PARTICIPANT'S ANNUAL DEFERRAL AMOUNT FOR ANY DEFERRAL PERIOD WITH
RESPECT TO BASE ANNUAL SALARY, BONUS, LTIP AMOUNTS, OPERATOR SHARE DIVIDENDS OR
OPERATOR SHARE BONUS, PLUS (II) AMOUNTS CREDITED OR DEBITED TO SUCH AMOUNT
PURSUANT TO THIS PLAN, LESS (III) ALL DISTRIBUTIONS MADE TO THE PARTICIPANT OR
HIS OR HER BENEFICIARY PURSUANT TO THIS PLAN THAT RELATE TO THE ANNUAL DEFERRAL
ACCOUNT. (EACH SEPARATE DEFERRAL SOURCE SHALL HAVE A SEPARATE ANNUAL DEFERRAL
ACCOUNT.)
THE ANNUAL DEFERRAL ACCOUNT SHALL BE A BOOKKEEPING ENTRY ONLY AND
SHALL BE UTILIZED SOLELY AS A DEVICE FOR THE MEASUREMENT AND DETERMINATION OF
THE AMOUNTS TO BE PAID TO A PARTICIPANT, OR HIS OR HER DESIGNATED BENEFICIARY,
PURSUANT TO THIS PLAN.
1.4
"ANNUAL DEFERRAL AMOUNT" SHALL MEAN THAT PORTION OF A
PARTICIPANT'S BASE ANNUAL SALARY, BONUS, LTIP AMOUNTS, OPERATOR SHARE DIVIDENDS
OR OPERATOR SHARE BONUS THAT A PARTICIPANT DEFERS IN ACCORDANCE WITH ARTICLE 3
FOR ANY ONE DEFERRAL PERIOD. (EACH SEPARATE DEFERRAL SOURCE SHALL CONSTITUTE AN
ANNUAL DEFERRAL AMOUNT.)
IN THE EVENT OF A PARTICIPANT'S RETIREMENT, DISABILITY
(IF DEFERRALS CEASE IN ACCORDANCE WITH SECTION 9.1), DEATH OR A TERMINATION OF
EMPLOYMENT PRIOR TO THE END OF THE DEFERRAL PERIOD, SUCH YEAR'S ANNUAL DEFERRAL
AMOUNT SHALL BE THE ACTUAL AMOUNT WITHHELD PRIOR TO SUCH EVENT.
1.5
"ANNUAL DISCRETIONARY CONTRIBUTION AMOUNT" SHALL MEAN, FOR ANY ONE
PLAN YEAR, THE AMOUNT DETERMINED IN ACCORDANCE WITH SECTION 3.5.
1.6
"BASE ANNUAL SALARY" SHALL MEAN THE ANNUAL CASH COMPENSATION
RELATING TO SERVICES PERFORMED DURING ANY CALENDAR YEAR, EXCLUDING OPERATOR
SHARE DIVIDENDS, BONUSES, COMMISSIONS, OVERTIME, FRINGE BENEFITS, STOCK OPTIONS,
RELOCATION EXPENSES, INCENTIVE PAYMENTS, NON-MONETARY AWARDS, DIRECTOR FEES AND
OTHER FEES, AND AUTOMOBILE AND OTHER ALLOWANCES PAID TO A PARTICIPANT FOR
EMPLOYMENT SERVICES RENDERED (WHETHER OR NOT SUCH ALLOWANCES ARE INCLUDED IN THE
EMPLOYEE'S GROSS INCOME). BASE ANNUAL SALARY SHALL BE CALCULATED BEFORE
REDUCTION FOR COMPENSATION VOLUNTARILY DEFERRED OR CONTRIBUTED BY THE
PARTICIPANT PURSUANT TO ALL QUALIFIED OR NON-QUALIFIED PLANS OF ANY EMPLOYER AND
SHALL BE CALCULATED TO INCLUDE AMOUNTS NOT OTHERWISE INCLUDED IN THE
PARTICIPANT'S GROSS INCOME UNDER CODE SECTIONS 125, 402(E)(3), 402(H), OR 403(B)
PURSUANT TO PLANS ESTABLISHED BY ANY EMPLOYER; PROVIDED, HOWEVER, THAT ALL SUCH
AMOUNTS WILL BE INCLUDED IN COMPENSATION ONLY TO THE EXTENT THAT HAD THERE BEEN
NO SUCH PLAN, THE AMOUNT WOULD HAVE BEEN PAYABLE IN CASH TO THE EMPLOYEE.
1.7
"BENEFICIARY" SHALL MEAN ONE OR MORE PERSONS, TRUSTS, ESTATES OR
OTHER ENTITIES, DESIGNATED IN ACCORDANCE WITH ARTICLE 12, THAT ARE ENTITLED TO
RECEIVE BENEFITS UNDER THIS PLAN UPON THE DEATH OF A PARTICIPANT.
2
Hormel Foods Corporation
Executive Deferred Income Plan II
Master Plan Document (2008 Restatement)
1.8
"BENEFICIARY DESIGNATION FORM" SHALL MEAN THE FORM ESTABLISHED
FROM TIME TO TIME BY THE COMMITTEE THAT A PARTICIPANT COMPLETES, SIGNS AND
RETURNS TO THE COMMITTEE TO DESIGNATE ONE OR MORE BENEFICIARIES.
1.9
"BENEFIT DISTRIBUTION DATE" SHALL MEAN THE DATE THAT TRIGGERS
DISTRIBUTION OF A PARTICIPANT'S ANNUAL DEFERRAL ACCOUNT AND DISCRETIONARY
CONTRIBUTION ACCOUNT. A PARTICIPANT'S BENEFIT DISTRIBUTION DATE SHALL BE
DETERMINED UPON THE OCCURRENCE OF ANY ONE OF THE FOLLOWING