The Payout Date for Actual Bonus Awards is made in the calendar year following the applicable Plan Year, on or before March 15th of such following calendar year, to all participants who remain eligible as of the Payout Date, including those on any type of leave of absence and those whose employment has previously terminated on account of death but who are eligible for an Actual Bonus Award per the terms of the Plan.
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Termination, Suspension or Modification and Plan Administration
The Board of Directors may terminate, suspend or modify (and if suspended, may reinstate with or without modification) all or part of the Plan at any time, with or without notice to participants. The Compensation Committee has sole authority to administer or interpret the Plan, and the Compensation Committee retains its right to exercise discretion as it sees fit. Notwithstanding anything herein to the contrary, the Board of Directors may determine that no Actual Bonus Awards shall be paid hereunder for a particular Plan Year or to a particular participant or participants, notwithstanding the level of achievement of Corporate and/ or Individual Performance for such Plan Year.
The Compensation Committee reserves the exclusive right to determine eligibility to participate in this Plan and to interpret all applicable terms and conditions, including eligibility criteria, performance objectives and payment conditions, for the Companys executive officers. The Compensation Committee delegates to each of the Companys Chief Executive Officer, President, highest human resources officer and highest finance officer the authority to administer, and determine eligibility to participate in, the Plan and interpret all applicable terms and conditions for employees who are not executive officers of the Company. The determinations and interpretations of the Compensation Committee and its delegates will be conclusive.
All Actual Bonus Awards are paid from the Companys general assets. No trust, account or other separate collection of amounts will be established for the payment of Actual Bonus Awards under the Plan. Actual Bonus Awards are unfunded obligations of the Company, so if and when an Actual Bonus Award becomes due, a participants rights to payment are no greater than the rights of a general unsecured creditor.
Section 409A It is intended that this Plan comply with or be exempt from Section 409A of the Internal Revenue Code of 1986 (the Code), and the Treasury Regulations and IRS guidance thereunder (collectively referred to as Section 409A), and notwithstanding anything to the contrary herein, it shall be administered, interpreted, and construed in a manner consistent with Section 409A. If and to the extent required to comply with Section 409A, no payment or benefit required to be paid under this Plan on account of termination of a participants employment shall be made unless and until the participant incurs a separation from service within the meaning of Section 409A. If and to the extent any portion of any payment, compensation or other benefit provided to a participant in connection with the participants employment termination is determined to constitute nonqualified deferred compensation within the meaning of Section 409A of the Code, and the participant is a specified employee as defined in Section 409A(a)(2)(B)(i) of the Code, as determined by the Company in accordance with its procedures, by which determination participants hereby agree to be bound, such portion of the payment, compensation or other benefit shall not be paid before the earlier of (i) the expiration of the six month period measured from the date of the participants separation from service (as determined under Section 409A of the Code) or (ii) the tenth day following the date of the participants death following such separation from service (the New Payment Date). The aggregate of any payments that otherwise would have been paid to the participant during the period between the date of separation from service and the New Payment Date shall be paid in a lump sum in the first payroll period beginning after such New Payment Date. Notwithstanding anything herein to the contrary, the Company shall have no liability to any Plan participant or to any other person in the event that the payments that may be earned hereunder do not comply with or are not exempt from Section 409A.