Document:

exv4w1

 

Exhibit 4.1

AMENDMENT NO. 2 TO THE RIGHTS AGREEMENT

     THIS AMENDMENT NO. 2 TO THE RIGHTS AGREEMENT, dated as of September 13,
2004, is entered into between Zimmer Holdings, Inc., a Delaware corporation
(the “COMPANY”), and Mellon Investor Services LLC, a New Jersey limited
liability company, as Rights Agent (the “RIGHTS AGENT”).

W I T N E S S E T H:

     WHEREAS, the Company and the Rights Agent entered into a Rights Agreement
(the “RIGHTS AGREEMENT”), dated as of July 30, 2001, as amended on June 15,
2002; and

     WHEREAS, the Company, by resolution adopted by its Board of Directors, has
determined that it is desirable and in the best interests of the Company and
its stockholders to amend the Rights Agreement as set forth herein.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
set forth herein, the parties hereby agree as follows:

     1. SECTION 7(a) of the Rights Agreement is hereby amended to substitute
the following in place of clause (i) in its entirety:

”(i) at the Close of Business on September 16, 2004 (the Close of
Business on such date being the “EXPIRATION DATE”),”

     2. The Rights Agreement shall not otherwise be supplemented or amended by
virtue of this Amendment No. 2 to the Rights Agreement, but shall remain in
full force and effect.

     3. Capitalized terms used without definition in this Amendment No. 2 to
the Rights Agreement shall be used as defined in the Rights Agreement.

     4. This Amendment No. 2 to the Rights Agreement shall be deemed to be a
contract made under the laws of the State of Delaware and for all purposes
shall be governed by and construed in accordance with the laws of such State
applicable to contracts to be made and performed entirely within such State;
provided, however, that all provisions regarding the rights, duties and
obligations of the Rights Agent shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed entirely within such State.

     5. This Amendment No. 2 to the Rights Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

 

 

     6. All references to the Rights Agreement shall, from and after the
execution of this Amendment No. 2 to the Rights Agreement, be deemed to be
references to the Rights Agreement as amended hereby.

     7. Exhibits B and C to the Rights Agreement shall be deemed amended in a
manner consistent with this Amendment No. 2 to the Rights Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to
the Rights Agreement to be duly executed as of the date written above.

	 	 	 	 	 
	 	ZIMMER HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	J. Raymond Elliott 	 
	 	 	Title:  	Chairman, President & CEO 	 
	 

	 	 	 	 	 
	 
	 	MELLON INVESTOR SERVICES LLC

 	 
	 	By:  	 	 
	 	 	Name:  	James S. McNellage 	 
	 	 	Title:  	Asst. Vice President 	 
	 

2exv10w1

 

Exhibit 10.1

WMS INDUSTRIES INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN

Effective December 1, 2003

 

 

ARTICLE I

INTRODUCTION

     1.1      Name and Purpose. WMS Industries Inc. (the “Company”) hereby
establishes the WMS Industries Inc. Nonqualified Deferred Compensation Plan, as
set forth herein (the “Plan”), for the benefit of Eligible Individuals. The
purpose of the Plan is to provide Eligible Individuals with the opportunity to
defer compensation on a pre-tax basis and to receive Company contributions.
The Plan is not intended to be “qualified” under section 401(a) of the Code;
rather, the Plan is intended to be a deferred compensation plan for
non-employee directors and a select group of management and highly compensated
employees, as described in Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.
The Company intends that the Plan (and any grantor trust described in Article
VI) shall be treated as unfunded for tax purposes and for purposes of Title I
of ERISA. An Employer’s obligations hereunder, if any, to a Participant (or to
a Participant’s Beneficiary) shall be unsecured and shall be a mere promise by
the Company to make payments hereunder in the future. A Participant (or the
Participant’s Beneficiary) shall be treated as a general, unsecured creditor of
the Company.

     1.2     
Effective Date and Plan Year. The Effective Date of the Plan is
December 1, 2003. The Plan will be administered on the basis of a Plan Year.
The first Plan Year begins on December 1, 2003 and ends on December 31, 2003.
All subsequent Plan Years will be the 12-month period beginning on each January
1 and ending on each December 31.

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ARTICLE II

DEFINITIONS

     2.1      “Accounting Date” means each date that the New York Stock Exchange is
open for business.

     2.2      “Beneficiary” means any person, entity, or any combination thereof the
Participant names in a Participation Agreement as his or her beneficiary to
receive benefits under this Plan in the event of the Participant’s death, or in
the absence of any such designation, the Participant’s estate. A Participant
may amend his or her Participation Agreement to name a new Beneficiary at any
time.

     2.3      “Board” means the Board of Directors of the Company.

     2.4      “Cause” means that the Participant has engaged in an act of willful
misconduct, gross negligence, fraud or moral turpitude, as determined by the
Company in its sole discretion.

     2.5      “Change in Control” means the occurrence of any of the following
events: (i) during any period of two consecutive years, individuals who at the
beginning of such period constitute the entire Board shall cease for any reason
to constitute a majority thereof unless the election, or nomination for
election by the Company’s stockholders, of each new director was approved by a
vote of at least two-thirds of the directors then still in office who were
directors at the beginning of such period; (ii) the shareholders of the Company
approve any liquidation of the Company or any sale or disposition of 50% or
more of the assets of the Company; or (iii) the shareholders of the Company
approve any merger or consolidation to which the Company is a party (other than
a merger with a wholly-owned subsidiary of the Company) as a result of which
the persons who were shareholders of the Company immediately prior to the
effective date of the merger or consolidation shall have beneficial ownership
of less than 50% of the combined voting power for election of directors of the
surviving corporation following the effective date of such merger or
consolidation.

     2.6      “Code” means the Internal Revenue Code of 1986, as amended.

     2.7      “Committee” means the Committee appointed by the Board to administer
the Plan pursuant to Article VIII.

     2.8      “Company” means WMS Industries Inc., a Delaware corporation, and its
successors.

     2.9
     “Company Contributions” means the matching and/or profit sharing
contributions made by the Company on behalf of a Participant pursuant to
Article V.

     2.10      “Compensation” means the total cash compensation paid to a
Participant for services rendered to an Employer as an employee (as reported on
Form W-2) or as a Director (as

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reported on Form 1099) for a Plan Year, with any exclusions or inclusions
that the Committee may determine in its discretion.

     2.11      “Deferral Account” means the account maintained by the Committee to
record a Participants’ accrued benefit under the Plan.

     2.12      “Director” means a non-employee member of the Company’s Board.

     2.13      “Disability” means that a Participant has been determined to be
“disabled” under the Company’s long-term disability plan maintained for
employees generally; provided, however, that if there is no such plan at the
time, the Participant shall be considered “disabled” if he or she is entitled
to collect disability benefits from the Social Security Administration.

     2.14      “Earnings” means the amount of earnings or losses credited or debited
to each Participant’s Deferral Account pursuant to Section 4.3 of the Plan.

     2.15      “Effective Date” means December 1, 2003.

     2.16      “Eligible Individual” means an Employee or a Director who has been
selected to participate in the Plan in accordance with Section 3.1.

     2.17      “Employee” means a management or highly compensated employee of an
Employer who is scheduled to receive Compensation of at least $200,000 during a
Plan Year (assuming targeted bonuses are earned).

     2.18      “Employer” means the Company and any subsidiary or affiliate of that
Company that, with the consent of the Company, adopts the Plan for the benefit
of its Eligible Employees.

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

     2.20      “Participant” means an Eligible Individual who has executed a
Participation Agreement.

     2.21      “Participation Agreement” means the agreement executed by an Eligible
Individual that includes provisions for the Eligible Individual’s election to
defer, the Eligible Individual’s Beneficiary designation, and the Eligible
Individual’s investment designation.

     2.22      “Plan Year” means the calendar year.

     2.23      “Qualified Plan” means the WMS Industries Inc. 401(k) Retirement
Savings Plan for Non-Union Employees, or its successor.

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ARTICLE III

ELIGIBILITY AND PARTICIPATION

     3.1      Eligibility. Before the beginning of each Plan Year, the Committee
will designate the Directors and Employees who are eligible to participate in
the Plan during such Plan Year. An Eligible Individual’s eligibility to make a
deferral to the Plan in any given Plan Year does not guarantee that individual
the right to make a deferral in any subsequent Plan Year.

     3.2      Participation and Cessation of Participation. An Eligible Individual
for any Plan Year may make a deferral election on a timely basis as described
in Section 4.1, and if the Eligible Individual makes such a deferral election,
he or she shall become a Participant and shall remain a Participant until he or
she has received a distribution of his or her entire Deferral Account. A
Participant in the Plan who separates from service with the Company and all of
its subsidiaries and affiliates for any reason will cease to be eligible to
defer Compensation under this Plan and will become entitled to distributions in
accordance with Article VII.

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ARTICLE IV

ENROLLMENT AND DEFERRAL ELECTIONS

     4.1     
Participant Elections to Defer. Each Eligible Individual who intends
to make an election to defer shall indicate on a Participation Agreement that
portion of his or her Compensation (if any) that shall be deferred hereunder,
in accordance with the following:

(a)      Limits Established By Committee: All deferrals under the Plan
shall be subject to limits established from time to time by the
Committee in its discretion, including (but not limited to): (i)
limitations on the amounts permitted to be deferred; (ii)
limitations on the sources and timing and form of deferrals for all
or particular Participants; and (iii) other terms and conditions
regarding deferrals under the Plan. Any such limits may be set
forth in election forms, instructions or other policies established
by the Committee, which may be, but need not be, set forth in
writing.

(b)      Timing of Elections. No later than December 1 of the
preceding Plan Year, an Eligible Individual may make an election to
defer a portion of his or her Compensation that otherwise would be
payable in the following Plan Year; provided, however, that a
deferral election made in the 2003 Plan Year applicable to
Compensation payable in the 2004 Plan Year may be made by December
15, 2003. In the event a Director or Employee first becomes an
Eligible Individual after the first day of a Plan Year, such
Eligible Individual may make an election within thirty (30) days
after the date on which he or she first became an Eligible
Individual in order to defer Compensation for such Plan Year. An
Eligible Individual may make an election to defer by completing a
Participation Agreement and filing it with the Committee. An
election to defer shall remain in effect only for the Plan Year
specified in the Participation Agreement. Once filed, the
Participation Agreement is irrevocable, subject only to the
one-time redeferral provision of Section 7.2. An election to defer
shall only be effective with respect to Compensation earned after
the date the Participation Agreement is filed with the Committee.

(c)      Period of Deferral. Each election to defer made by an Eligible
Individual shall include an election of the date on which the
amount of such deferral (together with Earnings thereon) will be
distributed. Such date shall be no earlier than January 1 of the
third Plan Year following the Plan Year to which the election to
defer relates.

     4.2     
Deferral Account. The Committee shall maintain a Deferral Account for
each Participant. A Participant’s Deferral Account shall include a subaccount
for each deferral made under the Plan and any Company Contributions made to the
Participant under Article V of the Plan. Each such subaccount shall reflect:
(i) any amount deferred or contributed during a Plan Year, (ii) any amounts
distributed during a Plan Year, and (iii) the total Earnings on the Deferral
Account described in Section 4.3 for a Plan Year. Deferred Compensation shall
be credited to

5

 

Participant’s subaccounts as soon as practicable following the date the
Compensation would otherwise have been paid to the Participant but for his or
her deferral election. A Participant’s Deferral Account shall be
nonforfeitable at all times (except as otherwise provided in Section 5.3).

     4.3
     Investment of Deferral Account. A Participant may direct the deemed
investment of his or her Deferral Account among investment alternatives
determined by the Committee from time to time (collectively, the “Measurement
Funds”). Investment elections may be changed by the Participant (but only
among such Measurement Funds) on such date and in such manner as determined by
the Committee in its sole discretion. A Participant’s Deferral Account shall
be credited or debited daily based on the performance of each Measurement Fund
selected by the Participant, as though (i) the Participant’s Compensation
deferrals were invested in the Measurement Fund(s) as of the date that they are
credited to the Participant’s Deferral Account; and (ii) any distributions made
to the Participant that decrease the Participant’s Deferral Account balance
ceased being invested in the Measurement Fund(s) on the date the distribution
is made. Thereafter, the Measurement Funds that the Participant elects will be
revalued daily based on the value of such funds on that date, and the
percentages in which the Participant is invested in each of the Measurement
Funds. If the Participant has provided no or insufficient investment
directions for any part of his or her Deferral Account, that portion of the
Deferral Account shall be invested as determined by the Committee.

     Notwithstanding any other provision of this Plan that may be interpreted
to the contrary, the Measurement Fund(s) are to be used for measurement
purposes only, and the allocation of Participant’s Deferral Account to such
Measurement Fund(s), and the calculation of amounts to be credited or debited
to a Participant’s Deferral Account, shall not be considered or construed in
any manner as an actual investment of the Participant’s Deferral Account in any
such Measurement Fund(s).

     4.4     
Adjustment of Participants’ Deferral Account. As of the close of each
Accounting Date, the Committee shall:

(a)      First, charge to the proper Deferral Accounts all payments or
distributions made since the last preceding Accounting Date.

(b)      Next, credit each Participant’s Deferral Account with amounts
deferred on behalf of the Participant made since the last preceding
Accounting Date;

(c)      Next, credit each Participant’s Deferral Account with any
Company Contributions made on behalf of the Participant pursuant to
Section 5.1 since the last preceding Accounting Date;

(d)      Next, adjust each Participant’s Deferral Account for applicable
Earnings since the last preceding Accounting Date.

     4.5     
Additional Limitation on Deferral Elections. Notwithstanding anything
in this Plan to the contrary, the Committee may limit a Participant’s deferral
election if, as a result of any election, a Participant’s Compensation from the
Companies would be insufficient to allow

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the Participant to make all 401(k) deferrals permitted under the Qualified
Plan or to cover taxes and withholding applicable to the Participant.

7

 

ARTICLE V

COMPANY CONTRIBUTIONS

     5.1
     Company Contributions. To the extent a Participant makes an election
to defer Compensation, the Company may make a matching contribution to such
Participant in such amount and at such time as determined by the Committee.
Additionally, the Company may provide a discretionary profit sharing
contribution at any time during the Plan Year, to be allocated as determined by
the Committee. All contributions made under this Section 5.1 shall be invested
in accordance with Section 4.3 of the Plan.

     5.2     
Accounting for Company Contributions. Company Contributions on behalf
of a Participant will be recorded in a separate subaccount maintained in the
Participant’s Deferral Account as of the same date that the underlying deferral
is credited to the Participant’s Deferral Account or, in the case of a profit
sharing contribution, as of the end of the next payroll period. Such
subaccount will be deemed to be invested in accordance with the Participant’s
Participation Agreement and will be adjusted from time to time in the same
manner as described in Section 4.4.

     5.3      Vesting of Company Contributions. Company Contributions attributable
to any Plan Year are nonforfeitable at all times; provided, however, if a
Participant is terminated for Cause, his or her subaccount attributable to
Company Contributions shall be forfeitable at the election of the Committee.

8

 

ARTICLE VI

FUNDING

     6.1      Participants’ Rights Unsecured. The Plan shall at all times be
entirely unfunded and, except as provided in the following paragraph, no
provision of this Plan shall at any time be made with respect to segregating
any assets of the Company or any other Employer for payment of any benefits
hereunder. Participants and Beneficiaries shall at all times have the status
of general unsecured creditors of the Employers, and neither Participants nor
Beneficiaries shall have any rights in or against any specific assets of the
Employers. The Plan constitutes a mere promise by the Employers to make
benefit payments in the future.

     The Company may establish a reserve of assets to provide funds for the
payment of benefits under the Plan. Such reserve may be through a trust
account and such reserve shall, at all times, be subject to the claims of
general creditors of the Employers and shall otherwise be on such terms and
conditions as shall prevent taxation to Participants and Beneficiaries of any
amounts held in the reserve or credited to an account prior to the time
payments are made. No Participant or Beneficiary shall have any ownership
rights in or to any reserve.

9

 

ARTICLE VII

TIMING AND FORM OF BENEFIT PAYMENTS

     7.1
     Timing of Distribution. The vested portions of a Participant’s
Deferral Account shall be distributed as soon as practicable after the earlier
of:

(a)      The deferred distribution date indicated on the Participant’s
Participation Agreement in accordance with subsection 4.1(c);

(b)      The date that the Participant terminates employment with the
Company; and

(c)      The date the Company terminates the Plan.

     7.2      One-time Redeferral Election. No later than one year before a
distribution under subsection 7.1(a) is scheduled to occur, a Participant may
make a one-time election to defer any portion of such distribution for a period
of not less than two years.

     7.3      Form of Distribution. Distributions from the Plan will be made in a
lump sum or in a series of periodic annual installments over a period not to
exceed 10 years, as elected by the Participant at the time he or she files the
Participation Agreement for that Plan Year.

     7.4      Beneficiaries. A Participant may designate his or her primary
Beneficiary or Beneficiaries to receive the amounts as provided herein after
his or her death in accordance with the Beneficiary Designation provisions of
the Participation Agreement. A Participant also may designate his or her
contingent Beneficiary or Beneficiaries to receive amounts as provided herein
if all primary Beneficiaries predecease the Participant or have ceased to exist
on the date of the Participant’s death. Any Beneficiary designation shall
apply to the Participant’s entire Account Balance and shall revoke all prior
designations. In the absence of such a Beneficiary designation, the Company
shall pay any such amount to the Participant’s estate.

     7.5      Unforeseeable Emergency Withdrawals. Notwithstanding any provision of
the Plan to the contrary, any portion of a Participant’s Deferral Account not
yet distributable under subsection 7.1(a) may be distributed to the Participant
upon his or her request if the Participant incurs an unforeseeable emergency.
An unforeseeable emergency is a severe financial hardship resulting from a
sudden and unexpected illness or accident of the Participant or his or her
spouse or dependent (as defined in Section 152(a) of the Code), loss of the
Participant’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant, as determined by the Committee in its sole discretion. The
amounts distributed pursuant to an unforeseeable emergency may not exceed the
amounts necessary to satisfy such emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into
account the extent to which the hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise or by liquidation of
the Participant’s assets (to the extent the liquidation of such assets would
not itself cause severe financial hardship). Withdrawals made pursuant to this
paragraph shall be paid as soon as practicable following approval by the
Committee.

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ARTICLE VIII

ADMINISTRATION

     8.1      Committee. The Plan shall be administered by the Committee, which
shall be a committee of one or more persons appointed by the Board from time to
time. As of the effective date, the Committee shall be the Compensation
Committee of the Board.

     8.2     
Committee’s Rights, Duties and Powers. The Committee shall have all
the powers necessary and appropriate to discharge its duties under the Plan,
which powers shall be exercised in the sole and absolute discretion of the
Committee, including, but not limited to, the following:

(a)      To construe and interpret the provisions of the Plan and to
make factual determinations thereunder, including the power to
determine the rights or eligibility under the Plan and amounts of
benefits (if any) under the Plan, and to remedy ambiguities,
inconsistencies or omissions, and such determinations by the
Committee shall be binding on all parties.

(b)      To adopt such rules of procedure and regulations as in its
opinion may be necessary for the proper and efficient
administration of the Plan and as are consistent with the Plan and
trust agreement, if any.

(c)      To direct the payment of distributions in accordance with the
provisions of the Plan.

(d)      To employ agents, attorneys, accountants, actuaries or other
persons (who also may be employed by the Company) and to delegate
to them such powers, rights and duties as the Committee may
consider necessary or advisable to carry out administration of the
Plan.

(e)      To appoint an investment manager to manage (with power to
acquire and dispose of) the assets of the Company that may be used
to satisfy benefit obligations under the Plan, and to delegate to
any such investment manager all of the powers, authorities and
discretions granted to the Committee hereunder or to the trustee of
any under Trust established to pay benefits under the Plan.

     8.3     
Interested Committee Member. If a member of the Committee is also a
Participant in the Plan, the Committee member may not decide or determine any
matter or question concerning his or her participation in the Plan, unless such
decision or determination could be made by the Committee member under the Plan
if the Committee member were not serving within the Committee.

     8.4      Expenses. All costs, charges and expenses reasonably incurred by the
Committee will be paid by the Company. No compensation will be paid to a
member of the Committee as such.

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     8.5
     Claims. Claims for benefits under the Plan shall be made in writing
to the Committee or its duly authorized delegate. If the Committee or such
delegate wholly or partially denies a claim for benefits, the Committee or, if
applicable, its delegate shall, within a reasonable period of time, but no
later than ninety (90) days after receipt of the claim, notify the claimant in
writing or electronically of the adverse benefit determination. Notice of an
adverse benefit determination shall be written in a manner calculated to be
understood by the claimant and shall contain:

(a)      the specific reason or reasons for the adverse benefit
determination,

(b)      a specific reference to the pertinent Plan provisions upon
which the adverse benefit determination is based,

(c)      a description of any additional material or information
necessary for the claimant to perfect the claim, together with an
explanation of why such material or information is necessary, and

(d)      an explanation of the Plan’s review procedure and the time
limits applicable to such procedure including a statement of the
claimant’s right to bring a civil action under section 502(a) of
ERISA following an adverse benefit determination.

If the Committee or its delegate determines that an
extension of time is necessary for processing the claim, the
Committee or its delegate shall notify the claimant in writing
of such extension, the special circumstances requiring the
extension and the date by which the Committee expects to
render the benefit determination. In no event shall the
extension exceed a period of ninety (90) days from the end of
the initial ninety (90) day period. If notice of the denial
of a claim is not furnished in accordance with this paragraph
(a) within ninety (90) days after the Committee or its duly
authorized delegate receives it (or within one hundred and
eighty (180) days after such receipt if the Committee or its
delegate determines an extension is necessary), the claim
shall be deemed denied and the claimant shall be permitted to
proceed to the review stage described in paragraph (b) below.

     Within sixty (60) days after the claimant receives the written or
electronic notice of an adverse benefit determination, or the date the claim is
deemed denied pursuant to paragraph (a) above, or such later time as shall be
deemed reasonable in the sole discretion of the Committee taking into account
the nature of the benefit subject to the claim and other attendant
circumstances, the claimant may file a written request with the Committee that
it conduct a full and fair review of the adverse benefit determination,
including the holding of a hearing, if deemed necessary by the Committee. In
connection with the claimant’s appeal of the adverse benefit determination, the
claimant may review pertinent documents and may submit issues and comments in
writing. The Committee shall render a decision on the appeal promptly, but not
later than sixty (60) days after the receipt of the claimant’s request for
review, unless special circumstances (such as the need to hold a hearing, if
necessary) require an extension of time for processing, in which case the sixty
(60) day period may be extended to one hundred and twenty (120) days. The
Committee shall notify the claimant in writing of any such extension, the
special circumstances requiring the extension, and the date by which the
Committee

12

 

expects to render the determination on review. The claimant shall be notified
of the Committee’s decision in writing or electronically. In the case of an
adverse determination, such notice shall:

(a)      include specific reasons for the adverse determination,

(b)      be written in a manner calculated to be understood by the
claimant,

(c)      contain specific references to the pertinent Plan provisions
upon which the benefit determination is based,

(d)      contain 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

(e)      contain a statement of the claimant’s right to bring an action
under section 502(a) of ERISA.

     8.6      Reports. The Committee shall provide the Participant with a statement
reflecting the amount of the Participant’s Deferral Account at least quarterly.

     8.7     
No Liability. No employee, agent, officer, trustee, member,
volunteer or director of the Company shall, in any event, be liable to any
person for any action taken or omitted to be taken in connection with the
interpretation, construction or administration of this Plan, so long as such
action or omission to act be made in good faith.

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ARTICLE IX

AMENDMENT AND TERMINATION

     The Company, by action of its Board, may amend, alter, modify or terminate
this Plan at any time, provided that no such amendment, alteration,
modification or termination shall reduce the balance in any Participant’s
Deferral Account in whole or in part.

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ARTICLE X

MISCELLANEOUS

     10.1
     Non-Assignability of Benefits. Neither any Participant nor any
Beneficiary under this Plan shall have any power or right to transfer, assign,
anticipate, hypothecate or otherwise encumber any part or all of the amounts
payable hereunder. Such amounts shall not be subject to seizure by any creditor
of a Participant or any Beneficiary hereunder, by a proceeding at law or in
equity, nor transferable by operation of law in the event of the bankruptcy or
insolvency of any Participant or any Beneficiary hereunder. Any such attempted
assignment or transfer shall be void and shall terminate the Participant’s
participation in this Plan, and the Company then may pay the benefits hereunder
as if the Participant had terminated employment.

     10.2
     Impact on Other Benefits. Except as otherwise required by the Code
or any other applicable law, this Plan and the benefits provided herein are in
addition to all other benefits which may be provided by the Company to the
Participants from time to time, and shall not reduce, replace or otherwise
cause any reduction, in any manner, with regard to any of such other benefits.

     10.3
     Notices. Any notice, consent or demand required or permitted to be
given under the provisions of this Plan by the Company or any Participant or
Beneficiary shall be in writing, and shall be signed by the person or entity
giving or making the same. If such notice, consent or demand is mailed, it
shall be sent by United States certified mail, postage prepaid, addressed to
the principal office of the Company, or if to a Participant or Beneficiary to
such individual or entity’s last known address as shown on the records of the
Company. The date of such mailing shall be deemed the date of notice, consent
or demand.

     10.4     
Tax Withholding. The Company shall have the right to deduct from all
deferrals and payments made under this Plan any federal, state or local taxes
required by law to be withheld with respect to such deferrals and payments.

     10.5     
Governing Law. This Plan shall be governed by and construed in
accordance with the internal laws of the State of Illinois.

     IN WITNESS WHEREOF, the Company has executed and adopted this Plan as
of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	WMS INDUSTRIES INC.
	 
	

	 	 	 	By:
	 	/s/ Brian R. Gamache	 	 	 	 
	

	 	 	 	 	 	
 	 	 	 	 
	 	 	 	 	Name: Brian R. Gamache
	 	 	 	 	Its: President and Chief Executive Officer

15

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