BENEFIT IN THE FORM OF A
SINGLE LUMP SUM PAYMENT.
(II)
THE LUMP SUM PAYMENT DESCRIBED IN PARAGRAPH (B)(I) OF THIS
SUBSECTION SHALL BE CALCULATED BY CONVERTING THE EXECUTIVE'S SERP BENEFIT
(CALCULATED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.2) AT THE TIME OF THE
COMMENCEMENT OF SUCH BENEFIT INTO A LUMP SUM AMOUNT OF EQUIVALENT ACTUARIAL
VALUE WHEN COMPUTED USING THE ACTUARIAL FACTORS SPECIFIED IN EXHIBIT A FOR THIS
PURPOSE, AND THEN APPLYING THE TEN PERCENT (10%) REDUCTION, IF APPLICABLE,
PROVIDED FOR IN SUBSECTION (C) OF THIS SECTION.
(III)
NOTWITHSTANDING ANY PROVISION OF THE PLAN TO THE CONTRARY, IN THE
EVENT THE EQUIVALENT ACTUARIAL VALUE OF THE EXECUTIVE'S SERP BENEFIT, WHEN
COMPUTED USING THE ACTUARIAL FACTORS SPECIFIED IN EXHIBIT A FOR THIS PURPOSE,
DOES NOT EXCEED $25,000 , SUCH BENEFIT SHALL BE PAID IN THE FORM OF A SINGLE
LUMP SUM PAYMENT.
(C)
FORM/TIMING OF ELECTION.
ANY ELECTION OF AN OPTIONAL FORM OF
BENEFIT MUST BE IN WRITING (ON A FORM PROVIDED BY THE ADMINISTRATOR) AND FILED
WITH THE ADMINISTRATOR PRIOR TO THE EXECUTIVE'S TERMINATION OF EMPLOYMENT WITH
THE CONTROLLED GROUP BECAUSE OF INVOLUNTARY TERMINATION, DEATH OR DISABILITY OR
AT LEAST ONE (1) YEAR PRIOR TO THE EXECUTIVE'S VOLUNTARY RETIREMENT.
ANY SUCH
ELECTION MAY BE CHANGED AT ANY TIME AND FROM TIME TO TIME WITHOUT THE CONSENT OF
ANY EXISTING DEATH BENEFICIARY OR ANY OTHER PERSON (EXCEPT AS
7
DESCRIBED IN SECTION 2.2), BY FILING A LATER SIGNED WRITTEN ELECTION WITH THE
ADMINISTRATOR; PROVIDED THAT ANY ELECTION MADE LESS THAN ONE (1) YEAR PRIOR TO
THE EXECUTIVE'S VOLUNTARY RETIREMENT SHALL NOT BE VALID, AND IN SUCH CASE,
PAYMENT SHALL BE MADE IN ACCORDANCE WITH THE LATEST VALID ELECTION OF THE
EXECUTIVE.
NOTWITHSTANDING THE FOREGOING, AN EXECUTIVE SHALL BE PERMITTED TO
MAKE AN ELECTION TO RECEIVE HIS SERP BENEFIT IN THE FORM OF A LUMP SUM PAYMENT
WITHIN THE ONE (1) YEAR PERIOD PRIOR TO HIS VOLUNTARY TERMINATION IF (AND ONLY
IF) THE AMOUNT OF THE SERP BENEFIT PAYABLE TO THE EXECUTIVE IS REDUCED BY TEN
PERCENT (10%).
(2)
NON-GRANDFATHERED SERP BENEFITS.
THE PROVISIONS OF THIS
SECTION 3.4(2) SHALL APPLY SOLELY WITH RESPECT TO THE PORTION OF AN EXECUTIVE'S
SERP BENEFIT THAT IS A NON-GRANDFATHERED SERP BENEFIT.
(A)
NORMAL PAYMENT FORM.
UNLESS AN EXECUTIVE MAKES AN ELECTION
PURSUANT TO SECTION 3.4(2)(B) OR (E), THE EXECUTIVE'S NON-GRANDFATHERED SERP
BENEFIT WILL BE PAID TO THE EXECUTIVE IN THE FORM OF ANNUAL INSTALLMENT PAYMENTS
PAYABLE OVER A PERIOD OF TEN (10) YEARS, THE AMOUNT OF WHICH IS ACTUARIALLY
EQUIVALENT TO THE SERP BENEFIT CALCULATED UNDER SECTION 3.2.
(B)
OPTIONAL FORMS OF BENEFIT.
IN LIEU OF THE NORMAL FORM OF PAYMENT,
AN EXECUTIVE MAY MAKE OR CHANGE AN ELECTION TO RECEIVE HIS NON-GRANDFATHERED
SERP BENEFIT IN ONE OF THE FOLLOWING ACTUARIALLY EQUIVALENT OPTIONAL FORMS OF
BENEFIT:
(I)
A SINGLE LIFE ANNUITY PAYABLE MONTHLY TO THE EXECUTIVE DURING THE
EXECUTIVE'S LIFE AND ENDING ON THE DATE OF THE EXECUTIVE'S DEATH.
(II)
A REDUCED JOINT AND SURVIVOR ANNUITY PAYABLE MONTHLY TO THE
EXECUTIVE DURING THE