EXHIBIT 10.36
CULP, INC.
DEFERRED COMPENSATION PLAN FOR
CERTAIN SELECTED KEY EMPLOYEES
Effective May 1,
2002, Culp, Inc. (the “Company”) adopted the Culp, Inc.
Deferred Compensation Plan for Certain Selected Key Employees (the
“Plan”). Effective July 1, 2009, the Company
desires to amend and restate the Plan. The Company, in
consideration for future services to be performed by Participants,
hereby sponsors this Plan for the purpose of providing deferred
compensation for its Participants. It is intended that
the Plan constitute an unfunded arrangement maintained exclusively
for the purpose of providing deferred compensation for a select
group of management or highly compensated employees, for purposes
of Title I of the Employee Retirement Income Security Act of 1974
( A ERISA @ ), as amended.
Section 2 -
Definitions and Other Provisions
Account - A separate account maintained by the Company,
on its books and records, for each separate Participant in the
Plan. At the time set forth herein, on the
Company’s books and records, each separate
Participant’s Account shall be credited with all of the
following amounts: (i) the principal amount of a
Participant’s Bonus Deferral under the Plan; (ii) the
principal amount of a Participant’s Salary Deferral under the
Plan; (iii) the principal amount of Nonelective Contributions under
the Plan; and (iv) Interest, as defined below, on the entire amount
credited to a Participant’s Account, under the
Plan.
Beneficiary - On a form that may be obtained from the
Company, a Participant may designate one or more persons (including
an estate or a trust) as a Beneficiary to receive a distribution in
the event of the Participant’s death. If no
Beneficiary is designated, or, if the designated Beneficiary is not
alive at the time of the Participant’s death, the
Participant’s benefits, payable under the Plan, will be paid
to the Participant’s estate.
Bonus -
Remuneration paid from the Company to a Participant, which is not
part of a Participant’s Salary.
Bonus
Deferral - Any Bonus
deferred under the Plan, pursuant to a Participant’s Bonus
Deferral Election.
Bonus
Deferral Election - A
Participant’s written election to defer the receipt of a
stipulated amount of Bonus, that may be earned by the Participant
during the succeeding calendar year.
Company - Culp, Inc. a North Carolina corporation, or its
successor.
Compensation - The total remuneration paid from the Company to
a Participant during any Plan Year, including Salary and
Bonus.
Deferred
Compensation Committee -
The group of individuals that administer the Plan, consisting of
the following officers of the Company: (i) President and Chief
Executive Officer; (ii) the Chief Financial Officer; and (iii) the
Vice President, Human Resources. Any member of the
Deferred Compensation Committee may also be a Participant in the
Plan. The Deferred Compensation Committee shall have the
power to construe and interpret the provisions of the Plan, and
such other discretionary power as provided in the Plan, or as may
be needed to administer the Plan.
Effective
Date - The effective Date
of the Plan was May 1, 2002. The effective date of the
amendment and restatement of the Plan is July 1, 2009.
Interest - An amount, determined each calendar
quarter, and then credited to each Participant's Account on the
Company’s books and records, at a rate determined by the
Company’s Compensation Committee of the Company’s Board
of Directors, in their sole and absolute discretion, from
time-to-time. Currently, the amount of such interest is
the same as the interest rate on a thirty year Treasury note plus
two and one-half percent (2 2 %).
Nonelective
Contribution -
Any contribution made by the Company under the Plan on behalf of
any Participant, which is not part of such Participant’s
Bonus Deferral or Salary Deferral.
Participant - An employee of the Company, that is considered
to be a highly compensated employee, or within a select group of
management, for purposes of ERISA, who is designated by the
Committee as eligible to participate in the Plan, and who is
actually participating in the Plan.
Plan - This the Culp, Inc. Deferred
Compensation Plan For Certain Selected Key Employees.
Plan
Year - The Plan Year shall
begin on January 1 and end on December 31.
Salary -
All remuneration, including commissions, paid from the Company to a
Participant during any Plan Year, except for any Bonus.
Salary
Deferral - Any Salary
deferred under the Plan, pursuant to a Participant’s Salary
Deferral Election.
Salary
Deferral Election - The
Participant’s written election to forego the receipt of a
stipulated amount of Salary to be earned by the Participant during
the succeeding Plan Year.
Section 3 -
Deferral Elections
Prior to the
beginning of any Plan Year, a Participant may execute and deliver
to the Committee a Salary Deferral Election, under which the
Participant may elect to defer a stipulated amount of Salary,
whi
