This excerpt taken from the MXM DEF 14A filed Apr 30, 2007.
Deferred Compensation Plans
The following describes the plans and programs of the Company providing for the deferral of compensation on a basis that is not tax-qualified under which any of the named executive officers participate. Each of these plans and programs is an unfunded general obligation of the Company.
Capital Accumulation Plan
The named executive officers participate (or participated) in the Company's Capital Accumulation Plan. On December 31 of each year prior to January 1, 2006, the Company credited each participant's account with an amount equal to 15% of the participant's annual salary. The Compensation Policy Committee reduced this percentage to 2% effective on January 1, 2006. Earnings are credited on participant accounts as of each December 31 and upon the employee's termination of employment (based on the prime rate of interest in effect at the end of the prior month). A participant becomes vested at the rate of 10% per year from the date plan participation commences. Vested balances are payable on the earlier of (a) termination of employment for any reason, or (b) December 31, 2008 (and every tenth December 31 thereafter). Participants may elect to receive their vested balances in ten annual installments rather than a lump sum. None of the named executive officers has made such an election.
Supplemental Savings Plan
The Internal Revenue Code limits the aggregate amount that may be contributed to the Savings Plan by an individual and the Company. This limit was $49,000 for 2006. The Supplemental Savings Plan provides for "automatic" benefits to the extent that employees are unable to receive amounts under the Savings Plan due to this limit. Each December 31, employees are credited with the amounts they would have received under the Savings Plan but for the limits described above. In addition, earnings are credited on participant accounts as of each December 31 and upon the employee's termination of employment (based on the prime rate of interest in effect at the end of the prior month). The employee's account balance under the Supplemental Savings Plan is required to be distributed following the employee's termination for any reason.
Deferred Compensation Program
The Company's executive officers are generally eligible to participate in a deferred compensation program. Under this program, executive officers may defer up to 30% of salary and up to 30% of any bonus otherwise payable to such executive officer in any calendar year. The designated percentage of deferred compensation is credited to a book account as of the date such compensation would have been paid and is deemed "invested" in an account bearing interest calculated using one-twelfth of the sum of the prime rate plus 2% on the first day of each month. Deferred compensation, including all earnings credited to the book account, is paid in cash to the executive or beneficiary as soon as practicable following the date the executive ceases for any reason to be an employee of the Company, either in a lump sum or in a specified number of annual installments, not to exceed ten, at the executive's election. None of the Company's executive officers deferred any compensation under this program during 2006.