Registration Statement No. 333-
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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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Rockwell International Corporation
(Exact name of registrant as specified in its charter)
Delaware 25-1797617
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
777 East Wisconsin Avenue,
Suite 1400
Milwaukee, Wisconsin 53202
(Address of Principal (Zip Code)
Executive Offices)
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Rockwell International Corporation Deferred Compensation Plan
(Full title of the plan)
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WILLIAM J. CALISE, Jr., Esq.
Senior Vice President, General Counsel and Secretary
Rockwell International Corporation
777 East Wisconsin Avenue, Suite 1400
Milwaukee, Wisconsin 53202
(Name and address of agent for service)
(414) 212-5200
(Telephone number, including area code, of agent for service)
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Copy to:
PETER R. KOLYER, Esq.
Chadbourne & Parke LLP
30 Rockefeller Plaza
New York, New York 10112
(212) 408-5100
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CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
- ---------------------- -------------- ---------------- --------------------- ---------------------
Amount Proposed maximum Proposed maximum Amount of
Title of Securities to be offering price aggregate registration
to be registered (1) registered per Obligation offering price(2) fee
====================== =============== ================ ===================== =====================
<S> <C> <C> <C> <C>
Deferred Compensation $25,000,000 100% $25,000,000 $6,600
Obligations
====================== =============== ================ ===================== =====================
</TABLE>
(1) The Deferred Compensation Obligations are unsecured obligations of
Rockwell to pay deferred compensation in the future in accordance with the terms
of the Rockwell International Corporation Deferred Compensation Plan. See
"Description of Securities" herein.
(2) Estimated solely for the purpose of calculating the registration fee.
<PAGE>
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference.
The following documents, which are on file (File No. 1-12383) with the
Securities and Exchange Commission (the "Commission"), are incorporated herein
by reference and made a part hereof:
(a) Annual Report on Form 10-K of Rockwell International Corporation
("Rockwell") for the year ended September 30, 1999.
(b) Quarterly Report on Form 10-Q of Rockwell for the quarter ended
December 31, 1999.
(c) The description of Rockwell's Common Stock, par value $1 per share,
and Rockwell's Preferred Share Purchase Rights, which is
incorporated in Rockwell's Registration Statement on Form 8-A dated
October 30, 1996 by reference to the material under the caption
"Description of New Rockwell Capital Stock" on pages 105-115 of
Rockwell's Proxy Statement-Prospectus dated October 29, 1996,
constituting a part of Rockwell's Registration Statement on Form
S-4 (Registration No. 333-14969).
All documents subsequently filed by Rockwell pursuant to Sections
13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), prior to the filing of a post-effective amendment which
indicates that all securities offered hereby have been sold or which deregisters
all securities then remaining unsold, shall be deemed to be incorporated herein
by reference and be a part hereof from the date of filing of such documents. Any
statement contained in a document incorporated or deemed to be incorporated
herein by reference shall be deemed to be modified or superseded for purposes of
this registration statement to the extent that a statement contained herein or
in any other subsequently filed document which also is or is deemed to be
incorporated by reference herein modifies or supersedes that statement. Any such
statement so modified or superseded shall not constitute a part of this
registration statement, except as so modified or superseded.
Item 4. Description of Securities.
Pursuant to the terms of the Rockwell International Corporation
Deferred Compensation Plan, as amended and restated (the "Plan"), eligible
executives (each a "Participant") of Rockwell (or one of its participating
affiliates) may elect to defer up to 50% of their base annual salary and up to
100% of their annual incentive compensation under the Rockwell International
Corporation Incentive Compensation Plan. The obligations of Rockwell to pay the
amount of base annual salary and annual incentive compensation deferred pursuant
to such elections are referred to herein as "Deferred Compensation Obligations".
The Deferred Compensation Obligations of Rockwell will be unsecured general
obligations of Rockwell to pay the deferred compensation in the future in
accordance with the terms of the Plan and will rank equally with other unsecured
and unsubordinated indebtedness of Rockwell from time to time outstanding.
The amount of base salary and incentive compensation payments deferred
by a Participant (the "Participant Deferral") will be credited with earnings and
investment gains and losses by assuming that the Participant Deferral was
invested in one or more investment alternatives (the "Measurement Funds")
selected by the Participant in accordance with the terms of the Plan.
Measurement Funds currently consist of mutual funds. Participant Deferrals will
not, however, be invested in the Measurement Funds available under the Plan.
Participant Deferrals will be denominated and paid in United States dollars.
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A grantor trust (the "Trust") will be established pursuant to the
Rockwell International Corporation Deferred Compensation Plan Trust which is
designed to secure the payment of Participant Deferrals to the extent possible
under applicable tax rules. Upon a Change of Control, the Trust will become
irrevocable until all benefits due to Participants or their beneficiaries have
been paid in full and Rockwell will cause the Trust to be irrevocably funded
with amounts sufficient to satisfy its obligations under the Plan the extent not
previously funded. No Participant shall have any preferred claim to, or any
beneficial ownership interest in, any assets which are subject to the Trust. All
such assets are subject to the claims of Rockwell's creditors.
Rockwell reserves the right to amend or terminate the Plan at any time,
except that no such amendment or termination shall adversely affect the right of
a Participant to the balance of his or her Participant Deferrals as of the date
of such amendment or termination.
Generally, a Participant's right or the right of any other person to
receive payment of Deferred Compensation Obligations cannot be assigned,
alienated, sold, garnished, transferred, pledged or encumbered.
The Deferred Compensation Obligations are not convertible into another
security of Rockwell. The Deferred Compensation Obligations will not have the
benefit of a negative pledge or any other affirmative or negative covenant on
the part of Rockwell.
Item 5. Interests of Named Experts and Counsel.
William J. Calise, Jr., Esq., who has passed upon the legality of the
Defined Compensation Obligations covered by this registration statement, is
Senior Vice President, General Counsel and Secretary of Rockwell.
Item 6. Indemnification of Directors and Officers.
The Delaware General Corporation Law permits Delaware corporations to
eliminate or limit the monetary liability of directors to a corporation or its
shareholders for breach of their fiduciary duty of care, subject to certain
limitations (8 Del. G.C.L. sec. 102(b)(7)) and also provides for indemnification
of directors, officers, employees and agents subject to certain limitations
(8 Del. G.C.L. sec. 145).
The last paragraph of Article Seventh of Rockwell's Restated
Certificate of Incorporation, as amended, eliminates monetary liability of
directors to Rockwell and its shareowners for breach of fiduciary duty as
directors to the extent permitted by Delaware law.
Section 13 of Article III of the By-Laws of Rockwell and the appendix
thereto entitled Procedures for Submission and Determination of Claims for
Indemnification Pursuant to Article III, Section 13 of the By-Laws provide, in
substance, for the indemnification of directors, officers, employees and agents
of Rockwell to the extent permitted by Delaware law.
Rockwell's directors and officers are insured against certain
liabilities for actions taken in such capacities, including liabilities under
the Securities Act.
In addition, Rockwell and certain other persons may be entitled under
agreements entered into with agents or underwriters to indemnification by such
agents or underwriters against certain liabilities, including liabilities under
the Securities Act of 1933, as amended (the "Securities Act"), or to
contribution with respect to payments which Rockwell or such persons may be
required to make in respect thereof.
Item 7. Exemption from Registration Claimed.
This Item is not applicable.
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Item 8. Exhibits.
4-a -- Restated Certificate of Incorporation of Rockwell, as
amended, filed as Exhibit 3-a-1 to Rockwell's Annual Report
on Form 10-K for the year ended September 30, 1996, is
hereby incorporated by reference.
4-b -- By-Laws of Rockwell filed as Exhibit 3-b-2 to Rockwell's
Annual Report on Form 10-K for the year ended September 30,
1998, is hereby incorporated by reference.
4-c -- Rights Agreement dated as of November 30, 1996 between
Rockwell and ChaseMellon Shareholder Services, L.L.C., as
rights agent, filed as Exhibit 4-c to Registration
Statement No. 333-17031, is hereby incorporated by
reference.
4-d -- Copy of the Rockwell International Corporation Deferred
Compensation Plan, amended and restated effective as of
June 1, 2000.
4-e -- Form of Rockwell International Corporation Deferred
Compensation Plan Trust.
5 -- Opinion of William J. Calise, Jr., Esq., Senior Vice
President, General Counsel and Secretary of Rockwell, as to
the legality of the Deferred Compensation Obligations
covered by this registration statement.
23-a -- Consent of Deloitte & Touche LLP, independent auditors, set
forth on page II-6 of this registration statement.
23-b -- Consent of William J. Calise, Jr., Esq., Senior Vice
President, General Counsel and Secretary of Rockwell,
contained in his opinion filed as Exhibit 5 to this
registration statement.
23-c -- Consent of Chadbourne & Parke LLP, set forth on page II-6
of this registration statement.
24 -- Power of Attorney authorizing certain persons to sign this
registration statement on behalf of certain directors and
officers of Rockwell.
Item 9. Undertakings.
A. Rockwell hereby undertakes:
(1) To file, during any period in which offers or sales are
being made, a post-effective amendment to this registration statement:
(i) to include any prospectus required by section 10(a)(3) of the
Securities Act; (ii) to reflect in the prospectus any facts or events
arising after the effective date of this registration statement (or the
most recent post-effective amendment thereof) which, individually or in
the aggregate, represent a fundamental change in the information set
forth in this registration statement; and (iii) to include any material
information with respect to the plan of distribution not previously
disclosed in this registration statement or any material change to such
information in this registration statement; provided, however, that
clauses (i) and (ii) do not apply if the information required to be
included in a post-effective amendment by those clauses is contained in
periodic reports filed with or furnished to the Commission by Rockwell
pursuant to Section 13 or 15(d) of the Exchange Act that are
incorporated by reference in this registration statement.
(2) That, for the purpose of determining any liability under
the Securities Act, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be
deemed to be the
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initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at
the termination of the offering.
(4) That, for purposes of determining any liability under the
Securities Act, each filing of Rockwell's annual report pursuant to
Section 13(a) or 15(d) of the Exchange Act that is incorporated by
reference in this registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
B. Insofar as indemnification for liabilities arising under the Securities Act
may be permitted to directors, officers and controlling persons of Rockwell
pursuant to the foregoing provisions, or otherwise, Rockwell has been advised
that in the opinion of the Commission such indemnification is against public
policy as expressed in the Securities Act and is, therefore, unenforceable. In
the event that a claim for indemnification against such liabilities (other than
the payment by Rockwell of expenses incurred or paid by a director, officer or
controlling person of Rockwell in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, Rockwell will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities
Act and will be governed by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-8 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Milwaukee, State of Wisconsin on the 14th day of
April, 2000.
ROCKWELL INTERNATIONAL CORPORATION
By /s/ William J. Calise, Jr.
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(William J. Calise, Jr., Senior Vice President,
General Counsel and Secretary)
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed on the 14th day of April, 2000 by the
following persons in the capacities indicated:
Signature Title
DON H. DAVIS, JR.* Chairman of the Board and
Chief Executive Officer
(principal executive officer)
BETTY C. ALEWINE* Director
GEORGE L. ARGYROS* Director
DONALD R. BEALL* Director
WILLIAM H. GRAY, III* Director
WILLIAM T. MCCORMICK, JR.* Director
JOHN D. NICHOLS* Director
BRUCE M. ROCKWELL* Director
ROBERT B. SHAPIRO* Director
JOSEPH F. TOOT, JR.* Director
W. MICHAEL BARNES* Senior Vice President,
Finance & Planning and
Chief Financial Officer
(principal financial officer)
WILLIAM E. SANDERS* Vice President and Controller
(principal accounting officer)
* By /s/ William J. Calise, Jr.
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(William J. Calise, Jr., Attorney-in-fact)**
** By authority of the power of attorney filed herewith.
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INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Registration
Statement of Rockwell International Corporation on Form S-8 of our report dated
November 3, 1999, appearing in the Annual Report on Form 10-K of Rockwell
International Corporation for the year ended September 30, 1999 and to the
reference to us under the heading "Experts" in the Prospectus, which is part of
this Registration Statement.
DELOITTE & TOUCHE LLP
Milwaukee, Wisconsin
April 12th, 2000
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CONSENT OF COUNSEL
We hereby consent to the reference to this firm and to the inclusion of
the summary of our opinion under the caption "Tax Consequences" in the
Prospectus related to this Registration Statement on Form S-8 filed by Rockwell
International Corporation in respect of the Rockwell International Corporation
Deferred Compensation Plan.
CHADBOURNE & PARKE LLP
30 Rockefeller Plaza
New York, New York 10112
April 14th, 2000
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EXHIBIT INDEX
Exhibit Page
Number
4-a Restated Certificate of Incorporation of Rockwell, as amended,
filed as Exhibit 3-a-1 to Rockwell's Annual Report on Form 10-K
for the year ended September 30, 1996, is hereby incorporated
by reference.
4-b By-Laws of Rockwell filed as Exhibit 3-b-2 to Rockwell's Annual
Report on Form 10-K for the year ended September 30, 1998, is
hereby incorporated by reference.
4-c Rights Agreement dated as of November 30, 1996 between Rockwell
and ChaseMellon Shareholder Services, L.L.C., as rights agent,
filed as Exhibit 4-c to Registration Statement No. 333-17031,
is hereby incorporated by reference.
4-d Copy of the Rockwell International Corporation Deferred
Compensation Plan, amended and restated as of June 1, 2000.
4-e Form of Rockwell International Corporation Deferred Compensation
Plan Trust.
5 Opinion of William J. Calise, Jr., Esq., Senior Vice President,
General Counsel and Secretary of Rockwell, as to the legality of
the Deferred Compensation Obligations covered by this
registration statement.
23-a Consent of Deloitte & Touche LLP, independent auditors, set
forth on page II-6 of this registration statement.
23-b Consent of William J. Calise, Jr., Esq., Senior Vice President,
General Counsel and Secretary of Rockwell, contained in his
opinion filed as Exhibit 5 to this registration statement.
23-c Consent of Chadbourne & Parke LLP, set forth on page II-6 of
this registration statement.
24 Power of Attorney authorizing certain persons to sign this
registration statement on behalf of certain directors and
officers of Rockwell.
<PAGE>
Exhibit 4-d
ROCKWELL INTERNATIONAL CORPORATION
DEFERRED COMPENSATION PLAN
(Amended and Restated Effective as of June 1, 2000)
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ROCKWELL INTERNATIONAL CORPORATION
DEFERRED COMPENSATION PLAN
The purpose of this Plan is to provide certain specified benefits to a select
group of management and highly compensated employees who contribute materially
to the continued growth, development and future business success of Rockwell
International Corporation and its affiliates. This Plan is unfunded for tax
purposes and for purposes of Title I of ERISA.
ARTICLE I: DEFINITIONS
1.010 Account means one of the accounts established for the purpose of
measuring and determining a Participant's interest in this Plan, such accounts
being the Participant's Deferral Account and Company Match Account.
1.020 Account Balance means, with respect to each Participant, an account in
the records of the Company equal to the sum of the Participant's:
(a) Deferral Account balance, and
(b) Company Match Account balance.
The Account Balance (and each underlying balance making up such Account
Balance) is a bookkeeping entry only and will be utilized solely as a device
for the measurement and determination of the amounts to be paid to a
Participant, or his designated Beneficiary, pursuant to this Plan.
1.030 Affiliate means:
(a) any corporation incorporated under the laws of one of the United States of
America of which the Company owns, directly or indirectly, eighty percent
(80%) or more of the combined voting power of all classes of stock or
eighty percent (80%) or more of the total value of the shares of all
classes of stock (all within the meaning of Code ss.1563);
(b) any partnership or other business entity organized under such laws, of
which the Company owns, directly or indirectly, eighty percent (80%) or
more of the voting power or eighty percent (80%) or more of the total
value (all within the meaning of Code ss.414(c)); and
(c) any other company deemed to be an Affiliate by the Company's Board of
Directors.
<PAGE>
1.040 Annual Company Match Amount for any Plan Year means the amount determined
in accordance with Section 3.030.
1.050 Annual Deferral Amount means that portion of a Participant's Base Annual
Salary and/or Incentive Compensation which a Participant elects to have
deferred, in accordance with Article III, for any one Plan Year. In the event
of a Participant's Retirement, Disability (if deferrals cease in accordance
with Section 9.020), death or a Termination of Employment prior to the end of a
Plan Year, such year's Annual Deferral Amount will be the actual amount
withheld prior to such event.
1.060 Annual Installment Method means a benefit payment method involving a
series of annual installment payments over the number of years selected by the
Participant in accordance with this Plan, which will be calculated in the
manner set forth in this Section. The Account Balance of the Participant will
be determined as of the close of business on the last business day of the
calendar year. The annual installment will be calculated by multiplying this
balance by a fraction, the numerator of which is one (1), and the denominator
of which is the remaining number of annual payments due the Participant. (By
way of example, if a Participant were to elect a 10-year payment under the
Annual Installment Method, the first payment would be one-tenth (1/10) of the
Account Balance, calculated as described in this definition. The following
year, the payment would be one-ninth (1/9) of the Account Balance, calculated
as described in this definition.) Each annual installment will be paid within
the first sixty (60) days of the calendar year following the applicable year.
1.070 Base Annual Salary means the annual cash compensation relating to
services performed during any calendar year, whether or not paid in such
calendar year or included on the Federal Income Tax Form W-2 for such calendar
year, excluding bonuses, commissions, overtime, fringe benefits, stock options,
relocation expenses, incentive payments, non-monetary awards, directors fees
and other fees, automobile and other allowances (whether or not such allowances
are included in the Employee's gross income) paid to a Participant for
employment services rendered. Base Annual Salary will be calculated before
reduction for compensation voluntarily deferred or contributed by the
Participant pursuant to all qualified or non-qualified plans of the Company or
any Affiliate and will be calculated to include amounts not otherwise included
in the Participant's gross income under Code ss.125, 402(e)(3), 402(h), or
403(b), pursuant to plans established by the Company or an Affiliate; provided,
however, that all such amounts will be included in compensation only to the
extent that, had there been no such plan, the amount would have been payable in
cash to the Participant.
1.080 Beneficiary means one or more persons, trusts, estates or other
entities, designated in accordance with Article X who or which are entitled to
receive benefits under this Plan upon the death of a Participant.
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1.090 Beneficiary Designation Form means the form established from time to
time by the Committee or its delegate that a Participant completes, signs and
returns to the Committee or its delegate, in order to designate one or more
Beneficiaries.
1.100 Board of Directors means the Company's Board of Directors.
1.110 Change of Control means any of the following:
(a) The acquisition by any individual, entity or group (within the meaning
of ss.13(d)(3) or ss.14(d)(2) of the Exchange Act) (a "Person") of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of twenty percent (20%) or more of either
(1) the then outstanding shares of common stock of the Company (the
"Outstanding Company Common Stock"), or
(2) the combined voting power of the then outstanding voting securities
of the Company entitled to vote generally in the election of directors
(the "Outstanding Company Voting Securities"); provided, however, that for
purposes of this subsection (a), the following acquisitions shall not
constitute a Change of Control:
(w) any acquisition directly from the Company,
(x) any acquisition by the Company,
(y) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled
by the Company, or
(z) any acquisition pursuant to a transaction which complies with
paragraphs (1), (2) and (3) of subsection (c) of this Section; or
(b) Individuals who, as of September 2, 1998, constituted the Board of
Directors (the "Incumbent Board") cease for any reason to constitute at
least a majority of the Board; provided, however, that any individual
becoming a director subsequent to that date whose election, or nomination
for election by the Company's shareowners, was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board of Directors; or
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(c) Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company or
the acquisition of assets of another entity (a "Company Transaction"), in
each case, unless, following such Company Transaction:
(1) all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to
such Company Transaction beneficially own, directly or indirectly,
more than sixty percent (60%) of, respectively, the then outstanding
shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the corporation
resulting from such Company Transaction (including, without
limitation, a corporation which as a result of such transaction owns
the Company or all or substantially all of the Company's assets either
directly or through one or more subsidiaries) in substantially the
same proportions as their ownership, immediately prior to such Company
Transaction of the Outstanding Company Common Stock and Outstanding
Company Voting Securities, as the case may be,
(2) no Person (excluding any employee benefit plan or related trust
sponsored by the Company or by such corporation resulting from such
Company Transaction) beneficially owns, directly or indirectly, twenty
percent (20%) or more of, respectively, the then outstanding shares of
common stock of the corporation resulting from such Company
Transaction or the combined voting power of the then outstanding
voting securities of such corporation except to the extent that such
ownership existed prior to the Company Transaction, and
(3) at least a majority of the members of the board of directors of the
corporation resulting from such Company Transaction were members of
the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board of Directors providing for
such Company Transaction; or
(d) Approval by the Company's shareowners of a complete liquidation or
dissolution of the Company.
1.120 Code means the Internal Revenue Code of 1986, as from time to time
amended.
1.130 Committee means the Compensation and Management Development Committee of
the Board of Directors.
1.140 Company means Rockwell International Corporation, a Delaware corporation,
and any successor to all or substantially all of its assets or business.
1.150 Company Match Account means:
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(a) the sum of all of a Participant's Annual Company Match Amounts,
(b) adjusted by amounts credited or debited (gains or losses) thereto, in
accordance with the provisions of Section 4.020(b), as such provisions
relate to such Company Match Account, and
(c) reduced by any amount debited thereon equal to the amount of all
distributions made to the Participant or his Beneficiary pursuant to this
Plan which are related to such Company Match Account.
1.160 Deduction Limitation means the following described limitation on a
benefit that may otherwise be distributable pursuant to the provisions of this
Plan. Except as otherwise provided, this limitation will be applied to all
distributions that are "subject to the Deduction Limitation" under this Plan.
If the Company determines in good faith prior to a Change of Control that there
is a reasonable likelihood that any compensation paid to a Participant for a
taxable year of the Company would not be deductible by the Company solely by
reason of the limitation under Code ss.162(m), then, to the extent deemed
necessary by the Company to ensure that the entire amount of any distribution
to the Participant pursuant to this Plan prior to the Change of Control is
deductible, the Company may defer all or any portion of a distribution under
this Plan. Any amounts deferred pursuant to this limitation will continue to be
credited/debited with additional amounts in accordance with Section 4.020(b),
even if such amount is being paid out in installments. The amounts so deferred
and amounts credited thereon will be distributed to the Participant or his
Beneficiary (in the event of the Participant's death) at the earliest possible
date, as determined in good faith by the Company, on which the deductibility of
compensation paid or payable to the Participant for the taxable year of the
Company during which the distribution is made will not be limited by ss.162(m),
or if earlier, the effective date of a Change of Control. Notwithstanding
anything to the contrary in this Plan, the Deduction Limitation will not apply
to any distributions made after a Change of Control.
1.170 Deferral Election means an election made pursuant to Article III by a
Participant to defer receipt of a part of his Base Annual Salary or to defer
receipt of all or a part of his Incentive Compensation.
1.180 Deferral Election Form means the form established from time to time by
the Committee or its delegate that a Participant completes, signs and returns
to the Committee or its delegate to make a Deferral Election pursuant to
Article III, in order to defer receipt of a part of his Base Annual Salary or
to defer receipt of all or a part of his Incentive Compensation.
1.190 Determination Date, which only has applicability with respect to the
provisions of Appendix A of this Plan, as such appendix applies to the
interests of individuals who were participants in a Predecessor Plan and as it
defines the value from time to time of amounts
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deferred under such Predecessor Plans prior to the Effective Date, means the
last day of each calendar year quarter (i.e., March 31st, June 30th,
September 30th and December 31st).
1.200 Disability means a period of disability during which a Participant
qualifies for permanent disability benefits under the Company's or an
Affiliate's long-term disability plan, or, if a Participant does not
participate in such a plan, a period of disability during which the Participant
would have qualified for permanent disability benefits, if the Participant had
been a participant in such a plan, as determined. If the Company and its
Affiliates do not sponsor such a plan, or if they should discontinue sponsoring
such a plan, Disability shall be determined by the Committee or its delegate.
1.210 Effective Date means June 1, 2000 for this restated Plan and means,
respectively for the Rockwell and Allen-Bradley Predecessor Plans, April 3,
1985 and August 1, 1988.
1.220 Eligible Employee means any Employee who is employed in the United States
by the Company or an Affiliate and whose Base Annual Salary as of the beginning
of a Plan Year is equal to or greater than One Hundred Thousand Dollars
($100,000.00).
1.230 Employee means any person who is employed by the Company or by an
Affiliate.
1.240 ERISA means the Employee Retirement Income Security Act of 1974, as
from time to time amended.
1.250 Exchange Act means the Securities Exchange Act of 1934, as amended.
1.260 Incentive Compensation means any award payable to a Participant under an
Incentive Compensation Plan sponsored by the Company or an Affiliate which, but
for a Deferral Election under the Plan, would be paid to the Participant and
considered to be "wages" for purposes of United States federal income tax
withholding.
1.270 Incentive Compensation Deferral means a deferral by a Participant of part
or all of his Incentive Compensation otherwise payable to him with respect to a
particular fiscal year of the Company.
1.280 Incentive Compensation Deferral Account means:
(a) the sum of all of a Participant's Incentive Compensation Deferrals,
(b) adjusted by amounts credited or debited (gains or losses) thereto, in
accordance with the provisions of Section 4.020(b) which are related to
such Incentive Compensation Deferral Account, and
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(c) reduced by any amount debited thereon equal to the amount of all
distributions made to the Participant or his Beneficiary pursuant to this
Plan which are related to such Incentive Compensation Deferral Account.
1.290 Interest Rate. One-twelfth of the annual interest rate for quarterly
compounding that is one hundred and twenty percent (120%) of the "applicable
Federal long-term rate" determined by the Secretary of the Treasury pursuant to
Code ss.1274(d), or any successor provision, as applicable for each of the
months in the three-month period ending on the last day of each calendar year
quarter.
1.300 Measurement Funds means the investment vehicles offered under this Plan
which are identified and described in Appendix B, each of whose purpose is to
mirror, to the greatest extent reasonably possible, the investment performance
of a particular benchmark mutual fund sponsored and offered by Fidelity
Investments, each of which benchmark mutual funds is also described in the said
Appendix B.
1.310 Named Fiduciary means the Committee, its delegates, the Trustee and,
following the occurrence of a Change of Control, the third-party fiduciary
described in Section 13.020 of this Plan.
1.320 Non-Qualified Savings Plan means the Rockwell International Corporation
Non-Qualified Retirement Savings Plan, as amended from time to time.
1.330 Participant means an Eligible Employee:
(a) who elects to participate in the Plan;
(b) who signs a Participation Agreement Form and a Beneficiary
Designation Form;
(c) whose signed Participation Agreement Form and Beneficiary
Designation Form are accepted by the Committee or its delegate;
(d) who commences participation in the Plan; and
(e) who has not elected to terminate participation in the Plan
A spouse or former spouse of a Participant will not be treated as a Participant
in the Plan or have an Account Balance under the Plan, even if the spouse or
former spouse has an interest in the Participant's benefits under the Plan as a
result of applicable law or property settlements resulting from legal
separation or divorce.
1.340 Participation Agreement means a written agreement, as may be amended from
time to time, which is provided by an Eligible Employee or Participant to the
Committee or its delegate and
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is then accepted and approved by said Committee or delegate. Each such
Participation Agreement will provide for the entire benefit to which such
Participant is entitled under the Plan. The Participation Agreement bearing the
latest date of acceptance by the Committee or its delegate will supersede all
previous such Participation Agreements in their entirety and will govern the
Eligible Employee's or Participant's entitlement to benefits hereunder. The
terms of any such Participation Agreement may be different for a particular
Participant and may provide additional benefits not set forth in the Plan or
may limit the benefits otherwise provided under the Plan; provided, however,
that any such additional benefits or benefit limitations must be agreed to by
both the Committee or its delegate and the Participant.
1.350 Plan means this Rockwell International Corporation Deferred Compensation
Plan, which is evidenced by this instrument and by the forms associated with
the said instrument, as they may be amended from time to time.
1.360 Plan Year means each twelve-month period ending on the last day of
December.
1.370 Predecessor Plan means the deferred compensation arrangements (namely the
Rockwell International Corporation Deferred Compensation Plan and the
Allen-Bradley Company, Inc. Deferred Compensation Plan) which were in effect
and applicable to certain of the Participants hereunder immediately prior to
the Effective Date of this Plan, as such arrangements were administered during
the period preceding such Effective Date, it being specifically understood and
herein provided that such Predecessor Plans form parts of this Plan. To the
extent a Predecessor Plan remains in effect with respect to a Participant, it
will be governed by the terms of this Plan, except as otherwise provided in
Appendix A.
1.380 Pre-Retirement Survivor Benefit means the benefit set forth in Article
VII.
1.390 Qualified Savings Plan means the Rockwell International Corporation
Salaried Retirement Savings Plan, as amended from time to time.
1.400 Retirement, Retire(s) or Retired means, with respect to an Employee,
severance from employment with the Company and all of its Affiliates for any
reason other than a leave of absence, death or Disability on or after the
attainment of his normal retirement or early retirement age.
1.410 Retirement Benefit means the benefit set forth in Article VI.
1.420 Salary Deferral Account means:
(a) the sum of all of a Participant's Annual Salary Deferral Amounts,
(b) adjusted by amounts credited or debited (gains or losses) thereto, in
accordance with the provisions of Section 4.020(b), as such provisions
relate to such Salary Deferral Account, and
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(c) reduced by any amount debited thereon equal to the amount of all
distributions made to the Participant or his Beneficiary pursuant to this
Plan which are related to such Salary Deferral Account.
1.430 Short-Term Payout means the payout set forth in Section 5.010 of the
Plan.
1.440 Termination Benefit means the benefit set forth in Article VIII.
1.450 Termination of Employment means the severing of a Participant's
employment with the Company and all Affiliates, voluntarily or involuntarily,
for any reason other than Retirement, Disability, death or an authorized leave
of absence.
1.460 Trust means the trust established by agreement between the Company and
the Trustee, which trust will be a revocable, grantor trust, until the
occurrence of a Change of Control, at which time such trust will become an
irrevocable trust.
1.470 Trustee means Wells Fargo Bank N.A., or any successor trustee of the
Trust described in Section 1.460 of this Plan.
1.480 Unforeseeable Financial Emergency means an unanticipated emergency that
is caused by an event beyond the control of the Participant which would result
in severe financial hardship to the Participant and which itself results from:
(a) a sudden and unexpected illness or accident of the Participant or a
dependent of the Participant,
(b) a loss of the Participant's property due to casualty, or
(c) such other extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant,
all as determined in the discretion of the Committee or its delegate.
ARTICLE II: PARTICIPATION
2.010 Select Group Defined. Since participation in the Plan is intended to be
limited to a select group of management and highly compensated Employees, the
Plan is only available to Eligible Employees of the Company and its Affiliates.
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2.020 Commencement of Participation. As a condition to initial participation in
this Plan, each Eligible Employee who wishes to participate in the Plan will be
required to complete, execute and return to the Committee or its delegate a
Participation Agreement Form and a Beneficiary Designation Form.
(a) In the case of such an Eligible Employee's initial election to become
a Participant in a particular Plan Year, such documentation must be
provided by the Eligible Employee to the Committee or its delegate within
sixty (60) days following his being notified of his status as an Eligible
Employee.
(b) Notwithstanding the above, in the case of the Plan Year commencing on
January 1, 2000, each Eligible Employee will be required to provide the
Committee or its delegate with the above Participation Agreement Form and
Beneficiary Designation Form on or before May 15, 2000, in order to
evidence his desire to participate in the Plan in such Plan Year.
(c) If an Eligible Employee has met all enrollment requirements set forth
in this Plan and required by the Committee or its delegate (including
returning all required documents to the Committee or its delegate) in the
time frames described in the above subsections, that the Eligible Employee
will become a Plan Participant on the first day of the month following the
month in which he completes all such enrollment requirements, except that,
if an individual becomes an Eligible Employee during the last three months
of a calendar year, that Eligible Employee will become a Plan Participant
on the first day of the next calendar year.
If an Eligible Employee fails to meet all such requirements within the period
required, in accordance with subsections (a) and (b) of this Section, that
Eligible Employee will not be entitled to participate in the Plan until the
first day of a subsequent Plan Year following the delivery to and acceptance by
the Committee or its delegate of the required documents. In addition, the
Committee or its delegate will establish from time to time such other
enrollment requirements as it determines in its sole discretion are necessary.
2.030 Termination of Participation and/or Deferrals. If the Committee or its
delegate determines in good faith that a Participant no longer qualifies as a
member of a select group of management or highly compensated employees, as
membership in such group is determined in accordance with ERISA Section 201(2),
301(a)(3) and 401(a)(1), the Committee will have the right, in its sole
discretion, to:
(a) terminate any deferral election the Participant has made for the remainder
of the Plan Year in which the Participant's membership status changes,
(b) prevent the Participant from making future deferral elections and/or
(c) immediately distribute the Participant's then Account Balance as a
Termination Benefit and terminate the Participant's participation in the
Plan.
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ARTICLE III: DEFERRAL AND COMPANY MATCH CREDITS
3.010 Base Annual Salary Deferral. Each Plan Participant will be permitted to
make an irrevocable election to defer (such Deferral Election to be made in
whole percentages) receipt of an amount equal to one percent (1%) through fifty
percent (50%) of his Base Annual Salary.
(a) If an Eligible Employee first becomes a Participant after the first
day of a Plan Year, or in the case of the Plan Year beginning on January
1, 2000, if such Base Annual Salary Deferral Election goes into effect for
the period between June 1, 2000 through December 31, 2000, the Base Annual
Salary Deferral will be for an amount equal to the percentage set forth
above, multiplied by a fraction, the numerator of which is the number of
complete months remaining in the Plan Year and the denominator of which is
twelve (12), with the effect that the Participant's deferred Base Annual
Salary would be limited to the amount of salary not yet earned by the
Participant as of the date the Participant submits a Participation
Agreement Form to the Company or an Affiliate for acceptance.
(b) For each succeeding Plan Year, a Participant, will be permitted, in his
sole discretion, to make a similar irrevocable election for the following
Plan Year (and such other elections as the Committee or its delegate deems
necessary or desirable) and must deliver such Deferral Election to the
Company or an Affiliate on a new Deferral Election Form before December
1st of the Plan Year immediately preceding the Plan Year for which the
deferral is intended. If no such Deferral Election Form is timely
delivered for a Plan Year, the Annual Deferral Amount will be zero for
that Plan Year.
(c) During each Plan Year, the Base Annual Salary Deferral Amount will be
withheld from each regularly scheduled Base Annual Salary payroll in equal
amounts, as adjusted from time to time for increases and decreases in Base
Annual Salary.
3.020 Incentive Compensation Deferral. In addition to the Base Annual Salary
deferral described in the preceding Section, each Participant will be permitted
to irrevocably elect to defer receipt of an amount equal to one percent (1%)
through one hundred percent (100%), such Deferral Election to be made in whole
percentages, of the amount of any Incentive Compensation which he might be
awarded.
(a) In general, such Deferral Election will be made on a Deferral Election
Form and will apply to Incentive Compensation to which the Participant
might be entitled for the fiscal year immediately following such Deferral
Election.
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(b) Notwithstanding the above, however, in the case of deferral of Incentive
Compensation awarded for the Company's 2000 fiscal year, such Deferral
Election will be effective for that said 2000 fiscal year, provided that
the Deferral Election is made on or before May 15, 2000.
The Incentive Compensation Deferral Amount will be withheld at the time the
said Incentive Compensation are or otherwise would be paid to the Participant,
whether or not this occurs during the Plan Year itself.
3.030 Annual Company Match Amount. A Participant's Annual Company Match Amount
for any Plan Year will be equal to the amount that the Company would have
contributed to the Participant's account in the Qualified Savings Plan as a
matching contribution or other employer contribution to that Plan or would have
credited to such Participant's account in the Non-Qualified Savings Plan as a
matching credit or other similar credit, but for the fact that the Participant
elected to defer Base Annual Salary pursuant to the provisions of Section 3.010
of this Plan. The Annual Company Match Amount which is attributable to a
Participant's Annual Salary Deferral Amount for a particular Plan Year will be
calculated in the first month of the immediately succeeding Plan Year and will
be credited to the Participant's Company Match Account no later than January
31st of such succeeding Plan Year.
(a) In the event of a Participant's Retirement or death, the Participant's
Company Match Account will be credited with the Annual Company Match
Amount for the Plan Year in which he Retires or dies.
(b) If a Participant is not employed by the Company or an Affiliate as of the
last day of a Plan Year for any reason other than the Participant's
Retirement or death, the Annual Company Match Amount for such Plan Year
will be zero.
ARTICLE IV: PLAN ACCOUNTS
4.010 Vesting.
(a) A Participant will have a one hundred percent (100%) vested interest in
his Deferral Account and in his Company Match Account.
(b) Notwithstanding anything to the contrary contained in this Plan from time
to time, in the event of a Change of Control, a Participant's Deferral
Account, Company Match Account and any other interest of his under this
Plan at the time of the occurrence of the Change of Control will remain
one hundred percent (100%) vested, if such interest is already 100% vested
at that time and, if such interest is not one hundred percent (100%)
vested at that time, will immediately become one hundred (100%) vested.
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4.020 Crediting/Debiting of Account Balances. In accordance with, and subject
to, the rules and procedures that are established from time to time by the
Committee or its delegate, in its sole discretion, amounts will be credited or
debited to a Participant's Account Balance in the manner set forth in the
provisions of this Section; provided, however, that the said provisions will
apply individually to, and be administered separately for, on the one hand, the
Participant's Salary Deferral and Company Match Accounts and, on the other hand,
his Incentive Compensation Deferral Account, with the intention that that the
Participant will be permitted to make separate elections with respect to each.
(a) Allocation to Measurement Funds. A Participant, in connection with his
initial Deferral Election in accordance with Section 3.010 or 3.020 above,
will be permitted to also elect to have one or more Measurement Funds used
to determine the amounts to be credited to his Account Balance and his
election will continue to be in effect thereafter, unless it should be
changed in accordance with subsection (c).
(b) Crediting or Debiting Method. The performance (either positive or
negative) of each elected Measurement Fund will be determined by the
Committee or its delegate, based on the performance of the Measurement
Funds themselves. A Participant's Account Balance will be credited or
debited on a daily basis based on the performance of each Measurement Fund
selected by the Participant, as determined by the Committee or its
delegate in its sole discretion, as though:
(1) a Participant's Account Balance were actually invested in the
Measurement Fund(s) selected by the Participant as of the close of
business on any business day, at the closing price on that day;
(2) the portion of the Annual Deferral Amount that was actually deferred
during any calendar quarter were invested in the Measurement Fund(s)
selected by the Participant, in the percentages applicable on such
day, no later than the close of business on the first business day
after the day on which such amounts are actually deferred from the
Participant's Base Annual Salary through reductions in his payroll, at
the closing price on such date; and
(3) any distribution made to a Participant that decreases such
Participant's Account Balance ceased being invested in the Measurement
Fund(s), in the applicable percentages, no earlier than one business
day prior to the distribution, at the closing price on such date.
(c) Transfers among Measurement Funds. The Participant will be permitted to
change, on a daily basis, any previous Measurement Fund election or
elections he has made with regard to his Account Balance. The elections
and changes to such elections which a Participant makes pursuant to this
subsection will be made by means of any method (including any available
telephonic or electronic method which is acceptable to the Committee or
its delegate at the
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time the election or change is made by the Participant), and may be made at
any time and will be effective as of the New York Stock Exchange closing
immediately following the making of that election or change; provided,
however, if it is determined by the Committee or its delegate that an
investment election made by a Participant is invalid or defective, the
Participant's election, until duly corrected by him, will be deemed to have
been made in favor of whatever short-term, money market vehicle is
available under the Plan at that time.
(d) No Actual Investment. Notwithstanding any other provision of this Plan
that may be interpreted to the contrary, the Measurement Funds are to be
used for measurement purposes only, and a Participant's election of any
such Measurement Fund, the allocation to his Account Balance thereto, the
calculation of additional amounts and the crediting or debiting of such
amounts to a Participant's Account Balance will not be considered or
construed in any manner as an actual investment of his Account Balance in
any such Measurement Fund. In the event that the Company or the Trustee,
in its own discretion, decides to invest funds in any or all of the
Measurement Funds, no Participant will have any rights in or to such
investments themselves. Without limiting the foregoing, a Participant's
Account Balance will at all times be a bookkeeping entry only and will not
represent any investment made on his behalf by the Company or the Trust.
The Participant will at all times remain an unsecured creditor of the
Company.
4.030 Amounts Credited Pursuant to Predecessor Plans. Notwithstanding the
provisions of Section 4.020, in the case of amounts which were credited to any
Predecessor Plan prior to the Effective Date as incentive compensation plan
deferrals, such amounts will be separately accounted for hereunder and will
continue to be adjusted and administered (specifically including application,
on a quarterly basis, of the Interest Rate to a Participant's account in such
Predecessor Plan) in the manner previously in effect under such Predecessor
Plan and as set forth in Appendix A; provided, however, that, unless otherwise
provided in the said Appendix A, administration of such Predecessor Plan
deferrals will be in accordance with the provisions of this Plan as they apply
to amounts deferred after the Effective Date.
4.040 FICA and Other Taxes.
(a) Annual Deferral Amounts. For each Plan Year in which an Annual Deferral
Amount is being withheld from a Participant, the Company or any Affiliate
employing the Participant will withhold from that portion of the
Participant's Base Annual Salary and Incentive Compensation which is not
being deferred the Participant's share of FICA and other employment taxes
on such Annual Deferral Amount.
(b) Company Match Amounts. When a participant becomes vested in a portion of
his Company Match Account, the Company or any Affiliate employing the
Participant will withhold from the Participant's Base Annual Salary and/or
Incentive compensation that is not deferred the Participant's share of
FICA and other employment taxes.
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(c) Distributions. The Company or any Affiliate employing the Participant, or
the Trustee of the Trust, will withhold from any payments made to a
Participant under this Plan all federal, state and local income,
employment and other taxes required to be withheld in connection with such
payments, in amounts and in a manner to be determined in the sole
discretion of the Company and the trustee of the Trust.
ARTICLE V: SHORT-TERM PAYOUTS AND WITHDRAWALS
5.010 Short-Term Payouts. In connection with each election to defer an Annual
Deferral Amount, a Participant may irrevocably elect to receive a future
Short-Term Payout from the Plan with respect to such Annual Deferral Amount.
(a) Subject to the Deduction Limitation, the said Short-Term Payout will be a
lump sum payment in an amount that is equal to the Annual Deferral Amount,
as adjusted for amounts credited or debited in the manner provided in
Section 4.020 on that amount, determined at the time that the Short-Term
Payout becomes payable (rather than at the date of a Termination of
Employment).
(b) Subject to the Deduction Limitation and the other terms and conditions of
this Plan, each Short-Term Payout elected will be paid out during a sixty
(60) day period commencing immediately after the last day of any Plan Year
designated by the Participant that is at least three Plan Years after the
Plan Year in which the Annual Deferral Amount is actually deferred. By way
of example, if a three-year Short-Term Payout is elected for Annual
Deferral Amounts that are deferred in the Plan Year commencing January 1,
2001, the three-year Short-Term Payout would become payable during a sixty
(60) day period commencing January 1, 2005.
(c) Should an event occur that triggers a benefit under Article VI or VII, any
Annual Deferral Amount, plus amounts credited or debited thereon, that is
subject to a Short-Term Payout election under this Section will not be
paid in accordance with this Section, but will instead be paid in
accordance with the other applicable Article.
(d) Notwithstanding any other provision in this Plan to the contrary, the
Short-Term Payout described in this Section will only be available with
respect to Annual Deferral Amounts which are deferred after the Effective
Date and will specifically not be available to amounts which were deferred
by a Participant pursuant to the provisions of a Predecessor Plan.
5.020 Withdrawal for Unforeseeable Financial Emergencies. In the event that any
Participant should encounter an Unforeseeable Financial Emergency, such
Participant may:
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(a) petition the Committee or its delegate to suspend any deferrals required
to be made on his behalf, and/or
(b) petition the Committee or its delegate to permit him to receive a partial
or full payout from the Plan. Such a payout will not exceed the lesser of
--
(1) the Participant's Account Balance, calculated as if the Participant
were receiving a Termination Benefit, or
(2) the amount reasonably needed to satisfy the Unforeseeable Financial
Emergency.
If, subject to the sole discretion of the Committee or its delegate, the
petition for a suspension and/or payout is approved, suspension will take
effect on the date of approval and any payout will be made within sixty (60)
days of the date of approval. The payment of any amount under this Section will
not be subject to the Deduction Limitation.
5.030 Withdrawal Election. A Participant (or, after a Participant's death, the
Participant's Beneficiary) may elect, at any time, to withdraw some or all of
the Participant's Account Balance, even though the Participant (or the
Participant's Beneficiary) has not encountered an Unforeseeable Financial
Emergency at the time of such withdrawal, but the withdrawal will be subject to
the provisions of this Section.
(a) The amount of the withdrawal will be subject to imposition of a withdrawal
penalty equal to ten percent (10%) of such amount (the net amount being
referred to in this Section as the "Withdrawal Amount").
(b) Such an election may be made at any time, before or after the
Participant's Retirement, Disability, death or Termination of Employment,
and whether or not the Participant (or Beneficiary) is in the process of
being paid pursuant to an installment payment schedule. The Participant
(or his Beneficiary) will be required to make this election by giving the
Committee or its delegate advance written notice of the election in a form
determined from time to time by the Committee or its delegate. The
Participant (or his Beneficiary) will be paid the Withdrawal Amount within
sixty (60) days of his election. Once a Withdrawal Amount has been paid,
the Participant's participation in the Plan will be suspended and the
Participant will not be eligible to elect Base Annual Salary Deferrals and
Incentive Compensation Deferrals, nor will he be eligible to have Annual
Company Match Amounts credited to his Company Match Account, during the
three-year period immediately following payment of the Withdrawal amount;
provided, however, that such Participant will be eligible to have a pro
rata portion of the Company Match Amount attributable to the portion of
the Plan Year immediately prior to such a withdrawal credited to his
Company Match Account. The payment of this Withdrawal Amount will not be
subject to the Deduction Limitation.
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ARTICLE VI: RETIREMENT BENEFITS
6.010 Retirement Benefit. Subject to the Deduction Limitation, a Participant
who Retires will receive, as a Retirement Benefit, his Account Balance.
6.020 Payment of Retirement Benefit. A Participant, in connection with his
commencement of participation in the Plan, may elect in his Participation
Agreement to receive the Retirement Benefit in a lump sum or pursuant to an
Annual Installment Method of periods of from two (2) through fifteen (15)
years. The Participant may change any election he has previously made to a
different payout period permitted hereunder, but only one such a change may be
made with respect to any single election. Such change will be accomplished by
the Participant submitting a new Participation Agreement to the Committee or
its delegate, but such change will not be valid, unless it has been submitted
by the Participant and accepted by the Committee or its delegate (in the
Committee's or delegate's discretion) at least one (1) year prior to the
Participant's Retirement. The Participation Agreement most recently accepted by
the Committee or its delegate shall govern the payout of the Retirement
Benefit. If a Participant does not make any election with respect to the
payment of the Retirement Benefit, then such benefit shall be payable in a lump
sum. The lump sum payment shall be made, or installment payments shall
commence, no later than sixty (60) days after the last day of the Plan Year in
which the Participant Retires. Any payment made shall be subject to the
Deduction Limitation.
6.030 Death Prior to Completion of Retirement Benefit. If a Participant dies
after Retirement but before the Retirement Benefit is paid in full, the
Participant's unpaid Retirement Benefit payments shall continue and shall be
paid to the Participant's Beneficiary:
(a) over the remaining number of years and in the same amounts as that benefit
would have been paid to the Participant had the Participant survived, or
in a lump sum, if requested by the Beneficiary and allowed in the sole
discretion of the Committee or its delegate, which is equal to the
Participant's unpaid remaining Account Balance.
ARTICLE VII: PRE-RETIREMENT SURVIVOR BENEFIT
7.010 Pre-Retirement Survivor Benefit Subject to the Deduction Limitation, the
Participant's Beneficiary shall receive a Pre-Retirement Survivor Benefit equal
to the Participant's Account Balance if the Participant dies before he Retires,
experiences a Termination of Employment or suffers a Disability.
7.020 Payment of Pre-Retirement Survivor Benefit. A Participant, in connection
with his commencement of participation in the Plan, may elect in his
Participation Agreement whether the Pre-Retirement Survivor Benefit should be
received by his Beneficiary in a lump sum or
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pursuant to an Annual Installment Method of periods of from 2 through 15 years.
The Participant may annually change this election to an allowable alternative
payout period by submitting a new Participation Agreement to the Committee or
its delegate. The Beneficiary Designation Form most recently filed with the
Committee or its delegate prior to the Participant's death will govern the
payout of the Participant's Pre-Retirement Survivor Benefit. If a Participant
does not make any election with respect to the payment of the Pre-Retirement
Survivor Benefit, then suchbenefit will be paid in a lump sum. Despite the
foregoing, if the Participant's Account Balance at the time of his death is less
than $25,000, payment of the Pre-Retirement Survivor Benefit may be made, in the
sole discretion of the Committee or its delegate, in a lump sum or pursuant to
an Annual Installment Method of not more than five (5) years. The lump sum
payment will be made, or installment payments will commence, no later than sixty
(60) days after the last day of the Plan Year in which the Committee or its
delegate is provided with proof that is satisfactory to the Committee or its
delegate of the Participant's death. Any payment made will be subject to the
Deduction Limitation.
ARTICLE VIII: TERMINATION BENEFIT
8.010 Termination Benefit. Subject to the Deduction Limitation, the Participant
will receive a Termination Benefit, which will be equal to the Participant's
Account Balance if a Participant experiences a Termination of Employment prior
to his Retirement, death or Disability.
8.020 Payment of Termination Benefit. The form of payment of a Participant's
Account Balance, if such payment is due to the Participation's Termination of
Employment will in all cases be a lump sum.
ARTICLE IX: DISABILITY WAIVER AND BENEFIT
9.010 Disability Waiver.
(a) Waiver of Deferral. A Participant who is determined by the Committee or
its delegate to be suffering from a Disability will be excused from
fulfilling that portion of the Annual Deferral
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Amount commitment that would otherwise have been withheld from his Base
Annual Salary and/or Incentive Compensation for the Plan Year during which
he first suffers a Disability. During the period of Disability, such
Participant will not be permitted to make any additional deferral
elections, but will continue to be considered a Participant for all other
purposes of this Plan.
(b) Return to Work. If a Participant returns to employment after a Disability
ceases, the Participant may elect to defer an Annual Deferral Amount for
the Plan Year following his return to employment or service and for every
Plan Year thereafter while he is a Participant in the Plan.
9.020 Continued Eligibility; Disability Benefit. A Participant suffering a
Disability will, for benefit purposes under this Plan, continue to be
considered to be employed and will be eligible for the benefits provided for
hereunder. Notwithstanding the above, the Committee or its delegate will have
the right to, in its sole and absolute discretion and for purposes of this Plan
only, and must in the case of a Participant who is otherwise eligible to
Retire, deem the Participant to have experienced a Termination of Employment,
or in the case of a Participant who is eligible to Retire, to have Retired, at
any time (or in the case of a Participant who is eligible to Retire, as soon as
practicable) after such Participant is determined to be suffering a Disability,
in which case the Participant will receive a Disability Benefit equal to his
Account Balance at the time of the Committee's or its delegate's determination;
provided, however, that should the Participant otherwise have been eligible to
Retire, he or she will be paid in accordance with Article VI. The Disability
Benefit will be paid in a lump sum within sixty (60) days of the Committee's or
its delegate's exercise of such right. Any payment made will be subject to the
Deduction Limitation.
ARTICLE X: BENEFICIARY DESIGNATION
10.010 Beneficiary. Each Participant will have the right, at any time, to
designate his Beneficiary or Beneficiaries (both primary and contingent) to
receive any benefits payable under the Plan to a beneficiary upon the death of
a Participant. The Beneficiary designated under this Plan may be the same as or
different from the Beneficiary designation under any other plan of an Employer
in which the Participant participates.
10.020 Beneficiary Designation or Change of Designation. A Participant will be
permitted to designate his Beneficiary by completing and signing the
Beneficiary Designation Form, and returning it to the Committee or its
delegate. A Participant will have the right to change a Beneficiary by
completing, signing and otherwise complying with the terms of the Beneficiary
Designation Form and the Committee's or its delegate's rules and procedures, as
in effect from time to time. Upon the acceptance by the Committee or its
delegate of a new Beneficiary Designation Form, all Beneficiary designations
previously filed will be canceled. The
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Committee or its delegate will be entitled to rely on the last Beneficiary
Designation Form filed by the Participant and accepted by the Committee or its
delegate prior to the Participant's death.
10.030 Spousal Consent Required. If a Participant names someone other than his
spouse as a Beneficiary, a spousal consent, in the form designated by the
Committee or its delegate, must be signed by that Participant's spouse and
returned to the Committee or its delegate.
10.040 Acknowledgment. No designation or change in designation of a Beneficiary
will be effective until received and acknowledged in writing by the Committee
or its delegate.
10.050 Absence of Valid Beneficiary Designation. If a Participant fails to
designate a Beneficiary as provided in the preceding Sections or, if all
designated Beneficiaries predecease the Participant or die prior to complete
distribution of the Participant's benefits, then the Participant's designated
Beneficiary will be deemed to be his surviving spouse. If the Participant has
no surviving spouse, the benefits remaining under the Plan to be paid to a
Beneficiary will be payable to the executor or personal representative of the
Participant's estate.
10.060 Doubt as to Beneficiary. If the Committee or its delegate has any doubt
as to the proper Beneficiary to receive payments pursuant to this Plan, the
Committee or its delegate will have the right, exercisable in its discretion,
to withhold such payments until this matter is resolved to the Committee's or
the delegate's satisfaction.
10.070 Discharge of Obligations.The payment of benefits under the Plan to a
Beneficiary will fully and completely discharge the Company and all of its
Affiliates and the Committee from all further obligations under this Plan with
respect to the Participant, and that Participant's participation in this Plan
will terminate upon such full payment of benefits.
ARTICLE XI: LEAVE OF ABSENCE
11.010 Paid Leave of Absence. If a Participant is authorized by the Company or
the Affiliate employing the Participant for any reason to take a paid leave of
absence, the Participant will continue to be considered to be an Employee and
the Annual Deferral Amount will continue to be withheld during such paid leave
of absence.
11.020 Unpaid Leave of Absence. If a Participant is authorized by the Company
or the Affiliate employing the Participant to take an unpaid leave of absence,
the Participant will continue to be considered to be an Employee and the
Participant will be excused from making deferrals until the earlier of the date
the leave of absence expires or the Participant returns to a paid employment
status. Upon such expiration or return, deferrals will resume for the remaining
portion of the Plan Year in which the expiration or return occurs, based on the
deferral election, if any, made for that Plan Year. If no election was made for
that Plan Year, no deferral will be withheld.
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ARTICLE XII: TERMINATION, AMENDMENT OR MODIFICATION
12.010 Termination. Although the Company and each Affiliate anticipates that it
will continue the Plan for an indefinite period of time, there is no guarantee
that the Company or any such Affiliate will continue the Plan or will not
terminate the Plan at any time in the future. Accordingly, the Company reserves
the right to discontinue sponsorship of the Plan and/or to terminate the Plan
at any time with respect to any or all of its participating Employees, by
action of the Board of Directors. Upon the termination of the Plan, the
participation of affected Participants will terminate and their Account
Balances, determined as if they had experienced a Termination of Employment on
the date of Plan termination or, if Plan termination occurs after the date upon
which a Participant was eligible to Retire, then with respect to that
Participant as if he had Retired on the date of Plan termination, will be paid
to the Participants as follows:
(a) Prior to a Change of Control, if the Plan is terminated with respect to
all of its Participants, the Company will have the right, in its sole
discretion, and notwithstanding any elections made by the Participant, to
pay such benefits in a lump sum or pursuant to an Annual Installment
Method of up to 15 years, with amounts credited and debited during the
installment period as provided herein. If the Plan is terminated with
respect to less than all of its Participants, the Company or the Affiliate
employing an affected Participant will be required to pay such benefits in
a lump sum.
(b) After a Change of Control, the Company or the Affiliate employing a
Participant will be required to pay such benefits in a lump sum. The
termination of the Plan will not adversely affect any Participant or
Beneficiary who has become entitled to the payment of any benefits under
the Plan as of the date of termination; provided however, that the Company
or Affiliate will have the right to accelerate installment payments
without a premium or prepayment penalty by paying the Account Balance in a
lump sum or pursuant to an Annual Installment Method using fewer years
(provided that the present value of all payments that will have been
received by a Participant at any given point of time under the different
payment schedule will equal or exceed the present value of all payments
that would have been received at that point in time under the original
payment schedule).
12.020 Amendment. The Company may, at any time, amend or modify the Plan in
whole or in part by action of the Board of Directors; provided, however, that:
(a) no amendment or modification shall be effective to decrease or restrict
the value of a Participant's Account Balance in existence at the time the
amendment or modification is made, calculated as if the Participant had
experienced a Termination of Employment as of the effective date of the
amendment or modification or, if the amendment or modification occurs
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after the date upon which the Participant was eligible to Retire, the
Participant had Retired as of the effective date of the amendment or
modification;
(b) no amendment or modification of this Section 12.020 Plan shall be
effective; and
(c) the amendment or modification of the Plan shall not affect any Participant
or Beneficiary who has become entitled to the payment of benefits under
the Plan as of the date of the amendment or modification
Notwithstanding the above, however, the Company will have the right to
accelerate installment payments by paying the Account Balance in a lump sum or
pursuant to an Annual Installment Method using fewer years (provided that the
present value of all payments that will have been received by a Participant at
any given point of time under the different payment schedule must equal or
exceed the present value of all payments that would have been received at that
point in time under the original payment schedule).
12.030 Amendment of Individual Participation Agreement Forms. Despite the
provisions of Sections 12.010 and 12.020, if a Participant's Participation
Agreement Form contains benefits or limitations that are not contained in this
Plan document, the Company or Affiliate may only amend or terminate such
provisions with the consent of the Participant.
12.040 Effect of Payment. The full payment of all applicable benefits hereunder
shall completely discharge all obligations to a Participant and his
Beneficiaries under this Plan.
ARTICLE XIII: ADMINISTRATION
13.010 Committee Duties. Except as otherwise provided in this Article, this
Plan will be administered by the Committee and its delegates. Members of the
Committee may be Participants under this Plan. The Committee will also have the
discretion and authority to:
(a) make, amend, interpret, and enforce all appropriate rules and regulations
for the administration of this Plan, and
(b) decide or resolve any and all questions including interpretations of this
Plan, as may arise in connection with the Plan.
Any individual serving on the Committee who is a Participant will not be
permitted to vote or act on any matter relating solely to himself or herself.
When making a determination or calculation, the Committee will be entitled to
rely on information furnished by a Participant or the Company.
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13.020 Administration Upon Change of Control. Upon and after the occurrence of a
Change of Control, the Plan will be administered by an independent third party
selected by the Trustee and approved by the individual who, immediately prior to
such event, was the Company's Chief Executive Officer or, if not so identified,
the Company's highest ranking officer (the "Ex-CEO"). The third-party
administrator so selected will have the discretionary power to determine all
questions arising in connection with the administration of the Plan and the
interpretation of the Plan and Trust including, but not limited, to benefit
entitlement determinations; provided, however, upon and after the occurrence of
a Change of Control, the said administrator will have no power to direct the
investment of Plan or Trust assets or select any investment manager or custodial
firm for the Plan or Trust.
Upon and after the occurrence of a Change of Control, the Company will be
required to:
(a) pay all reasonable administrative expenses and fees of the third-party
administrator;
(b) indemnify the third-party administrator against any costs, expenses and
liabilities including, without limitation, attorney's fees and expenses
arising in connection with the performance of such administrator
hereunder, except with respect to matters resulting from the gross
negligence or willful misconduct of the said administrator or its
employees or agents; and
(c) supply full and timely information to the third-party administrator on all
matters relating to the Plan, the Trust, the Participants and their
Beneficiaries, the Account Balances of the Participants, the date of
circumstances of the Retirement, Disability, death or Termination of
Employment of the Participants, and such other pertinent information as
the third-party administrator may reasonably require.
Upon and after a Change of Control, the third-party administrator may not be
terminated by the Company and may only be terminated (and a replacement
appointed) by the Trustee, but only with the approval of the Ex-CEO.
13.030 Agents. In the administration of this Plan, the Committee may, from time
to time, employ agents and delegate to them such administrative duties as it
sees fit (including acting through a duly appointed representative) and may
from time to time consult with counsel who may be counsel to any Employer. The
Company's Vice President, Compensation will at all times, unless otherwise
determined by the Committee, be deemed to be and shall be specifically referred
to herein as the Committee's delegate for all purposes herein.
13.040 Binding Effect of Decisions. The decision or action of the Committee or
its delegate with respect to any question arising out of or in connection with
the administration, interpretation and application of the Plan and the rules
and regulations promulgated hereunder will be final and conclusive and binding
upon all persons having any interest in the Plan.
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13.050 Indemnity of Committee. The Company and its Affiliates shall indemnify
and hold harmless the members of the Committee, any Employee to whom the duties
of the Committee may be delegated, and the Committee or its delegate against
any and all claims, losses, damages, expenses or liabilities arising from any
action or failure to act with respect to this Plan, except in the case of
willful misconduct by the Committee, any of its members, or such Employee.
13.060 Employer Information. To enable the Committee and its delegates to
perform their functions, the Company will supply full and timely information to
the Committee and delegates on all matters relating to the compensation of its
Participants, the date and circumstances of the Retirement, Disability, death
or circumstances of the Retirement, Disability, death or Termination of
Employment of its Participants, and such other pertinent information as the
Committee or its delegate may reasonably require.
ARTICLE XIV: OTHER BENEFITS AND AGREEMENTS
14.010 Coordination with Other Benefits. The benefits provided for a
Participant and Participant's Beneficiary under the Plan are in addition to any
other benefits available to such Participant under any other plan or program
for employees of the Company and its Affiliates. The Plan will supplement and
will not supersede, modify or amend any other such plan or program except as
may otherwise be expressly provided.
ARTICLE XV: CLAIMS PROCEDURE
15.010 Presentation of Claim. Any Participant or Beneficiary of a deceased
Participant (such Participant or Beneficiary being referred to below as a
"Claimant") may deliver to the Committee or its delegate a written claim for a
determination with respect to the amounts distributable to such Claimant from
the Plan. If such a claim relates to the contents of a notice received by the
Claimant, the claim must be made within sixty (60) days after such notice was
received by the Claimant. All other claims must be made within one hundred and
eighty (180) days of the date on which the event that caused the claim to arise
occurred. The claim must state with particularity the determination desired by
the Claimant.
15.020 Notification of Decision. The Committee or its delegate will consider a
Claimant's claim within a reasonable time, and will notify the Claimant in
writing:
(a) that the Claimant's requested determination has been made, and that the
claim has been allowed in full; or
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(b) that the Committee or its delegate has reached a conclusion contrary, in
whole or in part, to the Claimant's requested determination, and such
notice must set forth in a manner calculated to be understood by the
Claimant;
(c) the specific reason(s) for the denial of the claim, or any part of it;
(1) specific reference(s) to pertinent provisions of the Plan upon which
such denial was based;
(2) a description of any additional material or information necessary for
the Claimant to perfect the claim, and an explanation of why such
material or information is necessary; and
(3) an explanation of the claim review procedure set forth in Section
15.030 below.
15.030 Review of a Denied Claim. Within sixty (60) days after receiving a
notice from the Committee or its delegate that a claim has been denied, in
whole or in part, a Claimant (or the Claimant's duly authorized representative)
may file with the Committee or its delegate a written request for a review of
the denial of the claim. Thereafter, but not later than thirty (30) days after
the review procedure began, the Claimant (or the Claimant's duly authorized
representative):
(a) may review pertinent documents;
(b) may submit written comments or other documents; and/or
(c) may request a hearing, which the Committee or its delegate, in its sole
discretion, may grant.
15.040 Decision on Review. The Committee or its delegate will render any
decision on review promptly, and not later than 60 days after the filing of a
written request for review of the denial, unless a hearing is held or other
special circumstances require additional time, in which case the Committee's or
its delegate's decision must be rendered within one hundred and twenty (120)
days after such date. Such decision must be written in a manner calculated to
be understood by the Claimant, and it must contain:
(a) specific reasons for the decision;
(b) specific reference(s) to the pertinent Plan provisions upon which the
decision was based; and
(c) such other matters as the Committee or its delegate deems relevant.
15.050 Legal Action. A Claimant's compliance with the foregoing provisions of
this Article 14 is a mandatory prerequisite to a Claimant's right to commence
any legal action with respect to any claim for benefits under this Plan.
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ARTICLE XVI: TRUST
16.010 Establishment of the Trust. The Company shall establish the Trust (which
may be referred to herein as a "Rabbi Trust") and, upon the occurrence of a
Change of Control, such Rabbi Trust will thereafter be irrevocable until all
benefits due to Participants and Beneficiaries have been paid in full and the
Company will at that time cause an irrevocable funding of such Trust in an
amount which, as the Company determines in its discretion, is necessary to
provide, on a present value basis, for its and the Affiliates' respective future
liabilities created with respect to the Salary Deferral Accounts, Company Match
Accounts and Incentive Compensation Deferral Accounts of all Participants for
all periods prior to the transfer (specifically including any and all debits and
credits to the Participants' Account Balances for all periods prior to the
transfer, taking into consideration the value of the assets in the Trust at the
time of the transfer).
16.020 Interrelationship of the Plan and the Trust. The provisions of the Plan
and each Participant's Participation Agreement Form will govern the rights of a
Participant to receive distributions pursuant to the Plan. The provisions of
the Trust will govern the rights of the Company and its Affiliates,
Participants and the creditors of the Company and its Affiliates to the assets
transferred to the Trust. The Company and each of its Affiliates employing any
Participant will at all times remain liable to carry out their obligations
under the Plan.
16.030 Distributions From the Trust. The Company's and each of its Affiliate's
obligations under the Plan may be satisfied with Trust assets distributed
pursuant to the terms of the Trust, and any such distribution will reduce their
obligations under this Plan.
16.040 Rabbi Trust. The Rabbi Trust shall:
(a) be a non-qualified grantor trust which satisfies in all material respects
the requirement of Revenue Procedure 92-64, 1992-2 CB 122 (or any
successor Revenue Procedure or other applicable authority);
(b) become irrevocable upon a Change of Control;
(c) have as its trustee an independent third party (such as a bank trust
department or other similar party) that may be granted corporate trustee
powers under state law; and
(d) provide that any successor trustee shall be a bank trust department or
other party that may be granted corporate trustee powers under state law.
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ARTICLE XVII: MISCELLANEOUS
17.010 Status of Plan. The Plan is intended to be a plan that is not qualified
within the meaning of Code ss.401(a) and that "is unfunded and is maintained by
an employer primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employee" within the meaning of
ERISA Section 201(2), 301(a)(3) and 401(a)(1). The Plan will be administered and
interpreted to the extent possible in a manner consistent with that intent.
17.020 Unsecured General Creditor. Participants and their Beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interests or
claims in any property or assets of the Company or its Affiliates. For purposes
of the payment of benefits under this Plan, any and all of the Company's or
Affiliate's assets shall be, and remain, the general, unpledged unrestricted
assets of the Company or Affiliate. The Company or Affiliate's obligation under
the Plan shall be merely that of an unfunded and unsecured promise to pay money
in the future.
17.030 Company Liability. The Company's or an Affiliate's liability for the
payment of benefits will be defined only by the Plan and the Participant's
specific Participation Agreement Form. The Company and its Affiliates will have
no obligation to a Participant under the Plan, except as expressly provided in
the Plan and the Participant's Participation Agreement Form.
17.040 Nonassignability. Neither a Participant nor any other person will have
any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or
otherwise encumber, transfer, hypothecate, alienate or convey in advance of
actual receipt, the amounts, if any, payable hereunder, or any part thereof,
which are, and all rights to which are expressly declared to be, unassignable
and non-transferable. No part of the amounts payable will, prior to actual
payment, be subject to seizure, attachment, garnishment or sequestration for
the payment of any debts, judgments, alimony or separate maintenance owed by a
Participant or any other person, be transferable by operation of law in the
event of a Participant's or any other person's bankruptcy or insolvency or be
transferable to a spouse as a result of a property settlement or otherwise.
17.050 Not a Contract of Employment. The terms and conditions of this Plan
shall not be deemed to constitute a contract of employment between the Company
or any of its Affiliates and the Participant. Such employment is hereby
acknowledged to be an "at will" employment relationship that can be terminated
at any time for any reason, or no reason, with or without cause, and with or
without notice, unless expressly provided in a written employment agreement.
Nothing in this Plan shall be deemed to give a Participant the right to be
retained in the service of any the Company or an Affiliate or to interfere with
the right of the Company or an Affiliate to discipline or discharge the
Participant at any time.
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17.060 Furnishing Information. A Participant or his Beneficiary will cooperate
with the Committee or its delegate by furnishing any and all information
requested by the Committee or its delegate and take such other actions as may be
requested in order to facilitate the administration of the Plan and the payments
of benefits hereunder, including but not limited to taking such physical
examinations as the Committee or its delegate may deem necessary.
17.070 Terms. Whenever any words are used herein in the masculine, they should
be construed as though they were in the feminine in all cases where they would
so apply; and whenever any words are used herein in the singular or in the
plural, they should be construed as though they were used in the plural or the
singular, as the case may be, in all cases where they would so apply.
17.080 Captions. The captions of the articles, sections and paragraphs of this
Plan are for convenience only and do not control or affect the meaning or
construction of any of its provisions.
17.090 Governing Law. Subject to ERISA, the provisions of this Plan shall be
construed and interpreted according to the laws of the State of Wisconsin.
17.100 Notice. Any notice or filing required or permitted to be given to the
Committee under this Plan shall be sufficient if in writing and hand-delivered,
or sent by registered or certified mail, to the address below:
Vice President, Compensation
Rockwell International Corporation
777 E. Wisconsin Avenue
Milwaukee, WI 53202
Such notice will be deemed given as of the date of delivery or, if delivery is
made by mail, as of the date shown on the postmark on the receipt for
registration or certification.
Any notice or filing required or permitted to be given to a Participant under
this Plan shall be sufficient if in writing and hand-delivered, or sent by
mail, to the last known address of the Participant.
17.110 Successors. The provisions of this Plan shall bind and inure to the
benefit of the Company and its successors and assigns and the Participant and
the Participant's designated Beneficiaries.
17.120 Spouse's Interest. The interest in the benefits hereunder of a spouse of
a Participant who has predeceased the Participant will automatically pass to
the Participant and will not be transferable by such spouse in any manner,
including but not limited to such spouse's will, nor will such interest pass
under the laws of intestate succession.
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17.130 Validity. In case any provision of this Plan should be found to be
illegal or invalid for any reason, said illegality or invalidity will not affect
the remaining parts hereof, but this Plan should be construed and enforced as if
such illegal or invalid provision had never been inserted herein.
17.140 Minors, Incompetent Persons, etc. If the Committee or its delegate
determines that a benefit under this Plan is to be paid to a minor, a person
declared incompetent or to a person incapable of handling the disposition of
that person's property, the Committee or its delegate may direct payment of
such benefit to the guardian, legal representative or person having the care
and custody of such minor, incompetent or incapable person. The Committee or
its delegate may require proof of minority, incompetence, incapacity or
guardianship, as it may deem appropriate prior to distribution of the benefit.
Any payment of a benefit shall be a payment for the account of the Participant
and the Participant's Beneficiary, as the case may be, and will be a complete
discharge of any liability under the Plan for such payment amount.
17.150 Court Order. The Committee or its delegate is authorized to make any
payments directed by court order in any action in which the Plan or the
Committee has been named as a party. In addition, if a court determines that a
spouse or former spouse of a Participant has an interest in the Participant's
benefits under the Plan in connection with a property settlement or otherwise,
the Committee or its delegate, in its sole discretion, will have the right,
notwithstanding any election made by a Participant, to immediately distribute
the spouse's or former spouse's interest in the Participant's benefits under
the Plan to that spouse or former spouse.
17.160 Distribution in the Event of Taxation.
(a) In General. If, for any reason, all or any portion of a Participant's
benefits under this Planbecomes taxable to the Participant prior to
receipt, a Participant may petition the Committee or its delegate before a
Change of Control, or the Trustee of the Trust after a Change of Control,
for a distribution of that portion of his benefit that has become taxable.
Upon the grant of such a petition, which grant should not be unreasonably
withheld (and, after a Change of Control, must be granted), the Company
or, as applicable, its Affiliate will distribute to the Participant
immediately available funds in an amount equal to the taxable portion of
his benefit (which amount will not exceed a Participant's unpaid Account
Balance under the Plan). If the petition is granted, the tax liability
distribution will be made within 90 days of the date when the
Participant's petition is granted. Such a distribution will affect and
reduce the benefits to be paid under this Plan.
(b) Trust. If the Trust terminates in accordance with provisions thereof and
benefits are distributed from the Trust to a Participant in accordance
therewith, the Participant's benefits under this Plan will be reduced to
the extent of such distributions.
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17.170 Insurance. The Company, on its own behalf or on behalf of the trustee of
the Trust, and, in its discretion, may apply for and procure insurance on the
life of the Participant, in such amounts and in such forms as the Trust may
choose. The Company or the trustee of the Trust, as the case may be, will be the
sole owner and beneficiary of any such insurance. The Participant will have no
interest whatsoever in any such policy or policies, and at the request of the
Company will submit to medical examinations and supply such information and
execute such documents as may be required by the insurance company or companies
to which the Company has applied for insurance.
17.180 Legal Fees To Enforce Rights After Change of Control. The Company is
aware that upon the occurrence of a Change of Control, the Board of Directors
(which might then be composed of new members) or a shareholder of the Company
or of any successor corporation might then cause or attempt to cause the
Company, an Affiliate or such successor to refuse to comply with its
obligations under the Plan and might cause or attempt to cause the Company or
the Affiliate to institute, or may institute, litigation seeking to deny
Participants the benefits intended under the Plan. In these circumstances, the
purpose of the Plan could be frustrated. Accordingly, if, following a Change of
Control, it should appear to any Participant that the Company, an Affiliate of
the Company or any successor corporation has failed to comply with any of its
obligations under the Plan or any agreement thereunder or, if the Company, such
Affiliate or any other person takes any action to declare the Plan void or
unenforceable or institutes any litigation or other legal action designed to
deny, diminish or to recover from any Participant the benefits intended to be
provided, then the Company irrevocably authorizes such Participant to retain
counsel of his choice at the expense of the Company to represent such
Participant in connection with the initiation or defense of any litigation or
other legal action, whether by or against the Company, one or more of its
Affiliates or any director, officer, shareholder or other person affiliated
with the Company, any such Affiliate any successor thereto in any jurisdiction.
17.190 Requirement for Release. Any payment to any Participant or a
Participant's present, future or former spouse or Beneficiary in accordance
with the provisions of this Plan will, to the extent thereof, be in full
satisfaction of all claims against the Plan, the Trustee and the Company, and
the Trustee may require such Participant or Beneficiary, as a condition
precedent to such payment to execute a receipt and release to such effect.
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Appendix A
PREDECESSOR PLAN PROVISIONS
The following provisions shall apply with respect to the Participants, as
applicable, in the Allen Bradley and Rockwell Predecessor Plans.
I. Accounts.
With respect to a Participant's incentive compensation deferrals under one of
the Predecessor Plans for periods prior to the Effective Date, the value of any
such Participant's account will be determined as of the last day of a calendar
year quarter (the "Determination Date") and will be equal to the total of the
Participant's Lump Sum Payment and Installment Payment Sub-Accounts.
The value of each such Sub-Account will consist of:
(1) the balance of such Sub-Account as of the last preceding
Determination Date, plus
(2) any Deferred Compensation credited to such Sub-Account since the
last preceding Determination date, plus
(3) the sum of the three (3) monthly amounts determined by multiplying
the average daily balance of such Sub-Account during each of the
three calendar months since the last preceding Determination Date by
the Interest Rate applicable to such month, minus
(4) the amount of all Plan Benefits, if any, paid during the period
since the last preceding Determination Date.
Interest, determined as provided in (3) above, will be credited to each such
Sub-Account as of the Determination Date as of which such Sub-Account is
valued.
II. Retirement Distributions and Withdrawals of Predecessor Plan Accounts.
With respect to the provisions of the Predecessor Plans which were in
effect immediately prior to the Effective Date of this Plan as they regard
benefits payable at retirement or employment termination to a Participant,
or at the time of a Participant's death, to his Beneficiary, such
provisions shall remain in effect hereunder, but only with respect to
amounts deferred prior to
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the Effective Date of this Plan (and earnings thereon pursuant to the
preceding Section of this Appendix).
(b) No Plan Benefit shall be payable prior to a Participant in one of the
Predecessor Plans prior to his termination of employment, except that, in
the case of the Rockwell Predecessor Plan, the Committee or its delegate
may permit a Participant or, after a Participant's death, a Participant's
Beneficiary or other person or entity entitled to receive such Predecessor
Plan benefit to withdraw from his Account prior to his termination of
employment:
(1) an amount necessary to meet a financial hardship, or
(2) his entire Account balance
Either type of withdrawal shall be requested by written notice to the
Committee or its delegate and the amount of the withdrawal shall be paid
within forty-five (45) days after receipt of the written notice.
III. Funding of Rabbi Trust for Account Balances upon Change of Control.
The Company shall fund the Trust in immediately available funds for the benefit
of each Participant, surviving spouse, joint annuitant or beneficiary with
respect to Accounts under the Predecessor Plans no later than the end of the
first business day immediately following the occurrence of a Change of Control.
Such trust, as it regards such Predecessor Plan amounts, shall:
(a) be a non-qualified grantor trust which satisfies in all material respects
the requirement of Revenue Procedure 92-64, 1992-2 CB 122 (or any
successor Revenue Procedure or other applicable authority);
(b) become irrevocable upon the Change of Control;
(c) have as its trustee an independent third party (such as a bank trust
department or other similar party) that may be granted corporate trustee
powers under state law; and
(d) provide that any successor trustee shall be a bank trust department or
other party that may be granted corporate trustee powers under state law.
- 32 -
<PAGE>
Appendix B
MEASUREMENT FUNDS
Measurement Funds (and their underlying benchmark mutual funds) are listed
below in alphabetical order:
o Balanced Fund
Fidelity Puritan Fund
The objective of this balanced mutual fund is to obtain income and capital
growth consistent with reasonable risk.
This fund invests approximately 60% of its assets in stocks and other equity
securities and the remainder in investment grade bonds and other investment
grade debt securities, including medium and high quality debt securities. The
fund will invest at least 25% of total assets in fixed-income senior securities
(including debt securities and preferred stock). The fund may invest in
domestic and foreign issuers.
o Blue Chip Growth Fund
Fidelity Blue Chip Growth Fund
The objective of this growth mutual fund is to increase the value of
investments over the long term through capital growth.
The fund invests primarily in common stocks of well-known and established
companies. Normally at least 65% of the fund's total assets are invested in
blue chip companies. The fund may also invest in companies with above-average
growth potential that the fund's manager believes are positioned to become the
blue chips of the future.
o Capital & Income Fund
Fidelity Capital & Income Fund
The objective of this income mutual fund is to obtain a combination of current
income and capital growth.
- 33 -
<PAGE>
This fund invests in equity and debt securities, including defaulted
securities, with an emphasis on lower-quality debt securities. The fund may
also invest in securities of domestic and foreign issuers. This fund carries a
"short-term trading fee" which is charged to discourage short-term buying and
selling of fund shares. If shares are sold after being held for less than 365
days, the fund will deduct a short-term trading fee equal to 1.5% of the value
of the shares sold.
o Diversified International Fund
Fidelity Diversified International Fund
The objective of this growth mutual fund, which invests overseas, is to
increase the value of investments over the long term through capital growth.
This fund normally invests at least 65% of total assets in foreign securities.
In selecting securities the fund employs computer-aided quantitative analysis
supported by fundamental research. This fund will carry a "short-term trading
fee" which will be charged to discourage short-term buying and selling of fund
shares. If shares are sold after being held for less than 30 days, the fund
will deduct a short-term trading fee from your account equal to 1.0% of the
value of the shares sold.
o Equity Income Fund
Fidelity Equity Income Fund
The objective of this growth and income mutual fund is to obtain reasonable
income to while considering the potential for capital appreciation. It seeks to
provide a yield that exceeds the yield of the securities in the Standard &
Poors 500 Index.
The fund normally invests at least 65% of total assets in income-producing
equity securities, which tend to lead to investments in large cap stocks. The
fund potentially invests in other types of equity and debt securities,
including lower-quality debt securities. The fund may invest in securities of
domestic and foreign issuers.
- 34 -
<PAGE>
o Fidelity Fund
Fidelity Fund
This growth and income mutual fund strives to obtain long-term capital growth.
The fund invests primarily in common stocks. It potentially invests a portion
of its assets in bonds, including lower-quality debt securities. The fund
invests in domestic and foreign issuers.
o Investment Grade Bond Fund
Fidelity Investment Grade Bond Fund
The objective of this income mutual fund is to obtain high current income.
This fund normally invests in U.S. dollar-denominated investment-grade bonds
(those of medium and high quality). The fund is managed to have similar overall
interest rate risk to the Lehman Brothers Aggregate Bond Index. Assets are
allocated across different market sectors and maturities.
o Market Index Fund
Spartan 500 Market Index Fund
This mutual fund seeks to obtain investment results that correspond to the
total return (i.e. the combination of capital changes and income) of common
stocks publicly traded in the United States, as represented by the Standard &
Poors 500 Index (S&P 500), while keeping transaction costs and other expenses
low.
The fund normally invests at least 80% of its assets in common stock included
in the S&P 500. The fund may lend securities to earn income for the fund. This
fund carries a "short-term trading fee" which is charged to discourage
short-term buying and selling of fund shares. If shares are sold after being
held for less than 90 days, the fund will deduct a short-term trading fee from
your account equal to 0.50% of the value of the shares sold.
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<PAGE>
o Mid-Cap Stock Fund
Fidelity Mid-Cap Stock Fund
The objective of this growth mutual fund is to increase the value of
investments over the long term through capital growth.
The fund normally invests at least 65% of total assets in common stocks of
companies with medium market capitalizations (those with market capitalizations
similar to companies in the S&P MidCap 400). The fund may invest in companies
with smaller or larger market capitalizations. The fund may also invest in
domestic and foreign issuers.
o Small Cap Fund
Fidelity Small Cap Selector
This mutual fund seeks to obtain capital appreciation.
This fund normally invests at least 65% of total assets in securities of
companies with small market capitalizations (those with market capitalizations
similar to companies in the Russell 2000(R) Index). The fund will primarily
invest in common stock. The fund may also invest in domestic and foreign
issuers. This fund carries a "short-term trading fee" which is charged to
discourage short-term buying and selling of fund shares. If shares are sold
after being held for less than 90 days, the fund will deduct a short-term
trading fee from your account equal to 1.5% of the value of the shares sold.
o US Govt. Money Market Fund
Spartan US Government Money Market Fund
The objective of this fund is to obtain as high a level of current income as is
consistent with preservation of capital and liquidity.
This fund invests in U.S. Government securities and repurchase agreements for
those securities, and enters reverse repurchase agreements. The fund invests in
compliance with industry-standard requirements for money market funds for the
quality, maturity and diversification of investment.
- 36 -
Exhibit 4-e
ROCKWELL INTERNATIONAL CORPORATION
DEFERRED COMPENSATION PLAN
TRUST AGREEMENT
This Agreement made this ____ day of ________________, 2000 and between
Rockwell International Corporation ("Company") and Wells Fargo Bank, N.A.
("Trustee");
(a) WHEREAS, Company has adopted the Rockwell International Corporation
Deferred Compensation Plan;
(b) WHEREAS, Company has incurred or expects to incur liability under
the terms of such Plan with respect to the individuals participating in such
Plan;
(c) WHEREAS, Company wishes to establish a trust (hereinafter called
"Trust") and to contribute to the Trust assets that shall be held therein,
subject to the claims of Company's creditors in the event of Company's
Insolvency, as herein defined, until paid to Plan participants and their
beneficiaries in such manner and at such times as specified in the Plan;
(d) WHEREAS, it is the intention of the parties that this Trust shall
constitute an unfunded arrangement and shall not affect the status of the Plan
as an unfunded plan maintained for the purpose of providing deferred
compensation for a select group of management or highly compensated employees
for purposes of Title I of the Employee Retirement Income Security Act of 1974;
(e) WHEREAS, it is the intention of Company to make contribution to the
Trust to provide itself with a source of funds to assist it in the meeting of
its liabilities under the Plan;
NOW, THEREFORE, the parties do hereby establish the Trust and agree
that the Trust shall be comprised, held and disposed of as follows:
Section 1. Establishment of Trust.
(a) Company hereby deposits with Trustee in trust an amount to be
mutually agreed upon, which shall become the principal of the Trust to be held,
administered and disposed of by Trustee as provided in this Trust Agreement.
(b) The Trust hereby established shall be irrevocable.
<PAGE>
(c) The Trust is intended to be a grantor trust, of which Company is
the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1,
subtitle A of the Internal Revenue Code of 1986, as amended, and shall be
construed accordingly.
(d) The principal of the Trust, and any earnings thereon, shall be held
separate and apart from other funds of Company and shall be used exclusively for
the uses and purposes of Plan participants and general creditors as herein set
forth. Plan participants and their beneficiaries shall have no preferred claim
on, or any beneficial ownership interest in, any assets of the Trust. Any rights
created under the Plan and this Trust Agreement shall be mere unsecured
contractual rights of Plan participants and their beneficiaries against Company.
Any assets held by the Trust will be subject to the claims of Company's general
creditors under federal and state law in the event of Insolvency, as defined in
Section 3(a) herein.
(e) Company, in its sole discretion, may at any time, or from time to
time, make additional deposits of cash or other property, acceptable to the
Trustee, in trust with Trustee to augment the principal to be held, administered
and disposed of by Trustee as provided in this Trust Agreement. Neither Trustee
nor any Plan participant or beneficiary shall have any right to compel such
additional deposits.
(f) Upon a Change of Control, Company shall, as soon as possible, but
in no event longer than thirty (30) days following the Change of Control, as
defined herein, make an irrevocable contribution to the Trust in an amount that
is sufficient to pay each Plan participant or beneficiary the benefits to which
Plan participants or their beneficiaries would be entitled pursuant to the terms
of the Plan as of the date on which the Change of Control occurred.
Section 2. Payments to Plan Participants and Their Beneficiaries.
(a) Company shall deliver to Trustee a schedule (the "Payment
Schedule") that indicates the amounts payable in respect of each Plan
participant (and his or her beneficiaries), that provides a formula or other
instructions acceptable to Trustee for determining the amounts so payable, the
form in which such amount is to be paid (as provided for or available under the
Plan), and the time of commencement for payment of such amounts. Except as
otherwise provided herein, Trustee shall make payments to the Plan participants
and their beneficiaries in accordance with such Payment Schedule. The Trustee
shall make provision for the reporting and withholding of any federal, state or
local taxes that may be required to be withheld with respect to the payment of
benefits pursuant to the terms of the Plan and shall pay amounts withheld to the
appropriate taxing authorities or determine that such amounts have been
reported, withheld and paid by Company.
2
<PAGE>
(b) The entitlement of a Plan participant or his or her beneficiaries
to benefits under the Plan shall be determined by Company or such party as it
shall designate under the Plan, and any claim for such benefits shall be
considered and reviewed under the procedures set out in the Plan.
(c) Company may make payment of benefits directly to Plan participants
or their beneficiaries as they become due under the terms of the Plan. Company
shall notify Trustee of its decision to make payment of benefits directly prior
to the time amounts are payable to participants or their beneficiaries. In
addition, if the principal of the Trust, and any earnings thereon, are not
sufficient to make payments of benefits in accordance with the terms of the
Plan, Company shall make the balance of each such payment as it falls due.
Trustee shall notify Company where principal and earnings are not sufficient.
Section 3. Trustee Responsibility Regarding Payments to Trust
Beneficiary When Company Is Insolvent.
(a) Trustee shall cease payment of benefits to Plan participants and
their beneficiaries if the Company is Insolvent. Company shall be considered
"Insolvent" for purposes of this Trust Agreement if (i) Company is unable to pay
its debts as they become due, or (ii) Company is subject to a pending proceeding
as a debtor under the United States Bankruptcy Code.
(b) At all times during the continuance of this Trust, as provided in
Section 1(d) hereof, the principal and income of the Trust shall be subject to
claims of general creditors of Company under federal and state law as set forth
below.
(i) The Board of Directors and the Chief Executive Officer of
Company shall have the duty to inform Trustee in writing of Company's
Insolvency. If a person claiming to be a creditor of Company alleges in
writing to Trustee that Company has become Insolvent, Trustee shall
determine whether Company is Insolvent and, pending such determination,
Trustee shall discontinue payment of benefits to Plan participants or their
beneficiaries.
(ii) Unless Trustee has actual knowledge of Company's Insolvency,
or has received notice from Company or a person claiming to be a creditor
alleging that Company is Insolvent, Trustee shall have no duty to inquire
whether Company is Insolvent. Trustee may in all events rely on such
evidence concerning Company's solvency as may be furnished to Trustee and
that provides Trustee with a reasonable basis for making a determination
concerning Company's solvency.
3
<PAGE>
(iii) If at any time Trustee has determined that Company is
Insolvent, Trustee shall discontinue payments to Plan participants or their
beneficiaries and shall hold the assets of the Trust for the benefit of
Company's general creditors. Nothing in this Trust Agreement shall in any
way diminish any rights of Plan participants or their beneficiaries to
pursue their rights as general creditors of Company with respect to benefits
due under the Plan or otherwise.
(iv) Trustee shall resume the payment of benefits to Plan
participants or their beneficiaries in accordance with Section 2 of this
Trust Agreement only after Trustee has determined that Company is not
Insolvent (or is no longer Insolvent).
(c) Provided that there are sufficient assets, if Trustee discontinues
the payment of benefits from the Trust pursuant to Section 3(b) hereof and
subsequently resumes such payments, the first payment following such
discontinuance shall include the aggregate amount of all payments due to Plan
participants or their beneficiaries under the terms of the Plan for the period
of such discontinuance, less the aggregate amount of any payments made to Plan
participants or their beneficiaries by Company in lieu of the payments provided
for hereunder during any such period of discontinuance.
Section 4. Payments to Company. Except as provided in Section 3 hereof,
after the Trust has become irrevocable, Company shall have no right or power to
direct Trustee to return to Company or divert to others any of the Trust assets
before all payments of benefits have been made to Plan participants and their
beneficiaries pursuant to the terms of the Plan.
Section 5. Investment Authority. In the administration of the Trust,
the Trustee shall have the following powers, all of which shall be exercised
only in a fiduciary capacity:
(a) To hold and control the assets in the Trust;
(b) To sell, exchange, assign, transfer, and convey any security or
property held in the Trust, at public or private sale, at such time and price
and upon such terms and conditions (including credit) as directed by the
Investment Manager;
(c) To invest and reinvest assets of the Trust (including accumulated
income) as directed by the Investment Manager;
4
<PAGE>
(d) To notify the Company with respect to any vote on any stock or
securities held in the Trust, as all voting rights with respect to Trust assets
will be exercised by Company;
(e) To consent to and participate in any plan for the liquidation,
reorganization, consolidation, or merger of any corporation, any security of
which is held in the Trust;
(f) To sell or exercise any "rights" issued on any securities held in
the Trust;
(g) To cause all or any part of the assets of the Trust to be held in
the name of the Trustee (which in such instance need not disclose its fiduciary
capacity) or, as permitted by law, in the name of any nominee, and to acquire
for the Trust any investment in bearer form, but the books and records of the
Trust shall at all times show that all such investments are part of the Trust
and the Trustee shall hold evidence of title to all such investments;
(h) To make such distributions to Participants (as such term is defined
in the Plan) in accordance with the provisions of this Trust Agreement; and
(i) From time to time the Company may appoint one or more investment
managers who shall have investment management and control over all or a portion
of the assets of the Trust ("Investment Managers"). The Company shall notify the
Trustee of the appointment of the Investment Manager. In the event more than one
Investment Manager is appointed, the Company shall determine which assets shall
be subject to management and control by each Investment Manager and shall also
determine the proportion in which funds withdrawn or disbursed shall be charged
against the assets subject to each Investment Manager's management and control.
As shall be provided in any contract between an Investment Manager and the
Company, such Investment Manager shall hold a revocable proxy with respect to
all securities which are held under the management of such Investment Manager
pursuant to such contract and such Investment Manager shall report the voting of
all securities subject to such proxy on an annual basis to the Company. In the
event that the Company does not appoint an Investment Manager as provided in
this Section 5(i), references in this Trust Agreement to "Investment Manager"
shall mean the Company.
Section 6. Disposition of Income. During the term of this Trust, all
income received by the Trust, net of expenses and taxes, shall be accumulated
and reinvested.
5
<PAGE>
Section 7. Accounting by Trustee. Trustee shall keep accurate and
detailed records of all investments, receipts, disbursements, and all other
transactions required to be made, including such specific records as shall be
agreed upon in writing between Company and Trustee. Within sixty (60) days
following the close of each calendar year and within sixty (60) days after the
removal or resignation of Trustee, Trustee shall deliver to Company a written
account of its administration of the Trust during such year or during the period
from the close of the last preceding year to the date of such removal or
resignation, setting forth all investments, receipts, disbursements and other
transactions effected by it, including a description of all securities and
investments purchased and sold with the cost or net proceeds of such purchases
or sales (accrued interest paid or receivable being shown separately), and
showing all cash, securities and other property held in the Trust at the end of
such year or as of the date of such removal or resignation, as the case may be.
Section 8. Responsibility of Trustee.
(a) Trustee shall act with the care, skill, prudence and diligence
under the circumstances then prevailing that a prudent person acting in like
capacity and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims, provided, however, that
Trustee shall incur no liability to any person for any action taken pursuant to
a direction, request or approval given by Company which is contemplated by, and
in conformity with, the terms of the Plan or this Trust and is given in writing
by Company. In the event of a dispute between Company and a party, Trustee may
apply to a court of competent jurisdiction to resolve the dispute.
(b) If Trustee undertakes or defends any litigation arising in
connection with this Trust, Company agrees to indemnify Trustee against
Trustee's costs, expenses and liabilities (including, without limitation,
attorneys' fees and expenses) relating thereto and to be primarily liable for
such payments. If Company does not pay such costs, expenses and liabilities in a
reasonably timely manner, Trustee may obtain payment from the Trust.
(c) Trustee may consult with legal counsel (who may also be counsel for
Company generally) with respect to any of its duties or obligations hereunder.
(d) Trustee may hire agents, accountants, actuaries, investment
advisors, financial consultants or other professionals to assist it in
performing any of its duties or obligations hereunder.
(e) Trustee shall have, without exclusion, all powers conferred on
Trustees by applicable law, unless expressly provided otherwise herein,
provided,
6
<PAGE>
however, that if an insurance policy is held as an asset of the Trust,
Trustee shall have no power to name a beneficiary of the policy other than the
Trust, to assign the policy (as distinct from conversion of the policy to a
different form) other than to a successor Trustee, or to loan to any person the
proceeds of any borrowing against such policy.
(f) Notwithstanding any powers granted to Trustee pursuant to this
Trust Agreement or to applicable law, Trustee shall not have any power that
could give this Trust the objective of carrying on a business and dividing the
gains therefrom, within the meaning of section 301.7701-2 of the Procedure and
Administrative Regulations promulgated pursuant to the Internal Revenue Code.
Section 9. Compensation and Expenses of Trustee. Company shall pay all
administrative and Trustee's fees and expenses. If not so paid, the fees and
expenses shall be paid from the Trust.
Section 10. Resignation and Removal of Trustee.
(a) Trustee may resign at any time by written notice to Company, which
shall be effective thirty (30) days after receipt of such notice unless Company
and Trustee agree otherwise.
(b) Trustee may be removed by Company on thirty (30) days notice or
upon shorter notice accepted by Trustee.
(c) Upon a Change of Control, as defined herein, Trustee may not be
removed by Company for one (1) year.
(d) If Trustee resigns within one (1) year after a Change of Control,
as defined herein, Company shall apply to a court of competent jurisdiction for
the appointment of a successor Trustee or for instructions.
(e) If Trustee resigns or is removed within one (1) year of a Change of
Control, as defined herein, Trustee shall select a successor Trustee in
accordance with the provisions of Section 11(b) hereof prior to the effective
date of Trustee's resignation or removal.
(f) Upon resignation or removal of Trustee and appointment of a
successor Trustee, all assets shall subsequently be transferred to the successor
Trustee. The transfer shall be completed within sixty (60) days after receipt of
notice of resignation, removal or transfer, unless Company extends the time
limit.
7
<PAGE>
(g) If Trustee resigns or is removed, a successor shall be appointed,
in accordance with Section 11 hereof, by the effective date of resignation or
removal under paragraphs (a) or (b) of this section. If no such appointment has
been made, Trustee may apply to a court of competent jurisdiction for
appointment of a successor or for instructions. All expenses of Trustee in
connection with the proceeding shall be allowed as administrative expenses of
the Trust.
Section 11. Appointment of Successor.
(a) If Trustee resigns or is removed in accordance with Section 10(a)
or (b) hereof, Company may appoint any third party, such as a bank trust
department or other party that may be granted corporate trustee powers under
state law, as a successor to replace Trustee upon resignation or removal. The
appointment shall be effective when accepted in writing by the new Trustee, who
shall have all of the rights and powers of the former Trustee, including
ownership rights in the Trust assets. The former Trustee shall execute any
instrument necessary or reasonably requested by Company or the successor Trustee
to evidence the transfer.
(b) If Trustee resigns or is removed pursuant to the provisions of
Section 10(e) hereof and selects a successor Trustee, Trustee may appoint any
third party such as a bank trust department or other party that may be granted
corporate trustee powers under state law. The appointment of a successor Trustee
shall be effective when accepted in writing by the new Trustee. The new Trustee
shall have all the rights and powers of the former Trustee, including ownership
rights in Trust assets. The former Trustee shall execute any instrument
necessary or reasonably requested by the successor Trustee to evidence the
transfer.
(c) The successor Trustee need not examine the records and acts of any
prior Trustee and may retain or dispose of existing Trust assets, subject to
Sections 7 and 8 hereof. The successor Trustee shall not be responsible for and
Company shall indemnify and defend the successor Trustee from any claim or
liability resulting from any action or inaction of any prior Trustee or from any
other past event, or any condition existing at the time it becomes successor
Trustee.
Section 12. Amendment or Termination.
(a) This Trust Agreement may be amended by a written instrument
executed by Trustee and Company. Notwithstanding the foregoing, no such
amendment shall conflict with the terms of the Plan or shall make the Trust
revocable after it has become irrevocable in accordance with Section 1(b)
hereof.
8
<PAGE>
(b) The Trust shall not terminate until the date on which Plan
participants and their beneficiaries are no longer entitled to benefits pursuant
to the terms of the Plan. Upon termination of the Trust any assets remaining in
the Trust shall be returned to Company.
(c) Upon written approval of participants or beneficiaries entitled to
payment of benefits pursuant to the terms of the Plan, Company may terminate
this Trust prior to the time all benefit payments under the Plan have been made.
All assets in the Trust at termination shall be returned to Company.
(d) This Trust Agreement may not be amended by Company for two (2)
years following a Change of Control, as defined herein.
Section 13. Miscellaneous.
(a) Any provision of this Trust Agreement prohibited by law shall be
ineffective to the extent of any such prohibition, without invalidating the
remaining provisions hereof.
(b) Benefits payable to Plan participants and their beneficiaries under
this Trust Agreement may not be anticipated, assigned (either at law or in
equity), alienated, pledged, encumbered or subjected to attachment, garnishment,
levy, execution or other legal or equitable process.
(c) This Trust Agreement shall be governed by and construed in
accordance with the laws of State of California.
(d) For purposes of this Trust, Change of Control shall mean any of the
following:
(1) The acquisition by any individual, entity or group (within the
meaning of section 13(d)(3) or section 14(d)(2) of the Exchange
Act) (a "Person") of beneficial ownership (within the meaning of
Ru le 13d-3 promulgated under the Exchange Act) of twenty
percent (20%) or more of either
(a) the then outstanding shares of common stock of the Company
(the "Outstanding Company Common Stock"), or
(b) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the
election of directors (the "Outstanding Company Voting
Securities"); provided, however, that for purposes of this
subsection (a), the following acquisitions shall not
constitute a Change of Control:
9
<PAGE>
(i) any acquisition directly from the Company,
(ii) any acquisition by the Company,
(iii) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any
corporation controlled by the Company, or
(iv) any acquisition pursuant to a transaction which complies
with paragraphs (1), (2) and (3) of subsection (c) of this
Section; or
(2) Individuals who, as of September 2, 1998, constituted the Board
of Directors (the "Incumbent Board") cease for any reason to
constitute at least a majority of the Board; provided, however,
that any individual becoming a director subsequent to that date
whose election, or nomination for election by the Company's
shareowners, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result
of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person
other than the Board of Directors; or
(3) Consummation of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the
assets of the Company or the acquisition of assets of another
entity (a "Company Transaction"), in each case, unless,
following such Company Transaction:
(a) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Company Transaction beneficially
own, directly or indirectly, more than sixty percent (60%) of,
respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting
from such Company Transaction (including, without limitation,
10
<PAGE>
a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company's assets
either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership,
immediately prior to such Company Transaction of the
Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be,
(b) no Person (excluding any employee benefit plan or related
trust sponsored by the Company or by such corporation
resulting from such Company Transaction) beneficially owns,
directly or indirectly, twenty percent (20%) or more of,
respectively, the then outstanding shares of common stock of
the corporation resulting from such Company Transaction or the
combined voting power of the then outstanding voting
securities of such corporation except to the extent that such
ownership existed prior to the Company Transaction, and
(c) at least a majority of the members of the board of directors
of the corporation resulting from such Company Transaction
were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the
Board of Directors providing for such Company Transaction; or
(4) Approval by the Company's shareowners of a complete liquidation
or dissolution of the Company.
Section 14. Effective Date.
The effective date of this Trust Agreement shall be ___________ , 2000.
Rockwell International Corporation Wells Fargo Bank, N.A.,
Trustee
By:________________________ By:______________________________
Its:_______________________ Its:_____________________________
11
Exhibit 5
Letterhead of William J. Calisle, Jr. Esq.
Rockwell International Corporation
777 East Wisconsin Avenue
Suite 1400
Milwaukee, WI 53202
April 14, 2000
Rockwell International Corporation
777 East Wisconsin Avenue
Suite 1400
Milwaukee, WI 53202
Ladies and Gentlemen:
I am Senior Vice President, General Counsel and Secretary of Rockwell
International Corporation, a Delaware corporation (the "Company"), and am
delivering this opinion in connection with the filing by the Company of a
Registration Statement on Form S-8 (the "Registration Statement") registering
under the Securities Act of 1933, as amended, $25,000,000 of the Company's
deferred compensation obligations (the "Deferred Compensation Obligations")
payable pursuant to the Rockwell International Corporation Deferred Compensation
Plan (the "Plan").
I have examined such documents, records and matters of law as I have deemed
necessary as a basis for the opinion hereinafter expressed. On the basis of the
foregoing, and having regard for legal considerations that I deem relevant, I am
of the opinion that the Deferred Compensation Obligations will be, when created
in accordance with the terms of the Plan, valid and binding obligations of the
Company, enforceable in accordance with their terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the enforcement of
creditors' rights in general and general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).
I hereby consent to the filing of this opinion as an exhibit to the Registration
Statement.
I express no opinion herein as to any laws other than the General Corporation
Law of the State of Delaware (as well as the applicable provisions of the
Delaware Constitution and applicable reported judicial decisions) and the
Federal laws of the United States.
Very truly yours,
/s/ William J. Calise, Jr.
Exhibit 24
POWER OF ATTORNEY
I, the undersigned Director and/or Officer of Rockwell International
Corporation, a Delaware corporation, hereby constitute WILLIAM J. CALISE, JR.,
EDWARD T. MOEN, II and PETER R. KOLYER, and each of them singly, my true and
lawful attorneys with full power to them and each of them to sign for me, and
in my name and in the capacity or capacities indicated below, a Registration
Statement and any and all amendments (including post-effective amendments) and
supplements thereto, for the purpose of registering under the Securities Act of
1933, as amended, the deferred compensation obligations to be issued pursuant
to the Rockwell International Corporation Deferred Compensation Plan.
Signature Title Date
/s/ Don H. Davis, Jr. Chairman of the Board and Chief April 7, 2000
- ------------------------ Executive Officer (principal
Don H. Davis, Jr. executive officer)
/s/ Betty C. Alewine Director April 12, 2000
- ------------------------
Betty C. Alewine
/s/ George L. Argyros Director April 7, 2000
- ------------------------
George L. Argyros
/s/ Donald R. Beall Director April 7, 2000
- ------------------------
Donald R. Beall
/s/ William H. Gray, III Director April 7, 2000
- ------------------------
William H. Gray, III
<PAGE>
/s/ William T. McCormick, Jr. Director April 7, 2000
- -------------------------
William T. McCormick, Jr.
/s/ John D. Nichols Director April 7, 2000
- -------------------------
John D. Nichols
/s/ Bruce M. Rockwell Director April 7, 2000
- -------------------------
Bruce M. Rockwell
/s/ Robert B. Shapiro Director April 7, 2000
- -------------------------
Robert B. Shapiro
/s/ Joseph F. Toot, Jr. Director April 7, 2000
- -------------------------
Joseph F. Toot, Jr.
/s/ W. Michael Barnes Senior Vice President, April 7, 2000
- ------------------------- Finance & Planning and
W. Michael Barnes Chief Financial Officer
(principal financial officer)
/s/ William E. Sanders Vice President and April 10, 2000
- ------------------------- Controller (principal
William E. Sanders accounting officer)
2
