A deferred compensation plan is a "nonqualified" plan that allows you to defer pre-tax compensation in addition to the amounts you save in a qualified plan, such as the Retirement Savings Plan.

Generally, a nonqualified deferred compensation plan is an agreement or promise by an employer to its employees to pay compensation to the employees at some future date. This allows you to reduce your current income tax liability while focusing on tomorrow's financial needs.

To keep you from having to pay taxes immediately on the compensation you are deferring, it must remain out of your control. Your deferred compensation is held in a special trust. The trust assets are solely for the benefit of the employees participating in this plan. But the trust is part of Komatsu's assets and, as a result, the trust would be subject to the claims of creditors if Komatsu were to declare bankruptcy.

Each year you choose to participate, you make the following elections during your enrollment windows:

• The percentage of your base pay or bonus you want to defer;
• How to invest those contributions (Note: You can change the way your account is invested at virtually any time).

Upon your initial enrollment only, you will make a distribution election for company contributions. In addition, when you first choose to defer base pay and/or bonus, you will make separate distribution elections for each source of deferrals chosen.

To keep you from having to pay taxes immediately on the compensation you elect to defer, it must remain out of your control. You direct how your contributions are invested, but your deferred compensation is held in a special trust. The trust assets are solely for the benefit of the employees participating in this plan. But the trust is part of Komatsu's assets and, as a result, the trust would be subject to the claims of creditors if Komatsu were to declare bankruptcy.

Those executives who participate in Komatsu Mining Corp.’s U.S. retirement programs and are eligible for a target bonus of 35% or greater may participate in the DCP.

As an eligible employee, you will automatically be "enrolled" in the DCP if you receive company contributions that are above the IRS contribution limits or associated with compensation above the IRS maximums in the Retirement Savings Plan. Examples of contributions include the 5% fixed contribution and the 3% “matching” contributions (regardless of personal deferral rate).

There are two enrollment windows each year. In August, you will have the opportunity to elect to defer your bonus pay for the fiscal year, paid in June the year following. In November each year that you are eligible, you can elect to defer base pay for the following plan year. For example, you would enroll in November of 2024 for your 2025 base pay.

During the enrollment windows, you can defer:

• Between 1% and 50% of annual base pay; or
• Between 1% and 100% of the bonus you will earn in the coming year.

If you are newly hired or become eligible
You can enroll and make a base pay election during the first 30 days after your eligibility date.

If you are newly hired or become eligible after the bonus enrollment window closes
Within 30 days after your eligibility date, you can elect to defer:

• Between 1% and 50% of annual base pay; and
• Between 1% and 100% of the bonus you will earn in the coming year.

Eligible compensation for base pay includes regular earnings paid to you while you are participating in the plan. Base pay does not include pay for bonuses. You may elect to defer the bonus you will earn in the current year under a separate deferral election.

Once you've made your deferral election for that year, it is irrevocable and cannot be changed. You may change your deferral election each year during the enrollment period.

No. Elections are not "evergreen." You must re-enroll each year if you want to defer.

Money in the Deferred Compensation Plan is subject to investment risk and company risk if Komatsu were to declare bankruptcy. As an employee contributing to the DCP, you are liable for any losses incurred as a result of your participation in this plan.

• Your deferred compensation is held in a special trust solely for the benefit of the employees participating in this plan. The trust is part of Komatsu's assets and, as a result, the trust would be subject to the claims of creditors if Komatsu were to declare bankruptcy. In that case, you could lose some or all of their deferrals plus any earnings on those deferrals.
• Finally, because you decide how your deferrals will be allocated among the investment options available, it's important to know that investing involves risk. The value of an investment option will fluctuate over time, which could affect your balance when it is distributed.

Yes, you may continue to contribute to the Retirement Savings Plan and, in fact, are encouraged to maximize your contributions to the Retirement Savings Plan. The DCP is designed to help make up for the "savings gap" that occurs because contributions to the Retirement Savings Plan are subject to annual contribution limits set by the IRS.

The Deferred Compensation Plan offers you a way to defer additional pre-tax income beyond the limits imposed on contributions into the Retirement Savings Plan ($22,500 for 2023, 2024 limit pending). Additionally, the DCP provides an opportunity to make up for the "savings gap" for those who reach the IRS limits within the Retirement Savings Plan prior to the end of the year — and hence miss out on the full company contributions. An additional company contribution will be made into the DCP equal to the amount of the missed company contribution in the Retirement Savings Plan for participants who meet the criteria for this contribution (see the About the Plan section for additional details).

One of the potential downsides of the DCP as compared to the Retirement Savings Plan is that nonqualified plans do not offer the protection of ERISA and must comply with certain rules in order to maintain their status as nonqualified plans. One of these requirements is that the plan assets must continue to remain assets of Komatsu. Your deferred compensation is held in a special trust solely for the benefit of the employees participating in this plan, but because the trust is part of Komatsu's assets, the trust would be subject to the claims of creditors if Komatsu were to declare bankruptcy.

Yes, the intent of the DCP is to ensure you receive all company contributions you are eligible for regardless of IRS limits. If you are expected to reach the 401(a)(17) compensation limit ($330,000 in 2023, 2024 limit pending), then company contributions may be made in the DCP to be sure you realize the full retirement benefit available. Examples of contributions include the 5% fixed contribution and the 3% “matching” contributions (regardless of personal deferral rate).

You are immediately 100% vested in both your contributions and any Komatsu contributions made after May 1, 2012.

When you initially enroll, you can choose to have your employee and employer contributions made on or after May 1, 2012 distributed to you in one of the following ways:

• Lump sum; or
• Annual installments for 5, 10 or 15 years.

You may choose to have a separate distribution election for your base pay, bonus and for any company contributions made on or after May 1, 2012. The distribution election you make for employee deferrals (base pay or bonus) and company contributions apply for that source and each time a contribution is made in that source. Your distribution elections can change only once in the future and any election to change must be made at least 12 months prior to the date you originally elected to receive payment of the account balance.

Please note that your payments will begin six months after your separation from Komatsu, unless you change your distribution during the one-time opportunity, in which case your payments will begin five years and six months after your original payment date. The default payment for company contributions made on or after May 1, 2012 is a lump sum if you make no distribution election. There is no default form of payment for base pay and/or bonus deferrals. If you elect to defer base pay and/or bonus, you will not complete the enrollment process until you select a form of payment. Balances from contributions made prior to May 1, 2012 will automatically be paid as a lump sum six months following separation from service.

The distribution elections you make the first time you choose to defer in the plan for employee and company contributions made on or after May 1, 2012 will remain in effect. This means the distribution election applies for that source and any time a contribution is made to that source in the future. You will have only one opportunity to change your elections. If you decide to make a change, remember:

• Elections to change must be made at least 12 months prior to the date you originally elected to receive payment of the account balance.
• Your payment must be deferred for at least five years after the original payment date, which means your benefit would begin five years and six months after your original payment date.

Balances from contributions made prior to May 1, 2012 will automatically be paid as a lump sum six months following separation from service.

Special rules apply, so be sure you understand the provisions before you make a change. Please note: When you click on this link, you will enter a website not owned or maintained by Komatsu. You assume responsibility and risk for your use of the Fidelity NetBenefits^® website.

Your distributions will begin no sooner than six months after you leave the company.

To help you meet your savings goals, the DCP offers you a range of options that generally mirror those available in the Retirement Savings Plan. You can select a mix of investment options that best suit your goals, time horizon and risk tolerance. The investment options available range from conservative to moderately aggressive funds.

You will designate your investment elections for each source of money when you enroll in the DCP. However, you may change these elections at any time by accessing your account at www.401k.com. Please note: When you click on this link, you will enter a website not owned or maintained by Komatsu. You assume responsibility and risk for your use of the Fidelity NetBenefits^® website. If you do not make an investment election, your deferrals and company contributions will default to the target retirement date fund that most closely matches your retirement date based on your year of birth and an assumed retirement at age 65. Please note: Since this is a nonqualified plan, the company owns the investment until you separate from service and receive your distribution. You will be granted any applicable earnings on your account based upon your individual investment elections. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

Please note that changes to your investment elections will be effective as of the close of business that day if you complete your transaction before 4 p.m. Eastern time Monday — Friday, or they will take effect by the close of business the next trading day. Your investment elections will apply to contributions from that point forward.

You can change the way your account is invested at virtually any time — you can adjust your elections for future contributions or exchange current balances between investment options, or both. To change the way your account is invested, log in to your account at www.401k.com. Please note: When you click on this link, you will enter a website not owned or maintained by Komatsu. You assume responsibility and risk for your use of the Fidelity NetBenefits^® website.

No, loans are not available.

No. Distributions do not qualify for rollover to an IRA or to another employer's qualified or nonqualified plan.

Payments from nonqualified deferred compensation plans are taxed as ordinary income and subject to mandatory federal and state income tax withholding when they are distributed to you. Explore Things to Consider for more details.