Exhibit 10.35
COOPER-STANDARD AUTOMOTIVE
INC.
NONQUALIFIED SUPPLEMENTARY
BENEFIT PLAN
Amended and Restated as of
January 1, 2009
COOPER-STANDARD AUTOMOTIVE
INC.
NONQUALIFIED SUPPLEMENTARY
BENEFIT PLAN
INDEX
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Page
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Article I.
Purpose
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1.1
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Purpose
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1
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Article II.
Definitions and Terms
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2.1
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Definitions and
Terms
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1
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2.2
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Construction
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5
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Article III.
Eligibility and Participation
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3.1
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Eligibility and
Participation
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5
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3.2
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Ineligible
Participant
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5
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Article IV.
Benefits Under This Plan
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4.1
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Amount of
Supplemental Retirement Benefit
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6
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4.2
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Amount of
Supplemental Savings Plan Benefit
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7
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4.3
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Investment
Return on Supplemental Savings Plan Benefits
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8
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4.4
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Limitation on
Benefits
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8
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Article V.
Payment of Supplemental Benefits
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5.1
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Supplemental
Benefits are Unfunded
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8
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5.2
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Payment of
Deferred Vested Supplemental Benefits which were Vested at December
31, 2004
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8
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5.3
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Payment of
Supplemental Retirement Benefits on or before December 31,
2008
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8
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5.4(a)
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Payment of
Supplemental Retirement Benefits determined by reference to final
average pay formula after December 31, 2008
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9
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5.4(b)
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Payment of
Supplemental Retirement Benefits determined by reference to the
Non-Grandfathered Cash Balance Formula after December 31,
2008
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9
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5.5
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Payment of
Supplemental Savings Plan Benefits
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10
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5.6
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Payment of
Supplemental Savings Plan Benefits
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on Account of
an Unforeseeable Emergency
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10
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5.7
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Payments upon
Separation from Service on Account of a Change in
Control
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10
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5.8
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Payments upon
Participant’s Death before Retirement
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10
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5.9
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Accelerations
or Delays of Payments
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11
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Article VI.
Participant’s Supplemental Savings Plan
Accounts
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6.1
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Establishment
of Accounts
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11
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6.2
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Deemed
Investments
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11
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6.3
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Accounting
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11
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6.4
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Adjustments to
Accounts
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11
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6.5
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Statement of
Accounts
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12
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6.6
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Accounts for
Recordkeeping Purposes Only
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12
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VII.
Financing Benefits
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7.1
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Investment of
Accounts
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12
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7.2
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Financing of
Benefits
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12
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7.3
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Funding
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12
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Article
VIII. Beneficiaries
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8.1
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Beneficiary
Designation
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13
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8.2
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Facility of
Payment
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13
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8.3
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Amendments
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14
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Article IX.
Administration
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9.1
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Administration
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14
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9.2
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Plan
Administrator
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15
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9.3
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Binding Effect
of Decisions
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15
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9.4
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Successors
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15
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9.5
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Indemnity of
Committee and Administrator
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15
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9.6
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Claims
Procedure
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15
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9.7
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Actuary
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16
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Article X.
Amendment and Termination
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10.1
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Amendment
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17
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10.2
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Termination
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17
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Article XI.
Miscellaneous
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11.1
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No Guarantee of
Employment or Service
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18
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11.2
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Governing
Law
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18
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11.3
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Non
Assignability
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19
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11.4
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Severability
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19
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11.5
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Withholding
Taxes
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19
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11.6
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Legal Fees,
Expenses Following a Change of Control
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20
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11.7
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Top-Hat
Plan
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20
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11.8
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Miscellaneous
Distribution Rules
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21
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11.9
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Compliance with
Code Section 409A
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21
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COOPER- STANDARD AUTOMOTIVE
INC.
NONQUALIFIED SUPPLEMENTARY
BENEFIT PLAN
Article I. Purpose
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1.1.
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Purpose . The purpose of this Plan is, as contemplated
by Section 3(36) of Title I of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) and as
contemplated in various Employment Agreements, to compensate for
the loss of
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a.
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retirement
benefits and certain death benefits under the Cooper-Standard
Automotive Inc. Salaried Retirement Plan, and/or
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b.
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Company
Contributions under the Cooper-Standard Automotive Inc. Investment
Savings Plan,
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when benefits under the qualified
plans maintained in whole or in part by the Company are limited due
to (i) Section 415, Section 401(a)(17),
Section 401(k) or Section 401(m) of the Internal Revenue
Code of 1986, as amended (“Code”) or
Section 2004(d) of ERISA, or (ii) certain provisions in
the qualified plans.
For purposes of clarification, this
Plan does not provide for a restoration of qualified
benefits lost due to the freeze of the Cooper-Standard Automotive
Inc. Salaried Retirement Plan effective February 1, 2009 nor
the qualified benefits lost due to the suspension of fixed matching
contributions under the Cooper-Standard Automotive Inc. Investment
Savings Plan effective January 1, 2009.
Article II. Definitions and
Terms; Construction
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2.1.
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Definitions
and Terms .
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(a)
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“Account” means the bookkeeping account maintained on the
books of the Company pursuant to Article VI for the purpose of
accounting for the allocations and distributions made under the
Plan.
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(b)
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“Accounting Date”
means each business day.
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(c)
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“Accounting Period”
means the period beginning on the
day immediately following an Accounting Date and ending on the next
following Accounting Date.
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(d)
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“Administrator”
means a committee consisting of one
or more persons who shall be appointed by and serve at the pleasure
of the Committee.
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(e)
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“Affiliate” means, with respect to an entity, any entity
directly or indirectly controlled, controlled by, or under common
control with, such first entity within the meaning of Code
Section 414(b) or (c); provided that for purposes of
determining if a Participant has incurred a Separation from
Service, the phrase “at least 50 percent” shall be used
in place of the phrase “at least 80 percent” each place
it appears therein or in the regulations thereunder.
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(f)
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“Beneficiary”
means the person or persons (natural
or otherwise) designated or deemed to be designated by the
Participant pursuant to Article VIII to receive benefits payable
under the Plan in the event of Participant’s
death.
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(g)
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“Board” means the Board of Directors of the
Company.
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(h)
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“Change of Control”
means the occurrence of any of the
following events:
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(1)
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the sale or
disposition, in one or a series of related transactions, of all or
substantially all of the assets of CSA to any “person”
or “group” (as such terms are defined in Sections
13(d)(3) and 14(d)(2) of the Exchange Act) other than Permitted
Holders; or
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(2)
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any person or
group, other than Permitted Holders, is or becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5
under the Exchange Act), directly or indirectly, of greater than or
equal to 50% of the total voting power of the voting stock of CSA,
including by way of merger, consolidation or otherwise, except
where one or more of the Sponsors and/or their respective
Affiliates, immediately following such merger, consolidation or
other transaction, continue to have the ability to designate or
elect a majority of the Board (or the board of directors of the
resulting entity or its parent company).
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Notwithstanding that a transaction
or series of transactions does not constitute a Change of Control,
with respect to any Participant it shall be deemed a Change of
Control for purposes of the Participant’s entitlements
hereunder if clause (1), above, is satisfied in respect of the
business or division in which such Participant is principally
engaged. For the avoidance of doubt, a Change of Control pursuant
to the immediately preceding sentence shall not apply to any
Participant whose employment is not primarily with and for the
business or division that is sold. For purposes of this Paragraph
(h), “Permitted Holders” means, as of the date of
determination, any and all of (i) an employee benefit plan (or
trust forming a part thereof) maintained by (A) the Company,
an Affiliate or a related employer or (B) any corporation or
other person of which a majority of its voting power of its voting
securities or equity interest is owned, directly or indirectly, by
the Company, an Affiliate or a related employer and (ii) the
Sponsors and any of their respective Affiliates. No “Change
of Control” shall occur unless such transaction qualifies as
a change of control under Code Section 409A.
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(i)
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“
Committee ” shall mean the Compensation Committee of
the Board.
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(j)
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“Company” means the Cooper-Standard Automotive Inc., an
Ohio corporation, and any subsidiary thereof which may be added to
this Plan by action of the Board of Directors, and any successor or
successors thereto.
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(k)
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“Cooper-Standard Automotive Inc. Salaried
Retirement Plan” means the Cooper-Standard Automotive Inc.
Salaried Retirement Plan, as amended or restated from time to
time.
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(l)
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“Cooper-Standard Automotive Inc.
Investment Savings Plan” means the Cooper-Standard Automotive Inc.
Investment Savings Plan, as amended or restated from time to
time.
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(m)
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“CSA” means Cooper-Standard Holdings Inc., formerly
known as CSA Acquisition Corp.
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(n)
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“Employee” means any employee of the Company or an
Affiliate who is, as determined by the Administrator, a member of a
“select group of management or highly compensated
employees” of the Company, within the meaning of ERISA, and
who is designated by the Administrator as eligible to participate
in the Plan.
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(o)
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“Participant”
means any employee who is a
participant in the Cooper-Standard Automotive Inc. Salaried
Retirement Plan (or who would have met participation requirements
under the Cooper-Standard Automotive Inc. Salaried Retirement Plan
were it not for the amendment closing participation for employees
hired on or after January 1, 2009) and/or is a participant in
the Cooper-Standard Automotive Inc. Investment Savings Plan who has
been designated as a member of a select group of management and
highly compensated employees eligible to participate in this Plan,
and whose aggregate benefits therefrom are limited by
(i) Section 415, Section 401(a)(17),
Section 401(k) or Section 401(m) of the Code or
Section 2004(d) of ERISA or (ii) certain provisions in
the qualified plans.
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(p)
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“Plan” means this Cooper-Standard Automotive Inc.
Nonqualified Supplementary Benefit Plan, as amended or restated
from time to time. This Plan was split-off from the Cooper
Tire & Rubber Company Nonqualified Supplementary Benefit
Plan, effective December 23, 2004.
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(q)
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“ Plan
Year” means the 12-month period beginning January 1
and ending December 31, with a first short plan year from
December 23, 2004 to December 31, 2004.
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(r)
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“Retirement” or “Retirement
Date” means the
later of (i) termination of employment with the Company and
its Affiliates or (ii) attainment of the age and service
necessary to qualify for early or normal retirement under the
Cooper-Standard Automotive Inc. Salaried Retirement
Plan.
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(s)
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“Retirement Committee”
has the meaning set forth in Article
XIV of the Cooper-Standard Automotive Inc. Investment Savings
Plan.
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(t)
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“Separation from Service”
means the date on which a
Participant terminates employment from the Company and its
Affiliates, or if the Participant continues to provide services,
following his or her termination of employment, within the meaning
of Code Section 409A, from the Company and its Affiliates.
Specifically, if a Participant continues to provide services to the
Company or an Affiliate in a capacity other than as an employee,
such shift in status is not automatically a Separation from
Service. A Participant will be treated as having terminated
employment from the Company and its Affiliates in accordance with
the following procedures:
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(1)
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If a
Participant takes a leave of absence from the Company or an
Affiliate for purposes of military leave, sick leave or other bona
fide leave of absence, the Participant’s employment will be
deemed to continue for the first six (6) months of the leave
of absence, or if longer, for so long as the Participant’s
right to reemployment is provided either by statute or by contract;
provided that if the leave of absence is due to a medically
determinable physical or mental impairment that can be expected to
result in death or last for a continuous period of not less than
six (6) months, where such impairment causes the Participant
to be unable to perform the duties of his or her position of
employment or any substantially similar position of employment, the
leave may be extended for up to twenty-nine (29) months
without causing a termination of employment. If the period of the
leave exceeds the applicable time period set forth above, and the
Participant’s right to reemployment is not provided by either
statute or contract, the Participant will be considered to have
terminated employment on the first day after the end of the
applicable period set forth above.
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(2)
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If a
Participant’s level of bona fide services for the Company and
its Affiliates permanently decreases to twenty percent
(20%) or less of the average level of bona fide services
performed by the Participant (whether as an employee or independent
contractor) for the Company and its Affiliates over the immediately
preceding thirty-six (36) month period (or such lesser period
of services), the Participant will be presumed to have terminated
employment.
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(3)
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If a
Participant’s level of bona fide services for the Company and
its Affiliates continues at fifty percent (50%) or greater of
the average level of bona fide services performed by the
Participant (whether as an employee or independent contractor) for
the Company and its Affiliates over the immediately preceding
thirty-six (36) month period (or such lesser period of
services), the Participant will be presumed to have continued in
employment.
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(u)
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“Specified Employee”
means a Participant who, as of the
date of his or her Separation from Service, is a key employee (as
defined in Code Section 416(i), but without regard to Code
Section 416(i)(5)) of the Company or an Affiliate any of the
stock of which is publicly traded on an established securities
market. A Participant is a key employee under Code
Section 416(i) if the employee meets the requirements of Code
Section 416(i)(1)(A)(i), (ii) or (iii), applied in
accordance with the regulations under Code Section 416, but
disregarding Code Section 416(i)(5), at any time during the
12-month period ending on an identification date. If a person is a
key employee as of an identification date, the person is treated as
a key employee for the 12-month period beginning on the first day
of the fourth (4th) month following the identification date.
The identification date for the Plan shall be September 30 of
each year. Thus, an employee who satisfies the foregoing
requirements for key employee status as of September 30 of a
year shall be treated as a key employee for the following calendar
year.
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(v)
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“Sponsors” means Cypress Merchant Banking Partners II L.P.,
Cypress Merchant Banking II C.V., 55th Street Partners II L.P.,
Cypress Side-By-Side LLC, GS Capital Partners 2000, L.P., GS
Capital Partners 2000 Offshore, L.P., GS Capital Partners 2000
Gmbh & Co. Beteiligungs KG, GS Capital Partners 2000
Employee Fund, L.P. and Goldman Sachs Direct Investment Fund 2000,
LP.
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(w)
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“Supplemental Retirement Benefit”
means that benefit described in Section 4.1.
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(x)
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“
Supplemental Savings Plan Benefit” means that benefit
described in Section 4.2.
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(y)
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“Unforeseeable Emergency”
means a severe financial hardship of
the Participant, resulting from any of the following:
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(1)
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an illness or
accident of the Participant, his or her spouse or the
Participant’s dependent or dependents (as defined in Code
Section 152(a));
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(2)
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a loss of the
Participant’s property due to casualty (including the need to
rebuild a home following damage to such home not otherwise covered
by insurance, for example, as a result of a natural disaster);
or
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(3)
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other similar
extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Participant, as determined by
the Administrator.
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2.2
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Construction . Wherever any words are used in the masculine,
they shall be construed as if they were used in the feminine in all
cases where they would so apply; and wherever any words are used in
the singular or the plural, they shall be construed as through they
were used in the plural or singular, as the case may be, in all
cases where they would so apply. Titles of articles and sections
are for general information only, and the Plan is not to be
construed by reference to such items. The words
“hereof,” herein,” and hereunder,” and
other similar compounds of the word “here” shall mean
and refer to the entire Plan, and not to any particular provision
or Section.
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Article III. Eligibility and
Participation
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3.1
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Eligibility
and Participation .
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(a)
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Eligibility . Eligibility to participate in the Plan for any
Plan Year is limited to those management and/or highly compensated
Employees who are designated, from time to time, by the
Administrator.
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(b)
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Termination
of Participation .
Participation in the Plan shall continue as long as the Participant
is eligible to receive benefits under the Plan.
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3.2.
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Ineligible
Participant .
Notwithstanding any other provisions of this Plan to the contrary,
if the Administrator determines that any Participant may not
qualify as a “management or highly compensated
employee” within the meaning of ERISA or regulations
thereunder or otherwise determines that the Participant is no
longer eligible to participate, the Administrator may determine, in
its sole discretion, that such Participant shall cease to be
eligible to participate in this Plan.
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Article IV. Benefits Under This
Plan
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4.1.
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Amount of
Supplemental Retirement Benefit .
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The amount of Supplemental
Retirement Benefit due under this Section 4.1 is to be
determined as if the amendment to freeze accruals under the
Cooper-Standard Automotive Inc. Salaried Retirement Plan effective
February 1, 2009 did not occur.
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(a)
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Amount of
Supplemental Retirement Benefit for Grandfathered
Participants . If a
Participant is considered to be a “Grandfathered
Participant” under Section 1.02 in the Cooper-Standard
Automotive Inc. Salaried Retirement Plan, then the amount of
Supplemental Retirement Benefit that a Participant or beneficiary
is to receive under this Plan is the amount of benefit which such
Participant or beneficiary would be entitled to receive under the
Cooper-Standard Automotive Inc. Salaried Retirement Plan as a
Grandfathered Participant, as if such benefit were computed without
giving effect to the limitations imposed by Section 415 and
Section 401(a)(17) of the Code and Section 2004(d) of
ERISA, less the amount of actual benefit to be paid from the
Cooper-Standard Automotive Inc. Salaried Retirement Plan as a
Grandfathered Participant.
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(b)
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Amount of
Supplemental Retirement Benefit for Non-Grandfathered
Participants . The amount
of Supplemental Retirement Benefit payable under this Plan to a
Non-Grandfathered Participant or beneficiary (who therefore accrues
on a cash balance basis under this Plan) shall be equal
to:
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(i)
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The amount of
benefit which such Non-Grandfathered Participant or beneficiary
would accrue on a cash balance basis under the Cooper-Standard
Automotive Inc. Salaried Retirement Plan as if such benefit were
computed without giving effect to the limitations imposed by
Section 415 or Section 401(a)(17) of the Code and
Section 2004(d) of ERISA, and for years beginning on or after
January 1, 2006, based on twice the Participant’s
Compensation, as such term is defined in Section 1.02 of the
Cooper-Standard Automotive Inc. Salaried Retirement Plan, but
without giving effect to the aforementioned limitations imposed by
Section 415 or Section 401(a)(17) of the Code and ERISA
Section 2004(d), less
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(ii)
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The amount of
benefit which such Non-Grandfathered Participant or beneficiary
actually accrues on a cash balance basis under the Cooper-Standard
Automotive Inc. Salaried Retirement Plan.
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(c)
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Amount of Supplemental
Retirement Benefit for Participants With Employment Contracts at
December 31, 2001 .
For those Participants with employment contracts as of
December 31, 2001, the amount of Supplemental Retirement
Benefit computed under the Plan shall be: (1) the
Participant’s cash balance benefit as computed in
Section 4.1(b) above, plus (2) [ (a) the final
average pay
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benefit determined under the Cooper
Tire & Rubber Company Salaried Employees’ Retirement
Plan (computed without giving effect to amendments to the Cooper
Tire & Rubber Company Salaried Employees’ Retirement
Plan effective on January 1, 2002 that changed the rate of
future benefit accruals), minus (b) the monthly equivalent of
the Participant’s cash balance benefit as computed in 4.1(b)
above, minus (c) the monthly equivalent of the cash balance
benefit under the Cooper-Standard Automotive Inc. Salaried
Retirement Plan]. Service and compensation from such
Participant’s immediately previous employer shall be
considered for benefit computation purposes.
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(d)
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No
Duplication of Benefits .
Notwithstanding the foregoing, however, no retirement benefits
shall be paid under this Plan to or with respect to any Participant
who receives a payment, under an agreement with the Company (or any
successor to the Company) or under any plan, program or arrangement
of the Company (or any successor of the Company), the amount of
which is calculated to be the actuarial equivalent of the
retirement benefit that the Participant has accrued (prior to such
payment) under this Plan.
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4.2.
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Amount of
Supplemental Savings Plan Benefit .
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The amount of Supplemental Savings
Plan Benefit due under this Section 4.2 is to be determined as
if the amendment to suspend fixed matching contributions under the
Cooper-Standard Automotive Inc. Investment Savings Plan effective
January 1, 2009 did not occur.
The benefits that a Participant or
beneficiary is entitled to receive under this Plan as a supplement
to benefits under the Cooper-Standard Automotive Inc. Investment
Savings Plan shall be equal to the excess of (a.) over (b.) below
for each calendar year in which this Plan is in effect, aggregated
for all such years, plus the investment return as specified in
Section 4.3 below:
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a.
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Six percent
(6%) of the Participant’s Compensation, as that term is
defined in Article I, Section 12 of the Cooper-Standard
Automotive Inc. Investment Savings Plan, but without regard to the
limitations imposed by Section 415 or Section 401(a)(l7)
of the Code and Section 2004(d) of ERISA, less
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b.
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The amount of
Company Contributions actually credited (or deemed to be credited
on or after January 1, 2009) to the Participant’s
account in such year under Article IV of the Cooper-Standard
Automotive Inc. Investment Savings Plan.
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If (b) above shall be zero
because of the limitations imposed by Section 415,
Section 401(k) and Section 401(m) of the Code and
Section 2004(d) of ERISA, a Participant shall not be required
to be a participant in the Cooper-Standard Automotive Inc.
Investment Savings Plan to be entitled to receive a Supplemental
Savings Plan Benefit in the amount determined under (a.) above as
if Participant had been a participant in the Cooper-Standard
Automotive Inc. Investment Savings Plan.
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4.3.
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Investment
Return on Supplemental Savings Plan Benefits
. The investment return to be
included in the calculation of benefits under Section 4.2
shall begin to accrue with respect to Supplemental Savings Plan
Benefits determined for any year on the first business day in
January in the following year and shall be deemed to be invested in
the prevailing stable value fund or under any other method
designated by the Employer.
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Current and future allocations
between the investment alternatives (“Deemed
Investments”) shall be directed by each Participant in
written instructions delivered to Company with such advance notice,
at such times and in such manner as prescribed by the
Administrator. If a Participant fails to provide any such written
directions to the Company, all of the amounts credited to his or
her Supplemental Savings Plan Benefit account shall be deemed to be
invested in the prevailing stable value fund.
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4.4.
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Limitation
on Benefits . In applying
Section 415, Section 401(a)(17), Section 401(k) and
Section 401(m) of the Code and Section 2004(d) of ERISA,
all contributions to all defined contribution plans are taken into
account.
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Article V. Payment of
Supplemental Benefits
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5.1.
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Supplemental
Benefits are Unfunded .
Payment of supplemental benefits hereunder shall be accomplished by
means of unfunded payments directly from the Company or from any
grantor trust established by the Company to fund such
payments.
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5.2
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Payment of
Deferred Vested Supplemental Benefits which were Vested at
December 31, 2004 .
Supplemental Retirement Benefits and Supplemental Savings Plan
Benefits that were vested at December 31, 2004 for
participants who had terminated employment prior to
December 31, 2004 (“Deferred Vested Supplemental
Benefits” ), shall be considered “grandfathered”
for Code Section 409A purposes and hence not subject to Code
Section 409A. As such, the time and form of payment of such
benefits do not need to be amended to comply with Code
Section 409A and will continue as provided for in this Plan as
of December 31, 2004.
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