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DTV » Topics » Short-Term Payout; Unforeseeable Financial Emergencies; Withdrawal Election

This excerpt taken from the DTV 10-K filed Mar 1, 2005.

Short-Term Payout; Unforeseeable Financial Emergencies; Withdrawal Election

 

4.1 Short-Term Payout. In connection with each election to defer an Annual Deferral Amount, a Participant may irrevocably elect to receive a future “Short-Term Payout” from the Plan with respect to any one or more of the Participant’s Annual Deferral Amount, Annual Restricted Stock Unit Amount, and Annual Long-Term Achievement Plan Amount which relates or relate to such Plan Year. Subject to the Deduction Limitation, the Short-Term Payout shall be a lump sum payment of the Annual Deferral Amount, Annual Restricted Stock Unit Amount, and/or Annual Long-Term Achievement Plan Amount plus amounts credited or debited in the manner provided in Section 3.9 above on those amounts, determined at the time that the Short-Term Payout becomes payable. Subject to the Deduction Limitation and the other terms and conditions of this Plan, each Short-Term Payout elected shall be paid out during a period ending 90 days after the last day of any Plan Year designated by the Participant that is at least 3 Plan Years after the Plan Year in which the Annual Deferral Amount is actually deferred, or the Annual Restricted Stock Unit Amount or Annual Long-Term Achievement Plan Amount is actually credited to the Participant’s Account Balance, as the case may be. By way of example, if a 3 year Short-Term Payout is elected in the Plan Year commencing January 1, 1999 for an Annual Deferral Amount actually deferred in that Plan Year, and/or for an Annual Restricted Stock Unit Amount or Annual Long-Term Achievement Plan Amount actually credited to the Participant’s Account Balance in that Plan Year, the 3 year Short-Term Payout would become payable during a 90 day period commencing January 1, 2003. No Short-Term Payout shall be made from the Company Matching Account or the Company Contribution Account.

 

4.2 Short-Term Payout Takes Precedence Over Other Benefits. Should an event occur that triggers a benefit under Article 5, 6, 7 or 8, any Annual Deferral Amount, Annual Restricted Stock Unit Amount or Annual Long-Term Achievement Plan Amount, plus amounts credited or debited thereon, that is or are subject to a Short-Term Payout election under Section 4.1, such amount shall not be paid in accordance with Section 4.1 above but shall be paid in accordance with the other applicable Article.

 

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Hughes Electronics Corporation

Executive Deferred Compensation Plan

Master Plan Document

 

4.3 Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies. If the Participant experiences an Unforeseeable Financial Emergency, the Participant may petition the Committee to (i) suspend any deferrals required to be made by a Participant and/or (ii) receive a partial or full payout from the Plan. The payout shall not exceed the lesser of the Participant’s Account Balance, calculated as if such Participant were receiving a Termination Benefit, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency. If, subject to the sole discretion of the Committee, the petition for a suspension and/or payout is approved, suspension shall take effect upon the date of approval and any payout shall be made in a lump sum within 90 days of the date of approval. If a Participant’s petition under this section is approved, then the Participant shall not be entitled to complete a new Election Form for the Plan Year in which the payout to the Participant occurs or the immediate subsequent Plan Year. Accordingly, no further deferral shall be allowed for the Plan Year in which such payout occurred, and no deferral shall be allowed for the immediately subsequent Plan Year. The payment of any amount under this Section 4.3 shall not be subject to the Deduction Limitation. Notwithstanding anything in this Plan to the contrary, a Participant’s Long-Term Achievement Plan Account and Restricted Stock Unit Account shall be distributed only in Stock.

 

4.4

Early Withdrawal. Except as otherwise provided in this Section 4.4, a Participant (or, after a Participant’s death, his or her Beneficiary) may elect, at any time, to withdraw any or all of his or her Account Balance, calculated as if there had occurred a Termination of Employment as of the day of the election, less a withdrawal penalty equal to 10% (for elections given within 2 years following a Change of Control, 5%) of such amount (the net amount shall be referred to as the “Withdrawal Amount”). Notwithstanding the foregoing, the Withdrawal Amount must equal at least $20,000. This election can be made at any time, before or after Retirement, Disability, death or Termination of Employment, and whether or not the Participant (or Beneficiary) is in the process of being paid pursuant to an installment payment schedule. If made before Retirement, Disability or death, a Participant’s Withdrawal Amount shall be his or her Account Balance calculated as if there had occurred a Termination of Employment as of the day of the election. The Participant (or his or her Beneficiary) shall make this election by giving the Committee advance written notice of the election in a form determined from time to time by the Committee. The Participant (or his or her Beneficiary) shall be paid the Withdrawal Amount within 90 days of his or her election. Once the Withdrawal Amount is paid, then deferrals from the Participant’s Base Salary shall cease as soon as administratively feasible. The Participant shall not be entitled to complete a new Election Form for the Plan Year in which such withdrawal occurs, or the subsequent 2 Plan Years. Accordingly, no further deferral shall be allowed for the Plan Year in which such withdrawal occurred, and no deferral shall be allowed for the next 2 immediately subsequent Plan Years. The payment of any amount under this Section 4.4 shall be subject to the Deduction Limitation; provided, however, that for elections to withdraw

 

- 17 -

Hughes Electronics Corporation

Executive Deferred Compensation Plan

Master Plan Document

 

given within 2 years of a Change in Control, the Deduction Limitation shall not apply. Notwithstanding anything in this Plan to the contrary, a Participant’s Long-Term Achievement Plan Account and Restricted Stock Unit Account shall be distributed only in Stock.

 

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