TO
THE PRINCIPAL SPONSOR, IN ACCORDANCE WITH THE TERMS OF THE PLAN, BEFORE THE
FIRST DAY OF THE PRINCIPAL SPONSOR'S FISCAL YEAR FOR WHICH THE ELECTION IS MADE.
"FISCAL YEAR COMPENSATION" SHALL MEAN COMPENSATION RELATING TO A PERIOD OF
SERVICE COEXTENSIVE WITH ONE OR MORE CONSECUTIVE FISCAL YEARS OF THE EMPLOYER,
OF WHICH NO AMOUNT IS PAID OR PAYABLE DURING THE SERVICE PERIOD.
10
Hormel Foods Corporation
Executive Deferred Income Plan II
Master Plan Document (2008 Restatement)
(C)
PERFORMANCE-BASED COMPENSATION. NOTWITHSTANDING THE FOREGOING, AN
IRREVOCABLE DEFERRAL ELECTION PERTAINING TO BONUS AND LTIP AMOUNTS WHICH QUALIFY
AS "PERFORMANCE-BASED COMPENSATION" MAY BE MADE BY TIMELY DELIVERING AN ELECTION
FORM TO THE PRINCIPAL SPONSOR, IN ACCORDANCE WITH THE TERMS OF THE PLAN, NO
LATER THAN SIX MONTHS BEFORE THE END OF THE PERFORMANCE PERIOD.
"PERFORMANCE-BASED COMPENSATION" SHALL BE COMPENSATION BASED ON SERVICES
PERFORMED OVER A PERIOD OF AT LEAST 12 MONTHS, IN ACCORDANCE WITH CODE
SECTION 409A AND RELATED GUIDANCE.
(D)
NEWLY ELIGIBLE PARTICIPANTS. NOTWITHSTANDING THE FOREGOING, A
SELECTED EMPLOYEE WHO FIRST BECOMES ELIGIBLE TO PARTICIPATE IN THIS PLAN (AND
ALL LIKE-KIND PLANS AGGREGATED TO THIS PLAN FOR PURPOSES OF CODE SECTION 409A)
AFTER THE FIRST DAY OF A DEFERRAL PERIOD, THE COMMITTEE MAY PERMIT THE
PARTICIPANT TO MAKE A DEFERRAL ELECTION WITHIN 30 DAYS AFTER HE OR SHE FIRST
BECOMES ELIGIBLE TO PARTICIPATE IN THE PLAN, OR WITHIN SUCH OTHER EARLIER
DEADLINE AS MAY BE ESTABLISHED BY THE COMMITTEE, IN ITS SOLE DISCRETION, IN
ORDER TO PARTICIPATE FOR SUCH PERIOD. IN SUCH EVENT, SUCH PERSON'S PARTICIPATION
IN THIS PLAN SHALL NOT COMMENCE EARLIER THAN 30 DAYS AFTER HE OR SHE FIRST
BECOMES ELIGIBLE TO PARTICIPATE IN THE PLAN, AND SUCH PERSON SHALL NOT BE
PERMITTED TO DEFER UNDER THIS PLAN ANY PORTION OF HIS OR HER BASE SALARY, BONUS,
LTIP AMOUNTS, OPERATOR SHARE DIVIDENDS OR OPERATOR SHARE BONUS THAT ARE PAID
WITH RESPECT TO SERVICES PERFORMED PRIOR TO HIS OR HER PARTICIPATION
COMMENCEMENT DATE, EXCEPT TO THE EXTENT PERMISSIBLE UNDER CODE SECTION 409A AND
RELATED TREASURY GUIDANCE OR REGULATIONS.
3.4
WITHHOLDING AND CREDITING OF ANNUAL DEFERRAL AMOUNTS.
FOR EACH
PLAN YEAR, THE BASE ANNUAL SALARY PORTION OF THE ANNUAL DEFERRAL AMOUNT SHALL BE
WITHHELD FROM EACH REGULARLY SCHEDULED BASE ANNUAL SALARY PAYROLL IN EQUAL
AMOUNTS, AS ADJUSTED FROM TIME TO TIME FOR INCREASES AND DECREASES IN BASE
ANNUAL SALARY. THE BONUS, LTIP AMOUNTS, OPERATOR SHARE DIVIDENDS AND OPERATOR
SHARE BONUS SHALL BE WITHHELD AT THE TIME THE BONUS, LTIP AMOUNTS, OPERATOR
SHARE DIVIDENDS OR OPERATOR SHARE BONUS ARE OR OTHERWISE WOULD BE PAID TO THE
PARTICIPANT, WHETHER OR NOT THIS OCCURS DURING THE APPLICABLE DEFERRAL PERIOD
ITSELF. ANNUAL DEFERRAL AMOUNTS SHALL BE CREDITED TO A PARTICIPANT'S ANNUAL
DEFERRAL ACCOUNT AT THE TIME SUCH AMOUNTS WOULD OTHERWISE HAVE BEEN PAID TO THE
PARTICIPANT.
3.5
ANNUAL DISCRETIONARY CONTRIBUTION AMOUNT.
(A)
FOR EACH PLAN YEAR, AN EMPLOYER MAY BE REQUIRED TO CREDIT AMOUNTS
TO A PARTICIPANT'S DISCRETIONARY CONTRIBUTION ACCOUNT IN ACCORDANCE WITH
EMPLOYMENT OR OTHER AGREEMENTS ENTERED INTO BETWEEN THE PARTICIPANT AND THE
EMPLOYER. SUCH