Exhibit
10.59
FIRST AMENDED
AND RESTATED
RADIOSHACK
CORPORATION
OFFICER’S
SUPPLEMENTAL
EXECUTIVE
RETIREMENT PLAN
RadioShack
Corporation, a Delaware corporation ("RadioShack"), hereby amends
and restates, effective as of December 31, 2008, the RadioShack
Corporation Officer’s Supplemental Executive Retirement Plan
(the “Plan”) in order to satisfy the requirements of
section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”). Unless otherwise indicated, all
“section” or “Code” references are to the
Code and the Treasury Regulations related thereto, as may be
amended from time to time, promulgated under the authority of the
applicable Code section and, in each case, any successor provisions
thereto.
RadioShack
intends that this Plan, as amended and restated, applies solely to
compensation earned or vested on or after January 1, 2005,
including any earnings thereon, to the extent such compensation was
not paid or distributed prior to December 31,
2008. Further, it is the intent of the RadioShack that
this Plan, as amended and restated, shall have no effect whatsoever
on any benefits earned and vested on or before December 31, 2004,
including any earnings thereon, and the parties intend that such
benefits remain exempt from Code section 409A.
ARTICLE
ONE
PURPOSE
Section
1.1 The
purpose of this Plan is to enable RadioShack Corporation and its
subsidiaries to provide key executive personnel certain death and
retirement benefits.
ARTICLE
TWO
DEFINITIONS
Section
2.1
Beneficiary. The recipient(s) designated (in
accordance with Article Seven) by a Participant in the Plan to
whom benefits are payable following his death.
Section
2.2
Benefit Service Year. The service that is used
to determine a Participant’s Plan Benefit under this
Plan. Each Participant shall be granted one-twelfth of a
year of Benefit Services Year for each full or partial calendar
month of his employment with RadioShack commencing on the date of
his appointment as an officer of RadioShack and ending with the
date termination of employment with RadioShack or the cessation of
service as an officer of RadioShack, whichever shall first
occur. Determination of Benefit Service Years shall be
subject to the following:
(i) Separate
years of Participant’s service with RadioShack as an officer
shall be aggregated for purposes of determining Benefit Service
Years.
(ii) A
Participant’s authorized Leave of Absence will not interrupt
continuing of employment of a Participant as an officer for
purposes of the Plan.
Section
2.3
Benefit Service Years Credit. A Participant’s Benefit
Service Years Credit shall be equal to 2.5% multiplied by the
Participant’s Benefit Service Years. In no event
shall a Participant’s Benefit Service Years Credit exceed
50%.
Section
2.4
Change in Control . For purpose of the Plan, a
“Change in Control” shall mean any of the following
events:
(a) An
acquisition (other than directly from RadioShack (the
“Company” for purposes of this definition)) of any
voting securities of the Company (the “Voting
Securities”) by any “Person” (as the term person
is used for purposes of Section 13(d) or 14(d) of the Securities
Exchange Act of 1934, as amended (the “1934 Act”))
immediately after which such Person has “Beneficial
Ownership” (within the meaning of Rule 13d-3 promulgated
under the 1934 Act) of fifteen percent (15%) or more of the
combined voting power of the Company’s then outstanding
Voting Securities; provided, however, in determining whether a
Change in Control has occurred, Voting Securities which are
acquired in a Non-Control Acquisition (as hereinafter defined)
shall not constitute an acquisition which would cause a Change in
Control.
A
“Non-Control Acquisition” shall mean an acquisition by
(i) an employee benefit plan (or a trust forming a part thereof)
maintained by (A) the Company or (B) any corporation or other
Person of which a majority of its voting power or its voting equity
securities or equity interest is owned, directly or indirectly, by
the Company (for purposes of this definition, a
“Subsidiary”), (ii) the Company or its Subsidiaries, or
(iii) any Person in connection with a Non-Control Transaction (as
hereinafter defined);
(b) The
individuals who, as of January 1, 2006, are members of the Board
(the “Incumbent Board”), cease for any reason to
constitute at least two-thirds of the Board; provided, however,
that if the election, or nomination for election by the
Company’s stockholders, of any new director was approved by a
vote of at least two-thirds of the Incumbent Board, such new
director shall, for purposes of this Plan, be considered as a
member of the Incumbent Board; provided further, however, that no
individual shall be considered a member of the Incumbent Board if
such individual initially assumed office as a result of either an
actual or threatened “Election Contest” (as described
in Rule 14a-11 promulgated under the 1934 Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board (a “Proxy Contest”)
including by reason of any agreement intended to avoid or settle
any Election Contest or Proxy Contest; or
(c) The
consummation of:
(i) A
merger, consolidation, reorganization or other business combination
with or into the Company or in which securities of the Company are
issued, unless
(A) the
stockholders of the Company, immediately before such merger,
consolidation, reorganization or other business combination, own
directly or indirectly immediately following such merger,
consolidation, reorganization or other business combination, at
least sixty percent (60%) of the combined voting power of the
outstanding voting securities of the corporation resulting from
such merger or consolidation, reorganization or other business
combination (the “Surviving Corporation”) in
substantially the same proportion as their ownership of the Voting
Securities immediately before such merger, consolidation,
reorganization or other business combination,
(B) the
individuals who were members of the Incumbent Board immediately
prior to the execution of the agreement providing for such merger,
consolidation, reorganization or other business combination
constitute at least two-thirds of the members of the board of
directors of the Surviving Corporation, or a corporation
beneficially directly or indirectly owning a majority of the
combined voting power of the outstanding voting securities of the
Surviving Corporation, or
(C) no Person
other than (i) the Company, (ii) any Subsidiary, (iii) any employee
benefit plan (or any trust forming a part thereof) that,
immediately prior to such merger, consolidation, reorganization or
other business combination was maintained by the Company, the
Surviving Corporation, or any Subsidiary, or (iv) any Person who,
immediately prior to such merger, consolidation, reorganization or
other business combination had Beneficial Ownership of fifteen
percent (15%) or more of the then outstanding Voting Securities,
has Beneficial Ownership of fifteen percent (15%) or more of the
combined voting power of the Surviving Corporation’s then
outstanding voting securities, and
A transaction
described in clauses (A) through (C) shall herein be referred to as
a “Non-Control Transaction.”
(ii) A
complete liquidation or dissolution of the Company; or
(iii) The
sale or other disposition of all or substantially all of the assets
of the Company to any Person (other than (i) any such sale or
disposition that results in at least fifty percent (50%) of the
Company’s assets being owned by one or more subsidiaries or
(ii) a distribution to the Company’s stockholders of the
stock of a subsidiary or any other assets).
Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur
solely because any Person (the “Subject Person”)
acquired Beneficial Ownership of more than the permitted amount of
the then outstanding Voting Securities (X) as a result of the
acquisition of Voting Securities by the Company which, by reducing
the number of Voting Securities outstanding, increases the
proportional number of shares Beneficially Owned by the Subject
Person, provided that if a Change in Control would occur (but for
the operation of this subsection (X)) as a result of the
acquisition of Voting Securities by the Company, and after such
share acquisition by the Company, the Subject Person becomes the
Beneficial Owner of any additional Voting Securities which
increases the percentage of the then outstanding Voting Securities
Beneficially Owned by the Subject Person, then a Change in Control
shall occur, or (Y) and such Subject Person (1) within fourteen
(14) Business Days (or such greater period of time as
may be determined by action of the Board) after such Subject Person
would otherwise have caused a Change in Control (but for the
operation of this clause (Y)), such Subject Person
notifies the Board that such Subject Person did so
inadvertently, and (2) within seven (7) Business Days after such
notification (or such greater period of time as may be determined
by action of the Board), such Subject Person divests itself of a
sufficient number of Voting Securities so that such Subject Person
is no longer the Beneficial Owner of more than the permitted amount
of the outstanding Voting Securities.
Notwithstanding
the foregoing, for purposes of Section 5.3 hereof, the second (but
not the first) sentence in Section 8.5(a) hereof, and for purposes
of Sections 8.5(b) and 8.6 hereof, a Change in Control shall occur
with respect to a Participant only upon the occurrence of an event
that both (a) constitutes a Change in Control under the above
definition and (b) constitutes a change in control event for
purposes of Code section 409A.
Section
2.5
Committee. The Management Development and
Compensation Committee (or any successor committee under any
different name) of the Board of Directors of RadioShack.
Section
2.6
Disability. A physical or mental condition
which, in the sole opinion of the Committee, totally and
permanently, prevents a Participant from substantially performing
duties for which such Participant is suited to perform either by
education or training, or if such Participant is on a Leave of
Absence when such condition develops, substantially performing
duties for which such Participant is suited to perform either by
education or training. A determination that Disability
exists shall be based upon competent medical evidence satisfactory
to the Committee. The date that any person’s
Disability occurs shall be deemed to be the date such condition is
determined to exist by the Committee.
Section
2.7
Employee . A regular full-time executive employee
of RadioShack serving as either a RadioShack Corporate, RadioShack
Division or RadioShack subsidiary officer.
Section
2.8 Highest Average Plan
Compensation. The average
annual Plan Compensation earned by the Participant for the five
consecutive highest-paid Plan years while a Participant. This
average shall be computed by dividing the total of the
Participant’s Plan Compensation for such five Plan Years by
the number of years in such five Plan Years for which the
Participant had Plan Compensation.
Section
2.9
Leave of Absence. Any period during
which:
(a) an
Employee is absent with the prior consent of RadioShack, which
consent shall be granted under uniform rules applied to all
Employees on a nondiscriminatory basis, but only if such person (i)
is an Employee immediately prior to the commencement of such period
of authorized absence and resumes employment with
RadioShack not
later than the first working day following the expiration of such
period of authorized absence or (ii) enters into a contract with
RadioShack prior to the absence which provides a right for the
Employee to return to work following the Leave of Absence, upon
such terms and conditions as RadioShack may provide in its sole
discretion. For purposes of clarification, nothing in
this Section 2.9(a) shall obligate or require RadioShack to enter
into any contract with any Employee or other person; or
(b) an
Employee who is on “qualified military service” as
defined under the Uniformed Services Employment and Reemployment
Rights Act of 1994, but only if such person is an Employee
immediately prior to his qualified military service and resumes
employment with RadioShack within the period during which his
reemployment rights are guaranteed by law.
Section
2.10 Monthly Plan Benefit Amount.
A
monthly amount equal to the Participant’s Plan Benefit, as
may be adjusted pursuant to Section 5.1(b) or (c) or Sections 5.2,
8.4, or 8.5 divided by 120.
Section
2.11
Participant. An Employee who has been selected
by the Committee and has accepted a Plan Agreement as provided in
Article Three.
Section
2.12
Plan Agreement. The agreement between RadioShack
and a Participant, entered into in accordance with Article Three,
as may be amended from time to time hereunder.
Section
2.13
Plan Year . The twelve month period beginning on
January 1 and ending December 31, commencing with calendar year
January 1, 1998 through December 31, 1998.
Section
2.14
Plan Benefit. An amount equal to the
Participant’s Benefit Service Years Credit multiplied by the
Participant’s Highest Average Plan Compensation multiplied by
10.
Section
2.15
Plan Compensation . The Participant’s
annual base salary and any annual bonus earned by the Participant
during a Plan Year. Plan Compensation shall include any
portion of the Participant’s base salary and bonus that is
not includible in taxable income because of a deferral election
under any plan maintained by RadioShack.
Section
2.16
RadioShack. RadioShack Corporation, a Delaware
corporation, and those subsidiary corporations in which RadioShack
owns at least fifty one percent (51%) of the total
combined voting power of all classes of stock entitled to
vote.
Section
2.17
RadioShack Subsidiary. Any corporation in which
RadioShack owns at least fifty one percent (51%) of the total
combined voting power of all classes of stock entitled to
vote.
Section
2.18
Retirement. The following classifications of
Retirement as referred to in this Plan are as follows:
(a)
Early Retirement. A Participant’s
voluntary election to terminate employment, as opposed to an
involuntary termination by RadioShack, on or after attaining age
fifty five (55) but prior to attaining age sixty-five
(65).
(b)
Normal Retirement. A Participant's termination
from employment with RadioShack upon attaining age sixty five
(65).
(c)
Late Retirement. A Participant's termination
from employment with RadioShack after attaining age sixty five
(65).”
For this
purpose, a Participant’s termination from employment will
occur on the date of the Participant’s Separation from
Service, and notwithstanding anything contained herein to the
contrary, the date on which such Separation from Service takes
place shall be the date of Retirement.
Section
2.19
Separation from Service. A Participant’s
“separation from service” from RadioShack shall fall
within the meaning set forth in Code section 409A.
ARTICLE
THREE
SELECTION OF
PARTICIPANTS AND
AGREEMENT TO
PARTICIPATE
Section
3.1
Existing Participants. The Plan is in addition
to the RadioShack Corporation Officer’s Deferred Compensation
Plan, the Salary Continuation Plan for Executive Employees of
RadioShack Corporation, the Special Compensation Plan No.1 for
RadioShack Corporation Executive Officers, and the Special
Compensation Plan No. 2 for RadioShack Corporation Executive
Officers (collectively, the “Salary Continuation
Plans”). The Salary Continuation Plans have
certain participants who, as of December 31, 2005, have been
selected by the Committee, in its sole, absolute and exclusive
discretion, to be Plan Participants and to have their benefits
transferred from the respective Salary Continuation Plans to the
Plan by virtue of new Plan Agreements. Upon execution of new Plan
Agreements, these Participants will no longer be participants in
their respective Salary Continuation Plans and will be Plan
Participants.
Section
3.2
New Participants. On and after January 1, 2006,
the Committee, in its sole, absolute and exclusive discretion,
shall select, from among the key executive employees of RadioShack
who are serving as either a RadioShack Corporate, RadioShack
Division or a RadioShack Subsidiary officer, candidates for
participation in the Plan.
ARTICLE
FOUR
NO FUNDING OF
PLAN BENEFITS
Section
4.1 All
benefits under the Plan or a Plan Agreement represent an unsecured
promise to pay by RadioShack Corporation. The Plan shall be
unfunded and the benefits hereunder shall be paid only from the
general assets of RadioShack Corporation resulting in the
Participants having no greater rights than RadioShack
Corporation’s general creditors; provided, however,
nothing herein shall prevent or prohibit RadioShack Corporation
from establishing a trust or other arrangement for the purpose of
providing for the payment of the benefits payable under the Plan or
Plan Agreement.
ARTICLE
FIVE
BENEFITS
PAYABLE TO PARTICIPANTS AND
TO
BENEFICIARIES OF PARTICIPANTS
Section
5.1 Subject
to the terms and conditions of the Plan, upon the Retirement of a
Participant, RadioShack agrees to pay to Participant a Retirement
benefit as follows:
(a)
Normal Retirement. If a Participant retires at
the date of Normal Retirement, then RadioShack agrees to pay to
Participant or to the designated Beneficiary of Participant in the
event of the death of Participant prior to the termination of
payment of Normal Retirement benefits hereunder, all from its
general assets, an amount equal to such Participant’s Plan
Benefit, such sum to be paid as set forth in Section 5.3
hereof.
(b)
Early Retirement. If a Participant retires at a
time that constitutes an Early Retirement, then RadioShack agrees
to pay to Participant or to the designated Beneficiary of
Participant in the event of the death of Participant prior to the
termination of payment of Early Retirement benefits hereunder, all
from its general assets, an amount equal to such
Participant’s Plan Benefit, reduced by five percent (5%) per
year for each year that Early Retirement precedes the date of
Normal Retirement. Such year shall be a fiscal year
beginning on the date a Participant
attains age
fifty-five (55). Any reduction for a part of a year
shall be prorated on a daily basis assuming a 365-day
year. Such amount shall be paid as set forth in Section
5.3 hereof.
(c)
Late Retirement. If a Participant retires at a
date that constitutes Late Retirement, then RadioShack agrees to
pay to Participant or to the designated Beneficiary of Participant
in the event of the death of Participant prior to the termination
of payment of Late Retirement benefits hereunder, all from its
general assets, an amount equal to such Participant’s Plan
Benefit, reduced by a percentage determined as follows:
|
Age on Date
of
|
|
Percent of
Reduction
|
|
Late
Retirement
|
|
of Plan Benefit
Amount
|
|
|
|
|
|
66
|
|
0%
|
|
67
|
|
0%
|
|
68
|
|
0%
|
|
69
|
|
0%
|
|
70
|
|
0%
|
|
71
|
|
20%
|
|
72
|
|
40%
|
|
73
|
|
60%
|
|
74
|
|
80%
|
|
75
|
|
100%
|
The percent of
reduction of a Participant’s Plan Benefit shall be measured
on a fiscal