Attached files
Exhibit 10.8 (a)
First Amendment to
Fifth Amended and Restated Key Employee Protection Plan
Fifth Amended and Restated Key Employee Protection Plan
Whereas, Sterling Chemicals, Inc., a Delaware corporation (the
Corporation), currently maintains its Fifth Amended and Restated Key Employee Protection
Plan (as amended, the Existing Plan);
Whereas, Section 5.03 of the Existing Plan authorizes and empowers the Board of
Directors of the Corporation (the Board) to amend the Existing Plan in certain respects;
and
Whereas, the Board desires to amend the Existing Plan as provided in this First
Amendment to Fifth Amended and Restated Key Employee Protection Plan (this Amendment)
and, in furtherance of that desire, the Board has duly authorized and approved this Amendment;
Now, Therefore, the Existing Plan is hereby amended as follows:
Section 1. Amendment of Section 2.02 of the Existing Plan. Effective as of January 1,
2009, Section 2.02 of the Existing Plan is hereby amended by amending clause (a)(i) thereof to read
in its entirety as follows:
(i) subject to paragraph (c) below, the Company shall pay to such
Participant, (A) within seven days after such Participants Termination
Date, a lump sum cash payment equal to (x) all unused vacation time accrued
by such Participant as of such Participants Termination Date under the
Companys vacation policy, plus (y) all accrued but unpaid compensation
earned by such Participant as of such Participants Termination Date, plus
(z) all unpaid vested benefits earned or accrued by such Participant as of
such Participants Termination Date under any Benefit Plan (other than a
qualified plan within the meaning of section 401(a) of the Code) in effect
immediately prior to the date on which the Change of Control occurs and (B)
on the 30th day following such Participants Termination Date or, in the
event that such Participants Termination Date occurred within the 180-day
period immediately preceding the occurrence of a Change of Control, on the
30th day after such Change of Control (in either event, the Payment
Date), a lump sum cash payment (the Severance Amount) in an
amount equal to (subject to Section 2.04(b)) such Participants Annual
Compensation as of the applicable Date of Computation times such
Participants Applicable Multiplier as of the applicable Date of
Computation; provided, however, that (x) the Severance Amount shall be
reduced by an amount equal to the aggregate amount previously paid to such
Participant by the Company as severance (including payments previously made
by the Company pursuant to this Section 2.02(a)(i) or Section 2.03), (y) the
right of such Participant to receive such Severance Amount, and the
obligation of the Company to pay such Severance Amount, is expressly
conditioned upon such Participant having executed and delivered to the
Company the release
referred to in Section 5.06 and any revocation period for such release
referred
to in Section 5.06 and any revocation period for such release having expired prior to the applicable Payment Date and (z) if the
applicable Payment Date is not a business day, the Severance Amount (if
required to be made hereunder) shall be paid on the next succeeding business
day; and
Section 2. Further Amendment of Section 2.02 of the Existing Plan. Effective as of
January 1, 2009, Section 2.02 of the Existing Plan is hereby amended by adding a new sentence
thereto at the end of clause (a)(ii) thereof, to read in its entirety as follows:
Notwithstanding anything to the contrary contained in this Plan, to the
extent required by Section 409A of the Code, (x) the reimbursement of any
expenses under this Section will be made on or before the last day of the
calendar year immediately following the calendar year in which the expense
is incurred, (y) the amount of medical claims eligible for reimbursement or
to be provided as an in-kind benefit under this Plan during a calendar year
may not affect the medical claims eligible for reimbursement or to be
provided as an in-kind benefit in any other calendar year and (z) the right
to reimbursement or in-kind benefits under this Plan shall not be subject to
liquidation or exchange for another benefit.
Section 3. Amendment of Section 2.03 of the Existing Plan. Effective as of January 1,
2009, Section 2.03 of the Existing Plan is hereby amended by adding a new sentence thereto at the
end thereof, to read in its entirety as follows:
For purposes of any Severance Amount paid to a Participant pursuant to this
Section 2.03, the Company shall pay the applicable Severance Amount to such
Participant on the 30th day following such Participants Termination Date;
provided, however, that (a) the right of such Participant to receive such
Severance Amount, and the obligation of the Company to pay such Severance
Amount, is expressly conditioned upon such Participant having executed and
delivered to the Company the release referred to in Section 5.06 and any
revocation period for such release having expired prior to the applicable
payment date and (b) if the applicable payment date is not a business day,
the Severance Amount (if required to be made hereunder) shall be paid on the
next succeeding business day.
Section 4. Amendment of Section 2.05 of the Existing Plan. Effective as of January 1,
2009, Section 2.05 of the Existing Plan is hereby amended by amending the second sentence thereof
to read in its entirety as follows:
If a Participant is entitled to a Gross-Up Payment under this Section 2.05,
the Company shall pay the Participant his or her Gross-Up Payment as
soon as administratively practicable but in no event later than the end of
the calendar year in which such Participant remits such Excise Tax.
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Section 5. Amendment of Article II of the Existing Plan. Effective as of January 1,
2009, Article II of the Existing Plan is hereby amended by adding a new Section 2.07 thereto, to
read in its entirety as follows:
Section 2.07. Compliance With Section 409A of the Code. This
Plan is intended to comply with Section 409A of the Code and any ambiguous
provisions shall be construed in a manner that is compliant with or exempt
from the application of Section 409A of the Code. If a provision of this
Plan would result in the imposition of earlier or additional taxes under
Section 409A of the Code, such provision shall be reformed to avoid the
imposition of such taxes. Notwithstanding anything to the contrary
contained in this Plan, no Participant shall have any right to determine a
date of payment of any amount under this Plan. For purposes of Section 409A
of the Code, each payment or amount due under this Plan shall be considered
a separate payment. For purposes of this Plan, Termination of
Employment shall mean Participants separation from service as
defined in Section 1.409A-1(h) of the Final Treasury Regulations promulgated
under Section 409A of the Code, including the default presumptions thereof.
If (a) a Participant is a specified employee (as such term is defined in
Section 409A of the Code) and (b) any payment due under this Plan is subject
to Section 409A of the Code and is required to be delayed under Section 409A
of the Code, that payment shall be paid on the earliest date that complies
with the requirements of Section 409A of the Code. For purposes of
determining the identity of specified employees, the Board may establish
procedures as it deems appropriate in accordance with Section 409A of the
Code.
Section 6. Effect of Amendments. Except as amended and modified by this Amendment,
the Existing Plan shall continue in full force and effect. The Existing Plan and this Amendment
shall be read, taken and construed as one and the same instrument. Upon the effectiveness of this
Amendment, each reference in the Existing Plan to this Plan shall mean and be a reference to the
Existing Plan as amended hereby.
Section 7. Binding Effect. This Amendment shall inure to the benefit of, and shall be
binding upon the Company, all Successors and the Participants (as such terms are defined in the
Existing Plan) and their respective heirs, executors, personal representatives, administrators,
successors and assigns.
Section 8. Severability. Should any clause, sentence, paragraph, subsection or
Section of this Amendment be judicially declared to be invalid, unenforceable or void, such
decision will not have the effect of invalidating or voiding the remainder of this Amendment, and
the part or parts of this Amendment so held to be invalid, unenforceable or void will be deemed to
have been stricken herefrom as if such stricken part or parts had never been included herein.
Section 9. Governing Law. To The Extent Not Superseded By The Laws Of The
United
States, This Amendment Shall Be Construed and Enforced in Accordance
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With, and
the Rights of the Parties Shall Be Governed By, the Internal Laws of the State of Texas, Without
Reference to Principles of Conflicts of Law.
In Witness Whereof, the Corporation has caused this Amendment to be duly executed in
its name and on its behalf by its proper officer thereunto duly authorized on March 12, 2010 but
effective as of January 1, 2009.
Sterling Chemicals, Inc. |
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