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
provided that the lump sum amount payable at age 65 will be $500,000.
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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 65 AND EQUAL TO $46,000.
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
96
%
63
92
%
62
88
%
61
84
%
60
80
%
59
76
%
58
72
%
57
68
%
56
64
%
55
60
%
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 55,
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 OF TOTAL AND PERMANENT DISABILITY), WILL BE
PAYABLE, IN A LUMP SUM
4
CALCULATED UNDER SECTION 2.19 ON THE BASIS OF THE EXECUTIVE'S THEN ATTAINED AGE,
AS OF THE FIRST DAY OF THE MONTH COINCIDENT WITH OR NEXT FOLLOWING THE DATE THE
EXECUTIVE IS DETERMINED TO HAVE SUSTAINED A TOTAL AND PERMANENT DISABILITY.
(C)
DEATH PAYMENT.
IN THE EVENT THAT BENEFITS
BECOME