 
	
 
	
Employer Discretionary Credits:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
(i)
	
 
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(ii)
	
 
	
100% vesting after              Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(iii)
	
 
	
100% vesting at age             .

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(iv)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
8
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10 or more
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 X 
	
 
	
(1)
	
 
	
First Day of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(2)
	
 
	
Effective Date of Plan Participation.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(3)
	
 
	
Each Crediting Date. Under this option (3), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary  Credit is made to his or her Deferred Compensation  Account.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
 
	
Other Employer Credits:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(i)
	
 
	
Immediate 100% vesting.

DD2320-5

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(ii)
	
 
	
100% vesting after              Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(iii)
	
 
	
100% vesting at age             

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(iv)
	
 
	
Number of Years

of Service
	
 
	
Vested

Percentage
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
8
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
9
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
10 or more
	
       %
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(1)
	
 
	
First Day of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(2)
	
 
	
Effective Date of Plan Participation.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
__
	
 
	
(3)
	
 
	
Each Crediting Date. Under this option (3), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary  Credit is made to his or her Deferred Compensation  Account.

 

								
	
7.1         Payment Options: Any benefit payable under the Plan upon a permitted Qualifying Distribution Event may be made to the Participant or his Beneficiary (as applicable) in any of the following payment forms, as selected by the Participant in the Participation Agreement:

	
 
	
 
	
 

	
 
	
(a)
	
Separation from Service prior to Seniority Date, or Separation from Service if Seniority

	
 
	
Date is Not Applicable

	
 

	
 
	
 X 
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of either 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

DD2320-5

 

 

											
	
 
	
(b)
	
Separation from Service on or After Seniority Date, If Applicable

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of either 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
 
	
(c)
	
Separation from Service Upon a Change in Control Event

	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of either 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
 
	
(d)
	
Death

	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of either 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
 
	
(e)
	
Disability

	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant of either 2, 5 or 10 years.

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
 
	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	
 
	
 

	
 
	
__
	
 
	
Forfeited

	
 
	
__
	
 
	
Distributed at Separation from Service if vested at that time

	
 
	
 
	
 

	
 
	
(f)
	
Change in Control Event

	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(i)
	
 
	
A lump sum.

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(ii)
	
 
	
Annual installments over a term certain as elected by the Participant not to exceed ___ years.

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(iii)
	
 
	
Other:                                                                         .

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(iv)
	
 
	
Not applicable.

	
 
	
 
	
 
	
 
	
 

	
 
	
 

 

DD2320-5

 

 

									
	
 
	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	
 
	
 
	
 
	
 

	
 
	
__
	
 
	
Forfeited

	
 
	
__
	
 
	
Distributed at Separation from Service if vested at that time

	
 
	
 
	
 
	
 

	
7.4        De Minimis Amounts.

	
 
	
 
	
 
	
 
	
 

	
 
	
 X 
	
(a)
	
 
	
Notwithstanding any payment election made by the Participant, the vested balance in the Deferred Compensation Account of the Participant will be distributed in a single lump sum payment at the time designated under the Plan if at the time of a permitted Qualifying Distribution Event that is either a Separation from Service, death, Disability (if applicable) or Change in Control Event (if applicable) the vested balance does not exceed $ 10000. In addition, the Employer  may distribute a Participant’s vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination  of the Participant’s entire interest in the Plan

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
 
	
There shall be no pre-determined de minimis amount under the Plan; however, the Employer may distribute a Participant’s vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant’s  entire interest in the Plan.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 

	
10.1       Contractual Liability: Liability for payments  under the Plan shall be the responsibility of the:

	
 
	
 
	
 
	
 

	
 
	
 X 
	
(a)
	
 
	
Company.

	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
 
	
Employer or Participating Employer who employed the Participant when amounts were deferred.

	
 
	
 

	
14.         Amendment and Termination of Plan: Notwithstanding any provision in this Adoption Agreement or the Plan to the contrary, Section 2.30 and 8.2 of the Plan shall be amended to read as provided in attached Exhibit A.

	
 
	
 

	
 
	
__
	
 
	
There are no amendments to the Plan.

	
 
	
 

	
17.9       Construction: The provisions of the Plan shall be construed and enforced according to the laws of the State of Pennsylvania, except to the extent that such laws are superseded by ERISA and the applicable provisions of the Code.

IN WITNESS WHEREOF, this Agreement has been executed as of the day and year stated below.

 

		
	
II-VI, Incorporated

	
Name of Employer

	
 
	
 

	
By:
	
/s/ Craig A. Creaturo

	
Authorized Person Craig A. Creaturo

	
Date:
	
10-13-10

 

The Plan is adopted by the following Participating Employers:

 

		
	
Name of Employer

	
 
	
 

	
By:
	
/s/ David G. Wagner

	
Authorized Person David G. Wagner

	
Date:
	
10-13-10

DD2320-5

 

EXHIBIT A

2.30 Seniority Date:  The date on which a Participant has:

The later of age 65 or the 5th anniversary of the participant commencement date. The participant commencement date is the first day of the first Plan Year in which the Participant commenced participation in the Plan.

Section 8.2 Deemed Investments shall be amended by adding the following language after the current final sentence.

The Committee is making available to the Participant an investment fund that is entirely invested in Employer stock (the “Stock Investment Fund”). Amounts credited to that account may be adjusted as described in Section 8.3.

However, notwithstanding any language in the plan to the contrary:

	
A)
	
The participant will receive any Qualifying Event distribution from the Stock Investment Fund account in shares of Employer Stock with partial shares redeemed in cash calculated as of the appropriate valuation date.

	
B)
	
The Participant will receive any Qualifying Event distribution from the Stock Investment Fund account in shares of Employer Stock with partial shares redeemed in cash calculated as of the appropriate valuation date.

This amendment is effective Jun 1, 2007 and applies to all current and future balances of the Stock Investment Fund as well as credits to the fund and distributions there from.

 

DD2320-5

 

NOTE: Execution of this Adoption Agreement creates a legal liability of the Employer with significant tax consequences to the Employer and Participants. Principal Life Insurance Company disclaims all liability for the legal and tax consequences which result from the elections made by the Employer in this Adoption Agreement.

 

	
	
Principal Life Insurance Company, Raleigh, NC 27612

	
A member of the Principal Financial Group®

THE EXECUTIVE NONQUALIFIED "EXCESS" PLAN

ADOPTION AGREEMENT

THIS AGREEMENT is the adoption by II-VI Incorporated (the "Company") of the Executive Nonqualified Excess Plan ("Plan").

W I T N E S S E T H:

WHEREAS, the Company desires to adopt the Plan as an unfunded, nonqualified deferred compensation plan; and

WHEREAS, the provisions of the Plan are intended to comply with the requirements of Section 409A of the Code and the regulations thereunder and shall apply to amounts subject to section 409A; and

WHEREAS, the Company has been advised by Principal Life Insurance Company to obtain legal and tax advice from its professional advisors before adopting the Plan,

NOW, THEREFORE, the Company hereby adopts the Plan in accordance with the terms and conditions set forth in this Adoption Agreement:

ARTICLE I

Terms used in this Adoption Agreement shall have the same meaning as in the Plan, unless some other meaning is expressly herein set forth. The Employer hereby represents and warrants that the Plan has been adopted by the Employer upon proper authorization and the Employer hereby elects to adopt the Plan for the benefit of its Participants as referred to in the Plan. By the execution of this Adoption Agreement, the Employer hereby agrees to be bound by the terms of the Plan.

ARTICLE II

The Employer hereby makes the following designations or elections for the purpose of the Plan:

 

2.6Committee: The duties of the Committee set forth in the Plan shall be satisfied by:

 

	
 
	
XX
	
(a)
	
Company

	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
The administrative committee appointed by the Board to serve at the pleasure of the Board.

	
 
	
 
	
 
	
 

	
 
	
__
	
(c)
	
Board.

	
 
	
 
	
 
	
 

	
 
	
__
	
(d)
	
Other (specify):
	
 
	
.

 

 

DD2320-5

 

2.8Compensation: The "Compensation" of a Participant shall mean all of a Participant's:

 

	
 
	
XX
	
(a)
	
Base salary.

	
 
	
 
	
 
	
 

	
 
	
XX
	
(b)
	
Service Bonus.

	
 
	
 
	
 
	
 

	
 
	
XX
	
(c)
	
Performance-Based Compensation earned in a period of 12 months or more.

	
 
	
 
	
 
	
 

	
 
	
__
	
(d)
	
Commissions.

	
 
	
 
	
 
	
 

	
 
	
XX
	
(e)
	
Compensation received as an Independent Contractor reportable on Form 1099.

	
 
	
 
	
 
	
 

	
 
	
XX
	
(f)
	
Other: Performance Shares and Restricted Stock.

 

2.9Crediting Date: The Deferred Compensation Account of a Participant shall be credited as follows:

 

	
Participant Deferral Credits at the time designated below:

	
 
	
 
	
 
	
 

	
 
	
__
	
(a)
	
The last business day of each Plan Year.

	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
The last business day of each calendar quarter during the Plan Year.

	
 
	
 
	
 
	
 

	
 
	
__
	
(c)
	
The last business day of each month during the Plan Year.

	
 
	
 
	
 
	
 

	
 
	
__
	
(d)
	
The last business day of each payroll period during the Plan Year.

	
 
	
 
	
 
	
 

	
 
	
__
	
(e)
	
Each pay day as reported by the Employer.

	
 
	
 
	
 
	
 

	
 
	
XX
	
(f)
	
On any business day as specified by the Employer.

	
 
	
 
	
 
	
 

	
 
	
__
	
(g)
	
Other:
	
 
	
.

 

	
Employer Credits at the time designated below:

	
 
	
 
	
 
	
 

	
 
	
XX
	
(a)
	
On any business day as specified by the Employer.

	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
Other:
	
 
	
.

	
 
	
 
	
 
	
 

 

DD 2326-5

1

 

2.13Effective Date:

 

	
 
	
__
	
(a)
	
This is a newly-established Plan, and the Effective Date of the Plan is

	
 
	
 
	
 
	
 
	
 
	
.

	
 
	
XX
	
(b)
	
This is an amendment and restatement of a plan named II-VI Incorporated Deferred Compensation Plan with an effective date of June 30, 1996, amended on October 1, 2002, and previously amended and restated on November 1, 2010. The Effective Date of this amended and restated Plan is November 7, 2012. This is amendment number 6.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(i)
	
All amounts in Deferred Compensation Accounts shall be subject to the provisions of this amended and restated Plan.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
(ii)
	
Any Grandfathered Amounts shall be subject to the Plan rules in effect on October 3, 2004.

 

2.20Normal Retirement Age: The Normal Retirement Age of a Participant shall be:

 

	
 
	
__
	
(a)
	
Age __.

	
 
	
 
	
 
	
 

	
 
	
XX
	
(b)
	
The later of age 65 or the 5th anniversary of the participation commencement date. The participation commencement date is the first day of the first Plan Year in which the Participant commenced participation in the Plan.

	
 
	
 
	
 
	
 

	
 
	
__
	
(c)
	
Other:
	
 
	
.

 

2.23Participating Employer(s): As of the Effective Date, the following Participating Employer(s) are parties to the Plan:

 

	
Name of Employer
	
 
	
Address
	
 
	
Telephone No.
	
 
	
EIN

	
II-VI, Incorporated
	
 
	
375 Saxonburg Blvd.
	
 
	
(724) 352-4455
	
 
	
25-1214948

	
 
	
 
	
Saxonburg, PA 16056
	
 
	
 
	
 
	
 

 

2.26Plan: The name of the Plan is II-VI Incorporated Deferred Compensation Plan.

 

2.28Plan Year: The Plan Year shall end each year on the last day of the month of June.

 

2.30Seniority Date: The date on which a Participant has:

 

	
 
	
__
	
(a)
	
Attained age __.

	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
Completed __ Years of Service from First Date of Service.

	
 
	
 
	
 
	
 

	
 
	
__
	
(c)
	
Attained age __ and completed __ Years of Service from First Date of Service.

	
 
	
 
	
 
	
 

	
 
	
__
	
(d)
	
Attained an age as elected by the Participant.

	
 
	
 
	
 
	
 

	
 
	
__
	
(e)
	
Not applicable – distribution elections for Separation from Service are not based on Seniority Date

 

DD 2326-5

2

 

4.1Participant Deferral Credits: Subject to the limitations in Section 4.1 of the Plan, a Participant may elect to have his Compensation (as selected in Section 2.8 of this Adoption Agreement) deferred within the annual limits below by the following percentage or amount as designated in writing to the Committee:

 

	
 
	
XX
	
(a)
	
Base salary:

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
minimum deferral: 
	
 
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
 
	
 or
	
100
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(b)
	
Service Bonus:

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
 
	
 or
	
100
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(c)
	
Performance-Based Compensation:

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
 
	
 or
	
100
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(d)
	
Commissions:

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
 
	
 or
	
 
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(e)
	
Form 1099 Compensation:

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
 
	
 or
	
100
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(f)
	
Other: Performance Shares and Restricted Stock

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
minimum deferral:
	
 
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
maximum deferral:
	
$
	
 
	
 or
	
100
	
%

	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(g)
	
Participant deferrals not allowed.

 

DD 2326-5

3

 

4.2Employer Credits: Employer Credits will be made in the following manner:

 

	
 
	
XX
	
(a)
	
Employer Discretionary Credits: The Employer may make discretionary credits to the Deferred Compensation Account of each Active Participant in an amount determined as follows:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
(i)
	
An amount determined each Plan Year by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(ii)
	
Other:
	
 
	
.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
Other Employer Credits: The Employer may make other credits to the Deferred Compensation Account of each Active Participant in an amount determined as follows:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(i)
	
An amount determined each Plan Year by the Employer.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(ii)
	
Other:
	
 
	
.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(c)
	
Employer Credits not allowed.

 

5.2Disability of a Participant:

 

	
 
	
XX
	
(a)
	
A Participant's becoming Disabled shall be a Qualifying Distribution Event and the Deferred Compensation Account shall be paid by the Employer as provided in Section 7.1.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
A Participant becoming Disabled shall not be a Qualifying Distribution Event.

 

5.3Death of a Participant: If the Participant dies while in Service, the Employer shall pay a benefit to the Beneficiary in an amount equal to the vested balance in the Deferred Compensation Account of the Participant determined as of the date payments to the Beneficiary commence, plus:

 

	
 
	
__
	
(a)
	
An amount to be determined by the Committee.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
Other:
	
 
	
.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(c)
	
No additional benefits.

 

DD 2326-5

4

 

5.4In-Service or Education Distributions: In-Service and Education Accounts are permitted under the Plan:

 

	
 
	
XX
	
(a)
	
In-Service Accounts are allowed with respect to:
	
 

	
 
	
 
	
 
	
XX
	
Participant Deferral Credits only.

	
 
	
 
	
 
	
__
	
Employer Credits only.

	
 
	
 
	
 
	
__
	
Participant Deferral and Employer Credits.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
In-service distributions may be made in the following manner:

	
 
	
 
	
 
	
XX
	
Single lump sum payment.

	
 
	
 
	
 
	
XX
	
Annual installments over a term certain not to exceed  10  years.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Education Accounts are allowed with respect to:

	
 
	
 
	
 
	
XX
	
Participant Deferral Credits only.

	
 
	
 
	
 
	
__
	
Employer Credits only.

	
 
	
 
	
 
	
__
	
Participant Deferral and Employer Credits.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Education Accounts distributions may be made in the following manner:

	
 
	
 
	
 
	
XX
	
Single lump sum payment.

	
 
	
 
	
 
	
XX
	
Annual installments over a term certain not to exceed  5  years.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	
 
	
 
	
 
	
__
	
Forfeited

	
 
	
 
	
 
	
__
	
Distributed at Separation from Service if vested at that time

	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
No In-Service or Education Distributions permitted.

 

5.5Change in Control Event:

 

	
 
	
XX
	
(a)
	
Participants may elect upon initial enrollment to have accounts distributed upon a Change in Control Event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
A Change in Control shall not be a Qualifying Distribution Event.

 

5.6Unforeseeable Emergency Event:

 

	
 
	
XX
	
(a)
	
Participants may apply to have accounts distributed upon an Unforeseeable Emergency event.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(b)
	
An Unforeseeable Emergency shall not be a Qualifying Distribution Event

DD 2326-5

5

 

6.Vesting: An Active Participant shall be fully vested in the Employer Credits made to the Deferred Compensation Account upon the first to occur of the following events:

 

	
 
	
XX
	
(a)
	
Normal Retirement Age.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(b)
	
Death.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(c)
	
Disability.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(d)
	
Change in Control Event

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
__
	
(e)
	
Other:
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
XX
	
(f)
	
Satisfaction of the vesting requirement as specified below:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
XX
	
Employer Discretionary Credits:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
(i)
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(ii)
	
100% vesting after __ Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(iii)
	
100% vesting at age __.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(iv)
	
Number of Years of Service
	
 
	
Vested Percentage

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
8
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
9
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
10 or more
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
(1)
	
First Day of Service.
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(2)
	
Effective Date of Plan Participation.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(3)
	
Each Crediting Date. Under this option (3), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary Credit is made to his or her Deferred Compensation Account.

 

DD 2326-5

6

 

	
 
	
 
	
__
	
Other Employer Credits:

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(i)
	
Immediate 100% vesting.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(ii)
	
100% vesting after __ Years of Service.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(iii)
	
100% vesting at age __.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(iv)
	
Number of Years of Service
	
Vested Percentage

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
Less than
	
1
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
1
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
2
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
3
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
4
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
5
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
6
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
7
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
8
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
9
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
10 or more
	
 
	
__%

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
For this purpose, Years of Service of a Participant shall be calculated from the date designated below:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(1)
	
First Day of Service.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(2)
	
Effective Date of Plan Participation.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(3)
	
Each Crediting Date. Under this option (3), each Employer Credit shall vest based on the Years of Service of a Participant from the Crediting Date on which each Employer Discretionary Credit is made to his or her Deferred Compensation Account.

 

7.1Payment Options: Any benefit payable under the Plan upon a permitted Qualifying Distribution Event may be made to the Participant or his Beneficiary (as applicable) in any of the following payment forms, as selected by the Participant in the Participation Agreement:

 

	
 
	
(a)
	
 
	
Separation from Service prior to Seniority Date, or Separation from Service if Seniority Date is Not Applicable

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
XX
	
(i)
	
A lump sum.

	
 
	
 
	
 
	
XX
	
(ii)
	
Annual installments over a term certain as elected by the Participant not to exceed 10 years.

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
__
	
(iii)
	
Other:
	
 
	
.

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

DD 2326-5

7

 

	
 
	
(b)
	
 
	
Separation from Service on or After Seniority Date, If Applicable

	
 
	
 
	
 
	
XX
	
(i)
	
A lump sum.

	
 
	
 
	
 
	
XX
	
(ii)
	
Annual installments over a term certain as elected by the Participant not to exceed 10 years.

	
 
	
 
	
 
	
__
	
(iii)
	
Other:
	
 
	
.

	
 
	
(c)
	
 
	
Separation from Service Upon a Change in Control Event

	
 
	
 
	
 
	
XX
	
(i)
	
A lump sum.

	
 
	
 
	
 
	
XX
	
(ii)
	
Annual installments over a term certain as elected by the Participant not to exceed 10 years.

	
 
	
 
	
 
	
__
	
(iii)
	
Other:
	
 
	
.

	
 
	
(d)
	
 
	
Death
	
 

	
 
	
 
	
 
	
XX
	
(i)
	
A lump sum.

	
 
	
 
	
 
	
XX
	
(ii)
	
Annual installments over a term certain as elected by the Participant not to exceed 10 years.

	
 
	
 
	
 
	
__
	
(iii)
	
Other:
	
 
	
.

	
 
	
(e)
	
 
	
Disability
	
 

	
 
	
 
	
 
	
XX
	
(i)
	
A lump sum.

	
 
	
 
	
 
	
XX
	
(ii)
	
Annual installments over a term certain as elected by the Participant not to exceed 10 years.

	
 
	
 
	
 
	
__
	
(iii)
	
Other:
	
 
	
.

	
 
	
 
	
 
	
__
	
(iv)
	
Not applicable.

	
 
	
 
	
 
	
If applicable, amounts not vested at the time payments due under this Section cease will be:

	
 
	
 
	
 
	
__
	
Forfeited

	
 
	
 
	
 
	
__
	
Distributed at Separation from Service if vested at that time

	
 
	
(f)
	
 
	
Change in Control Event
	
 

	
 
	
 
	
 
	
XX
	
(i)
	
A lump sum.

	
 
	
 
	
 
	
__
	
(ii)
	
Annual installments over a term certain as elected by the Participant not to exceed _____ years.

	
 
	
 
	
 
	
__
	
(iii)
	
Other:
	
 
	
.

	
 
	
 
	
 
	
__
	
(iv)
	
Not applicable.

	
 
	
 
	
 
	
 
	
 
	
 

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If applicable, amounts not vested at the time payments due under this Section cease will be:

	
 
	
 
	
 
	
__
	
Forfeited
	
 

	
 
	
 
	
 
	
__
	
Distributed at Separation from Service if vested at that time

 

7.4De Minimis Amounts.

 

				
	
 
	
XX
	
(a)
	
Notwithstanding any payment election made by the Participant, the vested balance in the Deferred Compensation Account of the Participant will be distributed in a single lump sum payment at the time designated under the Plan if at the time of a permitted Qualifying Distribution Event that is either a Separation from Service, death, Disability (if applicable) or Change in Control Event (if applicable) the vested balance does not exceed $ 10,000. In addition, the Employer may distribute a Participant's vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant's entire interest in the Plan

	
 
	
__
	
(b)
	
There shall be no pre-determined de minimis amount under the Plan; however, the Employer may distribute a Participant's vested balance at any time if the balance does not exceed the limit in Section 402(g)(1)(B) of the Code and results in the termination of the Participant's entire interest in the Plan.

 

10.1Contractual Liability: Liability for payments under the Plan shall be the responsibility of the:

 

				
	
 
	
XX
	
(a)
	
Company.

	
 
	
__
	
(b)
	
Employer or Participating Employer who employed the Participant when amounts were deferred.

14.Amendment and Termination of Plan: Notwithstanding any provision in this Adoption Agreement or the Plan to the contrary, Section 2.30 and 8.2 of the Plan shall be amended to read as provided in attached Exhibit A.

 

					
	
 
	
 
	
 
	
__
	
There are no amendments to the Plan.

	
 
	
 
	
 
	
 
	
 

 

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17.9Construction: The provisions of the Plan shall be construed and enforced according to the laws of the State of Pennsylvania, except to the extent that such laws are superseded by ERISA and the applicable provisions of the Code. 

 

IN WITNESS WHEREOF, this Agreement has been executed as of the day and year stated below. 

 

	
II-VI, Incorporated

	
Name of Employer

	
By:
	
 

	
Authorized Person

	
Date:
	
 

 

The Plan is adopted by the following Participating Employers: 

 

	
 

	
Name of Employer

	
By:
	
 

	
Authorized Person

	
Date:
	
 

 

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EXHIBIT A

2.30Seniority Date: The date on which a Participant has: 

The later of age 65 or the 5th anniversary of the participant commencement date.  The participant commencement date is the first day of the first Plan Year in which the Participant commenced  participation in the Plan. 

Section 8.2 Deemed Investments shall be amended by adding the following language after the current final sentence. 

The Committee is making available to the Participant an investment fund that is entirely invested in Employer stock (the “Stock Investment Fund”). Amounts credited to that account may be adjusted as described in Section 8.3. 

However, notwithstanding any language in the plan to the contrary: 

	
A)
	
The participant will receive any Qualifying Event distribution from the Stock Investment Fund account in shares of Employer Stock with partial shares redeemed in cash calculated as of the appropriate valuation date. 

	
B)
	
The Participant will receive any Qualifying Event distribution from the Stock Investment Fund account in shares of Employer Stock with partial shares redeemed in cash calculated as of the appropriate valuation date. 

This amendment is effective Jun 1, 2007 and applies to all current and future balances of the Stock Investment Fund as well as credits to the fund and distributions there from. 

 

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