Document:

Exhibit

[FORM OF] CHANGE OF CONTROL AGREEMENT
This Change of Control Agreement (“Agreement”) is hereby entered into by and between Casey’s General Stores, Inc. (the “Company”) and [●] (the “Employee”) (each, a “Party”), effective as of the [●] day of [●], 20[●].
WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication of the Employee, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined below) of the Company; 
WHEREAS, the Company and the Employee are parties to an Employment Agreement, dated [●], [as amended] (the “Prior Agreement”) concerning the subject matter hereof, which will expire pursuant to its terms on [●] [●], 20[●] (the “Expiration Date”), which is the last day of the Change of Control Period (as such term is defined in the Prior Agreement) in effect under the Prior Agreement, and which the Parties wish to replace in its entirety with this Agreement immediately following the Expiration Date; provided, however, that, notwithstanding the foregoing, in the event that a Change of Control (within the meaning of the Prior Agreement) occurs prior to the Expiration Date, this Agreement shall not become effective and shall be null and void ab initio; and
WHEREAS, the Board believes it is imperative to diminish the inevitable distraction of the Employee by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control, to encourage the Employee’s full attention and dedication to the Company currently and in the event of any threatened or pending Change of Control, and to provide the Employee with compensation arrangements upon a Change of Control which provide the Employee with individual financial security and which are competitive with those of other corporations and, in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement. 
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
1.Certain Definitions.  (a) An “Anticipatory Qualifying Termination” means a termination of the Employee’s employment (i) by the Company other than for Cause, Disability or death or (ii) by the Employee for Good Reason, in each case, following a Potential Change of Control but prior to the date on which a Change of Control occurs so long as it is reasonably demonstrated that such termination (x) was at the request of a third party who has taken steps reasonably calculated to effect a Change of Control or (y) otherwise arose in connection with or anticipation of a Change of Control and, in either case, such Change of Control actually occurs (such terms, as defined below).
(a)    “Change of Control” shall have the meaning set forth in the Company’s 2018 Stock Incentive Plan, as amended from time to time. 
(b)    The “Change of Control Period” is the period commencing on [●] [●], 20[●], which is the day immediately following the Expiration Date, and ending on the earlier to 

occur of (i) June 30, 2023 or (ii) the first day of the month next following the Employee’s normal retirement date (“Normal Retirement Date”) under the terms of the Casey’s General Stores 401(k) Plan or any successor retirement plan (the “Retirement Plan”); provided, however, that commencing on [June 30, 2022], and on each June 30th thereafter (such date and each annual anniversary thereof is hereinafter referred to as the “Renewal Date”), the Change of Control Period shall be automatically extended so as to terminate on the earlier of (x) two years from such Renewal Date or (y) the first day of the month coinciding with or next following the Employee’s Normal Retirement Date, unless at least 60 days prior to the Renewal Date the Company shall give notice that the Change of Control Period shall not be so extended; provided, further, that in the event of a Potential Change of Control, the Company may not provide such notice until at least one month following the public announcement of the abandonment of the transaction or series of transactions that resulted in a Potential Change of Control.  Notwithstanding the foregoing, in the event that a Change of Control (within the meaning of the Prior Agreement) occurs prior to the Expiration Date, the Change of Control Period hereunder shall not commence and this Agreement shall not become effective and shall be null and void ab initio.
(c)    The “Effective Date” shall be the first date during the Change of Control Period on which a Change of Control occurs.  Anything in this Agreement to the contrary notwithstanding, in the event the Employee experiences an Anticipatory Qualifying Termination, for all purposes of this Agreement the “Effective Date” shall mean the first date during the Change of Control Period on which a Potential Change of Control occurs.
(d)    The “Employment Period” shall be the period commencing on the first date during the Change of Control Period on which a Change of Control occurs and ending on the earlier to occur of (i) the second anniversary of such date or (ii) the first day of the month coinciding with or next following the Employee’s Normal Retirement Date.
(e)    “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”), as amended, and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.
(f)    A “Potential Change of Control” shall be deemed to have occurred if either of the following events shall have occurred:  (i) the Company enters into an agreement, the consummation of which would result in the occurrence of a Change of Control; or (ii) the Company or any Person publicly announces an intention to take or to consider taking actions which, if consummated, would constitute a Change of Control.
2.    Termination.  (a) Death or Disability.  The Employee’s employment with the Company shall terminate automatically upon the Employee’s death.  In the event of the Employee’s Disability (as defined below), the Company may give to the Employee written notice of its intention to terminate the Employee’s employment.  In such event, the Employee’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Employee (the “Disability Termination Date”); provided that, within the 30 days after such receipt, the Employee shall not have returned to full-time performance of the Employee’s duties.  For purposes of this Agreement, “Disability” means (i) permanent and total 

disability as determined under the Company’s long-term disability plan applicable to the Employee or (ii) if there is no such plan applicable to the Employee, a disability which, at least 26 weeks after its commencement, is determined to be total and permanent by a physician selected by the Company or its insurers; provided, however, that if any amounts payable under this Agreement constitute deferred compensation (within the meaning of Code Section 409A, Internal Revenue Code (the “Code”), including current and future guidance and regulations interpreting such provisions (collectively, “Code Section 409A”)), and payment of such amount is intended to be triggered pursuant to Code Section 409A(a)(ii) by the Employee’s disability, such term shall mean that the Employee is considered “disabled” within the meaning of Code Section 409A. 
(a)    Cause.  The Company may terminate the Employee’s employment for “Cause.” For purposes of this Agreement, “Cause” means (i) an act or acts of personal dishonesty taken by the Employee and intended to result in substantial personal enrichment of the Employee at the expense of the Company; (ii) willful and deliberate failure to perform the Employee’s material duties to the Company and which is not remedied within 10 days after receipt of written notice from the Company; or (iii) the conviction of the Employee of a felony.
(b)    Good Reason.  The Employee’s employment may be terminated by the Employee for Good Reason.  For purposes of this Agreement, “Good Reason” means
(i)    the assignment to the Employee of any duties inconsistent in any respect with the Employee’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as in effect immediately prior to the Effective Date, or any other action by the Company which results in a diminution in such position, authority, duties or responsibilities;
(ii)    a reduction in the Employee’s annual base salary, annual bonus target opportunity or target long-term incentive opportunity (each, in effect immediately prior to the Effective Date); 
(iii)    the Company’s requiring the Employee to relocate the Employee’s primary workplace more than 35 miles from such location immediately prior to the Effective Date; 
(iv)    the Company’s or any of its subsidiary’s material breach of this Agreement or any other agreement entered into between the Employee and the Company or its subsidiaries; 
(v)    the Company’s failure to pay any compensation due and owing to the Employee; or
(vi)    any failure by the Company to comply with and satisfy Section 9(c) of this Agreement.

Notwithstanding the foregoing, the occurrence of any of the events described in the immediately preceding clauses (i) through (vi) above shall not constitute Good Reason unless, (x) in accordance with Section 2(d) hereof, the Employee provides the Company with written notice within 60 calendar days after the initial occurrence of any such event that the Employee believes constitutes Good Reason; (y) the Company thereafter fails to cure such event within 30 calendar days after receipt of such notice; and (z) the Employee’s date of termination as a result of such event occurs within 30 calendar days after the expiration of the cure period.  For purposes of this Section 2(c), during the Employment Period, any good faith determination of “Good Reason” made by the Employee shall be conclusive.
(c)    Notice of Termination.  Any termination by the Company for Cause or by the Employee for Good Reason shall be communicated by Notice of Termination to the other Party hereto given in accordance with Section 10(c) of this Agreement.  For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon; (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated; and (iii) in the case of a termination by the Company for Cause, if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the Date of Termination (which date shall be not more than 15 days after the giving of such notice).  The failure by the Employee to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason shall not waive any right of the Employee hereunder or preclude the Employee from asserting such fact or circumstance in enforcing his or her rights hereunder.
(d)    Date of Termination.  “Date of Termination” means the date of receipt of the Notice of Termination or any later date specified therein, as the case may be; provided, however, that (i) if the Employee’s employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the Employee of such termination and (ii) if the Employee’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Employee or the Disability Termination Date, as the case may be.
3.    Obligations of the Company upon Termination.
(a)    Death.  If, during the Employment Period, the Employee’s employment is terminated by reason of the Employee’s death, this Agreement shall terminate without further obligations to the Employee’s legal representatives under this Agreement, other than (i) all rights to advancement and indemnification in respect of the Employee’s service as a director or officer of the Company or any of its subsidiaries, which shall continue without regard to termination of this Agreement or the Employee’s employment with the Company, and (ii) in respect of (A) the Employee’s full base salary through the Date of Termination at the rate in effect on the Date of Termination or, if higher, at the rate in effect immediately prior to the Effective Date through the Date of Termination (the “Highest Base Salary”); (B) the product of the annual bonus earned by the Employee for the last full fiscal year and a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 

365; (C) any compensation previously deferred by the Employee (together with any accrued interest thereon) and not yet paid by the Company and any accrued vacation pay not yet paid by the Company; (D) all reasonable expenses incurred by the Employee through the Date of Termination, which are reimbursable in accordance with the Company’s policies as in effect from time to time; provided that, following the Effective Date, such reimbursement policies must be at least as favorable to the Employee as in effect immediately prior to the Effective Date; and (E) other vested benefits to which the Employee is entitled in accordance with the terms of the applicable plans and agreements of the Company and its subsidiaries (excluding any such plans and agreements of the Company and its subsidiaries providing for severance payments and/or benefits) (such amounts specified in clause (ii) are hereinafter referred to as “Accrued Obligations”).  All such Accrued Obligations shall be paid to the Employee’s estate or beneficiary, as applicable, in a lump-sum in cash within 30 days of the Date of Termination or within such other period required pursuant to the applicable plan or agreement.  Anything in this Agreement to the contrary notwithstanding, the Employee’s family shall be entitled to receive benefits at least equal to the most favorable benefits provided by the Company and any of its subsidiaries to surviving families of employees of the Company and such subsidiaries under such plans, programs, practices and policies relating to family death benefits, if any, in accordance with the most favorable plans, programs, practices and policies of the Company and its subsidiaries in effect immediately preceding the Effective Date or, if more favorable to the Employee and/or the Employee’s family, as in effect on the date of the Employee’s death with respect to other key employees of the Company and its subsidiaries and their families.
(b)    Disability.  If, during the Employment Period, the Employee’s employment is terminated by reason of the Employee’s Disability, this Agreement shall terminate without further obligations to the Employee, other than (i) in respect of the Accrued Obligations, which shall be paid to the Employee in a lump-sum in cash within 30 days of the Date of Termination or within such other period required pursuant to the applicable plan or agreement, and (ii) all rights to advancement and indemnification in respect of the Employee’s service as a director or officer of the Company or any of its subsidiaries, which shall continue without regard to termination of this Agreement or the Employee’s employment with the Company.  Anything in this Agreement to the contrary notwithstanding, the Employee shall be entitled after the Disability Termination Date to receive disability and other benefits at least equal to the most favorable of those provided by the Company and its subsidiaries to disabled employees and/or their families in accordance with such plans, programs, practices and policies relating to disability, if any, in accordance with the most favorable plans, programs, practices and policies of the Company and its subsidiaries in effect immediately preceding the Effective Date or, if more favorable to the Employee and/or the Employee’s family, as in effect at any time thereafter with respect to other key employees of the Company and its subsidiaries and their families.
(c)    Cause; Other than for Good Reason.  If, during the Employment Period, the Employee’s employment shall be terminated by the Company for Cause or by the Employee (other than for Good Reason), this Agreement shall terminate without further obligations to the Employee other than (i) in respect of the Accrued Obligations (excluding the prorated annual bonus), which shall be paid to the Employee in a lump-sum in cash within 30 days of the Date of Termination or within such other period required pursuant to the applicable plan or agreement, 

and (ii) all rights to advancement and indemnification in respect of the Employee’s service as a director or officer of the Company or any of its subsidiaries, which shall continue without regard to termination of this Agreement or the Employee’s employment with the Company.
(d)    Good Reason; Other Than for Cause or Disability.  If, during the Employment Period, the Company shall terminate the Employee’s employment other than for Cause, Disability, or death or if the Employee shall terminate his or her employment for Good Reason:
(i)    The Company shall pay to the Employee in a lump-sum in cash within 30 days after the Date of Termination (or, in the case of the Accrued Obligations, within such other period specified by any applicable plan or agreement) the aggregate of the following amounts:
A.    Accrued Obligations (other than the prorated annual bonus); 
B.    the product of (x) the annual bonus earned by the Employee for the last full fiscal year (if any) ending during the Employment Period or, if higher, the annual bonus earned by the Employee for the last full fiscal year prior to the Effective Date (as applicable, the “Recent Bonus”) and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination and the denominator of which is 365; 
C.    the product of (x) two and (y) the sum of (i) the Highest Base Salary and (ii) the Recent Bonus; and
D.    an amount equal to 24 months of the monthly COBRA premiums that the Employee would be required to pay to continue his or her group health coverage as in effect on the Date of Termination for himself or herself and his or her eligible covered dependents, which payment will be made less applicable withholdings and regardless of whether the Employee elects COBRA continuation coverage.
(ii)    The Employee shall be entitled to all rights to advancement and indemnification in respect of the Employee’s service as a director or officer of the Company or any of its subsidiaries, which shall continue without regard to termination of this Agreement or the Employee’s employment with the Company.
(e)    Anticipatory Qualifying Termination.  In the event that the Employee experiences an Anticipatory Qualifying Termination during the Change of Control Period, then the Employee shall be entitled to receive (i) any unpaid Accrued Obligations (other than the prorated annual bonus), (ii) a lump-sum cash payment within 30 days after the Change of Control in an aggregate amount equal to the excess, if any, of (x) the aggregate amount of the severance payments provided for in Sections 3(d)(i)(B) through (D) hereof over (y) the aggregate amount of severance payments the Employee received or is entitled to receive from the Company under any applicable plan of the Company or any of its subsidiaries, or any applicable agreement 

between the Employee and the Company or any of its subsidiaries other than this Agreement, as a result of the Employee’s Anticipatory Qualifying Termination, and (iii) all rights to advancement and indemnification in respect of the Employee’s service as a director or officer of the Company or any of its subsidiaries, which shall continue without regard to termination of this Agreement or the Employee’s employment with the Company.
4.    Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit the Employee’s continuing or future participation in any benefit, bonus, incentive or other plans, programs, policies or practices, provided by the Company or any of its subsidiaries and for which the Employee may qualify (other than any other plan providing for severance payments or benefits), nor shall anything herein limit or otherwise affect such rights as the Employee may have under any stock option, restricted stock unit, performance-based restricted stock unit or other agreements with the Company or any of its subsidiaries.  For the avoidance of doubt, the Employee’s equity awards that are outstanding on the Date of Termination, if any, shall be treated in accordance with the 2009 Stock Incentive Plan and the 2018 Stock Incentive Plan (each, as amended from time to time), the applicable award agreements and any other agreement entered into between the Employee and the Company or its subsidiaries governing the terms of such equity awards. 
5.    Full Settlement.  The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Employee or others.  In no event shall the Employee be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Employee under any of the provisions of this Agreement.  In the event that the Employee prevails in a legal action, suit or proceeding against the Company pursuant to Section 6 hereof, the Company agrees to pay, to the full extent permitted by law, until the Employee’s death and, to his or her successors in interest, for a period of 10 years thereafter, all legal fees and expenses which the Employee may reasonably incur as a result of such contest by the Company, the Employee or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Employee about the amount of any payment pursuant to Section 3(d) or 3(e) of this Agreement), plus in each case interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code. 
6.    Governing Law; Jurisdiction.   This Agreement and any disputes arising hereunder or related hereto shall be governed by, and for all purposes construed in accordance with, the laws of the State of Iowa, without regard to the principles or rules of conflict of laws thereof.  Unless the Parties agree otherwise, any legal action, suit or proceeding against either Party arising out of or in connection with this Agreement or disputes relating hereto shall be brought exclusively in the United States District Court for the Southern District of Iowa or, if such court does not have subject matter jurisdiction, the state courts of Iowa located in Des Moines, Iowa. The Parties hereby consent and agree to submit to the jurisdiction of the State of Iowa for purposes of enforcing this Agreement. 

7.    Limitation on Certain Payments.  (a) Notwithstanding anything in this Agreement to the contrary, in the event it is determined by reasonable computation by a nationally recognized certified public accounting firm that is designated by the Company prior to the Change of Control (which accounting firm shall in no event be the accounting firm for the entity seeking to effectuate such Change of Control) (the “Accountant”), which determination shall be reflected in a document delivered to the Employee setting forth in reasonable detail the basis of the Accountant’s calculations (including any assumptions that the Accountant made in performing the calculations), that part or all of the consideration, compensation or benefits to be paid to the Employee under this Agreement or otherwise constitute “parachute payments” under Section 280G(b)(2) of the Code, then, if the aggregate present value of such parachute payments, singularly or together with the aggregate present value of any consideration, compensation or benefits to be paid to the Employee under any other plan, arrangement or agreement which constitute “parachute payments” (collectively, the “Parachute Amount”) exceeds the maximum amount that would not give rise to any liability under Section 4999 of the Code, the amounts constituting “parachute payments” which would otherwise be payable to the Employee or for the Employee’s benefit shall be reduced to the maximum amount that would not give rise to any liability under Section 4999 of the Code (the “Reduced Amount”); provided that such amounts shall not be so reduced if the Accountant determines that without such reduction the Employee would be entitled to receive and retain, on a net after-tax basis (including, without limitation, any excise taxes payable under Section 4999 of the Code in respect of the Parachute Amount), an amount that is greater than the amount, on a net after-tax basis, that the Employee would be entitled to retain upon receipt of the Reduced Amount.  For the avoidance of doubt, this provision, shall reduce the Parachute Amount otherwise payable to the Employee, only if doing so would place the Employee in a better net after-tax economic position as compared with not doing so (taking into account any excise taxes payable in respect of such Parachute Amount).  In connection with making determinations under this Section 7(a), the Accountant shall take into account any positions to mitigate any excise taxes payable under Section 4999 of the Code, such as the value of any reasonable compensation for services to be rendered by the Employee before or after the Change of Control, including any amounts payable to the Employee following the Employee’s termination of employment hereunder with respect to any non-competition provisions that may apply to the Employee, and the Company shall cooperate in the valuation of any such services, including any non-competition provisions.    
(a)    If the determination made pursuant to Section 7(a) results in a reduction of the payments that would otherwise be paid to the Employee except for the application of Section 7(a), the Company shall promptly give the Employee notice of such determination.  Such reduction in payments shall be first applied to reduce any cash payments that the Employee would otherwise be entitled to receive (whether pursuant to this Agreement or otherwise) and shall thereafter be applied to reduce other payments and benefits, in each case, in reverse order beginning with the payments or benefits that are to be paid the furthest in time from the date of such determination, unless, to the extent permitted by Code Section 409A, the Employee elects to have the reduction in payments applied in a different order; provided that, in no event may such payments be reduced in a manner that would result in subjecting the Employee to additional taxation under Code Section 409A.  Within five business days following such determination, the Company shall pay or distribute to the Employee, or for the Employee’s benefit, such amounts as 

are then due to the Employee under this Agreement and shall promptly pay or distribute to the Employee, or for the Employee’s benefit, in the future such amounts as become due to the Employee under this Agreement.
(b)    As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of a determination hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the Employee’s benefit pursuant to this Agreement or otherwise that should not have been so paid or distributed (each, an “Overpayment”) or that additional amounts that will have not been paid or distributed by the Company to or for the Employee’s benefit pursuant to this Agreement could have been so paid or distributed (each, an “Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder.  In the event that the Accountant (based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or the Employee, with respect to which the Accountant believes the Internal Revenue Service should prevail) determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for the Employee’s benefit shall be repaid by the Employee to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which the Employee is subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes.  In the event that the Accountant, based on controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the Employee’s benefit together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.
8.    Confidential Information.  (a) The Employee shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its subsidiaries, and their respective businesses, which shall have been obtained by the Employee during the Employee’s employment by the Company or any of its subsidiaries and which shall not be or become public knowledge (other than by acts by the Employee or his or her representatives in violation of this Agreement).  After termination of the Employee’s employment with the Company, the Employee shall not, without the prior written consent of the Company, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it.  In no event shall an asserted violation of the provisions of this Section 8 constitute a basis for deferring or withholding any amounts otherwise payable to the Employee under this Agreement.  
(a)    This Agreement is not intended to limit or restrict, and shall not be interpreted in any manner that limits or restricts, the Employee from exercising any legally protected whistleblower rights (including pursuant to Section 21F of the Exchange Act (“Section 21F”)) or receiving an award for information provided to any government agency under any legally protected whistleblower rights. Notwithstanding anything in this Agreement to the contrary, nothing in or about this Agreement prohibits the Employee from: (i) filing and, as provided for under Section 21F, maintaining the confidentiality of a claim with the Securities and Exchange Commission (the “SEC”); (ii) providing confidential information to the SEC, or 

providing the SEC with information that would otherwise violate this Section 8, to the extent permitted by Section 21F; (iii) cooperating, participating or assisting in an SEC investigation or proceeding without notifying the Company; or (iv) receiving a monetary award as set forth in Section 21F. 
9.    Successors.  (a) This Agreement is personal to the Employee and without the prior written consent of the Company shall not be assignable by the Employee otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by the Employee’s legal representatives.
(a)    This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.
(b)    The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.
10.    Miscellaneous.  (a) The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.
(a)    This Agreement is intended to satisfy, or be exempt from, the requirements of Code Section 409A and should be interpreted accordingly. For purposes of Code Section 409A, any installment payments provided under this Agreement shall each be treated as a separate payment. Notwithstanding anything to the contrary in this Agreement, if any amount payable pursuant to this Agreement constitutes a deferral of compensation subject to Code Section 409A, and if such amount is payable as a result of the Employee’s “separation from service” at such time as the Employee is a “specified employee” (within the meaning of those terms as defined in Code Section 409A), then no payment shall be made, except as permitted under Code Section 409A, prior to the first business day after the date that is six months after the Employee’s separation from service.  Except for any tax amounts withheld by the Company from the payments or other consideration hereunder and any employment taxes required to be paid by the Company, the Employee shall be responsible for payment of any and all taxes owed in connection with the consideration provided for in this Agreement.  To the extent required to avoid any accelerated taxation or penalties under Code Section 409A, amounts reimbursable to the Employee under this Agreement shall be paid on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursements (and in-kind benefits provided) during any one year may not affect amounts reimbursable or provided in any subsequent year and may not be liquidated or exchanged for any other benefit.  The Employee shall be solely responsible for the payment of any taxes and penalties incurred under Code Section 409A.

(b)    All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:  If to the Company, to Casey’s General Stores, Inc., P.O. Box 3001, One SE Convenience Blvd., Ankeny, Iowa 50021, Attn:  General Counsel; and if to the Employee, to his or her address appearing on the books of the Company, or to his or her residence, or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.
(c)    The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.
(d)    The Company may withhold from any amounts payable under this Agreement such Federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.
(e)    The Employee’s failure to insist upon strict compliance with any provision hereof shall not be deemed to be a waiver of such provision or any other provision thereof.
(f)    This Agreement contains the entire understanding of the Company and the Employee with respect to the subject matter hereof and will supersede and replace the Prior Agreement as of the Expiration Date; provided that a Change of Control (within the meaning of the Prior Agreement) has not occurred prior to the Expiration Date.
(g)    The Employee and the Company acknowledge that the employment of the Employee by the Company is “at will”, and, prior to the Effective Date, may be terminated by either the Employee or the Company at any time, with or without cause, and with or without prior notice.  The Employee acknowledges that this Agreement does not constitute a contract of continued employment for any specified term, or a contract of any type for any benefits or rights of employment, until the Effective Date hereof, and that upon a termination of the Employee’s employment prior to the Effective Date, there shall be no further rights under this Agreement.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date written above.
	
		
	COMPANY: 
CASEY’S GENERAL STORES, INC.

	

By:
	 

	 
	Name:   
Title:     

	 
	 

	
		
	EMPLOYEE:

	

By:ex_167600.htm

Exhibit 10.1

 

 

 

 

 

 

 

 

 

Deferred Compensation Plan for

Directors of 

First Community Bankshares Inc. and Affiliates

(includes Section 409A provisions)

 

 

 

 

1

 

 

Amended & Restated 

January 1, 2019

Table of Contents

 

	Article	 	 	Page
	 	 	 	 
	
			I

				 	
			Definitions

				
			4

			
	 	 	 	 
	
			II

				 	
			Participation

				
			10

			
	 	 	 	 
	
			III

				 	
			Contributions

				
			10

			
	 	 	 	 
	
			IV

				 	
			Distributable Events

				
			12

			
	 	 	 	 
	
			V

				 	
			Vesting and Substantial Risk of Forfeiture

				
			14

			
	 	 	 	 
	
			VI

				 	
			Benefit Payments

				
			14

			
	 	 	 	 
	
			VII

				 	
			Trust and Plan Earnings

				
			21

			
	 	 	 	 
	
			VIII

				 	
			Committee

				
			23

			
	 	 	 	 
	
			IX

				 	
			Claims Procedure

				
			23

			
	 	 	 	 
	
			X

				 	
			Unfunded Obligation

				
			25

			
	 	 	 	 
	
			XI

				 	
			Administrative and Fiduciary Responsibilities

				
			25

			
	 	 	 	 
	
			XII

				 	
			Spendthrift

				
			27

			
	 	 	 	 
	
			XIII

				 	
			Amendment and Plan Termination

				
			27

			
	 	 	 	 
	
			XIV

				 	
			Miscellaneous

				
			28

			

 

2

 

 

First Community Bankshares, Inc. and Affiliates

Directors’ Deferred Compensation Plan 

 

 

First Community Bankshares, Inc. previously adopted this non-qualified deferred compensation Plan for the Directors of First Community Bancshares, Inc. and Affiliates. The Plan is was later restated August 22, 2006, to comply with Internal Revenue Code Section 409.

 

Effective January 1, 2019, the Plan is again restated to clarify certain provisions of IRS Code Section 409(A) and shall be shall be known as the Deferred Compensation Plan for Directors of First Community Bankshares, Inc. & Affiliates. 

 

The purpose of this Plan is to provide additional financial incentives and retirement security for the Directors of First Community Bankshares, Inc. and its Affiliates as approved for participation by the Board, or a Committee of the Board, and to allow for their deferral of their Directors’ fees.

 

This is intended to be a non-qualified Plan.

 

Furthermore, this Plan is amended and restated effective January 1, 2019, and is intended to comply with Section 409A of the Internal Revenue Code and Regulations thereto.

 

3

 

 

I.     DEFINITIONS

 

	
			1.1 

				
			“Account” means the account the Employer establishes under this Plan for each Participating Director which include the following:

			

 

“Elective Deferral Account” means the Deferred Compensation Account with respect to a Director’s total interest in the Plan resulting from the deferral of fees from his Compensation from the amount of such Compensation earned by the Employer made on behalf, in lieu of cash, pursuant to a compensation deferral election, and as provided in Section 3.1 and any earnings on this account thereon.

 

	
			1.2

				
			“Anniversary Date” means December 31, the last day of the Plan Year.

			

 

	
			1.3

				
			“Aggregate Plans” means this Plan and any other like-type plan or any account balance plan of the Employer in which a Participant participates and as to which the Plan or Applicable Guidance (defined below) requires the aggregation of all such non-qualified deferred compensation.

			

 

	
			1.4

				
			“Applicable Guidance” means as the context requires Code Sections 83, 409A, and 457; and Treas. Reg. 1.83, Treas. Reg. 1.409A, Treas. Reg 1.457; and any other written Treasury or IRS guidance regarding or affecting Code Sections 83, 409A, or 457. Applicable Guidance also includes through December 31, 2006, or other applicable date, Notice 2005-1.

			

 

	
			1.5

				
			“Beneficiary” means the person or persons entitled to receive benefits under this Plan in the event of death of a Plan Participant.

			

 

	
			1.6

				
			“Change of Control”- In accordance with Code Section 409A, a “Change in Control” shall be deemed to have occurred under this Plan, upon the occurrence of any one or more of the events described in Sections 1.6(a), 1.6(b) or 1.6(c) below, in each case as defined herein and as further defined and interpreted in Section 409A:

			

 

	 	
			(a)

				
			Change in Ownership of the Employer – A “change in ownership” occurs on the date that any one person, or more than one persons acting as a group, acquires ownership of stock of the Employer that, together with stock already held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Employer.

			

 

	 	
			(b)

				
			Change in Effective Control of the Employer – A “change in effective control” occurs on the date either one of the following events occurs:

			

 

	 	
			(i)

				
			Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Employer possessing 30% or more of the total voting power of the stock of the Employer; or

			

 

4

 

 

	 	
			(ii)

				
			A majority of members of the Employer’s Board of Directors are replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Employer’s Board of Directors prior to the date of the appointment or election; provided that, for purposes of this paragraph (b) the term Employer shall refer to the Employer for which no other corporation is a majority shareholder for purposes of this paragraph.

			

 

	 	
			(c)

				
			Change in the Ownership of a Substantial Portion of the Assets of the Employer. A “change in the ownership of a substantial portion of the assets of the Employer” occurs on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Employer that have a total gross fair value equal to 40% or more of the total gross fair market value of all the assets of the Employer immediately prior to such acquisition or acquisitions.

			

 

The occurrence of an event described in this Section 1.6 will be objectively determinable.

 

	
			1.7

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

			

 

	
			1.8

				
			“Compensation” means the “gross fees (or earnings)” including all form of remuneration taxable for federal income tax purposes, plus all other payments to an Eligible Participant in the course of the Employer’s trade or business, for which the Employer must furnish the Eligible Director a written statement under Code §6041.

			

 

	
			1.9

				
			“Deferred Compensation” means the Compensation that the Participant has deferred under this Plan from his earning under the terms of the Plan and Compensation which, under the relevant facts and circumstances, the Participant has a Legally Binding Right to payment of in a future Taxable Year as provided in Treas. Reg. 1.409A-1(b)(1).

			

 

	
			1.10

				
			“Deferred Compensation Account” means the total of the Participant’s Elective Deferral Account, and includes Earnings on such amounts.

			

 

	
			1.11

				
			“Disability” For purposes of this Plan and in accordance with Code Section 409A, a participant shall be considered disabled if the participant either is:

			

 

	 	
			(a)

				
			Unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or

			

 

	 	
			(b)

				
			By reason of any medically determinable physical or mental impairment (which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months) receiving income replacement benefits for a period of 3 or more months under an accident and health plan covering employees of the Employer; or

			

 

	 	
			(c)

				
			Determined to be disabled by the Social Security Administration.

			

 

	
			1.12

				
			“Director” means a member of the Board of Directors of First Community Bankshares, Inc. or its Affiliates.

			

 

5

 

 

	
			1.13

				
			“Earnings” means Trust earnings, gains or losses applicable to a Participant’s Accounts. In the absence of a Trust, Earnings means the Plan’s actual or notional earnings, gain and loss applicable to a Participant’s Account as described in Sections 7.3 and 7.4.

			

 

	
			1.14

				
			“Effective Date” means the date the Plan was originally established.

			

 

	
			1.15

				
			“Elective Deferral” means Compensation a Participant elects to defer into the Participant’s Deferred Compensation Account under the Plan.

			

 

	
			1.16

				
			“Eligible Director” means an Director of the Employer and or its Affiliates (as described in Treas. Reg. § 1.409A-1(f)(1)). However, any salaried officer or employee of the Employer who is also a Director will not be eligible to participate in this Plan.

			

 

	
			1.17

				
			“Employer” means First Community Bankshares, Inc (EIN #55-0694814) a Virginia Corporation, located in Bluefield, Virginia, and including any of its subsidiaries or its affiliated employers who adopt this Plan.

			

 

	
			1.18

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

			

 

	
			1.19

				
			“Legally Binding Right” means, in reference to Compensation, the grant by the Employer to the Participant of a right to Compensation where, after the Participant has performed the services which created the Legally Binding Right, the Compensation is not subject to unilateral reduction or elimination by the Employer or any other person, the Employer, based on the facts and circumstances and in accordance with. Treas. Reg. § 1.409A-1(b)(1), will determine: (i) whether a Legally Binding Right exists; or (ii) whether a Legally Binding right does not exist on account of the existence of negative discretion which has substantive significance to reduce or eliminate the Compensation.

			

 

	
			1.20

				
			“Participant” means those Directors of First Community Bankshares, Inc. and its Affiliates that the Employer has approved for Plan participation through the Committee described in Section VIII.

			

 

	
			1.21

				
			“Performance-Based Compensation” means Compensation where the amount of, or entitlement to, the Compensation is contingent on satisfaction of pre-established organizational or individual performance criteria relating to a performance period of at least 12 consecutive months during which the Participant performs services. The Employer must establish the organizational or individual performance criteria in writing not later than 90 days after commencement of the performance period and the outcome must be substantially uncertain at the time that the Employer establishes the performance criteria. The Employer may establish performance criteria without the necessity of action by its shareholders, Board of Directors, compensation committee or similar entities.

			

 

6

 

 

Performance-Based Compensation may be based on subjective performance criteria provided:

 

	 	
			(a)

				
			the criteria relates to the Participant’s performance, a group of service providers that includes the Participant or a business unit for which the participant provides services which may include the Employer; and

			

	 	
			(b)

				
			the person who decides whether the subjective performance criteria have been met is someone other than the Participant, the Participant’s family member (within the meaning of Code § 267(c)(4) applied as if the family of an individual includes the spouse of any member of the family), a person under the supervision of the Participant or such a family member, or where the compensation of the decision maker is controlled in whole or in part by the Participant or such a family member.

			

 

The Employer will determine the status of Compensation as Performance-Based Compensation in accordance with Treas. Reg. § 1.409A-1(e) and Applicable Guidance.

 

	
			1.22

				
			“Plan” means the Deferred Compensation Plan for Directors of First Community Bankshares, Inc and Affiliates as incorporated in this document and any amendments hereto. For purposes of applying Code §409A requirements: (i) this Plan is an account balance plan under Treas. Reg. § 1.409A-1(c)(2)(i)(A), and (ii) this Plan constitutes a separate plan for each Participant.

			

 

	
			1.23

				
			“Plan Year.” The Plan Year shall begin each January 1 and end 12 months later on the following December 31.

			

 

	
			1.24

				
			“Retirement Age” means for an Eligible Director his 75th birthday.

			

 

	
			1.25

				
			“Separation from Service” means the date of a Director’s separation from service within the meaning of Applicable Guidance and further includes a termination of service with the Employer whether on account of death, Disability, nor-reelection or otherwise. Furthermore, in considering whether a Separation from Service has occurred, the following special rules will apply:

			

 

	 	
			(a)

				
			Insignificant Service. If an Eligible Director continues to perform services for the Employer, but the services are not more than insignificant, the Eligible Director incurs a Separation from Service. For this purpose, an Eligible Director will be deemed to provide more than insignificant service (and no Separation from Service occurs) if the Eligible Director provides bona fide services which are equal to at least 20% of the average level of bona fide services performed during the immediately preceding thirty-six (36) months of service, or the full period the Eligible Director served the Employer if less than 36 months.

			

 

	 	
			(b)

				
			Significant Non-Director Service. In addition, a former Eligible Director who continues to render significant services to the Employer in a non-Director capacity is not deemed to have incurred a Separation from Service. For this purpose a former Eligible Director is deemed to render significant service if the former Eligible Director provides bona fide services which are equal to at least 50% of the average level of bona fide services performed during the immediately preceding thirty-six (36) months of employment, or the full period the Eligible Director served the Employer if less than 36 months.

			

 

7

 

 

	 	
			(c)

				
			Employer Determination. The Employer will determine whether an Eligible Director has incurred a Separation from Service: (i) based on the facts and circumstances; (ii) subject to the provisions of this Section 1.25; and (iii) without application of the “same desk rule” under Rev. 79-336 and Rev. Rul. 80-229. The Employer will determine whether an Eligible Director has incurred a Separation from Service in accordance with Treas. Reg. §1.409A-1(h) and Applicable Guidance.

			

 

	
			1.26

				
			“Service Year” means a Participant’s Taxable Year (calendar year) in which the Participant performs services which give rise to Compensation.

			

 

	
			1.27

				
			“Specified Employee” means a Participant who is a key employee as described in Code § 416(i), disregarding paragraph (5) thereof. However, a Participant is not a Specified Employee unless any stock of the Employer is publicly traded on an established securities market or otherwise. If a Participant is a Key Employee at any time during the 12 months ending on the December 31 (identification date), the Participant is a Specified Employee for the 12 month period commencing on the first day of the fourth month following the identification date. The Employer has designated December 31 as the identification date and the same identification date must apply as to all deferred compensation arrangements of the Employer. The Employer may amend this Plan to change the identification date but any such amendment is not effective for 12 months after the adoption of the amendment.

			

 

Generally a Director is deemed to be a “Key Employee” if he/she is a 5% or more shareholder of the Employer.

 

The Employer’s election of an identification date of December 31, applies to any Separation from Service occurring on or after January 1, 2005. The Employer, in determining whether this Section 1.27 and all related Plan provisions apply, will determine whether the Employer has any publicly traded stock as of the date of a Participant’s Separation from Service. In the case of a spin-off or merger, or in the case of nonresident alien Employees, the Employer will apply the Specified Employee provisions of the Plan in accordance with Treas. Reg. § 1.409A-1(i) and other Applicable Guidance.

 

	
			1.28

				
			“Specified Time or Fixed Schedule” means, in reference to a payment of Deferred Compensation, at the time of the deferral of the Compensation (or at the time the Employer makes the contribution to a Participant’s Accounts) the Employer can objectively determine: (i) the amount payable; and (ii) the payment date or dates. An amount is objectively determinable if the deferral election specifically identifies the amount or if the Employer can determine the amount pursuant to a nondiscretionary formula. For this purpose, the Participant’s or the Employer’s designation of a calendar year or years for payment without more is deemed to mean payment on January 1 in such years. A Specified Time or Fixed Schedule also means as described in Treas. Reg. § 1.409A-3(i)(1) and other Applicable Guidance.

			

 

A payment will be treated as made on a Fixed Time or on a Fixed Schedule if the payment (or payments) is made is by the later of either: (i) by the end of the calendar year in which a specified fixed payment date, or due date of a payment under a fixed schedule occurs, or (ii) the 15th day of the third month following such fixed date or due date.

 

8

 

 

	
			1.29 

				
			“Substantial Risk of Forfeiture” means Compensation which is payable conditioned: (i) on the performance of substantial future services by any person including the Participant; or (ii) on the occurrence of a condition related to a purpose of the Compensation, and where under clause (i) or (ii) the possibility of forfeiture is substantial. A condition related to the purpose of the Compensation relates to the Participant’s performance for the Employer or to the Employer’s business activities or organizational goals.

			

 

A Substantial Risk of Forfeiture does not include any addition of a condition after a Legally Binding Right to the Compensation arises or any extension of a period during which the Compensation is subject to a Substantial Risk of Forfeiture. Compensation is not subject to a Substantial Risk of Forfeiture merely because payment is conditioned on the participant’s refraining from performing services. Compensation is not subject to a Substantial Risk of Forfeiture beyond the date or time that the Participant otherwise could have elected to receive the Compensation unless the amount of Compensation (disregarding Earnings) is materially greater than the amount of Compensation that the Participant otherwise could have elected to receive. As such, a Participant’s Elective Deferrals generally may not be made subject to a Substantial Risk of Forfeiture. In determining whether the possibility of forfeiture is substantial in the case of rights to Compensation granted to a Participant who owns significant voting power or value in the Employer, the Employer will apply Treas. Reg. § 1.409A-1(d)(3) and Applicable Guidance.

 

	
			1.30 

				
			“Taxable Year” means the 12 consecutive month period ending each December 31.

			

 

	
			1.31

				
			“Trust” means any Rabbi Trust established by the Employer to informally fund this Plan.

			

 

	
			1.32

				
			“Unforeseeable Emergency” means:

			

 

	 	
			(i)

				
			a severe financial hardship of the Participant or Beneficiary resulting from an illness or accident of the Participant or Beneficiary, of the Participant’s spouse or of the Beneficiary’s spouse, or the Participant’s or Beneficiary’s dependent (as defined in Code § 152(a));

			

 

	 	
			(ii)

				
			loss of the Participant’s or Beneficiary’s property due to casualty; or

			

 

	 	
			(iii)

				
			other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the Participant’s or Beneficiary’s control.

			

 

The Employer will determine whether a Participant or Beneficiary incurs an Unforeseeable Emergency based on the relevant facts and circumstances and in accordance with Treas. Reg. § 1.409A-3(i)(3) or Applicable Guidance. But in any case, the Plan may not make payment to the extent that the Unforeseeable Emergency may be relieved: (i) through reimbursement or compensation by insurance or otherwise; (ii) by liquidation of the Participant’s assets to the extent that such liquidation of assets would not itself cause severe financial hardship; or (iii) by the Participant’s cessation of any Elective Deferrals under the Plan.

 

9

 

 

The Plan must limit the amount of any payment based on Unforeseeable Emergency to the amount that is reasonably necessary to satisfy the emergency need, which may include amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the payment. The Employer in making the determination as to the amount of payment must take into account any additional Compensation available to the Participant if he/she cancels an Elective Deferral election under Section 3.1(d).

 

	
			1.34

				
			“Valuation Date” means the last day of each calendar quarter and such other dates as the Employer and/or trustee may determine.

			

 

	
			1.35 

				
			“Vested” means Deferred Compensation which is not subject to a Substantial Risk of Forfeiture or to a requirement to perform further services for the Employer.

			

 

II.   PARTICIPATION

 

	
			2.1

				
			Participant Designated. All Eligible Directors (who have been approved for participation by the Board or Committee as defined in Section 8) may each elect to participate in this Plan on any Plan Entry Date (the initial Plan Entry date was January 1 and thereafter each January 1) coinciding with or next following the Plan Entry Date they become eligible to participate. In order for an Eligible Director to become eligible to participate, such Eligible Director must receive approval from the Employer’s Board of Directors or its designated committee.

			

 

	
			2.2

				
			Service in Another Status. If an individual should cease to be designated as an Eligible Director (per the Committee described in Section VIII) but remains a director of the Employer, such Participant will no longer be entitled as of the date he ceases to be designated as an Eligible Director to make or receive any further contributions to this Plan and to his Accounts. His vested Deferred Compensation Account shall be held for future distribution and payable to him when he would otherwise become entitled to receive a benefit under the terms of the Plan, although his Accounts shall continue to be credited with Earnings or charges in accordance with Sections 7.3 and 7.4.

			

 

III.   CONTRIBUTIONS AND ELECTIVE DEFERRALS

 

	
			3.1

				
			Elective Deferrals- Director’s Contributions 

			

 

	 	
			(a)

				
			Election Form and Timing. A Participant must make his/her Elective Deferral election on an Elective Deferral Election Form the Employer provides for that purpose. The Participant must make and deliver his/her election to the Employer no later than 30 days after he first become eligible to participate in the Plan and thereafter that no later than December 31 prior to the beginning of each new Plan (calendar) Year. The Employer will disregard any election which is not timely under this Section 3.1.

			

 

Amount –The amount of an Eligible Director’s Deferred Contribution during a Plan Year shall be either (i) zero % of his Directors fees or (ii) 100% of his Directors’ fees that become payable.

 

10

 

 

	 	
			(b)

				
			Special Rules Regarding Elections.

			

 

	 	
			(1)

				
			General Timing Rule. Except as otherwise provided in this Section 3.1, a Participant must deliver his/her written Initial Payment Election Form to the Employer no later than 30 days after he first become eligible to participate in the Plan and then thereafter no later than the end of the Taxable Year (December 31) prior to the Service Year.

			

 

	 	
			(2)

				
			New Participant. If an Eligible Director first becomes a Participant, on a date which is not the first day of a Taxable Year, the Participant must make and deliver his/her elective Deferral written Initial Payment Election Form for that Taxable Year not later than 30 days after the Participant becomes a Participant. The election may apply only to Compensation for services the Participant performs subsequent to the date the Participant delivers the written Election Form to the Employer. For Compensation that is earned for a specified performance period, including an annual bonus, and where the new Participant completes an Initial Payment Election Form after the service period commences, the Employer will pro rate the election by multiplying the Compensation by the ratio of the number of days left in the performance period at the time of the written election, over the total number of days in the entire performance period. This Section 3.1(b)(2) shall not apply to a Participant who is already a participant in any other nonqualified deferred compensation arrangement.

			

 

	 	
			(3)

				
			Certain Forfeitable Rights. If payment of any Deferred Compensation is subject to a forfeiture condition requiring the Participant to perform services for the Employer for at least 12 months after the Participant obtains the Legally Binding Right to the Compensation, the Participant may make an Elective Deferral written (Initial Payment Election Form) election no later than 30 days after the Participant obtains the Legally Binding Right to such Compensation, provided the Participant makes the written election at least 12 months prior to the earliest date on which the service forfeiture condition could lapse.

			

 

	 	
			(4)

				
			Performance-Based Compensation. As to any Performance-Based Compensation based on services performed over a period of at least 12 months, a Participant may elect no later that 6 months before the end of the Service period to defer such Compensation, provided that the Participant:

			

 

	 	
			(i)

				
			continuously must perform services from a date no later that the date the Employer establishes the performance criteria and at least through the date of the Participant’s election; and

			

 

	 	
			(ii)

				
			may not make an election after the Compensation has become substantially certain to be paid and is readily ascertainable.

			

 

11

 

 

	 	
			(5)

				
			Final Compensation Period. If Compensation is payable after the last day of the Participant’s Taxable Year, but is Compensation for the Participant’s services during the final compensation period within the meaning of Code §3401(b) which contains the last day of the Taxable Year, the Compensation is treated for purposes of an election under this Section 3.1, as Compensation for the subsequent Taxable Year in which the Employer pays the Compensation. This Section 3.1 does not apply to Compensation for services performed over any period other than the final payroll period as described herein and the Employer will apply this Section 3.1(b)(5) in accordance with. Treas. Reg. § 1.409A-2(a)(13) and Applicable Guidance.

			

 

	 	
			(c)

				
			Early Elections/Changes. A Participant’s written election made prior to the Section 3.1 deadline becomes irrevocable as to a Taxable Year following the last day on which a Participant may make an election under Section 3.1 for such Taxable Year.

			

 

If the Employer elects to permit changes to a written election up to the Section 3.1(a) election deadline (December 31), a Participant may make any number of changes to his/her Elective Deferral written election during the period prior to the election becoming irrevocable. As provided under Section 3.1(d), if a Participant’s written election is continuing, the Participant is deemed to have made an election as to each Taxable Year on the last day that the Participant could have made an election under Section 3.1(b). As such, the Participant may revoke or modify a “continuing election” for a Taxable Year up to the date that such written election is deemed made for that Taxable Year. A change payment election under Section 6.4(b) does not render an Elective Deferral written election and an accompanying Initial Payment Election under Section 6.4(a), revocable within the meaning of this Section 3.1(c).

 

	 	
			(d)

				
			Election Duration is Deemed Continual. A Participant’s Elective Deferral written election if continuing will remain in effect for (i) the duration of the Taxable Year for which the Participant makes the election and (ii) all subsequent Taxable Years unless the Participant executes a subsequent timely election, modification or revocation. A Participant, subject to Plan requirements regarding election timing, including those in Article VII, may make a new written election, or may revoke or modify an existing election effective no earlier than for the next Taxable Year, provided that a Participant may cancel an existing and otherwise irrevocable election for a Taxable Year at any time following the Participant’s receipt of an Unforeseeable Emergency distribution or of a distribution from the Employer’s 401(k) plan based upon hardship within the meaning of Treas. Reg. §1.401(k)-1(d)(3).

			

 

IV.     DISTRIBUTIBLE EVENTS

 

	
			4.1

				
			Death. In the event of a Participant’s death, the Participant’s Deferred Compensation Account shall be paid to his Beneficiary in accordance with Article VI.

			

 

Form & Time of Payment. Unless the Participant elected an Optional Form of Payment in his “Initial Payment Election” or he made a “Subsequent Payment Election” in accordance with Section 6.4 (a) or (b), payment shall be made to his Beneficiary in a lump sum 75 days after the Participant’s death.

 

12

 

 

	
			4.2

				
			Disability. In the event of a Participant’s Disability (as defined in Section 1.11), a Participant’s Deferred Compensation Account shall be paid to him in accordance with Article VI.

			

 

Form & Time of Payment. Unless the Participant elected an Optional Form of Payment in his “Initial Payment Election” or he made a “Subsequent Payment Election” in accordance with Section 6.4 (a) or (b), payment shall be made to him in a lump sum 75 days (subject to the six month rule for a Specified Employee in accordance with Section 6.2 herein, if applicable) after the Participant is determined to be disabled.

 

	
			4.3

				
			Normal Retirement Date. Upon reaching his Retirement Age (as defined in Section 1.24), a Participant’s Deferred Compensation Account shall be paid to him in accordance with Article VI.

			

 

Form & Time of Payment. Unless the Participant elected an Optional Form of Payment in his “Initial Payment Election” or he made a “Subsequent Payment Election” in accordance with Section 6.4 (a) or (b), payment shall be made to him in five approximate equal annual installments, the first installment commencing 75 days after the date of his Separation from Service from the Employer (subject to the six month rule for a Specified Employee in accordance with Section 6.2 herein if applicable).

 

	
			4.4

				
			Separation of Service prior to Age 75. In the event of a Separation of Service prior to age 75, a Participant’s vested Deferred Compensation Account shall be paid to him in accordance with Article VI.

			

 

Form & Time of Payment. Unless the Participant elected an Optional Form of Payment in his “Initial Payment Election” or he made a “Subsequent Payment Election” in accordance with Section 6.4 (a) or (b), payment shall be made to him in lump sum 75 days after the Participant’s Separation of Service (subject to the six month rule for a Specified Employee in accordance with Section 6.2 herein).

 

	
			4.5

				
			Change of Control with Separation from Service within 24 Months. In the event of a Change of Control (as defined in Section 1.6) and a Participant’s service to the Employer is terminated within 24 months following the date of the Change in Control, a Participant’s Deferred Compensation Account shall be paid to him in accordance with Article VI.

			

 

Form & Time of Payment. Unless the Participant elected an Optional Form of Payment in his “Initial Payment Election” or he made a “Subsequent Payment Election” in accordance with Section 6.4 (a) or (b), payment shall be made to him in a lump sum 75 days (subject to the six month rule for a Specified Employee in accordance with Section 6.2 herein if applicable) after the date of his Separation from Service with the Employer.

 

13

 

 

	
			4.6

				
			Unforeseeable Emergency. In the event of a Unforeseeable Emergency (as defined in Section 1.32), a Participant’s vested Deferred Compensation Account shall be paid to him in accordance with Section 1.32 within 30 days following the date of an Unforeseeable Emergency.

			

 

Form & Time of Payment. Any payment for an Unforeseeable Emergency shall be made to the Participant or his Beneficiary in a lump sum within 30 days following the date of a written request and approval of payment due to an Unforeseeable Emergency.

 

	
			4.7

				
			Plan Termination. In the event this Plan is terminated in accordance with Section 13.2, a Participant’s Deferred Compensation Account shall be paid to him in accordance with Section 13.2 and any requirement of the Applicable Guidance.

			

 

 

V.    VESTING 

 

	
			5.1

				
			Vesting.

			

Participant Deferred Compensation Account – Participant’s Deferred Compensation Account shall be 100% Vested and non-forfeitable.

 

VI.         BENEFIT PAYMENTS

 

	
			6.1

				
			Distributable Events. A Participant shall be eligible to receive the amount of his Deferred Compensation Account which is non-forfeitable as provided under Section 5.1, upon the occurrence of any of the Distributable Events in accordance with Article IV.

			

 

	
			6.2

				
			Specified Employee. For any Participant who is considered a Specified Employee as defined in Section 1.27 herein, payment of his Deferred Compensation Account on account of his Separation from Service shall be delayed for six (6) from the date of his Separation of Service. This provision shall not apply to any (i) payments made on account of a Domestic Relations Order under Section 6.5(b)(i), (ii) payment being made because of a conflict of interest under Section 6.5(b)(ii), or (iii) payment of employment taxes under Section 6.5(b)(iv).

			

 

	
			6.3

				
			Normal Form and Optional Forms of Payment. Payments under this Plan to a Participant (or his Beneficiary, if applicable) shall be payable in accordance with the normal form of payment (default election) for each Distributable Event as provided in Sections 4.1 through 4.7 herein. Notwithstanding the foregoing, a Participant may elect at the time of his Initial Payment Election or a Subsequent Change in Payment Election to receive Optional Forms of Payment of either:

			

 

	 	
			(i)

				
			lump sum payment, or

			

	 	
			(ii)

				
			approximate equal annual installments, or monthly installments over any number of years (from 3 to 10 years) and such annual installments elections may be different for each Distributable Event, or

			

	 	
			(iii)

				
			any form of a life annuity for the participant with survivor benefit to his spouse or other beneficiary.

			

 

14

 

 

	
			6.4

				
			Timing and Method of Payment. Unless a Participant elects otherwise as provided in this Section 6.4 (or he is considered a Specified Employee as defined in Section 1.27), payment of his benefits will automatically commence on the “default date” as specified for each Distributable Event as provided in Sections 4.1 through 4.7.

			

 

	 	
			(a)

				
			Initial Payment Election. A Participant may make in writing an Initial Payment Election, attached hereto as Appendix A, at the time the Participant first becomes a Participant under the Plan. Such election shall apply to all of a Participant’s Accounts under this Plan. If a Participant who has the right to make an Initial Payment Election fails to do so, payment shall be made in accordance with the “default elections” as provided in Sections 4.1 through 4.7 for each such Distributable Event.

			

 

	 	
			 (b)

				
			Subsequent Change of Payment Election. Notwithstanding that a Participant has made an Initial Payment Election as provided above, a Participant (and a Beneficiary if applicable) may elect in writing on a Subsequent Payment Election Form provided by the Employer to change his payment elections provided such change complies with this Section 6.4(b) and the requirements of Applicable Guidance as follows:

			

 

	 	
			(1)

				
			Conditions on Change of Payment Elections. A Participant (or his Beneficiary, if applicable) may make a change in a prior written payment election provided it complies with the following:

			

 

	 	
			(i)

				
			Effective Date of Change. The change may not take effect until at least 12 months following the date of the written change in payment election;

			

 

	 	
			(ii)

				
			Five (5) Year Rule. If the change in payment election relates to a payment on account of a Separation from Service, a Change in Control, at a Specified Time or pursuant to a Fixed Schedule, the change in election must result in payment being made no earlier than 5 years following the date the payment otherwise would have been made (or in the case of a Term Certain Annuity or installment payment treated as a single payment, as defined in Section 6.4(b)(3) below, 5 years from the date the first amount was schedule to be paid);

			

 

	 	
			(iii)

				
			Time of Subsequent Election. If the change in payment election relates to a payment at a Specified Time or pursuant to a Fixed Schedule (as provided in Article IV), the Participant or his Beneficiary must make the change in payment election not less than 12 months prior to the date the payment is scheduled to be made (or in the case of a Term Certain Annuity or installment payment treated as a single payment, 12 months prior to the date the first amount was scheduled to be paid).

			

 

	 	
			(2)

				
			Definition of “Payment.” Except as otherwise provided in Section 6.4(b)(3) below, a “payment” for purposes of applying Section 6.4(b)(1) above shall mean each separately identified amount the Plan is obligated to pay to a Participant or Beneficiary on a determinable date and includes amount paid for the benefit of the Participant. An amount is “separately identifiable” only if the Employer can objectively determine the amount. A payment includes the provision of any taxable benefit, including a payment in cash. A payment includes, but is not limited to, the transfer, cancellation or reduction on an amount of a Participant’s Account(s) in exchange for other Employer provided benefits such as welfare benefits, or other welfare benefits that would otherwise be excluded from the Participant’s gross income under Code Sections 119 or 132.

			

 

15

 

 

	 	
			(3)

				
			Installment Payments and Annuities. A Term Certain Annuity or a “series of installment payments” are treated as a single payment for purposes of this Section 6.4(b). For purposes of this Section 6.4(b), a “series of installment payments” means payment of a series of substantially equal periodic amounts to be paid over a predetermined number of years, except to the extent that any increase (or decrease) results from reasonable earnings on the Participant’s Account.

			

 

	 	
			(4)

				
			Coordination with Anti-Acceleration Rule. A Participant (or his Beneficiary, if applicable) under a change of payment election may change the method of payment to a more rapid schedule of payments without violating Section 6.5, provided any such change remains subject to the change of payment election provisions under this Section 6.4(b).

			

 

	 	
			(5)

				
			Multiple Payment Events. If the Plan permits multiple payment events (such as Separation from Service, etc.), the change in payment election of Section 6.4(b)(1) shall apply to each payment due upon each payment event.

			

 

	 	
			(6)

				
			Certain Payments not Subject to Change Payment Election Rules. In accordance with Applicable Guidance the Employer may elect to delay payments to a Participant or Beneficiary for any of the following reasons: 

			

 

	 	
			(i)

				
			Loan Covenants/Contract Terms. The Employer may delay payment to a Participant or his Beneficiary if the Employer reasonably anticipates that the payment will cause the Employer to violate the terms of a loan agreement or other similar contract to which the Employer is a party, provided the Employer entered into the agreement or contract for legitimate business reasons and such violation will cause material harm to the Employer. However, the Employer must make such payment as of the date at which the Employer reasonably anticipates that the payment will not cause a violation of the agreement or contract, or that such violation will not cause any material harm to the Employer.

			

 

The Employer shall notify all Plan Participants within 30 days if the Employer ever violates the terms of a loan agreement, loan covenant or similar contract to which the Employer is a party to.

 

	 	
			(ii)

				
			Securities or other Laws. The Employer may delay payment to a Participant or his Beneficiary if the Employer reasonably anticipates that the payment will violate Federal securities law or other applicable law. However, the Employer will make such payment as of the date at which the Employer reasonably anticipates that the payment will not cause a violation of such securities laws.

			

 

16

 

 

	 	
			(iii)

				
			Non-Deductible Payments. The Employer may delay payment to a Participant or Beneficiary if the Employer reasonably anticipates that the Employer’s tax deduction for payment of the Deferred Compensation will be limited or eliminated under Code Section 162(m). However, the Employer will make such Deferred Compensation payment as of the date at which the Employer tax deduction is no longer limited or eliminated under Code Section 162(m), but not later than 24 months from the time such payment would have otherwise been made.

			

 

	 	
			(iv)

				
			Other. The Employer may delay payment to a Participant upon such other events as Applicable Guidance may permit.

			

 

	 	
			(v)

				
			Amendments. If the Employer amends this Plan to add other permitted reasons for delay of payment of a Participant’s Deferred Compensation Account, any such amendment may not take effect for 12 months following the date the Employer adopts such an amendment. The Employer may not amend this Plan to remove any or all of the payment delays described in this Section 6.4(b)(6) as it relates to any previous Deferred Compensation amount.

			

 

	
			6.5

				
			No Acceleration of Payment.

			

 

	 	
			(a)

				
			No Acceleration of Payment (General Rule). The Employer, a Participant (or a Beneficiary if applicable) may not accelerate the time or schedule of any Plan payment or amount scheduled to be paid under this Plan. However, the following are not considered an acceleration of payments and are therefore considered permissible:

			

 

	 	
			(i)

				
			A payment made in accordance with Plan provisions or pursuant to an Initial Payment Election under Section 6.4(a), or a Subsequent Payment Election under Section 6.4(b) under which payment on a accelerated schedule is required on account of an intervening event which includes Separation from Service, Death, Disability, Change in Control, or an Unforeseeable Emergency; and

			

 

	 	
			(ii)

				
			The Employer’s waiver or acceleration of the satisfaction of any condition constituting a Substantial Risk of Forfeiture provided that payment is made only upon a permissible event and the Employer’s action otherwise does not violate Code Section 409A.

			

 

17

 

 

	 	
			(b)

				
			Permissible Accelerations. Notwithstanding Section 6.5(a), the Plan does permit any or all of the following accelerations of the time or schedule of payment (to the extent permitted by Applicable Guidance):

			

 

	 	(i)	A payment to an individual other than the Participant required under a domestic relations order under Code §414(p)(1)(B);

 

	 	
			(ii)

				
			Payment required under a certificate of divestiture under Code §1043(b)(2) relating to conflicts of interest;

			

 

	 	
			(iii)

				
			A Plan amendment to permit certain cash-out payments described in Sections 6.5(c);

			

 

	 	
			(iv)

				
			As it relates to Deferred Compensation, a payment to pay the FICA tax under Code §§3101, 3121(a) and 3121(v)(2) and to pay income taxes at source on wages under Code §3401 or under corresponding provisions of state, local or foreign tax laws related to payment of the FICA and to pay additional income tax at source on wages attributable to pyramiding Section §3401 wages and taxes, but the total of all such payments may not exceed the aggregate of the FICA amount and the income tax withholding related to the FICA amount;

			

 

	 	
			(v)

				
			A payment to any affected Participant at any time that the Plan fails to meet the requirements of Code §409A and the regulations thereto, provided that such payment may not exceed the amount required to be included in income as a result of such failure;

			

 

	 	(vi)	Payment upon Plan termination in accordance with Section 13.2;

 

	 	
			(c)

				
			Cash-out Upon Separation from Service. The Employer (notwithstanding a Participant’s or Beneficiary’s payment election or any contrary Plan terms) will pay in a single lump sum cash payment the entire Vested Deferred Compensation Account of a Participant who has Separated from Service where the Participant’s Vested Deferred Compensation Account does not exceed $10,000. A payment under this Section 6.5(c) will terminate the Participant’s entire interest in the Plan and in all similar deferred compensation arrangements within the meaning of Treas. Reg. §1.409A-1(c) or other Applicable Guidance.

			

 

The Employer will make any payment under this Section 6.5(c) on or before the later of: (i) December 31 of the calendar year in which the Participant Separates from Service; or (ii) the 15th day of the third month following the Participant’s Separation from Service. However, payment to a Specified Employee may not be made earlier than as allowed in accordance with Section 6.2 in this Plan.

 

	 	
			(d)

				
			Cash-out Upon a Payment Event. The Employer will pay in the form of a single cash payment the entire Vested Deferred Compensation Account of any Participant or Beneficiary upon the occurrence of any Plan payment event affecting the Participant, provided the Vested Deferred Compensation Account does not exceed $10,000. Any subsequent Plan amendment made which changes or eliminates this feature is subject to the rules regarding payment change elections under Section 6.4(b).

			

 

18

 

 

The Employer will make any payment under this Section 6.5(d) on or before the later of: (i) December 31 of the Taxable Year in which the Participant Separates from Service; or (ii) the 15th day of the third month following the Participant’s Separation from Service. However, payment to a Specified Employee may not be made earlier than as allowed in accordance with Section 6.2 in this Plan.

 

	
			6.6

				
			Income Tax Withholding. The Employer will withhold from any payment made under the Plan and from any amount taxable under Code §409A, all applicable taxes, and any and all other amounts required to be withheld under Federal, state or local law, including Notice 2005-1 and other Applicable Guidance.

			

 

	
			6.7

				
			Beneficiary Designations. A Participant may designate a Beneficiary (including one or more primary and contingent Beneficiaries, if applicable) to receive payment of any Vested Deferred Compensation Account remaining in the Participant’s Accounts at death. The Employer will provide each Participant with a Beneficiary Form for this purpose and no designation will be effective unless made on that Form and delivered to the Employer. A Participant may modify or revoke an existing designation of Beneficiary by executing and delivering a new designation to the Employer. In the absence of a properly designated Beneficiary, the Employer will pay a deceased Participant’s Deferred Compensation Account to the Participant’s surviving spouse and if none, to the Participant’s estate in a lump sum.

			

 

If a Beneficiary is a minor or otherwise is a person whom the Employer reasonably determines to be legally incompetent, the Employer may cause the Plan (or Trustee) to pay the Participant’s Vested Deferred Compensation Account to a guardian, trustee or other proper legal representative of the Beneficiary. The Plan’s or Trust’s payment of the deceased Participant’s Vested Deferred Compensation Account to the Beneficiary or proper legal representative of the Beneficiary completely discharges the Employer, the Plan and Trust of all further obligations under the Plan.

 

	
			6.8

				
			Administration of Payment Date(s).

			

 

	 	
			(a)

				
			Objective Payment Date(s). The Participant or a Beneficiary in an Initial Payment Election or Subsequent Payment Election must provide for a payment date that the Employer, at the time of the payment event, objectively can determine. Such payment date may, but need not, coincide with a payment event, but any payment must be on or following the payment event and must relate to a Plan payment event.

			

 

	 	
			(b)

				
			Multiple Payment Events/Fixed Schedule Linked to Payment Events. A Participant (or a Beneficiary if applicable) in a Payment Election under Sections 6.4(a) or (b) may provide as follows:

			

 

	 	
			(1)

				
			provide for payment upon the earliest or latest of more than one permissible payment event under Article IV;

			

 

	 	
			(2)

				
			provide that a payment based on Separation from Service, death, Disability, Change in Control or Unforeseeable Emergency is to be made in accordance with a Fixed Schedule that the Employer objectively can determine at the time of the applicable payment event; or

			

 

19

 

 

	 	
			(3)

				
			provide for an alternative payment schedule if the payment event to which the payment schedule is linked occurs prior to a single specified date.

			

 

	 	
			(c)

				
			Treatment of Payment as made on Designated Payment Date. The Plan’s payment of Deferred Compensation is deemed made on the Plan’s required payment date or payment election required payment date even if the Plan makes payment after such date, provided the payment is made by the later of:

			

 

	 	
			(1)

				
			the end of the calendar year in which the payment is due;

			

 

	 	
			(2)

				
			the 15th day of the third calendar month following the payment due date;

			

 

	 	
			(3)

				
			in case the Employer cannot calculate the payment amount on account of administrative impracticality which is beyond the Employer’ or Participant’s control (or the control of the Participant’s estate), in the first calendar year in which payment is practicable;

			

 

	 	
			(4)

				
			in case the Employer does not have sufficient funds to make the payment without jeopardizing the Employer’s solvency, in the first calendar year in which the Employer’s funds are sufficient to make the payment.

			

 

The Employer may cause the Plan or Trustee to pay a Participant’s Vested Deferred Compensation Account on any date which satisfies this Section 6.8(c) and that is administratively practicable following any Plan specified payment date or the date specified in any valid payment election.

 

	 	
			(d)

				
			Disputed Payments. In the event of a dispute between the Employer and a Participant (or Beneficiary) as to whether a Participant’s Account balance is payable to the Participant (or Beneficiary) or as to the amount thereof, the Plan is deemed to make timely payment on any “Plan required payment date” or “payment election” required payment date if:

			

 

	 	
			(1)

				
			the Participant accepts any portion of the payment that the Employer is willing to make (unless such acceptance results in a forfeiture of the Participant’s claim to the remaining amount);

			

 

	 	
			(2)

				
			the Participant makes prompt, reasonable and good-faith efforts to collect the payment; and

			

 

	 	
			(3)

				
			the Plan makes payment in the first calendar year in which the Employer and the Participant enter into a legally binding settlement of the dispute, the Employer concedes that the amount is payable or the Employer is required to cause the Plan to make payment under a final and non-appealable judgment or other binding decision.

			

 

20

 

 

This Section 6.8(d) does not apply if the Plan’s failure to make payment on a required date is on account of:

 

	 	
			(i)

				
			the Participant’s failure to request payment, to provide information or to take any other action necessary for the Plan to make payment; or

			

 

	 	
			(ii)

				
			the Participant or a member of the Participant’s family (as defined in Code §267(c)(4) applied to include the spouse of any family member), any person or group of persons over whom the Participant or the Participant’s family has effective control or any person whose compensation (or any portion thereof) is controlled by the Participant or the Participant’s family members, makes the decision to not pay.

			

 

	
			6.9

				
			Employer Approval of Participant’s Payment Election. A Participant’s Initial Payment Election or Change in Payment Election must be consistent with the Plan. The Employer at the time of the election must notify any Participant if his Payment Election is inconsistent with the terms of this Plan as to form, timing and method. Such Participant then must correct his written Payment Election to conform to the terms of this Plan.

			

 

VII.   TRUST AND PLAN EARNINGS

 

	
			7.1

				
			Unfunded Plan/Trust. The Employer intends this Plan to be an unfunded plan that is wholly or partially exempt under ERISA. No Participant, Beneficiary or successor thereto has any legal or equitable right, interest or claim to any property or assets of the Employer, including assets held in any Account under the Plan or (Rabbi) Trust, except as the Plan otherwise permits. The Employer’s obligation to pay Plan benefits is an unsecured promise to pay.

			

 

	
			7.2

				
			Restriction on Trust Assets. Under any (Rabbi) Trust established by the Employer (or any other arrangement Applicable Guidance may describe), the Trust and the Trust assets must remain located within the United States, except with respect to a Participant who performs outside the United States substantially all services giving rise to the Deferred Compensation. The Trust may not contain any provision limiting the Trust assets to the payment of Plan benefits upon a change in the Employer’s financial health, as described in the Applicable Guidance, even if the assets remain subject to claims of the Employer’s general creditors. For this purpose, the Employer, upon a change in the Employer’s financial health, may not transfer Deferred Compensation to the Trust. Any Trust the Employer establishes under this Plan shall be further subject to Applicable Guidance, compliance with which is necessary to avoid the transfer of assets to the Trust being treated as a transfer of property under Code § 83.

			

 

	 	
			7.3

				
			Actual Earnings. If the Employer establishes a Rabbi Trust under Section 7.1, the Trust actual earnings provisions apply to all Plan contributions and constitute Earnings for purposes of the Plan. Each Participant’s Account is credited (or charged) with actual Earnings on his Account in accordance with Section 7.4 below. Each Participant has the right to direct the investment of the Participant’s Account. However, the Employer may specify any limitations on the Participant’s right of investment direction so as to limit the Participant’s control over Employer assets in order to avoid the Participants from having “constructive receipt” of corporate assets. The Participant investment direction right is limited strictly to investment direction and the Participant will not be entitled to the distribution of any Account asset except as the Plan otherwise permits. Except as otherwise provided in the Plan or Trust, all Plan assets, including all incidents of ownership thereto, at all times will be the sole property of the Employer.

			

 

21

 

 

	 	
			7.4

				
			Directed Investment Accounts.

			

 

	 	
			(a)

				
			Participants may, subject to procedures (the Participant Direction Procedures) established by the Administrator (and applied in a uniform non-discriminatory manner, direct the Trustee, in writing (or in such other form which is acceptable to the Trustee), invest their accounts, in accordance with the Participant Direction Procedures. That portion of the interest of any Participant so directing will thereupon be considered a Participant's Directed Account.

			

 

	 	
			(b)

				
			As of each Valuation Date, all Participant Directed Accounts shall be charged or credited with the net earnings, gains, losses and expenses as well as any appreciation or depreciation in the market value using publicly listed fair market values when available or appropriate as follows:

			

 

	 	
			(1)

				
			To the extent that the assets in a Participant’s Deferred Compensation Account are accounted for as pooled assets or investments, the allocation of earnings, gains and losses of each Participant's Directed Account shall be based upon the total amount of funds so invested in a manner proportionate to the Participant's share of such pooled investment; and

			

 

	 	
			(2)

				
			To the extent that the assets in the Participant’s Deferred Compensation Account are accounted for as segregated assets, the allocation of earnings, gains and losses from such assets shall be made on a separate and distinct basis.

			

 

	 	
			(c)

				
			Directed Investment Accounts Administration – As permitted in Section 7.4(a) above, a Participant may self-direct his contributions to his individual Investment Account in specific mutual funds (generally similar to those offered in the Employer’s 401k Plan) as made available by the Plan Trustee. Furthermore, the Employer may permit Participants to invest in Employer Securities, namely the common stock of the Employer.

			

 

Investment directions will be processed as soon as administratively practicable after proper investment directions are received from the Participant. No guarantee is made by the Plan, Employer, Administrator or Trustee that investment directions will be processed on a daily basis, and no guarantee is made in any respect regarding the processing time of an investment direction. Notwithstanding any other provision of the Plan, the Employer, Administrator or Trustee reserves the right to not value an investment option on any given Valuation Date for any reason deemed appropriate by the Employer, Administrator or Trustee. Furthermore, the processing of any investment transaction may be delayed for any legitimate business reason (including, but not limited to, failure of systems or computer programs, failure of the means of the transmission of data, force majeure, the failure of a service provider to timely receive values or prices, and correction for errors or omissions or the errors or omissions of any service provider). The processing date of a transaction will be binding for all purposes of the Plan and considered the applicable Valuation Date for an investment transaction.

 

22

 

 

	 	
			(d)

				
			Default Investment Fund – In the event that a Participant fails to make an investment election with regards to his Directed Investment Accounts, his Accounts shall automatically be invested in the Plan’s Moderate Asset Allocation Fund available for Directed Investment Accounts.

			

 

VIII. COMMITTEE

 

	
			8.1

				
			Except where otherwise specifically indicated, responsibility for administration of this Plan shall be reposed in the Compensation and Retirement Committee of the Board (hereinafter, the “Committee”). An individual shall not be ineligible to be a member of the Committee because he is or may be an officer or a Participant under this Plan.

			

 

	
			8.2

				
			Subject to the Claims Procedure set forth in Article IX hereof, the Committee shall have the duty and authority to interpret at its discretion and construe the provisions of the Plan, to decide any disputes which may arise regarding the rights of Eligible Employees under this Plan.

			

 

	
			8.3

				
			Any certification by the Employer of the information required or permitted to be certified by the Committee pursuant to the provisions of the Plan may be relied upon by the Committee until later shown to be incorrect. The Committee may correct errors, and so far as practicable, may adjust any benefit or payment or credit accordingly.

			

 

	
			8.4

				
			The Committee shall maintain full and complete records of its deliberations and decisions. Its records shall contain all relevant data pertaining to individual participating Eligible Employees and their rights under the Plan. It has the duty to carry into effect all such rights and benefits of each and to answer questions and assist Eligible Employees, whether Participants or other Eligible Employees, to obtain the greatest good from the existence of the Plan.

			

 

	
			8.5

				
			The Employer shall pay the reasonable expenses incident to the operation of this Plan. All requests, directions, requisitions and instructions of the Committee shall be in writing and signed by the Committee’s Chairman or acting Chairman and by its Secretary or acting Secretary.

			

 

IX.   CLAIMS PROCEDURE

 

	
			9.1

				
			Filing a Claim for Benefits. Any claim for a Plan benefit hereunder shall be filed by a Participant or Beneficiary (claimant) of this Plan on the form prescribed for such purpose with the Committee, or in lieu thereof, by written communication which is made by the claimant or the claimant’s authorized representative which is reasonably calculated to bring the claim to the attention of the Committee.

			

 

23

 

 

	
			9.2

				
			Denial of Claim.

			

 

	 	
			(a)

				
			If a claim for a Plan benefit is wholly or partially denied, notice of the decision shall be furnished to the claimant by the Committee within a reasonable period of time after receipt of the claim by the Committee.

			

 

	 	
			(b)

				
			Any claimant who is denied a claim for benefit shall be furnished written notice setting forth:

			

 

	 	
			(1)

				
			The specific reason or reasons for the denial;

			

 

	 	
			(2)

				
			Specific reference to the pertinent Plan provisions upon which the denial is based;

			

 

	 	
			(3)

				
			A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary;

			

 

	 	
			(4)

				
			An explanation of the Plan’s claim review 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 on review.

			

 

	
			9.3

				
			Claims Review Procedure.

			

 

	 	
			(a)

				
			In order that a claimant may appeal a denial of a claim, a claimant or his duly authorized representative:

			

 

	 	
			(1)

				
			May request a review by written application to the Committee not later than 60 days after receipt by the claimant of written notification of denial of a claim;

			

 

	 	
			(2)

				
			May review and copy (free of charge) pertinent documents, records and other information relevant to the claimant’s claim for benefits; and

			

 

	 	
			(3)

				
			May submit issues and comments in writing.

			

 

	 	
			(b)

				
			A decision on review of a denied claim shall be made not later than 60 days after receipt of a request for review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered within a reasonable period of time, but not later than 120 days after receipt of a request for review. If an extension of time is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 60 day period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the determination on review.

			

 

	 	
			(c)

				
			The decision on review shall be in writing and shall include the specific reason(s) for the decision and the specific reference(s) to the pertinent Plan provisions on which the decision is based.

			

 

24

 

 

	 	
			(d)

				
			The review will take into account all comments, documents, records and other information submitted by the claimant relating to the claim without regard to whether such information was submitted or considered in the initial benefit determination.

			

 

	 	
			(e)

				
			The decision on review will include 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.

			

 

X.     UNFUNDED OBLIGATION

 

The Employer’s obligations under this Plan shall be unfunded and unsecured promises to pay the benefits provided for hereunder. The Employer may establish a grantor Rabbi Trust for the purpose of informally holding sufficient to meet the obligations of this Plan.

 

If a Rabbi Trust is created the Employer will from time to time make contributions to the Rabbi Trust in order to meet the obligations of this Plan. No participant shall have any beneficial or other interest in any such trust asset, and same shall at all times remain a part of the Employer’s general assets accessible to its creditors.

 

The rights of a Participant, any designated recipient of a Participant or any other person claiming through a Participant under this Plan, shall be solely those of an unsecured general creditor of the Employer. A Participant, any designated recipient of a Participant or any other person claiming through a Participant, shall only have the right to receive from the Employer (or any trust established to hold assets to meet the obligations of this Plan) those payments which are specified under this Plan. No asset used or acquired by the Employer in connection with its obligations and liabilities hereunder (whether in trust or not) shall be deemed to be held for the benefit of a Participant or his designated recipient(s) but will be deemed only as security for the performance of the Employer’s obligations hereunder. The assets of the Trust shall be subject to the claims of the Employer’s creditors in the event of the Employer’s insolvency or bankruptcy.

 

XI.    ADMINISTRATIVE AND FIDUCIARY RESPONSIBILITIES

 

No named fiduciary under the Plan shall be liable for any act or omission of another fiduciary which act or omission occurs outside the scope of the respective fiduciaries designated area(s) of responsibility as hereinafter stated. The named fiduciaries and their respective areas of responsibility for the operation and administration of the Plan are as follows:

 

	
			11.1 

				
			Board of Directors shall have the authority to:

			

 

(a)     Terminate the Plan;

(b)     Amend the Plan;

 

25

 

 

	
			11.2 

				
			Employer.  The Employer shall have the following responsibilities and powers:

			

 

	 	
			(a)

				
			Funding Policy - The Employer shall, in consultation with an enrolled actuary, determine the Plan’s benefits, liabilities, and accounting accruals and communicate same to the Plan Administrator.

			

 

	 	
			(b)

				
			Appointment of Plan Administrator - The Committee shall be named Plan Administrator. The Committee may, however, delegate such function by appointing any person or any number of persons to administer the Plan. In the event of such appointment, the person or persons so appointed shall be the successor Plan Administrator. Any person or persons so appointed may be removed by the Employer upon thirty (30) days written notice unless a shorter period is agreed to.

			

 

	 	
			(c)

				
			Review of Fiduciaries - The Employer shall periodically review the performance of any fiduciary or any other person to whom any duties have been delegated.

			

 

	
			11.3

				
			Plan Administrator. The Plan Administrator shall have the following responsibilities and powers:

			

 

	 	
			(a)

				
			General Powers - The Plan Administrator shall administer the Plan in accordance with its terms and shall have all powers necessary to carry out the provisions of the Plan. The Plan Administrator shall have the exclusive discretionary authority to construe and interpret the Plan, including, but not limited to, deciding all questions of eligibility for benefits and the amount of such benefits. The decision of the Plan Administrator for matters within its jurisdiction shall be final, binding and conclusive upon all Employers, Eligible Directors, Participants and Beneficiaries and every other person or party interested or concerned.

			

 

	 	
			(b)

				
			Procedures, Records and Reports - The Plan Administrator shall establish operating procedures and shall keep a record of his actions, as well as all books of account, records or other data necessary for the administration of the Plan and/or required by law or regulations issued pursuant to such law. The Plan Administrator shall prepare and file or publish with the Secretary of Labor or the Secretary of the Treasury, or to any other official or agency as may hereafter be required, all reports, documents or other information as may be required under law to be so filed or published.

			

 

	 	
			(c)

				
			Agents and Counsel - The Plan Administrator may engage agents to assist him in his duties, and may consult with counsel, actuaries, accountants, specialists and other persons as he deems necessary or desirable. The Plan Administrator (and their agents and counsel) shall be indemnified by the Employer with respect to any action taken or omitted by him in good faith reliance on the advice of such persons, provided that the Plan Administrator has acted prudently in selecting or retaining such persons, to which end he shall periodically review such person’s performance.

			

 

	 	
			(d)

				
			Costs and Expenses- Except for investment charges which will be borne by the Account to which they pertain, the Employer will pay the administrative costs, expenses and fees associated with the operation of the Plan, excluding those incurred by Participants or Beneficiaries. The Employer will pay costs, expenses or fees charged by or incurred by the Trustee only as provided in the Trust or other agreement between the Employer and the Trustee. Such expenses of administration shall include, but not limited to, the payment of professional fees of consultants, actuaries, accountants, and legal counsel.

			

 

26

 

 

	 	
			(e)

				
			Reports Furnished Participants - The Plan Administrator shall furnish to each Plan Participant, and to each Beneficiary receiving benefits under the Plan notification of any amendments to this Plan.

			

 

XII.   SPENDTHRIFT

 

	
			12.1

				
			Unsecured Promise to Pay. No Participant under this Plan shall have any legal right, title or interest in the Plan or any assets of the Employer used in connection with the Employer’s Plan obligations. The interest of any Participant, beneficial or otherwise, shall be limited to that provided in the Plan and no designated Beneficiary shall have any greater rights than as provided by this Plan.

			

 

	
			12.2

				
			No Assignment. No Participant or Beneficiary has the right to anticipate, alienate, assign, pledge, encumber, sell, transfer, mortgage or otherwise in any manner convey in advance of actual receipt, the Participant’s Accounts. Prior to actual payment, a Participant’s Accounts are not subject to the debts, judgments or other obligations of the Participant or Beneficiary and is not subject to attachment, seizure, garnishment or other process applicable to the Participant or Beneficiary.

			

 

XIII. AMENDMENT AND TERMINATION      

 

	
			13.1

				
			Amendment. The Board of Directors reserves the right to amend the Plan at any time to comply with Code §409A, Notice 2005-1, Treas. Reg. §1.409A and other Applicable Guidance or for any other purpose, provided that such amendment will not result in taxation to any Participant under Code §409A. Except as the Plan and Applicable Guidance otherwise may require, the Employer may make any such amendments effective immediately. No Amendment shall be made that would have the effect of reducing any Participant’s Deferred Compensation Account, causing the forfeiture of any non-forfeitable Deferred Compensation Account, or removing any optional form of payment of any Deferred Compensation Account.

			

 

	
			13.2

				
			Termination. The Board of Directors may terminate the Plan and distribute Plan Accounts under the following circumstances:

			

 

	 	
			(a)

				
			Dissolution/Bankruptcy. The Board of Directors shall terminate the Plan within 12 months following a dissolution of a corporate Employer taxable under Code §331 or with approval of a Bankruptcy court under 11 U.S.C. §503(b)(1)(A), provided that the Deferred Compensation is paid to the Participants and is included in the Participants’ gross income in the latest calendar year: (i) in which the plan termination occurs; or (ii) in which the payment is administratively practicable.

			

 

27

 

 

	 	
			(b)

				
			Change in Control. The Board of Directors may terminate the Plan within the 30 days preceding or the 12 months following a Change in Control provided the Employer distributes all Plan Accounts (and must distribute the accounts under any substantially similar Employer plan which plan the Employer also must terminate) within 12 months following the Plan termination.

			

 

	 	
			(c)

				
			Other. The Board of Directors may terminate the Plan for any other reason in the Employer’s discretion provided that: (i) the Employer also terminates all Aggregated Plans in which any Participant also is a participant; (ii) the Plan makes no payments in the 12 months following the Plan termination date other than payments the Plan would have made irrespective of Plan termination; (iii) the Plan makes all payments within the 12 to 24 month period following the Plan termination date; and (iv) the Employer within 3 years following the Plan termination date does not adopt a new plan covering any Participant that would be an Aggregated Plan.

			

 

	 	
			(d)

				
			Applicable Guidance. The Board of Directors may terminate the Plan under such other circumstances as Applicable Guidance may permit.

			

 

	
			13.3

				
			Effect on Vesting. Any Plan amendment or termination will not reduce the Vested Non-Forfeitable Deferred Compensation Account held in any Participant Account at the date of the amendment or termination and also may not accelerate vesting except as may be permitted without subjecting any Participant to taxation under Code §409A.

			

 

	
			13.4 

				
			Cessation of Future Contributions. The Board of Directors may elect at any time to amend the Plan to cease future Participant or Employer Contributions as of a specified date; however, the Committee may not reduce anyone’s Deferred Compensation Account or an optional form of payment on such Deferred Compensation Account. In such event, the Plan will remains in effect until all Accounts are paid in accordance with the Plan terms, or, if earlier, upon the Employer’s termination of the Plan.

			

 

XIV.     MISCELLANEOUS

 

	
			14.1

				
			Not Employment Contract. This Plan is not a contract for employment between the Employer and any Eligible Director who is a Participant. This Plan does not entitle any Participant to continue in the service with the Employer, and benefits under the Plan are limited to payment of a Participant’s Vested Deferred Compensation Account in accordance with the terms of the Plan.

			

 

	
			14.2 

				
			Severability. If the Employer or any proper authority determines any provision of the Plan will cause taxation under Code §409A or is otherwise invalid, the remaining portions of the Plan will continue in effect and will be interpreted consistent with the elimination of the invalid provision.

			

 

	
			14.3

				
			Notice and Elections. Any Notice given or Election made under the Plan must be in writing and must be delivered or mailed by certified mail, to the Employer or to the Participant or Beneficiary as appropriate. The Employer will prescribe the form of any Plan Notice or Election to be given to or made by Participants. Any notice or election will be deemed given or made as of the date of delivery, or if given or made by certified mail, as of 3 business days after mailing.

			

 

28

 

 

	
			14.4

				
			Account Statements. The Employer from time to time will provide each Participant with a statement of the Participant’s Vested Deferred Compensation Account as of the most recent Valuation Date. The Employer also will provide Account statements to any Beneficiary of a deceased Participant with a Vested Deferred Compensation Account remaining in the Plan.

			

 

	
			14.5

				
			Accounting. The Employer will maintain for each Participant, as is necessary for proper administration of the Plan, such Participant’s Accounts under this Plan.

			

 

	
			14.6

				
			Reporting. The Employer will report Deferred Compensation for Eligible Directors Participants on Form 1099-MISC for Director Participants in accordance with Notice 2005-1 and Applicable Guidance.

			

 

	
			14.7

				
			Incorporation of Applicable Guidance. In the event of Applicable Guidance that is contrary to any Plan provision, the Employer, as of the effective date of the Applicable Guidance, will operate the Plan in conformance therewith and will disregard any inconsistent Plan provision. Any such Applicable Guidance is deemed to be incorporated by reference into the Plan and to supersede any contrary Plan provision during any period in which the Employer is permitted to comply operationally with the Applicable Guidance and before a formal Plan amendment is required.

			

 

 

IN WITNESS WHEREOF, this Plan has been executed this ______ day of _____________, 2018.

 

	 	
			Plan Sponsor

			First Community Bankshares, Inc. 

			 

			By:      __________________________________

			 

			Title:     __________________________________

			 

			Affiliated Participating Employers:

			(1) First Community Bank

				 
	 	 	 
	 	By: ____________________________________	 

 

29

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