SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN
(As
Amended and Restated Effective January 1, 2009)
Amended
and Restated January 1, 2009
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PAGE
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ARTICLE
I—PURPOSE; EFFECTIVE DATE
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1
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1
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1
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1
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1
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1
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1
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1
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2
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2
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2
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2.8
Deferred Compensation Plan
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3
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3
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2.10
Early Retirement Date
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3
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2.11
Final Average Compensation
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3
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2.12
Form of Payment Designation
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3
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3
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2.14
Normal Retirement Date
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3
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4
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2.16
Participation Agreement
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4
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4
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4
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4
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2.21
Target Benefit Percentage
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4
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2.22
Termination of Employment
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4
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4
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ARTICLE
III—PARTICIPATION
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5
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3.1
Eligibility and Participation
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5
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3.2
Change in Employment Status
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5
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3.3
Recovery from Disability
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5
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ARTICLE
IV—SURVIVOR BENEFITS
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6
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4.1
Pretermination Survivor Benefit
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6
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4.2
Post-termination Survivor Benefit
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6
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4.3
Suicide; Misrepresentation
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6
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(i)
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PAGE
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ARTICLE
V—SUPPLEMENTAL BENEFITS
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7
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5.1
Right to Supplemental Retirement Benefit
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7
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5.2
Normal Retirement Benefit
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7
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5.3
Early Retirement Benefit
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7
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5.4
Disability Retirement Benefit
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8
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5.5
Forfeiture of Benefits
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8
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8
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9
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5.8
Commencement of Benefit Payments
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9
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5.9
Withholding; Payroll Taxes
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10
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10
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ARTICLE
VI—BENEFICIARY DESIGNATION
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10
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6.1
Beneficiary Designation
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10
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10
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6.3
Change in Marital Status
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10
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6.4
No Beneficiary Designation
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11
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11
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ARTICLE
VII—ADMINISTRATION
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11
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11
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11
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7.3
Binding Effect of Decisions
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12
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7.4
Indemnity of Committee
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12
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7.5
Election of Committee After Change in Control
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12
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ARTICLE
VIII—CLAIMS PROCEDURE
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12
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12
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12
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12
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13
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ARTICLE
IX—TERMINATION, SUSPENSION OR AMENDMENT
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13
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9.1
Termination, Suspension or Amendment of Plan
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13
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13
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(ii)
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PAGE
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13
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14
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10.3
Unsecured General Creditor
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14
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14
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14
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10.6
Not a Contract of Employment
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14
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10.7
Protective Provisions
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14
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15
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15
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15
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(iii)
SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN
(As Amended and Restated Effective January 1,
2009)
ARTICLE
I—PURPOSE; EFFECTIVE DATE
The
purpose of this Supplemental Executive Retirement Plan is to
provide supplemental retirement benefits for certain key employees
of the Company. It is intended that the Plan will aid in retaining
and attracting individuals of exceptional ability by providing them
with these benefits.
This
Plan was originally effective April 2, 1990. This Amendment
and Restatement is effective January 1, 2009.
For
the purposes of this Plan, the following terms shall have the
meanings indicated unless the context clearly indicates
otherwise:
“Actuarial
Equivalent” means equivalence in value between two
(2) or more forms and/or times of payment based on a
determination by an actuary chosen by the Company. Effective
September 30, 2007, the interest rate assumption shall be six
percent (6%) per annum and the mortality assumption shall be the RP
2000 projected ten (10) years using Projection Scale AA. These
assumptions may be changed from time to time by the Plan’s
actuary with the approval of the Board.
“Beneficiary”
means the person, persons or entity as designated by the
Participant, entitled under Article VI to receive any Plan
benefits payable after the Participant’s death.
“Board”
means the Board of Directors of the Company.
“Change
in Control” of the Company means, and shall be deemed to have
occurred upon, the first to occur of any of the following
events:
(a) Any
“Person” (other than those Persons in control of the
Company as of the Effective Date, or other than a trustee or other
fiduciary holding securities under an employee benefit plan of
the
PAGE 1 — SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN
Company,
or a corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their
ownership of stock of the Company) becomes the “Beneficial
Owner” of securities of the Company representing fifty
percent (50%) or more of (i) the then outstanding shares of
the securities of the Company, or (ii) the combined voting
power of the then outstanding securities of the Company entitled to
vote generally in the election of directors (“Company Voting
Stock”); or
(b) The
majority of members of the Company’s Board of Directors is
replaced during any 12-month period by directors whose appointment
or election is not endorsed by a majority of the members of the
Company’s Board of Directors before the date of the
appointment; or
(c) The
stockholders of the Company approve: (i) a plan of complete
liquidation of the Company; or (ii) an agreement for the sale
or disposition of all or substantially all of the Company’s
assets; or (iii) a merger, consolidation, or reorganization of
the Company with or involving any other corporation, if immediately
after such transaction persons who hold a majority of the
outstanding voting securities entitled to vote generally in the
election of directors of the surviving entity (or the entity owning
100% of such surviving entity) are not persons who, immediately
prior to such transaction, held the Company Voting
Stock.
However,
in no event shall a “Change in Control” be deemed to
have occurred, with respect to the Participant, if the Participant
is part of a purchasing group which consummates the Change in
Control transaction. The Participant shall be deemed “part of
a purchasing group” for purposes of the preceding sentence if
the Participant is an equity participant in the purchasing company
or group (except for: (i) passive ownership of less than two
percent (2%) of the stock of the purchasing company; or
(ii) ownership of equity participation in the purchasing
company or group which is otherwise not significant, as determined
prior to the Change in Control by a majority of the nonemployee
continuing Directors).
For
purposes of this Section, the terms “Person” and
“Beneficial Owner” shall have the meanings given those
terms in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, and Rule 13d-3 under that Act.
“Committee”
means committee appointed by the Board to administer the Plan
pursuant to Article VII. The initial committee so designated by the
Board shall be the Administrative Committee.
“Company”
means Jack in the Box Inc., a Delaware Corporation, and directly or
indirectly affiliated subsidiary corporations, any other affiliate
designated by the Board, or any successor to the business
thereof.
“Compensation”
means the base salary payable to and bonus earned by a Participant
by Company and considered to be “wages” for purposes of
federal income tax withholding. Compensation shall be calculated
before reduction for any amounts deferred by the Participant
pursuant to the Company’s tax qualified plans which may be
maintained under Section 401(k) or Section 125 of the Internal
Revenue Code
PAGE 2 — SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN
(the
“Code”), or under the Deferred Compensation Plan as
defined in Section 2.8. Inclusion of any other forms of
Compensation are subject to Committee approval.
2.8
Deferred Compensation Plan
“Deferred
Compensation Plan” means the Jack in the Box Inc. Capital
Accumulation Plan for Executives, a nonqualified deferred
compensation plan established by the Company for a select group of
highly compensated and management employees of Company.
“Disability”
means a medically determinable physical or mental impairment of the
Participant that can be expected to result in death or can be
expected to last for a continuous period of at least twelve
(12) months and that makes the Participant unable to engage in
any substantial gainful activity.
2.10
Early Retirement Date
“Early
Retirement Date” means the date on which a Participant
terminates employment with Company, if such termination date occurs
on or after such Participant’s attainment of age fifty-five
(55) and completion of ten (10) Years of Service, but
prior to the Participant’s Normal Retirement Date.
2.11
Final Average Compensation
“Final
Average Compensation” means the Participant’s average
monthly Compensation during any five (5) calendar years in
which the Participant’s Compensation is the highest out of
the last ten (10) years of employment with Company. If the
Participant has fewer than five (5) years of employment with
Company, Final Average Compensation shall be determined based on
the average of actual term of employment.
2.12
Form of Payment Designation
“Form
of Payment Designation” means the form prescribed by the
Committee and completed by the Participant, indicating the chosen
form of payment for benefits payable under the Plan, as elected by
the Participant.
“401(k)
Plan” means the Jack in the Box Inc. Easy$aver Plus Plan or
any successor defined contribution plan maintained by Company that
qualifies under Section 401(a) of the Code by satisfying the
requirements of Section 401(k) of the Code.
2.14
Normal Retirement Date
“Normal
Retirement Date” means the date on which a Participant
terminates employment with Company on or after attaining age
sixty-two (62).
PAGE 3 — SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN
“Participant”
means any employee who is eligible, pursuant to Section 3.1,
to participate in this Plan, and who has not yet received full
benefits hereunder.
2.16
Participation Agreement
“Participation
Agreement” means the agreement filed by a Participant and
approved by the Committee pursuant to Article III.
“Plan”
means this Jack in the Box Inc. Supplemental Executive Retirement
Plan, as may be amended from time to time.
“Retirement”
means a Participant’s Termination of Employment with Company
at the Participant’s Early Retirement Date or Normal
Retirement Date, as applicable.
“Retirement
Plan” means the Jack in the Box Inc. Retirement Plan or any
successor plan. For purposes of Section 5.2, “Retirement
Plan” means any qualified defined benefit plan maintained by
Company that qualifies under Section 401(a) of the Internal Revenue
Code.
2.20
Supplemental Retirement Benefit
“Supplemental
Retirement Benefit” means the benefit determined under
Article V of this Plan.
2.21
Target Benefit Percentage
“Target
Benefit Percentage” means the percentage of a
Participant’s Final Average Compensation that will be used in
determining the Participant’s Supplemental Retirement Benefit
under Article V of this Plan. The Target Benefit Percentage is
determined by multiplying sixty percent (60%) times a fraction, the
numerator of which is the Participant’s Years of Service (not
to exceed twenty (20)) and the denominator of which is twenty
(20).
2.22
Termination of Employment
“Termination
of Employment” means a “separation from service”
as such term is defined in Section 409A of the Internal
Revenue Code and regulations promulgated thereunder.
“Years
of Service” means the number of years of service determined
in accordance with the provisions of the Retirement Plan, whether
or not the Participant is a participant in such plan.
PAGE 4 — SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN
ARTICLE
III—PARTICIPATION
3.1
Eligibility and Participation
(a)
Eligibility. Eligibility to participate in the Plan shall be
limited to those select key employees of Company who are designated
by management, from time to time, and approved by the
Committee.
(b)
Participation. An employee’s participation in the Plan
shall be effective upon notification to the employee by the
Committee of eligibility to participate, completion of a
Participation Agreement and a Form of Payment Designation, and
acceptance of each by the Committee. Subject to Section 3.2,
participation in the Plan shall continue until such time as the
Participant terminates employment with Company and as long
thereafter as the Participant is eligible to receive benefits under
this Plan.
(c)
Participation Freeze Date. Notwithstanding any other
provision of the Plan to the contrary, participation in the Plan is
frozen effective January 1, 2007, and no employees who are not
Participants on January 1, 2007 will become participants after
January 1, 2007.
3.2
Change in Employment Status
If
the Committee determines that a Participant’s employment
performance is no longer at a level that deserves reward through
participation in this Plan, but does not terminate the
Participant’s employment with Company, participation herein
and eligibility to receive benefits hereunder shall be limited to
the Participant’s accrued interest in such benefits as of the
date designated by the Board (“Participation Termination
Date”). Such benefits shall be based solely on the
Participant’s Years of Service and Compensation as of the
Participation Termination Date; provided, however, that the
Participant’s Years of Service after the Participant’s
Participation Termination Date will be recognized solely for the
limited purpose of determining whether the Participant has a
nonforfeitable right to a benefit under Section 5.1 of this
Plan. Notwithstanding the above, Participants who have a change in
employment status, as described in this Section 3.2, and who
terminate employment with Company within twenty-four
(24) months following a Change in Control, shall be entitled
to benefits as described in Section 5.7 of this
Plan.
3.3
Recovery from Disability
A
Participant will be considered to have a Recovery from Disability
if (a) a Participant has a Termination of Employment due to
Disability before the Participant has a nonforfeitable right to a
benefit under Section 5.1 of this Plan and (b) the
Disability ceases before the Participant’s right to a
Disability retirement benefit under Section 5.4 becomes
nonforfeitable. If the Participant is reemployed by the Company
upon a Recovery from Disability, then the Participant’s
participation in this Plan shall resume on reemployment if approved
by the Committee; if not so approved, the Participant shall be
treated as if a change in employment status under Section 3.2
of this Plan had occurred as of the Participant’s
reemployment date. If the Participant is not reemployed by the
Company upon a Recovery from Disability, the Participant shall no
longer be considered Disabled for purposes of this Plan and the
Participant’s benefit shall be forfeited under
Section 5.5.
PAGE 5 — SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN
ARTICLE
IV—SURVIVOR BENEFITS
4.1
Pretermination Survivor Benefit
If
a Participant dies while employed by Company, or while Disabled but
before attaining a nonforfeitable right to a Disability retirement
benefit, Company shall pay a survivor benefit to the
Participant’s Beneficiary as follows:
(a)
Amount. The amount of the survivor benefit shall be one
(1) times the Participant’s Compensation, which for
purposes of this subsection shall be defined as annualized current
base salary plus the average of the bonuses paid for the three
(3) most recent completed fiscal years. If, however, the date
of death is after the Participant has attained age 55 and completed
10 Years of Service but before the Participant has attained age 62,
the amount of the survivor benefit shall be the greater of one
(1) times the Participant’s Compensation or the
Actuarial Equivalent lump sum present value of the
Participant’s Supplemental Retirement Benefit, determined
under Section 5.3, calculated as of the date of death and
based on the Participant’s Final Average Compensation. Such
benefit shall not be subject to any reduction of benefits for
commencement before age 62 as provided under Section 5.8(a)
below.
(b)
Time and Form of Payment. The survivor benefit shall be paid
to the Beneficiary within sixty (60) days following the death
of the Participant in the form of a lump sum payment.
4.2
Post-termination Survivor Benefit
(a)
Death Prior to Commencement of Benefits. If a Participant
who has a nonforfeitable right to a Supplemental Retirement Benefit
dies following a Termination of Employment but prior to the
commencement of accrued benefits hereunder, the Company shall pay a
survivor benefit to the Participant’s Beneficiary as
follows:
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