PACCAR Inc
DEFERRED INCENTIVE COMPENSATION PLAN
SECTION 1. ESTABLISHMENT AND PURPOSE.
The Plan was adopted by the Company on November 25, 1991, to provide certain employees with an opportunity to defer payment of their bonuses under the Company's year-end Incentive Compensation Program. The Plan is also intended to establish a method of paying bonus awards that will assist the Company in attracting and retaining employees of outstanding achievement and ability.
SECTION 2. DEFINITIONS.
(a) "Account" means the bookkeeping account established pursuant to Section 6 on behalf of an Executive who elects to participate in the Plan.
(b) "Beneficiary" means the person or persons designated by the Executive or by the Plan to receive payment of the Executive's Income Account in the event of the death of the Executive.
(c) "Board" means the Board of Directors of the Company, as constituted from time to time.
(d) "Bonus Award" means the amount of compensation awarded by the Company to an Executive as a bonus under the Company's year-end Incentive Compensation Program.
(e) "Cause" means (i) an act of embezzlement, fraud or theft, (ii) the deliberate disregard of the rules of the Company or a Subsidiary, (iii) any unauthorized disclosure of any of the secrets or confidential information of the Company or a Subsidiary, (iv) any conduct which constitutes unfair competition with the Company or a Subsidiary or (v) inducing any customers of the Company or a Subsidiary to breach any contracts with the Company or a Subsidiary.
(f) "Company" means PACCAR Inc, a Delaware corporation.
(g) "Committee" means the Compensation Committee of the Board.
(h) "Executive" means an employee of the Company or a Subsidiary who is eligible to participate in the Plan under Section 4.
(i) "Incentive Compensation Program" refers to the incentive plan for executives of PACCAR Inc and its eligible subsidiaries who are in grades 41 and above.
(j) "Permanent and Total Disability" is as defined under PACCAR's Long Term Disability Plan.
(k) "Plan" means this PACCAR Inc Deferred Incentive Compensation Plan, as it may be amended from time to time.
(l) "Service" means employment with the Company or any Subsidiary. A transfer among the Company and its Subsidiaries shall not be considered a termination of Service.
(m) "Subsidiary" means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing 50 percent or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.
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