Document:

Exhibit 10.3

 

California Resources Corporation

Supplemental Retirement Plan II

 

Effective as of December 1, 2014

 

 

Contents

 

	
Article 1. Introduction
    	
1
    
	
1.1 Adoption of the Plan
    	
1
    
	
1.2 Purpose of the Plan
    	
1
    
	
1.3 Status of the Plan
    	
1
    
	
1.4 Application of the Plan
    	
2
    
	
 
    	
 
    
	
Article 2. Definitions
    	
3
    
	
2.1 Definitions
    	
3
    
	
 
    	
 
    
	
Article 3. Participation
    	
11
    
	
3.1 Effective Date of Participation
    	
11
    
	
3.2 No New Participants After November 30,   2014
    	
11
    
	
3.3 Allocations to Participants
    	
11
    
	
 
    	
 
    
	
Article 4. Benefits
    	
12
    
	
4.1 Allocations Relating to the Annual Additions   Limit
    	
12
    
	
4.2 Allocations Relating to the Compensation Limit
    	
12
    
	
4.3 Maintenance of Accounts
    	
13
    
	
4.4 Vesting and Forfeiture
    	
14
    
	
4.5 No New Allocations Relating to Plan Years   After December 31, 2014
    	
14
    
	
 
    	
 
    
	
Article 5. Payments
    	
15
    
	
5.1 Timing and Form of Payments
    	
15
    
	
5.2 Payment Elections and Changes
    	
16
    
	
5.3 Death
    	
17
    
	
5.4 Small Benefits
    	
17
    
	
5.5 Qualified Divorce Orders
    	
18
    
	
5.6 Tax Withholding
    	
18
    
	
5.7 Reemployment and Continued Distribution of   Account
    	
18
    
	
 
    	
 
    
	
Article 6. Administration
    	
19
    
	
6.1 The Administrative Committee
    	
19
    
	
6.2 Compensation and Expenses
    	
19
    
	
6.3 Manner of Action
    	
19
    
	
6.4 Chairman, Secretary, and Employment of   Specialists
    	
19
    
	
6.5 Subcommittees
    	
19
    
	
6.6 Other Agents
    	
19
    
	
6.7 Records
    	
20
    

 

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6.8 Rules
    	
20
    
	
6.9 Powers and Duties
    	
20
    
	
6.10 Decisions Conclusive
    	
20
    
	
6.11 Fiduciaries
    	
21
    
	
6.12 Notice of Address
    	
21
    
	
6.13 Data
    	
21
    
	
6.14 Adjustments
    	
21
    
	
6.15 Member’s Own Participation
    	
21
    
	
6.16 Indemnification
    	
22
    
	
 
    	
 
    
	
Article 7. Amendment and Termination
    	
24
    
	
7.1 Amendment and Termination
    	
24
    
	
7.2 Payments Upon Termination
    	
24
    
	
7.3 Reorganization of Employer
    	
24
    
	
 
    	
 
    
	
Article 8. Claims and Appeals Procedures
    	
25
    
	
8.1 Application for Benefits
    	
25
    
	
8.2 Claims Procedure for Benefits
    	
25
    
	
8.3 Limitations on Actions
    	
27
    
	
 
    	
 
    
	
Article 9. General Provisions
    	
28
    
	
9.1 Unsecured General Creditor
    	
28
    
	
9.2 Trust Fund
    	
28
    
	
9.3 Nonassignability
    	
28
    
	
9.4 Release from Liability to Participant
    	
28
    
	
9.5 Employment Not Guaranteed
    	
29
    
	
9.6 Gender, Singular & Plural
    	
29
    
	
9.7 Captions
    	
29
    
	
9.8 Validity
    	
29
    
	
9.9 Notice
    	
29
    
	
9.10 Applicable Law
    	
29
    

 

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Article 1. Introduction

 

1.1                               Adoption of the Plan

 

Occidental Petroleum Corporation, a Delaware corporation (“OPC”), and California Resources Corporation, a Delaware corporation (“CRC”), have entered into that certain Separation and Distribution Agreement, dated as of November 25, 2014, which generally governs the separation of CRC’s businesses from OPC’s other businesses and provides for, among other things, OPC’s distribution to holders of shares of OPC’s common stock, through a spin-off, of at least 80.1% of the outstanding shares of CRC’s common stock (the “Spin-Off”).  In connection with the Spin-Off, OPC and CRC have also entered into that certain Employee Matters Agreement, dated as of November 25, 2014 (the “Employee Matters Agreement”).  In connection with the Spin-off,  CRC Services, LLC, a Delaware limited liability company (“CRC Services”), establishes a supplemental retirement plan to assume the liabilities under the Occidental Petroleum Corporation Supplemental Retirement Plan II (the “OPC SRPII”) in respect of certain employees of CRC and its subsidiaries as of immediately prior to the effective time of the Spin-Off who were participants in the OPC SRPII as of such time (the “CRC SRPII Participants”).  In order to satisfy CRC’s obligations under the Employee Matters Agreement with respect to such liabilities, CRC Services hereby establishes this California Resources Corporation Supplemental Retirement Plan II (the “Plan”) effective as of December 1, 2014 (the “Effective Date”).

 

Notwithstanding any other Plan provision and except for earnings, no new allocations relating to the 2015 Plan Year and thereafter shall be made under this Plan.

 

1.2                               Purpose of the Plan

 

It was the purpose of the OPC SRPII to provide eligible employees with benefits that will compensate them for maximums imposed by law upon contributions to qualified plans.  The portion of the OPC SRPII reflecting credits to compensate for the maximum limits imposed by Code section 415 was intended to constitute an “excess plan” as defined in ERISA section 3(36).  The remaining portion of the OPC SRPII was intended to constitute a plan which was unfunded and maintained primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees and was intended to meet the exemptions provided in ERISA sections 201(2), 301(a)(3), and 401(a)(1), as well as the requirements of Department of Labor Regulation section 2520.104-23.  Thus, the Plan shall be administered and interpreted so as to meet the requirements of these exemptions and the regulation.

 

1.3                               Status of the Plan

 

(a)                                 Nonqualified Plan. The Plan is not qualified within the meaning of Code section 401(a). The Plan is intended to provide an unfunded and unsecured promise to pay money in the future and thus not to involve, pursuant to Treas. Reg. § 1.83-3(e), the transfer of “property” for purposes of Code section 83. Likewise, allocations 

 

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under this Plan to the account maintained for a Participant, and earnings credited thereon, are not intended to confer an economic benefit upon the Participant nor is the right to the receipt of future benefits under the Plan intended to result in any Participant, Beneficiary or Alternate Payee being in constructive receipt of any amount so as to result in any benefit due under the Plan being includible in the gross income of any Participant, Beneficiary or Alternate Payee in advance of the date on which payment of any benefit due under the Plan is actually made.

 

(b)                                 Compliance with Code Section 409A. This Plan is intended to comply with the requirements of Code section 409A and related regulatory guidance, so that the taxation of Participants and Beneficiaries on any compensation deferred under this Plan is deferred.  Notwithstanding the foregoing, any amounts that are credited and paid annually from a Participant’s account following the Participant’s attainment of a specified age, as described in Section 5.1(b)(1), are intended to qualify as short-term deferrals under Treas. Reg. § 1.409A-1(b)(4) (or any successor provision) and accordingly to be exempt from such requirements.

 

(c)                                  No Guarantees of Intended Tax Treatment. The Plan shall be administered and interpreted so as to satisfy the requirements for the intended tax treatment under the Code described in this section. However, the treatment of benefits earned under and benefits received from this Plan, for purposes of the Code and other applicable tax laws (such as state income and employment tax laws), shall be determined under the Code and other applicable tax laws and no guarantee or commitment is made to any Participant, Beneficiary or Alternate Payee with respect to the treatment of accruals under or benefits payable from the Plan for purposes of the Code and other applicable tax laws.

 

1.4                               Application of the Plan

 

This Plan is applicable only to CRC SRPII Participants.  All distributions made under the Plan on or after December 1, 2014 shall be made in accordance with the provisions of this Plan, as amended from time to time.

 

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Article 2. Definitions

 

2.1                               Definitions

 

Whenever the following words and phrases are used in the Plan with the first letter capitalized, they shall have the meanings specified below, unless the context clearly indicates otherwise:

 

(a)                                 “Administrative Committee” means the committee with authority to administer the Plan as provided under section 6.1.

 

(b)                                 “Affiliate” means CRC or:

 

(1)                                 Any corporation or other business organization while it is controlled by or under common control with CRC within the meaning of Code sections 414 and 1563;

 

(2)                                 Any member of an affiliated service group within the meaning of Code section 414(m) of which CRC or any Affiliate is a member;

 

(3)                                 Any entity which, pursuant to Code section 414(o) and related Treasury regulations, must be aggregated with CRC or any Affiliate for plan qualification purposes; or

 

(4)                                 Any corporation, trade or business which is more than 50 percent owned, directly or indirectly, by CRC and which is designated by the Board or, if authorized by the Board, the Administrative Committee as an Affiliate.

 

(c)                                  “Alternate Payee” means a former spouse of a Participant who is recognized by a Divorce Order as having a right to receive all, or a portion of, the benefits payable under this Plan with respect to the Participant.

 

(d)                                “Annual Bonus Paid” means up to the first $100,000 of bonus paid to a Participant, who is not a “named executive officer”, as that term is defined in Regulations S-K under the Securities Exchange Act of 1934 (17 CFR §229.402(a)(3)), during the period beginning on January 1, 2014 and ending on November 30, 2014 under a regular annual incentive compensation plan, such as OPC’s Variable Compensation Program or Incentive Compensation Program (but excluding without limitation a special individual or group bonus, a project bonus, and any other special bonus).  For avoidance of doubt, “Annual Bonus Paid” means no more than $100,000 of bonus paid to a Participant, who is not a “named executive officer”, as that term is defined in Regulations S-K under the Securities Exchange Act of 1934 (17 CFR §229.402(a)(3)), during the period beginning on January 1, 2014 and ending on November 30, 2014 under any one or more regular annual incentive compensation plans.

 

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(e)                                  “Base Pay of Record” means the base salary and wages earned during the period beginning on January 1, 2014 and ending on November 30, 2014 while a participant in the OPC SRPII from an Employer (or OPC or its subsidiaries) for services rendered prior to the Effective Date, including pretax deferrals under the Savings Plan, and amounts contributed pursuant to the Occidental Petroleum Flexible Spending Accounts Plan, as amended from time to time.

 

(1)                                 Base Pay of Record does not include:

 

(A)                               Bonuses, incentives, overtime, shift differential, and overseas differentials;

 

(B)                               Reimbursement for expenses or allowances, including automobile allowances and moving allowances;

 

(C)                               Any amount contributed by the Employer (or OPC or its subsidiaries) (other than pretax deferrals under the Savings Plan and any amounts contributed pursuant to the Occidental Petroleum Flexible Spending Accounts Plan, as amended from time to time) to any qualified plan or plan of deferred compensation;

 

(D)                               Any amount paid by an Employer (or OPC or its subsidiaries) for other fringe benefits, such as health and hospitalization, and group life insurance benefits, or perquisites; and

 

(E)                                Allowances paid during furlough and, for purposes of subsection (2)(F), such furloughs shall not be treated as paid leaves of absence.

 

(2)                                 Base Pay of Record is determined in accordance with the following rules:

 

(A)                               For Participants compensated by salary, Base Pay of Record means the actual base salary of record for the Participant (subject to the exclusions listed above).

 

(B)                               For Participants compensated based on mileage driven (primarily truck drivers), Base Pay of Record means the number of miles driven multiplied by the applicable mileage pay rate (subject to the exclusions listed above), plus the Participant’s scheduled number of hours worked in the pay period multiplied by the Participant’s base hourly rate (subject to the exclusions listed above).

 

(C)                               For Participants compensated at an hourly rate, Base Pay of Record means the base hourly rate (subject to the exclusions listed above) multiplied by the number of regularly scheduled hours worked in a pay period. If the Active Participant’s regularly scheduled work week is

 

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more than 40 hours, Base Pay of Record shall include an additional amount equal to the base hourly rate (subject to the exclusions listed above) times one half the number of regularly scheduled hours worked in excess of 40 in the work week.

 

(D)                               For Participants compensated on an eight, ten, twelve, or some other assigned hour Shift Basis and whose annual compensation is pre-determined under the Participant’s employer’s payroll recordkeeping system, Base Pay of Record for each pay period shall be the Participant’s pre-determined annual compensation (subject to the exclusions listed above) divided by the number of pay periods applicable to the Participant during the Plan Year. For the purpose of this subsection, the term “Shift Basis” means any arrangement whereby Participants work the assigned hour daily shifts which may result in alternating work weeks of more and less than 40 hours per week.

 

(E)                                Base Pay of Record includes vacation pay received in periodic payments and annual vacation payments made to Employees paid by commission, but does not include single sum vacation payments to active or terminating Employees.

 

(F)                                 Base Pay of Record includes base salary or wages received during paid leaves of absence and periodic notice pay, but Base Pay of Record does not include single sum notice pay payments or any severance pay payments.

 

(G)                               Base Pay of Record does not include long-term disability payments or payments made to any Participant pursuant to the Occidental Chemical Corporation Weekly Sickness and Accident Plan unless:

 

(i)                                     Such payments are made to the Participant through the payroll accounting department of OPC and its subsidiaries, and

 

(ii)                                  The Participant is ineligible for participation in the Retirement Plan.

 

(f)                                   “Base Pay Paid” means the Employee Base Pay of Record, reduced for any deferral of base salary under the Deferred Compensation Plan.

 

(g)                                  “Beneficiary” means the person or persons designated by the Participant to receive payment under this Plan in the event of the Participant’s death prior to the complete distribution to the Participant of the benefits due under the Plan.  The OPC SRPII beneficiary designation  of a CRC SRPII Participant shall carry over to this Plan.   A beneficiary designation shall become effective only when filed in writing with the Administrative Committee during the Participant’s lifetime on a paper form prescribed by the Administrative Committee.  The filing of any new Beneficiary 

 

5

 

designation form will cancel any inconsistent Beneficiary designation previously filed.

 

If a Participant fails to designate a Beneficiary as provided above, or if all designated Beneficiaries predecease the Participant, the Participant’s Beneficiary shall be the person or persons entitled to receive the Participant’s benefits under the CRC Savings Plan in the event of the Participant’s death, provided, that if a Participant has previously designated a Beneficiary under Appendix A of the Occidental Petroleum Corporation Supplemental Retirement Plan who survives the Participant, the Participant’s Beneficiary shall be the person or persons so designated under Appendix A of the Occidental Petroleum Corporation Supplemental Retirement Plan.

 

(h)           “Board” means the Board of Directors of the Company.

 

(i)            “Code” means the Internal Revenue Code of 1986, as amended.

 

(j)                                    “Company” means CRC Services and any successor thereto.

 

(k)                                 “CRC” has the meaning assigned to such term in Section 1.1.

 

(l)                                     “CRC Compensation” means the same as Compensation under the CRC Savings Plan.

 

(m)                             “CRC Savings Plan” means the California Resources Corporation Savings Plan.

 

(n)                                 “CRC Services” has the meaning assigned to such term in Section 1.1.

 

(o)                                 “CRC SRP II Participants” has the meaning assigned to such term in Section 1.1.

 

(p)                                 “Deferral Contribution” means the same as Deferral Contribution under the CRC Savings Plan.

 

(q)                                 “Deferred Compensation Plan” means the Occidental Petroleum Corporation Modified Deferred Compensation Plan, as amended from time to time.

 

(r)                                    “Divorce Order” means any judgment, decree, or order (including judicial approval of a property settlement agreement) that relates to the settlement of marital property rights between a Participant and his former spouse pursuant to a state domestic relations law (including, without limitation and if applicable, community property law), as described in Treas. Reg. § 1.409A-3(j)(4)(ii) (or any successor provision).

 

(s)                                   “Effective Date” has the meaning assigned to such term in Section 1.1.

 

(t)                                    “Employee” means any person who is a CRC Group Employee, as defined in the Employee Matters Agreement.

 

Notwithstanding the foregoing, no individual shall be considered an Employee if such individual is not classified as a common-law employee in the employment records of 

 

6

 

the Employer, without regard to whether the individual is subsequently determined to have been a common-law employee of the Employer. The persons excluded by this paragraph from being Employees are to be interpreted broadly to include and to have at all times included individuals engaged by the Employer to perform services for such entity in a relationship that the entity characterizes as other than an employment relationship, such as where the Employer engages the individual to perform services as an independent contractor or leases the individual’s services from a third party. The exclusion of the individual from being an Employee shall apply even if a determination is subsequently made by the Internal Revenue Service, another governmental agency, a court or other tribunal, after the individual is engaged to perform such services, that the individual is an employee of the Employer for purposes of pertinent Code sections or for any other purpose.

 

(u)                                 “Employee Matters Agreement” has the meaning assigned to such term in Section 1.1.

 

(v)                                 “Employer” means the Company and any Affiliate which is designated by the Board or the Administrative Committee.

 

The Board or, if authorized by the Board, the Administrative Committee may designate any Affiliate as an Employer under this Plan. The Affiliate shall become an Employer and a party to this Plan upon acceptance of such designation effective as of the date specified by the Board or Administrative Committee.

 

By accepting such designation or continuing as a party to the Plan, each Employer acknowledges that:

 

(A)                               It is bound by such terms and conditions relating to the Plan as the Company or the Administrative Committee may reasonably require;

 

(B)                               The Company and the Administrative Committee have the authority to review the Affiliate’s compliance procedures and to require changes in such procedures to protect the Plan;

 

(C)                               It has authorized the Company and the Administrative Committee to act on its behalf with respect to Employer matters pertaining to the Plan;

 

(D)                               It shall cooperate fully with Plan officials and their agents by providing such information and taking such other actions as they deem appropriate for the efficient administration of the Plan; and

 

(E)                                Its status as an Employer under the Plan is expressly conditioned on its being and continuing to be an Affiliate.

 

Subject to the concurrence of the Board or Administrative Committee, any Affiliate may withdraw from the Plan, and end its status as an Employer hereunder, by communicating to the Administrative Committee its desire to withdraw. Upon 

 

7

 

withdrawal, which shall be effective as of the date agreed to by the Board or Administrative Committee, as the case may be, and the Affiliate, the Plan shall be considered frozen as to Employees of such Affiliate.

 

(w)                               “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

(x)                                 “Matching Employer Contribution” means the same as Matching Employer Contribution under the CRC Savings Plan.

 

(y)                                 “Nonelective Employer Contribution” means the same as Nonelective Employer Contribution under the CRC Savings Plan.

 

(z)                                  “OPC” has the meaning assigned to such term in Section 1.1.

 

(aa)                          “OPC SRPII” has the meaning assigned to such term in Section 1.1.

 

(bb)                          “Participant” means (i) a person meeting the requirements to participate in the Plan set forth in Article 3 and (ii) any other person who has an account under the Plan because he previously met such requirements.

 

(cc)                            “Plan” has the meaning assigned to such term in Section 1.1.

 

(dd)                          “Plan Year” means the calendar year.

 

(ee)                            “Qualified Divorce Order” means a Divorce Order that:

 

(1)                                 Creates or recognizes the existence of an Alternate Payee’s right to, or assigns to an Alternate Payee the right to, receive all or a portion of the benefits payable to a Participant under this Plan;

 

(2)                                 Clearly specifies:

 

(A)                               The name and the last known mailing address of the Participant and the name and mailing address of the Alternate Payee covered by the order;

 

(B)                               The amount or percentage of the Participant’s benefits to be paid by this Plan to the Alternate Payee, or the manner in which such amount or percentage is to be determined;

 

(C)                               The number of payments or period to which such order applies; and

 

(D)                               That it applies to this Plan; and

 

(3)                                 Does not:

 

8

 

(A)                               Require this Plan to provide any type or form of benefit, or any option, not otherwise provided under the Plan;

 

(B)                               Require this Plan to provide increased benefits;

 

(C)                               Require the payment of benefits to an Alternate Payee that are required to be paid to another Alternate Payee under another Divorce Order previously determined to be a Qualified Divorce Order; or

 

(D)                               Require the payment of benefits under this Plan at a time or in a manner that would cause the Plan to fail to satisfy the requirements of Code section 409A (or other applicable section) and any regulations promulgated thereunder or otherwise jeopardize the deferred taxation of any amounts under this Plan.

 

(ff)                              “Retirement Plan” means the Occidental Petroleum Corporation Retirement Plan, as amended from time to time.

 

(gg)                            “Savings Plan” means the Occidental Petroleum Corporation Savings Plan, as amended from time to time.

 

(hh)                          “Separation from Service” means a Participant’s “separation from service” as defined under Code section 409A and Treas. Reg. § 1.409A-1(h) (or successor provisions).  For this purpose, a Participant shall have a Separation from Service if the Participant ceases to be an employee of both:

 

(1)                                 The Participant’s Employer;

 

(2)                                 All Affiliates with whom the Participant’s Employer would be considered a single employer under Code section 414(b) or 414(c).

 

For purposes of the preceding provisions, a Participant who ceases to be an employee of an entity described in (1) or (2) above shall not be considered to have a Separation from Service if such cessation of employment is followed immediately by his commencement of employment with another entity described in (1) or (2) above.

 

A Participant shall have a Separation from Service if it is reasonably anticipated that no further services shall be performed by the Participant, or that the level of services the Participant shall perform shall permanently decrease to no more than 20 percent of the average level of services performed by the Participant over the immediately preceding 36-month period (or the Participant’s full period of service, if the Participant has been performing services for less than 36 months).

 

(ii)                                  “Specified Employee” means an Employee who is a “specified employee” within the meaning of Section 409A and Treas. Reg. § 1.409A-1(i) (or successor provisions) and as determined pursuant to any rules adopted for such purposes by the Company.

 

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(jj)                                “Spin-Off” has the meaning assigned to such term in Section 1.1.

 

10

 

Article 3. Participation

 

3.1          Effective Date of Participation

 

An Employee who was a participant in the OPC SRPII on November 30, 2014 shall continue as a Participant of this Plan on December 1, 2014.

 

3.2          No New Participants After November 30, 2014

 

Notwithstanding any other Plan provision, except for an OPC SRPII participant who continues as a Participant under this Plan, no new Participant shall enter this Plan on or after December 1, 2014.

 

3.3          Allocations to Participants

 

Notwithstanding any other Plan provision and except for earnings, no new allocations relating to the 2015 Plan Year and thereafter shall be made under this Plan.

 

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Article 4. Benefits

 

4.1          Allocations Relating to Annual Additions Limit

 

(a)                                 Eligibility. The Employees who become Participants under Section 3.1 may be eligible for the allocation for the Plan Year specified in subsection (b):

 

(b)           Allocation Amount.

 

(1)                                 An allocation shall be made to the account maintained for each Participant described in subsection (a). The amount of the allocation shall be equal to the difference between (A) and (B), where

 

(A)          is the sum of the following:

 

(i)                                     Participant actual Deferral Contribution

 

(ii)                                  Employer Matching Employer Contribution, and

 

(iii)                               Employer Nonelective Employer Contribution,

 

The amounts calculated under (ii) and (iii) above shall be calculated for the Participant without the limitations provided in section 415 of the Code; and

 

(B)          is 1/12 of  $52,000.

 

(2)                                 Earnings Allocation. The Employer shall also permanently credit earnings on the monthly allocations under paragraph (1) for the Plan Year as if such allocations shared in earnings at the rate and in the manner described in section 4.3.

 

4.2          Allocations Relating to Compensation Limit

 

(a)                                 Eligibility for Allocations Relating to Limits Under Code section 401(a)(17).  An Employee who, on November 30, 2014, would have been eligible to participate in the Savings Plan for the Plan Year and whose Base Pay Paid plus Annual Bonus Paid for the Plan Year exceeds the amount specified in Code section 401(a)(17) as adjusted and in effect for the Plan Year or an Employee whose CRC Compensation for December 2014 exceeds one-twelfth of the amount specified in Code section 401(a)(17) as adjusted and in effect for the Plan Year shall be provided the allocation for the Plan Year specified in subsection (b).

 

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(b)                                 Allocation Amount. The amount to be allocated effective as of the last day of the Plan Year under this Plan with respect to a Participant described in subsection (a) above for the Plan Year shall equal the sum of (1) and (2) below, where

 

(1)           equals 6 percent of the difference between (i) and (ii), where

 

(i)                                     equals the sum of the Employee’s Base Pay Paid plus Annual Bonus Paid and

 

(ii)           equals $260,000.

 

(2)                                 equals 19 percent of the difference between (i) and (ii), where

 

(i)                                     equals CRC Compensation for December 2014 and

 

(ii)                                  equals 1/12 of $260,000.

 

4.3          Maintenance of Accounts

 

(a)                                 As of the Effective Date, the OPC SRPII account balance of a CRC SRPII Participant will be credited to his or her account under this Plan.

 

(b)                                 Each Employer shall establish and maintain, in the name of each Participant employed by that Employer, an individual account which shall consist of all amounts credited to the Participant. As of the end of each month, the Administrative Committee shall increase the balance, if any, of the Participant’s individual account as of the last day of the preceding month, by multiplying such amount by a number equal to one plus .167% plus the monthly yield on 5-Year Treasury Constant Maturities for the monthly processing period.

 

(c)                                  The individual account of each Participant shall represent a liability, payable when due under this Plan, out of the general assets of the Employer, or from the assets of any trust, custodial account or escrow arrangement which the Company may establish for the purpose of assuring availability of funds sufficient to pay benefits under this Plan, provided that  no assets shall be transferred to a trust or other account if such transfer would result in the taxation of benefits prior to distribution under Code section 409A(b). The money and any other assets in any such trust or account shall at all times remain the property of the Employer, and neither this Plan nor any Participant shall have any beneficial ownership interest in the assets thereof. No property or assets of the Employer shall be pledged, encumbered, or otherwise subjected to a lien or security interest for payment of benefits hereunder. Accounting for this Plan shall be based on generally accepted accounting principles.

 

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4.4          Vesting and Forfeiture

 

The OPC SRPII account balance of a CRC SRPII Participant that is credited to his or her account under this Plan shall be fully vested as of the Effective Date.  Each Participant’s account under this Plan shall be fully vested at all times.

 

4.5          No New Allocations relating to Plan Years after December 31, 2014

 

Notwithstanding any other Plan provision and except for earnings, no new allocations relating to the 2015 Plan Year and thereafter shall be made under this Plan.

 

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Article 5. Payments

 

5.1                               Timing and Form of Payments

 

(a)                                 Payment Events.  A Participant’s vested account under this Plan shall be paid on the earliest to occur of the following payment events:

 

(1)                                 The Participant’s attainment of a specified age elected by the Participant that is age 60 or above;

 

(2)                                 The Participant’s Separation from Service; or

 

(3)                                 The Participant’s death.

 

(b)                                 Timing and Form.

 

(1)                                 Attainment of Specified Age.  If payment is made on account of a Participant’s attainment of a specified age (60 or above), payment shall be made to the Participant in a single lump sum within the first 90 days of the calendar year following the calendar year in which the Participant reaches the specified age.  In addition, within the first 70 days of each subsequent calendar year, the Participant shall be paid any additional amounts credited to the Participant’s account since the prior payment date.

 

(2)                                 Separation from Service.

 

(A)                               If payment is made on account of the Participant’s Separation from Service, payment shall be made or commence within the first 90 days of the calendar year following the calendar year in which the Participant’s Separation from Service occurs.  Notwithstanding the foregoing, in the case of a Participant who is a Specified Employee, payment shall be made or commence in the month next following the date that is six (6) months after the date of the Participant’s Separation from Service, if later than the time provided above.

 

(B)                               Payment shall be made in a single lump sum or in annual installments over 5, 10, 15, or 20 years, as elected by the Participant.  If the Participant elects to have payment made in annual installments, the installments shall be paid within the first 90 days of each calendar year during the installment period (except that the first installment may be delayed in the case of a Specified Employee as provided above).  During the installment period, the Participant’s account shall continue to be adjusted as provided in Section 4.3(b) until the installments have been completed.  The amount of each annual installment shall equal the amount credited to the Participant’s account as of the last day of the month preceding the date of payment multiplied by a fraction, the numerator of which is one (1), and the denominator of which is the 

 

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number of installments (including the current installment) which remain to be paid.

 

(C)                               If a Participant who is receiving installment payments on account of his Separation from Service has also made a specified age election and attains the specified age before the completion of all installments, the remaining installments shall be paid to him at the scheduled time or times without regard to his attainment of such age.

 

(3)                                 Death.  If payment is made on account of the Participant’s death, payment shall be made to the Participant’s Beneficiary in a single lump sum 120 days following the date of the Participant’s death.

 

(c)                                  Valuation of Benefits.  The amount of any payment to a Participant under this Article shall be determined based on the value of the Participant’s vested account as of the last day of the month preceding the date of payment.

 

5.2                               Payment Elections and Changes

 

(a)                                 Participants under the OPC SRPII.  The payment election made by the Participant under the OPC SRPII that was in effect immediately prior to the Effective Date shall remain in effect under this Plan.

 

(b)                                 Payment Elections.

 

If a Participant did not elect to have payment made at a specified age, payment shall be made on the earlier of the Participant’s Separation from Service or death in accordance with Section 5.1(b)(2) or (3), as applicable.  If a Participant did not elect an installment payment option for payment on account of a Separation from Service, any payment on account of the Participant’s Separation from Service shall be made in a single lump sum at the time provided in Section 5.1(b)(2).

 

(c)                                  Changes in Time or Form of Payment.  A Participant may elect to change the time or form of payment of his account in accordance with the rules set forth below.  For purposes of these rules, an election to receive distribution in a series of annual installments shall be treated as a single payment.

 

(1)                                 Permitted Changes.

 

(A)                               A Participant who has elected payment at a specified age may elect another specified age that is age 65 or above, subject to the limitations of paragraph (2).

 

(B)                               A Participant may elect to change the form of payment upon Separation from Service.

 

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(2)                                 Requirements.  Any election by a Participant under this subsection shall meet the following requirements:

 

(A)                               The election shall not be effective until at least 12 months after the election is filed with the Administrative Committee;

 

(B)                               The election must defer payment (or payment of the initial installment, if applicable) for a period of at least five years from the date that payment (or payment of the initial installment, if applicable) would otherwise have been made; and

 

(C)                               The election must be made at least 12 months prior to the beginning of the calendar year in which payment (or payment of the initial installment, if applicable) is otherwise scheduled to be made.

 

(3)                                 A Participant may make only two changes pursuant to this Section 5.2(c).  Each such change must satisfy all of the requirements of Section 5.2(c)(2).  No further changes may be made following a Participant’s Separation from Service.

 

(d)                                 Procedures.  All payment elections under this Plan shall be made in accordance with the provisions of this Plan and the rules and procedures established by the Administrative Committee for the time and manner of making elections.

 

5.3                               Death

 

If a Participant dies before the complete distribution of his account, the account or remaining account shall be paid to the Participant’s Beneficiary in a single lump sum 120 days following the date of the Participant’s death.

 

5.4                               Small Benefits

 

Notwithstanding any election by a Participant to receive payment of any account maintained for the Participant under the Plan in an installment payment form, if the value of such account is less than $50,000 at the time payment in such form is scheduled to commence, the account shall be paid to the Participant in a single lump sum on the scheduled commencement date.

 

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5.5                               Qualified Divorce Orders

 

Subject to the policies and procedures established by the Administrative Committee under Section 9.3(b), payment may be made from the balance of a Participant’s vested account to the extent necessary to fulfill a Qualified Divorce Order.

 

5.6                               Tax Withholding

 

(a)                                 To the extent required by law in effect at the time payments are made, the Participant’s Employer shall withhold from payments made hereunder the taxes required to be withheld by Federal, state and local law.

 

(b)                                 The Participant’s Employer shall have the right at its option (1) to require a Participant to pay or provide for payment of the amount of any taxes that the Employer may be required to withhold with respect to amounts credited to the Participant’s account or (2) deduct from any amount of salary, bonus or other payment otherwise payable in cash to the Participant the amount of any taxes that the Employer may be required to withhold with respect to amounts credited to the Participant’s account.  In addition, as permitted by Treas. Reg. § 1.409A-3(j)(4)(vi) (or any successor provision), payments may be made under the Plan to pay any Federal Insurance Contributions Act (FICA) tax imposed under Code sections 3101 and 3121(v)(2) on the Participant’s account, and to pay any income tax imposed under Code section 3401 (i.e., wage withholding) or the corresponding withholding provisions of applicable state or local law as a result of payment of the FICA amount, as well as to pay the additional income tax attributable to the pyramiding wages and taxes.  The total payment may not exceed the aggregate FICA tax amount and the income tax withholding related to such FICA tax amount.

 

5.7                               Reemployment and Continued Distribution of Account

 

If a Participant who is receiving payment on account of his Separation from Service is reemployed by an Employer or Affiliate prior to the complete distribution of his account, the account or remaining account shall be paid to the Participant at the scheduled time or times without regard to the Participant’s reemployment.

 

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Article 6. Administration

 

6.1                               The Administrative Committee

 

The Plan shall be administered by an Administrative Committee.  The Administrative Committee shall be composed of three or more members, who shall be appointed by the Board and shall hold office at the discretion of the Board.  Such members may, but need not, be Employees of the Company.

 

Any member of the Administrative Committee may resign by delivering his written resignation to the Board and to the Administrative Committee Secretary.  Such resignation shall be effective no earlier than the date of the written notice.

 

6.2                               Compensation and Expenses

 

The members of the Administrative Committee who are Employees shall serve without compensation for services as a member.  All expenses of the Administrative Committee shall be paid directly by the Company.  Such expenses may include any expenses incident to the functioning of the Administrative Committee, including, but not limited to, fees of the Plan’s accountants, outside counsel and other specialists and other costs of administering the Plan.

 

6.3                               Manner of Action

 

A majority of the members of the Administrative Committee at the time in office shall constitute a quorum for the transaction of business.  All resolutions adopted and other actions taken by the Administrative Committee at any meeting shall be by the vote of a majority of those present at any such meeting.  The Administrative Committee may take action without a meeting if a majority of the members at the time in office give written consent.

 

6.4                               Chairman, Secretary, and Employment of Specialists

 

The members of the Administrative Committee shall elect one of their number as Chairman and shall elect a Secretary who may, but need not, be a member.  They may authorize one or more of their number or any agent to execute or deliver any instrument or instruments on their behalf, and may employ such counsel, auditors, and other specialists and such other services as they may require in carrying out the provisions of the Plan.

 

6.5                               Subcommittees

 

The Administrative Committee may appoint one or more subcommittees and delegate such of its power and duties as it deems desirable to any such subcommittee, in which case every reference herein made to the Administrative Committee shall be deemed to mean or include the subcommittees as to matters within their jurisdiction.  The members of any such subcommittee shall consist of such officers or other employees of the Company and such other persons as the Administrative Committee may appoint.

 

6.6                               Other Agents

 

The Administrative Committee may also appoint one or more persons or agents to aid it in carrying out its duties as a fiduciary, and delegate such of its powers and duties as it deems desirable to such person or agents.

 

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6.7                               Records

 

All resolutions, proceedings, acts, and determinations of each Committee shall be recorded by the Secretary thereof or under his supervision, and all such records, together with such documents and instruments as may be necessary for the administration of the Plan, shall be preserved in the custody of the Secretary.

 

6.8                               Rules

 

Subject to the limitations contained in the Plan, the Administrative Committee shall be empowered from time to time in its discretion to adopt by-laws and establish rules for the conduct of its affairs and the exercise of the duties imposed upon it under the Plan.

 

6.9                               Powers and Duties

 

The Administrative Committee shall have responsibility for the general administration of the Plan and for carrying out its provisions. The Administrative Committee shall have such powers and duties as may be necessary to discharge its functions hereunder, including, but not limited to, the following:

 

(a)                                 To construe and interpret the Plan, to supply all omissions from, correct deficiencies in and resolve ambiguities in the language of the Plan;

 

(b)                                 To decide all questions of eligibility, to determine the right of any person to an allocation and the amount thereof, and to determine the manner and time of payment of any benefits hereunder, all in accordance with the Plan;

 

(c)                                  To obtain from the Employees such information as shall be necessary for the proper administration of the Plan and, when appropriate, to furnish such information promptly to other persons entitled thereto;

 

(d)                                 To prepare and distribute, in such manner as the Company determines to be appropriate, information explaining the Plan; and

 

(e)                                  To establish and maintain such accounts in the name of each Participant as are necessary.

 

In administering the Plan, the Administrative Committee shall exercise its powers in a manner designed to ensure that the Plan complies with the requirements of Code section 409A, to the extent applicable.

 

6.10                        Decisions Conclusive

 

The Administrative Committee shall exercise its powers hereunder in a uniform and nondiscriminatory manner.  Any and all disputes with respect to the Plan which may arise involving Participants or their Beneficiaries shall be referred to the Administrative Committee and its decision shall be final, conclusive, and binding.  Furthermore, if any question arises as to the meaning, interpretation, or application of any provision hereof, the decision of the Administrative Committee with respect thereto shall be final.

 

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6.11                        Fiduciaries

 

The fiduciaries named in this Article shall have only those specific powers, duties, responsibilities, and obligations as are specifically given them under this Plan.  The Company shall have the sole authority to amend or terminate, in whole or in part, this Plan. The Administrative Committee shall be a fiduciary under the Plan and shall have the sole responsibility for the administration of this Plan.  The officers and Employees of the Company shall have the responsibility of implementing the Plan and carrying out its provisions as the Administrative Committee shall direct.  A fiduciary may rely upon any direction, information, or action of another fiduciary as being proper under this Plan, and is not required under this Plan to inquire into the propriety of any such direction, information, or action.  It is intended under this Plan that each fiduciary shall be responsible for the proper exercise of his own powers, duties, responsibilities, and obligations under this Plan and shall not be responsible for any act or failure to act of another fiduciary.  No fiduciary guarantees in any manner the payment of benefits from this Plan.  Any party may serve in more than one fiduciary capacity with respect to the Plan.

 

6.12                        Notice of Address

 

Each person entitled to benefits from the Plan must file with the Administrative Committee or its agent, in writing, his mailing address and each change of his mailing address. Any communication, statement, or notice addressed to such a person at his latest reported mailing address will be binding upon him for all purposes of the Plan, and neither the Administrative Committee nor the Company shall be obliged to search for or ascertain his whereabouts.

 

6.13                        Data

 

All persons entitled to benefits from the Plan must furnish to the Administrative Committee such documents, evidence, or information, including information concerning marital status, as the Administrative Committee considers necessary or desirable for the purpose of administering the Plan.  It shall be an express condition of the Plan that each such person must furnish such information and sign such documents as the Administrative Committee may require before any benefits become payable from the Plan, provided that payment shall in all cases be made by the time required by Code section 409A.  The Administrative Committee shall be entitled to distribute to a non-spouse Beneficiary in reliance upon the signed statement of the Participant that he is unmarried without any further liability to a spouse if such statement is false.

 

6.14                        Adjustments

 

Subject to the requirements of Code section 409A, the Administrative Committee may adjust benefits under the Plan or make such other adjustments with respect to a Participant or Beneficiary as are required to correct administrative errors or provide uniform treatment in a manner consistent with the intent and purposes of the Plan.

 

6.15                        Member’s Own Participation

 

No member of the Administrative Committee may act, vote or otherwise influence a decision specifically relating to his own participation under the Plan.

 

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6.16                        Indemnification

 

(a)                                 To the extent permitted by the Company’s bylaws or other organizational documents and applicable law, the Company shall indemnify and hold harmless each of the following persons (“Indemnified Persons”) under the terms and conditions of this section:

 

(1)                                 The Administrative Committee and each of its members, which, for purposes of this section, includes any Employee to whom the Administrative Committee has delegated fiduciary or other duties.

 

(2)                                 The Board and each member of the Board and any Employer who has responsibility (whether by delegation from another person, an allocation of responsibilities under the terms of this Plan document, or otherwise) for a fiduciary duty, a nonfiduciary settlor function (such as deciding whether to approve a plan amendment), or a nonfiduciary administrative task relating to the Plan.

 

(b)                                 The Company shall indemnify and hold harmless each Indemnified Person against any and all claims, losses, damages, and expenses, including reasonable attorney’s fees and court costs, incurred by that person on account of his or her good faith actions or failures to act with respect to his or her responsibilities relating to the Plan. The Company’s indemnification shall include payment of any amounts due under a settlement of any lawsuit or investigation, but only if the Company agrees to the settlement.

 

(1)                                 An Indemnified Person shall be indemnified under this section only if he or she notifies an Appropriate Person at the Company of any claim asserted against or any investigation of the Indemnified Person that relates to the Indemnified Person’s responsibilities with respect to the Plan.

 

(A)                               A person is an “Appropriate Person” to receive notice of the claim or investigation if a reasonable person would believe that the person notified would initiate action to protect the interests of the Company in response to the Indemnified Person’s notice.

 

(B)                               The notice may be provided orally or in writing. The notice must be provided to the Appropriate Person promptly after the Indemnified Person becomes aware of the claim or investigation.  No indemnification shall be provided under this section to the extent that the Company is materially prejudiced by the unreasonable delay of the Indemnified Person in notifying an Appropriate Person of the claim or investigation.

 

(2)                                 An Indemnified Person shall be indemnified under this section with respect to attorney’s fees, court costs or other litigation expenses or any settlement of 

 

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such litigation only if the Indemnified Person agrees to permit the Company to select counsel and to conduct the defense of the lawsuit.

 

(3)                                 No Indemnified Person shall be indemnified under this section with respect to any action or failure to act that is judicially determined to constitute or be attributable to the willful misconduct of the Indemnified Person.

 

(4)                                 Payments of any indemnity under this section shall be made only from insurance or other assets of the Company or its Affiliates. The provisions of this section shall not preclude such further indemnities as may be available under insurance purchased by the Company or its Affiliates or as may be provided by the Company or for the benefit of the Indemnified Person under any by-law, agreement or otherwise, provided that no expense shall be indemnified under this section that is otherwise indemnified by the Company or an Affiliate or by an insurance contract purchased by the Company or an Affiliate.

 

(5)                                 Payment of any indemnity under this section that is not exempt from Code section 409A shall comply with Code section 409A’s requirements for reimbursement plans, as set forth in Treas. Reg. § 1.409A-3(i)(1)(iv) (or any successor provision).  For this purpose, (i) the indemnity under this section shall continue for the Indemnified Person’s lifetime, and, if later, until the complete disposition of all covered claims, (ii) the amount of expenses indemnified during one taxable year of an Indemnified Person shall not affect the amount of expenses indemnified in any other taxable year; (iii) payment of an indemnity shall be made by the last day of the Indemnified Person’s taxable year following the taxable year in which the expense was incurred and (iv) the Indemnified Person’s right to indemnification shall not be subject to liquidation or exchange for any other benefit.  If, after payment of any amount to the Indemnified Person pursuant to this provision, it is determined, pursuant to paragraph (3) above or otherwise, that the Indemnified Person is not entitled to indemnification, the Indemnified Person shall promptly repay such amount to the Company.

 

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Article 7. Amendment and Termination

 

7.1                               Amendment and Termination

 

The Company expects the Plan to be permanent, but since future conditions affecting the Company or any Employer cannot be anticipated or foreseen, the Company must necessarily and does hereby reserve the right to amend, modify, or terminate the Plan at any time by action of the Board, except that no amendment shall reduce the dollar amount permanently credited to a Participant’s account.  The Administrative Committee, in its discretion, may amend the Plan if it finds that such amendment does not significantly increase or decrease benefits or costs.  Notwithstanding the foregoing, the Board or the Administrative Committee may amend the Plan to:

 

(a)                                 Ensure that this Plan complies with the requirements of Code section 409A for deferral of taxation on compensation deferred hereunder until the time of distribution; and

 

(b)                                 Add provisions for changes to elections as to time and manner of distributions and other changes that comply with the requirements of Code section 409A for the deferral of taxation on deferred compensation until the time of distribution.

 

7.2                               Payments Upon Termination

 

If the Plan is terminated, distributions to Participants and Beneficiaries shall be made on the dates on which such distributions would be made under the Plan without regard to such termination, except that payments may, in the discretion of the Board, be accelerated if:

 

(a)                                 Accelerated payment is permitted under Treas. Reg. § 1.409A-3(j)(4)(ix) (or any successor provision); or

 

(b)                                 The Plan is terminated because Participants have become subject to tax on their deferrals due to the Plan’s failure to satisfy the requirements of Code section 409A.  Payment to a Participant may not exceed the amount required to be included in income as a result of such failure.

 

7.3                               Reorganization of Employer

 

In the event of a merger or consolidation of an Employer, or the transfer of substantially all of the assets of an Employer to another corporation, such continuing, resulting or transferee corporation shall have the right to continue and carry on the Plan and to assume all liabilities of the Employer hereunder without obtaining the consent of any Participant or Beneficiary.  If such successor shall assume the liabilities of the Employer hereunder, then the Employer shall be relieved of all such liability, and no Participant or Beneficiary shall have the right to assert any claim against the Employer for benefits under or in connection with the Plan.

 

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Article 8. Claims and Appeals Procedures

 

8.1                               Application for Benefits

 

All applications for benefits under the Plan shall be submitted to: CRC Services, LLC, Attention: Administrative Committee, 10889 Wilshire Blvd., Los Angeles, CA 90024.  Applications for benefits must be in writing on the forms prescribed by the Administrative Committee and must be signed by the Participant, Beneficiary, spouse, Alternate Payee, or other person claiming benefits under this Plan (each of which may be “Claimant”).

 

8.2                               Claims Procedure for Benefits

 

(a)                                 If a Claimant believes he is entitled to a benefit, or a benefit different from the one received, then the Claimant may file a claim for the benefit by writing a letter to the Administrative Committee or its authorized delegate.  Any such claim must be made no later than the time prescribed by Treas. Reg. § 1.409A-3(g) (or any successor provision).

 

(b)                                 Within a reasonable period of time, but not later than 90 days after receipt of a claim for benefits, the Administrative Committee or its delegate shall notify the Claimant of any adverse benefit determination on the claim, unless special circumstances require an extension of time for processing the claim. In no event may the extension period exceed 90 days from the end of the initial 90-day period.  If an extension is necessary, the Administrative Committee or its delegate shall provide the Claimant with a written notice to this effect prior to the expiration of the initial 90-day period.  The notice shall describe the special circumstances requiring the extension and the date by which the Administrative Committee or its delegate expects to render a determination on the claim.

 

(c)                                  In the case of an adverse benefit determination, the Administrative Committee or its delegate shall provide to the Claimant written or electronic notification setting forth in a manner calculated to be understood by the claimant:

 

(1)                                 The specific reason or reasons for the adverse benefit determination;

 

(2)                                 Reference to the specific Plan provisions on which the adverse benefit determination is based;

 

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

 

(4)                                 A description of the Plan’s claim review procedures and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse final benefit determination on review and in accordance with section 8.3.

 

25

 

(d)                                 Within 60 days after receipt by the Claimant of notification of the adverse benefit determination, the Claimant or his duly authorized representative, upon written application to the Administrative Committee, may request that the Administrative Committee fully and fairly review the adverse benefit determination.  On review of an adverse benefit determination, upon request and free of charge, the Claimant shall have reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits.  The Claimant shall have the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits.  The Administrative Committee’s (or delegate’s) review shall take into account all comments, documents, records, and other information submitted regardless of whether the information was previously considered in the initial adverse benefit determination.

 

(e)                                  Within a reasonable period of time, but not later than 60 days after receipt of such request for review, the Administrative Committee or its delegate shall notify the Claimant of any final benefit determination on the claim, unless special circumstances require an extension of time for processing the claim.  In no event may the extension period exceed 60 days from the end of the initial 60-day period.  If an extension is necessary, the Administrative Committee or its delegate shall provide the Claimant with a written notice to this effect prior to the expiration of the initial 60-day period. The notice shall describe the special circumstances requiring the extension and the date by which the Administrative Committee or its delegate expects to render a final determination on the request for review.  In the case of an adverse final benefit determination, the Administrative Committee or its delegate shall provide to the claimant written or electronic notification setting forth in a manner calculated to be understood by the Claimant:

 

(1)                                 The specific reason or reasons for the adverse final benefit determination;

 

(2)                                 Reference to the specific Plan provisions on which the adverse final benefit determination is based;

 

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

 

(4)                                 A statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse final benefit determination on review and in accordance with section 8.3.

 

(f)                                   If a Claimant’s claim or appeal is approved, any resulting payment of benefits will be made no later than the time prescribed for payment of benefits by Treas. Reg. § 1.409A-3(g) (or any successor provision).

 

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8.3                               Limitations on Actions

 

All decisions made under the procedure set out in this Article shall be final and there shall be no further right of appeal.  No person may initiate a lawsuit before fully exhausting the claims procedures set out in this Article, including appeal.  To provide for an expeditious resolution of any dispute concerning a claim for benefits that has been denied and to ensure that all evidence pertinent to such claim is available, no lawsuit may be brought contesting a denial of benefits more than the later of:

 

(a)                                 180 days after receiving the written response of the Administrative Committee to an appeal; or

 

(b)                                 365 days after an applicant’s original application for benefits.

 

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Article 9. General Provisions

 

9.1                               Unsecured General Creditor

 

The rights of a Participant, Beneficiary, Alternate Payee or their heirs, successors, and assigns, as relates to any Company or Employer promises hereunder, shall not be secured by any specific assets of the Company or any Employer, nor shall any assets of the Company or any Employer be designated as attributable or allocated to the satisfaction of such promises.

 

9.2                               Trust Fund

 

The Company shall be responsible for the payment of all benefits provided under the Plan.  At its discretion, the Company may establish one or more trusts, with such trustees as the Board or Administrative Committee may approve, for the purpose of providing for the payment of such benefits.  Such trust or trusts may be irrevocable, but the assets thereof shall be subject to the claims of the Company’s creditors.  To the extent any benefits provided under the Plan are actually paid from any such trust, the Company shall have no further obligation with respect thereto, but to the extent not so paid, such benefits shall remain the obligation of, and shall be paid by, the Company.  No assets shall be transferred to a trust if such transfer would result in the taxation of benefits prior to distribution under Code section 409A(b).

 

9.3                               Nonassignability

 

(a)                                 Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, hypothecate or convey in advance of actual receipt the amount, if any, payable hereunder, or any part thereof, or interest therein which are, and all rights to which are, expressly declared to be unassignable and non-transferable.  No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, nor be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency.

 

(b)                                 Notwithstanding subsection (a), the right to benefits payable with respect to a Participant pursuant to a Qualified Divorce Order may be created, assigned, or recognized. The Administrative Committee shall establish appropriate policies and procedures to determine whether a Divorce Order presented to the Administrative Committee constitutes a qualified Divorce Order under this Plan, and to administer distributions pursuant to the terms of Qualified Divorce Orders.  In the event that a Qualified Divorce Order exists with respect to benefits payable under the Plan, such benefits otherwise payable to the Participant specified in the Qualified Divorce Order shall be payable to the Alternate Payee specified in such Qualified Divorce Order.

 

9.4                               Release from Liability to Participant

 

A Participant’s right to receive benefits under the Plan shall be reduced to the extent that any portion of the account maintained for the Participant has been paid or set aside for payment 

 

28

 

to an Alternate Payee pursuant to a Qualified Divorce Order.  The Participant shall be deemed to have released the Employer and the Plan from any claim with respect to such amounts in any case in which: (a) any Employer, the Plan, or any Plan representative has been served with legal process or otherwise joined in a proceeding relating to such amounts; and (b) the Participant fails to obtain an order of the court in the proceeding relieving the Employer and the Plan from the obligation to comply with the judgment, decree or order.

 

9.5                               Employment Not Guaranteed

 

Nothing contained in this Plan nor any action taken hereunder shall be construed as a contract of employment or as giving any Participant any right to be retained in employment with the Company or any Employer.  Accordingly, subject to the terms of any written employment agreement to the contrary, the Company and Employer shall have the right to terminate or change the terms of employment of a Participant at any time and for any reason whatsoever, with or without cause.

 

9.6                               Gender, Singular & Plural

 

All pronouns and any variations thereof shall be deemed to refer to the masculine or feminine as the identity of the person or persons may require.  As the context may require, the singular may be read as the plural and the plural as the singular.

 

9.7                               Captions

 

The captions of the articles, sections, and paragraphs of the Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.

 

9.8                               Validity

 

In the event any provision of this Plan is held invalid, void, or unenforceable, the same shall not affect, in any respect whatsoever, the validity of any other provision of this Plan.

 

9.9                               Notice

 

Any notice or filing required or permitted to be given to the Administrative Committee under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to the principal office of the Company.  Such notice shall be deemed given as to the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

 

9.10                        Applicable Law

 

The Plan shall be governed by and construed in accordance with Code section 409A (or any successor provision), and any regulations promulgated thereunder, to the extent applicable, and in accordance with the laws of the State of California to the extent such laws are not preempted by ERISA.

 

[Signature on the following page.]

 

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IN WITNESS WHEREOF, CRC Services, LLC has caused its duly authorized officer to execute this document this 1st day of December, 2014.

 

 

	
 
    	
CRC SERVICES, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daniel S. Watts
    
	
 
    	
Name:
    	
Daniel S. Watts
    
	
 
    	
Title:
    	
Vice President — Compensation and Benefits
    

 

Signature Page to Supplemental Retirement Plan IIEX-10.1

 Exhibit 10.1 

Execution Version 
 FOURTH
AMENDMENT TO CREDIT AGREEMENT, 
 SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT, 

SECOND AMENDMENT TO GUARANTY AGREEMENT 

AND LIMITED CONSENT 
 This
FOURTH AMENDMENT TO CREDIT AGREEMENT, SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT, SECOND AMENDMENT TO GUARANTY AGREEMENT AND LIMITED CONSENT, dated as of the 28th day of November, 2014 (this “Amendment”), is entered
into among CRAWFORD & COMPANY, a Georgia corporation (“Crawford”), CRAWFORD & COMPANY RISK SERVICES INVESTMENTS LIMITED, a limited company incorporated under the laws of England and Wales with
registered number 02855446 (the “UK Borrower”), CRAWFORD & COMPANY (CANADA) INC., a corporation incorporated under the laws of Canada (the “Canadian Borrower”), CRAWFORD & COMPANY
(AUSTRALIA) PTY. LTD., a proprietary limited organized in Australia (ABN 11 002 317 133) (the “Australian Borrower” and, together with Crawford, the UK Borrower and the Canadian Borrower, the “Borrowers”), the
Subsidiary Guarantors under the hereinafter defined Credit Agreement, the Lenders under the hereinafter defined Credit Agreement party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent under the hereinafter defined
Credit Agreement (the “Administrative Agent”). 
 RECITALS 

A. Reference is made to (i) the Credit Agreement, dated as of December 8, 2011, between the Borrowers, the Lenders party thereto
from time to time and the Administrative Agent (as amended by the First Amendment to Credit Agreement, dated as of July 20, 2012, the Second Amendment to Credit Agreement and First Amendment to Guaranty Agreement, dated as of May 24, 2013
(the “Second Amendment”), and the Third Amendment to Credit Agreement, Amendment to Pledge and Security Agreement and Limited Waiver, dated as of November 25, 2013 (the “Third Amendment”), the “Credit
Agreement”), (ii) the Pledge and Security Agreement, dated as of December 8, 2011, between Crawford, the other Pledgors thereunder and the Administrative Agent (as amended by the Third Amendment, the “Security
Agreement”) and (iii) the Guaranty Agreement, dated as of December 8, 2011, between Crawford, the Subsidiary Guarantors and the Administrative Agent (as amended by the Second Amendment, the “Guaranty”).
Capitalized terms not otherwise defined herein shall have the meaning given to such terms in the Credit Agreement, as amended by this Amendment. 

B. The Borrowers have requested and the Lenders party hereto and the Administrative Agent have agreed, on the terms and subject to the
conditions set forth herein, to amend the Credit Agreement, the Security Agreement and the Guaranty, each as set forth herein. 

 STATEMENT OF AGREEMENT 

NOW, THEREFORE, in consideration of the mutual provisions, covenants and agreements herein contained, the parties hereto hereby agree
as follows: 
 ARTICLE I 

AMENDMENTS TO CREDIT AGREEMENT 

1.1 The definition of “Consolidated EBITDA” in Section 1.1 of the Credit Agreement is hereby amended by replacing clause
(i) of the last sentence of such definition with the following: 
 “(i) with respect to any Permitted
Acquisition, income statement items (whether positive or negative) attributable to the Person or assets acquired shall (to the extent not otherwise included in the income statement of the Consolidated Entities in accordance with GAAP or in
accordance with other provisions of this Agreement) be included in such calculations to the extent relating to the applicable Reference Period (provided that (x) such income statement items attributable to the Skate Entities during each
Reference Period set forth on Schedule 1.1(d) shall result in an addition to Consolidated EBITDA of the Consolidated Entities in an amount equal to the amount set forth thereon across from such Reference Period and (y) such income
statement items attributable to Persons other than the Skate Entities shall be reflected in financial statements or other financial data reasonably acceptable to the Administrative Agent);” 

1.2 The definition of “Disregarded Foreign Subsidiary” in Section 1.1 of the Credit Agreement is hereby amended in its entirety
as follows: 
 ““Disregarded Foreign Subsidiary” means a Foreign Subsidiary (other than Crawford
Financial Services) that is not a “controlled foreign corporation” as such term is defined in Section 957 of the Code and that is not owned, directly or indirectly, by a “controlled foreign corporation.”” 

1.3 The definition of “FATCA” in Section 1.1 of the Credit Agreement is hereby amended in its entirety as follows: 

““FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended
version), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code.” 

1.4 The definition of “Foreign Collateral” in Section 1.1 of the Credit Agreement is hereby amended in its entirety as follows:

 ““Foreign Collateral” means that portion of the Collateral constituting voting Capital Stock issued
by a Foreign Subsidiary Borrower or a Foreign Subsidiary Holding Company.” 
 1.5 The following definitions are hereby added to
Section 1.1 of the Credit Agreement in appropriate alphabetical order: 
 ““Foreign Subsidiary Holding
Company” means (i) Crawford & Company International, Inc., a Georgia corporation, so long as the assets thereof (other than 

  
 2 

 
Capital Stock of one or more Non-Disregarded Foreign Subsidiaries) are not materially greater than the assets thereof on September 30, 2014 (as determined in good faith by the Administrative
Agent and Crawford), and (ii) any other U.S. Subsidiary, so long as substantially all of the assets of such Person consist of Capital Stock of one or more Non-Disregarded Foreign Subsidiaries.” 

““Non-Disregarded Foreign Subsidiary” means any Foreign Subsidiary that is not a Disregarded Foreign
Subsidiary.” 
 ““Skate” means GAB Robins Holdings UK Limited, a private company limited by shares
incorporated under the laws of England and Wales with a registered number 03662363.” 
 ““Skate
Entities” means Skate and its Subsidiaries.” 
 ““UK Trader” means Crawford &
Company Adjusters (UK) Limited, a limited company incorporated under the laws of England and Wales with registered number 02908444.” 

1.6 The definition of “Material U.S. Subsidiary” in Section 1.1 of the Credit Agreement is hereby amended by replacing the
proviso at the end of such definition with the following: 
 “; provided, however, that, notwithstanding
the foregoing, no Subsidiary of any Non-Disregarded Foreign Subsidiary shall constitute or be deemed to constitute a Material U.S. Subsidiary” 

1.7 The definition of “Sanctioned Country” in Section 1.1 of the Credit Agreement is hereby amended in its entirety as follows:

 ““Sanctioned Country” means (i) a country or territory that is, or whose government is, the
subject or target of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s
Treasury or any other relevant governmental sanctions authority that has jurisdiction over Crawford or any Consolidated Entity, or (ii) a country subject to a sanctions program identified in the regulations promulgated under the United Nations
Act (Canada), the Special Economic Measures Act (Canada) or the Export and Import Permits Act (Canada).” 
 1.8 The definition of
“Sanctioned Person” in Section 1.1 of the Credit Agreement is hereby amended in its entirety as follows: 

““Sanctioned Person” means (i) a Person that is, or is owned or controlled by Persons that are, the
subject or target of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control , the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s
Treasury, or any other relevant governmental sanctions 

  
 3 

 
authority that has jurisdiction over Crawford or any Consolidated Entity; or (ii) (A) an agency of the government of a Sanctioned Country, (B) an organization controlled by a
Sanctioned Country or (C) a Person resident in a Sanctioned Country, to the extent subject to a sanctions program referred to in the definition of “Sanctioned Country.”” 

1.9 Section 1.6 of the Credit Agreement is hereby amended by adding as a new sentence at the end of such section the following: 

“Notwithstanding anything to the contrary herein, if any determination of any rate described in the definitions of
“Federal Funds Effective Rate” or “LIBOR Rate” would result in a rate less than zero, then such rate shall be deemed to be zero.” 

1.10 Section 2.12(g) of the Credit Agreement is hereby amended by replacing the proviso of the first sentence thereof with the following:

 “; provided, however, that if, prior to the commencement of any rights or remedies with respect to the
voting Capital Stock issued by any Foreign Subsidiary or Foreign Subsidiary Holding Company constituting Foreign Collateral, the Administrative Agent and any applicable Security Trustee shall have released their respective Liens on a sufficient
amount of voting Capital Stock of such Foreign Subsidiary or such Foreign Subsidiary Holding Company, as applicable, so that, at the time of the initial exercise of any right or remedy against the voting Capital Stock of such Foreign Subsidiary or
such Foreign Subsidiary Holding Company, as applicable, and after giving effect thereto, neither the Administrative Agent nor any Security Trustee shall have a Lien on more than 65% of the voting Capital Stock issued by such Foreign Subsidiary or
such Foreign Subsidiary Holding Company, as applicable, then the Administrative Agent or applicable Security Trustee may apply such proceeds of such voting Capital Stock to U.S. Obligations in accordance with Section 2.12(e)” 

1.11 The first sentence of Section 2.17(d) of the Credit Agreement is hereby amended by replacing the phrase “Each Borrower shall,
jointly and severally,” with the phrase “Subject to Sections 11.13 and 11.14, each Borrower shall”. 

1.12 Section 2.17 of the Credit Agreement is hereby further amended by inserting the phrase “or W-8BEN-E, as applicable (or
successor form),” after each instance of the phrase “IRS Form W-8BEN”. 
 1.13 Section 2.17 of the Credit Agreement is
hereby further amended by adding as a new Section 2.17(m) the following: 
 “(m) Solely for purposes of determining
withholding Taxes imposed under FATCA, from and after November 28, 2014, the Borrowers and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Credit Agreement as not qualifying as a
“grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).” 

  
 4 

 1.14 Section 5.23(a) of the Credit Agreement is hereby amended by replacing the last
sentence thereof with the following: 
 “No part of the proceeds of any Loan or Letter of Credit hereunder will be used
directly or indirectly (i) to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person or a Sanctioned Country or (ii) in any other manner that would result in a violation by any Person
party hereto or any Affiliate thereof of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control, the U.S. Department of State, the United Nations Security Council, the European Union,
Her Majesty’s Treasury or any other relevant governmental sanctions authority that has jurisdiction over Crawford or any Consolidated Entity.” 

1.15 Section 6.9(a)(ii) of the Credit Agreement is hereby amended in its entirety as follows: 

“(ii) Crawford will, or will cause its Subsidiary that directly owns the Capital Stock of such new Material U.S.
Subsidiary to, execute and deliver to the Administrative Agent an amendment or supplement to the Security Agreement pursuant to which all of the Capital Stock of such new Material U.S. Subsidiary (or, with respect to a Material U.S. Subsidiary that
is a Disregarded Foreign Subsidiary, only 65% of its Capital Stock) shall be pledged to the Administrative Agent, together with the certificates evidencing such Capital Stock and undated stock powers duly executed in blank (to the extent delivery
thereof does not require any action in any non-U.S. jurisdiction or require the replacement and reissuance of such certificates with one or more certificates);” 

1.16 Section 6.9(d) of the Credit Agreement is hereby amended by replacing the phrase “(each a “Specified
Person”)” with the phrase “(each such Person, other than any Subsidiary of any Non-Disregarded Foreign Subsidiary, a “Specified Person”)”. 

1.17 Section 8.3(xv) of the Credit Agreement is hereby amended in its entirety as follows: 

“(xv) Liens on any cash earnest money deposits or cash escrow deposits made by any of the Credit Parties or any of their
Subsidiaries in connection with any letter of intent or purchase agreement with respect to an Acquisition permitted by this Agreement” 

1.18 Section 8.3(xvi) of the Credit Agreement is hereby amended in its entirety as follows: 

“(xvi) (x) Liens securing Indebtedness permitted under Section 8.2(x) (provided that any such Lien
(A) was in existence at the time that the assets subject thereto were acquired (or the Subsidiary that owns the assets became a 

  
 5 

 
Subsidiary), (B) was not incurred in connection with, or in contemplation of, the acquisition of such assets or such Person becoming a Subsidiary and (C) shall not encumber any other
assets of any other Consolidated Entity); and (y) Liens on assets existing at the time such assets were acquired by a Consolidated Entity (or at the time the Person that owns such assets became a Consolidated Entity) securing obligations, not
constituting Indebtedness, existing at the time such assets were acquired by such Consolidated Entity (or at the time the Person that owns such assets became a Consolidated Entity) and any renewals, replacements, refinancings or extensions thereof
(provided that (A) any such Lien and such obligation were not incurred in connection with, or in contemplation of, the acquisition of such assets or such Person becoming a Consolidated Entity, (B) any such Lien shall not encumber
any other assets of any other Consolidated Entity and (C) no other Consolidated Entity (other than such Person or any other Person that such Person merges with or that acquires the assets of such Person) shall have any liability or obligation
with respect to such obligation); and” 
 1.19 Section 8.4 of the Credit Agreement is hereby amended by (i) deleting
“and” from the end of Section 8.4(v), (ii) replacing the period at the end of Section 8.4(vi) with “; and” and (iii) inserting as Section 8.4(vii) the following: 

“(vii) the sale or other disposition of Intellectual Property of the Skate Entities pursuant to and in accordance with a
purchase right of, or a sale obligation owed to, a third party, whether such right or obligation is triggered by a change of control or otherwise; provided that (A) such Intellectual Property was the subject of such purchase right or
sale obligation at the time the Skate Entities became Consolidated Entities or was triggered by the Skate Entities becoming Consolidated Entities and (B) such purchase right or sale obligation was not specifically granted or specifically agreed
to in connection with or in anticipation of the acquisition of the Skate Entities by any Consolidated Entity.” 
 1.20 Section 8.5
of the Credit Agreement is hereby amended by (i) deleting “and” from the end of Section 8.5(xxi), (ii) replacing the period at the end of Section 8.5(xxii) with “; and” and (iii) inserting as
Section 8.5(xxiii) the following: 
 “(xxiii) Guaranty Obligations of Crawford with respect to an obligation of the
UK Trader to establish an escrow fund in connection with the acquisition of the Skate Entities; provided that the aggregate amount of such Guaranty Obligations does not exceed £4,300,000 and such Guaranty Obligations are terminated no
later than 60 days after the acquisition of the Skate Entities.” 
 1.21 Section 8.6(a) of the Credit Agreement is hereby amended
by (i) deleting “and” from the end of Section 8.6(a)(iv), (ii) replacing the period at the end of Section 8.6(a)(v) with “; and” and (iii) inserting as Section 8.6(a)(vi) the following: 

“(vi) dividend payments or other distributions by any Consolidated Entity (other than Crawford) that is not, directly or
indirectly, wholly-owned by Crawford to the holders of the Capital Stock issued by such Consolidated Entity, pro rata in accordance with the Capital Stock held by such holders at such time.” 

  
 6 

 1.22 Section 11.1(b) of the Credit Agreement is hereby amended by replacing the phrase
“The Credit Parties shall indemnify” with the phrase “Subject to Sections 11.13 and 11.14, the Credit Parties shall indemnify”. 

1.23 Section 11.6(e) of the Credit Agreement is hereby amended by adding “(subject to the requirements and limitations therein,
including the requirements under Section 2.17(g); it being understood that the documentation required under Section 2.17(g) shall be delivered to the participating Lender)” immediately after the phrase
“Sections 2.16(a), 2.16(b), 2.17 and 2.18”. 
 1.24 Section 11.14(i) of the Credit Agreement
is hereby amended by deleting the phrase “Consolidated Entity to such Borrower, and any intercompany receivables,” in the first sentence thereof and replacing it with the phrase “Credit Party to such Borrower, including any
intercompany receivables,”. 
 1.25 A new Schedule 1.1(d) (Consolidated EBITDA Attributable to the Skate Entities) is hereby added
to the Credit Agreement as attached hereto as Exhibit A. 
 ARTICLE II 

AMENDMENT TO SECURITY AGREEMENT 

2.1 Section 2.1(xviii) of the Security Agreement is hereby amended in its entirety as follows: 

“(xviii) all Pledged Interests; provided, however, that, (A) the Pledged Interests of any Pledgor in a Foreign
Subsidiary (excluding any Foreign Subsidiary Borrower but including any Disregarded Foreign Subsidiary that is not a Foreign Subsidiary Borrower) shall not exceed 65% of all voting Capital Stock of such Foreign Subsidiary, and (B) with respect
to any Foreign Subsidiary Borrower or any Foreign Subsidiary Holding Company, only 65% of the Pledged Interests issued thereby shall secure the U.S. Obligations (but nothing in this clause (xviii) limits the Pledged Interests issued by Foreign
Subsidiary Borrowers or Foreign Subsidiary Holding Companies that secure the Foreign Subsidiary Obligations);” 
 2.2 Section 3.3
of the Security Agreement is hereby amended in its entirety as follows: 
 “3.3 Locations. Annex B lists, as to each
Pledgor, (i) its exact legal name, (ii) the jurisdiction of its incorporation or organization, its federal tax identification number, and (if applicable) its organizational identification number and (iii) the addresses of its chief
executive office, which is the location of all material original invoices, ledgers, Chattel Paper, Instruments and other records or information evidencing or relating to the Collateral of such Pledgor, in each instance except for any changes thereto
made in accordance with the provisions of Section 4.2. Except as may be otherwise noted therein, all locations identified in Annex B are either leased or owned by the applicable Pledgor. As of the Closing

  
 7 

 
Date, no Pledgor (x) presently conducts business under any prior or other corporate or company name or under any trade or fictitious names, except as indicated beneath its name on
Annex B, (y) has entered into any contract or granted any Lien within the past five years under any name other than its legal corporate name or a trade or fictitious name indicated on Annex B, or (z) has filed any
tax return under any name other than its exact legal name, except as indicated beneath its name on Annex B.” 
 ARTICLE
III 
 AMENDMENT TO GUARANTY 

3.1 Section 4 of the Guaranty is hereby amended by deleting “Consolidated Entity” in the second sentence thereof and replacing
it with “Credit Party”. 
 ARTICLE IV 

LIMITED CONSENT 
 4.1 The
Required Lenders hereby consent to a one-time Investment by the UK Borrower in the UK Trader in an amount not to exceed £50.0 million; provided that the proceeds thereof are used to purchase 100% of the Capital Stock of Skate and,
substantially contemporaneously with such purchase, to repay certain debt or other obligations of the Skate Entities and to pay for fees and expenses in connection therewith, in each case, pursuant to a Permitted Acquisition that closes no later
than December 31, 2014 (such Investment, the “Permitted Investment”). For clarity, (i) this consent is limited to the Permitted Investment, and Crawford and its Subsidiaries shall be required to comply with the terms and
conditions set forth in the Credit Documents in respect of the Acquisition of the Skate Entities (provided that if such Acquisition is consummated prior to December 31, 2014, then the financial statements of the Skate Entities as of and
for the period ending September 30, 2014, may be used for the purpose of determining the Leverage Ratio in accordance with clause (iv) of the definition of “Permitted Acquisition” in Section 1.1 of the Credit Agreement), and
(ii) the Permitted Investment shall not be deemed to be made pursuant to Section 8.5 of the Credit Agreement for the purpose of calculating the Available Additional Basket. 

4.2 The Required Lenders hereby consent to the existence of purchase money Indebtedness (including Capital Lease Obligations) of the Skate
Entities existing at the time the Skate Entities become Consolidated Entities (and any renewals, refinancings or extensions thereof) to the extent that (i) such Indebtedness was not incurred in connection with, or in contemplation of, any of
the Skate Entities becoming a Subsidiary, (ii) no other Consolidated Entity (other than the Skate Entities) shall have any liability or obligation with respect to such Indebtedness and (iii) the aggregate principal amount thereof does not
exceed $3,000,000. 

  
 8 

 ARTICLE V 

CONDITIONS OF EFFECTIVENESS 

5.1 The amendments set forth in Article I, II and III and the limited consent set forth in Article IV
shall become effective as of the date (the “Effective Date”) when, and only when, each of the following conditions precedent shall have been satisfied: 

(a) The Administrative Agent shall have received an executed counterpart hereof from each of the Credit Parties and the Lenders party hereto
(which Lenders shall constitute the Required Lenders). 
 (b) Crawford shall have paid (or shall have made arrangements satisfactory to the
Administrative Agent to pay) all fees set forth in the letter agreement executed by the Administrative Agent or any Affiliate thereof and Crawford in connection with this Amendment and all reasonable expenses of the Administrative Agent and its
Affiliates required under Section 11.1 of the Credit Agreement invoiced on or prior to the Effective Date (including reasonable fees and expenses of counsel) in connection with this Amendment, the other Credit Documents and the transactions
contemplated hereby. 
 (c) Each of Crawford and the Administrative Agent shall have received from each Foreign Lender a duly completed and
executed 2014 version of any applicable IRS Form W-8 described in Section 2.17(g) of the Credit Agreement (as amended by this Amendment). 

ARTICLE VI 

REPRESENTATIONS AND WARRANTIES 

Each Credit Party represents and warrants to the Administrative Agent and the Lenders that (i) each of the representations and warranties
of such Credit Party contained in the Credit Agreement and in the other Credit Documents qualified as to materiality is true and correct and each not so qualified is true and correct in all material respects on and as of the date hereof, both
immediately before and after giving effect to this Amendment (except to the extent any such representation or warranty is expressly stated to have been made as of a specific date, in which case such representation or warranty shall be true and
correct as of such date); (ii) this Agreement has been duly authorized, executed and delivered by each Credit Party and constitutes the legal, valid and binding obligation of such Credit Party, enforceable against its in accordance with its
terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally, by general equitable principles or by principles of good faith and fair dealing
(regardless of whether enforcement is sought in equity or at law); and (iii) no Default or Event of Default shall have occurred and be continuing on the date hereof, both immediately before and immediately after giving effect to this Amendment.

 ARTICLE VII 

ACKNOWLEDGEMENT AND CONFIRMATION 

Each Credit Party hereby confirms and agrees that, after giving effect to this Amendment, the Credit Agreement and the other Credit Documents
remain in full force and effect and enforceable against such Credit Party in accordance with their respective terms and shall not be 

  
 9 

 
discharged, diminished, limited or otherwise affected in any respect (other than as expressly amended hereby), and represents and warrants to the Administrative Agent and the Lenders that it has
no knowledge of any claims, counterclaims, offsets or defenses to or with respect to its obligations under the Credit Documents, or if such Credit Party has any such claims, counterclaims, offsets, or defenses to the Credit Documents or any
transaction related to the Credit Documents, the same are hereby waived, relinquished, and released in consideration of the execution of this Amendment. This acknowledgement and confirmation by the Credit Parties is made and delivered to induce the
Administrative Agent and the Lenders to enter into this Amendment, and each Credit Party acknowledges that the Administrative Agent and the Lenders would not enter into this Amendment in the absence of the acknowledgement and confirmation contained
herein. 
 ARTICLE VIII 

MISCELLANEOUS 
 8.1
Governing Law. This Amendment shall be governed by, and construed in accordance with, the law of the State of New York. 
 8.2
Full Force and Effect. Except as expressly amended hereby, the Credit Agreement and the other Credit Documents, including the Security Documents and the Guaranty, shall continue in full force and effect in accordance with the provisions
thereof on the date hereof, and each Credit Party ratifies and reaffirms the grant of security interests and liens granted and ratifies and reaffirms the guarantee of obligations (including in relation to the Credit Agreement as amended hereby) by
such Credit Party in favor of the Administrative Agent for the benefit of the Lenders. As used in the Credit Agreement or any other Credit Document, “hereinafter,” “hereto,” “hereof,” and words of similar import shall,
unless the context otherwise requires, mean the Credit Agreement or such other Credit Document after giving effect to this Amendment. Any reference to the Credit Agreement or any of the other Credit Documents herein or in any other Credit Documents
shall refer to the Credit Agreement and Credit Documents as amended hereby. This Amendment is limited as specified and shall not constitute or be deemed to constitute an amendment, modification or waiver of any provision of the Credit Agreement, the
Credit Agreement or any other Credit Document except as expressly set forth herein. This Amendment shall constitute a Credit Document under the terms of the Credit Agreement. 

8.3 Expenses. Crawford agrees on demand (i) to pay the reasonable fees and expenses of counsel for the Administrative Agent and
(ii) to reimburse the Administrative Agent for all reasonable documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, in each case, in connection with the preparation, negotiation, execution and delivery of
this Amendment. 
 8.4 Severability. To the extent any provision of this Amendment is prohibited by or invalid under the applicable
law of any jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity and only in any such jurisdiction, without prohibiting or invalidating such provision in any other jurisdiction or the remaining
provisions of this Amendment in any jurisdiction. 

  
 10 

 8.5 Successors and Assigns. This Amendment shall be binding upon, inure to the benefit of
and be enforceable by the respective successors and permitted assigns of the parties hereto. 
 8.6 Construction. The headings of the
various sections and subsections of this Amendment have been inserted for convenience only and shall not in any way affect the meaning or construction of any of the provisions hereof. 

8.7 Counterparts; Integration. This Amendment may be executed in any number of counterparts and by different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or in
electronic format (e.g., “pdf” or “tif” file format) shall be effective as delivery of a manually executed counterpart of this Amendment. This Amendment constitutes the entire contract among the parties hereto with respect to the
subject matter hereof and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof. 

[remainder of page intentionally left blank] 

  
 11 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
duly authorized officers as of the date first above written. 
  

			
	CRAWFORD & COMPANY
		
	By:	 	/s/ Joseph R. Caporaso
	Name:	 	Joseph R. Caporaso
	Title:	 	SVP & Treasurer
	
	CRAWFORD & COMPANY RISK SERVICES INVESTMENTS LIMITED
		
	By:	 	/s/ Stephen Pearsall
	Name:	 	Stephen Pearsall
	Title:	 	Director
	
	CRAWFORD & COMPANY (CANADA) INC.
		
	By:	 	/s/ Joseph R. Caporaso
	Name:	 	Joseph R. Caporaso
	Title:	 	Treasurer
	
	EXECUTED by CRAWFORD & COMPANY (AUSTRALIA) PTY. LTD. in accordance with section 127(1) of the Corporations Act 2001 (Cwlth) by authority of its directors:
		
	By:	 	/s/ Andrew J. Bart
	Name:	 	Andrew John Bart
	Title:	 	Director
		
	By:	 	/s/ Ian Muress
	Name:	 	Ian Muress
	Title:	 	Director

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

			
	CRAWFORD & COMPANY INTERNATIONAL, INC.
		
	By:	 	/s/ Joseph R. Caporaso
	Name:	 	Joseph R. Caporaso
	Title:	 	VP & Treasurer
	
	CRAWFORD & COMPANY EMEA / A-P HOLDINGS LIMITED
		
	By:	 	/s/ Ian Muress
	Name:	 	Ian Muress
	Title:	 	Director
	
	CRAWFORD & COMPANY ADJUSTERS LIMITED
		
	By:	 	/s/ Ian Muress
	Name:	 	Ian Muress
	Title:	 	Director
	
	THE GARDEN CITY GROUP, INC.
		
	By:	 	/s/ Joseph R. Caporaso
	Name:	 	Joseph R. Caporaso
	Title:	 	Treasurer
	
	CRAWFORD LEASING SERVICES, INC.
		
	By:	 	/s/ Joseph R. Caporaso
	Name:	 	Joseph R. Caporaso
	Title:	 	SVP & Treasurer

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

			
	RISK SCIENCES GROUP, INC.
		
	By:	 	/s/ Joseph R. Caporaso
	Name:	 	Joseph R. Caporaso
	Title:	 	SVP & Treasurer
	
	BROADSPIRE SERVICES, INC.
		
	By:	 	/s/ Joseph R. Caporaso
	Name:	 	Joseph R. Caporaso
	Title:	 	Treasurer
	
	BROADSPIRE INSURANCE SERVICES, INC.
		
	By:	 	/s/ Joseph R. Caporaso
	Name:	 	Joseph R. Caporaso
	Title:	 	SVP & Treasurer
	
	SETTLEMENT SERVICES, INC.
		
	By:	 	/s/ Joseph R. Caporaso
	Name:	 	Joseph R. Caporaso
	Title:	 	Treasurer

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, UK Security Trustee, Australian Security Trustee, an Issuing Bank and a Lender
		
	By:	 	 /s/ Lex Mayers

	Name:	 	 Lex Mayers

	Title:	 	 SVP

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

			
	BANK OF AMERICA, N.A., as Syndication Agent and a Lender
		
	By:	 	 /s/ Andrew Rossman

	Name:	 	 Andrew Rossman

	Title:	 	 Vice President

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

			
	RBS CITIZENS, N.A., as Documentation Agent and a Lender
		
	By:	 	 /s/ Michael Makaitis

	Name:	 	 Michael Makaitis

	Title:	 	 Vice President

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

			
	FIFTH THIRD BANK, an Ohio banking corporation, as a Lender
		
	By:	 	 /s/ Dan Komitor

	Name:	 	 Dan Komitor

	Title:	 	 Senior Relationship Manager

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

			
	FIFTH THIRD BANK, operating through its Canadian Branch
		
	By:	 	 /s/ Mauro Spagnolo

	Name:	 	 Mauro Spagnolo

	Title:	 	Managing Director & Principal Officer

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

 
			
	HSBC BANK USA, NA, as an Issuing Bank and a Lender
		
	By:	 	 /s/ Chris Burns

	Name:	 	 Chris Burns

	Title:	 	 Vice President

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

 
			
	THE NORTHERN TRUST COMPANY, as a Lender
		
	By:	 	 /s/ K. S. Reuther

	Name:	 	 Kathryn Schad Reuther

	Title:	 	 SVP

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

 
			
	ROYAL BANK OF CANADA, as a Lender
		
	By:	 	 /s/ Michael Wang

	Name:	 	 Michael Wang

	Title:	 	 Vice President

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

 
			
	SUNTRUST BANK, as a Lender
		
	By:	 	 /s/ Paula Mueller

	Name:	 	 Paula Mueller

	Title:	 	 Director

  
 SIGNATURE PAGE TO 

FOURTH AMENDMENT TO CREDIT AGREEMENT 

 Exhibit A 

Schedule 1.1(d) to the Credit Agreement 

CONSOLIDATED EBITDA OF THE SKATE ENTITIES 
  

					
	 For the Reference Period Ending
	  	Consolidated EBITDA	 
	 December 31, 2014
	  	$	8,738,000	  
	 March 31, 2015
	  	$	7,558,000	  
	 June 30, 2015
	  	$	3,720,000	  
	 September 30, 2015
	  	$	2,215,000	  
	 December 31, 2015
	  	$	592,000

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