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This excerpt taken from the FSYS DEF 14A filed Nov 28, 2007. Treatment of Investments in Deferred Compensation Plan Accounts. Any employee who participates in our deferred compensation plan has an absolute right to the salary he deferred and contributed to the plan, adjusted for all investment gains, losses and interest, when he leaves the Company’s employment regardless of his reason for leaving the Company or his length of service with the Company. In contrast, the participant’s right to the funds contributed by the Company is subject to vesting as described above. Any unvested portion of the Company matching funds contributed to the account in the employee’s name is forfeited by the employee upon his retirement, resignation, disability or termination by the Company for any reason. However, a participant automatically becomes 100% vested in the Company matching funds upon a change in control of the Company
or if the participant dies prior to receiving any payments under the plan.
Messrs. Costales and Garner participated in the deferred compensation plan during 2006. Mr. Garner had already worked for us for more than five years on December 31, 2006 and so he was already fully vested in the shares the Company purchased with its matching contributions. Therefore, a change in control of the Company at that point would not have altered the payments he would have been entitled to receive from the deferred compensation plan. Mr. Costales had worked for us for less than two years on December 31, 2006 and so he was not vested at all in the shares the Company purchased with its matching contributions. Therefore, a change in control of the Company at that point would have resulted in Mr. Costales being able to receive payments of approximately $6,700 that he would not have been eligible to receive in the absence of a change in control. |
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