EXHIBIT 10.40
SANMINA-SCI
CORPORATION
DEFERRED COMPENSATION
PLAN
FOR OUTSIDE
DIRECTORS
(Originally effective June 1,
2002)
Amended and restated effective
January 1, 2009
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TABLE OF CONTENTS
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Page
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ARTICLE
I
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PURPOSE
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4
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ARTICLE
II
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DEFINITIONS
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4
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2.1
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Account
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4
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2.2
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Beneficiary
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4
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2.3
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Board
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4
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2.4
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Change of
Control
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4
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2.5
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Code
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5
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2.6
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Code section
409A
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5
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2.7
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Committee
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5
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2.8
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Committee
Charter
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5
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2.9
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Compensation
Committee
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5
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2.10
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Common
Stock
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5
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2.11
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Company
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5
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2.12
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Compensation
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5
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2.13
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Deferral
Commitment
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5
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2.14
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Deferral
Period
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5
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2.15
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Deferred
Compensation
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5
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2.16
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Eligible
Director
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5
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2.17
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Market
Value
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6
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2.18
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Participant
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6
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2.19
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Participation
Agreement
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6
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2.20
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Plan
Year
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6
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2.21
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Share
Units
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6
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2.22
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Separation from
Service
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6
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ARTICLE
III
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DEFERRAL
COMMITMENTS
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6
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3.1
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Participation
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6
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3.2
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Initial Year of
Participation
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6
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3.3
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Elective
Deferrals
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6
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3.4
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Limitations on
Deferral Commitments
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6
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ARTICLE
IV
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DEFERRED
COMPENSATION ACCOUNTS
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7
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4.1
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Accounts
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7
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4.2
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Deferred
Compensation
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7
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4.3
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Share
Units
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7
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4.4
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Dividends
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7
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4.5
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Determination
of Accounts
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7
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4.6
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Vesting of
Accounts
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8
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4.7
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Statement of
Accounts
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8
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4.8
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Adjustment of
Share Units
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8
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ARTICLE
V
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PLAN
BENEFITS
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8
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5.1
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After
Separation from Service
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8
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5.2
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Change of
Control
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8
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5.3
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Tax
Withholding
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8
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5.4
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Payment to
Guardian
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9
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ARTICLE
VI
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BENEFICIARY
DESIGNATION
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9
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6.1
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Beneficiary
Designation
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9
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6.2
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Changing
Beneficiary
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9
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6.3
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Community
Property
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9
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6.4
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No Beneficiary
Designation
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9
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ARTICLE
VII
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ADMINISTRATION
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10
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7.1
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Committee
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10
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7.2
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Agents and
Delegation
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10
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7.3
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Binding Effect
of Decisions
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10
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7.4
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Indemnification
of Committee
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10
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ARTICLE
VIII
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AMENDMENT AND
TERMINATION OF PLAN
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10
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8.1
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Amendment
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10
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8.2
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Right to
Terminate Plan
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10
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ARTICLE
IX
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MISCELLANEOUS
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11
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9.1
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Unfunded
Plan
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11
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9.2
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Trust
Fund
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11
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9.3
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Nonalienability
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12
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9.4
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Governing
Law
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12
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9.5
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Validity
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12
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9.6
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Notice
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12
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9.7
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Successors
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12
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SANMINA-SCI
CORPORATION
DEFERRED COMPENSATION PLAN FOR
OUTSIDE DIRECTORS
ARTICLE I
PURPOSE
Effective June 1, 2002 the Board of Directors of
Sanmina-SCI Corporation (“Sanmina-SCI”) approved the
establishment of the Sanmina-SCI Corporation Deferred Compensation
Plan for Outside Directors (the “Plan”). The
Plan is intended to provide eligible Sanmina-SCI Directors an
opportunity to defer payment of all or part of the Compensation
which is payable to them for acting as Directors of
Sanmina-SCI. Sanmina-SCI now approves the amendment and
restatement of the Plan effective January 1, 2009. The
Plan is intended to reflect the requirements of section 409A of the
Internal Revenue Code and the regulations issued thereunder, and,
in all respects, shall be administered and construed in accordance
with such requirements. Prior to 2009, the Plan was
administered in accordance with Code section 409A.
ARTICLE II
DEFINITIONS
For purposes of this Plan, the following terms
shall have the meanings indicated, unless the context clearly
indicates otherwise:
2.1 Account
. “Account” means the account established
for a Participant pursuant to Article IV. A Participant’s
Account shall be utilized solely as a device for the determination
and measurement of the amounts to be paid to the Participant
pursuant to this Plan and shall not constitute or be treated as a
trust fund of any kind.
2.2 Beneficiary
. “Beneficiary” means the person, persons or
entity entitled under Article VI to receive any Plan benefits
payable under Article V after a Participant’s
death.
2.3 Board
. “Board” means the Board of Directors of
Sanmina-SCI.
2.4 Change of
Control . “Change of Control”
means:
(a) A change in the
effective control of the Company as defined under Treasury
Regulations section 1.409A-3(i)(5)(vi)(A)(1);
(b) A change in the
ownership of the Company as defined under Code section 409A;
or,
(c) A change in the
ownership of a substantial portion of the Company’s assets as
defined under Code section 409A.
2.5 Code
. “Code” means the Internal Revenue Code, as
amended from time to time.
2.6 Code section
409A . Code section 409A shall refer to,
collectively, section 409A of the Code and the regulations and IRS
guidance issued thereunder.
2.7 Committee
. “Committee” means the Deferred
Compensation Plans Committee established pursuant to the Committee
Charter.
2.8 Committee
Charter . “Committee Charter” means the
Sanmina-SCI Corporation Deferred Compensation Plans Committee
Charter.
2.9 Compensation
Committee . “Compensation Committee”
means the Compensation Committee of the Board.
2.10 Common
Stock . “Common Stock” means the shares
of common stock of the Company.
2.11 Company
. “Company” means Sanmina-SCI Corporation
and any successor thereto.
2.12
Compensation . “Compensation” means
all fees payable to such Director during the year, including the
retainer for service as a member of the Board or any committees
thereof and meeting fees. Fees payable in the form of Common Stock
and any expense reimbursements for attending Board or committee
meetings shall not be included in the definition of
Compensation.
2.13 Deferral
Commitment . “Deferral Commitment” means
an election to defer Compensation made by a Participant pursuant to
Article III and submitted in a Participation Agreement.
2.14 Deferral
Period . “Deferral Period” means the
period over which a Director has elected to defer his Compensation.
Each calendar year shall be a separate Deferral Period.
2.15 Deferred
Compensation . “Deferred Compensation,”
means the amount of Compensation that a Participant elects to defer
pursuant to a Deferral Commitment.
2.16 Eligible
Director . “Eligible Director” means any
individual who is a member of the Board and who is not an employee
of the Company or any of its subsidiaries. An individual
shall become an Eligible Director only upon notification of his
eligibility to participate and the material terms of
participation.
2.17 Market
Value . “Market Value” means, with
respect to one share of Common Stock on any date, the closing price
for Common Stock listed in the composite tables in the “Wall
Street Journal” for the applicable date.
2.18 Participant
. “Participant” means any Eligible Director
who has made an election under Article III to defer any portion of
his or her Compensation for any Plan Year.
2.19 Participation
Agreement . “Participation Agreement”
means the Deferral Commitment agreement submitted by a Participant
to the Committee pursuant to Article III.
2.20 Plan Year
. “Plan Year” means the calendar
year.
2.21 Share Units
. “Share Units” means a unit of measurement
equivalent to one share of Common Stock, with none of the attendant
rights of a holder of such share, including, without limitation,
the right to vote such share and the right to receive dividends
thereon, except to the extent otherwise specifically provided
herein.
2.22 Separation from
Service . “Separation from Service”
shall have the meaning as set forth in Code section
409A.
ARTICLE III
DEFERRAL
COMMITMENTS
3.1
Participation . An Eligible Director may elect to
participate in this Plan with respect to any Deferral Period by
submitting a Participation Agreement to the Committee, prior to the
date established by the Committee, in the calendar year immediately
preceding the Deferral Period.
3.2 Initial Year of
Participation . In the event that an Eligible Director
first becomes eligible to participate during a calendar year, a
Participation Agreement must be submitted to the Committee no later
than thirty (30) days following the date the Director becomes an
Eligible Director. Such Participation Agreement shall be
effective only with regard to Compensation earned following the
submission of the Participation Agreement to the
Committee.
3.3 Elective
Deferrals . An Eligible Director’s Deferral
Commitment may defer all or part of the Compensation payable to the
Director during the Plan Year. Once made, a Deferral
Commitment shall be irrevocable for the Plan Year and, to the
extent permitted by the Committee, shall be effective for
subsequent Plan Years unless and until it is revoked.
3.4 Limitations on
Deferral Commitments . The following limitations
shall apply to Deferral Commitments:
(a) Minimum.
The minimum Deferral Commitment shall be two thousand dollars
($2,000) per Deferral Period.
(b) Maximum
. The maximum Deferral Commitment shall be one hundred percent
(100%) of the Participant’s Compensation.
(c) Changes in
Minimum or Maximum . The Committee may amend the Plan to
change the minimum or maximum deferral amounts from time to time by
giving written notice to all Participants. No such change may
affect a Deferral Commitment made prior to the Committee’s
action.
ARTICLE IV
DEFERRED COMPENSATION
ACCOUNTS
4.1 Accounts
. For record keeping purposes only, separate accounts
shall be maintained on the Company’s books and records for
each Participant to reflect the Participant’s interest under
the Plan.
4.2 Deferred
Compensation . The amount of Compensation deferred
by each Participant shall be credited to his or her Account as of
the date the Deferred Compensation would otherwise have been
payable. Any withholding of taxes or other amounts which
is required by state, federal or local law with respect to Deferred
Compensation shall be withhe