EXHIBIT 10.22.5
THE RETIREMENT PLAN FOR OFFICERS
OF NCR
(AMENDED AND RESTATED EFFECTIVE
DECEMBER 31, 2008)
WHEREAS , this Plan was originally adopted effective as
of May 17, 1989, and has been amended from time to time;
and
WHEREAS , to comply with final regulations issued under
Section 409A of the Code, the Company desires to amend and
restate the Plan;
NOW THEREFORE
, the Plan is hereby amended and
restated in its entirety, as set forth herein, effective as of
December 31, 2008.
ARTICLE I
DEFINITIONS
Whenever used in the Plan, the
following terms shall have the meanings hereinafter set
forth:
“ Affiliate ”
shall have meaning set forth in SEC Rule 405 under the Securities
Act of 1933, as currently in effect.
“ AT&T ”
means AT&T Corp., a New York corporation, and its
successors.
“ Board of Directors
” means the Board of Directors of NCR Corporation.
“ Career Average Monthly
Salary ” shall mean a Participant’s average monthly
salary for all years of Service immediately preceding the
Termination Date or the date of the Participant’s termination
of participation in the Plan, including amounts received by a
Participant from the Company through the U.S. payroll while
actively employed that are currently includible in gross income for
Federal income tax purposes, and sick pay and any salary deferral
contributions made by the Company on behalf of the Participant for
the Plan Year; but excluding expense reimbursements, fringe
benefits, moving expenses, deferred compensation, welfare benefits,
signing bonuses, retention bonuses and severance pay.
If a Participant, because of absence
for sickness or disability or other authorized leave of absence,
does not have earnings, base earnings shall be imputed at the last
rate in effect immediately prior to the commencement of such
absence for the period of such absences, but in no event more than
20 quarters.
“ Committee ”
means the Compensation and Human Resource Committee of the Board of
Directors.
“ Company ” means
NCR Corporation, a Maryland corporation, and its
successors.
“ Disability ”
means the inability of a Participant, because of bodily injury or
disease which results from an avoidable cause, to perform the
duties of such Participant’s regular occupation, as
determined by the Committee.
“ 409A Committee
” means the administrative committee designated by the Senior
Vice President, Human Resources of the Company.
“ Participant ”
shall have the meaning set forth in ARTICLE IV.
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“ Pension Plan ”
means the NCR Pension Plan.
“ Pension Plan Benefit
” means the monthly amount of any employer-provided pension
paid to a Participant under the Pension Plan or any other defined
benefit pension plan of the Company, a subsidiary or Affiliate
thereof, with respect to the Participant’s Service,
excluding, however, any monthly amount payable to a Participant
from his PensionPlus account under the Pension Plan. “Pension
Plan Benefit” shall also include any monthly amount received
by a Participant from the Nonqualified Excess Plan, or any
long-term disability plan sponsored by the Company or a subsidiary
or Affiliate thereof, during such time as the Participant receives
such long-term disability benefit.
“ Plan ” means
The Retirement Plan for Officers of NCR, as embodied herein or as
amended from time to time.
“ Separation from
Service ” means a termination of employment with the
Company and its affiliated group in such a manner as to constitute
a “separation from service” as defined under
Section 409A of the Code (for this purpose, the term
“affiliated group” shall be interpreted in a manner
consistent with the definition of “service recipient”
contained in Section 409A of the Code). To the extent
permitted by Section 409A of the Code, the 409A Committee
retains discretion, in the event of a sale or other disposition of
assets, to specify whether a Participant who provides services to
the purchaser immediately after the transaction has incurred a
Separation from Service. If a Participant was an employee of the
Company or its affiliated group immediately prior to the spin-off
of Teradata Corporation by the Company and an employee of Teradata
Corporation or its affiliated group immediately after the spin-off,
then solely for purposes of determining when that Participant has
incurred a Separation from Service, the term “Company”
as used in this definition shall mean Teradata Corporation, instead
of NCR Corporation.
“ Service ” means
a Participant’s period of employment with the Company, a
subsidiary or Affiliate thereof, or a predecessor of any of the
foregoing from the date of participation in the Plan to the earlier
of the Termination Date or the date of loss of participating status
under this Plan. Service shall be computed to the nearest full
month.
“ Spouse ” means
the spouse of a Participant who was legally married to the
Participant on the date payment of the Participant’s benefits
commence hereunder.
“ Termination Date
” means the date on which a Participant ceases to be employed
by the Company or any of its foreign or domestic subsidiaries, by
reason of such Participant’s death, disability, retirement,
resignation, discharge or otherwise.
ARTICLE II
PURPOSE
The purpose of the Plan is to
provide for the payment of supplemental retirement benefits to
executives of the Company in order to attract and retain executives
of superior ability, industry and loyalty.
ARTICLE III
ADMINISTRATION
The Plan shall be administered by
the Committee. The Committee is authorized, subject to the
provisions of the Plan, to select Participants, to establish such
rules and regulations as it deems necessary for the proper
administration of the Plan and to make such determinations and
interpretations and to take such actions in connection with the
Plan or the benefits thereunder as it deems necessary or advisable.
All
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such determinations, interpretations and actions
by the Committee under the Plan or with respect to any benefits
thereunder shall be final and binding on all persons.
ARTICLE IV
ELIGIBILITY
Participants in the Plan on
December 31, 1996 shall continue to participate in the Plan.
Effective January 1, 1997, any employee of the Company who is
hired at or promoted to a Band I position, and any employee of the
Company who is hired at or promoted to a Band II position in the
United States, shall become a Participant effective as of the first
day of employment in such position. The Committee, in its
discretion, may designate other employees of the Company as
Participants in the Plan.
Participation shall cease on the
earlier of the date on which the Participant terminates employment
with the Company or dies.
Notwithstanding the above, effective
June 1, 2002, no new participants will be admitted to the
Plan.
ARTICLE V
AGREEMENTS
Participants in, and the benefits to
which each Participant may be entitled under, the Plan shall be
evidenced by agreements between the Company and each Participant,
which agreements shall comply with and be subject to all the terms
and conditions of the Plan.
ARTICLE VI
RETIREMENT AND TERMINATION
BENEFITS
1. A Participant who retires at or
after his or her 65th birthday shall be entitled to receive monthly
benefits under the Plan in an amount equal to (a) minus
(b).
(a) 2.5% of the Participant’s
Career Average Monthly Salary multiplied by the number of years of
Service.
(b) The Pension Plan
Benefit.
Effective December 31, 2006, no
additional benefits shall accrue under the Plan, and the
calculation of benefits accrued as of December 31, 2006 shall
be based on service, compensation and the Pension Plan Benefit
determined as of such date.
2. In the event a Participant
retires or terminates employment with the Company on or after his
or her 55th birthday and prior to his or her 65th birthday, the
benefit he or she is entitled to receive shall be the amount
determined pursuant to Section l of this ARTICLE VI, reduced in
accordance with the following table:
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|
|
|
|
|
|
|
Percentage
of Monthly
Benefit
which shall
be paid
commencing
on the
Termination
Date
|
|
|
62 and over
|
|
100.0
|
%
|
|
61
|
|
94
|
%
|
|
60
|
|
88
|
%
|
|
59
|
|
82
|
%
|
|
58
|
|
76
|
%
|
|
57
|
|
70
|
%
|
|
56
|
|
64
|
%
|
|
55
|
|
58
|
%
|
|
54
|
|
52
|
%
|
|
53
|
|
46
|
%
|
|
52
|
|
40
|
%
|
|
51
|
|
34
|
%
|
|
50
|
|
28
|
%
|
(An adjustment shall be made by
straight line interpolation for ages which are not
integral.)
3. A Participant shall be entitled
to benefits under the Plan only if he or she is vested in the Plan
benefit at the time his or her employment with the Company
terminates, or his or her participation in the Plan terminates due
to change in employment status. A Participant shall become vested
in his or her Plan benefit upon (1) completion of five years
of service with the Company, or (2) the Participant’s
death while employed by the Company.
4. If a Participant’s
participation in the Plan terminates due to a change in such
Participant’s employment status with the Company, the amount
of his or her benefits shall be computed in accordance with
Section 1 or 2 of this ARTICLE VI; provided, however, that for
purposes of determining the Pension Plan Benefit, the portion of
any pension paid to such former Participant under the Pension Plan
attributable to the period after the termination of participation
in the Plan shall be disregarded.
5. Notwithstanding any other
provisions of the Plan, and except as otherwise provided in
Appendix A, if a Participant is discharged by the Company for fraud
or misconduct, such Participant shall forfeit all rights to
benefits under the Plan.
6. If at any time the Committee, in
its sole discretion, determines that a Participant, former
Participant or other person who is entitled to receive or is
receiving any benefits under the Plan has become, within three
years of the anniversary of the Participant’s or former
Participant’s Termination Date, an employee of, a proprietor,
partner, principal, or more than 5% shareholder in, or consultant
to any corporation, partnership, proprietorship or other entity
which is in competition with the Company, he or she shall forfeit
all rights to benefits under the Plan. In the event and to the
extent that any portion of this Section 6 shall be determined
by a court of competent jurisdiction to be invalid and
unenforceable, such determination shall not affect that portion to
the extent it is not determined to be invalid and
unenforceable.
7. Except as otherwise provided in
Appendix A, the Committee shall have the sole discretion to
determine if a Participant has retired or terminated employment
with the Company and if any termination is voluntary or
involuntary.
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8. A change in control of NCR
Corporation occurred on September 13, 1991. Each Participant
who had been a Participant for at least one year prior to
September 13, 1991 and who is a Participant and actively
employed by the Company or a subsidiary or Affiliate thereof on and
after January 1, 1995, is entitled to a benefit as determined
under Appendix A to this Plan, instead of the benefit described in
this ARTICLE VI.
ARTICLE VII
TIME AND FORM OF BENEFIT
PAYMENTS
1. Grandfathered Participants. Each
Participant listed on Appendix B, as it may be amended from time to
time by the 409A Committee (a “Grandfathered
Participant”), was vested in his benefit as of, and
terminated employment on or before, December 31, 2004.
Therefore, the entire benefit of each Grandfathered Participant
constitutes an “amount deferred” prior to
January 1, 2005 within the meaning of Section 409A of the
Code. Each Grandfathered Participant (or his Spouse) shall continue
to receive or commence receiving his benefits under Article VI or
Appendix A (as applicable) at the same time and in the same form as
the Participant’s (or Spouse’s) benefit under the
Pension Plan, in accordance with administrative rules in effect
under the Plan as of October 3, 2004. Nothing contained herein
is intended to materially enhance a benefit or right existing under
the Plan as in effect on October 3, 2004, or add a new
material benefit or right, with respect to the Grandfathered
Participants. It is intended that benefits under Article III with
respect to Grandfathered Participants shall be exempt from the
application of Section 409A of the Code.
2. Non-Grandfathered Participants.
Each Participant who is not a Grandfathered Participant (a
“Covered Participant”) may, no later than a date
specified by the 409A Committee (provided that such date occurs no
later than December 31, 2008), make the following elections on
a form provided by the 409A Committee in accordance with the
following terms and conditions (and such additional terms and
conditions as the 409A Committee may specify in its sole
discretion):
(a) Except as otherwise provided in
ARTICLE VIII or this ARTICLE VII, each Covered Participant may
elect to have his benefits under ARTICLE VI or Appendix A (as
applicable) commence on the later of (x) the first business
day of the seventh month immediately following the Covered
Participant’s Separation from Service, or (y) the first
business day of the month immediately following the attainment of
an age specified by the Covered Participant between 55 and 65;
provided that the Covered Participant will attain the specified age
in 2009 or later; and provided further that to the extent that a
Covered Participant does not timely file an election as provided in
this ARTICLE VII(2)(a), or such election does not comply with the
Plan or the terms and conditions established by the 409A Committee,
then he will be deemed to have irrevocably elected age 55 (or for a
Participant that has attained at least age 55 prior to
January 1, 2009, the age that such Covered Participant that
will attain in 2009). The election described in this ARTICLE
VII(2)(a) shall become irrevocable on a date specified by the 409A
Committee. Once irrevocable, the election may not be
changed.
(b) Except as otherwise provided in
ARTICLE VIII or this ARTICLE VII, each Covered Participant may
elect to have his benefits under ARTICLE VI or Appendix A (as
applicable) paid in the form of a single life annuity or an
actuarially equivalent (within the meaning of Treasury Regulation
§ 1.409A-2(b)(2)(ii)) 50%, 75% or 100% joint and survivor
annuity (determined using the actuarial assumptions of the Pension
Plan), payable in bi-weekly installments. To the extent that a
Covered Participant does not timely file an election as provided in
this ARTICLE VII(2)(b), or such election does not comply with the
Plan or the terms and conditions established by the 409A Committee,
then a Covered Participant who is unmarried on the date that
payments commence pursuant to ARTICLE VII(2)(a) will be deemed to
have irrevocably elected a single life annuity, and a Covered
Participant who is married on the date that payments commence
pursuant to ARTICLE VII(2)(a) will be deemed to have
irrevocably
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elected a 50% joint and survivor annuity. The
election described in this ARTICLE VII(2)(b) shall become
irrevocable on a date specified by the 409A Committee.
Notwithstanding the preceding sentence, a Covered Participant
designated by the 409A Committee may elect, on a form provided by
the 409A Committee and subject to such terms and conditions as the
409A Committee specifies, to change his form of annuity to another
annuity form specified in this ARTICLE VII(2)(b) at any time prior
to the payment commencement date.
(c) The elections described in this
ARTICLE VII(2) shall also apply to the Covered Participant’s
benefits, if any, under the NCR Nonqualified Excess Plan, the NCR
Officer Plan, the NCR Mid Career Hire Supplemental Pension Plan,
and the NCR Supplemental Pension Plan for AT&T Transfers. This
ARTICLE VII(2) is intended to comply with the requirements of
Notice 2007-86 and the applicable proposed and final Treasury
Regulations issued under Section 409A of the Code and shall be
interpreted in a manner consistent with such intent. Therefore,
this ARTICLE VII(2) shall not apply to the extent that it would
cause an amount otherwise payable in 2008 pursuant to the terms of
the Plan (and related administrative rules implemented to comply
with Section 409A of the Code) in effect immediately prior to
December 31, 2008 to be paid in a later year; instead, the
amounts otherwise payable in 2008 shall continue to be paid to the
Covered Participant in accordance with the terms of the Plan (and
related administrative rules implemented to comply with
Section 409A of the Code) in effect immediately prior to
December 31, 2008.
3. Discretionary Lump Sum Payment.
Notwithstanding the foregoing, and to the extent permitted by
Section 409A, the Company may, in its sole discretion, pay the
benefit of any Participant in a single lump sum payment, provided
that (a) such payment results in the termination and
liquidation of the entirety of the Participant’s interest in
the Plan (and any other deferred compensation arrangement of the
Company that is aggregated with the Plan pursuant to Treasury
Regulation § 1.409A-1(c)), (b) the amount of such payment
(determined using the actuarial assumptions applicable under the
Pension Plan) does not exceed the applicable dollar amount under
Section 402(g)(1)(B) of the Code for the year in which the
payment is made, and (c) with respect to a Covered
Participant, in no event may a payment be accelerated following a
Covered Participant’s Separation from Service to a date that
is prior to the first business day of the seventh month following
the Participant’s Separation from Service (or if earlier, the
date of the Participant’s death).
ARTICLE VIII
PRE-RETIREMENT
BENEFITS
With respect to Participants
eligible for the benefits described in Appendix A, except as
provided in Section 4 below, the provisions of this ARTICLE
VIII shall be, in all respects, subject to Appendix A and, in the
event of any conflict between the terms of Appendix A and any other
terms of the Plan, the terms of Appendix A shall prevail and
supersede any such other terms.
l. In the event of the death of a
Participant on or after the effective date of participation in the
Plan and the Participant attaining age 55, but prior to such
Participant’s (a) retirement or other termination of
employment with the Company, if the Participant is a Grandfathered
Participant, or (b) commencement of benefits under this Plan,
if the Participant is a Covered Participant, his or her Spouse
shall be entitled to receive benefits under the Plan in an annual
amount equal to 50% of the benefits to which the Participant would
have been entitled to receive had he retired on the date of his
death. However, such benefits shall not be reduced pursuant to
Section 2 of ARTICLE VI.
2. In the event of the death of a
Participant on or after the effective date of participation in the
Plan and prior to such Participant’s (a) retirement or
other termination of employment with the Company, if the
Participant is a Grandfathered Participant, or
(b) commencement of benefits under this Plan, if
the
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Participant is a Covered Participant, and, in
either case, prior to the Participant attaining age 55, his or her
Spouse shall be entitled to receive benefits under the Plan in an
annual amount equal to 50% of the benefits to which the Participant
would have been entitled to receive had he retired on the date
following the day he would have attained age 55. Such benefits
shall be reduced pursuant to Section 2 of ARTICLE VI to those
payable at age 55.
3. Notwithstanding any election by a
Participant pursuant to ARTICLE VII(2), benefits payable pursuant
to ARTICLE VIII(1), (2) or (4) shall be paid in equal
bi-weekly installments for the life of the Spouse, commencing
(a) for a Grandfathered Participant, at the date of the
Grandfathered Participant’s death, and (b) for a Covered
Participant, on the later of (i) the first business day of the
seventh month immediately following the Covered Participant’s
death, or (ii) the first business day of the month immediately
following the date that the Covered Participant would have attained
age 55.
4. In the event of the death, prior
to (a) termination of employment, if the Participant is a
Grandfathered Participant, or (b) commencement of benefits
under this Plan, if the Participant is a Covered Participant, of a
Participant who would have been entitled to a benef