Document:

EX-10.1

Exhibit 10.1

SUMMARY OF COMPENSATION FOR

THE BOARD OF DIRECTORS OF

STEELCASE INC.

     Non-employee directors are compensated annually as follows.

Annual Retainers

	 	 	 	 	 	 	 	 	 
	Type of Compensation	 	Director	 	Board Chair
	Board Annual Retainer
	 	$	80,000	 	 	$	150,000	 
	Committee Chair Annual Retainers:
	 	 	 	 	 	 	 	 
	Audit Committee
	 	$	10,000	 	 	 	 	 
	Compensation Committee
	 	$	10,000	 	 	 	 	 
	Nominating and Corporate Governance Committee
	 	$	5,000	 	 	 	 	 

     On January 29, 2009, the Company’s Board of Directors approved a 15% decrease in the annual
board retainer of the Board Chair and the other non-employee members of the Company’s Board of
Directors. These changes will take effect on March 1, 2009 for a period of one year and are as
follows:

	 	•	 	The annual retainer for the Board Chair will decrease from $150,000 to $127,500; and
	 
	 	•	 	The annual board retainer for the other non-employee directors will decrease from $80,000 to $68,000.

     Board annual retainers and committee chair annual retainers shall be paid on a quarterly
basis in advance, 50% in cash and the remaining 50% in either:

	 	•	 	A deemed investment in Steelcase Inc. Class A Common Stock under the Steelcase Inc.
Non-Employee Director Deferred Compensation Plan; or
	 
	 	•	 	Steelcase Inc. Class A Common Stock issued under the Steelcase Inc. Incentive Compensation Plan.

     The stock or deemed investment shall be subject to the expectation that it will be held
for the length of Board service.

     All shares granted to directors as part of their non-cash director compensation shall be
granted in the form of Steelcase Inc. Class A Common Stock, pursuant to the Steelcase Inc.
Incentive Compensation Plan. The number of shares of Class A Common Stock to be awarded shall be
calculated using the Fair Market Value, as defined in the Steelcase Inc. Incentive Compensation
Plan, of such shares on the date on which the quarterly payment is made.

Meeting Fees and Expenses

     Each director (including committee chairs but excluding the Board chair) will receive
$1,500 per committee meeting attended, paid in cash. Additionally, all directors (including
committee chairs and the Board chair) will be reimbursed for out-of-pocket expenses incurred to
attend Board and committee meetings, paid in cash.

Payments

     Payments (of cash and stock) shall be made on or about the 10th day of the
month of March, September and December. June payments shall be deferred until and paid on or about
the 30th of June, in order to accommodate the election of directors at the Steelcase
Inc. Annual Shareholders Meeting.

Deferred Compensation Plan

     Each non-employee director can participate in the Steelcase Inc. Non-Employee Director
Deferred Compensation Plan. Under this plan, directors may defer all or part of their retainer
and/or committee fees until they no longer
serve on the Board of Directors. A participating director may elect to have the deferred amount
deemed as an investment in Steelcase Inc. Class A Common Stock or invested in any of several
investment funds.

 

 

Outside Director Benefit Plan

     Each non-employee director who is not a retiree of the Company is also eligible to
participate in the Steelcase Benefit Plan for Outside Directors which provides health, dental,
vision and group travel accident benefits.

Employees and Officers

     Members of the Board of Directors who are employees or officers of the Company or any of
its subsidiaries do not receive any compensation for serving on the Board of Directors or any
committees thereof.

Last revised on January 29, 2009.EX-10.A

Exhibit (10)(a)

CMS INCENTIVE COMPENSATION PLAN

FOR CMS ENERGY

AND ITS SUBSIDIARIES

 

 

CMS INCENTIVE COMPENSATION PLAN FOR CMS ENERGY

AND ITS SUBSIDIARIES

	I.	 	GENERAL PROVISIONS

	 	1.1	 	Purpose. The purpose of the CMS Incentive Compensation Plan (“CMSICP
Plan” or “Plan”) is to:

	 	(a)	 	Provide an equitable and competitive level of compensation that will
permit CMS Energy (“Company”) and its subsidiaries to attract, retain and motivate
officers and employees.
	 
	 	(b)	 	No payments to Officers or Employees in the form of incentive
compensation shall be made unless pursuant to a plan approved by the Committee on
Compensation and Human Resources of the Board of Directors of CMS Energy and after
express approval of the Committee. This plan shall be administered by the
President and CEO of CMS Energy and the Benefit Administration Committee.

	 	1.2	 	Effective Date. The initial effective date of the Plan is January 1,
2004. The Plan, as described herein, is amended and restated effective as of January
1, 2009.
	 
	 	1.3	 	Definitions. As used in this CMSICP Plan, the following terms have the
meaning described below:

	 	(a)	 	“Annual Award” means an annual incentive award granted under the
CMSICP Plan.
	 
	 	(b)	 	“Base Salary” means the base salary on January 1 of a Performance
Year, except as impacted by a Change in Status as defined in Article V. For
purposes of the Plan, an Officer’s Base Salary must be subject to annual review
and annual approval by the Committee.
	 
	 	(c)	 	“CMS Energy” means CMS Energy Corporation.
	 
	 	(d)	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	(e)	 	“Code Section 162(m) Employee” means an employee whose compensation
is subject to the “Million Dollar Cap” under Code Section 162(m). Generally, this
is the CEO and the three highest paid executive officers of the Company (other
than the CEO and the CFO).

	 
	 	(f)	 	“Committee” means the Committee on Compensation and Human Resources
of the Board of Directors of CMS Energy Corporation.

1

 

	 	(g)	 	“Company” means CMS Energy.
	 
	 	(h)	 	“Deferred Annual Award” means the amount deferred pursuant to Section
4.2.
	 
	 	(i)	 	“Disability” means that a participant has terminated employment with
the Company or a Subsidiary and is disabled, as that term is defined under Code
Section 409A and any applicable regulations.
	 
	 	(j)	 	“Leave of Absence” for purposes of this CMSICP Plan means a leave of
absence that has been approved by the Plan Administrator.
	 
	 	(k)	 	“Officer” means an employee of the Company or a Subsidiary in Salary
Grade “E-3” or higher.
	 
	 	(l)	 	“Payment Event” means the time at which a Deferred Annual Award may
be paid pursuant to Section 4.2.
	 
	 	(m)	 	“Payment Term” means the length of time for payment of a Deferred
Annual Award under Section 4.2.
	 
	 	(n)	 	“Pension Plan” means the Pension Plan for Employees of Consumers
Energy and Other CMS Energy Companies.
	 
	 	(o)	 	“Performance Year” means the calendar year prior to the year in which
an Annual Award is made by the Committee.
	 
	 	(p)	 	“Plan Administrator” for Officer participants means the President and
Chief Executive Officer of CMS Energy, under the general direction of the
Committee. For all other participants and for purposes of administering Deferred
Amounts under Section 4.2, the Plan Administrator is the Benefits Administration
Committee appointed by the Chief Executive Officer and the Chief Financial Officer
as authorized by the Board of Directors.
	 
	 	(q)	 	“Retirement” means that a Plan participant is no longer an active
employee and qualifies for a retirement benefit other than a deferred vested
retirement benefit under the Pension Plan. For a participant ineligible for
coverage under the Pension Plan and covered instead under the Defined Company
Contribution Plan, retirement occurs when there is a Separation from Service on or
after age 55 with 5 or more years of service.
	 
	 	(r)	 	“Separation from Service” means an Employee retires or otherwise has
a separation from service from the Company as defined under Code Section 409A and
any applicable regulations. The Plan Administrator will determine,
consistent with the requirements of Code Section 409A and any applicable
regulations, to what extent a person on a leave of absence, including on paid 

2

 

	 	 	 	sick
leave pursuant to Company policy, has incurred a Separation from Service.
Notwithstanding the above, a Separation from Service will occur consistent with
the Regulation 1.409A-1(h) when it is reasonably anticipated that the level of
service provided by the Employee will be no more than 45% of the average level of
bona fide service performed by the Employee over the immediately preceding 36
month period.
	 
	 	(s)	 	“Subsidiary” means any direct or indirect subsidiary of the Company.

	 	1.4	 	Eligibility. Officers of CMS Energy and/or Consumers Energy and U.S.
Employees who do not participate in a broad based incentive plan contingent upon
objectives and performance unique to the employees’ subsidiary, affiliate, site and/or
business unit, are eligible for participation in the CMSICP Plan (“Employee”). An
individual listed on the Company payroll records as a contract employee is not eligible
for this Plan.
	 
	 	1.5	 	Administration of the Plan.

	 	(a)	 	The Plan is administered by the President and Chief Executive Officer
of CMS Energy under the general direction of the Committee.
	 
	 	(b)	 	The Committee, will normally approve performance goals in January of
the Performance Year, but no later than March 30th of the Performance
Year.
	 
	 	(c)	 	The Committee, no later than March 1st of the calendar
year following the Performance Year, will review for approval proposed Annual
Awards for the total of all CMSICP Officer participants, as recommended by the
President and CEO of CMS Energy. All proposed Annual Awards are subject to
approval of the Committee. Before the payment of any Annual Awards, the Company’s
outside auditors and the Committee will certify in writing that the performance
goals were in fact satisfied in accordance with Code Section 162(m).
	 
	 	(d)	 	The Committee reserves the right to modify the performance goals with
respect to unforeseeable circumstances or otherwise exercise discretion with
respect to proposed Annual Awards as it deems necessary to maintain the spirit and
intent of the CMSICP Plan, provided that such discretion will be to decrease or
eliminate, not increase, Annual Awards in the case of any Code Section 162(m)
Employees. The Committee also reserves the right in its discretion to not pay
Annual Awards for a Performance Year. All decisions of the Committee are final.

	II.	 	CORPORATE PERFORMANCE GOALS

	 	2.1	 	In General. Corporate performance goals are established in two
areas: (1) the adjusted net income per outstanding CMS Energy share (EPS); and (2)
the Corporate Free Cash Flow of CMS Energy (CFCF).

3

 

	 	2.2	 	Plan Performance Factor. The plan performance factor used to
calculate an Annual Award is based on the results of the corporate performance goals
and is capped at two times the standard award amount. The Plan Performance Factor is
established in a table relating specific performance results in the areas of EPS and
CFCF to specific performance goals. This table shall be created by the Committee for
each Performance Year.

	III.	 	ANNUAL AWARD FORMULA

	 	3.1	 	Officers’ Annual Awards. Annual Awards for each eligible Officer will
be based upon a percentage of the Officer’s Base Salary for the Performance Year times
the Plan performance factor for the year as determined under 2.2 above. The standard
award percentages are set forth in the table below. The maximum amount that can be
awarded under this Plan for any Code Section 162(m) Employee will not exceed $2.5
Million in any one Performance Year. The total amount of an CMSICP participant
Officer’s Annual Award shall be computed according to the annual award formula set
forth in Section 3.2.

	 	 	 	 	 	 	 	 	 
	 	 	Salary	 	Percentage
	Position	 	Grade	 	of Base Salary
	President & CEO
	 	 	E-9	 	 	 	100	%
	President, Consumers Energy
	 	 	E-8	 	 	 	60	%
	Executive Vice Pres
	 	 	E-7	 	 	 	55	%
	Senior Vice President
	 	 	E-6	 	 	 	50	%
	Senior Vice President
	 	 	E-5	 	 	 	45	%
	Vice President
	 	 	E-4	 	 	 	40	%
	Vice President
	 	 	E-3	 	 	 	35	%

	 	3.2	 	Calculation of Award. Annual Awards for Officer, CMSICP participants
will be calculated and made as follows:

Annual Award = Base Salary times

Standard Award Percentage times Plan Performance Factor

	 	 	 	In addition, each Annual Award for Officers of Consumers Energy Company may be modified
based on the results achieved for the Consumers Energy Annual Employee Incentive
Compensation Plan. If the Consumers Energy Annual Employee Incentive Compensation Plan
does not pay out an award for the same Performance Year, then the Annual Award, if any,
earned under this Plan will be reduced by 10%. If the Consumers Energy Annual Employee
Incentive
Compensation Plan pays out an award for the same Performance Year based on achievement
of some, but not all, of the established objectives, then there is no modification of
awards under this Plan. If however, the Consumers Energy Annual Employee Incentive
Compensation Plan pays out an award for the same Performance Year based on achievement
of 100% of the established objectives, then the Annual Award, if any, earned under this
Plan will

4

 

	 	 	 	be increased by up to 10%, provided, however, that no such increase will
cause the Annual Award to exceed the maximum of two times the standard award amount.
	 
	 	3.3	 	Employees’ Annual Awards. Annual Awards for eligible Employee, CMSICP
participants will be based upon a standard award as set forth in the table below. The
total amount of an Employee Annual Award shall be computed according to the annual
award formula set forth in Section 3.4.

	 	 	 	 	 	 	 	 	 
	Salary	 	Standard Award Amount
	Grade	 	Full time	 	Part time
	25
	 	$	37,000	 	 	 	 	 
	24
	 	$	36,500	 	 	 	 	 
	23
	 	$	22,500	 	 	 	 	 
	22
	 	$	22,000	 	 	 	 	 
	21
	 	$	13,500	 	 	 	 	 
	20
	 	$	13,000	 	 	 	 	 
	19
	 	$	12,500	 	 	 	 	 
	18
	 	$	2,000	 	 	$	1,000	 
	17
	 	$	1,750	 	 	$	875	 
	16
	 	$	1,500	 	 	$	750	 
	15
	 	$	1,350	 	 	$	675	 
	14
	 	$	1,200	 	 	$	600	 
	13
	 	$	1,150	 	 	$	575	 
	12
	 	$	1,100	 	 	$	550	 
	11
	 	$	1,050	 	 	$	525	 
	10
	 	$	1,000	 	 	$	500	 
	9
	 	$	950	 	 	$	475	 
	8
	 	$	900	 	 	$	450	 
	7
	 	$	850	 	 	$	425	 
	6
	 	$	800	 	 	$	400	 
	5
	 	$	750	 	 	$	375	 
	4
	 	$	700	 	 	$	350	 
	3
	 	$	650	 	 	$	325	 
	2
	 	$	600	 	 	$	300	 
	1
	 	$	550	 	 	$	275	 

	 	3.4	 	Calculation of Award. Annual Awards for CMSICP participants will be
calculated and made as follows:

Annual Award = Standard Award Amount times Plan Performance Factor

	IV.	 	PAYMENT OF ANNUAL AWARDS

	 	4.1	 	Cash Annual Award. All Annual Awards for a Performance Year will be
paid in cash after certification by the outside auditors of the Company and the
Committee that the performance goals have been satisfied, but not later than March
15th of the calendar year following the Performance Year provided that the
Annual Award for a

5

 

	 	 	 	particular Performance Year has not been deferred voluntarily
pursuant to Section 4.2. The amounts required by law to be withheld for income and
employment taxes will be deducted from the Annual Award payments. All Annual Awards
become the obligation of the company on whose payroll the Officer/Employee is enrolled
at the time the Committee makes the Annual Award.
	 
	 	4.2	 	Deferred Annual Awards.

	 	(a)	 	The payment of all or any portion (rounded to an even multiple of
10%) of a cash Annual Award may be deferred voluntarily at the election of an
individual Plan participant in salary grades 19-25 and E-3 — E-9. Any such
deferral will be net of any applicable FICA or FUTA taxes. A separate irrevocable
election must be made prior to the Performance Year. Any Annual Award made by the
Committee after termination of employment of a participant or retirement of a
participant will be paid in accordance with any deferral election made within the
enrollment period.
	 
	 	(b)	 	At the time the participant makes a deferral election he or she must
select the payment options (including the Payment Event as set forth at (c) below
and the Payment Term as set forth at (d) below) applicable to the Deferred Annual
Award for the Performance Year, as well as any earnings or income attributable to
such amounts. The payment options elected will apply only to that year’s Deferred
Annual Award and will not apply to any previous Deferred Annual Award or to any
subsequent Deferred Annual Award. Any participant who elects to defer all or a
portion of an Annual Award and who fails to select a Payment Event or a Payment
Term will be presumed to have elected a Payment Event of Separation from Service
in accordance with paragraph (c)(i) below and/or a Payment Term of a single sum.
	 
	 	(c)	 	The Payment Event elected can be either:

	 	(i)	 	Separation from Service for any reason other than death.
Payment will be made, or begin, in the later of: (1) January of the year
following the year of the Separation from Service; or (2) the seventh month
after the month of the Separation from Service. Later installments, if any,
will be paid in January of the succeeding years;
	 
	 	(ii)	 	Payment upon attainment of a date certain that is more than
1 year after the last day of the applicable Performance Year. Later
installments, if any, will be paid in January of the succeeding years; or
	 
	 	(iii)	 	The earlier of (i) or (ii) above.

	 	(d)	 	Payment Term. At the time of electing to defer an Annual Award, the
participant must also elect how he or she wishes to receive any such payment from
among the following options (the participant may elect a separate Payment Term for
each Payment Event elected):

6

 

	 	(i)	 	Payment in a single sum upon occurrence of the Payment
Event.
	 
	 	(ii)	 	Payment of a series of annual installment payments over a
period from two (2) years to fifteen (15) years following the Payment Event.
Each installment payment shall be equal to a fractional amount of the balance
in the account the numerator of which is one and the denominator of which is
the number of installment payments remaining. Although initially such
installment payments will be identical, actual payments may vary based upon
investment performance. For example, a series of 5 installment payments will
result in a payout of 1/5 of the account balance in the first installment,
1/4 of the account balance (including investment gains or losses since the
first installment date) in the second installment, etc.

	 	(e)	 	Changes to Payment Options. Once a payment option has been elected,
subsequent changes which would accelerate the receipt of benefits from the Plan
are not permitted, except that the Plan Administrator may at its discretion
accelerate payments to the extent permitted by Code Section 409A and applicable
regulations. A subsequent election to change the payment options related to a
Payment Event, in order to delay a payment or to change the form of a payment, can
only be made when all of the following conditions are satisfied:

	 	(i)	 	such election may not take effect until at least 12 months
after the date on which the election is made;
	 
	 	(ii)	 	the payment(s) with respect to which such election is made
is deferred for a period of not less than 5 years from the date such payment
would otherwise have been made (or, in the case of installment payments under
Section 4.2(d)(ii), 5 years from the date the first installment was scheduled
to be paid); and
	 
	 	(iii)	 	such election must be made not less than 12 months before
the date the payment was previously scheduled to be made (or, in the case of
installment payments under Section 4.2(d)(ii), 12 months before the first
installment was scheduled to be paid), if the participant’s previous
commencement date was a specified date.

	 	(f)	 	Investments. At the time of electing to voluntarily defer payment,
the participant must elect how the Deferred Annual Award will be treated by the
Company or Subsidiary. To the extent that any amounts deferred are placed in a
rabbi trust with an independent record keeper, a participant who has previously
deferred amounts under this Plan will automatically have his or her existing
investment profile apply to this deferral also. All determinations of the
available investment options by the Plan Administrator are final and binding upon
participants. A participant may change the investment elections at anytime prior
to the payment of the benefit, subject to any restrictions imposed

7

 

	 	 	 	by the Plan
Administrator, the plan record keeper or by any applicable laws and regulations.
A participant not making an election will have amounts deferred treated as if in a
Lifestyle Fund applicable to the participant’s age 65, rounded up, or such other
investment as determined by the Benefit Administration Committee. All gains and
losses will be based upon the performance of the investments selected by the
participant from the date the deferral is first credited to the nominal account.
If the Company elects to fund its obligation as discussed below, then investment
performance will be based on the balance as determined by the record keeper.
	 
	 	(g)	 	The amount of any Deferred Annual Award is to be satisfied from the
general corporate funds of the company on whose payroll the Plan participant was
enrolled prior to the payout beginning and are subject to the claims of general
creditors. This is an unfunded nonqualified deferred compensation plan. To the
extent the Company or Subsidiary, as applicable, elects to place funds with a
trustee to pay its future obligations under this Plan, such amounts are placed for
the convenience of the Company or Subsidiary, remain the property of the Company
or Subsidiary and the participant shall have no right to such funds until properly
paid in accordance with the provisions of this Plan. For administrative ease and
convenience, such amounts may be referred to as participant accounts, but as such
are a notional account only and are not the property of the participant. Such
amounts remain subject to the claims of the creditors of the Company or
Subsidiary.
	 
	 	(h)	 	Payment in the Event of an Unforeseeable Emergency. The participant
may request that payments commence immediately upon the occurrence of an
unforeseeable emergency as that term is defined in Code Section 409A and any
applicable regulations. Generally, an unforeseeable emergency is a severe
financial hardship resulting from an illness or accident of the participant or the
participant’s spouse or dependent, loss of the participant’s property due to
casualty, or other similar extraordinary and unforeseeable circumstances arising
as a result of events beyond the control of the participant. A distribution on
account of unforeseeable emergency may not be made to the extent that such
emergency is or may be relieved through reimbursement or compensation from
insurance or otherwise, by liquidation of the participant’s assets (without
causing severe financial hardship), or by cessation of deferrals under this
arrangement, the Savings Plan for Employees of Consumers Energy and other
CMS Energy Companies (the “Savings Plan”) or other arrangements. Distributions
because of an unforeseeable emergency shall not exceed the amount permitted under
Section 409A and accordingly are limited to the amount reasonably necessary to
satisfy the emergency need (after use of insurance proceeds, liquidation of
assets, etc.) plus an amount to pay taxes reasonably anticipated as a result of
the distribution. In the event any payment is made due to an unforeseeable
emergency, all deferral elections for the current Performance Year will cease and
the participant will not be eligible to make any deferral elections under this
Plan for the following Performance Year. For any

8

 

	 	 	 	participant receiving a hardship
withdrawal under the Savings Plan, all deferral elections under this Plan for the
current Performance Year will cease and the participant will not be eligible to
make any deferral elections under this Plan for the following Performance Year.

	 	4.3	 	Payment in the Event of Death.

	 	(a)	 	A participant may name the beneficiary of his or her choice on a
beneficiary form provided by the Company or record keeper, and the beneficiary
shall receive, within 90 days of the participant’s death, in a single sum, all
payments credited to the participant in the event that the participant dies prior
to receipt of Deferred Annual Awards. If a beneficiary is not named or does not
survive the participant, the payment will be made to the participant’s estate. In
no event may any recipient designate a year of payment for an amount payable upon
the death of the participant.
	 
	 	(b)	 	A participant may change beneficiaries at any time, and the change
will be effective as of the date the plan record keeper or Company accepts the
form as complete. Neither the Company nor the applicable Subsidiary will be
liable for any payments made before receipt and acceptance of a written
beneficiary request.

	V.	 	CHANGE OF STATUS
	 
	 	 	Payments in the event of a change in status will not be made if no Annual Awards are made
for the Performance Year.

	 	5.1	 	Pro-Rata Annual Awards. A new Officer/Employee participant, whether
hired or promoted to the position, or an Officer/employee promoted to a higher salary
grade during the Performance Year will receive a pro rata Annual Award based on the
percentage of the Performance Year in which the employee is in a particular salary
grade. An Officer/Employee participant whose salary grade has been lowered, but whose
employment is not terminated during the Performance Year will receive a pro rata Annual
Award based on the percentage of the Performance Year in which the employee is in a
particular salary grade.
	 
	 	5.2	 	Termination. An Officer/Employee participant whose employment is
terminated pursuant to a violation of the Company code of conduct or other corporate
policies will not be considered for or receive an Annual Award.
	 
	 	5.3	 	Resignation. An Officer/Employee participant who resigns prior to
payment (during or after a Performance Year) will not be eligible for an Annual Award.
If the resignation is due to reasons such as a downsizing or reorganization, or the ill
health of the employee or ill health in the immediate family, the employee may petition
the Plan Administrator and may be considered, in the discretion of the Plan

9

 

	 	 	 	Administrator, for a pro rata Annual Award. The Plan Administrator’s decision to
approve or deny the request for a pro rata Annual Award shall be final.
	 
	 	5.4	 	Death, Disability, Retirement, Leave of Absence. An Officer/Employee
participant whose status as an active employee is changed during the Performance Year
due to death, Disability, Retirement, or Leave of Absence will receive a pro rata
Annual Award. An Officer/Employee participant whose employment is terminated following
the Performance Year but prior to payment due to death, Disability or Retirement will
continue to be eligible for an Annual Award for the Performance Year. Any such payment
or Annual Award payable due to the death of the Officer/Employee participant will be
made to the named beneficiary, or if no beneficiary is named or if the beneficiary
doesn’t survive the Officer/Employee participant, then to the Officer/Employee
participant’s estate no later than March15 following the applicable Performance Year.
Notwithstanding the above, an Officer/Employee participant who retires, is on
disability or leave of absence and who becomes employed by a competitor of CMS Energy
or Consumers Energy or their subsidiaries or affiliates prior to award payout will
forfeit all rights to an Annual Award, unless prior approval of such employment has
been granted by the Committee. A “competitor” shall mean an entity engaged in the
business of (1) selling (a) electric power or natural gas at retail or wholesale
within the State of Michigan or (b) electric power at wholesale within the market area
in which an electric generating plant owned by a subsidiary or affiliate of CMS Energy
is located or (2) developing an electric generating plant within the State of Michigan
or a market area in which an electric generating plant owned by a subsidiary or
affiliate of CMS Energy is located.
	 
	 	5.5	 	Clawback.

	 	(a)	 	If, due to a restatement of CMS Energy’s or an Affiliate’s publicly
disclosed financial statements or otherwise, an Officer or Employee is subject to
an obligation to make a repayment or return of benefits to CMS Energy or an
Affiliate pursuant to a clawback provision contained in this Plan, a supplemental
executive retirement plan, the Performance Incentive Stock Plan, or any other
benefit plan (a “benefit plan clawback provision”) of the Company, it shall be a
precondition to the payment of any award under this Plan, that the Officer or
Employee fully repay or return to the Company any amounts owing
under such benefit plan clawback provision. Any and all awards under this Plan
are further subject to any provision of law which may require the Officer or
Employee to forfeit or return any benefits provided hereunder, in the event of a
restatement of the Company’s publicly disclosed accounting statements or other
illegal act, whether required by Section 304 of the Sarbanes-Oxley Act of 2002,
federal securities law (including any rule or regulation promulgated by the
Securities and Exchange Commission), any state law, or any rule or regulation
promulgated by the applicable listing exchange or system on which the Company
lists its traded shares.

10

 

	 	(b)	 	To the degree any benefits hereunder are not otherwise forfeitable
pursuant to the preceding sentences of this Section 10.2, the Board or a Committee
delegated authority by the Board (“delegated Committee”), may require the Officer
or Employee to return to the Company or forfeit any amounts granted under this
Plan, if:

	 	1.	 	the grant of such compensation was predicated upon
achieving certain financial results which were subsequently the subject of
a substantial accounting restatement of the Company’s financial statements
filed under the securities laws (a “financial restatement”),
	 
	 	2.	 	a lower payout or Annual Award (“reduced financial
results”), would have occurred based upon the financial restatement, and
	 
	 	3.	 	in the reasonable opinion of the Board or the delegated
Committee, the circumstances of the financial restatement justify such a
modification of the Annual Award. Such circumstances may include, but are
not limited to, whether the financial restatement was caused by misconduct,
whether the financial restatement affected more than one period and the
reduced financial results in one period were offset by increased financial
results in another period, the timing of the financial restatement or any
required repayment, and other relevant factors.

	 	 	 	Unless otherwise required by law, the provisions of this Subsection (b) relating to the
return of previously paid Plan benefits shall not apply unless a claim is made therefore
by the Company within three years of the payment of such benefits.

	 	(c)	 	The Board or delegated Committee shall also have the discretion to
require a clawback in the event of a mistake or accounting error in the calculation
of a benefit or an award that results in a benefit to an eligible individual to
which he/she was not otherwise entitled. The rights set forth in this Plan
concerning the right of the Company to a clawback are in addition to any other
rights to recovery or damages available at law or equity and are not a limitation
of such rights.

	VI.	 	MISCELLANEOUS

	 	6.1	 	Impact on Benefit Plans. Payments made under the Plan will be
considered as earnings for the Supplemental Executive Retirement Plans (Salary Grades
24 and 25) but not for purposes of the Employees’ Savings Plan, Pension Plan, or other
employee benefit programs.
	 
	 	6.2	 	Impact on Employment. Neither the adoption of the Plan nor the
granting of any Annual Award under the Plan will be deemed to create any right in any
individual to be retained or continued in the employment of the Company or any
corporation within the Company’s control group.

11

 

	 	6.3	 	Termination or Amendment of the Plan. The Board of Directors of the
CMS Energy Corporation may amend or terminate the Plan at any time. Upon termination,
any amount accrued under the Plan will remain in the Plan and be paid out in accordance
with the payment options previously selected. The Plan Administrator is authorized to
make any amendments that are deemed necessary or desirable to comply with any
applicable laws, regulations or orders or as may be advised by counsel or to clarify
the terms and operation of the Plan. The Company may terminate the Plan and accelerate
payment of any deferred benefits under the Plan if it acts consistent in all respects
with the requirements of Code Section 409A and any applicable regulations with respect
to when a terminated plan may accelerate payment to a participant.
	 
	 	6.4	 	Governing Law. The Plan will be governed and construed in accordance
with the laws of the State of Michigan.
	 
	 	6.5	 	Dispute Resolution. Any disputes related to the Plan must be brought
to the Plan Administrator. The Plan Administrator is granted full discretionary
authority to apply the terms of the Plan, make administrative rulings, interpret the
Plan and make any other determinations with respect to the Plan. If the Plan
Administrator makes an adverse determination and the participant disagrees with or
wishes to appeal the determination, the participant must appeal the decision to the
Plan Administrator, in writing and not later than 60 days from when the determination
was mailed to the participant. If the participant does not timely appeal the original
determination, the participant has no further rights under the Plan with respect to the
matter presented in the claim. If the participant appeals the original determination
and that appeal does not result in a mutually agreeable resolution, then the dispute
shall be subject to final and binding arbitration before a single arbitrator selected
by the parties to be conducted in Jackson, Michigan, provided the participant makes
such request for arbitration in writing within 30 days of the final decision by the
Plan Administrator. The arbitration will be conducted and finished within 90 days of
the selection of the arbitrator. The parties shall share equally the cost of the
arbitrator and of conducting the arbitration proceeding, but each party shall bear the
cost of its own legal counsel and experts and other out-of-pocket expenditures. The
arbitrator must use an arbitrary and capricious standard
of review when considering any determinations and findings by the Plan Administrator.

	VII.	 	AMENDMENT TO REFLECT CODE SECTION 409A

	 	7.1	 	Code Section 409A. This Plan has been amended, effective as of January
1, 2005, to comply with the requirements of Section 409A of the Code. To the extent
counsel determines additional amendments may be reasonable or desirable in order to
comply with Code Section 409A, and any other applicable rules, laws and regulations,
such changes shall be authorized with the approval of the Plan Administrator.

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]