Document:

exv10w7

 

EXHIBIT 10.7

HOUSEHOLD INTERNATIONAL DIRECTORS

NON-QUALIFIED DEFERRED COMPENSATION
PLAN

SECTION 1.     Purpose.
The purpose of this Plan is to provide non-management directors
(the “Directors”) of Household International, Inc.
(the “Company”) the opportunity to defer receipt of
cash compensation paid by the Company to such person in their
role as Director and to provide for future savings of
compensation earned. The provision of such an opportunity is
designed to aid the Company in attracting and retaining as
members of its Board of Directors, persons whose abilities,
experience and judgment can contribute to the well being of the
Company.

SECTION 2.     Name,
Effective Date. The Company previously maintained a deferred
compensation plan known as the Household International Deferred
Fee Plan for Directors which had an effective date of
January 10, 1995 as well as a plan known as the Household
International Deferred Phantom Stock Plan for Directors which
had an effective date of July 11, 1995. These two plans are
referred to herein as the “Prior Plans.” The Company
now desires to substantially change the provisions of the Prior
Plans especially with respect to investment options and deferral
elections. Accordingly, this plan known as the Household
International Directors Non-Qualified Deferred Compensation Plan
(the “Plan”) is to be effective as of May 1, 2004
(the “Effective Date”).

SECTION 3.     Plan
Year. The initial Plan Year shall begin on May 1, 2004
and end on December 31, 2004. Thereafter, a Plan Year shall
be the calendar year.

SECTION 4.     Administration
of the Plan. The Plan shall be administered by the
Compensation Committee of the Board of Directors of the Company
(the “Committee”). The Committee shall conclusively
interpret the provisions of the Plan, decide all claims, and
shall make all determinations under the Plan. The Committee
shall act by vote or written consent of a majority of its
members. However, the Committee may appoint one or more persons
or an entity as its delegate to handle various administrative
matters on its behalf such as recordkeeping and other
administrative duties with respect to the Plan.

SECTION 5.     Eligibility.
Any Director serving on the Board of Directors of the Company
who is not deemed to be an employee of the Company or any of its
subsidiaries or affiliates is eligible to participate in the
Plan.

SECTION 6.     Deferred
Compensation Account. An unfunded deferred compensation
account shall be established for each person who elects to
participate in the Plan. A separate account shall be established
for each Plan Year’s deferrals. An amount equal to the
compensation deferred will be credited to the participant’s
deferred compensation account for that Plan Year within three
business days of the date such compensation would otherwise be
initially payable.

SECTION 7.     Amount
of Deferral. For Plan Year 2004 and for each Plan Year
thereafter, a participant may elect to defer receipt of Board of
Director fees (including annual retainer and chairperson
committee retainer fees) that would otherwise be paid in that
year and which have not yet been earned. The annual aggregate
deferral election made by a participant for a particular Plan
Year must be at least $5,000.

SECTION 8.     Election
of Deferral. An election to defer compensation for each Plan
Year shall be made on forms provided by the Committee for that
purpose and shall be effective on the date indicated, but not
before the date filed with the Committee. For the initial Plan
Year of the Plan, valid elections must be filed by
April 23, 2004 and will be effective with the first pay
date on or after May 1, 2004. Any deferral election made
under the Prior Plans with respect to compensation earned for
2004, shall become ineffective with respect to any amounts that
would become payable on or after May 1, 2004. For 2005 and
Plan Years thereafter, the elections must be filed by December
15 to be effective for unearned compensation that would
otherwise be paid in the following Plan Year. In the case of
newly elected Directors who first become eligible to participate
in the Plan subsequent to the first day of a Plan Year, such
newly eligible participant shall be entitled to make an election
to defer compensation for services to

 

be performed subsequent to the election provided
such election is made within 30 days after the date such
Director becomes eligible. In this case, such election shall be
effective when made with respect to any compensation to be paid
during the period beginning with the date following the date of
the election through December 31 of the same initial year
of participation.

At the time that the participant makes a deferral
election for a particular Plan Year, he or she shall also select
a time for distribution as well as the form of distribution. A
participant may elect to receive the deferrals for a particular
Plan Year either at termination from Board membership, or at a
future specified date while still serving on the Board.
Termination from Board membership means termination from the
Board of Directors of the Company and the Boards of all of the
Company’s subsidiaries and affiliates. Any future deferred
distribution date chosen by a participant must be at least two
years after the end of the Plan Year for which the election is
made.

If a participant has failed to select a future
deferred distribution date for a Plan Year deferral or if he or
she terminates Board membership, for a reason other than death,
prior to reaching the selected future deferred distribution
date, then distribution of such deferred compensation will be
made or commence in the calendar year following the date of the
participant’s termination of Board membership.

The usual form of distribution is a lump sum.
However, at the time of deferral, a participant is eligible to
select an optional form of distribution consisting of annual or
quarterly installments of up to 10 years. Quarterly
installments will be paid in January, April, July, and October.
Notwithstanding the foregoing, if at initial valuation the
amount to be distributed (i.e., a common distribution date and a
common installment method) is less than $25,000, then
distribution will be in a lump sum. The method of distribution
(from one form of installments to another form of installments
or to a lump sum and vice versa) can be changed by filing a form
with the Committee at least 12 months prior to the
distribution date. However, subject to Section 18, the
election to receive a Plan Year’s deferrals at termination
of Board membership or at some future date while still a Board
member is irrevocable.

SECTION 9.     Hypothetical
Investment. Each deferred compensation account for a
particular Plan Year will be credited with earnings from the
date on which deferred compensation is credited to the account
until the date of payment. The participant can elect to have the
amount credited to his or her account for a particular Plan Year
invested hypothetically in various benchmark funds. The
benchmark funds that initially will be available under the Plan
are as follows: 1) Van Kampen Real Estate
Securities – A Shares 2) Oppenheimer
Global – A Shares 3) AIM Small Cap
Growth – Class A 4) HSBC Investor Small Cap
Equity – Class Y 5) Fidelity Advisor Mid Cap
Stock – Class A 6) Dreyfus S&P 500 Index
7) HSBC Investor Growth & Income –
Class Y 8) HSBC Investor Fixed Income –
Class Y 9) HSBC Investor Money Market –
Class Y. The benchmark funds may be subsequently changed by
the Committee or its delegate as it sees fit. In the absence of
an investment election for a Plan Year, the participant’s
deferred compensation account balance for that Plan Year will be
deemed invested in the HSBC Investor Money Market –
Class Y.

The participant can change his or her investment
election as to the amount for a particular Plan Year already
credited or to be credited to his or her account in whole
percentages on a monthly basis by filing an appropriate election
form with the Committee by the 25th day of the month prior to
the first day of the month in which the election is to be
effective. Each Plan Year of deferrals may have a separate
investment allocation. There is no guarantee a
participant’s deferred compensation account deemed invested
in a particular benchmark fund will increase; amounts may
decrease based on the performance of the benchmark fund.

SECTION 10.     Prior
Plan Deferrals. Amounts that were previously deferred by a
participant for a Plan Year under the Prior Plans and which have
not been distributed as of the Effective Date will be credited
to the participant’s deferred compensation account under
this Plan known as the Prior Plan Balance. Amounts credited to
the Prior Plan Balance for any prior plan year will be
distributed according to the participant’s previous
deferral election for that plan year under the Prior Plans
subject to the participant’s right to change the manner of
distribution in accordance with Section 8, if eligible. The
amounts credited to the participant’s account under the
Prior Plans which were hypothetically invested in the Stock

2

 

Component shall continue to be hypothetically
invested in such Stock Component until such time as the
participant elects to have such amounts transferred to one or
more of the benchmark funds offered under the Plan but no deemed
dividends on such amounts nor new deferrals nor transfers from
other benchmark funds can be hypothetically invested in the
Stock Component. However, any amounts that are credited or would
be credited to the participant’s account under the Prior
Plans invested in the Cash Component will be invested in the
HSBC Investor Money Market – Class Y. The
participant may make an election to have amounts representing
the Prior Plan Balance for each prior plan year invested
hypothetically in the benchmark investment funds offered under
this Plan and the investment election for any plan year can be
changed from time to time in accordance with Section 9.

SECTION 11.     Value
of Deferred Compensation Accounts. The value of each
participant’s deferred compensation account shall include
compensation deferred, adjusted for any increase or decrease
thereon, pursuant to Section 9 of the Plan.

SECTION 12.     Payment
of Deferral. Subject to Section 18, a distribution may
be made from the participant’s deferred compensation
account as soon as practicable in the calendar year following
the date of the termination of the participant’s Board
membership unless an earlier date for distribution while serving
as a Board member is specified by the participant in his or her
election to defer compensation or in the event of the
participant’s death. If a participant elected to defer any
Plan Year’s compensation to a specific date while serving
as a Board member, such Plan Year’s deferred compensation
and earnings or losses thereon will be payable in cash in a lump
sum or installments, if applicable, on the date specified unless
it is paid earlier due to termination of Board membership or
death. If a participant terminates Board membership, for a
reason other than death, before the date chosen for
distribution, then distribution will occur in the calendar year
following such termination. The account balance will be
distributed in the same form of distribution elected for
termination of employment subject to the minimum requirements
for installments. If a participant terminates Board membership
while receiving in-service installments, then the remaining
installments will be distributed as they fall due.

SECTION 13.     Taxation.
All distributions from the Plan are treated as ordinary income
subject to federal and state income taxation at the time of
distribution (with the exception of states that assess taxes at
the time of deferral). Distributions (including investment
returns) are also subject to self-employment and Medicare taxes.
The participants and their beneficiaries, distributees, and
personal representatives will bear any and all federal, foreign,
state, local or other income or other taxes imposed on amounts
deferred or paid under the Plan.

SECTION 14.     Designation
of Beneficiary. A participant may designate a beneficiary or
beneficiaries which shall be effective upon filing written
notice with the Committee on the form provided by the Committee
for that purpose. If a Participant is married and has not
designated his or her spouse as the sole primary beneficiary of
his or her account, then such spouse must provide written
consent to the participant’s beneficiary designation form
or else the account will be paid to such spouse, if living, upon
the death of the participant. If no beneficiary is designated,
the beneficiary will be the participant’s estate. If more
than one beneficiary statement has been filed, the beneficiary
or beneficiaries designated in the statement bearing the most
recent date will be deemed the valid beneficiary or
beneficiaries.

SECTION 15.     Death
of Participant or Beneficiary. In the event of a
participant’s death before he or she has received the full
value of his or her deferred compensation account, the then
current value of the participant’s deferred compensation
account shall be determined and such amount shall be paid to the
beneficiary or beneficiaries of the deceased participant as soon
as practicable thereafter in cash in a lump sum. If no
designated beneficiary has been named or survives the
participant, the beneficiary will be the participant’s
estate.

SECTION 16.     Participant’s
Rights Unsecured. The right of any participant or
beneficiary to receive payment under the provisions of the Plan
shall be an unsecured claim against the general assets of the
Company, and any successor company in the event of a merger,
consolidation, reorganization or any other event which causes
the Company’s assets or business to be acquired by another
company. No provisions

3

 

contained in the Plan shall be construed to give
any participant or beneficiary at any time a security interest
in the deferred compensation account or any other assets of the
Company.

SECTION 17.     Statement
of Account. Statements will be sent to participants
following the end of each calendar quarter reflecting the value
of their deferred compensation accounts as of the end of that
quarter. The accounts will be valued daily but recorded monthly.

SECTION 18.     Hardship
Withdrawals. Notwithstanding anything in this Plan to the
contrary, a participant may request a hardship withdrawal of all
or a portion of the balance of his or her deferred compensation
account by filing a written request with the Committee in a form
acceptable to the Committee for that purpose. A hardship
withdrawal will be granted on a limited basis and only due to
the participant’s or dependant’s illness or accident,
casualty loss of the participant’s property or similar
circumstances arising out of events beyond the control of the
participant. A participant requesting a hardship withdrawal will
be requested to submit documentation of the hardship and proof
that the loss is not covered by other means. This request may be
granted, solely in the absolute discretion of the Committee. No
member of the Committee may vote on, or otherwise influence, a
decision of the Committee concerning his or her request for a
hardship withdrawal. A hardship withdrawal by a participant
shall have no effect on any amounts remaining in the
participant’s account and shall not have any effect on any
current or future deferral election after the hardship
withdrawal.

SECTION 19.     Assignability.
No right to receive payments hereunder shall be transferable or
assignable by a participant or a beneficiary.

SECTION 20.     Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Illinois.

SECTION 21.     Amendment
or Termination of Plan. This Plan may at any time or from
time to time be amended, modified or terminated by the
Committee. No amendment, modification or termination shall,
without the consent of a participant, adversely affect such
participant’s accruals on his or her prior elections.
Rights accrued prior to termination of the Plan will not be
canceled by termination of the Plan.

SECTION 22.     Payment
of Certain Costs of the Participant. If a dispute arises
regarding the interpretation or enforcement of this Plan and the
participant (or, in the event of his or her death, his or her
beneficiary) obtains a final judgment in his or her favor from a
court of competent jurisdiction from which no appeal may be
taken, whether because the time to do so has expired or
otherwise, or his or her claim is settled by the Company prior
to the rendering of such a judgment, all reasonable legal and
other professional fees and expenses incurred by the participant
in contesting or disputing any such claim or in seeking to
obtain or enforce any right or benefit provided for in the Plan
or in otherwise pursuing his or her claim will be promptly paid
by the Company with interest thereon at the highest Illinois
statutory rate for interest on judgments against private parties
from the date of payment thereof by the participant to the date
of reimbursement to him or her by the Company.

4exv10w9

 

EXHIBIT 10.9

HOUSEHOLD INTERNATIONAL

NON-QUALIFIED DEFERRED COMPENSATION
PLAN

SECTION 1.     Purpose.
The purpose of this Plan is to provide certain executives of
Household International, Inc. (the “Company”) and
certain of its direct and indirect subsidiaries (the Company and
such subsidiaries being referred to as the
“Employers”) the opportunity to defer receipt of
compensation and provide for future savings of compensation
earned. The provision of such an opportunity is designed to aid
the Company in attracting and retaining as executives, persons
whose abilities, experience and judgment can contribute to the
well being of the Company.

SECTION 2.     Name,
Effective Date. The Company previously maintained a deferred
compensation plan known as the Household International
Non-Qualified Deferred Compensation Plan (the “Prior
Plan”) which had an effective date of December 1,
1996. The Company now desires to substantially change the
provisions of the Prior Plan especially with respect to
eligibility, investment options and deferral elections.
Accordingly, this plan also known as the Household International
Non-Qualified Deferred Compensation Plan (the “Plan”)
is to be effective as of May 1, 2004 (the “Effective
Date”).

SECTION 3.     Plan
Year. The initial Plan Year shall begin on May 1, 2004
and end on December 31, 2004. Thereafter, a Plan Year shall
be the calendar year.

SECTION 4.     Administration
of the Plan. The Plan shall be administered by the
Compensation Committee of the Board of Directors of the Company
(the “Committee”). The Committee shall conclusively
interpret the provisions of the Plan, decide all claims, and
shall make all determinations under the Plan. The Committee
shall act by vote or written consent of a majority of its
members. However, the Committee may appoint one or more persons
or an entity as its delegate to handle various administrative
matters on its behalf such as recordkeeping and other
administrative duties with respect to the Plan.

SECTION 5.     Eligibility.
Any executive of the Employers who is on the United States
payroll, other than as a secondee, and whose compensation is at
least $150,000 as of February 15, 2004 is eligible to
participate in the Plan for the initial Plan Year beginning on
May 1, 2004. For Plan Years thereafter, an executive of the
Employers who is on the United States payroll, other than as a
secondee, must have compensation of at least $150,000 as of the
November 1 preceding the Plan Year for which an election is
made in order to be eligible to participate in the Plan for that
Plan Year. Compensation shall be determined prior to any
reduction for any salary contributions to a cafeteria plan
established pursuant to Section 125 of the Internal Revenue
Code of 1986, as amended (the “Code”) or to a plan
qualified pursuant to Section 401(k) of the Code or due to
a transportation fringe under Section 132(f) of the Code.
For purposes of eligibility, compensation means annualized base
salary for the current calendar year plus annual bonus,
commission, and performance based incentive awards earned in the
previous calendar year and paid by the time of the eligibility
determination date. A participant must meet the annual minimum
for each Plan Year in order to make a deferral election for that
Plan Year although the $150,000 minimum may be changed by the
Committee.

SECTION 6.     Deferred
Compensation Account. An unfunded deferred compensation
account shall be established for each person who elects to
participate in the Plan. A separate account shall be established
for each Plan Year’s deferrals. An amount equal to the
compensation deferred will be credited to the participant’s
deferred compensation account for that Plan Year within three
business days of the date such compensation would otherwise be
initially payable.

SECTION 7.     Amount
of Deferral. For Plan Year 2004 and for each Plan Year
thereafter, a participant may elect to defer receipt of up to
80% of the unearned salary, commissions and performance based
incentive awards that would otherwise be paid in that year
and/or up to 80% of the annual bonus earned for that year which
generally becomes payable to the participant in the following
year. No deferral election shall reduce a participant’s
compensation below the amount necessary to satisfy the amounts
needed for applicable employment taxes, benefit plan withholding
requirements or income tax or other tax

 

withholding. The annual aggregate deferral
election made by a participant for a particular Plan Year must
be at least $5,000.

SECTION 8.     Election
of Deferral. An election to defer compensation for each Plan
Year shall be made on forms provided by the Committee for that
purpose and shall be effective on the date indicated, but not
before the date filed with the Committee. For the initial Plan
Year of the Plan, valid elections must be filed by
April 23, 2004 and will be effective with the first pay
date on or after May 1, 2004. Any deferral election made
under the Prior Plan with respect to compensation earned for
2004, shall become ineffective with respect to any amounts that
would become payable on or after May 1, 2004. For 2005 and
Plan Years thereafter, the elections must be filed by December
15 to be effective for unearned compensation that would
otherwise be paid in the following Plan Year. At the time that
the participant makes a deferral election for a particular Plan
Year, he or she shall also select a time for distribution as
well as the form of distribution. A participant may elect to
receive the deferrals for a particular Plan Year either at
termination of employment, including retirement due to
disability, or at a future specified date while employed. For
purposes of the Plan, termination of employment refers to
termination of employment from all the Employers and their
subsidiaries and affiliates. Any future deferred distribution
date chosen by a participant must be at least two years after
the end of the Plan Year for which the election is made. If a
participant has failed to select a future deferred distribution
date for a Plan Year deferral or if he or she terminates
employment, including retirement due to disability, for a reason
other than death, prior to reaching the selected future deferred
distribution date, then distribution of such deferred
compensation will be made or commence in the calendar year
following the date of the participant’s termination of
employment.

The usual form of distribution is a lump sum.
However, at the time of deferral, a participant is eligible to
select an optional form of distribution consisting of annual
installments of up to 10 years if he or she has or will
have 10 years of Company service as of the date such
installments begin. Notwithstanding the foregoing, if at initial
valuation the amount to be distributed (i.e., a common
distribution date and a common installment method) is less than
$25,000, then distribution will be in a lump sum. The method of
distribution (from one form of installments to another form of
installments or to a lump sum and vice versa) can be changed by
filing a form with the Committee at least 12 months prior
to the distribution date. However, subject to Section 18,
the election to receive a Plan Year’s deferrals at
termination of employment or at some future date while employed
is irrevocable.

SECTION 9.     Hypothetical
Investment. Each deferred compensation account for a
particular Plan Year will be credited with earnings from the
date on which deferred compensation is credited to the account
until the date of payment. The participant can elect to have the
amount credited to his or her account for a particular Plan Year
invested hypothetically in various benchmark funds. The
benchmark funds that initially will be available under the Plan
are as follows: 1) Van Kampen Real Estate Securities –
A Shares 2) Oppenheimer Global – A Shares
3) AIM Small Cap Growth – Class A
4) HSBC Investor Small Cap Equity – Class Y
5) Fidelity Advisor Mid Cap Stock – Class A
6) Dreyfus S&P 500 Index 7) HSBC Investor
Growth & Income – Class Y 8) HSBC
Investor Fixed Income – Class Y 9) HSBC Investor
Money Market – Class Y. The benchmark funds may
be subsequently changed by the Committee or its delegate as it
sees fit. In the absence of an investment election for a Plan
Year, the participant’s deferred compensation account
balance for that Plan Year will be deemed invested in the HSBC
Investor Money Market – Class Y.

The participant can change his or her investment
election as to the amount for a particular Plan Year already
credited or to be credited to his or her account in whole
percentages on a monthly basis by filing an appropriate election
form with the Committee by the 25th day of the month prior to
the first day of the month in which the election is to be
effective. Each Plan Year of deferrals may have a separate
investment allocation. There is no guarantee a
participant’s deferred compensation account deemed invested
in a particular benchmark fund will increase; amounts may
decrease based on the performance of the benchmark fund.

2

 

SECTION 10.     Prior
Plan Deferrals. Amounts that were previously deferred by a
participant for a Plan Year under the Prior Plan and which have
not been distributed as of the Effective Date will be credited
to the participant’s deferred compensation account under
this Plan known as the Prior Plan Balance. Amounts credited to
the Prior Plan Balance for any prior plan year will be
distributed according to the participant’s previous
deferral election for that plan year under the Prior Plan
subject to the participant’s right to change the manner of
distribution in accordance with Section 8, if eligible. The
amounts credited to the participant’s account under the
Prior Plan which were hypothetically invested in Fund A
(the Stock Fund) shall continue to be hypothetically invested in
such Stock Fund until such time as the participant elects to
have such amounts transferred to one or more of the benchmark
funds offered under the Plan but no deemed dividends on such
amounts nor new deferrals nor transfers from other benchmark
funds can be hypothetically invested in the Stock Fund. However,
any amounts that are credited or would be credited to the
participant’s account under the Prior Plan invested in
Fund B (the Treasury Fund) will be invested in the HSBC
Investor Money Market – Class Y. The participant
may make an election to have amounts representing the Prior Plan
Balance for each prior plan year invested hypothetically in the
benchmark investment funds offered under this Plan and the
investment election for any plan year can be changed from time
to time in accordance with Section 9.

SECTION 11.     Value
of Deferred Compensation Accounts. The value of each
participant’s deferred compensation account shall include
compensation deferred, adjusted for any increase or decrease
thereon, pursuant to Section 9 of the Plan.

SECTION 12.     Payment
of Deferral. Subject to Section 18, a distribution may
be made from the participant’s deferred compensation
account as soon as practicable in the calendar year following
the date of the termination of the participant’s
employment, including retirement due to disability, unless an
earlier date for distribution while employed is specified by the
participant in his or her election to defer compensation or in
the event of the participant’s death. If a participant
elected to defer any Plan Year’s compensation to a specific
date while employed, such Plan Year’s deferred compensation
and earnings or losses thereon will be payable in cash in a lump
sum or installments, if applicable, on the date specified unless
it is paid earlier due to termination of employment or death. If
a participant terminates employment, including retirement due to
disability, for a reason other than death, before the date
chosen for distribution, then distribution will occur in the
calendar year following termination. The account balance will be
distributed in the same form of distribution elected for
termination of employment subject to the minimum requirements
for installments. If a participant terminates employment while
receiving in-service installments, then the remaining
installments will be distributed as they fall due.

SECTION 13.     Withholding.
There shall be deducted from all deferrals and payments under
the Plan the amount of any taxes required to be withheld by any
federal, state or local government. The participants and their
beneficiaries, distributees, and personal representatives will
bear any and all federal, foreign, state, local or other income
or other taxes imposed on amounts deferred or paid under the
Plan.

SECTION 14.     Designation
of Beneficiary. A participant may designate a beneficiary or
beneficiaries which shall be effective upon filing written
notice with the Committee on the form provided by the Committee
for that purpose. If a Participant is married and has not
designated his or her spouse as the sole primary beneficiary of
his or her account, then such spouse must provide written
consent to the participant’s beneficiary designation form
or else the account will be paid to such spouse, if living, upon
the death of the participant. If no beneficiary is designated,
the beneficiary will be the participant’s estate. If more
than one beneficiary statement has been filed, the beneficiary
or beneficiaries designated in the statement bearing the most
recent date will be deemed the valid beneficiary or
beneficiaries.

SECTION 15.     Death
of Participant or Beneficiary. In the event of a
participant’s death before he or she has received the full
value of his or her deferred compensation account, the then
current value of the participant’s deferred compensation
account shall be determined and such amount shall be paid to the
beneficiary or beneficiaries of the deceased participant as soon
as practicable thereafter in cash in a lump sum. If no
designated beneficiary has been named or survives the
participant, the beneficiary will be the participant’s
estate.

3

 

SECTION 16.     Participant’s
Rights Unsecured. The right of any participant or
beneficiary to receive payment under the provisions of the Plan
shall be an unsecured claim against the general assets of the
Company, and any successor company in the event of a merger,
consolidation, reorganization or any other event which causes
the Company’s assets or business to be acquired by another
company. No provisions contained in the Plan shall be construed
to give any participant or beneficiary at any time a security
interest in the deferred compensation account or any other
assets of the Company.

SECTION 17.     Statement
of Account. Statements will be sent to participants
following the end of each calendar quarter reflecting the value
of their deferred compensation accounts as of the end of that
quarter. The accounts will be valued daily but recorded monthly.

SECTION 18.     Hardship
Withdrawals. Notwithstanding anything in this Plan to the
contrary, a participant may request a hardship withdrawal of all
or a portion of the balance of his or her deferred compensation
account by filing a written request with the Committee in a form
acceptable to the Committee for that purpose. A hardship
withdrawal will be granted on a limited basis and only due to
the participant’s or dependant’s illness or accident,
casualty loss of the participant’s property or similar
circumstances arising out of events beyond the control of the
participant. A participant requesting a hardship withdrawal will
be requested to submit documentation of the hardship and proof
that the loss is not covered by other means. This request may be
granted, solely in the absolute discretion of the Committee. No
member of the Committee may vote on, or otherwise influence, a
decision of the Committee concerning his or her request for a
hardship withdrawal. A hardship withdrawal by a participant
shall have no effect on any amounts remaining in the
participant’s account and shall not have any effect on any
current or future deferral election after the hardship
withdrawal.

SECTION 19.     Assignability.
No right to receive payments hereunder shall be transferable or
assignable by a participant or a beneficiary.

SECTION 20.     Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Illinois.

SECTION 21.     Amendment
or Termination of Plan. This Plan may at any time or from
time to time be amended, modified or terminated by the
Committee. No amendment, modification or termination shall,
without the consent of a participant, adversely affect such
participant’s accruals on his or her prior elections.
Rights accrued prior to termination of the Plan will not be
canceled by termination of the Plan.

SECTION 22.     Payment
of Certain Costs of the Participant. If a dispute arises
regarding the interpretation or enforcement of this Plan and the
participant (or, in the event of his or her death, his or her
beneficiary) obtains a final judgment in his or her favor from a
court of competent jurisdiction from which no appeal may be
taken, whether because the time to do so has expired or
otherwise, or his or her claim is settled by the Company prior
to the rendering of such a judgment, all reasonable legal and
other professional fees and expenses incurred by the participant
in contesting or disputing any such claim or in seeking to
obtain or enforce any right or benefit provided for in the Plan
or in otherwise pursuing his claim will be promptly paid by the
Company with interest thereon at the highest Illinois statutory
rate for interest on judgments against private parties from the
date of payment thereof by the participant to the date of
reimbursement to him or her by the Company.

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]