MEANING OF THIS
SECTION OR MAY REQUIRE THE REPORT OF AN INDEPENDENT PHYSICIAN SELECTED BY THE
BOARD.
SECTION 2.19
VALUE EQUIVALENT:
THE LIFE ANNUITY
AMOUNT, AS ADJUSTED BY SECTION 3.1, MULTIPLIED BY THE FOLLOWING FACTOR TO
CALCULATE A FIFTY PERCENT (50%) JOINT AND SURVIVOR ANNUITY OR A LUMP SUM:
Years Spouse Younger Than
Executive
50% Joint & Survivor
Factors
0-9
0.9
10-19
0.8
20-29
0.6
30+
0.4
Lump Sum Factor
The Life Annuity Amount will be converted to a lump sum using the applicable
mortality table and the applicable interest rate both as prescribed by section
417(e)(3) of the Code or any applicable provision of successor legislation.
3
ARTICLE 3
- BENEFITS
SECTION 3.1
BENEFIT AMOUNT:
THE BENEFIT IS
AN ANNUAL AMOUNT PAYABLE IN THE FORM OF A LIFE ANNUITY STARTING AT AGE 62 AND
EQUAL TO $190,000.
AT THE TIME OF THE EXECUTIVE'S RETIREMENT DATE, TERMINATION,
DEATH, TOTAL AND PERMANENT DISABILITY, OR A CHANGE-IN-CONTROL, THE ABOVE DOLLAR
AMOUNT SHALL BE MULTIPLIED BY THE FOLLOWING PAYMENT REDUCTION FACTOR.
Age At Retirement Date, Death,
Disability or Change-in-control
Payment Reduction
Factor
65 and later
100
%
64
100
%
63
100
%
62
100
%
61
100
%
60
100
%
59
96
%
58
92
%
57
87
%
56
83
%
55
79
%
54
50
%
SECTION 3.2
FORFEITURE OF BENEFIT:
IF IT
IS THE CONCLUSION OF THE BOARD THAT THE EXECUTIVE HAS ENGAGED IN ANY ACTS OR
OMISSIONS CONSTITUTING DISHONESTY, INTENTIONAL BREACH OF FIDUCIARY OBLIGATION OR
INTENTIONAL WRONGDOING, IN EACH CASE THAT RESULTS IN SUBSTANTIAL HARM TO THE
BUSINESS OR PROPERTY OF THE COMPANY, HE SHALL FORFEIT AND BE INELIGIBLE TO
RECEIVE ANY BENEFITS UNDER THIS PLAN, AND ANY BENEFITS PAID TO SUCH EXECUTIVE
(OR SPOUSE) CAN BE RECOVERED BY THE COMPANY.
THE RECOVERY OF ANY BENEFITS PAID
TO SUCH EXECUTIVE SHALL NOT PRECLUDE THE COMPANY FROM TAKING ANY OTHER ACTIONS
AGAINST THE EXECUTIVE.
SECTION 3.3
BENEFIT FORMS AND
COMMENCEMENT:
UPON THE EARLIEST OF THE FOLLOWING OF (A), (B), (C), OR (D) TO
OCCUR, THE EXECUTIVE SHALL RECEIVE A LIFE ANNUITY IF HE IS SINGLE ON SUCH DATE,
OR IF HE IS MARRIED ON SUCH DATE HE SHALL RECEIVE A FIFTY PERCENT (50%) JOINT
AND SURVIVOR ANNUITY, PAID MONTHLY.
THE EXECUTIVE MAY ELECT TO RECEIVE BENEFITS
IN THE FORM OF A LUMP SUM OR LIFE ANNUITY AS LONG AS THE EXECUTIVE'S ELECTION IS
MADE AT LEAST 120 DAYS PRIOR TO THE RECEIPT OF ANY BENEFITS PAID UNDER THE PLAN.
(A)
RETIREMENT PAYMENT.
IN THE EVENT THAT
BENEFITS BECOME PAYABLE DUE TO THE EXECUTIVE'S RETIREMENT ON OR AFTER AGE 52,
THE BENEFIT WILL BE PAYABLE AS OF THE EXECUTIVE'S RETIREMENT DATE.
(B)
DISABILITY PAYMENT.
IN THE EVENT THAT
BENEFITS BECOME PAYABLE DUE TO A TOTAL AND PERMANENT DISABILITY, THE BENEFIT
(WHICH IS FIXED AS OF THE DATE
4
OF TOTAL AND PERMANENT DISABILITY), WILL BE PAYABLE AS OF THE FIRST DAY OF THE
MONTH COINCIDENT WITH OR NEXT FOLLOWING THE DATE THE EXECUTIVE IS DETERMINED TO
HAVE