Back to top

Avery Dennison Corporation Supplemental Executive Retirement Plan

Addendum or Modifications

Avery Dennison Corporation Supplemental Executive Retirement Plan | Document Parties: AVERY DENNISON CORPORATION You are currently viewing:
This Addendum or Modifications involves

AVERY DENNISON CORPORATION

. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here.
Title: Avery Dennison Corporation Supplemental Executive Retirement Plan
Date: 8/12/2009
Industry: Containers and Packaging     Sector: Basic Materials

50 of the Top 250 law firms use our Products every day

Exhibit 10.11.4.1

LETTER OF GRANT
as of
January 1, 2009

Mr. Daniel R. O’Bryant
Executive Vice President and Chief Financial Officer
Avery Dennison Corporation
150 North Orange Grove Boulevard
Pasadena, California 91103

Dear Mr. O’Bryant:

Avery Dennison Corporation (“Company”) is adopting an amended and restated Avery Dennison Corporation Supplemental Executive Retirement Plan (“Plan”) effective as of January 1, 2009. The amended and restated Plan contains the necessary provisions to bring the Plan into compliance with Internal Revenue Code Section 409A (“Section 409A”). By complying with the requirements of Section 409A, the benefits provided under such nonqualified deferred compensation plan may continue to be tax deferred. This letter is written to advise you of the changes that the Compensation and Executive Personnel Committee of the Board of Directors of the Company has made to the Plan in order to comply with Section 409A.

Calculation of SERP Benefit . As an inducement for you to remain in the service of the Company, and to provide you with additional incentive to further the growth, development and financial success of the Company, the Company will continue to provide you with a SERP Benefit that is determined in accordance with the provisions below and subject to the terms of the Plan.

Your “SERP Benefit” is equal to the annual payment of a straight life annuity commencing the first day of the month following the month in which you attain age 65 (or the month in which a Payment Event occurs, if later) with each annual payment equal to fifty-two and one-half percent (52.5%) of your Average Compensation. The amount determined in the preceding sentence will be reduced for early commencement:

(1)

 

In the same manner as provided in the Qualified Plan to the extent your Benefit Commencement Date is on or after the date you attain age 55. In addition, a 10 percent reduction to the gross benefit (before offsets) will apply to retirement commencing between the ages 62 to 65; and,

-1-


 

(2)

 

To the extent your Benefit Commencement Date is before the date you attain age 55 and your SERP Benefit is payable to you in a Lump Sum, then the Lump Sum SERP Benefit will be Actuarially Equivalent to the SERP Benefit payable to you on the first day of the month following the date you attain age 55, taking into account the applicable early commencement factors that would be applied under the Qualified Plan as of such date.

Finally, your SERP Benefit will be further reduced by the Specified Formula Reductions. For the avoidance of doubt, the rate at which your SERP Benefit accrues will not be adversely affected if the benefit under the Amended and Restated Benefit Restoration Plan of Avery Dennison Corporation (“BRP”) is paid prior to the payment of your SERP Benefit by reason of a Change in Control.

Time and Form of Payment . Your SERP Benefit will be paid on the Benefit Commencement Date determined under the BRP and in accordance with the form of payment specified or, if applicable, elected under the BRP.

Key Employee Delay . If you are a Key Employee, as determined under the Avery Dennison Corporation Key Employee Policy or by the Committee for all nonqualified plans in accordance with the requirements of Code Section 409A, and your SERP Benefit is payable due to your Separation from Service, as described under the BRP, your Benefit Commencement Date will be no earlier than the first day of the month that is coincident with or next following the date that is six months after your Separation from Service, unless an earlier payment complies with a permissible Section 409A exception ( e.g. , the payment of employment taxes). To the extent your status as a Key Employee results in a delayed payment, then, following the end of such six-month period, the Plan will provide you with a one-time payment equal to the amount you would have been entitled to receive if your Benefit Commencement Date had not been delayed due to your status as a Key Employee, together with Interest.

Vesting . You will become vested in your SERP Benefit upon the earliest of the following dates provided, in the event of (1), (2), or (3), you are an Employee on that date:

(1)

 

The date you attain age 55;

 

(2)

 

The date you suffer a Disability;

 

(3)

 

The date of your death;

 

(4)

 

The date you have an involuntary Separation from Service from the Company without Cause, including an involuntary Separation from Service on account of a Change in Control; and

 

(5)

 

The date of your Separation from Service for Good Reason.

-2-


 

Forfeiture . In the event you are terminated by the Company for Cause before you attain age 65, you will forfeit your entire SERP Benefit under the Plan.

Death Benefit . Upon your death, a Death Benefit will be paid only to the spouse to whom you were married on the date of your death; payment will be made in a Lump Sum (which is the form in which the “death benefit” under the BRP is paid) at the same time as the “death benefit” under the BRP, provided such spouse is then living.

The amount of the Lump Sum Death Benefit payable to your spouse will be Actuarially Equivalent to the amount that would have been payable to your spouse as a survivor benefit hereunder if before your date of death you attained age 55 (or your actual age, if you are older), commenced benefits in the form of a 50% Joint and Survivor Annuity, and then died. An additional death benefit, as described in the SERP, will be payable for a limited time upon your death following your Separation from Service if you are a Key Employee. This additional death benefit is intended to place your surviving spouse or, if applicable, your Beneficiary in a position similar to the position in which your surviving spouse or, if applicable, your Beneficiary would have been if your Benefit Commencement Date had not been delayed solely due to your status as a Key Employee.

No Death Benefit will be payable hereunder or under the Pla


SITE SEARCH

AGREEMENTS / CONTRACTS

Document Title:

Entire Document: (optional)

Governing Law:(optional)
 

CLAUSES

Search Contract Clauses >>

Browse Contract Clause Library>>

Close this window