This excerpt taken from the OMI 10-Q filed Nov 6, 2008.
Notwithstanding any other provision of the Plan, if the benefit payable to a Participant, surviving Spouse or Child would constitute a parachute payment (as defined in section 280G of the Internal Revenue Code of 1986, as amended), the amount payable under the Plan and all such other payments shall be reduced to the largest amount that will result in no portion of any such payments being subject to the excise tax imposed by section 4999 of the Internal Revenue Code of 1986, as amended. The determination of any reduction pursuant to this Section shall be made by the Committee in good faith before any such payments are made to the Participant, surviving Spouse or Child.
The Company has only a contractual obligation to make payments of the benefits described in the Plan. All benefits are to be satisfied solely out of the general corporate assets of the Company which shall remain subject to the claims of its creditors. No assets of the Company will be segregated or committed to the satisfaction of its obligations to any Participant, surviving Spouse or Child under this Plan. If the Company, in its sole discretion, elects to purchase life insurance on the life of a Participant in connection with the Plan, the Participant must submit to a physical examination, if required by the insurer, and otherwise cooperate in the issuance of such policy or his or her rights under the Plan will be forfeited.
The benefits, if any, provided for a Participant, his or her surviving Spouse and his or her Children under the Plan are in addition to any other benefits available to such Participant under any other plan or program of the Company for its employees (other than an Executive Salary Continuation Agreement), and, except as may otherwise be expressly provided for, the Plan shall supplement and shall not supersede, modify or amend any other plan or program of the Company in which a Participant is participating.
The benefit, if any payable to a Participant, his or her surviving Spouse and his or her Children under the Plan shall be reduced by the amounts which the Company, in its discretion, determines shall be withheld under applicable federal, state and local income taxes and for any applicable employment-related taxes.
No right or benefit under the Plan shall be subject to anticipation, alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void. No right or benefit hereunder shall in any manner be liable for or subject to the debts, contracts, liabilities, or torts of the person entitled to such benefit. If any Participant, surviving Spouse or Child under
the Plan should become bankrupt or attempt to anticipate, alienate, sell, assign, pledge, encumber or charge any right to a benefit hereunder, then such right or benefit, in the discretion of the Committee, shall cease and terminate, and, in such event, the Committee may hold or apply the same or any part thereof for the benefit of such Participant, his or her surviving Spouse, Children, or other dependents, or any of them, in such manner and in such portion as the Committee may deem proper.
The Plan does not in any way limit the right of the Company or an Affiliate at any time and for any reason to terminate the Participants employment or such Participants status as an officer of the Company or an affiliate. In no event shall the Plan by its terms or implications constitute an employment contract of any nature whatsoever between the Company or an Affiliate and a Participant.
The Plan shall be binding upon the Company and its successors and assigns; subject to the powers set forth in Article VII, and upon a Participant, his or her surviving Spouse and Children and either of their assigns, heirs, executors and administrators.
Headings are given for ease of reference and must be disregarded in interpreting the Plan. Masculine pronouns wherever used shall include feminine pronouns and the use of the singular shall include the plural.