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JACK IN THE BOX INC. EXECUTIVE DEFERRED COMPENSATION PLAN

Executive Compensation Plan Agreement

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JACK IN THE BOX INC.

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Title: JACK IN THE BOX INC. EXECUTIVE DEFERRED COMPENSATION PLAN
Governing Law: California     Date: 2/18/2009
Industry: Restaurants     Sector: Services

JACK IN THE BOX INC. EXECUTIVE DEFERRED COMPENSATION PLAN, Parties: jack in the box inc.
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Exhibit 10.13

JACK IN THE BOX INC.

EXECUTIVE DEFERRED COMPENSATION PLAN

As Amended and Restated Effective January 1, 2009

Effective January 1, 2009

 


 

TABLE OF CONTENTS

 

 

 

 

 

 

 

PAGE

ARTICLE I—PURPOSE

 

 

1

 

 

 

 

 

 

ARTICLE II—DEFINITIONS

 

 

1

 

 

 

 

 

 

2.1 Account

 

 

1

 

2.2 Administrative Committee

 

 

1

 

2.3 Beneficiary

 

 

1

 

2.4 Board

 

 

1

 

2.5 Change in Control

 

 

1

 

2.6 Code

 

 

2

 

2.7 Company

 

 

2

 

2.8 Compensation

 

 

2

 

2.9 Deferral Election

 

 

3

 

2.10 Disability

 

 

3

 

2.11 Discretionary Contribution

 

 

3

 

2.12 Effective Date

 

 

3

 

2.13 Elected Deferred Compensation

 

 

3

 

2.14 Employer

 

 

3

 

2.15 Financial Hardship

 

 

3

 

2.16 Hardship Distribution

 

 

4

 

2.17 Matching Contribution

 

 

4

 

2.18 Participant

 

 

4

 

2.19 Participation Agreement

 

 

4

 

2.20 Plan

 

 

4

 

2.21 Plan Year

 

 

4

 

2.22 Scheduled Withdrawal

 

 

4

 

2.23 Supplemental Contribution

 

 

4

 

2.24 Transfer Contribution

 

 

4

 

2.25 Year of Service

 

 

5

 

 

 

 

 

 

ARTICLE III—PARTICIPATION AND DEFERRAL ELECTIONS

 

 

5

 

 

 

 

 

 

3.1 Eligibility and Participation

 

 

5

 

3.2 Deferral Elections

 

 

5

 

3.3 Commencement, Duration and Modification of Deferral Election

 

 

6

 

(i)


 

TABLE OF CONTENTS

 

 

 

 

 

 

 

PAGE

ARTICLE IV—DEFERRED COMPENSATION ACCOUNTS

 

 

6

 

 

 

 

 

 

4.1 Accounts

 

 

6

 

4.2 Crediting of Deferrals

 

 

6

 

4.3 Termination Account

 

 

6

 

4.4 Scheduled Withdrawal Accounts

 

 

7

 

4.5 Matching Contribution Account

 

 

7

 

4.6 Discretionary Contribution Account

 

 

7

 

4.7 Supplemental Contribution Account

 

 

7

 

4.8 Transfer Contribution

 

 

7

 

4.9 Vesting of Accounts

 

 

7

 

4.10 Statement of Accounts

 

 

8

 

 

 

 

 

 

ARTICLE V—INVESTMENT AND EARNINGS

 

 

8

 

 

 

 

 

 

5.1 Plan Investments

 

 

8

 

5.2 Crediting Investment Gains and Losses

 

 

8

 

 

 

 

 

 

ARTICLE VI—PLAN BENEFITS

 

 

9

 

 

 

 

 

 

6.1 Distribution Options

 

 

9

 

6.2 Commencement of Benefits

 

 

9

 

6.3 Termination Benefits

 

 

10

 

6.4 Death Benefits

 

 

10

 

6.5 Scheduled Withdrawal

 

 

10

 

6.6 Hardship Distribution

 

 

11

 

6.7 Withholding and Payroll Taxes

 

 

11

 

6.8 Payment to Guardian

 

 

11

 

 

 

 

 

 

ARTICLE VII—BENEFICIARY DESIGNATION

 

 

11

 

 

 

 

 

 

7.1 Beneficiary Designation

 

 

11

 

7.2 Changing Beneficiary

 

 

12

 

7.3 No Beneficiary Designation

 

 

12

 

7.4 Effect of Payment

 

 

12

 

(ii)


 

TABLE OF CONTENTS

 

 

 

 

 

 

 

PAGE

ARTICLE VIII—ADMINISTRATION

 

 

12

 

 

 

 

 

 

8.1 Committee; Duties

 

 

12

 

8.2 Agents

 

 

13

 

8.3 Binding Effect of Decisions

 

 

13

 

8.4 Indemnity of Committee

 

 

13

 

8.5 Election of Committee After Change in Control

 

 

13

 

 

 

 

 

 

ARTICLE IX—CLAIMS PROCEDURE

 

 

13

 

 

 

 

 

 

9.1 Claim

 

 

13

 

9.2 Denial of Claim

 

 

13

 

9.3 Review of Claim

 

 

14

 

9.4 Final Decision

 

 

14

 

 

 

 

 

 

ARTICLE X—AMENDMENT AND TERMINATION OF PLAN

 

 

14

 

 

 

 

 

 

10.1 Amendment

 

 

14

 

10.2 Company’s Right to Terminate

 

 

15

 

 

 

 

 

 

ARTICLE XI—MISCELLANEOUS

 

 

15

 

 

 

 

 

 

11.1 Unfunded Plan

 

 

15

 

11.2 Unsecured General Creditor

 

 

15

 

11.3 Trust Fund

 

 

15

 

11.4 Nonassignability

 

 

16

 

11.5 Not a Contract of Employment

 

 

16

 

11.6 Protective Provisions

 

 

16

 

11.7 Governing Law

 

 

16

 

11.8 Validity

 

 

16

 

11.9 Gender

 

 

16

 

11.10 Notice

 

 

16

 

11.11 Successors

 

 

17

 

 

 

 

 

 

APPENDIX A—GRANDFATHERED PRE-2005 PLAN PROVISIONS

 

 

18

 

(iii)


 

JACK IN THE BOX INC.

EXECUTIVE DEFERRED COMPENSATION PLAN

ARTICLE I—PURPOSE

     The purpose of this Executive Deferred Compensation Plan is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain key employees of Employer. It is intended that the Plan will aid in attracting and retaining key employees of exceptional ability by providing them with these benefits.

ARTICLE II—DEFINITIONS

     For the purposes of this Plan, the following terms shall have the meanings indicated, unless the content clearly indicates otherwise:

2.1 Account

     “Account” means the interest of a Participant in the Plan as represented by the hypothetical bookkeeping entries kept by Employer. A separate Account shall be established for each Participant and as may otherwise be required.

2.2 Administrative Committee

     “Administrative Committee” means the committee appointed by the Board to administer the Plan pursuant to Article VIII.

2.3 Beneficiary

     “Beneficiary” means the person, persons or entity (including, without limitation, any trustee) last designated by a Participant to receive the benefits specified hereunder, in the event of the Participant’s death.

2.4 Board

     “Board” means the Board of Directors of the Company.

2.5 Change in Control

     “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 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

PAGE 1 — EXECUTIVE DEFERRED COMPENSATION PLAN

 


 

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.

2.6 Code

     “Code” means the Internal Revenue Code of 1986, as amended.

2.7 Company

     “Company” means Jack in the Box Inc., a Delaware corporation or any successor to the business thereof.

2.8 Compensation

     “Compensation” means the base salary payable to and bonus earned by a Participant for services performed for the Employer and considered to be wages for purposes of federal income tax withholding. Inclusion of any other forms of compensation is subject to Committee approval. Compensation shall be calculated before reduction for any amounts deferred by the Participant pursuant to the Employer’s tax qualified plans which may be maintained under Code Section 401(a) or a plan maintained under Code Section 125, or under this Plan.

PAGE 2 — EXECUTIVE DEFERRED COMPENSATION PLAN

 


 

2.9 Deferral Election

     “Deferral Election” means a commitment by a participant to defer a portion of Compensation to this Plan and for which a Participation Agreement has been submitted by the Participant to the Administrative Committee.

2.10 Disability

     “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 12 months and that makes the Participant unable to engage in any substantial gainful activity. The Administrative Committee shall determine the existence of Disability and may rely on advice from a medical examiner satisfactory to the Administrative Committee in making the determination.

2.11 Discretionary Contribution

     “Discretionary Contribution” means an Employer contribution credited to a Participant’s Account pursuant to Section 4.6 of this Plan.

2.12 Effective Date

     This Amended and Restated Plan shall be effective as of January 1, 2008. The Plan was originally effective as of January 1, 2003.

2.12 Elected Deferred Compensation

     “Elected Deferred Compensation” means the amount of Compensation that a Participant elects to defer pursuant to a Deferral Election.

2.13 Employer

     “Employer” means the Company and any affiliate or subsidiary entities designated by the Board as participating in this Plan.

2.15 Financial Hardship

     “Financial Hardship” means an unforeseeable emergency due to an illness or accident of the Participant, the Participant’s spouse, the Participant’s Beneficiary or the Participant’s dependent (as defined in Section 152(a) of the Code); loss of the Participant’s property due to casualty (including the need to rebuild a home not otherwise covered by insurance); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant that would result in severe financial hardship to the Participant if early withdrawal were not permitted. Financial Hardship will not exist if the financial need can be relieved through reimbursement or compensation from insurance or otherwise; by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or by cessation of deferrals under the Plan.

PAGE 3 — EXECUTIVE DEFERRED COMPENSATION PLAN

 


 

2.16 Hardship Distribution

     “Hardship Distribution” means a distribution pursuant to Section 6.6 of the Plan made on account of the Participant’s Financial Hardship. Such distribution must be limited to the amount reasonably necessary to satisfy the Financial Hardship (which may include any amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution).

2.17 Matching Contribution

     “Matching Contribution” means an Employer contribution credited to a Participant’s Account pursuant to Section 4.5 of this Plan.

2.18 Participant

     “Participant” means any individual who is participating in this Plan as provided in Article III.

2.19 Participation Agreement

     “Participation Agreement” means the agreement, whether written or provided through electronic means, to defer Compensation submitted by a Participant to the Administrative Committee or its delegates prior to the commencement of the period in which the Elected Deferred Compensation is to be earned.

2.20 Plan

     “Plan” means this Jack in the Box Inc. Executive Deferred Compensation Plan as set forth in this document and as the same may be amended from time to time.

2.21 Plan Year

     “Plan Year” means each calendar year beginning on January 1 and ending on December 31.

2.22 Scheduled Withdrawal

     “Scheduled Withdrawal” means a distribution to a Participant prior to termination of employment pursuant to Sections 4.4 and 6.5 of this Plan.

2.23 Supplemental Contribution

     “Supplemental Contribution” means an Employer Contribution credited to a Participant’s Account pursuant to Section 4.7 of the Plan.

2.24 Transfer Contribution

     “Transfer Contribution” means a Participant’s contribution credited to a Participant’s Account pursuant to Section 4.8 of the Plan.

PAGE 4 — EXECUTIVE DEFERRED COMPENSATION PLAN

 


 

2.25 Year of Service

     “Year of Service” shall have the same meaning as provided in the Company’s 401(k) plan, whether or not the Participant is a participant in such plan.

ARTICLE III—PARTICIPATION AND DEFERRAL ELECTIONS

3.1 Eligibility and Participation

     (a) Eligibility. Any select key employee designated by the Employer and approved by the Administrative Committee shall be eligible to participate in the Plan.

     (b) Participation. An eligible employee may elect to participate in the Plan by submitting a Participation Agreement to the Administrative Committee prior to the beginning of the Plan Year in which the employee is eligible to participate.

     (c) Part-Year Participation. In the event an employee first becomes eligible to participate in the Plan on other than the first day of a Plan Year, a Participation Agreement may be submitted to the Administrative Committee within 30 days after the employee becomes eligible to participate in the Plan, provided, however, that an employee will not be considered newly eligible to participate in the Plan for purposes of this provision if the employee has ever been eligible to participate in another plan maintained by the Employer considered to be the same type of plan under Code section 409A. The Deferral Election shall be effective only with regard to Compensation attributable to base salary earned following submission of the Participation Agreement to the Administrative Committee.

3.2 Deferral Elections

     A Participant may file with the Administrative Committee a Participation Agreement to defer any or all of the following:

     (a) Salary Deferrals. A Participant may elect to defer up to fifty percent (50%) of base salary. The amount to be deferred shall be stated as a whole percentage of base salary.

     (b) Bonus Deferrals. A Participant may elect to defer all (less applicable taxes) or any portion of each bonus to be paid by the Employer, provided, however, that such an election must be made before the beginning of the Plan Year or other performance period in which the bonus is earned, unless the bonus qualifies as “performance-based compensation” under Code section 409A, in which case a Participant may elect to defer such bonus in accordance with the rules set out in Treasury Regulation section 1.409A-2(a)(8). The amount to be deferred shall be stated as a whole percentage of each bonus payment. A Participant may also elect to defer, under this paragraph, all (less applicable taxes) or any portion of compensation paid by the Employer under a Performance Unit Program that the Employer designates as eligible for deferral.

     (c) Changes to Deferral Elections . The Administrative Committee may change the maximum amount of salary and/or bonus that may be deferred by giving written notice to all Participants. No such change may affect a Deferral Election entered into prior to the Administrative Committee’s action.

PAGE 5 — EXECUTIVE DEFERRED COMPENSATION PLAN

 


 

3.3 Commencement, Duration and Modification of Deferral Election

     (a) Commencement. A Deferral Election shall become effective on the first day of the Plan Year immediately following the date a Participation Agreement for such Deferral Election is filed with the Administrative Committee. In the case when an employee first becomes eligible to participate in the Plan on other than the first day of a Plan Year, the Deferral Election will be effective only with regard to Compensation attributable to base salary earned following a timely submitted Participation Agreement per Section 3.1(c).

     (b) Duration. A Deferral Election shall remain in effect for all future Plan Years unless revoked or amended in writing or through electronic means by the Participant. Any such revocation or amendment shall become effective as of the first day of the Plan Year immediately following the receipt of the revocation or amendment by the Administrative Committee.

     (c) Modification . A Deferral Election shall terminate on the date a Participant terminates employment or receives a Hardship Distribution pursuant to Section 6.7 of the Plan, provided, however, that if a Participant is rehired during the same Plan Year as the Plan Year in which the Participant terminates employment, a Deferral Election applicable to such Plan Year shall be reinstated for the balance of the Plan Year. A Deferral Election shall also terminate as of December 31 following a demotion during the Plan Year.

ARTICLE IV—DEFERRED COMPENSATION ACCOUNTS

4.1 Accounts

     For recordkeeping purposes only, the Employer shall maintain up to six (6) separate Accounts for each Participant. The Accounts shall be known as the Termination Account, Scheduled Withdrawal Accounts, Matching Contribution Account, Discretionary Contribution Account, and Supplemental Contribution Account.

4.2 Crediting of Deferrals

     Beginning January 1 of each Plan Year, a Participant’s Elected Deferred Compensation which consists of deferred base salary shall be credited to the Participant’s Accounts as soon as administratively feasible following the date when the corresponding nondeferred portion of the Participant’s base salary is paid or would have been paid but for the Deferral Election. Beginning January 1 of each Plan Year, a Participant’s Elected Deferred Compensation, which consists of deferred bonus, shall be credited to the Participant’s Accounts as of the date of each year on which the bonus is paid or would have been paid but for the Deferral Election applicable to such bonus.

4.3 Termination Account

     A Participant may establish a Termination Account by filing a Participation Agreement to defer Compensation into the Termination Account and to receive benefits from such Account following termination of employment.

PAGE 6 — EXECUTIVE DEFERRED COMPENSATION PLAN

 


 

4.4 Scheduled Withdrawal Accounts

     A Participant may establish a Scheduled Withdrawal Account by filing a Participation Agreement to defer part or all of Compensation, Matching Contribution, and Discretionary Contributions for a given Plan Year along with earnings on such amounts into the Scheduled Withdrawal Account and by designating a future date on which each such amounts are to be distributed.

4.5 Matching Contribution Account

     There shall be credited to each Participant’s Matching Contribution Account an amount equal to one hundred percent (100%) of the first three percent (3%) of a Participant’s Compensation that is deferred into this Plan for the Plan Year. The amount shall be credited as of the date employee deferrals are credited pursuant to Section 4.2 of the Plan.

4.6 Discretionary Contribution Account

     The Employer may make contributions in such amount and at such times as recommended by the Administrative Committee and approved by the Compensation Committee of the Board, or as the Board, in its sole discretion, shall determine. Such amount shall be


 
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