Second Amendment to Bowater Incorporated Retirement Plan for Outside Directors

Contract Categories: Human Resources › Retirement Agreements
Summary

Bowater Incorporated has amended its Retirement Plan for Outside Directors to allow participants to choose a lump sum payment option for their retirement benefits. Eligible directors can elect this option during December of each year, with the lump sum calculated using a specific IRS mortality table and a 7% interest rate. The election must be made at least one full calendar year before payment and can only be changed during the annual election period. This amendment was approved by the Executive Committee and signed on May 3, 2002.

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EX-10.2 4 g76267ex10-2.txt AMENDMENT NO. 2 DATED 5/3/02 TO THE BOWATER INC. EXHIBIT 10.2 SECOND AMENDMENT TO THE BOWATER INCORPORATED RETIREMENT PLAN FOR OUTSIDE DIRECTORS AS AMENDED AND RESTATED FEBRUARY 26, 1999 WHEREAS, Bowater Incorporated, a Delaware corporation (the "Corporation"), established the Bowater Incorporated Retirement Plan for Outside Directors (the "Plan"); and WHEREAS, the Executive Committee of the Board of Directors of the Corporation desires to amend the Plan to provide for a lump sum distribution option; NOW, THEREFORE, effective November 6, 2001, the Plan shall be amended as follows: 1. Section 4.04 shall be amended by adding the clause "Except as may be otherwise elected by the Participant pursuant to Section 4.05," at the beginning thereof. 2. A new Section 4.05 shall be added as follows: "4.05 LUMP SUM OPTION: During each December beginning with December 2001 (the "Election Period"), a Participant may elect to receive any benefits to which he is entitled under this Article 4 in a lump sum computed using the applicable mortality table defined in Internal Revenue Code Section 417(e)(3)(A)(ii)(I) and a 7% interest rate ("Lump Sum Election"). A Lump Sum Election must be made on or before the December 31st that is at least one full calendar year before the year of payment. A Lump Sum Election, once made, cannot be revoked except during an Election Period." IN WITNESS WHEREOF, Bowater Incorporated has caused this First Amendment to be executed by a duly authorized member of the Executive Committee of the Board of Directors as of the 6th day of November 2001. BOWATER INCORPORATED Executive Committee of the Board of Directors By: /s/ Arnold M. Nemirow ----------------------------------- Arnold M. Nemirow Date Signed: May 3, 2002