Document:

Exhibit 4.1

 

MANHATTAN
BANCORP

 

2007
STOCK OPTION PLAN

 

Adopted
August 10, 2007

 

1.             Purpose.  The purpose
of the 2007 Stock Option Plan (the “Plan”) is to strengthen Manhattan Bancorp (the “Company”) and those corporations
which are or hereafter become subsidiary corporations of the Company, within
the meaning of Section 424(f) of the Internal Revenue Code of 1986,
as amended (the “Code”), by providing to participating employees and directors
added incentive for high levels of performance and for unusual efforts to
increase the earnings of the Company and its subsidiary corporations.  The Plan seeks to accomplish these purposes
and results by providing a means whereby such employees and directors may purchase
shares of the common stock of the Company pursuant to (a) options granted
pursuant to the Incentive Stock Option Plan (the “Incentive Plan”)
(Division A hereof) which will qualify as incentive stock options under Section 422
of the Code (“Incentive Options”), or (b) options granted pursuant to the
Non-Qualified Stock Option Plan (the “Non-Qualified Plan”) (Division B
hereof) which are intended to be non-qualified stock options described in
Treas. Reg. §1.83-7 to which Section 421 of the Code does not apply (“Non-Qualified
Options”).  (Hereinafter, the term “Options”
shall collectively refer to Incentive Options and Non-Qualified Options.).

 

2.             Administration.  This
Plan shall initially be administered by the Board of Directors of the Company
(the “Board of Directors”).  The Board of
Directors may, in its sole discretion, from time to time, delegate such power
and authority over the administration of the Plan as the Board of Directors
deems appropriate to a committee composed of not fewer than three (3) directors
of the Company.  If the administration of
the Plan is delegated to such a committee (whether a Stock Option Committee or
Compensation Committee), then the members of such committee must be
independent, non-employee directors of the Company as defined by the rules of
the NASD.  Nothing contained herein shall
prevent the Board of Directors from delegating to such committee full power and
authority over the administration of the Plan.

 

Any action of the Board of Directors (or committee) with respect to
administration of the Plan shall be taken pursuant to a majority vote of its
members; provided, however, that with respect to action by the Board of
Directors (or committee) in granting an option to an individual director, such
action must be authorized by the required number of directors without counting
the interested director, who shall abstain as to any vote on his option.  An interested director may be counted in
determining the presence of a quorum at a meeting of the Board of Directors (or
committee) where such action will be taken.

 

Subject to the express provisions of the Plan, the Board of Directors
(or the committee, if authorized) shall have the authority to construe and
interpret the Plan, and to define the terms used therein, to prescribe, amend,
and rescind rules and regulations relating to administration of the Plan,
to determine the duration and purposes of leaves of absence which may be
granted to participants without constituting a termination of their employment
for purposes of the Plan, and to make all other determinations necessary or
advisable for administration of the Plan.

 

 

Determinations of the Board of Directors (or the
committee, if authorized) on matters referred to in this section shall be final
and conclusive.

 

3.             Participation; Limitation on Amount of Outstanding Options.  All salaried officers and employees of the
Company and its subsidiary corporations shall be eligible for selection to
receive both Incentive and Non-Qualified Options.  Directors of the Company and its subsidiary
corporations who are not also salaried officers or employees of the Company or
a subsidiary corporation shall be eligible to receive only Non-Qualified
Options under the Plan.    Subject to the
express provisions of the Plan, the Board of Directors (or committee, if
authorized) shall select from the eligible class and determine the individuals
who shall receive Options, whether such Options shall be Incentive or
Non-Qualified Options, and the terms and provisions of the Options (which need
not be identical), and shall grant such Options to such individuals.  An individual who has been granted an Option
(an “Optionee”) may, if such individual is otherwise eligible, be granted
additional Options if the Board of Directors (or the committee, if authorized)
shall so determine.

 

4.             Stock Subject to the Plan.  Subject to adjustment as provided in Section 13
hereof, the stock to be offered under the Plan shall be shares of the Company’s
authorized but unissued common stock, without par value (hereinafter called “stock”),
and the aggregate amount of stock to be delivered upon exercise of all Options
granted under the Plan shall not exceed 30% of the amount of the Company’s
issued and outstanding shares of common stock sold in its initial public
offering of securities, provided, however, that the total number of shares that
may be issued pursuant to Incentive Stock Options issued under the Plan shall
be 645,000 shares, with the balance of the shares that may be issued pursuant
to the exercise of Options under the Plan being issued pursuant to
Non-Qualified Options. If any Option shall expire for any reason without having
been exercised in full, the unpurchased shares subject thereto shall again be
available for purposes of the Plan.

 

5.             Option Price.  The
purchase price of stock subject to each Option shall be determined by the Board
of Directors (or the committee, if authorized) but shall not be less than one
hundred percent (100%) of the fair market value of such stock at the time such
Option is granted.  As to any Incentive
Option granted to an Optionee who, immediately before the Option is granted,
owns beneficially more than ten percent (10%) of the outstanding stock of the
Company, the purchase price must be at least one hundred ten percent (110%) of
the fair market value of the stock at the time when such Option is
granted.  The fair market value of such
stock shall be determined in accordance with any reasonable valuation method,
including the valuation methods described in Treas. Reg. § 20.2031-2.  The purchase price of any shares purchased
shall be paid in full in cash at the time of each such purchase.

 

6.             Option Period. 
Each Option and all rights or obligations hereunder shall expire on such
date as the Board of Directors (or the committee, if authorized) may determine,
but not later than ten (10) years from the date such Option is granted,
and shall be subject to earlier termination as provided elsewhere in the
Plan.  As to any Incentive Option granted
to an Optionee who, immediately before the option is granted, owns beneficially
more than ten percent (10%) of the outstanding stock of the Company (whether
acquired upon exercise of Options or otherwise), such option must not be
exercisable by its terms after five (5) years from the date of its grant.

 

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7.             Continuation of Employment.  In the case of employees, nothing contained
in the Plan (or in any Option agreement) shall obligate the Company or its
subsidiary corporations to employ any Optionee for any period or interfere in
any way with the right of the Company or its subsidiary corporations to reduce
such Optionee’s compensation.

 

8.             Exercise of Options.  Each Option shall be exercisable in such
installments, which need not be equal, and upon such contingencies as the Board
of Directors (or the committee, if authorized) shall determine; provided,
however, that if an Optionee shall not in any given installment period purchase
all of the shares which such Optionee is entitled to purchase in such
installment period, such Optionee’s right to purchase any shares not purchased
in such installment period shall continue until the expiration of such
Option.  No Option or installment thereof
shall be exercisable except with respect to whole shares, and fractional share
interests shall be disregarded.  Options
may be exercised by ten (10) days written notice delivered to the
Company stating the number of shares with respect to which the Option is being
exercised, together with cash in the amount of the purchase price for such
shares.  No fewer than ten (10) shares
may be purchased at one time unless the number purchased is the total number
which may be purchased under the Option. 
As a condition to the exercise of a Non-Qualified Option, in whole or in
part, by an Optionee who is an employee of the Company (or who was an employee
during the term of the option) the Optionee shall be required to pay to the
Company, in addition to the purchase price for the shares being exercised, an
amount equal to any taxes required to be withheld by the Company in order to
enable the Company to claim a deduction in connection with the exercise of the
Option.

 

Options may also be exercised by delivery to the Company of ten (10) days
written notice stating the number of shares with respect to which the Option is
being exercised, and by delivery to the Company of (i) an exercise notice
instructing the Company to deliver the certificates for the shares purchased to
a designated brokerage firm which shall sell the stock in the market as soon as
the Option is exercised; and (ii) a copy of irrevocable instructions
delivered to the brokerage firm to sell the shares acquired upon exercise of
the Option and to deliver to the Company from the sale proceeds sufficient cash
to pay the exercise price and applicable withholding taxes arising as a result
of the exercise, with the balance of the sales proceeds, if any, after payment
of any broker’s commission, credited to the Optionee’s brokerage account.

 

9.             Nontransferability of Options.  Each Option shall, by its terms, be
nontransferable by the Optionee, other than by Will or the laws of descent and
distribution, and shall be exercisable during such Optionee’s lifetime only by
the Optionee.

 

10.           Cessation of Employment; Disability.  Except as provided in Sections 6 and 11
hereof, if an Optionee ceases to be employed by or to serve as a director of
the Company or a subsidiary corporation for any reason other than death or
disability, such Optionee’s Option shall expire three (3) months
thereafter, and during such period after such Optionee ceases to be an employee
or director, such Option shall be exercisable only as to those shares with
respect to which installments, if any, had accrued as of the date on which the
Optionee ceased to be employed by or ceased to serve as a director of the
Company or such subsidiary corporation. 
Except as provided in Sections 6 and 11 hereof, if an Optionee
ceases to be employed by or ceases to serve as a director of the Company or a
subsidiary corporation by reason of disability (within the meaning of Section 22(e)(3) of
the Code), such Optionee’s Option shall expire not 

 

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later than one (1) year thereafter, and
during such period after such Optionee ceases to be an employee or director
such Option shall be exercisable only as to those shares with respect to which
installments, if any, had accrued as of the date on which the Optionee ceased
to be employed by or ceased to serve as a director of the Company or such
subsidiary corporation.

 

11.           Termination of Employment for Cause.  If an Optionee’s employment by or service as
a director of the Company or a subsidiary corporation is terminated for cause,
such Optionee’s Option shall expire immediately; provided, however, that the
Board of Directors may, in its sole discretion, within thirty (30) days of such
termination, waive the expiration of the Option by giving written notice of
such waiver to the Optionee at such Optionee’s last known address.  In the event of such waiver, the Optionee may
exercise the Option only to such extent, for such time, and upon such terms and
conditions as if such Optionee had ceased to be employed by or ceased to serve
as a director of the Company or such subsidiary corporation upon the date of
such termination for a reason other than cause, disability, or death.  In the case of an employee, termination for
cause shall include termination for malfeasance or gross misfeasance in the
performance of duties, conviction of illegal activity in connection therewith,
any conduct seriously detrimental to the interests of the Company or a
subsidiary corporation, or removal pursuant to the exercise of regulatory
authority by the Comptroller of the Currency, the FDIC, the Federal Reserve
Board or other bank supervisory agency; and, in any event, the determination of
the Board of Directors with respect thereto shall be final and conclusive.  In the case of a director, termination for
cause shall include removal pursuant to Sections 302 or 304 of the California
Corporations Code or removal pursuant to the exercise of regulatory authority
by the Comptroller of the Currency, the FDIC, the Federal Reserve Board or
other bank supervisory agency.

 

12.           Death of Optionee. 
Except as provided in Section 6 hereof, if any Optionee dies while
employed by or serving as a director of the Company or a subsidiary corporation
or during the three (3) month or one-year period referred to in Section 10
hereof, such Optionee’s Option shall expire one (1) year after the date of
such death.  After such death but before
such expiration, the persons to whom the Optionee’s rights under the Option
shall have passed by Will or by the applicable laws of descent and distribution
shall have the right to exercise such Option to the extent that installments,
if any, had accrued as of the date on which the Optionee ceased to be employed
by or ceased to serve as a director of the Company or such subsidiary
corporation.

 

13.           Adjustments Upon Changes in Capitalization.  If the outstanding shares of the stock of the
Company are increased, decreased, or changed into, or exchanged for a different
number or class of shares or securities of the Company, without receipt of
consideration by the Company, through reorganization, merger, recapitalization,
reclassification, stock split-up, stock dividend, stock consolidation, or
otherwise, an appropriate and proportionate adjustment shall be made in the number
and kind of shares as to which Options may be granted.  A corresponding adjustment changing the
number or kind of shares and the exercise price per share allocated to
unexercised Options, or portions thereof, which shall have been granted prior
to any such change shall likewise be made. 
Any such adjustment, however, in an outstanding Option shall be made
without change in the total price applicable to the unexercised portion of the
Option but with a corresponding adjustment in the price for each share subject
to the Option.  No fractional shares of
stock shall be issued under the Plan on account of any such adjustment.

 

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14.           Terminating Events. 
Not less than thirty (30) days prior to a “Terminating Event” as defined
below, the Board of Directors (or the committee, if authorized) shall notify
each Optionee of the pendency of the Terminating Event.  Upon delivery of said notice, any Option
granted prior to the Terminating Event shall be, notwithstanding the provisions
of Section 8 hereof, exercisable in full and not only as to those shares
with respect to which installments, if any, have then accrued, subject,
however, to earlier expiration or termination as provided elsewhere in the
Plan, and further subject to the condition that the Terminating Event in fact
occurs.  Optionees shall then be entitled
to exercise any Options or portions thereof commencing on the tenth (10th)
day, and ending on the third (3rd) day, prior to the Terminating
Event, or at such other times as may be specified by the Board of Directors in
connection with the Terminating Event. 
Upon the effective date of the Terminating Event, the Plan and any
Options granted thereunder shall terminate, unless (i) provision is made
in connection with the Terminating Event for assumption of Options theretofore
granted, or substitution for such Options of new options covering stock of a
successor employer corporation, or a parent or subsidiary corporation thereof,
with appropriate adjustments as to the number and class of shares and prices,
or (ii) in the case of a “change in control” as defined below, the Board
of Directors in its sole discretion determines prior to the effective date of
the Terminating Event that all outstanding Options and the Plan itself should
continue in full force and effect.  In
the case of such a determination by the Board of Directors, or in the event
that any pending Terminating Event does not occur, the Plan and all outstanding
Options thereunder shall continue in force with all original vesting schedules
in effect.

 

For purposes of this Section 14, a “Terminating Event” shall
include: (i) a reorganization, merger, or consolidation of the Company
with one or more corporations as a result of which the Company will not be the
surviving corporation, (ii) a sale of substantially all the assets and
property of the Company to another person, corporation or entity, or (iii) a
“change in control”, i.e., any other single transaction involving the Company
(such as a tender offer) where there is a change in ownership of at least
twenty-five percent (25%) of the Company’s outstanding shares, unless such change in ownership results from (i) a
transfer of shares to another corporation in exchange for at least eighty
percent (80%) control of that corporation, (ii) the issuance of additional
shares of stock by the Company in a public stock offering, private placement or
similar transaction, or (iii) any acquisition in which the Company will be
the surviving entity.

 

15.           Exercise or Forfeiture of Options in the Event of Order to Increase
Capital.  Notwithstanding any
other provision of any Option granted hereunder, if Bank of Manhattan, N.A.
becomes subject to any written order or directive by the Comptroller of the Currency
or other banking regulatory agency requiring Bank of Manhattan, N.A. to
increase capital, all outstanding Options under the Plan shall thereupon
terminate and be of no further force and effect.

 

16.           Acceleration of Options. 
Notwithstanding the provisions of Section 8 hereof or any provision
to the contrary contained in any Option agreement, the Board of Directors (or
the committee, if authorized), in its sole discretion, may accelerate the
vesting of all or any Option then outstanding. 
The decision by the Board of Directors to accelerate an Option or to
decline to accelerate an Option shall be final. 
In the event of the acceleration of the exercisability of Options as the
result of a decision by the Board of Directors pursuant to this Section 16,
each outstanding Option so accelerated shall be exercisable for a period from
and after the date of 

 

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such acceleration and upon such other terms and
conditions as the Board of Directors may determine in its sole discretion,
provided that such terms and conditions (other than terms and conditions
relating solely to the acceleration of exercisability and the related
termination of an Option) may not adversely affect the rights of any
Participant without the consent of the Participant so adversely affected.  Any outstanding Option which has not been
exercised by the holder at the end of such period shall terminate automatically
at that time.

 

17.           Amendment and Termination by Board of Directors.  The Board of Directors may at any time
suspend, amend, or terminate the Plan and may, with the consent of an Optionee,
make such modification of the terms and conditions of such Optionee’s Option as
it shall deem advisable; provided that, except as permitted under the
provisions of Section 13 hereof, any amendment or modification of the Plan
which would:

 

(a)           increase
the maximum number of shares which may be purchased pursuant to Options granted
under the Plan;

 

(b)          change the minimum option price;

 

(c)           increase the maximum term of Options
provided for herein; or

 

(d)          permit Options to be granted to anyone
other than a director, a salaried officer or an employee of the Company or a
subsidiary corporation;

 

requires the approval of the Company’s shareholders as
described below.  Any amendment or
modification requiring shareholder approval shall be deemed adopted as of the
date of the action of the Board of Directors effecting such amendment or
modification and shall be effective immediately, unless otherwise provided
therein, subject to approval thereof within twelve (12) months before or after
the effective date by shareholders of the Company holding not less than a
majority of the voting power of the Company; provided, however, that the Board
of Directors may amend the Plan in toto without
shareholder approval if the Plan has not yet been approved by the shareholders.

 

Notwithstanding the above, the Board of Directors (or the committee, if
authorized to do so) may grant to an Optionee, if such Optionee is otherwise
eligible, additional Options or, with the consent of the Optionee, grant a new
Option in lieu of an outstanding Option for a number of shares, at a purchase
price and for a term which in any respect is greater or less than that of the
earlier Option, subject to the limitations of Sections 5, 6 and A-2
hereof.

 

No Option may be granted during any suspension of the Plan or after
termination of the Plan.  Amendment,
suspension, or termination of the Plan shall not, without the consent of the
Optionee, alter or impair any rights or obligations under any Option
outstanding prior to such amendment, suspension or termination of the Plan.

 

18.           Time of Granting Options.  The time an Option is granted, sometimes
referred to as the date of grant, shall be the day of the action of the Board
of Directors (or the committee) described in the second sentence of Section 2
hereof, provided, however, that if appropriate resolutions of the Board of
Directors (or the committee) indicate that an Option is to be granted as of and
on some future date, the time such Option is granted shall be such future
date.  If action 

 

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by the Board of Directors (or the committee) is taken
by the unanimous written consent of its members, the action of the Board of
Directors (or the committee) shall be deemed to be at the time the last Board
(or committee) member signs the consent.

 

19.           Privileges of Stock Ownership; Securities Laws Compliance; Notice of
Sale.  No Optionee shall be
entitled to the privileges of stock ownership as to any shares of stock not
actually issued and delivered.  No shares
shall be issued upon the exercise of any Option unless and until any then
applicable requirements of any regulatory agencies having jurisdiction, and of
any exchanges upon which stock of the Company may be listed, shall have been
complied with fully.   The Company
intends to register the securities reserved under the Plan under the Securities
Act of 1933, as amended (the “Act”). 
Upon such registration, the shares received by Optionees (other than
affiliates) upon exercise of their Options will be freely tradable All
Optionees shall agree to comply with all applicable federal and state securities
laws in connection with any sale or other disposition of such common
stock.  The Optionee shall give the
Company notice of any sale or other disposition of any such shares not more
than five (5) days after such sale or other disposition.

 

20.           Effective Date of the Plan.  The Plan shall be deemed adopted as of the
date first shown herein and shall be effective immediately, subject to approval
hereof within twelve (12) months before or after said date by shareholders
holding not less than a majority of the voting power of the Company.

 

21.           Termination.  Unless
previously terminated by the Board of Directors or as provided in Section 14
hereof, the Plan shall terminate at the close of business on August 10,  2017 and no Options shall be granted under it
thereafter, but such termination shall not affect any Option theretofore
granted.

 

22.           Option Agreement. 
Each Option shall be evidenced by a written stock option agreement
executed by the Company and the Optionee and shall contain each of the
provisions and agreements herein specifically required to be contained therein,
including whether the Option is an Incentive Option or Non-Qualified Option,
and such other terms and conditions as are deemed desirable and are not
inconsistent with the Plan.

 

23.           Exculpation and Indemnification.  The Company shall indemnify and hold harmless
a member or members of the Board of Directors (or the committee), in any action
brought against such member or members to the maximum extent permitted by then
applicable law and the Articles of Incorporation and Bylaws of the Company and
any amendments thereto.

 

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DIVISION A

 

INCENTIVE STOCK OPTION PLAN

 

A-1.        Eligible Persons.  All
salaried officers and employees of the Company and its subsidiary corporations
shall be eligible for selection to participate in the Incentive Plan.  Notwithstanding any other provisions of the
Plan to the contrary, no director of the Company or a subsidiary corporation
who is not a salaried employee of the Company or a subsidiary corporation and
no member of the committee may be granted options under the Incentive Plan.

 

A-2.        Limit on Exercisability of Options.  The aggregate fair market value (determined
as of the time the Option is granted) of the stock for which any salaried
officer or employee may be granted Incentive Options which are first exercisable during any one calendar year (under all
Incentive Stock Option Plans of such employee’s employer and its parent and
subsidiary corporations) shall not exceed One Hundred Thousand Dollars
($100,000).

 

A-3.        Incorporation by Reference. 
The provisions of Sections 5, 6, 9, 10, 12, 17 and 21 of the Plan are
hereby incorporated by this reference into this Incentive Stock Option Plan.

 

A-4.        Interpretation of Plan.  Options granted pursuant to the Incentive
Plan are intended to be “incentive stock options” within the meaning of Section 422
of the Code, and the Incentive Plan shall be construed to implement that
intent.  If all or any part of an
Incentive Option shall not be deemed an “incentive stock option” within the
meaning of Section 422 of the Code, said Option shall nevertheless be
valid and carried into effect as a Non-Qualified Option.

 

DIVISION B

 

NON-QUALIFIED STOCK OPTION PLAN

 

B-1.         Eligible
Persons.  All salaried
officers and employees, and all directors of the Company and its subsidiary
corporations shall be eligible for selection to participate in the
Non-Qualified Plan.

 

B-2.         Interpretation of Plan.  Options granted pursuant to the Non-Qualified
Plan are intended to be non-qualified stock options described in Treas.
Reg. § 1.83-7 to which Section 421 of the Code does not apply,
and the Non-Qualified Plan shall be construed to implement that intent.

 

8Exhibit 10.1

 

CHASE CORPORATION

 

EMPLOYEES’ SUPPLEMENTAL PENSION PLAN

 

Effective January 1, 2008

 

 

ARTICLE I

NAME, PURPOSE AND EFFECTIVE DATE

 

1.01         Background.

 

Chase
Corporation established the Chase Corporation Employees’ Supplemental Pension
and Savings Plan (the “Prior Plan”) effective as of January 1, 1994, which
was amended effective January 1, 2005, solely for the purpose of providing
supplemental pension and savings plan benefits which are not provided under the
Pension Plan for Employees of Chase Corporation and the Chase Corporation
Deferred Salary Savings Plan.  In order
to provide greater flexibility and in light of the enactment of Section 409A
of the Internal Revenue Code of 1986, as amended as part of the American Jobs
Creation Act of 2004, and the issuance of various guidance thereunder, the
Board of Directors of Chase Corporation hereby amends and restates the Prior
Plan to create two plans, the Chase Corporation Employees’ Supplemental Pension
Plan and the Chase Corporation Employees’ Supplemental Savings Plan.  Effective as of January 1, 2008, the
portion of the Prior Plan that consists of the Supplemental Savings Plan
Benefit shall be transferred to and governed by the terms f the Chase
Corporation Employees’ Supplemental Savings Plan and the portion of the Prior
Plan that consists of the Supplemental Pension Plan Benefit shall be
transferred to and governed by this plan, which shall be known as the Chase
Corporation Employees’ Supplemental Pension Plan.

 

1.02         Effective Date.

 

This Supplemental Pension Plan shall be effective as
of January 1, 2008.

 

1.03         Plan Unfunded and Limited to Select Group of
Management or Highly Compensated Employees.

 

The
Supplemental Pension Plan is unfunded and is maintained primarily for the
purpose of providing deferred compensation to a select group of management or
highly compensated employees within the meaning of Sections 201, 301 and 401 of
the Employee Retirement Income Security Act of 1974, as amended, and shall be
interpreted and administered accordingly.

 

ARTICLE II

DEFINITIONS

 

When
used herein, the following terms defined hereinafter shall have the following
meanings unless a different meaning is clearly required by the context of the
Plan:

 

2.01         “Board” means the Board of
Directors of the Employer.

 

2.02         “Change in Control” means a “change
in ownership” of the Employer, a “change in effective control” of the Employer
or a “change in the ownership of a substantial portion of the assets” of the
Employer, within the meaning of Section 409A of the Code.

 

2

 

2.03         “Code” means the Internal
Revenue Code of 1986, as amended from time to time.  Reference to a specific provision of the Code
shall include such provision, any valid regulation or ruling promulgated thereunder,
and any provision of future law that amends, supplements, or supersedes such
provision.

 

2.04         “Compensation” means the
annual compensation paid to a Participant by the Employer for the calendar year
(after any requisite tax withholding and payroll deductions), including base
pay, other regular earnings, performance-based cash bonuses or incentive bonus
payments, any amounts deferred under a salary reduction agreement pursuant to
the Chase Corporation Deferred Salary Savings Plan or under a “cafeteria plan”
(within the meaning of Section 125 of the Code) maintained by the Employer
, but exclusive of severance pay or salary continuation payments, expense
reimbursements, special executive bonus payments paid by the Employer, awards,
any moving expenses paid by the Employer, car allowance, taxable fringe
benefits, group-term life insurance in excess of $50,000, exercised stock
options and short and long-term disability paid by a third party.

 

2.05         “Employer” means Chase
Corporation and any subsidiary and/or affiliated corporation which has adopted
this Plan.

 

2.06         “Participant” means an
employee of the Employer who has been designated a Participant in this Plan in
the manner set forth in Article III.

 

2.07         “Plan Administrator” means
Chase Corporation, or its duly authorized representative.

 

2.08         “Pension Plan” means the
Pension Plan for Employees of Chase Corporation, as amended thereafter from
time to time.

 

2.09         “Plan” or “Supplemental
Pension Plan” means Chase Corporation Employees’ Supplemental Pension Plan.

 

2.10         “Supplemental Pension Plan
Benefit” means the benefit payable under Article IV of the Plan.

 

ARTICLE III

ELIGIBILITY

 

An
employee shall be eligible to participate in the Plan if he has satisfied the
eligibility requirements for participation under the Pension Plan and the
Board, acting upon the recommendation of the Compensation and Management
Development Committee, authorizes his participation in the Plan.

 

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ARTICLE IV

SUPPLEMENTAL PENSION PLAN BENEFITS

 

4.01         Amount of Supplemental
Pension Plan Benefits.

 

A
Participant shall be entitled to a benefit under the provisions of this Article if
his benefit determined under the provisions of the Pension Plan is less than
such benefit would have been if (a) the definition of compensation under
the Pension Plan included compensation in excess of Section 401(a)(17) of
the Code, and/or (b) performance-based cash bonus payments or incentive
bonus payments were included in the definition of “compensation” under the
Pension Plan, and/or (c) the limits under Section 415 of the Code did
not apply.

 

If
a Participant’s benefit from the Pension Plan is reduced as a result of any or
all of the conditions described in the preceding paragraph, the benefit to
which the Participant shall be entitled under the Plan shall be determined as
follows:

 

(i)            The benefit actually payable
to the Participant on or after his normal retirement age under the terms of the
Pension Plan shall be calculated.

 

(ii)           The benefit which would have
been payable under the terms of the Pension Plan if the definition of
compensation under the Pension Plan included compensation in excess of Section 401(a)(17)
of the Code, and/or the definition of compensation under the Pension Plan
included performance-based cash bonus payments or incentive bonus payments
and/or the limits under Section 415 of the Code did not apply shall be
calculated.

 

(iii)          The result of step (i) shall
be subtracted from the result of step (ii), and the difference, if any,
shall be the benefit payable to the Participant.

 

4.02         Vesting.

 

A Participant shall be fully vested in his
Supplemental Pension Plan Benefit, if any, upon completion of five (5) or
more Years of Service with the Employer. 
For this purpose, a Participant shall be credited with Years of Service
in accordance with the vesting provisions of the Pension Plan.

 

4.03         Distribution of Supplemental
Pension Plan Benefit.

 

A
Participant shall be entitled to a distribution of his or her Supplemental
Pension Plan Benefit upon the Participant’s separation from service with the
Employer (within the meaning of Section 409A of the Code), including his
retirement or death.  Subject to the
provisions of Section 4.04, distribution of such Supplemental Pension Plan
Benefit shall be made in equal monthly installments over a period of 120
months, with the first installment to be made as soon as administratively
practicable after the Participant’s separation from service but no later than
the end of the calendar year in which the Participant separated from service
with the Employer, including retirement; provided, however, any Participant who
was participating in the Supplemental Pension Plan under the Prior Plan on December 31,
2007 and so elected at the time and in the manner specified by the Plan
Administrator may receive his Supplemental Pension Plan Benefit in a lump sum.

 

4

 

4.04         Section 409A Delayed
Distribution for Specified Employees.

 

If
a Participant is a “specified employee” of the Employer, within the meaning of Section 409A(a)(2)(B)(i) of
the Code at the time the Participant separates from service with the Employer,
no installment shall be made to the Participant earlier than (i) the first
business day that is six (6) months and one day following the date of the
Participant’s “separation from service” (as such term is defined by Code Section 409A
and the regulations promulgated thereunder), or (ii) the date of the
Participant’s death, but only to the extent such delayed commencement is
otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2).  The installments to which the Participant would
otherwise be entitled during the first six (6) months following his
separation from service shall be accumulated and paid, in a lump sum, on the
date that is six (6) months and one day following the Participant’s
separation from service (or if such date does not fall on a business day of the
Employer, the next following business day) and any remaining payments or benefits will be paid in
accordance with the normal payment dates specified for them herein.  For purposes of identifying
a “specified employee”, the definition of compensation under Treas. Reg. Section 1.415(c)(-2(d)(2),
the specified employee identification date shall be December 31, and the
specified employee effective date shall be the first day of the fourth month
following the identification date.

 

4.05         Death Benefit.

 

If
a Participant’s service providing relationship with the Employer terminates by
reason of his death or if he dies after he is no longer in a service providing
relationship with the Employer but prior to the distribution to him of all
amounts payable to him under the Plan, the amounts that would otherwise be
distributable to him, if living, shall be distributed to his designated
beneficiary or beneficiaries and any reference to a Participant in Section 4.01,
above, shall be deemed to include a reference to his designated beneficiary or
beneficiaries.  All beneficiary
designations shall be made in such form and manner as from time to time may be
prescribed by the Plan Administrator.  A
Participant from time to time may revoke or change any beneficiary designation
on file with the Plan Administrator.  If
there is no effective beneficiary designation on file with the Plan
Administrator at the time of Participant’s death, distribution of amounts
otherwise payable to the deceased Participant under this Plan shall be made to
his estate.  If a beneficiary designated
by a Participant to receive his benefit shall survive the Participant but die
before receiving all distributions hereunder, the balance thereof shall be paid
to such deceased beneficiary’s estate, unless the deceased Participant’s
beneficiary designation provides otherwise.

 

ARTICLE V

ADMINISTRATION

 

5.01         Duties of the Plan
Administrator.

 

The
Plan shall be administered by the Plan Administrator in accordance with its
terms and purposes.  The Plan
Administrator shall determine the amount and manner of payment of the benefits
due to or on behalf of each Participant from the Plan and shall cause them to
be paid by the Employer accordingly.

 

5

 

5.02         Finality of Decisions.

 

The
Plan Administrator is expressly granted, without intending any limitation, the
discretion to construe the terms of the Plan and to determine eligibility for
benefits hereunder.  The decisions made
by and the actions taken by the Plan Administrator in the administration of the
Plan shall be final and conclusive on all persons, and neither the Plan
Administrator nor the Employer shall be subject to individual liability with
respect to the Plan.

 

5.03         Claims Procedure.

 

(a)           Application for Benefits.  The Plan Administrator shall furnish to each
Participant information about the benefits to which he or she is entitled under
the Plan.  The Plan Administrator may
require any person claiming benefits under the Plan to submit a written
application, together with such documents, evidence, and information as it
considers necessary to process the claim.

 

Any
request for benefits by a Participant or Beneficiary will be filed in writing
with the Plan Administrator.  Within a
reasonable period after receipt of a claim, the Plan Administrator will provide
written notice to any claimant whose claim has been wholly or partly denied,
including:  (a) the reasons for the
denial, (b) the Plan provisions on which the denial is based, (c) any
additional material or information necessary to perfect the claim and the
reasons it is necessary, and (d) the Plan’s claims review procedure.

 

(b)           Action on Application.  Within ninety (90) days after receipt of
an application and all necessary documents and information, the Plan
Administrator shall furnish the claimant with a written notice of its decision.  If the Administrator denies the claim in
whole or in part, the notice will set forth (1) specific reasons for the
denial, with specific reference to Plan provisions upon which the denial is
based; (2) a description of any additional information or material
necessary to process the application with an explanation why such material or
information is necessary; and (3) an explanation of the Plan’s claim
review procedure.  If special
circumstances require an extension of time for processing the claim, the Plan
Administrator shall furnish the claimant written notice of the extension before
the end of the initial ninety (90)-day period. 
In no event shall the extension exceed a period of ninety (90) days
from the end of the initial period.  The
notice shall explain the circumstances requiring an extension of time and the
date by which the Plan Administrator expects to render a decision.

 

(c)           Claim Review.  The claimant who does not agree with the
decision rendered on his application may request that the Plan Administrator
review the decision.  The request must be
made within sixty (60) days after the claimant receives the decision, or
if the application has neither been approved nor denied within the ninety
(90)-day period specified in subsection (b), then the request must be made
within sixty (60) days after expiration of the ninety (90)-day
period.   Each request for review must be
in writing and addressed to the Plan Administrator. Concurrently with filing
the request for review, or within the sixty (60) days request period, the
claimant may submit in writing to the Plan Administrator a statement of the
issues raised by his appeal and supporting arguments and comments.  During the pendency of his appeal, the
claimant may inspect all documents which are reasonably pertinent to his case,
upon reasonable notice to the Plan Administrator.  However, under no circumstance shall the Plan
Administrator be required to disclose to any claimant information concerning
any person other than the Participant whose benefit is being claimed, to the
extent such information is normally treated as 

 

6

 

confidential.
The Plan Administrator will render its decision on review promptly and in
writing and will include specific reasons for the decision and references to
the plan provision on which the decision is based, within sixty (60) days
following receipt of the claimant’s request for review.  If special circumstances require an extension
of time, the Plan Administrator shall render a decision as soon as possible,
but not later than one hundred and twenty (120) days after receipt of the
request for review.  If an extension is
required, the Plan Administrator shall furnish to the claimant written notice
of the extension, including an explanation of the circumstances requiring the
extension, before the extension period begins.

 

ARTICLE VI

MISCELLANEOUS

 

6.01         Non-Guarantee Of Employment.

 

Nothing
contained in this Plan shall be construed as a contract of employment between
the Employer and any Participant, or as a right of any such Participant to be
continued in the employment of the Employer, or as a limitation on the right of
the Employer to deal with any Participant, as to their hiring, discharge,
layoff, compensation, and all other conditions of employment in all respects as
though this Plan did not exist.

 

6.02         Amendments/Termination.

 

The
Employer reserves the right to make from time to time amendments to or
terminate this Plan by vote duly adopted by the Board of Directors, provided
that no such amendment or termination shall reduce any benefits earned under
the terms of this Plan prior to the date of termination or amendment.  No amendment shall reduce the amount credited
to the Participants’ Accounts.  The
Employer may elect to
terminate the Plan within thirty (30) days preceding or the twelve
(12) months following a Change in Control, subject to the provisions of Section 409A
of the Code.  For the purpose of the
immediately preceding sentence, the Plan shall be treated as terminated only if
substantially similar arrangements sponsored by the Company are terminated, so
that all Participants in the Plan and all participants under substantially
similar arrangements are required to receive all amounts deferred under the
terminated arrangements within twelve (12) months of the date of
termination of the arrangements.

 

6.03         Rights Unsecured.

 

No
person shall have any right, other than the right of an unsecured general
creditor, against the Employer with respect to the benefits payable hereunder,
or which may be payable hereunder, to any Participant, surviving spouse or
beneficiary hereunder.  The Plan shall be
operated at all times as
an unfunded plan as required under ERISA. 
Any funds set aside by the Employer for the purpose of meeting its obligations
under the Plan, including any amounts held by a trustee, shall continue for all
purposes to be part of the general assets of the Employer and shall be
available to its general creditors in the event of the Company’s bankruptcy or
insolvency.  The Employer’s obligation
under this Plan shall be that of an unfounded and unsecured promise to pay
money in the future.

 

7

 

6.04         Nonassignability.

 

The
benefits payable under this Plan shall not be subject to alienation,
assignment, garnishment, execution or levy of any kind and any attempt to cause
any benefits to he so subjected shall not be recognized, except to the extent
required by applicable law.

 

6.05         Entire Agreement; Successors.

 

This
Plan, including any subsequently adopted amendments, shall constitute the
entire agreement or contract between the Employer and any Participant regarding
the Plan.  There are no covenants,
promises, agreements, conditions or understandings, either oral or written,
between the Employer and any Participant relating to the subject matter hereof,
other than those set forth in this Plan. 
This Plan and any amendment shall be binding on the parties hereto and
their respective heirs, administrators, trustees, successors and assigns, and
on all designated beneficiaries of the Participant.

 

6.06         Successor Company.

 

In
the event of the dissolution, merger, consolidation or reorganization of the
Employer, provision may be made by which a successor to all or a major portion
of the Employer’s property or business shall continue this Plan, and the
successor shall have all of the powers, duties and responsibilities of the
Employer under this Plan.

 

6.07         Governing Law.

 

To
the extent not governed by federal law, this Plan shall be construed and
enforced in accordance with, and governed by, the laws of the Commonwealth of
Massachusetts.

 

IN
WITNESS WHEREOF, Chase Corporation has caused this instrument to be executed in
its name and on its behalf this 8th day of July, 2008.

 

 

	
  

  	
  CHASE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

8

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