Exhibit 10.3
------------
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this "Agreement") dated as of December 23,
2004 is entered into by and between The Middleby Corporation, a Delaware
corporation (the "Company"), Middleby Marshall Inc., a Delaware corporation
("MMI"), (collectively the "Employer"), and Xxxxx X. Xxxxxxx ("Employee").
R E C I T A L:
The Employer is a party to an employment agreement with Employee
dated May 16, 2002, as amended July 3, 2003, December 15, 2003, and May 27,
2004 (the "Prior Agreement").
The Employer desires to continue and extend the term of employment of
Employee as President and Chief Executive Officer of the Company and as
President and Chief Executive Officer of MMI and to have Employee serve as the
Chairman of the Board of Directors of the Company, and Employee desires to
serve the Employer in such capacities, all on the terms and conditions
hereinafter provided.
NOW, THEREFORE, in consideration of the mutual covenants contained in
this Agreement, Employee's employment by the Employer, the compensation to be
paid Employee while employed by the Employer, and other good and valuable
consideration, the receipt and sufficiency of which is acknowledged, the
parties agree as follows:
1. Employment. The Employer agrees to employ Employee and Employee
agrees to be employed by the Employer subject to the terms and
provisions of the Agreement.
2. Term. The employment of Employee by Employer as provided in Section 1
will be for a period commencing on the date of this Agreement (the
"Effective Date") and ending on March 1, 2012, unless sooner
terminated as hereinafter provided.
3. Duties. Employee shall serve as President and Chief Executive Officer
of the Company and as President and Chief Executive Officer of MMI,
or in such other executive capacities as the Board of Directors of
the Company or MMI, as applicable, may designate and shall have such
powers and duties as may be from time to time prescribed by the Board
of Directors of the Company or MMI, as applicable. Throughout the
term of this Agreement, the Employer shall take all action necessary
so that Employee shall serve as the Chairman of the Board of
Directors of the Company. Employee shall devote substantially all of
his time and effort as reasonably may be required for him to perform
the duties and responsibilities to be performed by him under the
terms of this Agreement.
4. Compensation.
(a) Base Salary. The Employer shall pay to Employee a base
salary at a rate per annum of $770,000, payable in
accordance with the normal payroll practices of Employer.
(b) Incentive Compensation. Employee shall be eligible to
participate in the Management Incentive Plan previously
adopted by the Employer, subject to all terms and conditions
thereof. Under such plan, if the Employer attains certain
pre-established performance goals (attainment of such goals
to be determined after taking into account any incentive
compensation to be paid to Employee and any other
participating employees under the Plan), Employee shall be
entitled to receive (i) 100% of his Base Salary as in effect
at the beginning of the fiscal year to which the award
relates, and (ii) for each year, an additional $35,000 for
each $120,000 by which the Employer's actual EBITDA exceeds
the goal. The performance goals, which are based on the
Employer's EBITDA, are set forth on Exhibit A hereto. The
maximum bonus payable to Employee under the Management
Incentive Plan shall be $3,500,000 and the Employer will
modify the Management Incentive Plan accordingly, subject to
the approval of the shareholders of the Company.
Notwithstanding the foregoing, the Employee's participation
in the Management Incentive Plan with respect to fiscal year
2004 shall be governed by the terms of the Prior Agreement.
(c) Expense Reimbursement. Employer shall reimburse Employee for
those reasonable legal and consulting expenses incurred by
him for personal financial, tax and estate planning
purposes.
(d) Restricted Stock Grant. The Company shall cause Employee to
be granted an aggregate of 300,000 shares of restricted
stock of the Company pursuant to the 1998 Stock Incentive
Plan (the "Restricted Stock"), to be allocated as provided
below, provided that such shares are available for grant
under the 1998 Stock Incentive Plan. The Company shall cause
Employee to be granted (i) 100,000 shares of the Restricted
Stock in December of 2004 (or as many of such shares as are
available to grant under the 1998 Stock Incentive Plan at
such time), (ii) 100,000 shares of the Restricted stock in
January of 2005 and (iii) any deficiency in the number of
shares required to bring the total grant to 300,000 shares
of the Restricted Stock (or as many of such shares as are
available to grant under the 1998 Stock Incentive Plan) on
the earlier to occur of (1) the date following the next
meeting of the shareholders of the Company after the
Effective Date at which the shareholders approve an
amendment to the 1998 Stock Incentive Plan increasing the
annual grant limit under such plan or (2) January of 2006,
with any deficiency to be made up as soon as possible
pursuant to the terms of the 1998 Stock Incentive Plan. The
Employer shall take all action necessary to ensure that the
grant of Restricted Stock contemplated by clause (iii) above
is permitted under the 1998 Stock Incentive Plan on the date
immediately following the date of the next meeting of the
shareholders of the Company after the Effective Date,
subject to the approval of such shareholders. The Restricted
Stock shall be subject to such terms and conditions as are
set forth in this Agreement and the other terms and
conditions of the 1998 Stock Incentive Plan. Until it shall
become vested in accordance with the provisions of this
Agreement, the Restricted Stock shall be forfeitable and
non-transferable. The Restricted Stock shall vest as
follows: 60,000 shares of the Restricted Stock that are not
yet vested shall vest on December 31, 2005; 60,000 shares of
the Restricted Stock that are not yet vested shall vest on
December 31, 2006; 60,000 shares of the Restricted Stock
that are not yet vested shall vest on December 31, 2007;
60,000 shares of the Restricted Stock that are not yet
vested shall vest on December 31, 2008; 60,000 shares of the
Restricted Stock that are not yet vested shall vest on
December 31, 2009, in each case subject to the continued
employment of Employee on such date. Notwithstanding
anything contained to the contrary herein, if Employee's
employment is terminated by Employer for reasons other than
"Cause" (as defined in Section 5 below) or Employee
terminates his employment under this Agreement under the
circumstances described in Section 5(g) or Employee
terminates his employment under this Agreement within the
six-month period immediately following a "Change in Control"
(as defined below), by providing written notice of such
termination to the Employer, all Restricted Stock previously
granted to Employee shall immediately vest. Notwithstanding
anything contained to the contrary herein, in the event that
any portion of the Restricted Stock has not been granted to
Employee at the time that Employee's employment is
terminated by Employer for reasons other than Cause or
Employee terminates his employment under this Agreement
under the circumstances described in Section 5(g) or
Employee terminates his employment under this Agreement
within the six-month period immediately following a Change
in Control, Employee shall retain the right hereunder to
receive an economically equivalent arrangement, such
arrangement to be reasonably agreed upon between Employer
and Employee. Employee shall be entitled to vote all shares
granted to him pursuant to this Restricted Stock Grant,
irrespective of whether they are vested or not.
Notwithstanding anything contained to the contrary herein,
any options granted to Employee pursuant to any agreement
between the Employer and Employee shall immediately vest if
Employee terminates his employment under this Agreement
within the six-month period immediately following a "Change
in Control" (as defined below), by providing written notice
of such termination to the Employer.
(e) Automobile. Employer shall lease Employee an automobile of
his choice and Employer shall pay all applicable taxes,
insurance, fees and expenses associated therewith. Employee
shall be entitled to a new leased automobile every two (2)
years.
5. Termination.
(a) Employee's employment hereunder may be terminated by
Employer or by Employee at any time, or by the death of
Employee. Such termination shall automatically terminate all
of the Employer's obligations not theretofore accrued under
this Agreement other than as specifically set forth in this
Agreement or in any employee benefit plan, program or
arrangement in which Employee participates. If the Employer
terminates Employee's employment under this Agreement (as
hereafter amended or extended) without "Cause," as defined
below, or if employment is terminated due to Employee's
death or disability, incentive compensation under the
Management Incentive Plan for any year shall be deemed to
have accrued as of the date of termination if and to the
extent that incentive compensation under the Management
Incentive Plan would have been payable to Employee if he had
been employed on the last day of such fiscal year and shall
be (i) pro rated based on the number of days that Employee
was employed during the fiscal year and (ii) payable in the
following fiscal year, on the earlier of April 1 or at the
same time as incentive compensation under the Management
Incentive Plan for such year is paid to those employees who
are still employed by the Employer.
(b) Notwithstanding anything to the contrary contained in this
Agreement, in the event that (i) the Employer terminates
Employee's employment under this Agreement (as hereafter
amended or extended) without "Cause," as defined below, (for
this purpose, not including termination due to Employee's
death or disability) or (ii) Employee terminates his
employment under this Agreement within the six-month period
immediately following a "Change in Control" (as defined
below), by providing written notice of such termination to
the Employer, Employee shall be entitled to an amount equal
to three (3) times the sum of (A) Employee's annual base
salary for the full calendar year immediately prior to the
date of the termination and (B) the greater of (x) the
amount of Employee's incentive compensation under the
Management Incentive Plan with respect to the full calendar
year immediately prior to the date of the termination and
(y) the average of Employee's incentive compensation under
the Management Incentive Plan for each of the three calendar
years immediately prior to the date of the termination,
payable in one lump sum within thirty (30) days of the date
of termination.
(c) Notwithstanding anything to the contrary contained in this
Agreement, in the event that Employee's employment with
Employer terminates for any reason other than a termination
for Cause, then, in any such event Employee shall be
entitled to continued participation by Employee and any
dependents who were participating immediately prior to
Employee's termination of employment, in all health and
medical plans and programs which the Employer maintains,
from time to time, for its senior executives and their
families, under the same terms and conditions, including
payment of any required employee contributions therefor, as
may generally apply (including any limitation or termination
of coverage of non-spouse dependents after a stated age),
until the later of the death of Employee or Employee's
surviving spouse to whom he was married at the time of
termination of employment, provided that such participation
in the Employer plans and programs is permitted under the
provisions of such Employer plans and programs, and
provided, further, that at such time as Employee, or any
covered dependent of Employee, becomes eligible for health
or medical benefits under Title XVIII of the Social Security
Act (Medicare) or any governmental program in replacement
thereof, such health or medical benefits shall automatically
become the primary coverage for such person(s) and the
coverage provided hereunder shall be secondary to such other
coverage, to the maximum extent permitted under applicable
law. If, while eligible for benefits under this Subsection
5(c), Employee becomes employed by any person and becomes
eligible for health and medical benefits under such
employer's health plan, the Employer shall be relieved,
during the period of such employment and to the extent of
the benefits for which Employee and his dependents are
eligible under such employer's plan, of the obligation to
provide the health and medical benefits described in this
Subsection 5(c). In the event that participation in any such
Employer plan or program is barred or otherwise not
permitted, the Employer shall provide substantially similar
health and medical benefits to Employee and any eligible
dependents, in which case the Employer may self-fund such
benefits or may purchase individual policies or plans to
provide such benefits, in its sole discretion.
(d) For purposes of this Section 5, the term "Cause" shall mean
gross negligence, willful misconduct, breach of fiduciary
duty involving personal profit, substance abuse, or
commission of a felony.
(e) For purposes of this Agreement, the term "Change in Control"
shall mean an increase, on or after the date of this
Agreement, in ownership to twenty percent (20%) or more of
the outstanding voting securities of the Company held by any
person or group of persons who are acting together for the
purpose of acquiring, holding, voting or disposing of such
voting securities; provided, however, that an increase in
ownership to twenty (20%) or more of the outstanding voting
securities of the Company held by Employee or group of
persons which includes Employee who are acting together for
the purpose of acquiring, holding, voting or disposing of
such voting securities shall not constitute a Change in
Control.
Example 1: On April 16, 2004 individual A owns 2.42% of the
total outstanding voting securities of Company. Thereafter,
individual A commences a series of open market and private
purchases, and on January 10, 2005 for the first time his
holdings exceed 20% of the outstanding voting securities of
the Company. A Change of Control occurs on January 10, 2005.
Example 2: On a date subsequent to this Agreement individual
B, who owned no voting securities of Company prior to the
date of this Agreement, commences a series of open market
and private purchases, and on January 11, 2005 for the first
time his holdings exceed 20% of the outstanding voting
securities of the Company. A Change of Control occurs on
January 11, 2005.
(f) Parachute Payments
(i) To the extent that any amount payable to Employee
(hereunder or otherwise) alone or together with
other compensation constitutes a "parachute
payment" within the meaning of section 280G(b)(2)
of the Internal Revenue Code of 1986, as amended,
(the "Code") that would result in some or all of
the compensation owed being characterized as
"excess parachute payments" (as defined by section
280G(b)(1) of the Code), and would, therefore, be
subject to an excise tax under section 4999 of the
Code (the "Excise Tax"), the Employer shall pay to
Employee, at the time specified below, that
additional amount (the "Gross-Up Payment")
necessary to reimburse Employee for the amount of
any (i) Excise Tax, (ii) federal, state and local
income and employment taxes (including additional
Excise Tax) payable with respect to the Gross-Up
Payment, and (iii) interest, penalties or additions
to tax payable by Employee with respect to the
Excise Tax or the Gross-Up Payment. For purposes of
determining the amount of the Gross-Up Payment,
Employee shall be deemed to pay federal income
taxes at the highest marginal rates of taxation
applicable to individuals as are in effect in the
calendar year in which the Gross-Up Payment is to
be made and state and local income taxes at the
highest marginal rates of taxation applicable to
individuals as are in effect in the state and
locality of Employee's residence, and/or any other
state or locality that may be applicable, in the
calendar year in which the Gross-Up Payment is to
be made, net of the maximum reduction in federal
income taxes that can be obtained from deduction of
such state and local taxes, taking into account any
limitations applicable to individuals subject to
federal income tax at the highest marginal rates.
(ii) The Gross-Up Payments provided for in Section
5(f)(i) above shall be made upon the earlier of (i)
the payment to Employee of compensation in the
nature of a parachute payment or (ii) the
imposition upon Employee or payment by Employee of
any Excise Tax.
(iii) If it is established pursuant to a final
determination of a court or an Internal Revenue
Service proceeding that the Excise Tax is less than
the amount taken into account under Section 5(f)(i)
above, Employee shall repay to the Employer within
thirty (30) days of Employee's receipt of notice of
such final determination the portion of the
Gross-Up Payment attributable to such reduction
(plus the portion of the Gross-Up Payment
attributable to the Excise Tax and federal, state
and local income and employment taxes imposed on
the Gross-Up Payment being repaid by Employee, if
such repayment results in a reduction in Excise Tax
or a federal, state and local income tax
deduction). If it is established pursuant to a
final determination of a court or an Internal
Revenue Service proceeding that the Excise Tax
exceeds the amount taken into account under Section
5(f)(i) above (including by reason of any payment
the existence or amount of which cannot be
determined at the time of the Gross-Up Payment),
the Employer shall make any additional Gross-Up
Payment in respect of such excess within thirty
(30) days of the Employer's receipt of notice of
such final determination.
(iv) Notwithstanding anything contained herein or in the
Management Incentive Plan to the contrary, the
amount of any payments made pursuant to this
Section 5(f) shall be excluded from the calculation
of EBITDA under the Management Incentive Plan for
purposes of determining bonuses thereunder.
(g) If the duties assigned by Employer to Employee are
materially diminished, or become inconsistent with those
assigned to a Chairman of the Board, Chief Executive Officer
and President of a similarly situated company, or if
Employee's title is changed and such change in duties or
title is not cured by the Employer within ten (10) days
following receipt by the Board of written notice from the
Employee, such change in duties or title shall be deemed a
termination by Employer of Employee's employment without
Cause, pursuant to the terms of this Agreement, and Employee
shall be entitled to resign his employment hereunder and to
thereafter receive all rights, benefits and payments set
forth in Sections 5(a), (b) and (c) as well as the
accelerated vesting of the Restricted Stock set forth in
Section 4(d).
6. Retirement. Employee shall be eligible to participate in the
tax-qualified retirement plans maintained from time to time by
Employer for the benefit of its employees, including executives and
key management employees (the "Qualified Plans"). In addition,
subject to the provisions hereof, Employer shall provide Employee
with a supplemental retirement benefit as described below. Exhibit B
hereto illustrates the monthly supplemental retirement benefit that
would become payable to Employee in accordance with the provisions of
Sections 6(a), (b) and (c) below based on the retirement of Employee
on or after the attainment of age 55.
(a) Retirement Benefits. Upon Employee's retirement on or after
the date on which he attains the age of 55 (the "Early
Retirement Date"), but in no event prior thereto, Employee
shall be fully vested in a monthly retirement benefit equal
to one-twelfth of 50% of Employee's then current base
salary, payable for the remainder of his life. Such benefit
shall hereinafter be referred to as the "Age 55 Retirement
Benefit". Upon Employee's retirement on or after the date on
which he attains the age of 60 (the "Normal Retirement
Date"), Employee shall be fully vested in a monthly
retirement benefit equal to one-twelfth of 62.5% of
Employee's then current base salary, in lieu of the Age 55
Retirement Benefit, payable for the remainder of his life.
Such benefit shall hereinafter be referred to as the "Age 60
Retirement Benefit". Upon Employee's retirement on or after
the date on which he attains the age of 65 (the "Deferred
Retirement Date"), Employee shall be fully vested in a
monthly retirement benefit equal to one-twelfth of 75% of
Employee's then current base salary, in lieu of the Age 60
Retirement Benefit, payable for the remainder of his life.
Such benefit shall hereinafter be referred to as the "Age 65
Retirement Benefit".
(b) Retirement After the Early Retirement Date But Prior to the
Normal Retirement Date. Notwithstanding the foregoing, in
the event that Employee retires from employment after the
Early Retirement Date but prior to the Normal Retirement
Date, in addition to the Age 55 Retirement Benefit, Employee
shall become vested in an additional amount equal to the
difference between the Age 55 Retirement Benefit and the Age
60 Retirement Benefit multiplied by a fraction, the
denominator of which is the number of full months between
the date on which Employee would attain the age of 55 and
the date on which Employee would attain the age of 60, and
the numerator of which is the number of full months worked
by Employee on and after the date Employee attains age 55
through the date of termination.
(c) Retirement After the Normal Retirement Date But Prior to the
Deferred Retirement Date. Notwithstanding the foregoing, in
the event that Employee retires from employment after the
Normal Retirement Date but prior to the Deferred Retirement
Date, in addition to the Age 60 Retirement Benefit, Employee
shall become vested in an additional amount equal to the
difference between the Age 60 Retirement Benefit and the Age
65 Retirement Benefit multiplied by a fraction, the
denominator of which is the number of full months between
the date on which Employee would attain the age of 60 and
the date on which Employee would attain the age of 65, and
the numerator of which is the number of full months worked
by Employee on and after the date Employee attains age 60
through the date of termination.
(d) Time of Payment of Retirement Benefit; Offset for Certain
Qualified Plan Benefits. The amount of the supplemental
retirement benefit payable under this Section 6 shall be
offset by the amount of any accrued benefits or vested
account balance Employee may have under the Qualified Plans,
other than any portion thereof attributable to Employee's
elective deferrals (e.g., 401(k) contributions by Employee).
Upon Employee's retirement on or after the Early Retirement
Date, subject to the provisions of Section 6(g), Employer
shall commence payment of the monthly supplemental
retirement benefit, as applicable, as of the end of the
month in which such retirement occurs, and shall make each
monthly payment at the end of each month thereafter.
Notwithstanding the foregoing, in no event shall benefits be
payable hereunder while Employee is an active participant in
the Qualified Plans.
(e) Effect of Certain Terminations. Exhibit C hereto illustrates
the monthly supplemental retirement benefit that would
become payable to Employee in accordance with the provisions
of this Section 6(e) in the event that Employee's employment
with Employer terminates under any of the following
circumstances: (1) by reason of his death or disability; (2)
Employee's employment is terminated by Employer without
Cause; (3) Employee terminates employment under the
circumstances described in Section 5(g) hereof; or (4)
Employee terminates his employment under this Agreement
within the six-month period immediately following a Change
in Control by providing written notice of such termination
to Employer (any such event shall hereinafter be referred to
as a "Qualifying Termination").
(i) If, prior to the Early Retirement Date, Employee's
employment with Employer terminates due to a
Qualifying Termination, Employee shall become
vested in a pro rata portion of the Age 55
Retirement Benefit, calculated by multiplying the
Age 55 Retirement Benefit by a fraction, the
denominator of which is the number of full months
from the Effective Date until the date on which
Employee would attain the age of 55 and the
numerator of which is the number of full months
worked on and after the Effective Date through the
date of termination. Except as provided by
subparagraph (vi) below, the payment of such pro
rata portion of the Age 55 Retirement Benefit shall
commence as of the end of the month in which
Employee's Early Retirement Date occurs (or would
have occurred, in the case of Employee's death).
(ii) If, after the Early Retirement Date but prior to
the Normal Retirement Date, Employee's employment
with Employer terminates due to a Qualifying
Termination, Employee shall become vested in an
additional amount equal to the difference between
the Age 55 Retirement Benefit and the Age 60
Retirement Benefit multiplied by a fraction, the
denominator of which is the number of full months
between the date on which Employee would attain the
age of 55 and the date on which Employee would
attain the age of 60, and the numerator of which is
the number of full months worked by Employee on and
after the date Employee attains age 55 through the
date of termination. Except as provided by
subparagraph (vi) below and subject to Section
6(g), the payment of the supplemental retirement
benefit calculated pursuant to this Section
6(e)(ii) shall commence as of the end of the month
following the month in which the Qualifying
Termination occurs.
(iii) If, after the Normal Retirement Date but prior to
the Deferred Retirement Date, Employee's employment
with Employer terminates due to a Qualifying
Termination, Employee shall become vested in an
additional amount equal to the difference between
the Age 60 Retirement Benefit and the Age 65
Retirement Benefit multiplied by a fraction, the
denominator of which is the number of full months
between the date on which Employee would attain the
age of 60 and the date on which Employee would
attain the age of 65, and the numerator of which is
the number of full months worked by Employee on and
after the date Employee attains age 60 through the
date of termination. Except as provided by
subparagraph (vi) below and subject to Section
6(g), the payment of the supplemental retirement
benefit calculated pursuant to this Section
6(e)(iii) shall commence as of the end of the month
following the month in which the Qualifying
Termination occurs.
(iv) If, after the Deferred Retirement Date, Employee's
employment with Employer terminates due to a
Qualifying Termination, Employee shall become
vested in the Age 65 Retirement Benefit and no
additional supplemental retirement benefits shall
accrue hereunder. Except as provided by
subparagraph (vi) below and subject to Section
6(g), the payment of the Age 65 Retirement Benefit
shall commence as of the end of the month following
the month in which the Qualifying Termination
occurs.
(v) If at any time Employee's employment hereunder is
terminated for Cause, Employee shall not be
entitled to any supplemental retirement benefit
under this Section 6, and any vested amount of the
Age 55 Retirement Benefit, the Age 60 Retirement
Benefit and the Age 65 Retirement Benefit, as the
case may be, shall be forfeited by Employee.
(vi) In the event of Employee's death, either prior to
or after the commencement of payments pursuant to
this Section 6 (but prior to Employee attaining the
age of 75 years), the applicable supplemental
retirement benefits shall be paid (or shall
continue to be paid, if already in pay status) to
such beneficiary as Employee shall designate in
writing (or in the absence of such designation, to
his estate). Employee's designated beneficiary
shall be permitted to elect in writing to receive
either (1) a lump sum cash payment equal to the
present value of Employee's supplemental retirement
benefit determined under subparagraphs (a), (b) or
(c) or (e)(i), (ii), (iii) or (iv) above, as
applicable, as reasonably determined by the
Employer, payable on the first day of the month
following Employee's death, or (2) the monthly
supplemental retirement benefit determined under
subparagraphs (a), (b) or (c) or (e)(i), (ii),
(iii) or (iv) above, as applicable, (or the
continuation of the monthly supplemental retirement
benefit, as the case may be) commencing on the
first day of the month following Employee's death,
but in no event earlier than the end of the month
in which Employee's Early Retirement Date would
have occurred if Employee had lived, and continuing
until the date on which Employee would have
attained the age of 75.
(f) Title to and beneficial ownership of any assets, whether
cash or investments which Employer may set aside or earmark
to meet its obligations hereunder, shall at all times remain
with Employer and neither Employee nor any beneficiary shall
under any circumstances acquire any property interest in any
specific assets of Employer. Nothing contained in this
Agreement shall create or be construed to create a trust of
any kind, or a fiduciary relationship between Employer and
Employee or any other person. To the extent that Employee is
entitled to receive payments from Employer hereunder, such
right shall be no greater than that of an unsecured general
creditor of Employer.
(g) This Section 6 is intended to comply with the provisions of
Section 409A of the Code and shall be construed in
accordance therewith. Notwithstanding anything to the
contrary contained herein, if Employee is a Specified
Employee (as defined in Section 409A of the Code) at the
time he would otherwise be entitled to receive any payment
hereunder, no distributions shall be made hereunder until
the earliest date permitted by Section 409A(a)(2) of the
Code.
7. Payment. Payment of all compensation and benefits to Employee
hereunder shall be made in accordance with the relevant policies of
the Employer in effect from time to time and shall be subject to all
applicable employment and withholding taxes.
8. Successors. This Agreement shall be binding upon, and inure to the
benefit of and be enforceable by, Employer and its successors and
assigns. This Agreement shall inure to the benefit of Employee's
heirs, legatees, legal representatives and assigns, but neither this
Agreement nor any right or interest hereunder shall be assignable by
Employee without Employer's prior written consent.
9. Notices. All notices, requests, demands and other communications made
or given in connection with this Agreement shall be in writing and
shall be deemed to have been duly given (a) if delivered, at the time
delivered or (b) if mailed, at the time mailed at any general or
branch United States Post Office enclosed in a certified post-paid
envelope addressed to the address of the respective parties as
follows:
To the Company: 0000 Xxxxxxxxxxx Xxxxx
Xxxxx, Xxxxxxxx 00000
Attention: Chief Financial Officer
To MMI: 0000 Xxxxxxxxxxx Xxxxx
Xxxxx, Xxxxxxxx 00000
Attention: Chief Financial Officer
With a copy to (which shall not constitute notice to
Employer):
Skadden, Arps, Slate, Xxxxxxx & Xxxx LLP
0 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx (Fin) X. Xxxx, Esq.
To Employee: Xxxxx X. Xxxxxxx
0 Xxxxxxx Xxxxx
Xxxxxxxxxx, Xxxxxxxx 00000
With a copy to (which shall not constitute notice
to Employee):
Xxxxx X. Xxxx, Esq.
Xxxxxx & Xxxxxxxxx LLP
0 X. Xxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
or to such other address as the party to whom notice is to be given
may have previously furnished to the other party in writing in the
manner set forth above, provided that notices of changes of address
shall only be effective upon receipt.
10. Modifications and Waivers. This Agreement may be modified or amended
only by a written instrument executed by Employer and Employee. No
term or condition of this Agreement shall be deemed to have been
waived nor shall there be any estoppel to enforce any provision of
this Agreement except by written instrument of the party charged with
such waiver or estoppel.
11. Entire Agreement. This Agreement supersedes all prior agreements
between the parties hereto relating to the subject matter hereof,
including but not limited to the Prior Agreement and constitutes the
entire agreement of the parties hereto relating to the subject matter
hereof. However, nothing in this Agreement is intended or shall be
interpreted to reduce the rate or eliminate any portion of Employee's
compensation or benefits in effect immediately prior to the date
hereof.
12. Law Governing. The validity, interpretation, construction,
performance and enforcement of this Agreement shall be governed by
the laws of the State of Illinois without regard to principles of
conflicts of laws.
13. Invalidity. The invalidity or unenforceability of any term or terms
of this agreement shall not invalidate, make unenforceable or
otherwise affect any other term of this Agreement which shall remain
in full force and effect.
14. Headings. The headings contained herein are for reference only and
shall not affect the meaning or interpretation of this Agreement.
15. Joint and Several. The liability hereunder of the Company and MMI
shall be joint and several.
16. Other Agreements. Employer agrees to modify any and all agreements,
plans and contracts as may be necessary to effectuate the terms of
this Agreement; provided, however, that to the extent shareholder
approval is required by applicable law or regulation to effectuate
any such modification, such modification shall be subject to
shareholder approval.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
on the day and year set forth above.
EMPLOYEE THE MIDDLEBY CORPORATION
/s/ Xxxxx X. Xxxxxxx By /s/ Xxxxxx X. Xxxx
------------------------ -----------------------------
Xxxxx X. Xxxxxxx Chairman of the Compensation
Committee
MIDDLEBY MARSHALL INC.
By /s/ Xxxxxx X. Xxxx
-----------------------------
Chairman of the Compensation
Committee
EXHIBIT A
EBITDA Goals
The following are the EBITDA goals to be used for purpose of determining
incentive compensation under the Management Incentive Plan as set forth in the
Agreement to which this Exhibit is attached:
-------------- ------------- ------------ ------------- ------------- ------------ ------------- ------------
Year 2005 2006 2007 2008 2009 2010 2011
-------------- ------------- ------------ ------------- ------------- ------------ ------------- ------------
EBITDA Goal* 48,985,685 54,863,967 61,447,643 68,821,360 77,079,923 86,329,515 96,689,057
-------------- ------------- ------------ ------------- ------------- ------------ ------------- ------------
*Notes Regarding EBITDA Goals
Calculation of EBITDA. EBITDA shall be determined in the discretion of the
Committee administering the MICP in accordance with Generally Accepted
Accounting Principles. However, EBITDA shall exclude foreign exchange
gains/losses and non-cash equity compensation and shall take into account any
and all bonuses and incentive compensation payable to Company employees,
including incentive compensation payable to employees participating under the
MICP for the applicable year. The Committee administering the MICP shall have
the authority to make appropriate adjustments to EBITDA goals to reflect the
impact of extraordinary items not reflected in such goals. For purposes of the
MICP, extraordinary items shall include (1) any profit or loss attributable to
acquisitions or dispositions of stock or assets, (2) any changes in accounting
standards or treatments that may be required or permitted by the Financial
Accounting Standards Board or adopted by the Company or its subsidiaries after
the goal is established, (3) all items of gain, loss or expense for the year
related to restructuring charges for the Company or its subsidiaries, (4) all
items of gain, loss or expense for the year determined to be extraordinary or
unusual in nature or infrequent in occurrence or related to the disposal of a
segment of a business (including but not limited to any costs allocated to the
Company by any entity that acquires the Company), (5) all items of gain, loss
or expense for the year related to discontinued operations that do not qualify
as a segment of a business as defined in APB Opinion No. 30 (or successor
literature), (6) the impact of capital expenditures, (7) the impact of share
repurchases and other changes in the number of outstanding shares, (8) fees
and expenses associated with a business transaction such as investment banking
fees and/or legal, accounting or tax planning fees, and (9) such other items
as may be pre-scribed by Section 162(m) of the Code and the treasury
regulations thereunder as may be in effect from time to time, and any
amendments, revisions or successor provisions and any changes thereto.
If actual EBITDA for any particular full year exceeds the goal for that year
to the extent that it also exceeds the goal for the next following year, the
EBITDA goal for such next following year shall be automatically increased to
equal the actual EBITDA for such prior year. EBITDA goals for subsequent years
do not automatically change. For example, if the actual EBITDA for 2005 is
$60,000,000, then the EBITDA Goal for 2006 will automatically increase to
$60,000,000; however, the EBITDA goals for 2007 through 2011 shall not
automatically adjust at that time.
EXHIBIT B
Illustration of Supplemental Retirement Benefit By Month
Based on Retirement on or After Age 55
-------------------------------------------------------------------------------------------------------------
Payout Per Month Aggregate Annual
Age on as Percentage Payout as Percentage
Retirement Date (1) February 3 (2) of Base Salary (3) of Base Salary
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
February 3, 2012 55 4.167% 50.000%
-------------------------------------------------------------------------------------------------------------
February-12 4.167% 50.000%
-------------------------------------------------------------------------------------------------------------
March-12 4.184% 50.212%
-------------------------------------------------------------------------------------------------------------
April-12 4.202% 50.424%
-------------------------------------------------------------------------------------------------------------
May-12 4.220% 50.636%
-------------------------------------------------------------------------------------------------------------
June-12 4.237% 50.847%
-------------------------------------------------------------------------------------------------------------
July-12 4.255% 51.059%
-------------------------------------------------------------------------------------------------------------
August-12 4.273% 51.271%
-------------------------------------------------------------------------------------------------------------
September-12 4.290% 51.483%
-------------------------------------------------------------------------------------------------------------
October-12 4.308% 51.695%
-------------------------------------------------------------------------------------------------------------
November-12 4.326% 51.907%
-------------------------------------------------------------------------------------------------------------
December-12 4.343% 52.119%
-------------------------------------------------------------------------------------------------------------
January-13 4.361% 52.331%
-------------------------------------------------------------------------------------------------------------
February-13 56 4.379% 52.542%
-------------------------------------------------------------------------------------------------------------
March-13 4.396% 52.754%
-------------------------------------------------------------------------------------------------------------
April-13 4.414% 52.966%
-------------------------------------------------------------------------------------------------------------
May-13 4.431% 53.178%
-------------------------------------------------------------------------------------------------------------
June-13 4.449% 53.390%
-------------------------------------------------------------------------------------------------------------
July-13 4.467% 53.602%
-------------------------------------------------------------------------------------------------------------
August-13 4.484% 53.814%
-------------------------------------------------------------------------------------------------------------
September-13 4.502% 54.025%
-------------------------------------------------------------------------------------------------------------
October-13 4.520% 54.237%
-------------------------------------------------------------------------------------------------------------
November-13 4.537% 54.449%
-------------------------------------------------------------------------------------------------------------
December-13 4.555% 54.661%
-------------------------------------------------------------------------------------------------------------
January-14 4.573% 54.873%
-------------------------------------------------------------------------------------------------------------
February-14 57 4.590% 55.085%
-------------------------------------------------------------------------------------------------------------
March-14 4.608% 55.297%
-------------------------------------------------------------------------------------------------------------
April-14 4.626% 55.508%
-------------------------------------------------------------------------------------------------------------
May-14 4.643% 55.720%
-------------------------------------------------------------------------------------------------------------
June-14 4.661% 55.932%
-------------------------------------------------------------------------------------------------------------
July-14 4.679% 56.144%
-------------------------------------------------------------------------------------------------------------
August-14 4.696% 56.356%
-------------------------------------------------------------------------------------------------------------
September-14 4.714% 56.568%
-------------------------------------------------------------------------------------------------------------
October-14 4.732% 56.780%
-------------------------------------------------------------------------------------------------------------
November-14 4.749% 56.992%
-------------------------------------------------------------------------------------------------------------
December-14 4.767% 57.203%
-------------------------------------------------------------------------------------------------------------
January-15 4.785% 57.415%
-------------------------------------------------------------------------------------------------------------
February-15 58 4.802% 57.627%
-------------------------------------------------------------------------------------------------------------
March-15 4.820% 57.839%
-------------------------------------------------------------------------------------------------------------
April-15 4.838% 58.051%
-------------------------------------------------------------------------------------------------------------
May-15 4.855% 58.263%
-------------------------------------------------------------------------------------------------------------
June-15 4.873% 58.475%
-------------------------------------------------------------------------------------------------------------
July-15 4.891% 58.686%
-------------------------------------------------------------------------------------------------------------
August-15 4.908% 58.898%
-------------------------------------------------------------------------------------------------------------
September-15 4.926% 59.110%
-------------------------------------------------------------------------------------------------------------
October-15 4.944% 59.322%
-------------------------------------------------------------------------------------------------------------
November-15 4.961% 59.534%
-------------------------------------------------------------------------------------------------------------
December-15 4.979% 59.746%
-------------------------------------------------------------------------------------------------------------
January-16 4.996% 59.958%
-------------------------------------------------------------------------------------------------------------
February-16 59 5.014% 60.169%
-------------------------------------------------------------------------------------------------------------
March-16 5.032% 60.381%
-------------------------------------------------------------------------------------------------------------
April-16 5.049% 60.593%
-------------------------------------------------------------------------------------------------------------
May-16 5.067% 60.805%
-------------------------------------------------------------------------------------------------------------
June-16 5.085% 61.017%
-------------------------------------------------------------------------------------------------------------
July-16 5.102% 61.229%
-------------------------------------------------------------------------------------------------------------
August-16 5.120% 61.441%
-------------------------------------------------------------------------------------------------------------
September-16 5.138% 61.653%
-------------------------------------------------------------------------------------------------------------
October-16 5.155% 61.864%
-------------------------------------------------------------------------------------------------------------
November-16 5.173% 62.076%
-------------------------------------------------------------------------------------------------------------
December-16 5.191% 62.288%
-------------------------------------------------------------------------------------------------------------
January-17 5.208% 62.500%
-------------------------------------------------------------------------------------------------------------
February 3, 2017 60 5.208% 62.500%
-------------------------------------------------------------------------------------------------------------
February-17 5.208% 62.500%
-------------------------------------------------------------------------------------------------------------
March-17 5.226% 62.712%
-------------------------------------------------------------------------------------------------------------
April-17 5.244% 62.924%
-------------------------------------------------------------------------------------------------------------
May-17 5.261% 63.136%
-------------------------------------------------------------------------------------------------------------
June-17 5.279% 63.347%
-------------------------------------------------------------------------------------------------------------
July-17 5.297% 63.559%
-------------------------------------------------------------------------------------------------------------
August-17 5.314% 63.771%
-------------------------------------------------------------------------------------------------------------
September-17 5.332% 63.983%
-------------------------------------------------------------------------------------------------------------
October-17 5.350% 64.195%
-------------------------------------------------------------------------------------------------------------
November-17 5.367% 64.407%
-------------------------------------------------------------------------------------------------------------
December-17 5.385% 64.619%
-------------------------------------------------------------------------------------------------------------
January-18 5.403% 64.831%
-------------------------------------------------------------------------------------------------------------
February-18 61 5.420% 65.042%
-------------------------------------------------------------------------------------------------------------
March-18 5.438% 65.254%
-------------------------------------------------------------------------------------------------------------
April-18 5.456% 65.466%
-------------------------------------------------------------------------------------------------------------
May-18 5.473% 65.678%
-------------------------------------------------------------------------------------------------------------
June-18 5.491% 65.890%
-------------------------------------------------------------------------------------------------------------
July-18 5.508% 66.102%
-------------------------------------------------------------------------------------------------------------
August-18 5.526% 66.314%
-------------------------------------------------------------------------------------------------------------
September-18 5.544% 66.525%
-------------------------------------------------------------------------------------------------------------
October-18 5.561% 66.737%
-------------------------------------------------------------------------------------------------------------
November-18 5.579% 66.949%
-------------------------------------------------------------------------------------------------------------
December-18 5.597% 67.161%
-------------------------------------------------------------------------------------------------------------
January-19 5.614% 67.373%
-------------------------------------------------------------------------------------------------------------
February-19 62 5.632% 67.585%
-------------------------------------------------------------------------------------------------------------
March-19 5.650% 67.797%
-------------------------------------------------------------------------------------------------------------
April-19 5.667% 68.008%
-------------------------------------------------------------------------------------------------------------
May-19 5.685% 68.220%
-------------------------------------------------------------------------------------------------------------
June-19 5.703% 68.432%
-------------------------------------------------------------------------------------------------------------
July-19 5.720% 68.644%
-------------------------------------------------------------------------------------------------------------
August-19 5.738% 68.856%
-------------------------------------------------------------------------------------------------------------
September-19 5.756% 69.068%
-------------------------------------------------------------------------------------------------------------
October-19 5.773% 69.280%
-------------------------------------------------------------------------------------------------------------
November-19 5.791% 69.492%
-------------------------------------------------------------------------------------------------------------
December-19 5.809% 69.703%
-------------------------------------------------------------------------------------------------------------
January-20 5.826% 69.915%
-------------------------------------------------------------------------------------------------------------
February-20 63 5.844% 70.127%
-------------------------------------------------------------------------------------------------------------
March-20 5.862% 70.339%
-------------------------------------------------------------------------------------------------------------
April-20 5.879% 70.551%
-------------------------------------------------------------------------------------------------------------
May-20 5.897% 70.763%
-------------------------------------------------------------------------------------------------------------
June-20 5.915% 70.975%
-------------------------------------------------------------------------------------------------------------
July-20 5.932% 71.186%
-------------------------------------------------------------------------------------------------------------
August-20 5.950% 71.398%
-------------------------------------------------------------------------------------------------------------
September-20 5.968% 71.610%
-------------------------------------------------------------------------------------------------------------
October-20 5.985% 71.822%
-------------------------------------------------------------------------------------------------------------
November-20 6.003% 72.034%
-------------------------------------------------------------------------------------------------------------
December-20 6.020% 72.246%
-------------------------------------------------------------------------------------------------------------
January-21 6.038% 72.458%
-------------------------------------------------------------------------------------------------------------
February-21 64 6.056% 72.669%
-------------------------------------------------------------------------------------------------------------
March-21 6.073% 72.881%
-------------------------------------------------------------------------------------------------------------
April-21 6.091% 73.093%
-------------------------------------------------------------------------------------------------------------
May-21 6.109% 73.305%
-------------------------------------------------------------------------------------------------------------
June-21 6.126% 73.517%
-------------------------------------------------------------------------------------------------------------
July-21 6.144% 73.729%
-------------------------------------------------------------------------------------------------------------
August-21 6.162% 73.941%
-------------------------------------------------------------------------------------------------------------
September-21 6.179% 74.153%
-------------------------------------------------------------------------------------------------------------
October-21 6.197% 74.364%
-------------------------------------------------------------------------------------------------------------
November-21 6.215% 74.576%
-------------------------------------------------------------------------------------------------------------
December-21 6.232% 74.788%
-------------------------------------------------------------------------------------------------------------
January-22 6.250% 75.000%
-------------------------------------------------------------------------------------------------------------
February 3, 2021 65 6.250% 75.000%
-------------------------------------------------------------------------------------------------------------
(1) Assumes retirement on the last day of the month.
(2) Assumes 2/3/1957 date of birth.
(3) Assumes Agreement is entered into on or before 1/1/05.
EXHIBIT C
Illustration of Pro Rata Supplemental Retirement Benefit By Month
Based on Qualifying Termination
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
Qualifying Payout Per Month as Aggregate Annual Payout
Termination Age on Percentage of as Percentage of
Date(1) February 3 (2) Base Salary (3) Base Salary
-------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
January-05 0.049% 0.588%
-------------------------------------------------------------------------------------------------------------
February-05 48 0.098% 1.176%
-------------------------------------------------------------------------------------------------------------
March-05 0.147% 1.765%
-------------------------------------------------------------------------------------------------------------
April-05 0.196% 2.353%
-------------------------------------------------------------------------------------------------------------
May-05 0.245% 2.941%
-------------------------------------------------------------------------------------------------------------
June-05 0.294% 3.529%
-------------------------------------------------------------------------------------------------------------
July-05 0.343% 4.118%
-------------------------------------------------------------------------------------------------------------
August-05 0.392% 4.706%
-------------------------------------------------------------------------------------------------------------
September-05 0.441% 5.294%
-------------------------------------------------------------------------------------------------------------
October-05 0.490% 5.882%
-------------------------------------------------------------------------------------------------------------
November-05 0.539% 6.471%
-------------------------------------------------------------------------------------------------------------
December-05 0.588% 7.059%
-------------------------------------------------------------------------------------------------------------
January-06 0.637% 7.647%
-------------------------------------------------------------------------------------------------------------
February-06 49 0.686% 8.235%
-------------------------------------------------------------------------------------------------------------
March-06 0.735% 8.824%
-------------------------------------------------------------------------------------------------------------
April-06 0.784% 9.412%
-------------------------------------------------------------------------------------------------------------
May-06 0.833% 10.000%
-------------------------------------------------------------------------------------------------------------
June-06 0.882% 10.588%
-------------------------------------------------------------------------------------------------------------
July-06 0.931% 11.176%
-------------------------------------------------------------------------------------------------------------
August-06 0.980% 11.765%
-------------------------------------------------------------------------------------------------------------
September-06 1.029% 12.353%
-------------------------------------------------------------------------------------------------------------
October-06 1.078% 12.941%
-------------------------------------------------------------------------------------------------------------
November-06 1.127% 13.529%
-------------------------------------------------------------------------------------------------------------
December-06 1.176% 14.118%
-------------------------------------------------------------------------------------------------------------
January-07 1.225% 14.706%
-------------------------------------------------------------------------------------------------------------
February-07 50 1.275% 15.294%
-------------------------------------------------------------------------------------------------------------
March-07 1.324% 15.882%
-------------------------------------------------------------------------------------------------------------
April-07 1.373% 16.471%
-------------------------------------------------------------------------------------------------------------
May-07 1.422% 17.059%
-------------------------------------------------------------------------------------------------------------
June-07 1.471% 17.647%
-------------------------------------------------------------------------------------------------------------
July-07 1.520% 18.235%
-------------------------------------------------------------------------------------------------------------
August-07 1.569% 18.824%
-------------------------------------------------------------------------------------------------------------
September-07 1.618% 19.412%
-------------------------------------------------------------------------------------------------------------
October-07 1.667% 20.000%
-------------------------------------------------------------------------------------------------------------
November-07 1.716% 20.588%
-------------------------------------------------------------------------------------------------------------
December-07 1.765% 21.176%
-------------------------------------------------------------------------------------------------------------
January-08 1.814% 21.765%
-------------------------------------------------------------------------------------------------------------
February-08 51 1.863% 22.353%
-------------------------------------------------------------------------------------------------------------
March-08 1.912% 22.941%
-------------------------------------------------------------------------------------------------------------
April-08 1.961% 23.529%
-------------------------------------------------------------------------------------------------------------
May-08 2.010% 24.118%
-------------------------------------------------------------------------------------------------------------
June-08 2.059% 24.706%
-------------------------------------------------------------------------------------------------------------
July-08 2.108% 25.294%
-------------------------------------------------------------------------------------------------------------
August-08 2.157% 25.882%
-------------------------------------------------------------------------------------------------------------
September-08 2.206% 26.471%
-------------------------------------------------------------------------------------------------------------
October-08 2.255% 27.059%
-------------------------------------------------------------------------------------------------------------
November-08 2.304% 27.647%
-------------------------------------------------------------------------------------------------------------
December-08 2.353% 28.235%
-------------------------------------------------------------------------------------------------------------
January-09 2.402% 28.824%
-------------------------------------------------------------------------------------------------------------
February-09 52 2.451% 29.412%
-------------------------------------------------------------------------------------------------------------
March-09 2.500% 30.000%
-------------------------------------------------------------------------------------------------------------
April-09 2.549% 30.588%
-------------------------------------------------------------------------------------------------------------
May-09 2.598% 31.176%
-------------------------------------------------------------------------------------------------------------
June-09 2.647% 31.765%
-------------------------------------------------------------------------------------------------------------
July-09 2.696% 32.353%
-------------------------------------------------------------------------------------------------------------
August-09 2.745% 32.941%
-------------------------------------------------------------------------------------------------------------
September-09 2.794% 33.529%
-------------------------------------------------------------------------------------------------------------
October-09 2.843% 34.118%
-------------------------------------------------------------------------------------------------------------
November-09 2.892% 34.706%
-------------------------------------------------------------------------------------------------------------
December-09 2.941% 35.294%
-------------------------------------------------------------------------------------------------------------
January-10 2.990% 35.882%
-------------------------------------------------------------------------------------------------------------
February-10 53 3.039% 36.471%
-------------------------------------------------------------------------------------------------------------
March-10 3.088% 37.059%
-------------------------------------------------------------------------------------------------------------
April-10 3.137% 37.647%
-------------------------------------------------------------------------------------------------------------
May-10 3.186% 38.235%
-------------------------------------------------------------------------------------------------------------
June-10 3.235% 38.824%
-------------------------------------------------------------------------------------------------------------
July-10 3.284% 39.412%
-------------------------------------------------------------------------------------------------------------
August-10 3.333% 40.000%
-------------------------------------------------------------------------------------------------------------
September-10 3.382% 40.588%
-------------------------------------------------------------------------------------------------------------
October-10 3.431% 41.176%
-------------------------------------------------------------------------------------------------------------
November-10 3.480% 41.765%
-------------------------------------------------------------------------------------------------------------
December-10 3.529% 42.353%
-------------------------------------------------------------------------------------------------------------
January-11 3.578% 42.941%
-------------------------------------------------------------------------------------------------------------
February-11 54 3.627% 43.529%
-------------------------------------------------------------------------------------------------------------
March-11 3.676% 44.118%
-------------------------------------------------------------------------------------------------------------
April-11 3.725% 44.706%
-------------------------------------------------------------------------------------------------------------
May-11 3.775% 45.294%
-------------------------------------------------------------------------------------------------------------
June-11 3.824% 45.882%
-------------------------------------------------------------------------------------------------------------
July-11 3.873% 46.471%
-------------------------------------------------------------------------------------------------------------
August-11 3.922% 47.059%
-------------------------------------------------------------------------------------------------------------
September-11 3.971% 47.647%
-------------------------------------------------------------------------------------------------------------
October-11 4.020% 48.235%
-------------------------------------------------------------------------------------------------------------
November-11 4.069% 48.824%
-------------------------------------------------------------------------------------------------------------
December-11 4.118% 49.412%
-------------------------------------------------------------------------------------------------------------
January-12 4.167% 50.000%
-------------------------------------------------------------------------------------------------------------
February 3, 2012 55 4.167% 50.000%
-------------------------------------------------------------------------------------------------------------
February-12 4.167% 50.000%
-------------------------------------------------------------------------------------------------------------
March-12 4.184% 50.212%
-------------------------------------------------------------------------------------------------------------
April-12 4.202% 50.424%
-------------------------------------------------------------------------------------------------------------
May-12 4.220% 50.636%
-------------------------------------------------------------------------------------------------------------
June-12 4.237% 50.847%
-------------------------------------------------------------------------------------------------------------
July-12 4.255% 51.059%
-------------------------------------------------------------------------------------------------------------
August-12 4.273% 51.271%
-------------------------------------------------------------------------------------------------------------
September-12 4.290% 51.483%
-------------------------------------------------------------------------------------------------------------
October-12 4.308% 51.695%
-------------------------------------------------------------------------------------------------------------
November-12 4.326% 51.907%
-------------------------------------------------------------------------------------------------------------
December-12 4.343% 52.119%
-------------------------------------------------------------------------------------------------------------
January-13 4.361% 52.331%
-------------------------------------------------------------------------------------------------------------
February-13 56 4.379% 52.542%
-------------------------------------------------------------------------------------------------------------
March-13 4.396% 52.754%
-------------------------------------------------------------------------------------------------------------
April-13 4.414% 52.966%
-------------------------------------------------------------------------------------------------------------
May-13 4.431% 53.178%
-------------------------------------------------------------------------------------------------------------
June-13 4.449% 53.390%
-------------------------------------------------------------------------------------------------------------
July-13 4.467% 53.602%
-------------------------------------------------------------------------------------------------------------
August-13 4.484% 53.814%
-------------------------------------------------------------------------------------------------------------
September-13 4.502% 54.025%
-------------------------------------------------------------------------------------------------------------
October-13 4.520% 54.237%
-------------------------------------------------------------------------------------------------------------
November-13 4.537% 54.449%
-------------------------------------------------------------------------------------------------------------
December-13 4.555% 54.661%
-------------------------------------------------------------------------------------------------------------
January-14 4.573% 54.873%
-------------------------------------------------------------------------------------------------------------
February-14 57 4.590% 55.085%
-------------------------------------------------------------------------------------------------------------
March-14 4.608% 55.297%
-------------------------------------------------------------------------------------------------------------
April-14 4.626% 55.508%
-------------------------------------------------------------------------------------------------------------
May-14 4.643% 55.720%
-------------------------------------------------------------------------------------------------------------
June-14 4.661% 55.932%
-------------------------------------------------------------------------------------------------------------
July-14 4.679% 56.144%
-------------------------------------------------------------------------------------------------------------
August-14 4.696% 56.356%
-------------------------------------------------------------------------------------------------------------
September-14 4.714% 56.568%
-------------------------------------------------------------------------------------------------------------
October-14 4.732% 56.780%
-------------------------------------------------------------------------------------------------------------
November-14 4.749% 56.992%
-------------------------------------------------------------------------------------------------------------
December-14 4.767% 57.203%
-------------------------------------------------------------------------------------------------------------
January-15 4.785% 57.415%
-------------------------------------------------------------------------------------------------------------
February-15 58 4.802% 57.627%
-------------------------------------------------------------------------------------------------------------
March-15 4.820% 57.839%
-------------------------------------------------------------------------------------------------------------
April-15 4.838% 58.051%
-------------------------------------------------------------------------------------------------------------
May-15 4.855% 58.263%
-------------------------------------------------------------------------------------------------------------
June-15 4.873% 58.475%
-------------------------------------------------------------------------------------------------------------
July-15 4.891% 58.686%
-------------------------------------------------------------------------------------------------------------
August-15 4.908% 58.898%
-------------------------------------------------------------------------------------------------------------
September-15 4.926% 59.110%
-------------------------------------------------------------------------------------------------------------
October-15 4.944% 59.322%
-------------------------------------------------------------------------------------------------------------
November-15 4.961% 59.534%
-------------------------------------------------------------------------------------------------------------
December-15 4.979% 59.746%
-------------------------------------------------------------------------------------------------------------
January-16 4.996% 59.958%
-------------------------------------------------------------------------------------------------------------
February-16 59 5.014% 60.169%
-------------------------------------------------------------------------------------------------------------
March-16 5.032% 60.381%
-------------------------------------------------------------------------------------------------------------
April-16 5.049% 60.593%
-------------------------------------------------------------------------------------------------------------
May-16 5.067% 60.805%
-------------------------------------------------------------------------------------------------------------
June-16 5.085% 61.017%
-------------------------------------------------------------------------------------------------------------
July-16 5.102% 61.229%
-------------------------------------------------------------------------------------------------------------
August-16 5.120% 61.441%
-------------------------------------------------------------------------------------------------------------
September-16 5.138% 61.653%
-------------------------------------------------------------------------------------------------------------
October-16 5.155% 61.864%
-------------------------------------------------------------------------------------------------------------
November-16 5.173% 62.076%
-------------------------------------------------------------------------------------------------------------
December-16 5.191% 62.288%
-------------------------------------------------------------------------------------------------------------
January-17 5.208% 62.500%
-------------------------------------------------------------------------------------------------------------
February 3, 2017 60 5.208% 62.500%
-------------------------------------------------------------------------------------------------------------
February-17 5.208% 62.500%
-------------------------------------------------------------------------------------------------------------
March-17 5.226% 62.712%
-------------------------------------------------------------------------------------------------------------
April-17 5.244% 62.924%
-------------------------------------------------------------------------------------------------------------
May-17 5.261% 63.136%
-------------------------------------------------------------------------------------------------------------
June-17 5.279% 63.347%
-------------------------------------------------------------------------------------------------------------
July-17 5.297% 63.559%
-------------------------------------------------------------------------------------------------------------
August-17 5.314% 63.771%
-------------------------------------------------------------------------------------------------------------
September-17 5.332% 63.983%
-------------------------------------------------------------------------------------------------------------
October-17 5.350% 64.195%
-------------------------------------------------------------------------------------------------------------
November-17 5.367% 64.407%
-------------------------------------------------------------------------------------------------------------
December-17 5.385% 64.619%
-------------------------------------------------------------------------------------------------------------
January-18 5.403% 64.831%
-------------------------------------------------------------------------------------------------------------
February-18 61 5.420% 65.042%
-------------------------------------------------------------------------------------------------------------
March-18 5.438% 65.254%
-------------------------------------------------------------------------------------------------------------
April-18 5.456% 65.466%
-------------------------------------------------------------------------------------------------------------
May-18 5.473% 65.678%
-------------------------------------------------------------------------------------------------------------
June-18 5.491% 65.890%
-------------------------------------------------------------------------------------------------------------
July-18 5.508% 66.102%
-------------------------------------------------------------------------------------------------------------
August-18 5.526% 66.314%
-------------------------------------------------------------------------------------------------------------
September-18 5.544% 66.525%
-------------------------------------------------------------------------------------------------------------
October-18 5.561% 66.737%
-------------------------------------------------------------------------------------------------------------
November-18 5.579% 66.949%
-------------------------------------------------------------------------------------------------------------
December-18 5.597% 67.161%
-------------------------------------------------------------------------------------------------------------
January-19 5.614% 67.373%
-------------------------------------------------------------------------------------------------------------
February-19 62 5.632% 67.585%
-------------------------------------------------------------------------------------------------------------
March-19 5.650% 67.797%
-------------------------------------------------------------------------------------------------------------
April-19 5.667% 68.008%
-------------------------------------------------------------------------------------------------------------
May-19 5.685% 68.220%
-------------------------------------------------------------------------------------------------------------
June-19 5.703% 68.432%
-------------------------------------------------------------------------------------------------------------
July-19 5.720% 68.644%
-------------------------------------------------------------------------------------------------------------
August-19 5.738% 68.856%
-------------------------------------------------------------------------------------------------------------
September-19 5.756% 69.068%
-------------------------------------------------------------------------------------------------------------
October-19 5.773% 69.280%
-------------------------------------------------------------------------------------------------------------
November-19 5.791% 69.492%
-------------------------------------------------------------------------------------------------------------
December-19 5.809% 69.703%
-------------------------------------------------------------------------------------------------------------
January-20 5.826% 69.915%
-------------------------------------------------------------------------------------------------------------
February-20 63 5.844% 70.127%
-------------------------------------------------------------------------------------------------------------
March-20 5.862% 70.339%
-------------------------------------------------------------------------------------------------------------
April-20 5.879% 70.551%
-------------------------------------------------------------------------------------------------------------
May-20 5.897% 70.763%
-------------------------------------------------------------------------------------------------------------
June-20 5.915% 70.975%
-------------------------------------------------------------------------------------------------------------
July-20 5.932% 71.186%
-------------------------------------------------------------------------------------------------------------
August-20 5.950% 71.398%
-------------------------------------------------------------------------------------------------------------
September-20 5.968% 71.610%
-------------------------------------------------------------------------------------------------------------
October-20 5.985% 71.822%
-------------------------------------------------------------------------------------------------------------
November-20 6.003% 72.034%
-------------------------------------------------------------------------------------------------------------
December-20 6.020% 72.246%
-------------------------------------------------------------------------------------------------------------
January-21 6.038% 72.458%
-------------------------------------------------------------------------------------------------------------
February-21 64 6.056% 72.669%
-------------------------------------------------------------------------------------------------------------
March-21 6.073% 72.881%
-------------------------------------------------------------------------------------------------------------
April-21 6.091% 73.093%
-------------------------------------------------------------------------------------------------------------
May-21 6.109% 73.305%
-------------------------------------------------------------------------------------------------------------
June-21 6.126% 73.517%
-------------------------------------------------------------------------------------------------------------
July-21 6.144% 73.729%
-------------------------------------------------------------------------------------------------------------
August-21 6.162% 73.941%
-------------------------------------------------------------------------------------------------------------
September-21 6.179% 74.153%
-------------------------------------------------------------------------------------------------------------
October-21 6.197% 74.364%
-------------------------------------------------------------------------------------------------------------
November-21 6.215% 74.576%
-------------------------------------------------------------------------------------------------------------
December-21 6.232% 74.788%
-------------------------------------------------------------------------------------------------------------
January-22 6.250% 75.000%
-------------------------------------------------------------------------------------------------------------
February 3, 2021 65 6.250% 75.000%
-------------------------------------------------------------------------------------------------------------
(1) Assumes termination on the last day of each month.
(2) Assumes 2/3/1957 date of birth.
(3) Assumes Agreement is entered into on or before 1/1/05.
