CHS/COMMUNITY HEALTH SYSTEMS,
INC.
SUPPLEMENTAL EXECUTIVE RETIREMENT
PLAN
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Page
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3
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2. DEFINITIONS AND CONSTRUCTION
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3
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3
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2.2 Captions; Section References
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7
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8
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8
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8
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3.2 Authority of the Committee
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8
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8
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8
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8
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8
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4. PARTICIPATION IN THE PLAN
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9
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4.1 Notification of Participation
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9
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4.2 Termination of Participation
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9
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5. BENEFITS UPON SEPARATION FROM SERVICE OR
DEATH
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9
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5.1 Normal Retirement Benefit
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9
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5.2 Early Retirement Benefit
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9
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10
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10
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5.5 Termination for Cause
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10
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6. BENEFITS UPON CHANGE IN CONTROL
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10
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6.1 Change in Control Benefit
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10
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6.2 Participants Under Age 55
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10
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6.3 Additional Years of Service
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11
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6.4 Certain Terminations of
Employment
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11
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11
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11
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11
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10. MODIFICATION AND TERMINATION
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11
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10.1 Amendment and Termination
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11
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10.2 Effect on Participants
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11
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- i -
TABLE OF CONTENTS
(continued)
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Page
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10.3 No Obligation to Continue Plan
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12
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11. CLAIMS AND REVIEW PROCEDURES
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12
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12. MISCELLANEOUS PROVISIONS
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12
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12
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12
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12.3 No Rights of Employment
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12
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13
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13
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EXHIBIT A Date of Hire for Certain Plan
Participants
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12
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CHS/COMMUNITY HEALTH SYSTEMS,
INC.
SUPPLEMENTAL EXECUTIVE RETIREMENT
PLAN
WHEREAS,
Community Health Systems, Inc. established the Community Health
Systems, Inc. Supplemental Executive Retirement Plan (the
“Original Plan”) on December 10, 2002;
and
WHEREAS,
the Original Plan was amended as of April 8, 2004, to change
the definition of “Service” thereunder; and
WHEREAS,
the Original Plan was next amended as of May 25, 2005, to
reflect the assumption of the Plan by CHS/Community Health Systems,
Inc. and the change of the name of the Original Plan to the
CHS/Community Health Systems, Inc. Supplemental Executive
Retirement Plan; and
WHEREAS,
the Original Plan was required to be maintained in good faith
compliance with Internal Revenue Code Section 409A and
guidance of the U.S. Department of Treasury thereunder for the
period beginning January 1, 2005, and ending December 31,
2008; and
WHEREAS,
the Original Plan is required to be restated to comply with
Internal Revenue Code Section 409A; and
WHEREAS ,
the Original Plan shall be amended and restated as the
CHS/Community Health Systems, Inc. Amended and Restated
Supplemental Executive Retirement Plan (the “Plan”),
effective as of January 1, 2009, except as otherwise stated
herein;
NOW,
THEREFORE , the Plan shall provide as follows:
1.
Purpose . The purpose of
this Plan is to advance the interests of CHS by encouraging
officers and other key employees of the Company and its
subsidiaries who will largely be responsible for the long-term
success and development of CHS to continue their employment with
the Company and its subsidiaries by providing retirement benefits
for them. The Plan is also intended to assist the Company and its
subsidiaries in attracting and retaining such employees and
stimulating their efforts on behalf of the Company and its
subsidiaries.
2.
Definitions and Construction.
2.1
Definitions. As used in the Plan, terms defined
parenthetically immediately after their use shall have the
respective meanings provided by such definitions, and the following
words and phrases shall have the meanings specified below (in
either case, such terms shall apply equally to both the singular
and plural forms of the terms defined), unless a different meaning
is plainly required by the context:
(a)
“Actuarial Equivalent” shall mean a benefit of
equivalent value calculated based on the Uninsured Pensioners 1994
Mortality Table including Projections to 2003 using 50% of the Male
Rates and 50% of the Female Rates as prescribed for qualified
retirement plans under
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the General
Agreement on Trades and Tariffs (GATT) and a discount rate
equal to the yield on 10-Year Treasury Bonds as of the last day of
the previous month, but in no event greater than 4% per
annum.
(b)
“Annual Retirement Benefit” shall mean an amount equal
to a Participant’s Final Average Earnings multiplied by the
lesser of (i) 60%, or (ii) a percentage equal to 2%
multiplied by the Participant’s years of Service.
(c)
“Beneficiary” shall mean the person or persons
designated by a Participant pursuant to Section 7 to receive
the benefits to which a Participant is entitled upon the death of a
Participant.
(d)
“Board” shall mean the Board of Directors of the
Company or, as the context requires, CHS.
(e)
“Cause” shall mean a felony conviction of a Participant
or the failure of a Participant to contest prosecution for a
felony, or a Participant’s willful misconduct, dishonesty or
gross negligence, any of which is determined by the Board to be
directly and materially harmful to the business or reputation of
the Company or its Subsidiaries.
(f) “ Change in Control” shall mean the
occurrence of any of the following events, but only to the extent
such event would constitute a change in the ownership or effective
control of CHS, or in the ownership of a substantial portion of the
assets of CHS, as set forth in Code Section 409A(a)(2)(A)(v) and
defined in regulations promulgated by the U.S. Department of
Treasury thereunder:
(1)
An acquisition (other than directly from CHS) of any voting
securities of CHS (“Voting Securities”) by any Person
(as the term person is used for purposes of Section 13(d) or 14(d)
of the Securities Exchange Act of 1934, as amended (“Exchange
Act”)) immediately after which such Person has Beneficial
Ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of more than 50% of the then-outstanding shares
of Common Stock of CHS (“Shares”) or the combined
voting power of CHS’ then-outstanding Voting Securities;
provided, however, in determining whether a Change in Control has
occurred pursuant to this Section 2.1(f)(1), Shares or Voting
Securities which are acquired in a Non-Control Acquisition (as
hereinafter defined) shall not constitute an acquisition that would
cause a Change in Control. A “Non-Control Acquisition”
shall mean an acquisition by (i) an employee benefit plan (or
a trust forming a part thereof) maintained by the Company or any
Subsidiary, (ii) CHS or any Subsidiary, or (iii) any
Person in connection with a Non-Control Transaction (as hereinafter
defined);
(2)
The individuals who, as of the date hereof, are members of the
Board of CHS (“Incumbent Board”), cease for any reason
to constitute at least a majority of the members of the Board of
CHS or, following a Merger (as hereinafter defined) that results in
CHS having a Parent Corporation (as hereinafter defined), the board
of directors of the ultimate Parent Corporation; provided, however,
that if the election, or nomination for election, by the CHS common
stockholders, of any new director was approved by a vote of at
least two-thirds of the Incumbent Board of CHS, such new director
shall, for purposes of the Plan, be considered as a member of the
Incumbent Board of CHS; provided further, however, that no
individual shall be considered a member of the Incumbent Board of
CHS if such individual initially assumed office as a result
of
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either an
actual or threatened Election Contest (as described in
Rule 14a-11 promulgated under the Exchange Act) or other
actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board of CHS (“Proxy
Contest”), including by reason of any agreement intended to
avoid or settle any Election Contest or Proxy Contest;
or
(A)
A merger, consolidation or reorganization with or into the Company
or in which securities of the Company are issued
(“Merger”), unless such Merger, is a Non-Control
Transaction. A Non-Control Transaction shall mean a Merger
where:
(i)
the stockholders of CHS immediately before such Merger own,
directly or indirectly, immediately following such Merger, at least
50% of the combined voting power of the outstanding voting
securities of (x) the corporation resulting from such Merger
(“Surviving Corporation”), if 50% or more of the
combined voting power of the then outstanding voting securities of
the Surviving Corporation is not Beneficially Owned, directly or
indirectly, by another Person (“Parent Corporation”),
or (y) if there are one or more Parent Corporations, the
ultimate Parent Corporation; and
(ii)
the individuals who were members of the Incumbent Board of CHS
immediately prior to the execution of the agreement providing for
such Merger, constitute at least a majority of the members of the
board of directors of (x) the Surviving Corporation, if there
is no Parent Corporation, or (y) if there are one or more
Parent Corporations, the ultimate Parent Corporation.
(B)
A complete liquidation or dissolution of CHS; or
(C)
The sale or other disposition of all, or substantially all, of the
assets of CHS to any Person (other than a transfer to a Subsidiary
or under conditions that would constitute a Non-Control Transaction
with the disposition of assets being regarded as a Merger for this
purpose or the distribution to the CHS’ stockholders of the
stock of a Subsidiary or any other assets).
Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur
solely because any Person (“Subject Person”) acquired
Beneficial Ownership of more than the permitted amount of the
then-outstanding Shares or Voting Securities as a result of the
acquisition of Shares or Voting Securities by CHS which, by
reducing the number of Shares or Voting Securities
then-outstanding, increases the proportional number of shares
Beneficially Owned by the Subject Person, provided that if a Change
in Control would occur (but for the operation of this sentence) as
a result of the acquisition of Shares or Voting Securities by CHS,
and after such share acquisition by CHS the Subject Person becomes
the Beneficial Owner of any additional Shares or Voting Securities
which increases the percentage of the
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