Sallie Mae 2015 Annual Report Download - page 209

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designating the specific time and manner of distribution of his Supplemental Savings Plan Account
by filing the form with the Corporation by a date established by the Corporation. In the event a
Participant fails to make a distribution election, he shall receive his benefit in a single lump sum
payment as soon as practicable following the first day of the seventh month following the
Participant’s Termination of Employment. Notwithstanding the foregoing, in no event will payment
be made or commence any earlier than the date of as which a Participant Terminates Employment.
An election to change the time and manner of payment of amounts credited to a Participant’s
Supplemental Savings Plan Account and earnings credited to such amounts: 1) must delay
distribution of such amounts for at least 5 years beyond the original distribution date; 2) must be
made at least 12 months before the original distribution date; and 3) will not be effective until 12
months after the new election. In addition, the Administrator may, in its sole discretion, allow a
Participant to make a different election with respect to the form and timing of payment of the
Participant’s benefit under the Supplemental Savings Plan that relates to compensation otherwise
payable in any calendar year beginning after the date of such election, which election will be in
the form and subject to such limitations as the Administrator may describe in its sole discretion.
If a Participant Terminates Employment and is reemployed by the Corporation in the same
calendar year, and before a distribution of the Participant’s Supplemental Savings Plan Account has
been made, the Participant’s election as to the time and manner of payment of his Supplemental
Savings Plan Account in effect on his date of Termination of Employment will be in effect as of the
date he commences reemployment with the Corporation, and can only be modified as provided
herein, provided that in no event will payment be made or commence any earlier than the date as
of which the Participant Terminates Employment with the Corporation.
Notwithstanding the foregoing, any distribution made to a Participant as a result of the
Participant’s Termination of Employment may not be made earlier than the first day of the seventh
month following the Participant’s date of Termination of Employment.
7.2. Distributions will be in the form of cash and can be paid in one (1) lump sum payment
or spread out over a maximum of ten (10) annual installments.
7.3. Distribution of a Participant’s Supplemental Savings Plan Account balance will not
be accelerated upon the occurrence of a Change in Control. For purposes of this Section 7.3, a
Change in Control means a change in the ownership or effective control of the Corporation or in
the ownership of a substantial portion of the assets of the Corporation, as determined in accordance
with the requirements of Code Section 409A.
7.4. In the event of a substantial, unforeseen financial hardship, a Participant, or if
applicable, a beneficiary who succeeds to the Participant’s interest in the vested Supplemental
Savings Plan Account following the Participant’s death, may submit to the Administrator a request
for an early distribution. Such request will be in writing and will advise the Administrator of the
circumstances of the hardship. Should the Administrator agree, such an early distribution will be
made as soon as practicable after the Supplemental Savings Plan Account valuation date immediately
following the date on which the Administrator agreed to the early distribution. For these purposes,
the value of the vested portion of the Participant’s Supplemental Savings Plan Account will be
determined as of the valuation date specified above. Any part of the Participant’s Supplemental