Document:

Exhibit 10(B)

 

EXHIBIT 10(b)

LESCO BONUS PLAN

		
	POLICY: 	The purpose of the LESCO Bonus Plan is to promote
the strategic interests of LESCO by providing key
executives with financial incentive awards for
performance that contributes significantly to the
success of the company, as determined by meeting or
exceeding specific strategic goals.

		
	RESPONSIBLE OFFICER: 	President and Chief Executive Officer

PROCEDURE:

	I.  	ELIGIBILITY AND PARTICIPATION

	 	A.  	Eligibility to participate in the Plan shall be limited to key executives and
other associates as recommended by the Vice President Human Resources with final
approval by the President and Chief Executive Officer.
	 
	 	B.  	Following the start of the calendar year, the list of participants for a Plan
year can be revised upon authorization of the President and Chief Executive Officer.
Any associate that is hired or selected to participate after the start of the calendar
year shall participate on a pro-rata basis. This is determined by multiplying the
maximum bonus opportunity by a fraction, the numerator of which shall be the number of
days of his/her participation in the calendar year and the denominator of which shall
be 365.
	 
	 	C.  	Suggested Participation Levels

	 	 	 
	Management Level	 	Target Bonus as % of Base
	CEO
	 	60%
	CFO
	 	60%
	Senior VP / VP
	 	20% — 40%
	Sr. Director / Director
	 	15% — 25%
	Sr. Manager / Manager
	 	10% — 20%

Note: The Board of Directors and the President and Chief Executive Officer must
approve associate’s participation levels.

	 	D.  	Participation in the Plan as recommended and approved is not guaranteed from
one year to the next.

	II.  	PAYMENT OF BONUS AWARD EARNED

	 	A.  	Bonuses are earned after the last day of the calendar year. Associates must be
actively employed at the time of payment to receive prior year’s bonus.

 

 

	 	B.  	Termination due to retirement or death will result in a pro-rata incentive
award upon approval of the President and Chief Executive Officer.
	 
	 	C.  	With respect to Section 1, paragraph B. above, the whole amount of the bonus
earned in the calendar year shall be paid to each eligible associate after the
company’s audited financial results are available, but no later than March
15th of the following year.
	 
	 	D.  	An associate will not receive a bonus when, in the judgement of the Company:

	 	1.  	The associate’s overall performance for the period is
consistently below expectations.
	 
	 	2.  	The associate has failed to achieve agreed upon goals.
	 
	 	3.  	The associate has violated corporate policies or has broken any
Federal, State, or Local Laws.
	 
	 	4.  	Management determines at its discretion, that an award should
not be given.

	 	E.  	Following release of the Company’s audited financial statements, the Board of
Directors and the President and Chief Executive Officer can increase, decrease or
eliminate awards when it is determined that the amount of the awards is unreasonable in
view of any unique circumstances or the Company’s financial performance.
	 
	 	F.  	All payouts for eligible participants shall be at the discretion of the
President and Chief Executive Officer.

	III.  	PLAN YEAR

	 	A.  	The Plan Year is defined as January 1st through December 31st,
or the fiscal year when not a calendar year.

	IV.  	OPERATING RULES

	 	A.  	Each participant will have a Target Bonus that will be the amount earned for
meeting the Plan’s performance measurements. The Target Bonus will be expressed as a
percentage of actual base salary and will be reviewed by the Vice President Human
Resources and approved by the President and Chief Executive Officer.
	 
	 	B.  	Bonus payouts will be calculated based on the attainment of corporate goals of
Basic Earnings Per Share (BEPS), Return of Investment Capital (ROIC), Sales Growth, and
an Individual Performance Goal. Weighting for each goal against total target bonus
percent is outlined in the Bonus Participation Letter.

 

 

	 	C.  	Attainment of the financial Plan measurements are paid out between threshold
and maximum as defined in the Payout Matrix below.

Bonus Plan Payout Matrix

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	% of	 	 
	 	 	% of	 	Target	 	 
	 	 	Target	 	Dollars	 	 
	 	 	Achieved	 	Payable	 	Definitions
	Threshold

	 	 	90%		 	 	80%	 	 	Threshold performance pays at 80% of
Target Dollars prorated up to Target.
	

	 	 	91%		 	 	82%	 	 	 
	

	 	 	95%		 	 	90%	 	 	 
	Target

	 	 	100%		 	 	100%	 	 	Target pays at 100% of Target Dollars.
	

	 	 	10%5		 	 	110%	 	 	 
	

	 	 	110%		 	 	120%	 	 	 
	

	 	 	115%		 	 	130%	 	 	 
	

	 	 	120%		 	 	140%	 	 	 
	

	 	 	125%		 	 	150%	 	 	 
	

	 	 	130%		 	 	160%	 	 	 
	

	 	 	135%		 	 	170%	 	 	 
	

	 	 	140%		 	 	180%	 	 	 
	

	 	 	145%		 	 	190%	 	 	 
	Maximum

	 	 	150%		 	 	200%	 	 	Above Target pays at a 2:1 ratio up
to maximum of 200% of Target Dollars.

	 	D.  	Attainment of the Individual Performance Achievement measurement is paid based
on your agreed upon goals and performance rating as defined in the Performance Matrix
below.

Bonus Plan Individual Performance Matrix

	 	 	 	 	 	 	 	 	 
	Agreed Upon Goals /	 	% of Target Paid for Personal
	Performance Rating	 	Performance Component
	

	 	Doesn’t Meet
	 	 	(1	)	 	0% — 20%
	

	 	Meets
	 	 	(2	)	 	70% — 100%
	

	 	Exceeds
	 	 	(3	)	 	100% — 120%

	 	E.  	Personalized Bonus Plan documents will be presented to all participants that
detail their approved target percent, target dollars and performance measures or
individual targets for the current Plan year.

	V.  	GUIDELINES

	 	A.  	Bonus Plan participants’ base salary in effect January 1 of the Plan
year will be the basis for calculating target and actual bonus dollars.

 

 

	 	B.  	An associate who is hired or promoted after January 1st and
qualifies for participation during the Plan year will receive a payment for earned
rewards (see section 1, paragraph B) based on prorated salary data in effect with
regard to either date of hire or promotion.
	 
	 	C.  	Only full-time, regular associates are eligible to participate in the Bonus
Plan. When an associate is on a Leave of Absence for any portion of the calendar year,
the associate will participate in the Plan on a pro-rata basis as long as the associate
is on active status for a minimum of ninety (90) days during the calendar year.
	 
	 	D.  	Attainments of goals are based on actual results.
	 
	 	E.  	All percentages will be rounded to the nearest hundredth of a percent.
	 
	 	F.  	Bonus awards are included as compensation for the LESCO, Inc. Stock Investment
and Salary Savings and Trust (401(k) Plan) and the LESCO, Inc. 401(k) Restoration Plan,
but are excluded in calculating all other associate benefits.

	VI.  	RIGHT OF PARTICIPANTS AND FORFEITURE

	 	A.  	Nothing in this Plan shall:

	 	1.  	Confer upon any associate any right with respect to
continuation of employment with LESCO.
	 
	 	2.  	Interfere in any way with the right of the Company to terminate
his or her employment at any time, or
	 
	 	3.  	Confer upon any associate or any person any claim or right to
any distribution under the Plan except in accordance with its terms.

	 	B.  	No right or interest of any Participant in the Plan shall, prior to actual
payment or distribution of such Participant, be assignable or transferable in whole or
part, either voluntarily or by operation of law otherwise, or be subject to payment of
debts of any Participant by execution, levy, garnishment, attachment, pledge,
bankruptcy or in any other manner.

	VII.  	PLAN ADMINISTRATION

	 	A.  	The Plan shall be administered by LESCO. LESCO can at any time amend, suspend,
terminate or reinstate any or all of the provisions of the Plan as may seem necessary
or advisable for the administration of the Plan.
	 
	 	B.  	LESCO interprets this policy for plan administration.
	 
	 	C.  	Any major business and/or organizational transactions that occur during the
course of the Plan year subject the Plan to appropriate changes. When this occurs, the
Plan will be amended accordingly and submitted to the Board of Directors for approval
consistent with the business/organizational transaction.

 

 

	 	D.  	Participants will be provided written communication of Plan changes within 30
days of the effective date of change.

The President and Chief Executive Officer must approve any exceptions to the policy.

	 	 	 	 	 	 	 	 
	Approved:

	 	/s/ Michael P. DiMino
	 	Date:
	 	February 25, 2005	 
	

	 	 
	 	 	 	 	 
	

	 	Michael P. DiMino, President & CEOExhibit 10(M)

 

EXHIBIT 10(m)

LINCOLN ELECTRIC HOLDINGS, INC.

NON-EMPLOYEE DIRECTORS’

DEFERRED COMPENSATION PLAN

(AS AMENDED, RESTATED AND RENAMED EFFECTIVE JANUARY 1, 2004)

 

 

THE LINCOLN ELECTRIC HOLDINGS, INC.

NON-EMPLOYEE DIRECTORS’

DEFERRED COMPENSATION PLAN

(AS AMENDED, RESTATED AND RENAMED EFFECTIVE JANUARY 1, 2004)

ARTICLE I. PURPOSE

                    The Lincoln Electric Company Non-Employee Directors’ Compensation Plan (the “Original Plan”)
was established by The Lincoln Electric Company effective as of May 24, 1995 to allow directors of
the Corporation to defer a portion of their Directors’ Fees. As of June 2, 1998, the date of the
reorganization of The Lincoln Electric Company, the name of the Original Plan was changed to the
Lincoln Electric Holdings, Inc. Non-Employee Directors’ Deferred Compensation Plan. Effective as
of the Effective Date of this Plan, this LINCOLN ELECTRIC HOLDINGS, INC. NON-EMPLOYEE DIRECTORS’
DEFERRED COMPENSATION PLAN (the “Plan”) is hereby amended and restated.

                    It is intended that the Plan will aid in attracting and retaining Directors of exceptional
ability by providing this benefit. The terms and conditions of the Plan are set forth below.

ARTICLE II. DEFINITIONS AND CONSTRUCTION

                    Section 2.1. Definitions. Whenever the following terms are used in this Plan they
shall have the meanings specified below unless the context clearly indicates to the contrary:

     (a) “Account”: The bookkeeping account maintained for each Director showing his or her
interest under the Plan.

     (b) “Accounting Date”: December 31 of each year and the last day of any calendar
quarter in which a Director’s Settlement Date occurs.

     (c) “Accounting Period”: The period beginning on the day immediately following an
Accounting Date and ending on the next following Accounting Date.

     (d) “Administrator”: The committee established pursuant to the provisions of Section
7.1.

     (e)
“Annual Retainer”: The annual cash retainer earned by a Director for services as a
Director of the Corporation.

     (f) “Beneficiary”: The person or persons (natural or otherwise), within the meaning of
Section 6.5, who are entitled to receive distribution of the Director’s Account balance in
the event of the Director’s death.

     (g) “Board”: The Board of Directors of the Corporation.

     (h) “Committee”: The Compensation Committee of the Board.

 

 

     (i) “Corporation”: Lincoln Electric Holdings, Inc., an Ohio corporation or any
successor or successors thereto.

     (j) “Deferral Commitment”: An agreement by a Director to have a specified percentage
or dollar amount of his or her Fees deferred under the Plan for a specified period in the
future.

     (k) “Deferral Period”: Means the Plan Year for which a Director has elected to defer a
portion of his or her Fees.

     (l) “Director”: An individual duly elected or chosen as a director of the Corporation
who is not also an employee of the Corporation or its subsidiaries.

     (m) “Effective Date”: May 24, 1995.

     (n) “Fees”: The Annual Retainer and Other Compensation.

     (o) “Investment Funds”: Has the meaning set forth in Section 5.3.

     (p) “Investment Request”: An investment preference request filed by a Director which
(i) shall apply with respect to contributions credited to the Director’s Account until the
timely filing of a subsequent Investment Request and (ii) shall determine the manner in
which such credited contributions shall be initially allocated by the Director among
the various Investment Funds within the Plan. A subsequent Investment Request may be
submitted in writing by the Director. Such Investment Request will be effective on the
first business day of the next calendar month following receipt by the Administrator of such
Investment Request.

     (q) “Investment Re-Allocation Request”: An investment preference request filed by a
Director which shall re-direct the manner in which earlier credited amounts to a Director’s
Account, as well as any appreciation (or depreciation) to-date, are invested within the
deemed Investment Funds available in the Plan. An Investment Re-Allocation Request may be
submitted in writing by the Director. Such Investment Re-Allocation Request will be
effective on the first business day of the next calendar month with respect to the balance
of the Director’s Account following receipt by the Administrator of such Investment
Re-Allocation Request.

     (r) “Other Compensation”: The meeting and other cash fees earned by a Director for
services as a Director of the Corporation, other than the Annual Retainer.

     (s) “Participation Agreement”: The Agreement submitted by a Director to the
Administrator with respect to one or more Deferral Commitments.

     (t) “Plan”: The Plan set forth in this instrument as it may, from time to time, be
amended.

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     (u) “Plan Year”: The 12-month period beginning January 1 through December 31; provided
that the first plan year began on May 24, 1995 and ended on December 31, 1995.

     (v) “Settlement Date”: The date on which a Director terminates as a Director.
Settlement Date may also include with respect to any Deferral Period the date for
distribution of all of the amounts deferred during such Deferral Period selected by a
Director in a Participation Agreement that is prior to or subsequent to termination as a
Director.

     (w) “Trust”: The meaning set forth in Section 5.2

                    Section 2.2. Construction. The masculine or feminine gender, where appearing in the
Plan, shall be deemed to include the opposite gender, and the singular may include the plural,
unless the context clearly indicates to the contrary. The words “hereof,” “herein,” “hereunder,”
and other similar compounds of the word “here” shall mean and refer to the entire Plan, and not to
any particular provision or Section.

ARTICLE III. PARTICIPATION AND DEFERRALS

                    Section 3.1.
Eligibility and Participation.

     (a) Eligibility. Eligibility to participate in the Plan for any Deferral
Period is limited to Directors.

     (b) Participation. A Director may elect to participate in the Plan with
respect to any Deferral Period by submitting a Participation Agreement to the Administrator
by the last business day immediately preceding the applicable Deferral Period.

     (c) Initial Year of Participation. In the event that an individual first
becomes a Director during a Deferral Period and wishes to elect a Deferral Commitment with
respect to the Fees earned by and payable to the individual during such Deferral Period, and
with respect to the first Plan Year, a Participation Agreement must be submitted to the
Administrator no later than 30 days following such individual’s becoming a Director, or
following the beginning of such Plan Year, respectively. Any Deferral Commitment elected in
such Participation Agreement shall be effective only with regard to Fees earned following
the submission of the Participation Agreement to the Administrator. If a Director does not
submit a Participation Agreement within such period of time, such individual will not be
eligible to participate in the Plan until the first day of a Deferral Period subsequent to
the Deferral Period in which the individual became a Director.

     (d) Termination of Participation. Participation in the Plan shall continue as
long as the Director is eligible to receive benefits under the Plan.

                    Section 3.2. Amount of Deferral. With respect to each Plan Year, a Director may elect
to defer a specified dollar amount or percentage of his or her Fees. For the first Plan Year, a
Director may elect to defer all or any portion of his or her Fees earned or payable after the later
of the effective date of the Participation Agreement or the date of filing the Participation

3

 

Agreement with the Administrator. A Director may change the dollar amount or percentage of
his or her Fees to be deferred by filing a written notice thereof with the Administrator. Any such
change shall be effective as of the first day of the Plan Year immediately succeeding the Plan Year
in which such notice is filed with the Administrator.

                    Section 3.3. Modification of Deferral Commitments. A Deferral Commitment shall be
irrevocable with respect to the Deferral Period for which it is made, except that the Administrator
may, in its sole discretion, permit a Director to terminate prospectively any Deferral Commitment
for a Deferral Period. If a Director terminates a Deferral Commitment during a Deferral Period,
such Director will not be permitted to enter into a new Deferral Commitment until the following
Deferral Period.

ARTICLE IV. DIRECTORS’ ACCOUNTS

                    Section 4.1. Establishment of Accounts. The Corporation, through its accounting
records, shall establish an Account for each Director who elects to participate in the Plan. In
addition, the Corporation may establish one or more subaccounts of a Director’s Account, if the
Corporation determines that such subaccounts are necessary or appropriate in administering the
Plan.

                    Section 4.2. Crediting of Deferred Fees. A Director’s Fees that are deferred pursuant
to a Deferral Commitment shall be credited to the Director’s Account within 30 days following the
date the corresponding non-deferred portion of his or her Fees would have been paid to the
Director. Any withholding of taxes or other amounts with respect to any deferred Fees that is
required by state, federal or local law shall be withheld from the Director’s non-deferred Fees, or
if none, then the Director’s Deferred Commitment shall be reduced by the amount of such
withholding.

                    Section 4.3. Determination of Accounts.

     (a) Determination of Accounts. The amount credited to each Director’s Account
as of a particular date shall equal the deemed balance of such Account as of such date. The
balance in the Account shall equal the amount credited pursuant to Section 4.2, and shall be
adjusted in the manner provided in Section 4.4.

     (b) Accounting. The Corporation, through its accounting records, shall
maintain a separate and distinct record of the amount in each Account as adjusted to reflect
income, gains, losses, withdrawals and distributions.

                    Section 4.4. Adjustments to Accounts.

     (a) Each Director’s Account shall be debited with the amount of any distributions under
the Plan to or on behalf of the Director or, in the event of his or her death, his or her
Beneficiary during the Accounting Period ending on such Accounting Date.

     (b) The Director’s Account shall next be credited or debited, as the case may be, on a
daily basis with the performance of each deemed Investment Fund based on the

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manner in which the balance of such Director’s Account has been allocated among the
deemed Investment Funds provided for in Article V. The performance of each deemed
Investment Fund (either positive or negative) will be determined by the Administrator, in
its sole discretion.

     (c) Earnings on any amounts deemed to have been invested in any deemed Investment Fund
will be deemed to have been reinvested as the Committee so determines.

                    Section 4.5. Statement of Accounts. As soon as practicable after the end of each Plan
Year, a statement shall be furnished to each Director or, in the event of his or her death, to his
or her Beneficiary showing the status of his or her Account as of the end of the Plan Year, any
changes in his or her Account since the end of the immediately preceding Plan Year, and such other
information as the Administrator shall determine.

                    Section 4.6. Vesting of Accounts. Subject to Section 5.1, each Director shall at all
times have a nonforfeitable interest in his or her Account balance.

ARTICLE V. FINANCING OF BENEFITS

                    Section 5.1. Financing of Benefits. Benefits payable under the Plan to a Director or,
in the event of his or her death, to his or her Beneficiary shall be paid by the Corporation from
its general assets. The payment of benefits under the Plan represents an unfunded, unsecured
obligation of the Corporation. Notwithstanding the fact that the Directors’ Accounts may be
adjusted by an amount that is measured by reference to the performance of any deemed Investment
Funds as provided in Section 5.3, no person entitled to payment under the Plan shall have any
claim, right, security interest or other interest in any fund, trust, account, insurance contract
or asset of the Corporation which may be responsible for such payment.

                    Section 5.2. Security for Benefits. Notwithstanding the provisions of Section 5.1,
nothing in this Plan shall preclude the Corporation from setting aside amounts in trust (the
“Trust”) pursuant to one or more trust agreements between a trustee and the Corporation. However,
no Director or Beneficiary shall have any security interest or claim in any assets or property of
the Corporation or the Trust and all funds contained in the Trust shall remain subject to the
claims of the Corporation’s general creditors.

                    Section 5.3. Deemed Investments. The Committee may designate one or more separate
investment funds or vehicles or measures for crediting earnings, including, without limitation,
certificates of deposit, mutual funds, money market accounts or funds, limited partnerships, or
debt or equity securities, including equity securities of the Corporation (measured by market
value, book value or any formula selected by the Committee), in which the amount credited to a
Director’s Account will be deemed to be invested (collectively, the “Investment Funds”). An
Investment Request or Investment Re-Allocation Request will advise the Administrator as to the
Director’s preference with respect to Investment Funds for all or some portion of the amounts
credited to a Director’s Account in specified multiples of one percent (1%).

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                    Section 5.4. Change of Investment Request Election.

     (a) A Director may change his or her Investment Request prospectively as of the first
business day of any calendar month by giving the Administrator prior written notice by
filing an Investment Request, with respect to contributions subsequently credited to a
Director’s Account.

     (b) A Director may change his or her Investment Re-Allocation Request prospectively as
of the first business day of any calendar month by giving the Administrator prior written
notice by filing an Investment Re-Allocation Request, with respect to all or a portion of
the Director’s Account.

     (c) The Administrator may, but is under no obligation to, deem the amounts credited to
a Director’s Account to be invested in accordance with the Investment Request or Investment
Re-Allocation Request made by the Director, or the Committee may, instead, in its sole
discretion, deem such Account to be invested in any deemed Investment Funds selected by the
Committee.

     (d) Notwithstanding any provision of the Plan to the contrary:

	 	(i)  	The Administrator, in its sole and absolute
discretion (but subject to the requirements of applicable law) may
temporarily suspend, in whole or in part, certain Plan transactions,
including without limitation, the right to change investment preference
allocation elections and/or the right to receive a distribution or
withdrawal from a Director’s Account in the event of any conversion,
change in recordkeepers, change in Investment Funds and/or Plan merger,
spin-off or similar corporate change.
	 
	 	(ii)  	In the event of a change in Investment Funds
and/or a Plan merger, spin-off or similar corporate change, the
Administrator, in its sole and absolute discretion may decide to map
investments from a Director’s prior investment preference allocation
elections to the then available Investment Funds under the Plan. In
the event that investments are mapped in this manner, the Director will
be permitted to reallocate funds among the Investment Funds (in
accordance with Section 5.4) after the suspension period described in
Section 5.4(d)(i), if any, has ended.

ARTICLE VI. DISTRIBUTION OF BENEFITS

                    Section 6.1. Settlement Date. A Director or, in the event of his or her death, his or
her Beneficiary will be entitled to distribution of the balance of his or her Account, as provided
in this Article VI, following his or her Settlement Date or Dates.

                    Section 6.2. Amount to Be Distributed. The amount to which a Director or, in the
event of his or her death, his or her Beneficiary is entitled in accordance with the following

6

 

provisions of this Article shall be based on the Director’s adjusted account balance
determined as of the Accounting Date coincident with or next following his or her Settlement Date
or Dates.

                    Section 6.3. In-Service Distribution. A Director may elect to receive an in-service
distribution of his or her deferred Fees for any Deferral Period in a single lump sum payment on a
date which is at least two years after the end of such Deferral Period. A Director’s election of
an in-service distribution shall be filed in writing with the Administrator at the same time as is
filed his or her election to participate as provided in Section 3.1. Any benefits paid to the
Director as an in-service distribution shall reduce the Director’s Account.

                    Section 6.4. Form of Distribution.

     (a) As soon as practicable after the end of the Accounting Period in which a Director’s
Settlement Date occurs, but in no event later than thirty (30) days following the end of
such Accounting Period, the Corporation shall commence distribution or cause distribution to
be commenced, to the Director or, in the event of his or her death, to his or her
Beneficiary, of the balance of the Director’s Account, as determined under Section 6.2,
under one of the forms provided in this Section. Notwithstanding the foregoing, if elected
by the Director, the distribution of the balance of the Director’s Account may commence at
the beginning of the second calendar year commencing after his or her Settlement Date.

     (b) Distribution of a Director’s Account following his or her termination as a Director
shall be made in one of the following forms as elected by the Director:

	 	(i)  	by payment in cash in five (5) annual
installments; or
	 
	 	(ii)  	by payment in cash in ten (10) annual installments; or
	 
	 	(iii)  	by payment in cash in fifteen (15) annual installments; or
	 
	 	(iv)  	by payment in cash in a single lump sum;

provided, however, that in the event of a Director’s death, if the balance in his or her Account is
then less than $35,000, such balance shall be distributed in a single lump sum payment.

     (c) The Director’s election of the form of distribution shall be made by written notice
filed with the Administrator at least six (6) months prior to the Director’s voluntary
termination as a Director. Any such election may be changed by the Director at any time and
from time to time without the consent of any other person by filing a later signed written
election with the Administrator; provided that any election made less than six (6) months
prior to the Director’s voluntary termination as a Director shall not be valid, and in such
case payment shall be made in accordance with the Director’s prior election.

     (d) The amount of each installment shall be equal to the quotient obtained by dividing
the Director’s Account balance as of the date of such installment payment by the

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number of installment payments remaining to be made to or in respect of such Director
at the time of calculation.

     (e) If a Director fails to make an election in a timely manner as provided in this
Section 6.4, distribution shall be made in cash in a lump sum.

                    Section 6.5. Beneficiary Designation. As used in the Plan the term “Beneficiary”
means:

     (a) The last person designated as Beneficiary by the Director in a written notice on a
form prescribed by the Administrator;

     (b) If there is no designated Beneficiary or if the person so designated shall not
survive the Director, such Director’s spouse; or

     (c) If no such designated Beneficiary and no such spouse is living upon the death of a
Director, or if all such persons die prior to the full distribution of the Director’s
Account balance, then the legal representative of the last survivor of the Director and such
persons, or, if the Administrator shall not receive notice of the appointment of any such
legal representative within one year after such death, the heirs-at-law of such survivor (in
the proportions in which they would inherit his or her intestate personal property) shall be
the Beneficiaries to whom the then remaining balance of the Director’s Account shall be
distributed.

Any Beneficiary designation may be changed from time to time by like notice similarly delivered.
No notice given under this Section shall be effective unless and until the Administrator actually
receives such notice.

                    Section 6.6. Facility of Payment. Whenever and as often as any Director or his or her
Beneficiary entitled to payments hereunder shall be under a legal disability or, in the sole
judgment of the Administrator, shall otherwise be unable to apply such payments to his or her own
best interests and advantage, the Administrator in the exercise of its discretion may direct all or
any portion of such payments to be made in any one or more of the following ways: (i) directly to
him; (ii) to his or her legal guardian or conservator; or (iii) to his or her spouse or to any
other person, to be expended for his or her benefit; and the decision of the Administrator, shall
in each case be final and binding upon all persons in interest.

                    Section 6.7. Special Distributions. Notwithstanding any other provision of this
Article VI, a Director, whether or not currently receiving a distribution, may elect to receive a
lump sum distribution of all or a portion of the remaining balance of his or her Account if (and
only if) the amount in such Account subject to such distribution is reduced by ten percent (10%).
Any distribution made pursuant to such an election shall be made within thirty (30) days of the
date such election is submitted to the Administrator. The remaining ten percent (10%) of the
portion of the electing Director’s Account subject to such distribution shall be forfeited.

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ARTICLE VII. ADMINISTRATION, AMENDMENT AND TERMINATION

                    Section 7.1. Administration. The Plan shall be administered by an Administrator
consisting of one or more persons who shall be appointed by and serve at the pleasure of the Board.
The Administrator shall have such powers as may be necessary to discharge its duties hereunder,
including, but not by way of limitation, to construe and interpret the Plan and determine the
amount and time of payment of any benefits hereunder. The Administrator may, from time to time,
employ agents and delegate to them such administrative duties as it sees fit, and may from time to
time consult with legal counsel who may be counsel to the Corporation. The Administrator shall
have no power to add to, subtract from or modify any of the terms of the Plan, or to change or add
to any benefits provided under the Plan, or to waive or fail to apply any requirements of
eligibility for a benefit under the Plan. No member of the Administrator shall act in respect of
his or her own Account. All decisions and determinations by the Administrator shall be final and
binding on all parties. All decisions of the Administrator shall be made by the vote of the
majority, including actions in writing taken without a meeting. All elections, notices and
directions under the Plan by a Director shall be made on such forms as the Administrator shall
prescribe.

                    Section 7.2. Amendment, Termination and Withdrawal. The Plan may be amended from time
to time or may be terminated at any time by the Board. No amendment or termination of the Plan,
however, may adversely affect the amount or timing of payment of any person’s benefits accrued
under the Plan to the date of amendment or termination without such person’s written consent.

                    Section 7.3. Successors. The Corporation shall require any successor (whether direct
or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or
substantially all of the business and/or assets of the Corporation expressly to assume and to agree
to perform this Plan in the same manner and to the same extent the Corporation would be required to
perform if no such succession had taken place. This Plan shall be binding upon and inure to the
benefit of the Corporation and any successor of or to the Corporation, including without
limitation any persons acquiring directly or indirectly all or substantially all of the business
and/or assets of the Corporation whether by sale, merger, consolidation, reorganization or
otherwise (and such successor shall thereafter be deemed the “Corporation” for the purposes of this
Plan), and the heirs, beneficiaries, executors and administrators of each Director.

                    Section 7.4. Expenses. All expenses of the Plan shall be paid by the Corporation from
funds other than those deemed Investment Funds as provided in Section 5.3, except that brokerage
commissions and other transaction fees and expenses relating to the investment of deemed assets and
investment fees attributable to commingled investment of such assets shall be paid from or charged
to such assets or earnings thereon.

ARTICLE VIII. MISCELLANEOUS

                    Section 8.1. No Continuing Right as Director. Neither the adoption or operation of
this Plan, nor any document describing or referring to this Plan, or any part thereof, shall confer
upon any Director any right to continue as a Director of the Corporation or any subsidiary of the
Corporation.

9

 

                    Section 8.2. Applicable Law. All questions arising in respect of the Plan, including
those pertaining to its validity, interpretation and administration, shall be governed, controlled
and determined in accordance with the applicable provisions of federal law and, to the extent not
preempted by federal law, the internal substantive laws of the State of Ohio.

                    Section 8.3. Interests Not Transferable. No person shall have any right to commute,
encumber, pledge or dispose of any interest herein or right to receive payments hereunder, nor
shall such interests or payments be subject to seizure, attachment or garnishment for the payments
of any debts, judgments, alimony or separate maintenance obligations or be transferable by
operation of law in the event of bankruptcy, insolvency or otherwise, all payments and rights
hereunder being expressly declared to be nonassignable and nontransferable.

                    Section 8.4. Severability. Each section, subsection and lesser section of this Plan
constitutes a separate and distinct undertaking, covenant and/or provision hereof. Whenever
possible, each provision of this Plan shall be interpreted in such manner as to be effective and
valid under applicable law. In the event that any provision of this Plan shall finally be
determined to be unlawful, such provision shall be deemed severed from this Plan, but every other
provision of this Plan shall remain in full force and effect, and in substitution for any such
provision held unlawful, there shall be substituted a provision of similar import reflecting the
original intention of the parties hereto to the extent permissible under law.

                    Section 8.5. Withholding of Taxes. The Corporation may withhold or cause to be
withheld from any amounts payable under this Plan all federal, state, local and other taxes as
shall be legally required.

                    IN WITNESS WHEREOF, Lincoln Electric Holdings, Inc. has caused this amendment and restatement
of the Lincoln Electric Holdings, Inc. Non-Employee Directors’ Deferred Compensation Plan to be
executed in its name as of January 1, 2004.

	 	 	 	 	 
	 
	 	LINCOLN ELECTRIC HOLDINGS, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ Anthony A. Massaro
	

	 	 	 
	 
	 	Its: Chairman, Chief Executive Officer
	 
	 	 	 	 

10

 

LINCOLN ELECTRIC HOLDINGS, INC.

NON-EMPLOYEE DIRECTORS’

DEFERRED COMPENSATION PLAN

(AS AMENDED, RESTATED AND RENAMED EFFECTIVE AS OF JANUARY 1, 2004)

TABLE OF CONTENTS

	 	 	 
	 	 	Page
	 
	 	 
	ARTICLE
I. PURPOSE
	 	1
	ARTICLE
II. DEFINITIONS AND CONSTRUCTION
	 	1
	Section 2.1. Definitions
	 	1
	Section 2.2. Construction
	 	3
	ARTICLE
III. PARTICIPATION AND DEFERRALS
	 	3
	Section 3.1. Eligibility and Participation
	 	3
	Section 3.2. Amount of Deferral
	 	3
	Section 3.3. Modification of Deferral Commitments
	 	4
	ARTICLE
IV. DIRECTORS’ ACCOUNTS
	 	4
	Section 4.1. Establishment of Accounts
	 	4
	Section 4.2. Crediting of Deferred Fees
	 	4
	Section 4.3. Determination of Accounts
	 	4
	Section 4.4. Adjustments to Accounts
	 	4
	Section 4.5. Statement of Accounts
	 	5
	Section 4.6. Vesting of Accounts
	 	5
	ARTICLE
V. FINANCING OF BENEFITS
	 	5
	Section 5.1. Financing of Benefits
	 	5
	Section 5.2. Security for Benefits
	 	5
	Section 5.3. Deemed Investments
	 	5
	Section 5.4. Change of Investment Request Election
	 	6
	ARTICLE
VI. DISTRIBUTION OF BENEFITS
	 	6
	Section 6.1. Settlement Date
	 	6
	Section 6.2. Amount to Be Distributed
	 	6
	Section 6.3. In-Service Distribution
	 	7
	Section 6.4. Form of Distribution
	 	7

-i-

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 
	 	 	Page
	 
	 	 
	Section 6.5. Beneficiary Designation. As used in
the Plan the term “Beneficiary” means:
	 	8
	Section 6.6. Facility of Payment
	 	8
	Section 6.7. Special Distributions
	 	8
	ARTICLE VII. ADMINISTRATION, AMENDMENT AND TERMINATION
	 	9
	Section 7.1. Administration
	 	9
	Section 7.2. Amendment, Termination and Withdrawal
	 	9
	Section 7.3. Successors
	 	9
	Section 7.4. Expenses
	 	9
	ARTICLE VIII. MISCELLANEOUS
	 	9
	Section 8.1. No Continuing Right as Director
	 	9
	Section 8.2. Applicable Law
	 	10
	Section 8.3. Interests Not Transferable
	 	10
	Section 8.4. Severability
	 	10
	Section 8.5. Withholding of Taxes
	 	10

-ii-

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