EXECUTIVE
DEFERRED COMPENSATION PLAN
As
Amended and Restated Effective January 1, 2009
Effective
January 1, 2009
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PAGE
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2.2
Administrative Committee
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2
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2
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3
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3
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2.11
Discretionary Contribution
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3
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3
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2.13
Elected Deferred Compensation
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3
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2.16
Hardship Distribution
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4
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2.17
Matching Contribution
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4
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4
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2.19
Participation Agreement
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4
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4
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4
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2.22
Scheduled Withdrawal
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4
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2.23
Supplemental Contribution
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4
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2.24
Transfer Contribution
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4
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5
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ARTICLE
III—PARTICIPATION AND DEFERRAL ELECTIONS
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5
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3.1
Eligibility and Participation
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5
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5
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3.3
Commencement, Duration and Modification of Deferral
Election
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6
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(i)
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PAGE
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ARTICLE
IV—DEFERRED COMPENSATION ACCOUNTS
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6
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6
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4.2
Crediting of Deferrals
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6
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6
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4.4
Scheduled Withdrawal Accounts
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7
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4.5
Matching Contribution Account
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7
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4.6
Discretionary Contribution Account
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7
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4.7
Supplemental Contribution Account
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7
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4.8
Transfer Contribution
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7
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7
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4.10
Statement of Accounts
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ARTICLE
V—INVESTMENT AND EARNINGS
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8
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8
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5.2
Crediting Investment Gains and Losses
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8
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9
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6.2
Commencement of Benefits
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10
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10
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6.6
Hardship Distribution
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11
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6.7
Withholding and Payroll Taxes
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11
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11
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ARTICLE
VII—BENEFICIARY DESIGNATION
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11
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7.1
Beneficiary Designation
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11
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12
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7.3
No Beneficiary Designation
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12
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12
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(ii)
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PAGE
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ARTICLE
VIII—ADMINISTRATION
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12
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12
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13
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8.3
Binding Effect of Decisions
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8.4
Indemnity of Committee
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8.5
Election of Committee After Change in Control
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13
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ARTICLE
IX—CLAIMS PROCEDURE
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ARTICLE
X—AMENDMENT AND TERMINATION OF PLAN
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14
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14
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10.2
Company’s Right to Terminate
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15
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15
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11.2
Unsecured General Creditor
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15
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15
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16
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11.5
Not a Contract of Employment
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16
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11.6
Protective Provisions
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16
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17
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APPENDIX
A—GRANDFATHERED PRE-2005 PLAN PROVISIONS
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(iii)
EXECUTIVE
DEFERRED COMPENSATION PLAN
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.
For
the purposes of this Plan, the following terms shall have the
meanings indicated, unless the content clearly indicates
otherwise:
“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.
“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.
“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
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.
“Code”
means the Internal Revenue Code of 1986, as amended.
“Company”
means Jack in the Box Inc., a Delaware corporation or any successor
to the business thereof.
“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
“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.
“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.
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.
“Employer”
means the Company and any affiliate or subsidiary entities
designated by the Board as participating in this Plan.
“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.
“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.
“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.
“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
“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.
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
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.
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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