NEW YORK
|
13-5593032
|
|
State or other jurisdiction of incorporation or organization
|
I.R.S. Employer Identification No.
|
|
111 River Street, Hoboken, NJ
|
07030
|
|
Address of principal executive offices
|
Zip Code
|
|
(201) 748-6000
|
||
Registrant’s telephone number including area code
|
||
Securities registered pursuant to Section 12(b) of the Act: Title of each class
|
Name of each exchange on which registered
|
|
Class A Common Stock, par value $1.00 per share
|
New York Stock Exchange
|
|
Class B Common Stock, par value $1.00 per share
|
New York Stock Exchange
|
|
Securities registered pursuant to Section 12(g) of the Act:
|
||
None
|
PART I
|
PAGE
|
|
ITEM 1.
|
Business
|
4
|
ITEM 1A.
|
Risk Factors
|
4-8
|
ITEM 1B.
|
Unresolved Staff Comments
|
8
|
ITEM 2.
|
Properties
|
9
|
ITEM 3.
|
Legal Proceedings
|
9
|
ITEM 4
|
[Removed and Reserved]
|
10
|
PART II
|
|
|
ITEM 5.
|
Market for the Company’s Common Equity and Related Stockholder Matters and
Issuer Purchases of Equity Securities
|
10
|
ITEM 6.
|
Selected Financial Data
|
10
|
ITEM 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
10
|
ITEM 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
10
|
ITEM 8.
|
Financial Statements and Supplemental Data
|
10
|
ITEM 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
79
|
ITEM 9A.
|
Controls and Procedures
|
79
|
ITEM 9B.
|
Other Information
|
79
|
PART III
|
||
ITEM 10.
|
Directors and Executive Officers of the Registrant
|
80-81
|
ITEM 11.
|
Executive Compensation
|
81
|
ITEM 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
81
|
ITEM 13.
|
Certain Relationships and Related Transactions
|
81
|
ITEM 14.
|
Principal Accounting Fees and Services
|
81
|
81
|
||
PART IV
|
||
ITEM 15.
|
Exhibits, Financial Statement Schedules and Reports on Form 8-K
|
82-84
|
SIGNATURES
|
|
Item 1.
|
Business
|
Item 1A.
|
Risk Factors
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Location
|
Purpose
|
Owned or Leased
|
Approx. Sq. Ft.
|
United States:
|
|||
New Jersey
|
Corporate Headquarters
|
Leased
|
386,000
|
New Jersey
|
Warehouse
|
Leased
|
380,000
|
New Jersey
|
Office & Warehouse
|
Leased
|
185,000
|
Indiana
|
Office
|
Leased
|
123,000
|
Massachusetts
|
Office
|
Leased
|
43,000
|
California
|
Office
|
Leased
|
38,000
|
Iowa
|
Office & Warehouse
|
Owned
|
27,000
|
International:
|
|||
Australia
|
Office & Warehouse
|
Leased
|
93,000
|
Office
|
Leased
|
33,000
|
|
Office
|
Leased
|
26,000
|
|
Canada
|
Office & Warehouse
|
Leased
|
87,000
|
Office
|
Leased
|
20,000
|
|
England
|
Warehouse
|
Leased
|
143,000
|
Warehouse
|
Leased
|
85,000
|
|
Office
|
Leased
|
63,000
|
|
Office
|
Leased
|
17,000
|
|
Office
|
Owned
|
49,000
|
|
Office
|
Owned
|
21,000
|
|
Germany
|
Office
|
Leased
|
29,000
|
Office
|
Leased
|
19,000
|
|
Office
|
Owned
|
58,000
|
|
India
|
Office & Warehouse
|
Leased
|
16,000
|
Singapore
|
Office & Warehouse
|
Leased
|
67,000
|
Office
|
Leased
|
15,000
|
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
[Removed and Reserved]
|
Item 5.
|
Market for the Company’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities
|
Item 6.
|
Selected Financial Data
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Item 7A.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 8.
|
Financial Statements and Supplemental Data
|
Page(s)
|
|
Management’s Discussion and Analysis of Business, Financial Condition and Results of Operations
|
12-42
|
Results by Quarter
|
43
|
Quarterly Share Prices, Dividends, and Related Stockholder Matters and Issuer Purchases of Equity Securities
|
44
|
Selected Financial Data
|
45
|
Management’s Report on Internal Control over Financial Reporting
|
46
|
Reports of Independent Registered Public Accounting Firm
|
47-48
|
Consolidated Statements of Financial Position as of April 30, 2010 and 2009
|
49
|
Consolidated Statements of Income for the years ended April 30, 2010, 2009, and 2008
|
50
|
Consolidated Statements of Cash Flows for the years ended April 30, 2010, 2009, and 2008
|
51
|
Consolidated Statements of Shareholders’ Equity and Comprehensive Income for the years ended April 30, 2010, 2009, and 2008
|
52
|
Notes to Consolidated Financial Statements
|
53-77
|
Schedule II — Valuation and Qualifying Accounts for the years ended April 30, 2010, 2009, and 2008
|
78
|
Scientific, Technical, Medical and Scholarly (STMS):
|
||||
% change
|
||||
Dollars in thousands
|
2010
|
2009
|
% change
|
w/o FX (a)
|
Revenue
|
$986,683
|
$969,184
|
2%
|
0
%
|
Direct Contribution
|
$405,244
|
$399,156
|
2%
|
0
%
|
Contribution Margin
|
41.1%
|
41.2%
|
(a)
|
Adjusted to exclude fiscal year 2010 impairment and restructuring charges of $15.1 million from direct contribution.
|
·
|
31 new signings
|
·
|
90 renewed/extended contracts
|
·
|
2 contracts not renewed
|
·
|
Journal of Midwifery and Women's Health
on behalf of the American College of Nurse Midwives
|
·
|
Australian Journal of Psychology, Australian Psychologist
and
Clinical Psychologist,
the three flagship journals of Australian Psychological Society
|
·
|
Legislative Studies Quarterly
on behalf of the Comparative Legislative Research Center at the University of Iowa
|
·
|
Allergy & Rhinology
on behalf of the American Academy of Otolaryngic Allergy and the American Rhinologic Society
|
·
|
Thoracic Cancer
on behalf of the Tianjin Lung Cancer Institute
|
·
|
The Bulletin of the Institute of Classical Studies
(
BICS
), one of the world’s most prestigious classics journals
|
·
|
Four academic journals of the Royal Pharmaceutical Society of Great Britain, which were previously self-published (
Journal of Pharmacy and Pharmacology
,
International Journal of Pharmacy Practice, Focus on Alternative and Complementary Therapies
, and
Journal of Pharmaceutical Health Services Research
)
|
·
|
Equine Veterinary Journal
and
Equine Veterinary Education,
previously self- published by the British Equine Veterinary Association
|
·
|
Contemporary Accounting Research
and
Accounting Perspectives,
previously self-published
by
the Canadian Academic Accounting Association
|
·
|
Steel Research International
on behalf of the German Steel Makers Association
|
·
|
Online book revenue grew 44% in fiscal year 2010 to approximately $6 million. There is a growing trend for institutional library customers to purchase digital books. Online books are sold individually or through subscriptions, similar to journal licenses.
|
·
|
Wiley’s Chinese language website launched in April. Designed to enhance customers’ experience with tailored sections for librarians, authors, societies and industry partners,
wileychina.com
will feature general information about Wiley’s presence in China, as well as specific details about core content of particular interest to the Chinese community. In addition, this site will include hyper-links and cross references to
wiley.com
,
Wiley InterScience
(and ultimately
Wiley Online Library
) and the
Press Room
, where all local news and events will be highlighted.
|
·
|
The
Cochrane Library
is now available to more than 650,000 students and faculty at 47 universities in Germany as part of a new agreement with Universitätsbibliothek Johann Christian Senckenberg in Frankfurt. The agreement allows access for a period of ten years to the
Cochrane Library
, a collection of regularly updated evidence-based healthcare databases, including the highly regarded Cochrane Systematic Reviews. In addition, a national license agreement in India will provide about 60 million Internet users with access to
The Cochrane Library.
|
·
|
In April, Wiley announced that it will extend licensed electronic content to emergency workers, students, faculty and academic institutions affected by a local, national or global natural disaster. Under the Natural Disaster Access Clause, Wiley will allow a licensee to provide affected groups with electronic access to its licensed products via the licensee’s secure network. Such an arrangement was put in place after Hurricane Katrina.
|
·
|
Essential Evidence,
a new product added to the online, evidence-based
Essential Evidence Plus,
was launched
.
This resource tool will help clinicians make diagnoses, chart treatment plans and determine prognoses. The product currently features approximately 700 structured medical topics with approximately 100 more in development.
|
·
|
A co-publication agreement with Higher Education Press (HEP) in Beijing was signed in the fourth quarter. HEP is the second largest science and technology publisher in China.
|
·
|
A books co-publishing agreement was signed with The Minerals, Metals & Materials Society. The society is closely affiliated with the American Ceramic Society (ACerS) and ASM International.
|
·
|
An agreement was signed with the Royal Geographical Society for a book series. Wiley also publishes The Royal Geographical Society’s
Geographical Journal
,
Area
and
Transactions of the Institute of British Geographers.
|
·
|
An agreement was signed with The American Geographical Society to co-publish both the
Geographical Review
and
FOCUS on Geography
.
Geographical Review
is a leading scholarly periodical.
|
·
|
Through a partnership with the Australian Psychological Society, Wiley will publish three flagship journals –
Australian Journal of Psychology, Australian Psychologist
and
Clinical Psychologist.
|
·
|
An agreement was signed with Chemical Industry Press (Beijing, China) to publish a co-branded Wiley-CIP series imprint. The collaboration will focus on a series of English-language advanced textbooks and reference books for a global readership of post-graduates, researchers and practitioners in engineering, materials science and chemistry, with the potential to expand into other areas.
|
·
|
An agreement was signed with Scrivener Publishing, an engineering book publisher, to co-publish and distribute their books globally. The program will publish 15-20 books per year. The target market includes researchers in the technical and applied sciences.
|
·
|
Acquired
Microcirculation
, the journal of The Microcirculatory Society. The haematology/vascular medicine publication is in its sixteenth year.
|
·
|
Acquired the
Israel Journal of Chemistry
from Laser Pages Publishing Ltd. Launched in 1951 as the
Bulletin of the Research Council of Israel, Section A
,
it was re-launched in 1963 under its current name.
|
·
|
Sold two journals to Maney Publishing:
Cochlear Implants International
and
Deafness & Education International
.
|
·
|
Wiley acquired the publishing rights to
Topley & Wilson’s Microbiology
and
Microbial Infections
from Hodder Education. Now in its 10
th
edition (having been first published in 1929), the 8-volume reference work is prominent in the fields of microbiology and infectious disease. Wiley will offer it to customers for the first time online in fiscal year 2010.
|
·
|
Wiley is at or near the top of its peers as measured by journal influence and impact. A total of 949 out of 1,450 Wiley journals were ranked in the JCR, which is up from 926 in the previous report. Wiley publications achieved thirty #1 rankings within the 227 categories. The Company’s journals received the highest total Impact Factors of any publisher in 37 categories.
|
·
|
Eight out of the thirty newly-listed Wiley journals are Asia-Pacific publications. Sixty-three Asia-Pacific journals are currently represented in the JCR, evidence of Wiley’s expanding publishing program in this region.
|
·
|
In chemistry and physical sciences,
Angewandte Chemie,
a journal of the German Chemical Society, increased its Impact Factor, strengthening its position as the leading chemistry journal that features primary research and review articles.
Medicinal Research Reviews
is ranked #1 in its category. Other #1 ranked journals in the physical sciences include
Mass Spectrometry Reviews
for the 10th consecutive year;
Advanced Synthesis and Catalysis
for its 6th year; and
Communications on Pure and Applied Mathematics.
|
·
|
In technology and engineering
, International Journal of Circuit Theory and Applications
is the top circuit theory journal.
International Journal for Numerical Methods in Engineering
is #1 in numerical engineering.
|
·
|
In medical sciences, the journal
CA–A Cancer Journal for Clinicians,
published on behalf of The American Cancer Society, was awarded the highest Impact Factor among all medical journals. In dentistry,
Periodontology 2000
is ranked #1 for the second year and
Journal of Clinical Periodontology
has risen to be ranked #2 (from #5 in 2007).
Addiction's
Impact Factor increased again and remains #1 in substance abuse in the social science index.
Addiction Biology
has taken the #1 spot in substance abuse in the science index. In nursing,
Birth
continues to rank first.
|
·
|
In life sciences,
Aging Cell
increased its Impact Factor and is ranked #1 in geriatrics and gerontology. For the 5
th
consecutive year,
Ecology Letters
increased its Impact Factor and remains the highest ranking primary research journal in ecology.
Developmental Dynamics
remains the #1 journal in anatomy and morphology.
|
·
|
In social sciences and humanities
,
Wiley published #1 ranked journals in nine categories, including
Addiction, Birth: Issues in Perinatal Care, Child Development, Criminology, Journal of Finance, Journal of Communication, Transactions of the Institute of British Geographers
and
Perspectives on Sexual & Reproductive Health
.
|
Professional/Trade (P/T):
|
||||
% change
|
||||
Dollars in thousands
|
2010
|
2009
|
% change
|
w/o FX
|
Revenue
|
$429,988
|
$403,113
|
7%
|
6%
|
Direct Contribution
|
$100,196
|
$89,678
|
12%
|
11%
|
Contribution Margin
|
23.3%
|
22.2%
|
·
|
Business
advanced 5%, led by social media and quick-to-market books.
|
·
|
Consumer
grew 16%, led by cooking (Meredith, Food Network TV, Weight Watchers) and the GMAC agreement.
|
·
|
Technology
was up 4%. Growth was attributed to Sybex certification and virtualization books, and the release of Windows 7.
|
·
|
Psychology
grew 15% for the year.
|
·
|
Architecture
was down 6% for the year.
|
·
|
Education
grew 6% for the year.
|
·
|
Fiscal year 2010 ebook revenue increased 93% to approximately $7 million.
|
·
|
Approximately 11,000 eBooks are now available on Kindle.
|
·
|
Frommer’s Unlimited
launched
Frommer’s
destination guides on Canada.com; unveiled destination guides on the UK meta search engine Travelsupermarket; created custom leisure and business events for a high-profile British Airways ad campaign microsite; launched an innovative trip planning tool with Eurostar; and integrated multilingual events content and weather charts into an Air France desktop widget.
|
·
|
eBook agreements were signed with Barnes and Noble (Nook), EBooks.com, Ingram Digital and Scrollmotion (Apple’s preferred eBook vendor). Existing agreements include Amazon (Kindle), Sony (eReader) and Mobipocket.
|
·
|
P/T launched a
CliffsNotes
literature note application for the iPhone and iPod Touch, branded
CliffsNotes-to-Go
, which was produced on a fast-track schedule to coincide with a major Apple promotion. Five popular classics (
The Adventures of Huckleberry Finn
,
Macbeth
,
The Scarlet Letter
,
To Kill a Mockingbird
, and
Romeo and Juliet
) are available in the iTunes App Store. The apps contain the full content of the books plus audio summaries, interactive character maps, and a user defined “CramPlan” that allows students to access the most important components of the text based on the amount of time they have to study.
|
·
|
Through an alli
ance with
L
ib
reDigital, Wiley now has the capability to sell ebooks in bulk,
en
abling volume
sal
es in e-only or print plus electronic combinations based on a variety of access models.
|
·
|
Cliffsnotes.com
advertising r
ev
enue in
f
iscal year 2010 gr
ew
by 28% over prior ye
ar.
|
·
|
Du
mmies.com
report
ed
an all-time record monthly traffic count of 4 million users in March.
|
·
|
Wiley was named the exclusive global publisher of BLOOMBERG® and BLOOMBERG BUSINESSWEEK® branded books to be marketed as “BLOOMBERG PRESS®, a Wiley imprint.” Wiley intends to publish the content in print, e-book and digital formats.
|
·
|
Wiley has been named an official licensee by The London Organizing Committee of the Olympic Games and Paralympics Games. We will publish 12 books in non-fiction categories including illustrated reference, photographic and architecture and design books, including the official commemorative book.
|
·
|
Publishing agreement signed with
Facebook.com to produce “Official” branded Facebook instruction guides,
The Definitive Facebook Guides.
The series will be launched in fiscal year 2011.
|
·
|
Wiley-Pfeiffer (HR development and management) signed an agreement with Korean Management Association to deliver products in Korea.
|
·
|
Agreement signed with the Construction Specifications Institute (CSI) to become the publisher of the CSI Professional Practice Guides. These guides align with CSI’s certification program for Architecture, Engineering and Construction industry professionals.
|
·
|
The Great Place to Work® Institute
and Wiley will collaborate on a training package and two books. The Institute has been developing the annual “FORTUNE 100 Best Companies to Work For” list for twenty years and is known around the world for its research-based models and accessible best practices.
|
·
|
The Meredith (
Better Homes and Gardens
,
Food Network TV
, etc.) backlist boosted cookbook sales. There were 25 new Meredith books in the lifestyles, pets and education categories published in fiscal year 2010.
|
·
|
Chatelaine, Canada’s #1 women’s magazine, will publish a major cookbook and personal finance guide in partnership with Wiley.
|
·
|
Patrick Lencioni,
Getting
Naked: A Business Fable about Shedding the Three Fears that Sabotage Client Loyalty
|
·
|
Chris Brogan,
Trust Agents
|
·
|
Erik Qualman,
Social Economics
|
·
|
Jon Gordon,
Training Camp
|
·
|
Bill George,
Seven lessons for Leading In A Crisis
|
·
|
Brian Halligan
, Inbound Marketing
|
·
|
Harry Markopolis,
No One Would Listen
|
·
|
Peter Schiff,
LoyaltyCrash Proof 2.0
|
·
|
John Bogle
, Common Sense of Mutual Funds, 10
th
Anniversary Edition
|
·
|
Ben Stein,
Little Book of Bulletproof Investing
|
·
|
Christine Richard,
Confidence Game
|
·
|
David Faber,
And Then The Roof Crashed In
|
·
|
Irving Weiner,
Handbook of Social Psychology, Fifth Edition
|
·
|
The Corsini Encyclopedia of Psychology, Fourth Edition
|
·
|
Bret A. Moore, The
Veterans and Active Duty Military Psychotherapy Treatment Planner
|
·
|
Sue
, Counseling the Culturally Diverse, Theory and Practice, Fifth Edition
|
·
|
Dattilo,
Therascribe Family Treatment Planner, Second Edition
|
·
|
Doug Lemov,
Teach Like A Champion
|
·
|
Bob Sehlinger, The
Unofficial Guide to Walt Disney World: The Color Companion
|
·
|
John Brady,
Hero of the Pacific
|
·
|
Fred Kaplan,
1959, The Year Everything Changed
|
·
|
Brian Leaf,
Defining Twilight
|
·
|
Ellie Kreiger,
So Easy
|
·
|
Sandra Lee,
Weeknight Wonders
|
·
|
Rose Levy Beranbaum,
Rose’s Heavenly Cakes
|
·
|
Architectural Graphic Standards for Residential Construction
|
·
|
Stein and Reynolds,
Mechanical and Electrical Equipment for Buildings , Tenth Edition
|
·
|
Edward Allen,
Forms and Forces
|
·
|
Frank Ching,
Building Codes Illustrated, Third Edition
|
·
|
Andy Rathbone,
Windows 7 For Dummies
|
·
|
Paul Thurott,
Windows 7 Secrets For Dummies
|
·
|
Dan Gookin,
Laptops For Dummies
|
·
|
Peter Weverka,
Office 2010 All-In-One For Dummies
|
·
|
Scott Lowe,
Mastering VMware VSphere4
|
·
|
Daniel Hedengren
, Smashing WordPress: Beyond The Blog
|
Higher Education (HE):
|
||||
|
% change
|
|||
Dollars in thousands
|
2010
|
2009
|
% change
|
w/o FX
|
Revenue
|
$282,391
|
$239,093
|
18%
|
15%
|
Direct Contribution
|
$86,212
|
$66,619
|
29%
|
25%
|
Contribution Margin
|
30.5%
|
27.9%
|
·
|
Americas
grew 16% to $239.0 million.
|
·
|
EMEA
revenue increased 13% to $23.5 million.
|
·
|
Asia-Pacific
revenue advanced 27% to $60.7 million, or 13% on a currency neutral basis.
|
·
|
Business and Accounting
exceeded prior year by 21%, driven mainly by a strong accounting frontlist.
|
·
|
Engineering and Computer Science
exceeded prior year by 8%. Top textbooks driving the growth include Munson:
Fluid Mechanics 6e,
Turban:
Information Management 7e
and Callister:
Materials Science 8e
.
|
·
|
Mathematics and Statistics
surpassed prior year by 27%. Driving the growth over prior year were Hughes Hallett:
Calculus 5e
, Anton:
Calculus 9e
, Boyce:
Elementary Differential Equations 9e
and Young:
College Algebra 2e
.
|
·
|
Sciences
surpassed prior year by 9%. Growth is attributed to Cutnell:
Physics 8e
, Jenkins:
Anatomy and Physiology 2e
and Tortora:
Introduction to the Human Body 8e
.
|
·
|
Social Sciences
exceeded prior year by 20%. The textbooks driving the growth include Huffman:
Psychology 9e
, deBlij:
Concepts Geography 14e
,
Kring:
Abnormal Psychology 11e
and deBlij:
Human Geography 9e
.
|
·
|
MOAC
revenue exceeded prior year by 29%. The operating systems and server books continue to drive results.
|
·
|
Global revenue for the full year grew 42% to 11% of global HE sales.
|
·
|
Digital-only sales grew 55% to $10 million, accounting for 36% of
WileyPLUS
sales. Digital-only is defined as
WileyPLUS
standalone (not packaged with a print textbook).
|
·
|
Wiley is partnering with Reaction Explorer to bring new capabilities to the online organic chemistry market. Reaction Explorer uses expert system technology to predict the results of arbitrary organic chemistry reactions. By accessing Reaction Explorer through
WileyPLUS
, students will be able to achieve a higher level of understanding of the intricacies of organic chemistry reactions, syntheses and mechanisms.
|
·
|
National Geographic Society (NGS): Pilot program signed for custom initiative that will allow customers to choose from over 100 additional pieces of NGS magazine articles and some maps. Customers can combine them with Wiley’s Geosciences books to create a more customized and engaging learning solution for instructors and students.
|
·
|
In May 2009, Wiley announced that it was expanding its alliance with Amazon to offer select Wiley textbooks for sale through the Kindle DX. A pilot program began in the first quarter.
|
·
|
Many of Wiley’s textbooks will now contain embedded Radio Frequency Identification (RFID) tags that will:
|
·
|
Increase bookstore sell-through by reducing the supply of reimported, pirated, hurt and comp copies;
|
·
|
Enhance business intelligence to enforce returns policy such as no-return agreements and returns attempted after our stated returns period;
|
·
|
Improve customer experience by reducing shipping errors. The presence of RFID hardware and systems in Wiley’s distribution centers will enable us to validate the contents of shipments as they are fulfilled, thereby reducing shipping errors and the costs associated with correcting them.
|
·
|
Institutional sales, particularly for-profit schools, continued to gain traction.
|
·
|
In India, eight new contracts were signed and ten new books were published as part of the indigenous publishing and adaptation program.
|
Reconciliation of Non-GAAP Financial Disclosure
|
||
For the Years
Ended April 30,
|
||
Net Income (in thousands)
|
2009
|
2008
|
As Reported
|
$128,258
|
$147,536
|
Deferred Tax Benefit on Changes in Statutory Rates
|
-
|
(18,663)
|
Adjusted
|
$128,258
|
$128,873
|
For the Years
Ended April 30,
|
||
Earnings per Diluted Share
|
2009
|
2008
|
As Reported
|
$2.15
|
$2.49
|
Deferred Tax Benefit on Changes in Statutory Rates
|
-
|
(0.31)
|
Adjusted
|
$2.15
|
$2.17
|
Scientific, Technical, Medical and Scholarly (STMS):
|
||||
% change
|
||||
Dollars in thousands
|
2009
|
2008
|
% change
|
w/o FX
|
Revenue
|
$969,184
|
$975,797
|
(1%)
|
9%
|
Direct Contribution
|
$399,156
|
$384,170
|
4%
|
14%
|
Contribution Margin
|
41.2%
|
39.4%
|
·
|
32 New signings
|
·
|
87 Renewed/extended contracts
|
·
|
9 Contracts not renewed
|
·
|
A new journal launch for 2010 – the
Journal of Research Synthesis Methods
in association with the Society for Research Synthesis Methodology
|
·
|
Family and Consumer Science Research
on behalf of the American Association of Family and Consumer Sciences
|
·
|
Design
Management Review
and
Design Management Journal
with the Design Management Institute
|
·
|
The Institute of Development Studies at the University of Sussex, one of Europe’s leading research institutions. The journal,
IDS Bulletin
, was previously self-published.
|
·
|
The Economic Society of Australia for
Economic Papers
.
|
·
|
Asian Journal of Endoscopic Surgery.
|
·
|
Economic Journal and Econometrics Journal
(Royal Economic Society)
|
·
|
Journal of Accounting Research
(Institute of Professional Accounting at the University of Chicago Booth School of Business)
|
·
|
Cancer Science
(Japanese Cancer Association)
|
·
|
ANZ Journal of Surgery
(Royal Australasian College of Surgeons)
|
·
|
International Journal of Urology
(Japanese Urological Association)
|
·
|
Journal of Neuroendocrinology
(European Neuroendocrine Association, the British Society for Neuroendocrinology and the International Neuroendocrine Federation)
|
·
|
Therapeutic Aphaeresis and Dialysis
(International Society for Aphaeresis, The Japanese Society for Aphaeresis and The Japanese Society for Dialysis Therapy
)
|
·
|
Journal of Philosophy of Education
(Philosophy of Education Society of Great Britain)
|
Professional/Trade (P/T):
|
||||
% change
|
||||
Dollars in thousands
|
2009
|
2008
|
% change
|
w/o FX
|
Revenue
|
$403,113
|
$457,286
|
(12%)
|
(9%)
|
Direct Contribution
|
$89,678
|
$130,502
|
(31%)
|
(27%)
|
Contribution Margin
|
22.2%
|
28.5%
|
·
|
GMAC/Official Guide to the GMAT:
Wiley became the official publisher of the Graduate Management Admission Test® (GMAT®) study guides in October 2008. In March, the 12
th
edition of the top-selling
Official Guide for GMAT Review
was released worldwide. It will be followed by
The Official Guide for GMAT Verbal Review
and
The Official Guide for GMAT Quantitative
.
|
·
|
Meredith:
In March 2009, as part of its multi-year agreement, Wiley began publishing
Better Homes and Garden
book titles and other brands such as
Family Circle
, as well as
Food Network TV
, Sandra Lee, Rocco DiSpirito and Tyler Florence.
|
·
|
Kindle (Amazon):
Currently, Wiley has over 9,000 P/T books available on the Kindle 2.
|
·
|
General Mills:
Wiley and General Mills signed an agreement to renew their publishing partnership. Under the agreement, Wiley will continue to publish the flagship
Betty Crocker “Big Red”
cookbook and other cookbooks under the
Betty Crocker
,
Pillsbury
and other General Mills brands.
|
·
|
Vancouver Olympic Organizing Committee:
Wiley Canada entered into an agreement with VANOC, becoming the official publication partner of the 2010 Winter Olympic and Paralympics Games in Vancouver/Whistler. In close cooperation with VANOC, Wiley will produce commemorative books, games reports, and custom publications.
|
·
|
For the fiscal year, Frommers.com maintained its top position in website traffic by posting 137 million page views and nearly 29 million visits. The results were lower than last year due to the economy.
|
·
|
Launched in November 2008, the new Dummies.com generated a total of 29 million page views by fiscal year-end, a 23% increase over prior year. Eleven million unique visitors represented a 21% increase. Users are spending 17% more time on content pages. The site now includes 25 topic areas with 250+ pieces of content in each, 950 fully illustrated step-by-step articles, 6,610 articles, and 265 videos.
|
·
|
CliffsNotes.com recorded year-on-year increases of 5% in page views and 21% in unique visitors.
|
·
|
Lee Bolman:
Reframing Organizations
, Fourth Edition
|
·
|
Jim Kouzes and Barry Posner:
Leadership Challenge
, Fourth Edition
|
·
|
GAAP 2009
|
·
|
CPA Exam Set,
Thirty-fifth edition, Volumes 1 and 2
|
·
|
Mary Kay Ash: Mary Kay Way
|
·
|
Patrick Lencioni:
Three Big Questions for A Frantic Family
|
·
|
JK Lasser,
Year In Taxes 2009
|
·
|
Fischer:
Ten Road to Riches
|
·
|
John Bogle:
Enough
|
·
|
Peter Schiff:
Little Book of Bull Moves in Bear Markets
|
·
|
Martin Weiss:
Depression Survival Guide
|
·
|
Addison Wiggin: I.O.U.S.A.:
One Nation. Under Stress. In Debt
|
·
|
Lenore Skenazy:
Free Range Kids: Giving Our Children the Freedom We had without Going Nuts with
W
orry
|
·
|
Michael Gurian:
The Purpose of Boys: Helping Our Sons Find Meaning, Significance and Direction in Their Lives
|
·
|
Gary Groth-Marnat:
Handbook of Psychological Assessment
, Fifth Edition
|
·
|
Richard Lerner:
Handbook of Adolescent Psychology
, Third Edition
|
·
|
Weight Watchers in 20 Minutes
|
·
|
Mark Bittman:
How to Cook Everything,
Second Edition
|
·
|
Bob Sehlinger:
Unofficial Guide to Walt Disney World 2009
|
·
|
GMAC:
The Official Guide to the GMAT
, Twelfth Edition
|
·
|
Jack Cafferty:
Now Or Never: Getting Down To Business of Saving Our American Dream
|
·
|
Alan Rubin:
Diabetes for Dummies
|
·
|
Paul McFedries:
iPhone 3G Portable Genius
|
·
|
Edward Allen:
Fundamentals of Building Construction
, Fifth Edition
|
·
|
Wiley CPE (Continuing Professional Education, a web-based online continuing education system).
|
Higher Education (HE):
|
||||
|
% change
|
|||
Dollars in thousands
|
2009
|
2008
|
% change
|
w/o FX
|
Revenue
|
$239,093
|
$240,651
|
(1%)
|
3%
|
Direct Contribution
|
$66,619
|
$74,387
|
(10%)
|
(5%)
|
Contribution Margin
|
27.9%
|
30.9%
|
·
|
Now accounts for 9% of global HE revenue
|
·
|
Global full year billings increased 38%
|
·
|
Digital-only sales grew 70%
|
·
|
Validation/usage rates increased
|
·
|
WileyPLUS
sales outside the US represent 15% of the total
|
·
|
Microsoft Official Academic Course (MOAC) revenue was up 16% over prior year.
|
·
|
Wiley is partnering with American Hospitality Training Institute, an online provider of hospitality training for students outside the US interested in working for US hotels and resorts. Twenty-one classes utilizing content from Barrows/
Introduction to Management in the Hospitality Industry 9e
will begin in June, 2009.
|
·
|
Wiley and Learning House agreed to create highly integrative online courses based on Wiley textbooks. The courses will be bundled with the book. We received approval for a licensing agreement for two pilot courses in world regional geography and Spanish 1. Learning House is an online education solutions partner helping small colleges and universities offer and manage their online degree programs.
|
·
|
Wiley expanded its alliance with Amazon to offer select Wiley textbooks for sale through the Kindle DX. Books are set to go live on the Kindle Store in the summer of 2009.
|
·
|
In August 2008, Wiley acquired business and modern language textbooks from Cengage Learning and mathematics and statistics textbooks from Key College Publishing.
|
·
|
These acquisitions contributed approximately $6.6 million of revenue in fiscal year 2009, exceeding expectations.
|
·
|
Wiley Custom Select
was successfully launched in the fourth quarter.
Wiley Custom Select
is a custom textbook system that allows instructors to "build" customized higher education course materials that fit their pedagogical needs, enabling users to easily find the content, personalize the material and format, and submit the order. In fiscal year 2009, custom sales increased approximately 25%.
|
Payments Due by Period
|
|||||
Within
|
2-3
|
4-5
|
After 5
|
||
Total
|
Year 1
|
Years
|
Years
|
Years
|
|
Total Debt
|
$649.0
|
$90.0
|
$559.0
|
$-
|
$-
|
Non-Cancelable Leases
|
238.6
|
34.0
|
59.1
|
54.8
|
90.7
|
Minimum Royalty Obligations
|
204.4
|
42.2
|
70.1
|
52.7
|
39.4
|
Other Commitments
|
6.8
|
4.6
|
2.1
|
0.1
|
-
|
Total
|
$1,098.8
|
$170.8
|
$690.3
|
$107.6
|
$130.1
|
Dollars in millions, except per share data
|
||||||||
2010
|
2009
|
|||||||
Revenue
|
||||||||
First Quarter
|
$
|
388.4
|
$
|
401.7
|
||||
Second Quarter
|
448.0
|
431.9
|
||||||
Third Quarter
|
427.1
|
374.4
|
||||||
Fourth Quarter
|
435.6
|
403.4
|
||||||
Fiscal Year
|
$
|
1,699.1
|
$
|
1,611.4
|
||||
Operating Income
|
||||||||
First Quarter
|
$
|
55.7
|
$
|
44.3
|
||||
Second Quarter (a)
|
75.3
|
70.2
|
||||||
Third Quarter (a)
|
68.3
|
63.3
|
||||||
Fourth Quarter (b)
|
43.3
|
40.7
|
||||||
Fiscal Year
|
$
|
242.6
|
$
|
218.5
|
||||
Net Income
|
||||||||
First Quarter
|
$
|
26.9
|
$
|
30.2
|
||||
Second Quarter (a)
|
46.3
|
40.1
|
||||||
Third Quarter (a)
|
42.4
|
33.4
|
||||||
Fourth Quarter (b)
|
27.9
|
24.6
|
||||||
Fiscal Year
|
$
|
143.5
|
$
|
128.3
|
||||
2010
|
2009
|
|||||||
Income Per Share
|
Diluted
|
Basic
|
Diluted
|
Basic
|
||||
First Quarter
|
$
|
0.45
|
$
|
0.46
|
$
|
0.50
|
$
|
0.52
|
Second Quarter (a)
|
0.78
|
0.79
|
0.67
|
0.68
|
||||
Third Quarter (a)
|
0.71
|
0.72
|
0.57
|
0.58
|
||||
Fourth Quarter (b)
|
0.46
|
0.47
|
0.42
|
0.42
|
||||
Fiscal Year
|
$
|
2.41
|
$
|
2.45
|
$
|
2.15
|
$
|
2.20
|
(a)
|
In the second and third quarters of fiscal year 2010, the Company recognized intangible asset impairment and restructuring charges principally related to GIT Verlag, a Business-to-Business German-language controlled circulation magazine business acquired in 2002. The second quarter charge was $11.5 million ($8.2 million after taxes) or $0.14 per diluted share. The third quarter charge was $2.8 million ($2.0 million after taxes) or $0.03 per diluted share.
|
(b)
|
In the fourth quarter of fiscal year 2010, the Company recognized restructuring charges principally related to offshoring and outsourcing certain marketing and content management activities to Singapore. The fourth quarter charge was $0.8 million ($0.5 million after taxes) or $0.01 per diluted share.
|
Class A Common Stock
|
Class B Common Stock
|
|||||
Market Price
|
Market Price
|
|||||
Dividends
|
High
|
Low
|
Dividends
|
High
|
Low
|
|
2010
|
||||||
First Quarter
|
$0.14
|
$35.04
|
$30.84
|
$0.14
|
$35.00
|
$31.00
|
Second Quarter
|
0.14
|
35.90
|
29.77
|
0.14
|
35.76
|
29.50
|
Third Quarter
|
0.14
|
43.17
|
35.35
|
0.14
|
43.30
|
35.17
|
Fourth Quarter
|
0.14
|
43.95
|
39.73
|
0.14
|
43.74
|
39.97
|
2009
|
||||||
First Quarter
|
$0.13
|
$49.76
|
$43.39
|
$0.13
|
$49.52
|
$43.53
|
Second Quarter
|
0.13
|
48.88
|
27.75
|
0.13
|
49.11
|
28.02
|
Third Quarter
|
0.13
|
37.60
|
26.21
|
0.13
|
37.58
|
26.05
|
Fourth Quarter
|
0.13
|
36.72
|
27.55
|
0.13
|
36.63
|
27.50
|
For the Years Ended April 30,
|
|||||
Dollars in millions (except per share data)
|
2010
|
2009
|
2008
|
2007
|
2006
|
Revenue
|
$1,699.1
|
$1,611.4
|
$1,673.7
|
$1,234.6
|
$1,043.9
|
Operating Income (a)
|
242.6
|
218.5
|
225.2
|
161.5
|
152.9
|
Net Income (a,b,c)
|
143.5
|
128.3
|
147.5
|
99.6
|
110.3
|
Working Capital (d)
|
(188.7)
|
(157.4)
|
(243.6)
|
(199.7)
|
(35.8)
|
Total Assets
|
2,316.2
|
2,223.7
|
2,576.2
|
2,553.1
|
1,026.0
|
Long-Term Debt
|
559.0
|
754.9
|
797.3
|
977.7
|
160.5
|
Shareholders’ Equity
|
722.4
|
513.5
|
689.1
|
529.5
|
401.8
|
Per Share Data
|
|||||
Income Per Share (a,b,c)
|
|||||
Diluted
|
$2.41
|
$2.15
|
$2.49
|
$1.71
|
$1.85
|
Basic
|
$2.45
|
$2.20
|
$2.55
|
$1.75
|
$1.90
|
Cash Dividends
|
|||||
Class A Common
|
$0.56
|
$0.52
|
$0.44
|
$0.40
|
$0.36
|
Class B Common
|
$0.56
|
$0.52
|
$0.44
|
$0.40
|
$0.36
|
|
NOTE: The Company acquired Blackwell Publishing (Holdings) Ltd. (“Blackwell”) on February 2, 2007.
|
(a)
|
In fiscal year 2010, the Company recognized intangible asset impairment and restructuring charges principally related to GIT Verlag, a Business-to-Business German-language controlled circulation magazine business acquired in 2002. The fiscal year 2010 charges were $15.1 million ($10.6 million after taxes) and impacted diluted earnings per share by $0.17.
|
(b)
|
Tax benefits included in fiscal year results are as follows:
|
·
|
Fiscal year 2008
includes a $18.7 million tax benefit, or $0.32 per diluted share, associated with new tax legislation enacted in the United Kingdom and Germany that reduced the corporate income tax rates from 30% to 28% and from 39% to 29%, respectively. The benefits recognized by the Company reflect the adjustments required to record all U.K. and Germany-related deferred tax balances at the new corporate income tax rates.
|
·
|
Fiscal year 2007
includes a $5.5 million tax benefit, or $0.09 per diluted share. This benefit coincides with the resolution and settlements of certain tax matters with authorities in the U.S. and abroad.
|
·
|
Fiscal year 2006
includes a tax benefit of $6.8 million, or $0.11 per diluted share, related to the favorable resolution of certain matters with tax authorities.
|
·
|
In the fourth quarter of
fiscal year 2005
, the Company elected to repatriate approximately $94 million of dividends from its European subsidiaries under the American Jobs Creation Act of 2004. The law provided for a favorable one-time tax rate on dividends from foreign subsidiaries. The tax accrued on the dividend in the fourth quarter of fiscal year 2005 was approximately $7.5 million, or $0.12 per diluted share. Pursuant to guidance issued by the Internal Revenue Service in May 2005, the Company recorded a tax benefit in the first quarter of
fiscal year 2006
reversing the accrued tax recorded in the previous year. Neither the first quarter fiscal year 2006 tax benefit nor the corresponding fourth quarter fiscal year 2005 tax accrual had a cash impact on the Company.
|
(c)
|
Effective May 1, 2006, the Company adopted the guidance included in ASC 718, “Compensation – Stock Compensation (“ASC 718”) which required that companies recognize share-based compensation to employees in the Statement of Income based on the fair value of the share-based awards. The adoption of ASC 718 resulted in the recognition of an incremental share-based compensation expense of $11.3 million ($7.0 million after taxes) or $0.12 per diluted share for the full year ended April 30, 2007.
|
(d)
|
Working capital is reduced or negative as a result of including in current liabilities the deferred revenue related to prepaid journal subscriptions for which the cash has been received. The deferred revenue will be recognized into income as the journals are shipped or made available online to the customers over the term of the subscription.
|
William J. Pesce
|
|
President and Chief Executive Officer
|
|
Ellis E. Cousens
|
|
Executive Vice President and
|
|
Chief Financial and Operations Officer
|
|
Edward J. Melando
|
|
Vice President, Controller and
|
|
Chief Accounting Officer
|
|
June 23, 2010
|
2010
|
2009
|
2008
|
|
Weighted Average Shares Outstanding
|
58,897
|
58,665
|
58,193
|
Less: Unearned Restricted Shares
|
(399)
|
(246)
|
(272)
|
Shares Used for Basic Income Per Share
|
58,498
|
58,419
|
57,921
|
Dilutive Effect of Stock Options and Other Stock Awards
|
1,181
|
1,191
|
1,402
|
Shares Used for Diluted Income Per Share
|
59,679
|
59,610
|
59,323
|
2010
|
2009
|
|
Finished Goods
|
$86,355
|
$97,013
|
Work-in-Process
|
7,566
|
9,507
|
Paper, Cloth, and Other
|
7,434
|
9,002
|
101,355
|
115,522
|
|
LIFO Reserve
|
(3,498)
|
(4,255)
|
Total Inventories
|
$97,857
|
$111,267
|
2010
|
2009
|
|
Composition Costs
|
$52,274
|
$46,686
|
Royalty Advances
|
55,481
|
42,976
|
Total
|
$107,755
|
$89,662
|
2010
|
2009
|
|
Land and Land Improvements
|
$4,038
|
$3,860
|
Buildings and Leasehold Improvements
|
88,440
|
83,618
|
Furniture, Fixtures and Warehouse Equipment
|
70,434
|
67,095
|
Computer Hardware and Capitalized Software
|
296,750
|
259,999
|
459,662
|
414,572
|
|
Accumulated Depreciation
|
(306,978)
|
(273,376)
|
Total
|
$152,684
|
$141,196
|
As of April
30, 2009
|
Foreign Translation
|
As of April
30, 2010
|
|
STMS
|
$432,418
|
24,573
|
$456,991
|
P/T
|
157,575
|
913
|
158,488
|
Total
|
$589,993
|
25,486
|
$615,479
|
2010
|
2009
|
|||||
Cost
|
Accumulated
Amortization
|
Cost
|
Accumulated Amortization
|
|||
Intangible Assets with Determinable Lives
|
||||||
Acquired Publishing Rights
|
$762,727
|
$(184,587)
|
$723,702
|
$(153,917)
|
||
Brands & Trademarks
|
16,094
|
(5,776)
|
16,034
|
(4,613)
|
||
Covenants not to Compete
|
2,290
|
(2,036)
|
2,240
|
(1,571)
|
||
Customer Relationships
|
61,923
|
(10,597)
|
60,481
|
(7,585)
|
||
843,034
|
(202,996)
|
802,457
|
(167,686)
|
|||
Intangible Assets with Indefinite Lives
|
||||||
Acquired Publishing Rights
|
101,891
|
-
|
120,771
|
-
|
||
Brands & Trademarks
|
169,621
|
-
|
163,833
|
-
|
||
$1,114,546
|
$(202,996)
|
$1,087,061
|
$(167,686)
|
2010
|
2009
|
2008
|
|
Current Provision
|
|||
US – Federal
|
$19,976
|
$7,795
|
$9,397
|
International
|
25,460
|
10,006
|
10,088
|
State and Local
|
1,749
|
1,275
|
2,386
|
Total Current Provision
|
$47,185
|
$19,076
|
$21,871
|
Deferred Provision (Benefit)
|
|||
US – Federal
|
$5,536
|
$7,520
|
$5,183
|
International
|
3,286
|
8,619
|
(13,414)
|
State and Local
|
659
|
1,002
|
352
|
Total Deferred Provision
|
$9,481
|
$17,141
|
$(7,879)
|
Total Provision
|
$56,666
|
$36,217
|
$13,992
|
2010
|
2009
|
2008
|
|
International
|
$133,088
|
$107,013
|
$122,369
|
United States
|
67,121
|
57,462
|
39,159
|
Total
|
$200,209
|
$164,475
|
$161,528
|
2010
|
2009
|
2008
|
|
U.S. Federal Statutory Rate
|
35.0%
|
35.0%
|
35.0%
|
State Income Taxes, Net of U.S. Federal Tax Benefit
|
0.8
|
0.9
|
1.2
|
Benefit from Lower Taxes Non-US Jurisdictions
|
(8.9)
|
(11.2)
|
(14.2)
|
Deferred Tax Benefit From Statutory Tax Rate Change
|
-
|
-
|
(11.6)
|
Other, including Interest on Tax Reserves
|
1.4
|
(2.7)
|
(1.7)
|
Effective Income Tax Rate
|
28.3%
|
22.0%
|
8.7%
|
2010
|
2009
|
|
Balance at the Beginning of Year
|
$30,368
|
$32,432
|
Additions for Current Year Tax Positions
|
1,476
|
944
|
Additions for Prior Year Tax Positions
|
5,961
|
1,550
|
Reductions of Prior Year Tax Positions
|
(310)
|
(3,319)
|
Cumulative Translation Adjustment
|
403
|
(678)
|
Reductions for Lapse of Statute of Limitations
|
(286)
|
(561)
|
Balance at the End of Year
|
$37,612
|
$30,368
|
2010
|
2009
|
|
Net Operating Loss
|
$6,355
|
$2,750
|
Reserve for Sales Returns and Doubtful Accounts
|
9,054
|
9,551
|
Inventory
|
(5,151)
|
(6,140)
|
Accrued Expenses
|
8,066
|
7,572
|
Accrued Employee Compensation
|
29,982
|
27,288
|
Retirement and Post-Employment Benefits
|
37,512
|
24,412
|
Intangible and Fixed Assets
|
(248,993)
|
(230,928)
|
Net Deferred Tax (Liabilities) Assets
|
$(163,175)
|
$(165,495)
|
2010
|
2009
|
|
Revolving Credit Facility – Due 2012
|
$114,000
|
$219,400
|
Term Loan – Due 2011 - 2013
|
535,000
|
603,000
|
Total Debt
|
649,000
|
822,400
|
Less: Current Portion
|
(90,000)
|
(67,500)
|
Total Long-Term Debt
|
$559,000
|
$754,900
|
2010
|
2009
|
2008
|
|
Minimum Rental
|
$37,261
|
$37,561
|
$36,002
|
Less: Sublease Rentals
|
(1,709)
|
(1,828)
|
(1,624)
|
Total
|
$35,552
|
$35,733
|
$34,378
|
Funded
|
Unfunded
|
Total
|
|
Actuarial Loss
|
$5,863
|
$1,065
|
$6,928
|
Prior Service Cost
|
348
|
353
|
701
|
Total
|
$6,211
|
$1,418
|
$7,629
|
2010
|
2009
|
2008
|
|
Service Cost
|
$11,095
|
$13,835
|
$19,639
|
Interest Cost
|
24,055
|
22,715
|
22,030
|
Expected Return on Plan Assets
|
(19,468)
|
(21,470)
|
(22,443)
|
Net Amortization of Prior Service Cost and Transition Asset
|
861
|
589
|
608
|
Recognized Net Actuarial Loss
|
3,776
|
2,654
|
3,060
|
Net Pension Expense
|
$20,319
|
$18,323
|
$22,894
|
2010
|
2009
|
2008
|
|
Discount Rate
|
7.1%
|
6.3%
|
5.7%
|
Rate of Compensation Increase
|
4.2%
|
4.3%
|
4.6%
|
Expected Return on Plan Assets
|
7.4%
|
7.4%
|
7.6%
|
·
|
Level 1: Unadjusted quoted prices in active markets for identical assets.
|
·
|
Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets.
|
·
|
Level 3: Unobservable inputs reflecting assumptions about the inputs used in pricing the asset.
|
(Level 1)
Quoted Prices in Active Markets for Identical Assets
|
(Level 2)
Significant Observable Inputs
|
Total
|
|
U.S. Plan Assets
|
|||
Equity Securities:
|
|||
U.S. Commingled Funds
|
$ -
|
$47,938
|
$47,938
|
Non-U.S. Commingled Funds
|
-
|
20,095
|
20,095
|
Fixed Income Securities:
|
|||
Fixed Income Commingled Funds
|
-
|
46,846
|
46,846
|
Other:
|
|||
Real Estate
|
-
|
4,422
|
4,422
|
Total U.S. Plan Assets
|
$ -
|
$119,301
|
$119,301
|
Non-U.S. Plan Assets
|
|||
Equity Securities:
|
|||
U.S. Equities
|
$13,278
|
$10,863
|
$24,141
|
Non-U.S. Equities
|
15,022
|
60,336
|
75,358
|
International Equities
|
2,351
|
-
|
2,351
|
Fixed Income Securities:
|
|||
Government /Sovereign Securities
|
13,292
|
1,439
|
14,731
|
Fixed Income Funds
|
17,736
|
67,693
|
85,429
|
Other:
|
|||
Real Estate/Other
|
2,719
|
10,368
|
13,087
|
Cash and Cash Equivalents
|
8,151
|
148
|
8,299
|
Total Non-U.S. Plan Assets
|
$72,549
|
$150,847
|
$223,396
|
Total Plan Assets
|
$72,549
|
$270,148
|
$342,697
|
For the Twelve Months
Ending April 30,
|
|||||
2010
|
2009
|
2008
|
|||
Per Share Fair Value of Options Granted
|
$11.32
|
$15.30
|
$18.42
|
||
Weighted Average assumptions:
|
|||||
Expected Life of Options (years)
|
7.8
|
7.7
|
7.7
|
||
Risk-Free Interest Rate
|
3.3%
|
3.8%
|
5.1%
|
||
Expected Volatility
|
29.9%
|
25.2%
|
27.3%
|
||
Expected Dividend Yield
|
1.6%
|
1.1%
|
0.9%
|
||
Fair Value of Common Stock on Grant Date
|
$35.04
|
$47.55
|
$48.46
|
2010
|
2009
|
2008
|
||||||||
Stock Options
|
Options
(in 000’s)
|
Weighted Average Exercise Price
|
Weighted Average Remaining Term
(in years)
|
Average Intrinsic Value
(in millions)
|
Options
(in 000’s)
|
Weighted Average Exercise Price
|
Options
(in 000’s)
|
Weighted Average Exercise Price
|
||
Outstanding at Beginning of Year
|
5,722
|
$34.05
|
5,730
|
$31.27
|
6,216
|
$27.37
|
||||
Granted
|
695
|
$35.04
|
631
|
$47.55
|
627
|
$48.46
|
||||
Exercised
|
(1,407)
|
$25.74
|
(622)
|
$22.02
|
(1,001)
|
$17.89
|
||||
Expired or Forfeited
|
(23)
|
$40.37
|
(17)
|
$34.66
|
(112)
|
$30.45
|
||||
Outstanding at End of Year
|
4,987
|
$36.51
|
5.9
|
$35.9
|
5,722
|
$34.05
|
5,730
|
$31.27
|
||
Exercisable at End of Year
|
2,513
|
$31.47
|
4.1
|
$27.1
|
2,937
|
$27.38
|
2,657
|
$24.40
|
||
Vested and Expected to Vest in the Future at April 30, 2010
|
4,802
|
$36.61
|
5.9
|
$34.2
|
|
Options Outstanding
|
Options Exercisable
|
|||||
Range of
Exercise Prices
|
Number of Options
(in 000’s)
|
Weighted Average Remaining Term (in years)
|
Weighted Average Exercise Price
|
Number of Options
(in 000’s)
|
Weighted Average Exercise Price
|
|
$18.30 to $20.54
|
20
|
1.4
|
$19.58
|
20
|
$19.58
|
|
$21.44 to $23.40
|
96
|
1.3
|
$23.17
|
96
|
$23.17
|
|
$23.56 to $25.32
|
717
|
2.8
|
$25.16
|
717
|
$25.16
|
|
$31.89 to $38.78
|
2,908
|
6.1
|
$34.93
|
1,680
|
$34.77
|
|
$47.55 to $48.46
|
1,246
|
7.7
|
$48.00
|
-
|
-
|
|
Total/Average
|
4,987
|
5.9
|
$36.51
|
2,513
|
$31.47
|
2010
|
2009
|
2008
|
|||
Restricted Shares
|
Weighted Average Grant Date Value
|
Restricted Shares
|
Restricted Shares
|
||
Nonvested Shares at Beginning of Year
|
682
|
$37.81
|
1,096
|
814
|
|
Granted
|
363
|
$35.04
|
308
|
307
|
|
Change in shares due to performance
|
191
|
$48.31
|
(459)
|
211
|
|
Vested and Issued
|
(292)
|
$35.00
|
(228)
|
(224)
|
|
Forfeited
|
(18)
|
$41.08
|
(35)
|
(12)
|
|
Nonvested Shares at End of Year
|
926
|
$39.71
|
682
|
1,096
|
For the years ended April 30,
|
|||
2010
|
2009
|
2008
|
|
Revenue
|
|||
Scientific, Technical, Medical and Scholarly
|
$986,683
|
$969,184
|
$975,797
|
Professional/Trade
|
429,988
|
403,113
|
457,286
|
Higher Education
|
282,391
|
239,093
|
240,651
|
Total
|
$1,699,062
|
$1,611,390
|
$1,673,734
|
Direct Contribution to Profit
|
|||
Scientific, Technical, Medical and Scholarly
|
$405,241
|
$399,156
|
$384,170
|
Professional/Trade
|
100,196
|
89,678
|
130,502
|
Higher Education
|
86,212
|
66,619
|
74,387
|
Total
|
$591,649
|
$555,453
|
$589,059
|
Shared Services and Administration Costs
|
|||
Distribution
|
$(110,858)
|
$(112,961)
|
$(116,147)
|
Technology Services
|
(103,154)
|
(93,413)
|
(95,412)
|
Finance
|
(47,294)
|
(45,937)
|
(49,684)
|
Other Administration
|
(87,751)
|
(84,664)
|
(102,605)
|
Total
|
$(349,057)
|
$(336,975)
|
$(363,848)
|
Operating Income
|
$242,592
|
$218,478
|
$225,211
|
Foreign Exchange Losses
|
(10,883)
|
(11,759)
|
(2,863)
|
Interest Expense & Other, net
|
(31,500)
|
(42,244)
|
(60,820)
|
Income Before Taxes
|
$200,209
|
$164,475
|
$161,528
|
Total Assets
|
|||
Scientific, Technical, Medical and Scholarly
|
$1,417,276
|
$1,380,991
|
$1,715,292
|
Professional/Trade
|
474,428
|
462,482
|
506,838
|
Higher Education
|
157,816
|
165,839
|
160,292
|
Corporate/Shared Services
|
266,682
|
214,396
|
193,793
|
Total
|
$2,316,202
|
$2,223,708
|
$2,576,215
|
Expenditures for Other Long Lived Assets
|
|||
Scientific, Technical, Medical and Scholarly
|
$97,329
|
$95,417
|
$83,464
|
Professional/Trade
|
50,733
|
55,433
|
50,638
|
Higher Education
|
19,455
|
36,287
|
20,117
|
Corporate/Shared Services
|
42,390
|
14,498
|
15,967
|
Total
|
$209,907
|
$201,635
|
$170,186
|
Depreciation and Amortization
|
|||
Scientific, Technical, Medical and Scholarly
|
$52,215
|
$51,045
|
$52,101
|
Professional/Trade
|
32,191
|
31,703
|
32,322
|
Higher Education
|
25,125
|
21,926
|
20,924
|
Corporate/Shared Services
|
13,348
|
11,071
|
10,576
|
Total
|
$122,879
|
$115,745
|
$115,923
|
Revenue
|
Long-Lived Assets
|
||||||||||
2010
|
2009
|
2008
|
2010
|
2009
|
2008
|
||||||
United States
|
$865,519
|
$812,416
|
$856,438
|
$734,512
|
$731,535
|
$702,722
|
|||||
United Kingdom
|
120,953
|
126,190
|
131,642
|
889,921
|
845,681
|
1,203,700
|
|||||
Germany
|
91,954
|
88,336
|
91,130
|
132,783
|
140,507
|
149,403
|
|||||
Asia
|
234,585
|
220,107
|
209,436
|
3,454
|
3,309
|
2,789
|
|||||
Australia
|
79,194
|
65,084
|
76,530
|
57,447
|
44,618
|
48,411
|
|||||
Canada
|
70,566
|
67,189
|
68,609
|
5,635
|
4,424
|
5,073
|
|||||
Other Countries
|
236,291
|
232,068
|
239,949
|
-
|
-
|
-
|
|||||
Total
|
$1,699,062
|
$1,611,390
|
$1,673,734
|
$1,823,752
|
$1,770,074
|
$2,112,098
|
Additions/ (Deductions)
|
|||||||
Description
|
Balance at Beginning of Period
|
Charged to
Cost &
Expenses
|
Deductions From Reserves
(2)
|
Balance at End of Period
|
|||
Year Ended April 30, 2010
|
|||||||
Allowance for Sales Returns
(1)
|
$55,207
|
$102,395
|
$102,291
|
$55,311
|
|||
Allowance for Doubtful Accounts
|
$5,655
|
$3,177
|
$1,973
|
$6,859
|
|||
Allowance for Inventory Obsolescence
|
$36,329
|
$28,699
|
$25,354
|
$39,674
|
|||
Year Ended April 30, 2009
|
|||||||
Allowance for Sales Returns
(1)
|
$55,483
|
$93,738
|
$94,014
|
$55,207
|
|||
Allowance for Doubtful Accounts
|
$8,025
|
$2,019
|
$4,389
|
$5,655
|
|||
Allowance for Inventory Obsolescence
|
$35,420
|
$28,405
|
$27,496
|
$36,329
|
|||
Year Ended April 30, 2008
|
|||||||
Allowance for Sales Returns
(1)
|
$56,148
|
$93,909
|
$94,574
|
$55,483
|
|||
Allowance for Doubtful Accounts
|
$11,206
|
$(638)
|
$2,543
|
$8,025
|
|||
Allowance for Inventory Obsolescence
|
$32,244
|
$22,156
|
$18,980
|
$35,420
|
|
(1)
|
Allowance for sales returns represents anticipated returns net of inventory and royalty costs. The provision is reported as a reduction of gross sales to arrive at revenue and the reserve balance is reported as a reduction of accounts receivable.
|
|
(2)
|
Deductions from reserves include foreign exchange translation adjustments and accounts written off, less recoveries.
|
Name and Age
|
Officer Since
|
Present Office
|
||
Peter Booth Wiley
67
|
2002
|
Chairman of the Board since September 2002 and a Director since 1984.
|
||
William J. Pesce
59
|
1989
|
President and Chief Executive Officer and a Director since 1998.
|
||
Ellis E. Cousens
58
|
2001
|
Executive Vice President and Chief Financial and Operations Officer since 2001.
|
||
Stephen A. Kippur
63
|
1986
|
Executive Vice President; and President, Professional and Trade Publishing since 1998.
|
||
William Arlington
61
|
1990
|
Senior Vice President, Human Resources since 1996.
|
||
Bonnie E. Lieberman
62
|
1990
|
Senior Vice President, Higher Education since 1996.
|
||
Gary M. Rinck
58
|
2004
|
Senior Vice President, General Counsel since 2004.
|
||
Stephen M. Smith
55
|
1995
|
Executive Vice President and Chief Operating Officer since 2009.
|
||
Eric A. Swanson
62
|
1989
|
Senior Vice President, Wiley-Blackwell since 2007 (previously Senior Vice President, Scientific Technical and Medical since 1996).
|
||
Deborah E. Wiley
64
|
1982
|
Senior Vice President, Corporate Communications since 1996.
|
||
Vincent Marzano
47
|
2006
|
Vice President, Treasurer since 2006.
|
||
Edward J. Melando
54
|
2002
|
Vice President, Corporate Controller and Chief Accounting Officer since 2002.
|
||
Michael Preston
42
|
2009
|
Corporate Secretary since 2009.
|
|
Each of the other officers listed above will serve until the next organizational meetings of the Board of Directors of the Company and until each of the respective successors are duly elected and qualified. Deborah E. Wiley is the sister of Peter Booth Wiley. There is no other family relationship among any of the aforementioned individuals.
|
JOHN WILEY & SONS, INC.
|
|||
(Company)
|
|||
By:
|
|||
William J. Pesce
|
|||
President and Chief Executive Officer
|
|||
By:
|
|||
Ellis E. Cousens
|
|||
Executive Vice President and
|
|||
Chief Financial and Operations Officer
|
|||
By:
|
|||
Edward J. Melando
|
|||
Vice President, Controller and
|
|||
Chief Accounting Officer
|
|||
Dated: June 23, 2010
|
|||
/s/ Warren J. Baker
|
/s/ William J. Pesce
|
||
Warren J. Baker
|
William J. Pesce
|
||
/s/ Richard M. Hochhauser
|
/s/ William B. Plummer
|
||
Richard M. Hochhauser
|
William B. Plummer
|
||
/s/ Mathew S. Kissner
|
/s/ Kalpana Raina
|
||
Mathew S. Kissner
|
Kalpana Raina
|
||
/s/ Raymond McDaniel, Jr.
|
/s/ Bradford Wiley II
|
||
Raymond McDaniel, Jr.
|
Bradford Wiley II
|
||
/s/ Eduardo R. Menascé
|
/s/ Peter Booth Wiley
|
||
Eduardo R. Menascé
|
Peter Booth Wiley
|
||
1.1
|
“
Accrued Benefit
” means the greater of (a) the Primary Benefit the Participant would have received if the 1989 SERP had not been terminated, suspended or amended, if such is the case, and the Participant had continued to participate until age 65 multiplied by a fraction the numerator of which is the number of months the Participant participated in the 1989 SERP (including participation in the 1983 Plan) and the denominator of which is the number of months the Participant would have participated until he had attained age 65 if 1989 SERP had not been terminated, suspended or amended, if such is the case, and he had continued to participate until age 65 or (b) the Participant’s Additional Benefit multiplied by a fraction, the numerator of which is the number of months the Participant participated in the 1989 SERP (including participation in the 1983 Plan) and the denominator of which is the number of months the Participant would have participated in the 1989 SERP if he had participated until he attained age 65.
|
1.2
|
“
Additional Benefit
” means an annual benefit in the amount of the excess, if any, of (a) an amount equal to the Participant’s Applicable Percentage times the Participant’s Average Highest Compensation over (b) the sum of the Participant’s Wiley Basic Plan Benefit, as applicable, and the Participant’s Other Retirement Income. The Additional Benefit shall not be reduced as a result of any cost of living or other increase in the Participant’s Wiley Basic Plan Benefit which is effective after commencement of benefit payments to the Participant or his Beneficiary under the Wiley Basic Plan. Notwithstanding the foregoing provisions of this Section 1.2, if the Participant is terminated for “Cause” as defined in Section 6.4, whether before or after a “Change of Control” as defined in Section 6.2, the Additional Benefit shall be deemed to be zero.
|
1.2.1
|
“
409A Additional Benefit
” means the portion, if any, of a Participant’s Additional Benefit in excess of the amount of the Participant’s Grandfathered Income Benefit.
|
1.3
|
“
Affiliate
” shall mean any company which is a member of a controlled group of corporations (as defined in Section 414(b) of the Code) which also includes as a member the Corporation; any trade or business under common control (as defined in Section 414(c) of the Code) with the Corporation; any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Section 414(m) of the Code) which includes the Corporation; and any other entity required to be aggregated with the Corporation pursuant to regulations under Section 414(o) of the Code.
|
1.4
|
“
Annual Salary Rate
” means the Participant's base salary rate in effect on the earlier of the date of the Participant's Separation from Service, death or Disability.
|
1.5
|
“
Applicable Percentage
”, with respect to each Participant, means the percentage of Average Highest Compensation to be used in determining the Participant's Additional Benefit. The Applicable Percentage with respect to each present Participant is set forth in Schedule A and may be increased by resolution of the Committee. In no event shall the Applicable Percentage exceed 65%.
|
1.6
|
“
Average Highest Compensation
” means a Participant's average annual Compensation during the final 36 months of his employment with the Company or an Affiliate immediately preceding the earlier of his Separation from Service, Death or Disability or, if higher, the three consecutive calendar years in which his average Compensation was highest (or if he is employed for less than 36 months, the average annual Compensation during the period of his employment immediately preceding the earlier of his Separation from Service, Death or Disability). For purposes of this definition the term “Compensation” means “Compensation” as defined in the Wiley Basic Plan, except that 100% instead of 50% of any bonuses, incentive pay and overtime pay shall be included and “Compensation” shall not be limited by the provisions of Section 401(a)(17) of the Internal Revenue Code. Notwithstanding the foregoing provisions of this Section 1.6, Compensation for purposes of the 1989 SERP shall not include any amounts paid pursuant to an incentive plan which relates to a period of more than 12 months or any amounts paid pursuant to any plan, arrangement or agreement which expressly excludes such amounts for purposes of the 1989 SERP.
|
1.7
|
“
Beneficiary
” means the person or persons designated by the Participant to receive the Pre-Retirement Survivor Benefit under the 1989 SERP in the event of the Participant's death prior to retirement and the person or persons designated to receive any other benefit payable under the provisions of the 1989 SERP in the event of the Participant’s death. If the Participant has not designated a contingent Beneficiary any Beneficiary may in turn designate a Beneficiary to receive any remaining payments that may be due under the provisions of the 1989 SERP in the event of the first Beneficiary's death. In the event there is no effective designation of a Beneficiary then payment shall be made to the estate of the Participant or, if benefits have actually been paid to a Beneficiary, then to the estate of such Beneficiary. A Participant may, from time to time, revoke or change his Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant’s death or the Participant’s Benefit Commencement Date, if earlier, and in no event shall it be effective as of a date prior to such receipt.
|
1.8
|
“
Benefit Commencement Date
” means the first day of the first period for which an amount is due as an annuity or any other form.
|
1.9
|
“
Board
” means the Board of Directors of the Corporation.
|
1.10
|
“
Code
” means the Internal Revenue Code of 1986, as amended from time to time.
|
1.11
|
“
Committee
” means the Compensation Committee of the Board.
|
1.12
|
“
Company
” means the Corporation with respect to its employees, or with respect to any Participant who is employed by an Affiliate, such Affiliate.
|
1.13
|
“
Corporation
” means the John Wiley & Sons, Inc., a New York corporation, and any successor thereto.
|
1.14
|
“
Disabled
” shall have the meaning set forth in Section 5.1(c).
|
1.15
|
“
Grandfathered Income Benefit
”
means, with respect to a Participant who (i) terminated employment with the Company and all Affiliates prior to January 1, 2005, or (ii) was employed by the Company on April 1, 2005 and who as of that date was (1) a member of the Board of Directors or (2) a 5% owner of the Corporation (as defined in Code Section 416), or (iii) was within two years of attaining age 65, the portion of his benefit that was accrued and vested before January 1, 2005, determined under provisions of the 1989 SERP without regard to any amendments to the 1989 SERP after October 3, 2004 which would constitute a material modification for Code Section 409A purposes, and the provisions of Code Section 409A, the regulations promulgated thereunder and other applicable guidance based on actuarial equivalent assumptions chosen by the Committee in accordance with Code Section 409A.
|
1.16
|
“
Other Retirement Income
” means annual income (determined as of the earlier of a Participant’s Separation from Service, Death, or Disability) payable to a Participant from the following sources:
|
(a)
|
the nonqualified unfunded supplemental plan of the Company adopted by the Board which pays pension benefits which supplement the benefits payable under the Wiley Basic Plan.
|
(b)
|
any other contract, agreement or other arrangement with the Company or an Affiliate (excluding the Wiley Basic Plan, the John Wiley & Sons, Inc. Employees’ Savings Plan and the Deferred Compensation Plan of John Wiley & Sons, Inc.) to the extent it provides retirement or pension benefits.
|
1.17
|
“
Participant
” means an executive employee of the Corporation or an Affiliate listed on Schedule A hereto or a former executive employee who is a Participant in the 1989 SERP pursuant to Section 2(b).
|
1.18
|
“
Plan
” means the John Wiley & Sons, Inc. Supplemental Executive Retirement Plan, as amended from time to time, which shall consist of Part A –the 1989 SERP and Part B –the 2005 SERP. The “2005 SERP” means the 2005 Supplemental Executive Retirement Plan as set forth in Part B of the Plan.
|
1.19
|
“
Primary Benefit
” means an annual benefit determined as follows:
|
(a)
|
The Annual Salary Rate shall be multiplied by 2.5.
|
(b)
|
The result in clause (a) shall be reduced by $50,000.
|
(c)
|
The remainder in clause (b) shall be divided by 5 and the result is the Primary Benefit.
|
1.19.1
|
“
409A Primary Benefit
” means the portion, if any, of the Participant’s Primary Benefit that exceeds the annual amount of his Grandfathered 409A 1989 SERP Benefit.
|
1.20
|
“
Retirement
” means Separation of Service for reasons other than death after reaching age 55 and completing 5 Years of Service.
|
1.21
|
“
Separation from Service
” means a “Separation from Service” as such term is defined in the Income Tax Regulations under Section 409A of the Code as modified by the rules described below:
|
(a)
|
An employee who is absent from work due to military leave, sick leave, or other bona fide leave of absence pursuant to Company policies shall incur a Separation from Service on the first date immediately following the later of (i) the six-month anniversary of the commencement of the leave (twelve month anniversary for a disability leave of absence) or (ii) the expiration of the employee’s right, if any, to reemployment under statute or contract or pursuant to Company policies. For this purpose, a “disability leave of absence” is an absence due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 6 months, where such impairment causes the employee to be unable to perform the duties of his job or a substantially similar job;
|
(b)
|
For purposes of determining whether another organization is an Affiliate of the Company, common ownership of at least 50% shall be determinative;
|
(c)
|
The Corporation specifically reserves the right to determine whether a sale or other disposition of substantial assets to an unrelated party constitutes a Separation from Service with respect to the executive providing services to the seller immediately prior to the transaction and providing services to the buyer after the transaction. Such determination shall be made in accordance with the requirements of Code Section 409A.
|
1.22
|
“
Specified Employee
” means a “specified employee” as such term is defined in the Income Tax Regulations under Section 409A as modified by the rules set forth below:
|
(a)
|
For purposes of determining whether a Participant is a Specified Employee, the compensation of the Participant shall be determined in accordance with the definition of compensation provided under Treas. Reg. Section 1.415(c) 2(d)(3) (wages within the meaning of Code section 340(a) for purposes of income tax withholding at the source, plus amounts excludible from gross income under Section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b), without regard to rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed).
|
(b)
|
The “Specified Employee Identification Date” means December 31, unless the Committee has elected a different date through action that is legally binding with respect to all nonqualified deferred compensation plans maintained by the Company or any Affiliate.
|
(c)
|
The “Specified Employee Effective Date” means the first day of the fourth month following the Specified Employee Identification Date or such earlier date as is selected by the Committee.
|
1.23
|
“
1989 SERP
” means this Part A of the Plan, as amended from time to time.
|
1.24
|
“
Wiley Basic Plan
” means the Employees’ Retirement Plan of John Wiley & Sons, Inc., as the same may be hereafter amended from time to time.
|
1.25
|
“
Wiley Basic Plan Benefit
” means the annual Normal Retirement Benefit (determined as of the earlier of a Participant’s Separation from Service, Death or Disability) payable under the Wiley Basic Plan to a Participant, regardless of any elections with regard to the payment of the benefit made by the Participant or his beneficiary under the Basic Plan.
|
1.26
|
“
Years of Service
” means a Participant's Years of Service (as defined in the Wiley Basic Plan) for purposes of Section 3.01 of such plan. However, in the case of an acquired company, the Participant's service with that company prior to the date of acquisition will not be counted unless such service is recognized for purposes of participation in the Wiley Basic Plan.
|
1.27
|
The masculine gender, where appearing herein, will be deemed to include the feminine gender, and the singular may include the plural, unless the context clearly indicates to the contrary.
|
2.1
|
(a)
|
Each executive of the Company listed on Schedule A shall be a Participant in the 1989 SERP.
|
|
|
(b)
|
Any other individual who was a Participant in the 1989 SERP on December 31, 2004 and who terminated employment with the Corporation and all Affiliates on or prior to that date shall be a Participant.
|
|
(c)
|
Notwithstanding any plan provision to the contrary, an executive of the Company who is accruing benefits (or currently has an accrued benefit) under the 2005 SERP is not eligible to participate in the 1989 SERP.
|
2.2
|
Participation under the Plan shall terminate on the date the Participant incurs a Separation from Service with the Company and all Affiliates or ceases to accrue Years of Service under the provisions of Section 1.26 if earlier, unless at that time the Participant is entitled to a benefit under Section 3 or 5.
|
3.1
|
Post Retirement Income Benefit
|
(a)
|
Subject to the provisions of Section 4 and 8, there shall be paid to each Participant who incurs a Separation from Service on or after the date he attains age 65 (or completes five Years of Service, whichever occurs later), a Post Retirement Income Benefit commencing as of the first of the month coincident with or next following the date of his Retirement, which date shall be his Benefit Commencement Date. Such Post Retirement Income Benefit shall be equal to ten annual payments of the Participant’s Primary Benefit or Additional Benefit whichever is greater, distributed to such Participant in accordance with the provisions of Section 3.5.
|
(b)
|
The Committee may, in its sole discretion, increase the benefit payable to a Participant who retires more than one year after attaining age 65 (or after five Years of Service, if later) in order to compensate the Participant in whole or in part for the delay in payment.
|
(c)
|
Except as otherwise provided in Section 3.6, the first payment of a Participant’s Post Retirement Income Benefit in excess of his Grandfathered Income Benefit shall be made within 60 days of the Participant’s date of Retirement.
|
3.2
|
Early Retirement
|
(a)
|
Subject to the provisions of Section 4 and 8, if the Participant incurs a Separation from Service on or after attaining age 55 and completing at least five Years of Service but prior to attaining age 65, then he shall be entitled to an Early Retirement Income Benefit commencing, except as otherwise provided in paragraph (c) below or in Appendix A, as of the first day of the month following his Retirement, which date shall be his Benefit Commencement Date. Such Early Retirement Benefit shall be equal to ten annual payments of the Participant’s Primary Benefit or the Participant’s Additional Benefit, whichever is greater, reduced by 1/12 of 4 percent of itself for each month by which such payment (or portion thereof) commences prior to the end of the month in which the Participant attains age 65, provided, however, that such reduction shall not apply if the Participant has attained age 62 and completed 20 or more Years of Service on the date of his Retirement, and distributed in accordance with provisions of Section 3.5.
|
(b)
|
Except as otherwise provided in Section 3.6 the first payment to a Participant’s Early Retirement Income in excess of his Grandfathered Income Benefit shall be made within 60 days of the date of such Participant’s Retirement or such later date as elected by the Participant.
|
(c)
|
Such Participant may elect in accordance with the provisions of Section 409A of the Code, the regulations thereunder and any other applicable guidance (including the transition rules) and the procedures established by the Committee to have the payment of the portion of his Early Retirement Benefit in excess of his Grandfathered Benefit commence on a later date but not later than the month following the month in which he attains age 65. If such election is made after December 31, 2008, it shall be subject to the following rules:
|
|
(i)
|
the election will not become effective until 12 months after the date the election is made, and
|
|
(ii)
|
the payment of such Benefit shall be delayed at least five years from the date such payment would otherwise have been made absent this election (disregarding any delay under the provisions of Section 3.6).
|
3.3
|
Pre-Retirement Survivor Benefit
|
|
(a)
|
There shall be paid to the Beneficiary of each Participant who dies prior to age 65 (or prior to having five Years of Service, if later) and prior to incurring a Separation from Service, a Pre-Retirement Survivor Benefit commencing the month following the month in which the Participant’s death occurs. Such benefit shall consist of ten annual payments where each payment is equal to one-half of the Participant's Primary Benefit or the Participant's Additional Benefit, whichever is greater. For purpose of determining the amount of such Survivor Benefit, the Participant's Additional Benefit shall be computed by substituting the annual amount payable to the Participant's surviving spouse or Beneficiary under the Wiley Basic Plan or under any plan, contract, agreement or, arrangement referred to in Section 1.16 hereof assuming payments thereunder commence as of the first day of the month following the month in which the Participant’s death occurs in place of the Participant's Wiley Basic Plan Benefit and Other Retirement Income as defined in Section 1 of the 1989 SERP.
|
|
(b)
|
(i)
|
If a Participant’s Pre-Retirement Survivor Benefit is determined on the basis of his Primary Benefit, his Survivor Benefit attributable to his 409A Primary Benefit shall be paid annually for ten years.
|
|
(ii)
|
If a Participant’s Pre-Retirement Survivor Benefit is determined on the basis of his Additional Benefit, the Pre-Retirement Survivor Benefit attributable to his 409A Additional Benefit shall be paid annually for ten years, unless the Participant elects in writing in accordance with the procedures established by the Committee, to convert that portion of the Pre-Retirement Survivor Benefit into an actuarially equivalent annuity payable for the life of his named Beneficiary. Such actuarially equivalence shall be determined as set forth in Section 3.5(b). To be effective, such election must be completed by December 31, 2008.
|
3.4
|
Termination of Employment
|
|
(a)
|
Subject to the provisions of Sections 4 and 8, in the event a Participant incurs a Separation from Service prior to age 65 other than on account of death or Disability and he does not qualify for early retirement as provided in Section 3.2 hereof, then the Participant shall be entitled to a Termination Benefit commencing, except as otherwise provided below or in Appendix A, as of the first of the month following the Participant’s attainment of age 55 or date of Separation from Service, if later, which date shall be his Benefit Commencement Date unless he makes an election to delay payments as provided in paragraph (c) below. Such Termination Benefit shall consist of ten annual payments of the Participant’s Accrued Benefits, reduced by 1/12 of 4 percent of itself for each month by which such payment (or portion thereof) commences before the end of the month in which the Participant attains age 65.
|
|
(b)
|
Except as otherwise proved in Section 3.6, the first payment of a Participant’s Termination Benefit in excess of his Grandfathered Income Benefit shall be made within 60 days of the Participant’s Benefit Commencement Date.
|
|
(c)
|
Such Participant may elect in accordance with the provisions of Section 409A of the Code, the regulations thereunder and any other applicable guidance (including the transition rules) and the procedures established by the Committee, to have the payment of the portion of his Termination Benefit in excess of his Grandfathered Benefit commence on a later date but not later than the month following the month in which he attains age 65. If such election is made after December 31, 2008, it shall be subject to the following rules:
|
|
(i)
|
the election will not become effective until 12 months after the date the election is made, and
|
|
(ii)
|
the payment of such Benefit shall be delayed at least five years from the date such payment would otherwise have been made (disregarding any delay under the provisions of Section 3.6).
|
3.5
|
Form of Payment
|
(a)
|
If a Participant’s benefit due under the provisions of Section 3.1, 3.2 or 3.4 is determined on the basis of his Primary Benefit, the portion of such Primary Benefit equal to his 409A Primary Benefit shall be paid annually for ten years. In the event the Participant dies on or after his Separation from Service and before receiving all ten annual payments, the remaining payments shall be paid to his Beneficiary.
|
(b) |
(i)
|
If the Participant’s benefit due under the provisions of Section 3.1, 3.2 or 3.4 is determined on the basis of his Additional Benefit, the portion of such Participant’s Benefit due under the provisions of Section 3.1, 3.2 or 3.4 equal to his 409A Additional Benefit shall be paid annually for ten years, unless the Participant elects in writing to convert all or a portion of such 409A Additional Benefit into an annuity of equivalent actuarial value, described in paragraph (c) of this Section. To be effective, such election must be completed and filed with the Company no later than December 31, 2008.
|
|
(ii)
|
If any portion of such Participant’s Benefit is to be paid in ten annual installments and the Participant dies on or after his Separation from Service and before receiving all ten annual payments the remaining payments shall be paid to his Beneficiary.
|
|
(iii)
|
For purposes of this Section 3.5(b), equivalent actuarial value shall be determined on the basis of the IRS Mortality Table and the IRS Interest Rate. The “IRS Mortality Table” shall mean the mortality table prescribed by the Secretary of Treasury under Section 417(e)(3)(A)(ii)(I) of the Code as in effect on December 31, 2007. The “IRS Interest Rate” is the annual rate of interest on 30 year Treasury Securities as published by the Commissioner of Internal Revenue in the calendar month preceding the month in which the Participant’s Separation from Service occurs.
|
|
(c)
|
Notwithstanding the foregoing, and subject to paragraph (e) below, if a Participant has on file a valid election to receive any portion of his 409A Additional Benefit due under the provisions of Section 3.1, 3.2 or 3.4 (or if applicable, Section 5) as an annuity, such Participant may elect any time prior to his applicable Benefit Commencement Date to convert the portion of said benefit to be paid in an annuity into an optional annuity benefit of Equivalent Actuarial value as provided in one of the options set forth below:
|
|
Option 1:
|
“Life Annuity”. A modified benefit payable monthly for the life of the Participant.
|
|
Option 2:
|
“Contingent Annuity”. A modified benefit payable monthly during the Participant’s life and after his death payable at the rate of 50%, 75% or 100% (as elected by the Participant) of the rate of his modified amount during the life of, and to the Beneficiary named by him on his Benefit Commencement Date.
|
|
Option 3:
|
“Pop Up Option”. A modified benefit payable under Option 2, provided that in the event the Beneficiary named by the Participant at the time he elected the form of payment predeceases the Participant, the annual benefit payable to the Participant after the Beneficiary’s death shall equal the Benefit that would have been payable pursuant to Option 1.
|
|
Option 4:
|
“Certain & Life Option”. A modified benefit payable monthly for the life of the Participant, however if the Participant dies within the 10, 11, 12, 13, 14 or 15 year period (as elected by the Participant) commencing on the Participant’s Benefit Commencement Date payments in that reduced amount will be payable until the 10, 11, 12, 13, 14, or 15th anniversary of his Benefit Commencement Date.
|
|
(d)
|
Such Equivalent Actuarial value shall be defined as set forth in Item I of Appendix A of the Wiley Basic Plan.
|
|
(e)
|
Notwithstanding the foregoing, subject to the provisions of Section 409A of the Code if applicable, a Participant’s election to receive any portion of his 409A Additional Benefit payable under Section 3.1, 3.2, or 3.4, (or if applicable, Section 5) in an optional form as described in paragraph (c) above shall be effective as of the Participant’s Benefit Commencement Date, provided that the Participant makes and submits to the Committee his election of such optional form prior to his Benefit Commencement Date. A Participant who fails to elect an optional form of annuity payment in a timely manner shall receive the portion of his benefit payable under Section 3.1, 3.2, 3.4, or Section 5 to be distributed in the form of an annuity, in the form of a 14 Year Certain & Life annuity.
|
3.6
|
Timing of Payment for “Specified Employees”. Notwithstanding any provision of the 1989 SERP to the contrary if a Participant is classified as a “Specified Employee” on his date of Separation from Service, the actual payment of the portion of his benefit due under the provisions of Section 3.1, 3.2, 3.4 or Section 4, which is in excess of his Grandfathered Income Benefit on account of such Participant’s Separation from Service with the Company and all Affiliates (for reasons other than death or Disability) shall not commence prior to the first day of the seventh month following the Participant’s Separation from Service. For avoidance of doubt, the provisions of this Section 3.6 do not apply to the portion of a Participant’s Benefit equal to his Grandfathered Income Benefit or any benefit payable to or on behalf of the Participant pursuant to the provisions of Section 3.3 or Section 5. Any payment to the Participant which he would have otherwise received under Section 3.1, 3.2, or 3.4, or Section 4, during the six-month period immediately following such Participant’s Separation from Service shall be accumulated, with interest, compounded on a monthly basis, at the Applicable Interest Rate, and paid within 60 days of the first day of the seventh month following the Participant’s Separation from Service. For purposes of this Section 3.6 the Applicable Interest Rate is the one year U.S. Treasury rate (constant maturities) as published on the last business day of the calendar month preceding the date the Participant’s Separation from Service occurs.
|
4.1
|
In the event there is a Change of Control as hereinafter defined and, within two years following such Change of Control (a) the Participant’s employment is terminated by the Company except for “Cause”, or (b) the Participant incurs a “Separation from Service” for “Good Reason” as those terms are hereinafter defined, then notwithstanding any other provisions (other than Section 3.6) of the 1989 SERP to the contrary and in lieu of any other benefit in excess of his Grandfathered Income Benefit to which the Participant may be entitled under the 1989 SERP, the Participant shall be entitled to a lump sum payment, payable subject to the provisions of Section 3.6, within 60 days after such Separation from Service equal to the then present value of the Post Retirement Income Benefit in excess of his Grandfathered Income Benefit to which the Participant would have been entitled on the date of such Separation from Service and, in the case of a Participant who has not yet reached age 65, unreduced for commencement prior to the end of the month in which he attains age 65. In determining the Post Retirement Income Benefit for purposes of the preceding sentence, the Wiley Basic Plan Benefit shall be deemed to be the annual benefit to which the Participant will be or is entitled at age 55 or the date of such Separation from Service, whichever is later. The present value of such payments shall be determined by multiplying such Post Retirement Income Benefit, as determined pursuant to this Section 6.1, by the "Present Value Factor” as hereinafter defined.
|
4.2
|
“
Change of Control
” shall mean an event which shall occur if there is: (i) a change in the ownership of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership of a substantial portion of the assets of the Corporation.
|
4.3
|
Cause
|
|
Termination of a Participant's employment by the Company for "Cause" shall mean Separation from Service upon (a) the willful and continued failure by the Participant substantially to perform his duties with the Company to the best of his ability (other than any such failure resulting from his incapacity due to physical or mental illness), after a demand for such performance is delivered to the Participant by the Chairman of the Board or President of the Corporation which specifically identifies the manner in which such executive believes that the Participant has not substantially performed his duties to the best of his ability, or (b) the willful engaging by the Participant in illegal misconduct materially and demonstrably injurious to the Company. For purposes of this Section, no act, or failure to act, on the Participant's part shall be considered "willful" unless done, or omitted to be done, by the Participant not in good faith and without reasonable belief that his action or omission was lawful and in the best interest of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be lawful and done, or omitted to be done, by the Participant in good faith and in the best interest of the Company. Notwithstanding the foregoing, the Participant shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Participant a Notice of Termination containing or attached thereto a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for the purpose (after reasonable notice to the Participant and an opportunity for the Participant, together with his counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Participant was guilty of conduct set forth above in clauses (a) and (b) in this section and specifying the particulars thereof in detail.
|
|
(a)
|
An adverse change in the Participant's status or position(s) as an executive of the Company as in effect immediately prior to the Change of Control, including, without limitation, any adverse change in his status or position as a result of a material diminution in his duties or responsibilities or a material change in his business location or the assignment to him of any duties or responsibilities which are inconsistent with such status or position, or any removal of the Participant from or any failure to reappoint or reelect him to any office or position previously held;
|
|
(b)
|
A reduction by the Company in Participant's base salary as in effect immediately prior to the Change of Control or in the number of vacation days to which Participant is then entitled under the Company's normal vacation policy as in effect immediately prior to the Change of Control;
|
|
(c)
|
The taking of any action by the Company (including the elimination of a plan without providing substitutes therefore or the reduction of Participant's awards thereunder) that would substantially diminish the aggregate projected value of the Participant's awards under the Company's incentive, bonus, stock option or restricted stock plans in which the Participant was participating at the time of a Change of Control of the Company;
|
|
(d)
|
The taking of any action by the Company that would substantially diminish the aggregate value of the benefits provided the Participant under the Company's medical, health, accident, disability, life insurance, thrift or retirement plans in which the Participant was participating at the time of a Change of Control of the Company; or
|
|
(e)
|
Substantial and continuing harassment of the Participant by other Company personnel, including but not limited to verbal abuse, insulting or demeaning verbal and written communications, and orders or directions which are clearly inappropriate to Participant's executive status, provided the Participant gives the Company written notice of such harassment in reasonable detail and the Company fails to promptly take corrective action to stop such harassment.
|
4.5
|
The “Present Value Factor” is the factor which when applied to a payment, would represent the equivalent actuarial value to receive such amount annually for life when computed on the basis of the IRS Mortality Table and the IRS Interest Rate. The “IRS Mortality Table” shall mean the mortality table prescribed by the Secretary of Treasury under Section 417(e)(3)(A)(ii)(I) of the Code as in effect on December 31, 2007. The “IRS Interest Rate” is the annual rate of interest on 30 year Treasury Securities as published by the Commissioner of Internal Revenue in the calendar month preceding the month in which the Participant’s Separation from Service occurs.
|
4.6
|
Notice of Termination
|
|
Any termination by the Company pursuant to Section 4.3 above or by the Participant pursuant to Section 4.4 above shall be communicated by written Notice of Termination to the Participant or the Company, as the case may be. For purposes of the 1989 SERP, a "Notice of Termination" shall mean a notice specifying the termination provision in the 1989 SERP relied upon and setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Participant's employment under the provision so specified.
|
4.7
|
In the event the amount which a Participant is entitled to receive pursuant to Section 4.1 is not paid in full to the Participant within 60 days after his Separation from Service then the Participant shall also be entitled to recover from the Company reasonable legal expenses and disbursements incurred in establishing his right to and collecting such amount.
|
4.8
|
The provisions of this Section 4 shall not apply to any Participant who would be deemed an individual described in Section 422A(b)(6) of the Code, as presently in effect (relating to an individual who, directly and by attribution, is deemed to own more than 10% of the voting power of a corporation).
|
|
5.1
|
(a)
|
In the event a Participant who is actively employed by the Company or an Affiliate become Disabled, as that term is hereinafter defined, prior to the month in which he attains age 65 (or completes 5 years of service, if later) (his “Normal Retirement Date”), or his Separation from Service, if earlier, then notwithstanding any other provision of the 1989 SERP to the contrary and in lieu of any other benefit to which the Participant may be entitled under the 1989 SERP, the Participant shall be entitled to a lump sum payment, payable within 60 days after the Committee’s determination regarding such Disability is finalized, equal to the then present value of the Post Retirement Income Benefit determined under Section 3.1 on the basis of the Participant’s Average Highest Compensation and Years of Service as of his Disability Date (as that term is herein defined), unreduced for commencement prior to the Participant’s Normal Retirement Date. The present value of such payments shall be determined by multiplying such Post Retirement Income Benefit, as determined pursuant to this Section 5.1 by the Present Value Factor as defined below. Notwithstanding the foregoing a Participant may elect in accordance with procedures established by the Committee to receive such Disability Benefit in excess of his Grandfathered Income Benefit in the form of an annuity as described in Section 3.6(c). To be effective, such election must be completed and submitted to the Company no later than December 31, 2008.
|
|
(b)
|
The “Present Value Factor” solely for purposes of this Section 5.1 is the factor which when applied to a payment, would represent the equivalent actuarial value to receive such amount annually for life when computed on the basis of the IRS Mortality Table and the IRS Interest Rate. The “IRS Mortality Table” shall mean the mortality table prescribed by the Secretary of Treasury under Section 417(e)(3)(A)(ii)(I) of the Code as in effect on December 31, 2007. The “IRS Interest Rate” is the annual rate of interest rate on 30 year Treasury Securities as published by the Commissioner of Internal Revenue in the calendar month preceding the month in which the Participant’s Disability Date occurs.
|
|
(c)
|
For purposes of this Section 5, a Participant is considered Disabled if such Participant incurs any medically determined physical or mental impairments that meet the requirements set forth under Treasury Regs. Section 1.409A-3(i)(4)(i) or (ii), or any subsequent guidance thereto. The Participant’s Disability Date shall be the date determined by the Committee on a basis uniformly applicable to all persons similarly situated.
|
6.1
|
The Committee shall have the exclusive responsibility and complete discretionary authority to interpret the 1989 SERP, to adopt, amend, and rescind rules and regulations for the administration of the 1989 SERP, and generally to operate, manage and administer the 1989 SERP and to make all determinations in connection with the 1989 SERP as may be necessary or advisable. All such actions of the Committee shall be conclusive and binding upon all Participants and Beneficiaries. The Committee may employ and rely on such legal counsel, actuaries, accountants and agents as it may deem advisable to assist in the administration of the Plan
|
6.2
|
To the extent permitted by law, all agents and representatives of the Committee shall be indemnified by the Company and held harmless against any claims and the expenses of defending against such claims, resulting from any action or conduct relating to the administration of the Plan, except claims arising from gross negligence, willful neglect or willful misconduct.
|
7.1
|
The Plan may not be terminated or suspended or modified or amended in any manner which adversely affects any Participant at any time after a Change of Control (as defined in Section 6.2) shall have occurred. Subject to the foregoing provisions of this Section 5.1, the Board may, in its sole discretion, terminate, suspend or amend the Plan at any time or from time to time, in whole or in part. However, no termination, suspension or amendment of the Plan may adversely affect a Participant's accrued benefit under the Plan, or adversely affect a retired Participant's right or the right of a Beneficiary to receive or to continue to receive a benefit in accordance with the Plan as in effect on the date immediately preceding the date of such termination, suspension or amendment. In the event of such suspension or termination, the Company shall continue to maintain the Plan until all benefits under the Plan are distributed in accordance with the Participant’s elections, where applicable the provisions of Section 409A of the Code, the regulations promulgated thereunder and other applicable guidance.
|
7.2
|
Nothing contained herein will confer upon any Participant the right to be retained in the service of the Company or any Affiliate, nor will it interfere with the right of the Company or any Affiliate to discharge or otherwise deal with Participants without regard to the existence of the Plan.
|
7.3
|
The Corporation has funded its obligations under the Plan by purchasing certain insurance policies on the lives of the Participants but it shall have no obligation to do so in the future or to continue any such policies in effect. No Participant or Beneficiary shall have any interest whatsoever in any such policies, which shall be the sole property of the Corporation. Participants and their Beneficiaries shall look solely to the general credit of the Corporation for payment of benefits under the Plan. The Corporation reserves the right to establish one or more trusts to provide alternative sources of benefit payments under the Plan. The existence of any such trust or trusts shall not relieve the Corporation of any liability to make benefit payments under the Plan, but to the extent any benefit payments are made from any such trust, such payment shall be in satisfaction of and shall reduce the Corporation's liabilities under this Plan.
|
8.1
|
Notwithstanding any other provision of the 1989 SERP except for the provisions of Section 8.2, to the contrary, no payments or further payments will be made under the 1989 SERP with respect to the portion of his 1989 SERP benefit in excess of his Grandfathered Income Benefit to a Participant or to his Beneficiary if (a) the Participant, directly or indirectly, during the 24-month period after his Separation from Service, is employed by, renders services to or participates in the management, operation or control of, or serves as advisor or consultant to any business enterprise which is engaged in any type of business activity conducted by the Company or any of its subsidiaries at the time of such termination of employment and which enterprise is in direct and substantial competition with the Company or any such subsidiary or (b) during the period of Participant’s employment at the Company and its Affiliates and for twelve months following his Separation from Service, the Participant does not, either on his own behalf or on behalf of any other person or entity, directly or indirectly, (i) solicit any person or entity that is a customer of the Company or its Affiliates, or has been a customer of the Company or its Affiliates during the prior twelve (12) months, to purchase any products or services the Wiley Companies provides to the customer, or (ii) interfere with any of the Company or its Affiliates business relationships.
|
8.2
|
The provisions of Section 8 shall not apply (a) following a Change of Control as defined in Section 4.2, or (b) if the Participant's employment is terminated by the Company without Cause as defined in Section 4.3 or by the Participant for Good Reason as defined in Section 4.4.
|
9.1
|
Nonalienation
|
|
To the maximum extent permitted by law, no benefit under the 1989 SERP shall be assignable or subject in any manner to alienation, sale, transfer, claims of creditors, pledge, bankruptcy, attachment or encumbrances ofany kind.
|
9.2
|
Funding
|
|
No special or separate fund shall be established, and no segregation of assets shall be made, to assure the payments thereunder. No Participant hereunder shall have any right, title, or interest whatsoever in any specific assets of the Corporation. Nothing contained in the Plan and no action taken pursuant to its provisions shall create or be construed to create a trust of any kind or a fiduciary relationship between the Corporation and a Participant or any other person. To the extent that any person acquires a right to receive payments under the 1989 SERP, such right shall be no greater than the right of any unsecured creditor of the Corporation.
|
9.3
|
Facility of Payment
|
|
In the event that the Committee shall find that a Participant or Beneficiary is incompetent to care for his affairs or is a minor, the Committee may direct that any benefit payment due him, unless claim shall have been made therefore by a duly appointed legal representative, be paid on his behalf to his spouse, a child, a parent or other relative, and any such payment so made shall thereby be a complete discharge of the liability of the Corporation and the 1989 SERP for that payment.
|
9.4
|
Withholding of Taxes
|
|
The Company shall have the right to deduct from each payment to be made under the 1989 SERP any required withholding taxes.
|
9.5
|
Expenses
|
|
All administrative expenses of the 1989 SERP and all benefits under the 1989 SERP shall be paid from the general assets of the Corporation.
|
9.6
|
Mergers/Transfers
|
|
This 1989 SERP shall be binding upon and inure to the benefit of the Corporation and its successors and assignees and the Participant, his designees and his estate. Nothing in the 1989 SERP shall preclude the Corporation from consolidating or merging into or with, or transferring all or substantially all of its assets to, another corporation which assumes the 1989 SERP and all obligations of the Corporation hereunder. Upon such a consolidation, merger or transfer of assets and assumption, the terms “Corporation” and “Company” shall refer to such other corporation and the 1989 SERP shall continue in full force and effect.
|
9.7
|
Claims Procedure
|
|
The Committee shall provide adequate notice in writing to any Participant, former Participant or Beneficiary whose claim for a withdrawal or payment under the 1989 SERP has been denied, setting forth the specific reasons for such denial. A reasonable opportunity shall be afforded to any such Participant, former Participant or Beneficiary for a full and fair review by the Committee of a decision denying the claim. The Committee’s decision on any such review shall be final and binding on the Participant, former Participant or Beneficiary and all other interested persons.
|
9.8
|
Acceleration of or Delay in Payments
|
|
The Committee, in its sole and absolute discretion, may elect to accelerate the time or form of payment of a benefit owed to the Participant hereunder, provided such acceleration is permitted under Treas. Reg. Section 1.409A-3(j)(4). The Committee may also, in its sole and absolute discretion, delay the time for payment of a benefit owed to the Participant hereunder, to the extent permitted under Treas. Reg. Section 1.409A-2(b)(7).
|
9.9
|
Indemnification
|
|
The Company, the members of the Committee, and the officers, employees and agents of the Company shall, unless prohibited by any applicable law, be indemnified against any and all liabilities arising by reason of any act or failure to act in relation to the Plan including, without limitation, expenses reasonably incurred in the defense of any claim relating to the Plan, amounts paid in any compromise or settlement relating to the Plan and any civil penalty or excise tax imposed by any applicable statue, if
|
(a)
|
the act or failure to act shall have occurred
|
|
(i)
|
in the course of the person’s service as an officer, employee or agent of the Company or as a member of the Committee, or as the Plan Administrator, or
|
|
(ii)
|
in connection with a service provided with or without charge to the Plan or to the Participants or Beneficiaries of the Plan, if such service was requested by the Committee or the Plan Administrator; and
|
(b)
|
the act or failure to act is in good faith and in, or not opposed to, the best interests of the Company.
|
9.11
|
Construction
|
(a)
|
The Plan is intended to constitute an unfunded deferred compensation arrangement for a select group of management or highly compensated employees and therefore exempt from the requirements or Sections 201, 301 and 401 of ERISA. All rights hereunder shall be governed by and construed in accordance with the laws of the State of New York
|
(b)
|
The captions preceding the sections and articles hereof have been inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provisions of the Plan.
|
Section 3.2
|
Early Retirement
. Notwithstanding any provision to the contrary, the portion of a Participant’s Early Retirement Benefit equal to his Grandfathered Income Benefit shall commence as of the first month following the month the date the Participant attains age 65, provided, however, such Participant may elect, in accordance with procedures established by the Committee, to have payment commence on a date prior to age 65. Such election must be filed with the Company prior to the end of the calendar year preceding the year payments are scheduled to begin and no later than six months preceding the date payments are schedule to begin after said election.
|
Section 3.3
|
Pre-Retirement Survivor Benefit.
The portion of a Participant’s Pre-Retirement Survivor Benefit attributable to his Grandfathered Income Benefit shall be paid in annual installments.
|
Section 3.4
|
Termination of Employment.
Notwithstanding any provisions to the contrary, the portion of a Participant’s Termination Benefit equal to his Grandfathered Income Benefit shall commence as of the first month following the month the Participant attains age 65, provided, however, such Participant may elect, in accordance with procedures established by the Company, to have payment of his Grandfathered Income Benefit commence on a date prior to age 65. Such election must be made and filed in accordance with the provisions of Section 3.2 of the Appendix.
|
Section 3.5
|
Form of Payment.
The portion of a Participant’s benefit due under the provisions of Section 3.1, 3.2 or 3.4 equal to his Grandfathered Income Benefit shall be paid in ten annual installments.
|
Section 4
|
With respect to a Participant’s Grandfathered Income Benefit as defined in Section 1.15 of the foregoing provisions of this 1989 SERP, for purposes of this Section, effective on or after January 1, 2009, Change of Control as defined in Section 4.2 shall mean the later of a Change of Control event as defined under the provisions of the 1989 SERP as in effect on October 3, 2004 or a Change of Control event as defined in Section 4.2 of the foregoing provisions of the 1989 SERP.
|
Section 5.
|
For purposes of this Section, effective on or after January 1, 2009, the term Disabled or Disability shall have the meaning set forth in Section 5.1(c) of 1989 SERP.
|
Name
|
Applicable Percentage
|
Status as of January 1, 2009
|
Arlington, William
Clifford, Peter
Collins, Kenneth
Conter, Thomas
Cousens, Ellis
Ellis, Jeanne
(1)
Johnson, Richard
King, Timothy
Kippur, Stephen
Lesure, Alan
Lieberman, Bonnie
Mauer, Jerald
McCabe, Kevin
McCullough, Richard
Nagan, Douglas
Pesce, William
Rinck, Gary
Rudick, Richard
Seminoff, Carole
(2)
Swanson, Eric
Wilder, Robert
Wiley, Deborah
Wiley, Peter
Wiley, W. Bradford II
Youngstein, Morton
(1)
Jeanne Ellis is the spouse of Charles Ellis, who passed away on 05/04/2008.
(2)
Carole Seminoff is the spouse of Serje Seminoff, who passed away on 04/13/2008.
|
50%
50%
N/A
50%
55%
65%
N/A
50%
55%
N/A
50%
55%
55%
50%
55%
65%
50%
55%
N/A
50%
55%
50%
50%
50%
N/A
|
Active
In Receipt
In Receipt
In Receipt
Active
In Receipt
Deferred
In Receipt
Active
In Receipt
Active
In Receipt
In Receipt
Deferred
In Receipt
Active
Active
In Receipt
In Receipt
Active
Deferred
Active
Active
In Receipt
In Receipt
|
1.1
|
“
Affiliate
” shall mean any company which is a member of a controlled group of corporations (as defined in Section 414(b) of the Code) which also includes as a member the Corporation; any trade or business under common control (as defined in Section 414(c) of the Code) with the Corporation; any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Section 414(m) of the Code) which includes the Corporation; and any other entity required to be aggregated with the Corporation pursuant to regulations under Section 414(o) of the Code.
|
1.2
|
“
Average Highest Compensation
” means a Participant's average annual Compensation during the final 36 months of his employment with the Company or an Affiliate immediately preceding the earlier of his Separation from Service, Death or Disability or, if higher, the three consecutive calendar years in which his average Compensation was highest (or if he is employed for less than 36 months, the average annual Compensation during the period of his employment immediately preceding the earlier of his Separation from Service, Death or Disability). For purposes of this definition the term “Compensation” means “Compensation” as defined in the Wiley Basic Plan, except that 100% instead of 50% of any bonuses, incentive pay and overtime pay shall be included for all years and “Compensation” shall not be limited by the provisions of Section 401(a)(17) of the Code. Notwithstanding the foregoing provisions of this Section 1.2, Compensation for purposes of the 2005 SERP shall not include any amounts paid pursuant to an incentive plan which relates to a period of more than 12 months or any amounts paid pursuant to any plan, arrangement or agreement which expressly excludes such amounts for purposes of the 2005 SERP.
|
1.3
|
“
Beneficiary
” means the person or persons designated by the Participant to receive the Pre-Retirement Survivor Benefit in the event of the Participant’s death prior to his Benefit Commencement Date or the person or persons designated to receive such other benefits payable under the provisions of the 2005 SERP in the event of the Participant's death. In the event there is no effective designation of a Beneficiary in effect on the Participant’s death, then payments under Section 3.3 shall be made to the Participant’s spouse or, however, if no spouse survives, payments under Section 3.3(a) shall not be made and payments under Section 3.3(b) shall be made to the following persons, if living, his issue in equal shares per stripes, if none, then his Beneficiary named under the Corporation’s life insurance policy. If the Participant has not designated a contingent Beneficiary prior to his death, any Beneficiary may in turn designate a Beneficiary to receive any remaining payments that may be due under the provisions of the 2005 SERP in the event of the first Beneficiary's death. A Participant may, from time to time, revoke or change his Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant’s death or the Participant’s Benefit Commencement Date, if earlier, and in no event shall it be effective as of a date prior to such receipt.
|
1.4
|
“
Benefit Commencement Date
” means, unless the Plan specifically provides otherwise, the first day of the first period for which an amount is due as an annuity or any other form.
|
1.5
|
“
Board
” means the Board of Directors of the Corporation.
|
1.6
|
“
Code
” means the Internal Revenue Code of 1986, as amended from time to time.
|
1.7
|
“
Committee
” means the Compensation Committee of the Board.
|
1.8
|
“
Company
” means the Corporation, or with respect to any Participant who is employed by an Affiliate, such Affiliate.
|
1.9
|
“
Corporation
” means John Wiley & Sons, Inc., a New York corporation and any successor thereto.
|
1.10
|
“
Disabled
” shall have the meaning set forth in Section 5.1(c).
|
1.11
|
“
Effective Date
” means April 1, 2005.
|
1.12
|
“
Normal Retirement Age
” means the date the Participant attains age 65 or completes at least five Years of Service, if later.
|
1.13
|
“
Normal Retirement Date
” means the first day of the calendar month coinciding with or next following the Participant’s Normal Retirement Age.
|
1.14
|
“
Other Retirement Income
” means annual income (determined as of the earlier of a Participant’s Separation from Service, death or Disability) payable to a Participant from the following sources:
|
|
(a)
|
the nonqualified unfunded supplemental plan of the Company adopted by the Board which pays pension benefits which supplement the benefits payable under the Wiley Basic Plan, and
|
|
(b)
|
any other contract, agreement or other arrangement with the Company or an Affiliate (excluding the Wiley Basic Plan, the John Wiley & Sons, Inc. Employees’ Savings Plan and the Deferred Compensation Plan of John Wiley & Sons, Inc.) to the extent it provides retirement or pension benefits, and
|
|
(c)
|
to the extent determined by the Committee, the portion of the annual amount of pension, if any, which is or would be payable to the Participant from another employer sponsored plan, attributable to service under that Plan, which is recognized by the Committee as Years of Benefit Service for that Participant for purposes of Section 3.1, and adjusted if necessary as provided in Section 1.23.
|
1.15
|
“
Participant
” means an executive employee of the Corporation or an Affiliate listed on Schedule A hereto who becomes a Participant in the 2005 SERP pursuant to Section 2.
|
1.16
|
“
Plan
” means the John Wiley & Sons, Inc Supplemental Executive Retirement Plan, as amended from time to time, which shall consist of Part A - the 1989 SERP and Part B - the 2005 SERP. The “1989 SERP” means the 1989 Supplemental Executive Retirement Plan as set forth in Part A of the Plan.
|
1.17
|
“
Separation from Service
” means a “Separation from Service” as such term is defined in the Income Tax Regulations under Section 409A of the Code as modified by the rules described below:
|
(d)
|
An employee who is absent from work due to military leave, sick leave, or other bona fide leave of absence pursuant to Company policies shall incur a Separation from Service on the first date immediately following the later of (i) the six-month anniversary of the commencement of the leave (twelve month anniversary for a disability leave of absence) or (ii) the expiration of the employee’s right, if any, to reemployment under statute or contract or pursuant to Company policies. For this purpose, a “disability leave of absence” is an absence due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 6 months, where such impairment causes the employee to be unable to perform the duties of his job or a substantially similar job;
|
(e)
|
For purposes of determining whether another organization is an Affiliate of the Company, common ownership of at least 50% shall be determinative;
|
(f)
|
The Corporation specifically reserves the right to determine whether a sale or other disposition of substantial assets to an unrelated party constitutes a Separation from Service with respect to the Executive providing services to the seller immediately prior to the transaction and providing services to the buyer after the transaction. Such determination shall be made in accordance with the requirements of Code Section 409A.
|
|
Whether a Separation from Service has occurred shall be determined by the Committee in accordance with Code Section 409A, the regulations promulgated thereunder and applicable guidance thereto, as modified by the rules described above. The terms or phrases “terminates employment,” “employment terminated,” or any other similar terminology shall have the same meaning as a “Separation from Service.”
|
1.18
|
“
Specified Employee
” means a “specified employee” as such term is defined in the Income Tax Regulations under Section 409A as modified by the rules set forth below:
|
(d)
|
For purposes of determining whether a Participant is a Specified Employee, the compensation of the Participant shall be determined in accordance with the definition of compensation provided under Treas. Reg. Section 1.415(c) 2(d)(3) (wages within the meaning of Code section 340(a) for purposes of income tax withholding at the source, plus amounts excludible from gross income under Section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b), without regard to rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed).
|
(e)
|
The “Specified Employee Identification Date” means December 31, unless the Committee has elected a different date though action that is legally binding with respect to all nonqualified deferred compensation plans maintained by the Company and all Affiliates.
|
(f)
|
The “Specified Employee Effective Date” means the first day of the fourth month following the Specified Employee Identification Date or such earlier date as is selected by the Committee.
|
1.19
|
“
2005 SERP
” means this Part B of the Plan, as amended from time to time.
|
1.20
|
“
Wiley Basic Plan
” means the Employees’ Retirement Plan of John Wiley & Sons, Inc., as the same may be hereafter amended from time to time.
|
1.21
|
“
Wiley Basic Plan Benefit
" means the annual pension determined as of the earlier of a Participant’s Separation from Service, death or Disability which would be payable pursuant to the provisions of the Wiley Basic Plan to a Participant, regardless of any elections with regard to the form of payment of the benefit made by the Participant or his beneficiary under the Wiley Basic Plan, assuming such pension commenced on the later of the Participant’s Normal Retirement Date or the first day of the month coincident with or next following his date of Separation from Service.
|
1.22
|
“
Years of Benefit Service
” means a Participant's Benefit Service as defined in the Wiley Basic Plan under Section 3.02 of such Plan. However, in the case of an acquired company, the Participant's service with that company prior to the date of acquisition will not be counted unless such service is recognized for purposes of (i) Benefit Service under the Wiley Basic Plan or (ii) benefit accruals under any other nonqualified supplemental plan maintained by the Company. In addition to the foregoing, a Participant may, subject to the approval of the Committee, be granted additional Years of Service for purpose of determining the amount of benefits under the 2005 SERP.
|
1.23
|
“Years of Service”
means a Participant's Years of Service (as defined in the Wiley Basic Plan) for purposes of Section 3.01 of such plan. However, in the case of an acquired company, the Participant's service with that company prior to the date of acquisition will not be counted unless such service is recognized for purposes of participation in the Wiley Basic Plan.
|
1.24
|
The masculine gender, where appearing herein, will be deemed to include the feminine gender, and the singular may include the plural, unless the context clearly indicates to the contrary.
|
2.1
|
(a)
|
Each executive of the Company or an Affiliate who was an active participant in the 1989 SERP on March 31, 2005 and who as of April 1, 2005 is not (i) a member of the Board or (ii) a 5% owner of the Company (as defined in Code Section 416) or (iii) within two years of attaining age 65, shall become a Participant under the 2005 SERP as of the Effective Date subject to the Participant executing a waiver agreement in such form and within the time period as the Committee may direct with respect to any benefit such executive may had accrued under the 1989 SERP.
|
|
|
(b)
|
Any other executive of the Company or an Affiliate designated by the Committee as a Participant shall become a Participant under the 2005 SERP as of the effective date of such designation, subject to the Participant executing a letter of agreement in such form as the Committee may direct.
|
|
(c)
|
Notwithstanding any Plan provision to the contrary, an executive of the Company or an Affiliate who is accruing benefits (or currently has an accrued benefit) under the 1989 SERP is not eligible to participate in the 2005 SERP.
|
2.2
|
Participation under the Plan shall terminate on the date the Participant incurs a Separation from Service from the Company and all Affiliates or ceases to accrue Years of Service under the provisions of Section 1.23, if earlier, unless at that time the Participant is entitled to a benefit under Section 3 or 5.
|
3.1
|
Post Retirement Income Benefit
.
|
|
(a)
|
Subject to the provisions of Section 4 and 8, there shall be paid to each Participant who incurs a Separation from Service on or after the date he attains age 65 (or completes five Years of Service, whichever occurs later), in the form of a life annuity for the life of a Participant, a Post Retirement Income Benefit commencing as of the Participant’s Normal Retirement Date or the first day of the month coincident with or next following his Retirement, if later, which date shall be his Benefit Commencement Date. The annual amount of such Post Retirement Benefit Income shall be equal to:
|
|
(i)
|
two percent of the Participant’s Average Highest Compensation multiplied by the number of his Years of Benefit Service as of his date of Retirement up to 20 years,
|
|
(ii) one percent to the Participant’s Average Highest Compensation multiplied by the number of his Years of Benefit Service as of his date of Retirement in excess of 20 years up to a maximum of 35 years;
|
|
(iii) the sum of the Participant’s Wiley Basic Plan Benefit as applicable, and the Participant’s Other Retirement Income.
|
|
(b)
|
Notwithstanding foregoing, the amount of the Participant’s Post Retirement Income Benefit payable for the Participant’s life under this Section 3.1 shall never be less than the greater of the Additional Benefit or Primary Benefit the Participant would have received under the provisions of the 1989 SERP as in effect on December 31, 2004 determined as if the Participant had terminated employment on December 31, 2004 and commenced payment as of his Normal Retirement Date, or date of Retirement, if later, converted to a single life annuity of equivalent actuarial value. For purpose of this Section 3.1(b), equivalent actuarial value shall be determined on the basis of the IRS Mortality Table and the IRS Interest Rate. The “IRS Mortality Table” shall mean the mortality table prescribed by the Secretary of Treasury under Section 417(e)(3)(A)(ii)(I) of the Code as in effect on December 31, 2007. The “IRS Interest Rate” is the annual rate of interest on 30 year Treasury Securities as published by the Commissioner of Internal Revenue in the calendar month preceding the month in which the Participant’s Separation from Service occurs.
|
|
(c)
|
Subject to the provisions of Section 3.6, the first payment under this Section 3.1 shall be made within 60 days of the Participant’s Normal Retirement Date or the first day of the month coincident with or next following his date of Retirement, if later.
|
3.2
|
Early Retirement
|
|
(a)
|
Subject to the provisions of Section 4 and 8, a Participant who incurs a Separation from Service prior to age 65 but on or after attaining age 55 and completing at least five Years of Service shall be entitled to receive an Early Retirement Income Benefit commencing as of the first day of the month following his Retirement. Such Early Retirement Income Benefit shall be equal to (i) the amount determined under Section 3.1(a)(i) and (ii) on the basis of his Average Highest Compensation and Years of Service as of his date of Retirement reduced by 1/12 of 4 percent of itself for each month by which payment commences before the Participant’s Normal Retirement Date, provided however that such reduction shall not apply if the Participant has attained 62 years of age and completed twenty Years of Service as of his date of Retirement, minus (ii) the sum of the Participant’s Wiley Basic Plan Benefit, as applicable, and the Participant’s Other Retirement Income. For this purpose, the Participant's Wiley Basic Plan Benefit and the Participant’s Other Retirement Income shall be computed by substituting the annual amount that would be payable to the Participant commencing as of the first day of the month coincident with or next following the date of his Retirement in the form of a single life annuity under the Wiley Basic Plan or under any plan, contract, agreement or, arrangement referred to in Section 1.14 hereof in place of the Participant's Wiley Basic Plan Benefit and Other Retirement Income as defined in Section 1 of the 2005 SERP.
|
|
(b)
|
Notwithstanding the foregoing, the amount of the Participant’s Early Retirement Income Benefit payable for the Participant’s life under this Section 3.2 shall never be less than the greater of the Additional Benefit or Primary Benefit the Participant would have received under the provisions of the 1989 SERP as in effect on December 31, 2004 determined as if the Participant had terminated employment on December 31, 2004 and commenced payment as of the first day of the month coincident with or next following the Participant’s date of Retirement, converted to single life annuity on such date of equivalent actuarial value (as defined in Section 3.1(b) of the 2005 SERP).
|
|
(c)
|
Such Participant may elect in accordance with the provisions of Section 409A of the Code, regulations thereunder including any transitional rules and other applicable guidance and the procedures established by the Committee to have his Early Retirement Income Benefit commence on a later date but not later than his Normal Retirement Date. If such election is made after December 31, 2008, it shall be subject to the following rules:
|
|
(i)
|
the election will not become effective until 12 months after the date the election is made, and
|
|
(ii)
|
the payment of such Benefit shall be delayed at least five years from the date such payment would otherwise have been made absent this election (disregarding any delay under the provision of Section 3.6).
|
|
(d)
|
Subject to Section 3.6, the first payment under this Section 3.2 shall be made within 60 days of the Participant’s date of Retirement, or such later date as elected by the Participant.
|
|
(a)
|
If a Participant dies prior to his Benefit Commencement Date, a Pre-Retirement Survivor Benefit shall be paid to his surviving spouse (or “domestic partner”) as hereinafter provided. The annual amount of such Pre-Retirement Survivor Benefit shall be equal to 50% of the amount determined under Section 3.1 as of the Participant’s date of death or date of Separation from Service with the Company and all Affiliates, if earlier, and shall be paid for the life of the spouse (or “domestic partner”) commencing as of the first day of the month following the month in which the Participant’s death occurs.
|
|
(b)
|
Notwithstanding the foregoing, if a Participant who was an active participant in the 1989 SERP on December 31, 2004 dies prior to his Benefit Commencement Date and as of his date of death has no surviving spouse (or “domestic partner”), there shall be paid to the named Beneficiary of such Participant at the time of his death, a Pre-Retirement Survivor Benefit equal to the present value of one-half of the Participant's Additional Benefit or Primary Benefit, whichever is greater, that would have been payable under the provisions of the 1989 SERP had the Participant remained an active participant in the 1989 SERP through his date of death or the date he ceases to accrue Years of Service under the 2005 SERP, if earlier, paid in ten annual installments. For this purpose, the Participant's Additional Benefit under the 1989 SERP shall be computed by substituting the annual amount payable to the Participant's beneficiary under the Wiley Basic Plan or under any plan, contract, agreement or, arrangement referred to in Section 1.14 hereof in place of the Participant's Wiley Basic Plan Benefit and Other Retirement Income assuming payments thereunder commence as of the first day of the month following the month in which the Participant’s death occurs. Such Benefit shall be converted to a single life annuity of equivalent actuarial value (as defined in Section 3.1(b) of the 2005 SERP) and paid for the life of his named Beneficiary.
|
|
(c)
|
For purposes of this Section 3.3, the term “domestic partner” shall have the same meaning as such term has under the Wiley Basic Plan.
|
3.4
|
Termination of Employment
|
|
(a)
|
Subject to the provisions of Sections 4 and 8, in the event a Participant incurs a Separation from Service prior to his Normal Retirement Age other than on account of death or disability and such Participant does not qualify for Early Retirement as provided in Section 3.2 hereof, then the Participant shall be entitled to a Termination Benefit, commencing on the first day of the month following the Participant’s attainment of age 55 or date of Separation from Service, if later. Such Termination Benefit shall be equal to the amount determined under Section 3.1 on the basis of his Average Highest Compensation and Years of Service as of the date of his Separation from Service reduced by 1/12 of 4 percent of itself for each month by which payment commences before the Participant’s Normal Retirement Date.
|
|
(b)
|
A Participant may elect in accordance with the provisions of Section 409A of the Code, the regulations thereunder (including any transitional rules) and any other applicable guidance and the procedures established by the Committee, to have his Termination Benefit payments commence at a later date but not later than his Normal Retirement Date. If such election is made after December 31, 2008, it shall be subject to the following rules:
|
|
(i)
|
the election will not become effective until 12 months after the date the election is made, and
|
|
(ii)
|
the payment of such Benefit shall be delayed at least five years from the date such payment would otherwise have been made absent this election (disregarding any delay under the provision of Section 3.6).
|
|
(c)
|
Subject to the provisions of the first payment under this Section 3.4 shall begin within 60 days of the date the Participant’s attains age 55, or such later date as elected by the Participant.
|
3.5
|
Form of Payment
|
|
(a)
|
Unless a Participant has made a valid election under paragraph (b) below of an optional form of payment, benefits payable to a Participant under Section 3.1, 3.2 or 3.4 shall be paid in the form of a single life annuity for the life of the Participant.
|
|
(b)
|
Subject to paragraph (d) below, a Participant may elect to convert the benefit otherwise payable to him under the provisions of this Section 3 into an optional benefit of equivalent actuarial value as provided in one of the options set forth below:
|
|
Option 1.
|
“Contingent Annuity”. A modified benefit payable monthly during the Participant’s life and after his death payable at 50%, 75% or 100% (as elected by the Participant) the rate of his modified benefit during the life of, and to, the Beneficiary named by him on his Benefit Commencement Date.
|
|
Option 2.
|
“Pop-Up-Option”. A modified benefit payable under Option 1, provided that in the event the Beneficiary named by the Participant at the time he elected the form of payment predeceases the Participant, the annual benefit payable to the Participant after the Beneficiary’s death shall equal the Benefit that would have been payable pursuant to Section 3.5(a).
|
|
Option 3.
|
“Certain & Life Option”. A modified benefit payable monthly for the life of the Participant, however if the Participant dies within the 10, 11, 12, 13, 14, or 15 year period (as elected by the Participant) commencing on the Participant’s Benefit Commencement Date payments in that reduced amount will be payable until the 10, 11, 12, 13, 14, or 15
th
anniversary of his Benefit Commencement Date.
|
|
(c)
|
Such equivalent actuarial value shall be defined as set forth in Item I of Appendix A of the Wiley Basic Plan.
|
|
(d)
|
Notwithstanding the foregoing, subject to the provisions of Section 409A of the Code, a Participant’s election to receive his benefit payable under Section 3.1, 3.2 or 3.4 (or if applicable, Section 5) in an optional form as described in paragraph (b) above shall be effective as of the Participant’s Benefit Commencement Date, provided that the Participant makes and submits to the Committee his election of such optional form prior to his Benefit Commencement Date. A Participant who fails to elect an optional form of benefit payment in a timely manner shall receive his benefit in accordance with paragraph (a) of this Section 3.5.
|
|
Notwithstanding any provision of the 2005 SERP to the contrary, the actual payment of a benefit due under the provisions of Section 3.1, 3.2 or 3.4 or Section 4 of this 2005 SERP to a Participant who is classified as a “Specified Employee” on his date of Separation from Service shall not commence prior to the first day of the seventh month following the Participant’s Separation from Service. Any payment to the Participant which he would have otherwise received under Section 3.1, 3.2, or 3.4, or Section 4, during the six-month period immediately following such Participant’s Separation from Service shall be accumulated, with interest, compounded on a monthly basis, at the Applicable Interest Rate and paid within 60 days of the first day of the seventh month following the Participant’s Separation from Service. The “Applicable Interest Rate” for purposes of this Section 3.6 is one year U.S. Treasury rate (constant maturities) as in effect on the last business day of the calendar month preceding the date of the Participant’s Separation from Service occurs.
|
4.1
|
In the event there is a Change of Control as hereinafter defined and, within two years following such Change of Control (a) the Participant’s employment is terminated by the Company except for “Cause”, or (b) the Participant incurs a Separation from Service for “Good Reason” as those terms are hereinafter defined, then notwithstanding any other provisions (other than Section 3.6) of the 2005 SERP to the contrary and in lieu of any other benefit to which the Participant may be entitled under the 2005 SERP, the Participant shall be entitled, to a lump sum payment, payable, subject to the provisions of Section 3.6, within 60 days after such Separation from Service equal to the then present value of the Post Retirement Income to which the Participant would have been entitled on the date of such Separation from Service and, in the case of a Participant who has not yet reached his Normal Retirement Age, unreduced for commencement prior to the Participant’s Normal Retirement Date. In determining the Post Retirement Income Benefit for purposes of the preceding sentence, the Wiley Basic Plan Benefit shall be deemed to be the annual benefit to which the Participant will be or is entitled at age 55 or the date of such Separation from Service, whichever is later. The present value of such payments shall be determined by multiplying such Post Retirement Income Benefit, as determined pursuant to this Section 6.1, by the "Present Value Factor” as hereinafter defined.
|
4.2
|
“
Change of Control
” shall mean an event which shall occur if there is: (i) a change in the ownership of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership of a substantial portion of the assets of the Corporation.
|
4.3
|
Cause
|
|
Termination of a Participant's employment by the Company for "Cause" shall mean Separation from Service upon (a) the willful and continued failure by the Participant substantially to perform his duties with the Company to the best of his ability (other than any such failure resulting from his incapacity due to physical or mental illness), after a demand for such performance is delivered to the Participant by the Chairman of the Board or President of the Company which specifically identifies the manner in which such executive believes that the Participant has not substantially performed his duties to the best of his ability, or (b) the willful engaging by the Participant in illegal misconduct materially and demonstrably injurious to the Company. For purposes of this Section, no act, or failure to act, on the Participant's part shall be considered "willful" unless done, or omitted to be done, by the Participant not in good faith and without reasonable belief that his action or omission was lawful and in the best interest of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be lawful and done, or omitted to be done, by the Participant in good faith and in the best interest of the Company. Notwithstanding the foregoing, the Participant shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Participant a Notice of Termination containing or attached thereto a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for the purpose (after reasonable notice to the Participant and an opportunity for the Participant, together with his counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Participant was guilty of conduct set forth above in clauses (a) and (b) in this section and specifying the particulars thereof in detail.
|
4.4
|
Good Reason
|
|
"Good Reason" for a Participant to incur a Separation from Service shall mean:
|
|
(a)
|
an adverse change in the Participant's status or position(s) as an executive of the Company as in effect immediately prior to the Change of Control, including, without limitation, any adverse change in his status or position as a result of a material diminution in his duties or responsibilities or a material change in his business location or the assignment to him of any duties or responsibilities which are inconsistent with such status or position, or any removal of the Participant from or any failure to reappoint or reelect him to any office or position previously held;
|
|
(b)
|
a reduction by the Company in Participant's base salary as in effect immediately prior to the Change of Control or in the number of vacation days to which Participant is then entitled under the Company's normal vacation policy as in effect immediately prior to the Change of Control;
|
|
(c)
|
the taking of any action by the Company (including the elimination of a plan without providing substitutes therefore or the reduction of Participant's awards thereunder) that would substantially diminish the aggregate projected value of the Participant's awards under the Company's incentive, bonus, stock option or restricted stock plans in which the Participant was participating at the time of a Change of Control of the Company;
|
|
(d)
|
the taking of any action by the Company that would substantially diminish the aggregate value of the benefits provided the Participant under the Company's medical, health, accident, disability, life insurance, thrift or retirement plans in which the Participant was participating at the time of a Change of Control of the Company; or
|
|
(e)
|
substantial and continuing harassment of the Participant by other Company personnel, including but not limited to verbal abuse, insulting or demeaning verbal and written communications, and orders or directions which are clearly inappropriate to Participant's executive status, provided the Participant gives the Company written notice of such harassment in reasonable detail and the Company fails to promptly take corrective action to stop such harassment.
|
4.5
|
The “Present Value Factor” is the factor which when applied to an annual payment, would represent the equivalent actuarial value to receive such amount annually for life when computed on the basis of the IRS Mortality Table and the IRS Interest Rate. The “IRS Mortality Table” shall mean the mortality table prescribed by the Secretary of Treasury under Section 417(e)(3)(A)(ii)(I) of the Code as in effect on December 31, 2007. The “IRS Interest Rate” is the annual rate of interest on 30 year Treasury Securities as published by the Commissioner of Internal Revenue in the calendar month preceding the month in which the Participant’s Separation from Service occurs.
|
4.6
|
Notice of Termination
|
|
Any termination by the Company pursuant to Section 4.3 above or by the Participant pursuant to Section 4.4 above shall be communicated by written Notice of Termination to the Participant or the Company, as the case may be. For purposes of the 2005 SERP, a "Notice of Termination" shall mean a notice specifying the termination provision in the 2005 SERP relied upon and setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Participant's employment under the provision so specified except as otherwise provided in Section 3.6.
|
4.7
|
In the event the amount which a Participant is entitled to receive pursuant to Section 4.1 is not paid in full to the Participant within 60 days after his Separation from Service, or, if later, in accordance with the provisions set forth in Section 3.6, then the Participant shall also be entitled to recover from the Company reasonable legal expenses and disbursements incurred in establishing his right to and collecting such amount.
|
4.8
|
The provisions of this Section 4 shall not apply to any Participant who would be deemed an individual described in Section 422A(b)(6) of the Code, as presently in effect (relating to an individual who, directly and by attribution, is deemed to own more than 10% of the voting power of a corporation).
|
|
5.1
|
(a)
|
In the event a Participant who is actively employed by the Company or an Affiliate becomes Disabled, as that term is hereinafter defined, prior to his Normal Retirement Date, then notwithstanding any other provision of the 2005 SERP to the contrary and in lieu of any other benefit to which the Participant may be entitled under the 2005 SERP, the Participant shall be entitled to a lump sum payment, payable within 60 days after the Committee’s determination regarding such disability is finalized, equal to the then present value of the Post Retirement Income Benefit determined under Section 3.1 on the basis of the Participant’s Average Highest Compensation and Years of Service as of his Disability Date (as that term is herein defined), unreduced for commencement prior to the Participant’s Normal Retirement Date. The present value of such payments shall be determined by multiplying such Post Retirement Income Benefit, as determined pursuant to this Section 5.1 by the Present Value Factor as defined below. Notwithstanding the foregoing a Participant may elect in accordance with procedures established by the Committee to receive all or any portion of such Disability in the form of an annuity as described in Section 3.6(a). To be effective such election must be completed and submitted to the Company no later than December 31, 2008, of if later within 30 days of the date such Participant first becomes eligible for the SERP or any other nonqualified plan maintained by the Company or an Affiliate that is required to be aggregated with the SERP under the provisions of Section 409A of the Code.
|
|
(b)
|
The “Present Value Factor” solely for purposes of this Section 7.1 is the factor which when applied to an annual payment, would represent the equivalent actuarial value to receive such amount annually for life when computed on the basis of the IRS Mortality Table and the IRS Interest Rate. The “IRS Mortality Table” shall mean the mortality table prescribed by the Secretary of Treasury under Section 417(e)(3)(A)(ii)(I) of the Code as in effect on December 31, 2007. The “IRS Interest Rate” is the annual rate of interest on 30 year Treasury Securities published by the Commissioner of Internal Revenue in the calendar month preceding the month in which the Participant’s Disability Date occurs.
|
|
(c)
|
For purposes of this Section 5, a Participant is considered Disabled if such Participant meets the requirements of Treasury Regs Section 1.409a-3(i)(4) and any subsequent guidance thereto. The Participant’s Disability Date shall be the date determined by the Committee on a basis uniformly applicable to all persons similarly situated.
|
6.1
|
The Committee shall have the exclusive responsibility and complete discretionary authority to interpret the 2005 SERP, to adopt, amend, and rescind rules and regulations for the administration of the 2005 SERP, and generally to operate, manage and administer the 2005 SERP and to make all determinations in connection with the 2005 SERP as may be necessary or advisable. All such actions of the Committee shall be conclusive and binding upon all Participants and Beneficiaries. The Committee may employ and rely on such legal counsel, actuaries, accountants and agents as it may deem advisable to assist in the administration of the Plan
|
6.2
|
To the extent permitted by law, all agents and representatives of the Committee shall be indemnified by the Company and held harmless against any claims and the expenses of defending against such claims, resulting from any action or conduct relating to the administration of the Plan, except claims arising from gross negligence, willful neglect or willful misconduct.
|
7.1
|
The Plan may not be terminated or suspended or modified or amended in any manner which adversely affects any Participant at any time after a Change of Control (as defined in Section 4.2) shall have occurred. Subject to the foregoing provisions of this Section 5.1, the Board may, in its sole discretion, terminate, suspend or amend the Plan at any time or from time to time, in whole or in part. However, no termination, suspension or amendment of the Plan may adversely affect a Participant's accrued benefit under the Plan, or adversely affect a retired Participant's right or the right of a Beneficiary to receive or to continue to receive a benefit in accordance with the Plan as in effect on the date immediately preceding the date of such termination, suspension or amendment. In the event of such suspension or termination, the Company shall continue to maintain the Plan until all benefits under the Plan are distributed in accordance with the Participant’s elections and the provisions of Section 409A of the Code, the regulations promulgated thereunder and other applicable guidance.
|
7.2
|
Nothing contained herein will confer upon any Participant the right to be retained in the service of the Company or any Affiliate, nor will it interfere with the right of the Company or any Affiliate to discharge or otherwise deal with Participants without regard to the existence of the Plan.
|
7.3
|
The Company may fund its obligations under the Plan by purchasing certain insurance policies on the lives of the Participants. In the event the Company does fund its obligation under the Plan it shall have no obligation to continue to do so in the future or to continue any such policies in effect. No Participant or Beneficiary shall have any interest whatsoever in any such policies, which shall be the sole property of the Company. Participants and their Beneficiaries shall look solely to the general credit of the Company for payment of benefits under the Plan. The Company reserves the right to establish one or more trusts to provide alternative sources of benefit payments under the Plan. The existence of any such trust or trusts shall not relieve the Company of any liability to make benefit payments under the Plan, but to the extent any benefit payments are made from any such trust, such payment shall be in satisfaction of and shall reduce the Company's liabilities under this Plan.
|
8.1
|
Notwithstanding any other provision of the 2005 SERP except for the provisions of Section 8.2, to the contrary, no payments or further payments will be made under the 2005 SERP to a Participant or to his Beneficiary if, (a) the Participant, directly or indirectly, during the 24-month period after his Separation from Service, is employed by, renders services to or participates in the management, operation or control of, or serves as advisor or consultant to any business enterprise which is engaged in any type of business activity conducted by the Company or any of its subsidiaries at the time of such termination of employment and which enterprise is in direct and substantial competition with the Company or any such subsidiary, or (b) during the period of Participant’s employment at the Company and its Affiliates and for twelve months following his Separation from Service, the Participant does not, either on his own behalf or on behalf of any other person or entity, directly or indirectly, (i) solicit any person or entity that is a customer of the Company or its Affiliates, or has been a customer of the Company or its Affiliates during the prior twelve (12) months, to purchase any products or services the Wiley Companies provides to the customer, or (ii) interfere with any of the Company or its Affiliates business relationships.
|
8.2
|
The provisions of Section 8 shall not apply (a) following a Change of Control as defined in Section 6.2, or (b) if the Participant's employment is terminated by the Company without Cause as defined in Section 6.4 or by the Participant for Good Reason as defined in Section 6.5.
|
9.1
|
Nonalienation
|
|
To the maximum extent permitted by law, no benefit under the 2005 SERP shall be assignable or subject in any manner to alienation, sale, transfer, claims of creditors, pledge, bankruptcy, attachment or encumbrances of any kind.
|
9.2
|
Funding
|
|
No special or separate fund shall be established, and no segregation of assets shall be made, to assure the payments thereunder. No Participant hereunder shall have any right, title, or interest whatsoever in any specific assets of the Company. Nothing contained in the Plan and no action taken pursuant to its provisions shall create or be construed to create a trust of any kind or a fiduciary relationship between the Company and a Participant or any other person. To the extent that any person acquires a right to receive payments under the 2005 SERP, such right shall be no greater than the right of any unsecured creditor of the Company.
|
9.3
|
Facility of Payment
|
|
In the event that the Committee shall find that a Participant or Beneficiary is incompetent to care for his affairs or is a minor, the Committee may direct that any benefit payment due him, unless claim shall have been made therefore by a duly appointed legal representative, be paid on his behalf to his spouse, a child, a parent or other relative, and any such payment so made shall thereby be a complete discharge of the liability of the Company and the 2005 SERP for that payment.
|
9.4
|
Withholding of Taxes
|
|
The Company shall have the right to deduct from each payment to be made under the 2005 SERP any required withholding taxes.
|
9.5
|
Expenses.
All administrative expenses of the 2005 SERP and all benefits under the 2005 SERP shall be paid from the general assets of the Company.
|
9.6
|
Mergers/Transfers
|
|
This 2005 SERP shall be binding upon and inure to the benefit of the Company and its successors and assignees and the Participant, his designees and his estate. Nothing in the 2005 SERP shall preclude the Company from consolidating or merging into or with, or transferring all or substantially all of its assets to, another corporation which assumes the 2005 SERP and all obligations of the Company hereunder. Upon such a consolidation, merger or transfer of assets and assumption, the term “Company” shall refer to such other corporation and the 2005 SERP shall continue in full force and effect.
|
9.7
|
Claims Procedure
|
|
The Committee shall provide adequate notice in writing to any Participant, former Participant or Beneficiary whose claim for a withdrawal or payment under the 2005 SERP has been denied, setting forth the specific reasons for such denial. A reasonable opportunity shall be afforded to any such Participant, former Participant or Beneficiary for a full and fair review by the Committee of a decision denying the claim. The Committee’s decision on any such review shall be final and binding on the Participant, former Participant or Beneficiary and all other interested persons.
|
9.8
|
Acceleration of or Delay in Payments
|
|
The Committee, in its sole and absolute discretion, may elect to accelerate the time or form of payment of a benefit owed to the Participant hereunder, provided such acceleration is permitted under Treas. Reg. Section 1.409A-3(j)(4). The Committee may also, in its sole and absolute discretion, delay the time for payment of a benefit owed to the Participant hereunder, to the extent permitted under Treas. Reg. Section 1.409A-2(b)(7).
|
9.9
|
Indemnification
|
|
The Company, the members of the Committee, and the officers, employees and agents of the Company shall, unless prohibited by any applicable law, be indemnified against any and all liabilities arising by reason of any act or failure to act in relation to the Plan including, without limitation, expenses reasonably incurred in the defense of any claim relating to the Plan, amounts paid in any compromise or settlement relating to the Plan and any civil penalty or excise tax imposed by any applicable statue, if
|
(c)
|
the act or failure to act shall have occurred
|
|
(i)
|
in the course of the person’s service as an officer, employee or agent of the Company or as a member of the Committee, or as the Plan Administrator, or
|
|
(ii)
|
in connection with a service provided with or without charge to the Plan or to the Participants or Beneficiaries of the Plan, if such service was requested by the Committee or the Plan Administrator; and
|
(d)
|
the act or failure to act is in good faith and in, or not opposed to, the best interests of the Company.
|
|
It is
the intent of the Company that the Plan complies with the provisions of Section 409A of the Code, any regulations and other guidance promulgated with respect thereto and the provisions of the Plan shall be interpreted to be consistent therewith.
|
9.11
|
Construction
|
|
(a)
|
The Plan is intended to constitute an unfunded deferred compensation arrangement for a select group of management or highly compensated employees and therefore exempt from the requirements or Sections 201, 301 and 401 or ERISA. All rights hereunder shall be governed by and construed in accordance with the laws of the State of New York.
|
|
(b)
|
The captions preceding the sections and articles hereof have been inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provisions of the Plan.
|
PAGE
|
||
SECTION 1 -
|
PURPOSES
|
1
|
SECTION 2 -
|
DEFINITIONS
|
2
|
SECTION 3 -
|
PARTICIPATS
|
4
|
SECTION 4 -
|
AMOUNT OF SUPPLIMENTAL BENEFIT
|
5
|
SECTION 5 -
|
PAYMENT
|
6
|
SECTION 6 -
|
CHANGE OF CONTROL
|
12
|
SECTION 7 -
|
NONASSIGNABILITY
|
13
|
SECTION 8 -
|
RIGHT TO DISCHARGE
|
13
|
SECTION 9 -
|
FUNDING AND GENERAL PROVISIONS
|
14
|
SECTION 10 -
|
SIGNATURE AND VERIFICATION
|
18
|
2.1
|
“Benefit Commencement Date” shall mean “Benefit Commencement Date” as such term is defined in the SERP.
|
2.2
|
“Change of Control” shall mean “Change of Control” as defined in the SERP.
|
2.3
|
“Disability Supplemental Benefit” shall mean the Participant’s benefit calculated under provisions of Section 4.2.
|
2.4
|
“Disabled” shall mean “Disabled” as such term is defined in the SERP.
|
2.5
|
“Grandfathered Supplemental Benefit” shall mean with respect to a Participant who (i) terminated employment with the Company (as defined in the Retirement Plan) and all Affiliated Companies prior to January 1, 2005, or (ii) was employed by the Company on April 1, 2005 and who as of that date was a participant in the SERP and was (1) a member of the Board of Directors or (2) a 5% owner of the Corporation (as defined in Code Section 416), or (iii) was within two years of attaining age 65, the portion of his Supplemental Benefit that was accrued and vested before January 1, 2005, determined under provisions of the Supplemental Plan without regard to any amendments after October 3, 2004 which would constitute a material modification under Code Section 409A purposes, and the provision of Code Section 409A, the regulations promulgated thereunder and other applicable guidance and procedures based on actuarial equivalent assumptions chosen by the Benefits Administration Board in accordance with Code Section 409A.
|
2.6
|
“Separation from Service” shall mean “Separation from Service” as such term is defined in the SERP.
|
2.7
|
“SERP” shall mean the John Wiley & Sons, Inc. Supplemental Executive Retirement Plan, as amended from time to time. “1989 SERP” shall mean Part A of the SERP and “2005 SERP” shall mean Part B of the SERP.
|
2.8
|
“Specified Employee” shall mean “Specified Employee” as such term is defined under the SERP.
|
2.9
|
“409A Supplemental Disability Benefit” shall mean the portion, if any, of a Participant’s benefit calculated under the provision of Section 4.2 hereof that exceeds the amount of his Grandfathered Supplemental Benefit.
|
2.10
|
“409A Supplemental Benefit” shall mean the portion, if any, of a Participant’s benefit calculated under the provisions of Section 4.1 hereof that exceeds the amount of his Grandfathered Supplemental Benefit.
|
2.11
|
“Supplemental Benefit” shall mean the Participant’s benefit calculated under the provisions of Section 4.1 hereof.
|
4.1
|
Each eligible Participant shall receive a Supplemental Benefit equal to the excess, if any, of (a) the benefit which would be payable to the Participant or, in the event of the Participant’s death while in the employ of the Company or an Affiliated Company payable to his Beneficiary, under the Retirement Plan, if the benefit determined as of the Participant’s Separation from Service was computed without regard to either the limitation of Section 4.08 of the Retirement Plan (relating to the limitation on benefits required by Section 415 of the Code) or the limitation in Section 1.12 of the Supplemental Plan (relating to the limitation on the amount of Compensation required by Section 401(a)(17) of the Code), and without regard to any comparable limitations which may hereafter be imposed by law, over (b) the amount of the benefit which would have been payable under the Retirement Plan to the Participant (or his Beneficiary) for his lifetime, assuming such benefit commences on the date set forth in Section 5.1(a).
|
4.2
|
Notwithstanding the foregoing, if a Participant who is currently employed by the Company or an Affiliated Company becomes Disabled prior to his Normal Retirement Date, or date of Separation from Service, if earlier, then notwithstanding any provisions of this Supplemental Plan to the contrary, he shall be entitled to a Disability Supplemental Benefit for his lifetime equal to the benefit determined under the provisions of Section 4.1 as of the Participant’s Disability Date (as such term is defined in Section 5.1(b) of the 1989 SERP or of the 2005 SERP, whichever is applicable), assuming such benefit commences on the first day of the month following the later of (i) his Disability Date or (ii) the Participant’s attainment of age 65 (age 55, if he has completed ten or more Years of Service on his Disability Date).
|
5.1
|
Timing of Payment
|
|
(a)
|
Subject to the provisions of this Section 5.1 and Section 5.4 below, payment of a Participant’s 409A Supplemental Benefit will commence on the first day of the month following the later of (i) the Participant’s attainment of age 65 (age 55, if he has completed ten or more Years of Service on his Separation from Service) or (ii) his Separation from Service.
|
|
(b)
|
Notwithstanding the foregoing if a Participant has made an effective election under (i) Section 3.2(c) or 3.4(c) of the 1989 SERP to delay the payment of his 1989 SERP 409A Additional Benefit, or (ii) Section 3.2(d) or 3.4(d) of the 2005 SERP to delay the payment of his 2005 SERP Income Benefit, whichever is applicable, such Participant’s 409A Supplemental Benefit shall commence, in accordance with such election, at the same time as such Participant’s 1989 SERP 409A Additional Benefit or 2005 SERP Income Benefit, whichever is applicable, commences.
|
|
(c)
|
Notwithstanding the foregoing, a Participant’s 409A Supplemental Benefit payable pursuant to the provisions of Section 4.2 shall commence as of the first day of the month following the Participant’s Disability Date.
|
|
(d)
|
Upon the death of a Participant prior to his Benefit Commencement Date, the portion of a survivor benefit payable to the Participant’s Designated Beneficiary attributable to a Participant’s 409A Survivor Benefit shall commence as of the first day of the month following the date the Participant would have attained age 55 or his date of death, if later.
|
(e)
|
Notwithstanding any other provision of the Supplemental Plan to the contrary, if the present value of the Participant's benefits under the Supplemental Plan payable to a participant under Section 4.1 is equal to or less than the applicable dollar amount under Section 402(g)(1)(B) of the Code, such benefit shall be paid to the Participant or, if applicable, to the Participant’s beneficiary or beneficiaries in one lump sum within 90 days following the Participant’s Separation from Service. For purposes of this clause (e), present value shall be determined on the basis of the IRS Mortality Table (as defined in the Retirement Plan) and the IRS Interest Rate (as defined in the Retirement Plan) published in the calendar month preceding the date of the Participant’s Separation from Service.
|
5.2
|
Form of Payment
|
|
(a)
|
Except as otherwise provided in Section 5.3, unless a Participant has made an effective election under paragraph (b) below of an optional form of payment, the 409A Supplemental Benefits payable to a Participant under Section 4.1 shall be paid in the form of a single life annuity for the life of the Participant.
|
|
(b)
|
Subject to paragraph (d) below, a Participant may elect to convert the portion of the benefit otherwise payable to him under the provisions of this Section 5, which is to be paid in the form of a life annuity, into an optional benefit of Equivalent Actuarial value as provided in one of the options set forth below:
|
|
Option 1.
|
“Contingent Annuity”. A modified benefit payable monthly during the Participant’s life and after his death payable at 50%, 75% or 100% (as elected by the Participant) of the rate of his modified benefit during the life of, and to, the Beneficiary named by him on his Benefit Commencement Date.
|
|
Option 2.
|
“Pop-Up-Option”. A modified benefit payable under Option 1, provided that in the event the Beneficiary named by the Participant at the time he elected the form of payment predeceases the Participant, the annual benefit payable to the Participant after the Beneficiary’s death shall equal the Benefit that would have been payable pursuant to Section 5.2(a).
|
|
Option 3.
|
“Certain & Life Option”. A modified benefit payable monthly for the life of the Participant; however if the Participant dies within the 10, 11, 12, 13, 14, or 15 year period (as elected by the Participant) commencing on the Participant’s Benefit Commencement Date’ payments in that reduced amount will be payable until the 10, 11, 12, 13, 14, or 15
th
anniversary of his Benefit Commencement Date.
|
|
(c)
|
Such Equivalent Actuarial value shall be defined as set forth in Item I of Appendix A of the Retirement Plan.
|
|
(d)
|
Notwithstanding the foregoing, subject to the provisions of Section 409A of the Code, a Participant’s election to receive the portion of his Supplemental Benefit payable under Section 4.1 in the form of a life annuity in an optional form as described in paragraph (b) above shall be effective as of the Benefit Commencement Date applicable to that portion of the Participant’s benefit, provided that the Participant makes and submits to the Committee his election of such optional form prior to his Benefit Commencement Date. A Participant who fails to elect an optional form of benefit payment in a timely manner shall receive his benefit in accordance with paragraph (a) of this Section 5.2.
|
|
(e)
|
Notwithstanding the foregoing and except as otherwise provided in Section 5.3, a Participant’s 409A Supplemental Disability Benefit determined under Section 4.2 shall be paid in a single lump sum payment equal to the then equivalent actuarial value of the 409A Supplemental Disability Benefit. For purposes of this clause (e), equivalent actuarial value shall be determined on the basis of the IRS Mortality Table (as defined in the Retirement Plan) and the IRS Interest Rate (as defined in the Retirement Plan) as published in the calendar month preceding the Participant’s Disability Date.
|
5.3
|
Special Provision Applicable to Certain Members of the SERP
|
|
(a)
|
Notwithstanding any Supplemental Plan provision to the contrary, payment of the 409A Supplemental Benefit payable to a Participant who is a member of the 1989 SERP on January 1, 2009, shall be paid in the same form as the Participant’s 409A Additional Benefit, if any, (as defined in the 1989 SERP) is paid pursuant to the provisions of Section 3.5(b)(i) of the 1989 SERP. The 409A Supplemental Benefit paid under this Section shall be of Equivalent Actuarial value to the Participant’s 409A Supplemental Benefit payable over his lifetime as determined under Section 4.1. For purposes of this Section 5.3(a) Equivalent Actuarial value shall be determined on the same basis as provided in Section 6.3. In the event any portion of such Participant’s 409A Supplemental Benefit is to be paid in the form of a life annuity, such Participant may elect in accordance with the provision of Sections 5.2(b) and 5.2(d) to convert such amount into an optional annuity form of payment.
|
|
(b)
|
(i)
|
Notwithstanding any provision of the Supplemental Plan to the contrary, if a Participant who is entitled to a benefit under Section 5.1 of the 2005 SERP has made an election under Section 5.1(a) of the 2005 SERP to receive such benefit in the form of a life annuity, the Participant’s 409A Supplemental Disability Benefit payable pursuant to Section 4.2 shall be paid in the form of a life annuity, unless the Participant has made a valid optional annuity form of payment election under Section 5.2 hereof.
|
|
(ii)
|
Notwithstanding any provision of the Supplemental Plan to the contrary, with respect to a Participant who is a member of the 1989 SERP as of January 1, 2005, any 409A Supplemental Disability Benefit payable pursuant to the provisions of Section 4.2 to such Participant shall be paid in the same form as such Participant’s 409A Additional Benefit, if any, is paid to such Participant pursuant to Section 5.1 of the 1989 SERP. The benefit payable pursuant to this clause (ii) shall be of Actuarial Equivalent value (as defined in Section 6.3) to the 409A Supplemental Disability Benefit payable for the Participant’s life as determined under Section 4.2
|
|
(c)
|
Notwithstanding any Supplemental Plan provision to the contrary, the survivor benefit payable hereunder to a Participant’s Designated Beneficiary due to the death of the Participant prior to his Separation from Service, shall be paid in the same form as any Pre-Retirement Survivor Benefit attributable to such Participant’s 409A Additional Benefit (as defined in the 1989 SERP) is paid under the SERP. The survivor benefit payable under this paragraph (c) shall be of Actuarial Equivalent value (as defined in Section 6.3) to the survivor benefit attributable to the Participant’s 409A Supplemental Benefit that would have been payable for the life of the Designated Beneficiary.
|
|
Notwithstanding any provision of the Supplemental Plan to the contrary, if a Participant is classified as a “Specified Employee” on his date of Separation from Service, the actual payment of the portion of his 409A Supplemental Benefit due under the provisions of Section 4, on account of such Participant’s Separation from Service with the Company and all Affiliated Companies (for reasons other than death or his becoming Disabled) shall not commence prior to the first day of the seventh month following the Participant’s Separation from Service. For avoidance of doubt, the provisions of this Section 5.4 do not apply to the portion of a Participant’s Benefit equal to his Grandfathered Supplemental Benefit or any benefit payable to or on behalf of the Participant pursuant to the death of the Participant or to the provisions of Section 4.2. Any payment to the Participant which he would have otherwise received under Section 4.1, during the six-month period immediately following such Participant’s Separation from Service shall be accumulated, with interest, compounded on a monthly basis, at the Applicable Interest Rate and paid within 60 days of the first day of the seventh month following the Participant’s Separation from Service. For purposes of this Section 5.4 the Applicable Interest Rate is one year U.S. Treasury rate (constant maturities) as published on the last business day of the calendar month preceding the date of the Participant’s Separation from Service occurs.
|
5.5
|
Grandfathered Supplemental Benefits
|
|
Notwithstanding any provision of the Supplemental Plan to the contrary, a Participant’s Grandfathered Supplemental Benefit (or survivor benefit attributable to such Grandfathered Supplemental Benefit) shall commence, and the form of payment of such benefit shall be determined, in accordance with the provisions of the Supplemental Plan as in effect on October 3, 2004, without regard to any amendments after such date which would constitute a material modification for purposes of Section 409A of the Code.
|
6.1
|
Notwithstanding the foregoing, upon the occurrence of a Change of Control (as such term is defined in Section 4.2 of the 2005 SERP), all former Participants or Beneficiaries of former Participants then receiving or then entitled to receive a 409A Supplemental Benefit or 409A Supplemental Disability Benefit under Section 4 of the Supplemental Plan shall automatically receive, in a single lump sum payment, the actuarial equivalent value of the remaining 409A Supplemental Benefit or 409A Supplemental Disability Benefit payments due to such former Participant or Beneficiary as of the date the Change of Control occurs. If such former Participant (or Beneficiary) dies after the Change of Control occurs but before receiving such single lump sum payment, the single lump sum payment shall be made to the Participant’s Designated Beneficiary, otherwise to his estate.
|
6.2
|
Notwithstanding any Plan provision to the contrary, upon a Participant’s Separation from Service for any reason within two years following the date a Change of Control occurs, such Participant shall automatically receive, in a single lump sum payment, the actuarial equivalent value of his Supplemental Benefit accrued under Section 4 of the Supplemental Plan as of his date of Separation from Service. If such Participant dies after his Separation from Service within two years of a Change of Control but before receiving such single lump sum payment, such single lump sum payment shall be made to his Designated Beneficiary, otherwise to his estate.
|
6.3
|
The amount of a single lump sum payment made pursuant to the provisions of this Section 6 shall be calculated in the same manner and on the same actuarial equivalent basis utilized to calculate a lump sum payment under Option 6 as set forth in Section 5.02 of the Retirement Plan. The lump sum payment shall be based on the age of the former Participant or Beneficiary on the date the Change of Control occurs or the date of the Participant’s Separation from Service with the Company and all Affiliated Companies, if later. The calculation of the lump sum payment hereunder represents a complete settlement of all benefits accrued on the Participant’s (or former Participant’s) behalf under the Supplemental Plan.
|
6.4
|
Notwithstanding the foregoing, Section 3(b) of the Supplemental Plan as in effect on October 3, 2004 shall be applicable to a Participant’s Grandfathered Supplemental Benefit, except that the definition of the term “Change of Control” (as defined therein) shall be revised to be the later of a “Change of Control” (as such term is defined in Section 4.2 of the 2005 SERP or a “Change of Control” as defined in Section 3(b) of the Supplemental Plan as in effect on October 3, 2004 without regard to any amendments after such date which would constitute a material modification for purposes of Section 409A of the Code.
|
9.1
|
Funding
|
9.2
|
No special or separate fund shall be established, and no segregation of assets shall be made, to assure the payments thereunder. No Participant hereunder shall have any right, title, or interest whatsoever in any specific assets of the Corporation. Nothing contained in the Supplemental Plan and no action taken pursuant to its provisions shall create or be construed to create a trust of any kind or a fiduciary relationship between the Corporation and a Participant or any other person. To the extent that any person acquires a right to receive payments under the Supplemental Plan, such right shall be no greater than the right of any general unsecured creditor of the Corporation.
|
9.3
|
Facility of Payment
|
|
In the event that the Benefit Administrative Board shall find that a Participant or Beneficiary is incompetent to care for his affairs or is a minor, the Benefit Administrative Board may direct that any benefit payment due him, unless claim shall have been made therefore by a duly appointed legal representative, be paid on his behalf to his spouse, a child, a parent or other relative, and any such payment so made shall thereby be a complete discharge of the liability of the Corporation and the Supplemental Plan for that payment.
|
9.4
|
Acceleration of or Delay in Payments
,
|
|
The Benefit Administrative Board in its sole and absolute discretion, may elect to accelerate the time or form of payment of a benefit owed to the Participant hereunder, provided such acceleration is permitted under Treas. Reg. Section 1.409A-3(j)(4). The Benefit Administrative Board may also, in its sole and absolute discretion, delay the time for payment of a benefit owed to the Participant hereunder, to the extent permitted under Treas. Reg. Section 1.409A-2(b)(7).
|
9 5
|
Designated Beneficiaries
|
9.6
|
Administration
|
9.7
|
Withholding of Taxes
|
|
The Company shall have the right to deduct from each payment to be made under the Supplemental Plan any required withholding taxes.
|
9.8
|
Mergers/Transfers
|
|
This Supplemental Plan shall be binding upon and inure to the benefit of the Corporation and its successors and assignees and the Participant, his designees and his estate. Nothing in the Supplemental Plan shall preclude the Corporation from consolidating or merging into or with, or transferring all or substantially all of its assets to, another corporation which assumes the Supplemental Plan and all obligations of the Corporation hereunder. Upon such a consolidation, merger or transfer of assets and assumption, the terms “Corporation” and “Company” shall refer to such other corporation and the Supplemental Plan shall continue in full force and effect.
|
9.9
|
Amendment or Termination of Supplemental Plans
|
9.10
|
Compliance
|
9.11
|
Construction
|
(a)
|
The Supplemental Plan is intended to constitute an unfunded deferred compensation arrangement for a select group of management or highly compensated employees and therefore exempt from the requirements or Sections 201, 301 and 401 of ERISA. All rights hereunder shall be governed by and construed in accordance with the laws of the State of New York
|
(b)
|
The captions preceding the sections and articles hereof have been inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provisions of the Supplemental Plan.
|
Page
|
||
ARTICLE 1.
|
DEFINITIONS.............................................................................................................................................................................................................................
|
1
|
ARTICLE 2.
|
PARTICIPATION......................................................................................................................................................................................................................
|
4
|
ARTICLE 3.
|
DEFERRALS...............................................................................................................................................................................................................................
|
5
|
ARTICLE 4.
|
COMPANY CONTRIBUTIONS..............................................................................................................................................................................................
|
8
|
ARTICLE 5.
|
MAINTENANCE OF ACCOUNTS..........................................................................................................................................................................................
|
9
|
ARTICLE 6.
|
PAYMENT OF BENEFITS........................................................................................................................................................................................................
|
11
|
ARTICLE 7.
|
AMENDMENT OR TERMINATION.......................................................................................................................................................................................
|
14
|
ARTICLE 8.
|
GENERAL PROVISIONS........................................................................................................................................................................................................
|
15
|
ARTICLE 9.
|
SIGNATURE AND VERIFICATION.......................................................................................................................................................................................
|
21
|
Appendix A
|
1.01
|
“Accounts”
shall mean the Deferral Account, the Company Account, the Grandfathered Deferral Account and the Grandfathered Company Account maintained by the Company to record the payment obligations of the Company to a Participant as determined under the terms of the Plan.
|
1.02
|
“Administrative Committee”
shall mean the person or persons appointed by the Board of Directors to administer the Plan as provided in Section 8.01.
|
1.03
|
“Affiliate”
shall mean any company which is a member of a controlled group of corporations (as defined in Section 414(b) of the Code) which also includes as a member John Wiley & Sons, Inc.; any trade or business under common control (as defined in Section 414(c) of the Code) with John Wiley & Sons, Inc.; any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Section 414(m) of the Code) which includes John Wiley & Sons, Inc.; and any other entity required to be aggregated with John Wiley & Sons, Inc. pursuant to regulations under Section 414(o) of the Code.
|
1.04
|
“Base Salary”
shall mean the Participant’s annual base fixed compensation paid periodically during the calendar year, determined prior to any pre-tax contributions under a “qualified cash or deferred arrangement” (as defined under Section 401(k) of the Internal Revenue Code and its applicable regulations), under a “cafeteria plan” (as defined under Section 125 of said Code and its applicable regulations or pursuant to a qualified transportation fringe under Section 132(f) of the Code), but excluding any Bonus or other form of special pay.
|
1.05
|
“Beneficiary”
shall mean the person or persons designated by an Eligible Executive pursuant to the provisions of Section 6.05 in a time and manner determined by the Administrative Committee to receive the amounts, if any, payable under the Plan upon the death of the Eligible Employee.
|
1.06
|
“Bonus”
shall mean a cash Performance Bonus.
|
1.07
|
“Board of Directors” or “Board”
shall mean the Board of Directors of John Wiley & Sons, Inc.
|
1.08
|
“Change of Control”
shall mean “Change of Control” as such term is defined under the terms of the John Wiley & Sons Inc. Supplemental Executive Retirement Plan as amended and restated effective as January 1, 2009.
|
1.09
|
“Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.
|
1.10
|
“Company”
shall mean John Wiley & Sons, Inc., a New York corporation, and any successor thereto, with respect to its employees and such Affiliates authorized by the Board of Directors to participate in the Plan, with respect to their employees.
|
1.11
|
“Company Account”
shall mean the bookkeeping account (or subaccount(s)) maintained for each Participant to record the amount of Company Contributions that are either (i) credited to a Participant in accordance with Article 4 on or after January 1, 2005 or (ii) which were credited prior to January 1, 2005 but become vested on or after January 1, 2005, adjusted pursuant to Article 5
|
1.12
|
“Company Contributions”
shall mean the amount of contributions credited on behalf of a Participant pursuant to Section 4.01.
|
1.13
|
“Compensation Committee”
shall mean the Governance and Compensation Committee of the Board of Directors (formally known as the Executive Compensation and Development Committee).
|
1.14
|
“Deferral Account”
shall mean the bookkeeping account (or subaccount(s)) maintained for each Participant to record the amount of Base Salary and/or Bonus deferred on his behalf in accordance with Article 3 on or after January 1, 2005, adjusted pursuant to Article 5.
|
1.15
|
“Deferral Agreement”
shall mean the completed agreements, including any amendments, attachments and appendices thereto, in such form approved by the Plan Administrator, between an Eligible Executive and the Company, under which the Eligible Executive agrees to defer a portion of his Base Salary or Bonus under the Plan.
|
1.16
|
“Deferrals”
shall mean the amount of deferrals credited to a Participant pursuant to Section 3.02.
|
1.17
|
“Effective Date”
shall mean March 1, 1995.
|
1.18
|
“Eligible Executive”
shall mean an employee of the Company who is a member of a “select group of management or highly compensated employees” and who is designated as eligible to participate in this Plan by the Compensation Committee.
|
1.19
|
“
Grandfathered Company Account
” shall mean the bookkeeping account (or subaccount(s)) maintained for a Participant to record the amount of Company Contributions credited to a Participant in accordance with Article 4 prior to January 1, 2005, which were vested as of December 31, 2004, adjusted pursuant to Article 5.
|
1.20
|
“
Grandfathered Deferral Account
” shall mean the bookkeeping account (or subaccount(s)) maintained for each Participant to record the amount of Base Salary and/or Bonus deferred in accordance with Article 3 prior to January 1, 2005, adjusted pursuant to Article 5.
|
1.21
|
“Participant”
shall mean, except as otherwise provided in Article 2, each Eligible Executive who has executed a Deferral Agreement pursuant to the requirements of Section 2.01.
|
1.22
|
“Performance Bonus”
shall mean the amount, if any, awarded to an employee of the Company under the Company’s performance bonus program, long-term bonus program or other bonus program approved by the Compensation Committee, including but not limited to the Executive Annual Incentive Plan and the Executive Long Term Incentive Plan; provided that such amounts qualifies as performance based compensation under Section 409A of the Code and the regulations promulgated thereunder.
|
1.23
|
“
Performance Period
” shall mean the period of at lest 12 months over which an individual and/or company performance criteria is measured for purposes of a Company bonus program.
|
1.24
|
“Plan”
shall mean the Deferred Compensation Plan of John Wiley & Sons, Inc. as set forth in this document, as it may be amended from time to time. However, to the extent permitted or required under Code Section 409A, the term Plan may in the appropriate context also mean a portion of the Plan that is treated as a single plan under Treas. Reg. Section 1.409A-1(c), or the Plan or portion of the Plan and any other nonqualified deferred compensation plan or portion thereof that is treated as single plan under such section.
|
1.25
|
“Plan Administrator”
shall mean the individual(s) appointed by the Administrative Committee with the responsibilities set forth in this Plan.
|
1.26
|
“Plan Year”
shall mean the calendar year, except that the first Plan Year shall begin on the Effective Date.
|
1.27
|
“
Retirement
” shall mean a Separation from Service on or after a Participant has attained age 55.
|
1.28
|
“
Separation from Service
” shall mean a “Separation from Service” as such term is defined under the terms of the John Wily & Sons Supplemental Executive Retirement Plan as amended and restated effective as January 1, 2009.
|
1.29
|
“
Specified Employee
” shall mean “Specified Employee” as such term is defined under the terms of the John Wiley & Sons Inc. Supplemental Executive Retirement Plan as amended and restated effective as January 1, 2009.
|
1.30
|
“
Unforeseeable Emergency
”
shall mean a severe financial hardship to a Participant resulting from (a) an illness or accident of the Participant or the Participant’s spouse, beneficiary or dependent (as defined in Code Section 152, without regard to Section 152(b)(1), (b)(2) and (d)(1)(B)), (b) loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to the home not otherwise covered by insurance) or (c) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant; provided, however, that an Unforeseeable Emergency shall only exist to the extent the severe financial hardship would constitute an Unforeseeable Emergency under Code Section 409A, related regulations and other applicable guidance.
|
1.31
|
“Valuation Date”
shall mean each business day on which the New York Stock Exchange is open for business, or such other day as the Plan Administrator may determine.
|
|
(a)
|
An Eligible Executive shall become a Participant as of the earlier of (i) the date a Company Contribution is credited in accordance with Article 4 or (ii) the date such Eligible Executive first files a Deferral Agreement with the Plan Administrator; provided, however, such Deferral Agreement shall be effective for purposes of deferring Base Salary or Bonus only as provided in Article 3.
|
|
(b)
|
The Deferral Agreement shall be in writing and be properly completed upon a form approved by the Plan Administrator who shall be the sole judge of the proper completion thereof. Such Deferral Agreement shall provide, subject to the limitation specified in Section 3.02(a), for the deferral of a portion of the Eligible Executive’s Base Salary and Bonus and shall include such other provisions as the Administrative Committee deems appropriate.
|
|
(a)
|
Participation shall cease upon termination of a Participant’s employment with the Company, unless the Participant is entitled to benefits under the Plan, in which event his participation shall terminate when those benefits are distributed to him.
|
|
(b)
|
Subject to the provisions of Section 3.01 a Participant shall only be eligible to have Deferrals or Company Contributions credited on his behalf in accordance with Article 3 or 4, for as long as he remains an Eligible Executive.
|
|
(c)
|
If a former Participant whose participation in the Plan ceased under Section 2.02(a) or 2.02(b) is reemployed or reinstated as an Eligible Executive, the former Participant may again become a Participant in accordance with the provisions of Section 2.01.
|
|
(a)
|
(i)
|
Subject to the following provisions of this Section, prior to the close of an annual enrollment period established by the Administrative Committee in any Plan Year, an Eligible Executive may elect, subject to Section 3.02(a) below, to defer a portion of his Base Salary that is otherwise earned and payable in the next calendar year by filing a Deferral Agreement with the Plan Administrator. If an employee becomes an Eligible Executive after January 1 in any Plan Year, he may not elect to defer Base Salary for that year. If an employee is first employed by the Company after the close of the annual enrollment period and becomes an Eligible Executive prior to the beginning of the next Plan Year, he may elect, subject to following provisions of this Section and Section 3.02(a) below, to defer a portion of his Base Salary that is otherwise earned and payable in the next calendar year by filing a Deferral Agreement with the Plan Administrator no later than the last business day of the Plan Year in which he became an Eligible Executive.
|
|
(ii)
|
Subject to the following provisions of this Section, prior to the close of an annual enrollment period established by the Administrative Committee, an Eligible Executive who was employed on the first day of a Performance Period and who remains continuously employed through the date his Deferral Agreement is submitted, may elect to defer a portion of his Bonus earned with respect to that Performance Period but which is otherwise payable in the next calendar year; provided the Deferral Agreement is filed with Plan Administrator no later than six months before the end of the applicable Performance Period.
|
|
(b)
|
The Eligible Employee shall submit the Deferred Agreement in the manner specified by the Plan Administrator and a Deferral Agreement that is not timely filed shall be considered void and shall have no effect. The Plan Administrator shall establish procedures that govern deferrals elections under the Plan, including the ability to make separate elections for Base Salary and Bonuses. A Participant’s election to defer a portion of Base Salary for any Plan Year shall become irrevocable on the date established by the Administrative Committee but no later than the last day of the calendar year proceeding the calendar year the Base Salary is earned. A Participant’s election to defer a portion of Bonus earned with respect to the Performance Period beginning in the Plan Year shall become irrevocable on the date established by the Plan Administrator, but no later than six months prior to the end of the applicable Performance Period. A Participant may revoke or change his election to defer a portion of Base Salary or Bonus at any time prior to the date the election becomes irrevocable. Any such revocation or change shall be made in a form and manner determined by the Plan Administrator.
|
|
(c)
|
A Participant’s Deferral Agreement shall apply only with respect to Base Salary earned in the Plan Year following the Plan Year in which the Deferral Agreement is filed with the Plan Administrator under Section 3.01(a). A Participant’s Deferral Agreement shall only apply to a Bonus which is not readily ascertainable at the time the Deferral Agreement is filed with the Plan Administrator under Section 3.01(a). Any election to defer a Bonus which payable as a result of the Participant’s death or disability (as defined in Treasury regulations Section1.409A-1(e) or under a Change of Control prior to the end of the performance period will be void. An Eligible Executive must file, in accordance with the provisions of Section 3.01(a), a new Deferral Agreement for each Plan Year the Eligible Executive desires to defer a portion of Base Salary or Bonus.
|
|
(d)
|
If a Participant ceases to be an Eligible Executive after the date a Deferral Election becomes irrevocable but continues to be employed by the Company, he shall continue to be a Participant and his Deferral Agreement currently in effect shall remain in force for the remainder of the applicable Plan Year or Performance Period, but such Participant shall not be eligible to defer any portion of his Base Salary or Bonus earned in a subsequent Plan Year or Performance Period until such time as he shall once again become a Eligible Executive.
|
|
(e)
|
Notwithstanding anything in this Plan to the contrary, if an Eligible Executive
|
|
(i)
|
receives a withdrawal of deferred cash contributions on account of hardship from any plan which is maintained by the Company and which meets the requirements of Section 401(k) of the Internal Revenue Code (or any successor thereto) and
|
|
(ii)
|
is precluded from making contributions to such 401(k) plan for at least 6 months after receipt of the hardship withdrawal,
|
|
the Eligible Executive’s Deferral Agreements with respect to Base Salary or Bonus in effect at that time shall be cancelled. Any Base Salary or Bonus payment which would have been deferred pursuant to that Deferral Agreement but for the application of this Section 3.01(e) shall be paid to the Eligible Executive as if he had not entered into the Deferral Agreement.
|
|
(a)
|
An Eligible Executive may defer up to 25% of Base Salary and up to 100% of Bonus; provided the total amount of Bonus and Base Salary deferred in a calendar year beginning prior to January 1, 2009 shall not excess 25% of the sum of the Eligible Executive’s projected Base Salary for such calendar year and the Bonus received by the Eligible Executive in such calendar year.
|
|
(b)
|
At the direction of the Compensation Committee, the Administrative Committee may establish such other maximum or minimum limits on the amount of Base Salary or Bonus which may be deferred and/or the timing of such deferral. Eligible Executives shall be given written notice of any such limits prior to the date they take effect.
|
|
The amount of Deferrals shall be credited to such Participant’s Deferral Account no later than the first business day of the first calendar month following the date the Base Salary or Bonus would have been paid to the Participant in the absence of a Deferral Agreement.
|
|
Except as otherwise provided in Section 8.12, a Participant shall at all times be 100% vested in his Deferral Account.
|
|
To the extent the Company is prevented from making Company Contributions under Section 3.03 of the John Wiley & Sons Inc. Employee’s Savings Plan on behalf of a Participant in any calendar year in which he is a Participant hereunder by reasons of the limitation imposed on contributions by Section 402(g)(1) of the Internal Revenue Code or the limitation on compensation imposed by Section 401(a)(17) of said Code, such excess Company Contributions will be credited under this Plan with respect to deferrals made regarding Base Salary pursuant to Section 3.01 of this Plan, to the extent the amount of such Deferrals when added to the amount of deferred cash contributions the Participant has made under the John Wiley & Sons Inc. Employees’ Savings Plan during such calendar year do not exceed the amount of deferred cash contributions the Participant would have made pursuant to his deferred cash contribution election in effect under the John Wiley & Sons Inc. Employees’ Savings Plan during such calendar year, without reference to the limitation imposed on contributions by Section 402(g)(1) of the Internal Revenue Code or the limitation imposed on compensation by Section 401(a)(17) of said Code.
|
|
(a)
|
As of each Valuation Date, each Deferral Account and each Company Account shall be credited or debited with the amount of earnings or losses with which such Accounts would have been credited or debited, assuming it had been invested in one or more investment funds, or earned the rate of return of one or more indices of investment performance, designated by the Administrative Committee and elected by the Participant pursuant to Section 5.02 for purposes of measuring the investment performance of his Accounts.
|
|
(b)
|
The Administrative Committee shall designate at least one investment fund or index of investment performance and may designate other investment funds or investment indices to be used to measure the investment performance of a Participant’s Accounts. The designation of any such investment funds or indices shall not require the Company to invest or earmark their general assets in any specific manner. The Administrative Committee may change the designation of investment funds or indices from time to time, in its sole discretion, and any such change shall not be deemed to be an amendment affecting Participants’ rights under Section 7.02.
|
|
In the event the Administrative Committee designates more than one investment fund or index of investment performance under Section 5.01, each Participant shall file an investment election with the Plan Administrator with respect to the investment of his Deferrals and Company Contributions within such time period and on such form as the Administrative Committee may prescribe. The election shall designate the investment fund or funds or index or indices of investment performance which shall be used to measure the investment performance of the Participant’s Deferrals. If the Participant fails to make an investment election, his Accounts shall be invested in an investment fund or index, as determined by the Administrative Committee.
|
|
(a)
|
A Participant may change his election in Section 5.02 used to measure the investment performance of his future Deferrals and Company Contributions, within such time periods and in such manner prescribed by the Administrative Committee. The election shall be effective as soon as administratively practicable after the date on which notice is timely filed or at such other time as the Administrative Committee shall determine.
|
|
(b)
|
A Participant may change his election of the investment fund or funds or index or indices of investment performance used to measure the future investment performance of his existing Account balance, within such time periods and in such manner prescribed by the Administrative Committee. The election shall be effective as soon as administratively practicable after the date on which the notice is filed or at such other time as the Administrative Committee shall determine.
|
|
The Plan Administrator shall maintain, or cause to be maintained on its books, records showing the individual balance of each Participant’s Accounts. At least once a year each Participant shall be furnished with a statement setting forth the value of his Accounts.
|
|
(a)
|
The Plan Administrator shall value or cause to be valued each Participant’s Accounts at least quarterly. On each Valuation Date there shall be allocated to the Accounts of each Participant the appropriate amount determined in accordance with Section 5.01.
|
|
(b)
|
Whenever an event requires a determination of the value of Participant’s Accounts, the value shall be computed as of the Valuation Date coincident with, or immediately following, the date of the event.
|
|
(a)
|
Subject to the limitations set forth in this Article 6, each time a Participant elects to defer Base Salary and/or Bonus, the Participant shall designate on the applicable Deferral Agreement that the distribution of such Deferrals, as adjusted pursuant to Article 5, shall commence, pursuant to Section 6.03, on or after the occurrence of the later of (i) or (ii):
|
|
(i)
|
the Participant’s Separation from Service with the Company and all Affiliates or
|
|
(ii)
|
a designated year not later than his attainment of age 70-1/2.
|
|
(b)
|
(i)
|
In the event a Participant elects to have such Deferrals commence as of a designated year pursuant to clause (ii) above, he may not elect a year that is less than five (5) years, subsequent to the date he executed the Deferral Agreement. Distribution of such Deferrals, adjusted pursuant to Article 5, shall be based on the value as of the last business day of such designated year and payment shall be made in the February following the last day of that designated year.
|
|
(ii)
|
Notwithstanding the foregoing, in the event such Participant’s Separation from Service occurs for reasons other than Retirement or death prior to such designated year, the distribution of a Participant’s Deferral Account shall commence, pursuant to Section 6.03, in the seventh month following the date of his Separation from Service occurs. The value of such distribution shall be determined as of the last Valuation Date in the month following the date payment is to be made.
|
|
(c)
|
Notwithstanding any Plan provision to the contrary if a Participant’s Separation from Service is due to his Retirement, the portion of his Account scheduled to be paid upon Separation from Service shall commence in the seventh month following the month in which the Participant’s Retirement occurs. The value of such distribution shall be determined as of the last Valuation Date in the month following the date payment is to be made.
|
|
(d)
|
Notwithstanding any Plan provision to the contrary, in the event of the Participant’s death, his entire vested Account balance shall be paid to his Beneficiary within 90 days of the end of the month in which the Participant’s death occurs. The value of such distribution shall be determined as of the last Valuation Date in the month following the date payment is to be made.
A Beneficiary may not elect, directly or indirectly, when within such 90 day period payment under the paragraph (d) shall be made.
|
|
(e)
|
A Participant shall not change his designation of the event which entitles him to distribution of any portion of his Account.
|
|
(f)
|
Notwithstanding any Plan provision to the contrary, a distribution
due to Separation from Service, but not distributions due to death,
of a Participant who is a Specified Employee shall not commence earlier than the seventh month following the month in which such Participant’s Separation from Service occurs.
|
|
Notwithstanding anything in the Plan or in a Deferral Agreement to the contrary, the Administrative Committee may, if it determines an Unforeseeable Emergency exists which cannot be satisfied from other sources, approve a request by the Participant for a withdrawal from his vested Account. Such request shall be made in a time and manner determined by the Administrative Committee. The payment made from a Participant's Deferral Account pursuant to the provisions of this Section 6.02 shall be limited to the amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to pay any Federal, state, local or foreign income taxes or penalties reasonably anticipated to result from the distribution). Determinations of amounts necessary to satisfy the emergency need must take into account any additional compensation that is available, other than additional compensation that, due to the Unforeseeable Emergency, is available under another nonqualified deferred compensation plan but that has not actually been paid. This Section 6.02 is intended to comply with Code Section 409A, related regulations and any other applicable guidance and shall be interpreted accordingly so that distributions shall be permitted under this Section 6.02 only to the extent they comply with Code Section 409A
and the regulations promulgated thereunder.
|
|
(a)
|
Except as otherwise provided in paragraphs (b), (c) and (d) below, upon a Participant’s Retirement, the payment of the portion of his Deferral Account designated to be paid upon Separation from Service pursuant to a Section 6.01(a)(i) shall be made in approximately equal annual installments for a period of fifteen years. During such payment period, that portion of the Participant’s Deferral Account shall continue to be credited with earnings or losses as described in Section 5.01. The first installment shall be made as set forth in Section 6.01(a) above. Subsequent installments, if any, shall be paid in February of the year following the year in which the first installment is made. The amount of each installment shall equal the balance in the applicable portion of the Participant’s Deferral Account as of each Valuation Date of determination divided by the number of remaining installments (including the installment being determined).
|
|
(b)
|
Notwithstanding the foregoing, if a Participant incurs a Separation from Service for reasons other than Retirement or death, the Participant’s Deferral Account shall be distributed to him, in one lump sum payment.
|
|
(c)
|
If a Participant dies before receiving payment of the entire balance of his Deferral Account, an amount equal to the unpaid portion thereof shall be payable in one lump sum to his Beneficiary.
|
|
(d)
|
Notwithstanding any Plan provisions to the contrary, the Plan Administrator, may in its sole discretion, elect to pay the value of the Participant’s Account (including the value of his Grandfathered Deferral Account and Grandfathered Company Account) upon a Separation from Service for any reason in a single lump sum payment if the balance of his Account does not then exceed the then applicable dollar amount under Code Section 402(g)(1)(B), provided such payment represents the completed liquidation of the Participant’s interest in the Plan.
|
|
(a)
|
Upon Separation from Service with the Company and all Affiliates for reasons other than death, the amount credited to a Participant’s Company Account, to the extent vested under the terms of the Plan, shall be distributed to the Participant in one lump sum payment in the seventh month following the month in which such Participant’s Separation from Service occurs. The value of such distribution shall be determined as of the last Valuation Date in the month following the date payment is to be made.
|
|
(b)
|
In the event the Participant incurs a Separation from Service for reasons other than death prior to vesting in all or any part of the amount to the credit of his Company Account, such nonvested amount shall be forfeited.
|
|
(c)
|
Notwithstanding any Plan provision to the contrary, in the event of a Participant death while employed by the Company or an Affiliate, his Company Account shall be distributed to his Beneficiary in a single lump sum within 90 days of the end of the month in which his date of death occurs.
A Beneficiary may not elect, directly or indirectly, when within such 90 day period payment under the paragraph (d) shall be made.
|
|
Each Participant shall file with the Plan Administrator a written designation of one or more persons as the Beneficiary who shall be entitled to receive the amount, if any, payable under the Plan upon his death pursuant to Sections 6.03 and 6.04. A Participant may, from time to time, revoke or change his Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Plan Administrator. The last such designation received by the Plan Administrator shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Plan Administrator prior to the Participant’s death, and in no event shall it be effective as of a date prior to such receipt. If no such Beneficiary designation is in effect at the time of a Participant’s death, or if no designated Beneficiary survives the Participant, the Participant’s estate shall be deemed to have been designated his Beneficiary and shall receive the payment of the amount, if any, payable under the Plan upon his death.
|
|
The Company may, by action of the Board of Directors, terminate this Plan and the related Deferral Agreements at any time.
To the extent consistent with the rules relating to plan terminations and liquidations in Treasury Regulation Section 1.409A-3(j)(4)(ix) or otherwise consistent with Code Section 409A, the Company may provide that, without the prior written consent of Participants, all of the Participants’ Deferral and Company Accounts shall be distributed in a lump sum upon termination of the Plan. Unless so distributed, in the event of a Plan termination, the Company shall continue to maintain the Deferral and Company Accounts until distributed pursuant to the terms of the Plan and Participants shall remain 100% vested in all amounts credited to their Accounts.
|
|
The Company may, by action of the Board of Directors, amend this Plan and the related Deferral Agreements at any time and for any reason. If any amendment to this Plan or to the Deferral Agreements shall adversely affect the rights of a Participant with respect to the vested Account balances of any Participant accrued as of the date of any such amendment, such Participant must consent in writing to such amendment prior to its effective date. Notwithstanding the foregoing, a change in any investment fund or index under Section 5.01 or the imposition of additional limits upon future deferral elections shall not be deemed to adversely affect any Participant’s rights. Any action to amend the Plan by the Board of Directors shall be taken in such manner as may be permitted under the by-laws of the Company. The Board of Directors of the Company may delegate to the Administrative Committee the authority to amend the Plan without the consent of the Board of Directors for the purpose of (i) conforming the Plan without the consent of the Board of Directors for the purpose of (i) conforming the Plan to the requirements of law, (ii) facilitating the administration of the Plan, (iii) clarifying provisions based on the Administrative Committee’s interpretation of the document and (iv) making such other amendments as the Board of Directors may authorize.
|
|
Notwithstanding anything in this Plan to the contrary, any action to amend or terminate the Plan or the Deferral Agreements must be taken in a uniform and nondiscriminatory manner.
|
|
Notwithstanding any Plan provision to the contrary, the Company may at any time impose such restrictions on the Plan and participation therein, including limiting the amount of any Bonus deferred or the timing thereof, as the Company may deem advisable from time to time in order to comply or preserve compliance with any applicable laws, including any applicable state and federal securities laws and exemptions from registration available thereunder.
|
|
(a)
|
The Plan shall be administered by the Administrative Committee. The Administrative Committee shall have the exclusive responsibility and complete discretionary authority to control the operation, management and administration of the Plan, with all powers necessary to enable it properly to carry out such responsibilities, including, but not limited to, the power to interpret the Plan and any related documents, to establish procedures for making any elections called for under the Plan, to make factual determinations regarding any and all matters arising under the Plan, including, but not limited to, the right to determine eligibility for benefits, the right to construe the terms of the Plan, the right to remedy possible ambiguities, inequities, inconsistencies or omissions, and the right to resolve all interpretive, equitable or other questions arising under the Plan.
|
|
(b)
|
The Administrative Committee may delegate all or part of its administrative duties to one or more persons, whether or not such person or persons are members of the Administrative Committee or employees of the Company. The Administrative Committee (and, to the extent consistent with the scope of delegated administrative authority, the person or persons delegated authority hereunder) may engage agents and representatives, including recordkeepers and legal counsel, in connection with the administration of the Plan.
|
|
(c)
|
Any dispute between a Participant or Beneficiary and the Plan Administrator shall be subject to resolution by determination of the Administrative Committee.
|
|
(d)
|
All acts and decisions of the Administrative Committee shall be final, conclusive and binding upon all Participants, former Participants, Beneficiaries, and employees of the Company.
|
|
(e)
|
It is the intent of the Company that the Plan complies with Code Section 409A, related regulations and other applicable guidance promulgated with respect thereto and the provisions of the Plan shall be interpreted to be consistent therewith. Without limiting the foregoing, a Participant shall not be deemed to have experienced a Retirement until the Participant has had a "separation from service," as that term is used in Code Section 409A(a)(2)(A)(i) and defined in related regulations or other applicable guidance.
|
|
(a)
|
All amounts payable in accordance with this Plan shall constitute a general unsecured obligation of the Company. Such amounts, as well as any administrative costs relating to the Plan, shall be paid out of the general assets of the Company, to the extent not paid by a grantor trust established pursuant to paragraph (b) below.
|
|
(b)
|
The Company may, for administrative reasons, establish a grantor trust for the benefit of Participants participating in the Plan. The assets of said trust will be held separate and apart from other Company funds, and shall be used exclusively for the purposes set forth in the Plan and the applicable trust agreement, subject to the following conditions:
|
|
(i)
|
the creation of said trust shall not cause the Plan to be other than “unfunded” for purposes of Title I of ERISA;
|
|
(ii)
|
the Company shall be treated as “grantor” of said trust for purposes of Section 677 of the Internal Revenue Code of 1986, as amended (the “Code”); and
|
|
(iii)
|
said trust agreement shall provide that its assets may be used to satisfy claims of the Company’s general creditors, and the rights of such general creditors are enforceable by them under federal and state law.
|
|
The existence of this Plan or of a Deferral Agreement does not constitute a contract for continued employment between an Eligible Executive or a Participant and the Company. Except as otherwise limited by the terms of any valid employment contract or agreement entered into between the Company and an Eligible Executive or Participant, the Company reserves the right to modify an Eligible Executive’s or Participant’s remuneration and to terminate an Eligible Executive or a Participant for any reason and at any time, notwithstanding the existence of this Plan or of a Deferral Agreement.
|
|
All payments under this Plan shall be net of an amount sufficient to satisfy any federal, state or local tax withholding requirements.
|
|
Except insofar as may otherwise be required by law, no amount payable at any time under the Plan shall be subject in any manner to alienation by anticipation, sale, transfer, assignment, bankruptcy, pledge, attachment, charge or encumbrance of any kind nor in any manner be subject to the debts or liabilities of any person and any attempt to so alienate or subject any such amount, whether presently or thereafter payable, shall be void. If any person shall attempt to, or shall, alienate, sell, transfer, assign, pledge, attach, charge or otherwise encumber any amount payable under the Plan, or any part thereof, or if by reason of his bankruptcy or other event happening at any such time such amount would be made subject to his debts or liabilities or would otherwise not be enjoyed by him, then the Administrative Committee, if it so elects, may direct that such amount be withheld and that the same or any part thereof be paid or applied to or for the benefit of such person, his spouse, children or other dependents, or any of them, in such manner and proportion as the Administrative Committee deems proper.
|
|
The Plan Administrator shall provide adequate notice in writing to any Participant, former Participant or Beneficiary whose claim for a withdrawal or payment under this Plan has been denied, setting forth the specific reasons for such denial. A reasonable opportunity shall be afforded to any such Participant, former Participant or Beneficiary for a full and fair review by the Administrative Committee of a decision denying the claim. The Administrative Committee’s decision on any such review shall be final and binding on the Participant, former Participant or Beneficiary and all other interested persons.
|
|
If the Administrative Committee shall find that any person to whom any amount is or was payable hereunder is unable to care for his affairs because of illness or accident, or had died, then the Administrative Committee, if it so elects, may direct that any payment due him or his estate (unless a prior claim therefore has been made by a duly appointed legal representative) or any part thereof be paid or applied for the benefit of such person to his spouse, children or other dependents, to an institution maintaining or having custody of such person, or to any other person deemed by the Plan Administrator to be a proper recipient on behalf of such person otherwise entitled to payment, in such manner and proportion as the Administrative Committee may deem proper. Any such payment shall be in complete discharge of the liabilities of the Company and the Plan therefore.
|
|
The Company, the members of the Compensation Committee and of the Administrative Committee, the Plan Administrator, and any officer, employee or agent of the Company shall not incur any liability individually or on behalf of any other individuals or on behalf of the Company for any act or failure to act, made in good faith in relation to this Plan.
|
|
The Company, the members of the Compensation Committee and of the Administrative Committee, the Plan Administrator, and the officers, employees and agents of the Company shall, unless prohibited by any applicable law, be indemnified against any and all liabilities arising by reason of any act or failure to act in relation to the Plan including, without limitation, expenses reasonably incurred in the defense of any claim relating to the Plan, amounts paid in any compromise or settlement relating to the Plan and any civil penalty or excise tax imposed by any applicable statue, if:
|
|
(a)
|
the act or failure to act shall have occurred
|
|
(i)
|
in the course of the person’s service as an officer, employee or agent of the Company or as a member of the Compensation Committee or of the Administrative Committee, or as the Plan Administrator, or
|
|
(ii)
|
in connection with a service provided with or without charge to the Plan or to the Participants or Beneficiaries of the Plan, if such service was requested by the Compensation Committee or the Administrative Committee or the Plan Administrator; and
|
|
(b)
|
the act or failure to act is in good faith and in, or not opposed to, the best interests of the Company.
|
|
This determination shall be made by the Company and, if such determination is made in good faith and not arbitrarily or capriciously, shall be conclusive.
|
|
The foregoing indemnification shall be from the assets of the Company. However, the Company’s obligation hereunder shall be offset to the extent of any otherwise applicable insurance coverage under a policy maintained by the Company or any other person, or other source of indemnification.
|
|
All administrative expenses of the Plan and all benefits under the Plan shall be paid from the general assets of the Company.
|
|
In the event that a Participant shall at any time be convicted of a crime involving dishonesty or fraud on the part of such Participant in his relationship with the Company or an Affiliate, all benefits that would otherwise be payable to him under the Plan shall be forfeited. The determination as to whether a Participant has been convicted of a crime involving dishonesty or fraud on the part of the Participant in his relationship with the Company or an Affiliate shall be made by the Administrative Committee in a fair and reasonable manner and the decision of the Administrative Committee with respect thereto shall be conclusive.
|
|
This Plan shall be binding upon and inure to the benefit of the Company and its successors and assignees and the Eligible Executive, his designees and his estate. Nothing in this Plan shall preclude the Company from consolidating or merging into or with, or transferring all or substantially all of its assets to, another corporation which assumes this Plan and all obligations of the Company hereunder. Upon such a consolidation, merger or transfer of assets and assumption, the term “Company” shall refer to such other corporation and this Plan shall continue in full force and effect.
|
|
All elections, designations, requests, notices, instructions, and other communications from an Eligible Executive or other person to the Plan Administrator required or permitted under the Plan shall be in such form as is prescribed from time to time by the Plan Administrator, shall be mailed by first-class mail or delivered to such location as shall be specified by the Plan Administrator, and shall be deemed to have been given and delivered only upon actual receipt thereof at such location.
|
|
The Administrative Committee, in its sole and absolute discretion, may elect to accelerate the time or form of payment of a benefit owed to the Participant hereunder, provided such acceleration is permitted under Treas. Reg. Section 1.409A-3(j)(4). The Administrative Committee may also, in its sole and absolute discretion, delay the time for payment of a benefit owed to the Participant hereunder, to the extent permitted under Treas. Reg. Section 1.409A-2(b)(7)..
|
|
The Company may require each Eligible Executive to assist it in obtaining life insurance policies on the lives of each Eligible Executive, which policies would be owned by, and be payable to, the Company. The Eligible Executive may be required to complete an application for life insurance, furnish underwriting information including medical examinations by a life insurance company-approved examiner, and authorize release of medical history to the life insurance company’s underwriter, as designated by the Company. An Eligible Executive shall have no right or interest in such policies or the proceeds thereof.
|
|
(a)
|
The Plan is intended to constitute an unfunded deferred compensation arrangement for a select group of management or highly compensated employees and therefore exempt from the requirements or Sections 201, 301 and 401 of ERISA. All rights hereunder shall be governed by and construed in accordance with the laws of the State of New York.
|
|
(b)
|
The masculine pronoun shall mean the feminine wherever appropriate.
|
(c)
|
The captions preceding the sections and articles hereof have been inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provisions of the Plan.
|
|
The payment by the C
ompany
of the benefits due under each and every Deferral Agreement to the Participant or his Beneficiary shall discharge the Co
mpany’s
obligation under the Plan, and the Participant or Beneficiary shall have no further rights under this Plan or the Deferral Agreements upon receipt by the appropriate person of all such benefits.
|
|
The Plan shall be binding upon the successors and assigns of the Co
mpany
, whether such succession is by purchase, merger or otherwise.
|
|
_______________________________________
|
|
_______________________________________
|
1.08
|
“Change of Control” shall mean, effective on and after January 1, 2009, the later of a “Change of Control” as such term is defined under the terms of the John Wiley & Sons Inc. Supplemental Executive Retirement Plan as amended and restated effective as January 1, 2009
or a “Change of Control” as defined in Section 1.08 of the Plan as in effect on October 3, 2004 without regard to any amendments after such date which would constitute a material modification for purposes of Section 409A of the Code.
|
5.03
|
“Changing Investment Elections” The provisions of Section 5.03 as set forth in the foregoing provisions of the Plan as amended and restated effective as January 1, 2009 shall be applicable to a Participant’s Grandfathered Deferral and Grandfathered Company Account on and after January 1, 2009.
|
6.01
|
“Commencement of Payment”
|
(b) |
(i)
|
In the event a Participant elects to have any Deferrals held in his Grandfathered Deferral Account commence as of a designated year pursuant to clause (ii) of Section 6.01(a), distribution of such Deferrals, adjusted pursuant to Article 5, shall be based on the value as of the last business day of such designated year and payment shall be made in the February following the last day of that designated year.
|
|
(ii)
|
Notwithstanding the foregoing, in the event such Participant’s Separation from Service occurs for reasons other than Retirement or death prior to such designated year, the value of such distribution shall be determined as of the last Valuation Date in the month following the date payment is to be made.
|
|
(c)
|
Notwithstanding any Plan provision to the contrary if a Participant’s Separation from Service is due to his Retirement, the value of the portion of his Grandfathered Deferral Account scheduled to be paid upon his Retirement shall be determined as of the last Valuation Date in the month following the date payment is to be made. Notwithstanding any Plan provision to the contrary, in the event of the Participant’s death, his entire vested Grandfathered Deferral Account balance and Grandfathered Company Account balance shall be paid to his Beneficiary within 90 days of the end of the month in which the Participant’s death occurs. The value of such distribution shall be determined as of the last Valuation Date in the month following the date payment is to be made.
|
Section
|
Subject
|
Page
|
I.
|
Definitions
|
2
|
II.
|
Plan Objectives
|
3
|
III.
|
Eligibility
|
3
|
IV.
|
Performance Targets and Measurement
|
4
|
V.
|
Performance Evaluation
|
4
|
VI.
|
Restricted Performance Shares Award Provisions
|
5
|
VII.
|
Stock Options
|
6
|
VIII.
|
Payouts
|
6
|
IX.
|
Administration and Other Matters
|
7
|
A.
|
Performance targets, comprising one or more financial goals, are defined for each business unit. Each financial goal is assigned a weight, such that the sum of the weights of all financial goals for a business unit equals 100%.
|
B.
|
Each
participant
is assigned
performance targets
for one or more
business units,
based on the
participant’s
position, responsibilities, and his/her ability to affect the results of the assigned
business unit
. For each
participant
, each
business unit
is assigned a weight
,
such that the sum of the weights of all
business units
for a
participant
equals 100%
.
Collectively, all
business unit performance targets
constitute the
participant’s plan period
objectives.
|
C.
|
Each financial goal is assigned performance levels (threshold, target and outstanding).
|
A.
|
Financial Results
|
1.
|
At the end of the
plan period,
the
financial results
for each
business unit
are compared with that unit’s
financial goals
to determine the
payout
for each
participant
.
|
2.
|
In determining the attainment of
financial goals
, the impact of any of the events (a) through (i) listed in Section 7(b)(ii)(B) of the
shareholder plan,
if dilutive (causes a reduction in the
financial result
) will be excluded from the
financial results
for any affected
business unit.
|
3.
|
Award Determination
|
a.
|
Achievement of
threshold
performance of at least one
financial goal
of a
performance target
is necessary for a
participant
to receive a
payout
for that
performance target
.
|
b.
|
The unweighted
payout factor for each
financial goal
is determined as follows:
|
1.
|
For performance below the
threshold
level, the
payout factor is zero.
|
2.
|
For performance at the
threshold
level, the payout factor is 25%.
|
3.
|
For performance between the
threshold
and
target
levels, the payout factor is between 25% and 100%, determined on a pro-rata basis.
|
4.
|
For performance at the
target
level, the payout factor is 100%.
|
5.
|
For performance between the
target
and
outstanding
levels, the payout factor is between 100% and 200%, determined on a pro-rata basis.
|
6.
|
For performance at or above the
outstanding
level, the payout factor is 200%.
|
c.
|
A
participant’s
plan-end adjusted restricted performance shares award
is determined as follows:
|
1.
|
Each
financial goal’s
unweighted
payout factor determined above times the weighting of that
financial goal
equals the weighted
payout factor
for
that
financial goal
|
2.
|
The sum of the weighted
payout factor
s
for a
business unit’s
performance target
equals the
payout factor for that
performance target.
|
3.
|
The participant’s target incentive
|
4.
|
The sum of the payouts for all the business units assigned to a
participant
equals the
participant’s
total
plan-end adjusted restricted performance shares award
.
|
d.
|
The
Committee
may, in its sole discretion, reduce a
participant
’s payout to any level it deems appropriate.
|
A.
|
Restricted performance shares
, equal to a
participant
’s
target incentive,
shall be determined at the beginning of the
plan period.
In addition to the terms and conditions set forth in the
shareholder plan,
the
restricted period
for the
plan-end adjusted restricted performance shares
award
shall be as follows: subject to continued employment except as otherwise set forth in the
shareholder plan,
the lapse of restrictions on one-half of the
restricted performance shares
awarded will occur on the first anniversary of the
plan period
end date (April 30, 2014), at which time the
participant
will receive a stock certificate in a number of shares equal to one-half of the
restricted performance shares
awarded with the restrictive legend deleted, and the lapse of restrictions on the remaining half will occur on the second anniversary of the
plan period
end date (April 30, 2015) at which time the
participant
will receive a new stock certificate in a number of shares equal to the remaining half with the restrictive legend deleted.
|
B.
|
The
plan-end adjusted restricted performances share award
will be compared to the
restricted performance shares
targeted at the beginning of the
plan period
, and the appropriate amount of
restricted performance shares
will be awarded or forfeited, as required, to bring the
restricted performance shares
award to the number of shares designated as the
plan-end
adjusted restricted performance shares award
.
|
A.
|
Normal Payout
.
Plan-end adjusted restricted performances share awards
will be made within 2-1/2 months after the end of the plan period.
|
B.
|
Resignation or Termination with or without Cause
. Except as otherwise provided in this Section VIII or in a written agreement approved by the
Committee
, a
participant
who resigns, or whose employment is terminated by the
Company
, with or without cause before the
award
is vested, will forfeit the right to receive an
award
.
|
C.
|
Death or Disability
. Solely to the extent provided by the
Committee
in the award summary or in a written agreement, in the event of a
participant’s
death or disability while in employment prior to the end of the
plan period
, the
participant
(or, in the event of death, his or her estate) will receive a prorated
plan-end adjusted performance share award
which shall be paid out in shares based upon actual performance upon the conclusion of the plan period, within 2-1/2 months after the end of the plan period. “Disability” for this purpose will be determined by the
Committee
under a definition permitted under Code Section 409A.
|
D.
|
Retirement
. Except as otherwise provided in this Section VIII or in a written agreement approved by the
Committee
, in the event of a
participant’s
retirement at or after age 55 with at least 10 years of service prior to the end of the
plan period
, the
participant
will receive a prorated
plan-end adjusted performance share award
(as determined by the
Committee
) which shall be paid out in shares based upon actual performance upon the conclusion of the
plan period
, within 2-1/2 months after the end of the plan period.
|
E.
|
Change of Control
. In the event of a Change of Control, as that term is defined in the
shareholder plan
, during the
plan period
, all then outstanding “
target
”
restricted performance share
s shall immediately become fully vested.
|
F.
|
Restricted Stock for Completed Plan Periods
. In the event of the participant’s death, Disability, retirement at or after age 55 with at least 10 years of service, or the occurrence of a Change of Control, as that term is defined in the
shareholder plan
, following the end of the
plan period
but prior to full vesting of the
plan-end adjusted restricted performance share awards
, such
restricted performance shares
shall immediately become fully vested.
|
G.
|
Change in Position
. A
participant
who is hired or promoted into an eligible position during the
plan period
may receive a prorated
plan-end adjusted restricted performances share award
as determined by the
Committee
, in its sole discretion.
|
A.
|
The
plan
will be administered by the
Committee
, which shall have authority in its sole discretion to interpret and administer this
plan
, including, without limitation, all questions regarding eligibility and status of any
participant
, and no
participant
shall have any right to receive a payout or payment of any kind whatsoever, except as determined by the
Committee
hereunder.
|
B.
|
The
Company
will have no obligation to reserve or otherwise fund in advance any amount which may become payable under the
plan
.
|
C.
|
This
plan
may not be modified or amended except with the approval of the
Committee
, in accordance with the provisions of the
shareholder plan.
|
D.
|
In the event of a conflict between the provisions of this
plan
and the provisions of the
shareholder plan
, the provisions of the
shareholder plan
shall apply.
|
E.
|
No awards of any type under this
plan
shall be considered as compensation for purposes of defining compensation for retirement, savings or supplemental executive retirement plans, or any other benefit.
|
Section
|
Subject
|
Page
|
I.
|
Definitions
|
2
|
II.
|
Plan Objectives
|
3
|
III.
|
Eligibility
|
3
|
IV.
|
Performance Targets and Measurement
|
3
|
V.
|
Performance Evaluation
|
4
|
VI.
|
Payouts
|
5
|
VII.
|
Administration and Other Matters
|
5
|
|
I.
|
DEFINITIONS
|
|
II.
|
PLAN OBJECTIVES
|
|
III.
|
ELIGIBILITY
|
|
IV.
|
PERFORMANCE TARGETS AND MEASUREMENT
|
A.
|
Performance targets,
comprising one or more
financial goals,
are defined for each
business unit
. Each
financial goal
is assigned a weight, such that the sum of the weights of all
financial goals
for a
business unit
equals 100%.
|
B.
|
Each
participant
is assigned
performance targets
for one or more
business units ,
based on the
participant’s
position, responsibilities, and his/her ability to affect the results of the assigned
business unit
. For each
participant
, each
business unit
is assigned a weight
,
such that the sum of the weights of all
business units
for a
participant
equals 100%
.
Collectively, all
business unit performance targets
constitute the
participant’s plan period
objectives.
|
C.
|
Each
financial goal
is assigned
performance levels
(
threshold
,
target
and
outstanding
).
|
|
V.
|
PERFORMANCE EVALUATION
|
A.
|
Financial Results
|
1.
|
At the end of the
plan period,
the
financial results
for each
business unit
are compared with that unit’s
financial goals
to determine the
payout
for each
participant
.
|
2.
|
In determining the attainment of
financial goal
s,
|
a.
|
the impact of foreign exchange gains or losses will be excluded from
revenue
,
business EBITA
and
contribution to profit
criteria.
|
b.
|
the impact of any of the events (1) through (9) listed in Section 4(b)(ii) of the
shareholder plan,
if dilutive (causes a reduction in the
financial result
), will be excluded from the
financial results
of any affected
business unit.
|
3.
|
Award Determination
|
a.
|
Achievement of
threshold
performance of at least one
financial goal
of a
performance target
is necessary for a
participant
to receive a
payout
for that
performance target
.
|
b.
|
The unweighted
payout factor for each
financial goal
is determined as follows:
|
1.
|
For performance below the
threshold
level, the
payout factor is zero.
|
2.
|
For performance at the
threshold
level, the payout factor is 25%.
|
3.
|
For performance between the
threshold
and
target
levels,
the
payout factor is between 25% and 100%, determined on a pro-rata basis.
|
4.
|
For performance at the
target
level, the
payout factor is 100%.
|
5.
|
For performance between the
target
and
outstanding
levels, the
payout factor is between 100% and 200%, determined on a pro-rata basis.
|
6.
|
For performance at or above the
outstanding
level, the payout factor is 200%.
|
c.
|
A
participant’s payout
is determined as follows:
|
1.
|
Each
financial goal’s
unweighted
payout factor determined above times the weighting of that
financial goal
equals the weighted
payout factor
for
that
financial goal.
|
2.
|
The sum of the weighted
payout factors
for a
business unit
’s
performance target
equals the
payout factor for that
performance target.
|
3.
|
The
participant’s total annual incentive opportunity
|
4.
|
The sum of the
payouts
for all the
business units
assigned to a
participant
equals the
participant’s
total
payout.
|
d.
|
The
Committee
may, in its sole discretion, reduce a
participant
’s
payout
to any level it deems appropriate.
|
VI.
|
PAYOUTS
|
A.
|
Payouts
will be made within 90 days after the end of the
plan period.
|
B.
|
In the event of a
participant's
death, disability, retirement or leave of absence prior to the end of the
plan period
, the
payout
, if any, will be determined by the
Committee.
|
C.
|
A
participant
who resigns, or whose employment is terminated by the
Company
, with or without cause, before the end of the
plan period
, will not receive a
payout
. Exception to this provision shall be made with the approval of the
Committee
, in its sole discretion.
|
D.
|
A
participant
who is hired or promoted into an eligible position during the
plan period
may receive a prorated
payout
as determined by the
Committee
, in its sole discretion.
|
VII.
|
ADMINISTRATION AND OTHER MATTERS
|
|
A.
|
The
plan
will be administered by the
Committee
, which shall have authority in its sole discretion to interpret and administer this
plan
, including, without limitation, all questions regarding eligibility and status of any
participant
, and no
participant
shall have any right to receive a payout or payment of any kind whatsoever, except as determined by the
Committee
hereunder.
|
|
B. The
Company
will have no obligation to reserve or otherwise fund in advance any amount which may become payable under the
plan
.
|
|
C. This
plan
may not be modified or amended except with the approval of the
CC,
in accordance with the provisions of the
shareholder plan.
|
D.
|
In the event of a conflict between the provisions of this
plan
and the provisions of the
shareholder plan
, the provisions of the
shareholder plan
shall apply.
|
Section
|
Subject
|
Page
|
I.
|
Definitions
|
2
|
II.
|
Plan Objectives
|
3
|
III.
|
Eligibility
|
3
|
IV.
|
Performance Objectives and Measurement
|
3
|
V.
|
Performance Evaluation
|
3
|
VI.
|
Payouts
|
4
|
VII.
|
Administration and Other Matters
|
5
|
A.
|
Strategic milestones
are non-financial individual objectives over which the
participant
has a large measure of control, which lead to, or are expected to lead to, improved performance for the
Company
in the future.
Strategic milestones
are determined near the beginning of the
plan year
by the
participant
, and approved by CEO or the
participant's
manager, if the CEO is not the
participant's
manager.
|
B.
|
The
strategic milestones
for the President and CEO are reviewed and approved by the
Committee.
|
C.
|
The
strategic milestones
for the President and CEO should be appropriately reflected in those of all other colleagues at all levels. Each
participant
collaborates with his/her manager in setting
strategic milestones
. The
strategic milestones
may be revised during the
plan year
, as appropriate.
|
D.
|
The determination of
strategic milestones
includes defining a
target
level of performance and the measure of such, and may include defining
threshold
and
outstanding
levels of performance and the measures of such.
|
A.
|
Achievement of a
participant's strategic milestones
will be determined at the end of the
plan year
by comparing results achieved to previously set objectives.
|
B.
|
The President and CEO will recommend for each
participant
a
summary evaluation level
and a
payout factor
for achievement of all
strategic milestones,
by comparing results achieved to the previously set objectives. In determining the
payout factor
, the overall performance on all
strategic milestones
will be considered. The
Committee
will approve the
payout factor
for all
participants
.
|
|
Summary evaluation levels and related
payout factors
are as follows:
|
C.
|
Award Determination
|
|
1.
|
Notwithstanding anything to the contrary, the maximum
payout
, if any, a
participant
may receive is 200% of the
target incentive amount
.
|
|
2.
|
The foregoing
strategic milestones
payout
eligibility calculation is intended to set forth general guidelines on how awards are to be determined. The purpose of this
plan
is to motivate the
participant
to perform in an
outstanding
manner. The President and CEO has discretion under this
plan
to take into consideration the contribution of the
participant
, the
participant's
management of his/her organizational unit and other relevant factors, positive or negative, which impact the
Company's
, the
participant's
organizational unit(s), and the
participant's
performance overall in determining whether to recommend granting or denying an award, and the amount of the award, if any. If the
participant
is the President and CEO, such discretion is exercised by the
Committee
.
|
A.
|
Payout
s will be made within 90 days after the end of the
plan year.
|
B.
|
In the event of a
participant's
death, disability, retirement or leave of absence prior to the end of the
plan year
, the
payout
, if any, will be recommended by the President and CEO to the
Committee
which shall have sole authority for approval of the payout.
|
C.
|
A
participant
who resigns, or whose employment is terminated by the
Company
, with or without cause, before the end of the
plan year
, will not receive a
payout
. Exception to this provision shall be made with the approval of the
Committee
, in its sole discretion.
|
D.
|
A
participant
who transfers between businesses of the
company
, will have his/her
payout
prorated to the nearest fiscal quarter for the time spent in each business, based on the achievement of
strategic milestones
established for the position in each business, and based upon a judgment of the
participant's
contribution to the achievement of goals in each position, including interim revisions, if appropriate.
|
E.
|
A
participant
who is appointed to a position with a different
target incentive percent
will have his/her
payout
prorated to the nearest fiscal quarter for the time spent in each position, based on the achievement of
strategic milestones
established for each position.
|
F.
|
A
participant
who is hired or promoted into an eligible position during the
plan year
may receive a prorated
payout
as determined by the CEO, in his/her sole discretion, subject to the approval of the
Committee
.
|
A.
|
The
plan
is effective for the
plan year
. It will terminate, subject to
payout
, if any, in accordance with and subject to the provisions of this
plan.
|
B.
|
This
plan
will be administered by the President and CEO, who will have authority to interpret and administer this
plan
, including, without limitation, all questions regarding eligibility and status of the
participant
, subject to the approval of the
Committee
.
|
C.
|
This
plan
may be withdrawn, amended or modified at any time, for any reason, in writing, by the
Company.
|
D.
|
The determination of an award and
payout
under this
plan
, if any, is subject to the approval of the President and CEO and the
Committee
. This
plan
does not confer upon any
participant
the right to receive any
payout
, or payment of any kind whatsoever.
|
E.
|
No
participant
shall have any vested rights under this
plan
. This
plan
does not constitute a contract.
|
F.
|
All deductions and other withholdings required by law shall be made to the
participant's
payout
, if any.
|
Jurisdiction
|
|
In Which
|
|
Incorporated
|
|
John Wiley & Sons International Rights, Inc.
|
Delaware
|
JWS HQ, LLC
|
New Jersey
|
JWS DCM, LLC
|
New Jersey
|
Wiley-Liss, Inc.
|
Delaware
|
Wiley Publishing Services, Inc.
|
Delaware
|
Wiley Subscription Services, Inc.
|
Delaware
|
WWL Corp.
|
Delaware
|
John Wiley & Sons (Asia) Pte. Ltd.
|
Singapore
|
John Wiley & Sons Australia, Ltd.
|
Australia
|
John Wiley & Sons Canada Limited
|
Canada
|
John Wiley & Sons (HK) Limited
|
Hong Kong
|
Wiley HMI Holdings, Inc.
|
Delaware
|
Wiley Europe Investment Holdings, Ltd.
|
United Kingdom
|
Wiley U.K. (Unlimited Co.)
|
United Kingdom
|
Wiley Europe Ltd.
|
United Kingdom
|
John Wiley & Sons, Ltd.
|
United Kingdom
|
Wiley Heyden Ltd.
|
United Kingdom
|
Wiley Distribution Services Ltd.
|
United Kingdom
|
Blackwell Publishing (Holdings) Ltd.
|
United Kingdom
|
Blackwell Publishing Ltd.
|
United Kingdom
|
Wiley Services Singapore Pte. Limited
|
Singapore
|
Blackwell Science Ltd.
|
United Kingdom
|
Blackwell Science (Overseas Holdings)
|
United Kingdom
|
Munksgaard Als
|
Denmark
|
Blackwell – Verlag GmbH
|
Germany
|
Blackwell Pub. Asia Put. Ltd.
|
Australia
|
Blackwell Science KK
|
Japan
|
Blackwell Science (HK) Ltd.
|
Hong Kong
|
HMI Investment, Inc
|
Delaware
|
Wiley Publishing Inc.
|
Delaware
|
Wiley India Private Ltd.
|
India
|
Wiley Publishing Australia Pty Ltd.
|
Australia
|
John Wiley & Sons GmbH
|
Germany
|
Wiley-VCH Verlag GmbH & Co. KGaA
|
Germany
|
GIT Verlag GmbH & Co. KG
|
Germany
|
(1)
|
The names of other subsidiaries that would not constitute a significant subsidiary in the aggregate have been omitted.
|
1.
|
I have reviewed this annual report on Form 10-K of the Company;
|
2.
|
Based on my knowledge, this annual report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and
|
d.
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent function):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting that are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
By:
|
||
William J. Pesce
|
||
President and Chief Executive Officer
|
||
Dated: June 23, 2010
|
1.
|
I have reviewed this annual report on Form 10-K of the Company;
|
2.
|
Based on my knowledge, this annual report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and
|
d.
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and
|
5.
|
The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent function):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting that are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.
|
By:
|
||
Ellis E. Cousens
|
||
Executive Vice President and
|
||
Chief Financial and Operations Officer
|
||
Dated: June 23, 2010
|
(1)
|
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
By:
|
||
William J. Pesce
|
||
President and Chief Executive Officer
|
||
Dated: June 23, 2010
|
(1)
|
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
By:
|
||
Ellis E. Cousens
|
||
Executive Vice President and
|
||
Chief Financial and Operations Officer
|
||
Dated: June 23, 2010
|